‘Significant moment’ for UK storage as regulator bids to end double charging with formal definition

By Alice Grundy
LinkedIn
Twitter
Reddit
Facebook
Email
Image: Anesco

The UK's regulator, Ofgem, is hoping to eradicate the double-charging of storage assets through the addition of a formal definition of energy storage to the regulatory framework.

Previously, there has been no formal definition of storage meaning that it has fallen prey to double charging, whereby it has been charged as both a demand customer for its imports and as a generator for its exports.

The regulator plans would amend the electricity generation licence to classify storage as a subset of generation, meaning providers would no longer have to pay final consumption levies when the electricity imported is used for storage.

Through a consultation, Ofgem is proposing to define storage as ‘the conversion of electrical energy into a form of energy which can be stored, the storing of that energy, and the subsequent reconversion of that energy back into electrical energy’, a definition suggested by the Electricity Storage Network.

This article requires Premium SubscriptionBasic (FREE) Subscription

Enjoy 12 months of exclusive analysis

Not ready to commit yet?
  • Regular insight and analysis of the industry’s biggest developments
  • In-depth interviews with the industry’s leading figures
  • Annual digital subscription to the PV Tech Power journal
  • Discounts on Solar Media’s portfolio of events, in-person and virtual

Or continue reading this article for free

Read Next

August 28, 2025
“Australia is one of the leading countries for grid-forming inverters,” said Natalie Thompson, senior analyst of energy storage and solar at Wood Mackenzie, when discussing the Australian energy storage market.
Premium
August 27, 2025
We catch up with the CEO of BESS developer Harmony Energy about its strategy and plans going forward, following the sale of its affiliated Harmony Energy Income Trust (HEIT).
August 27, 2025
“Battery energy storage systems (BESS) typically change ownership between two and four times during their 40-year lifecycle,” John Sheehy, CEO of Pottinger, said on day two of the Battery Asset Management Summit Australia 2025 this morning.
August 26, 2025
After an initial rush to deploy that gave CAISO and ERCOT the lead in US BESS adoption, both markets are focused on capacity and availability, writes Amit Mathrani of Rabobank Americas.
August 21, 2025
Statera Energy has begun operating the biggest BESS project in the UK, connected to a National Grid substation that formerly supported two coal power plants.

Most Popular

Email Newsletter