UK Energy Market Report — 11 June 2026

What we’re watching today

• Carbon intensity at 107 gCO2/kWh — moderate, with wind dominance.
• New DESNZ efficiency and emissions data released, reinforcing decarbonisation pathways.
• Ofgem consultation on RIIO-ED2 cost drivers signals potential future network charges.

Headlines and what they mean

Changes to RIIO-ED2 Load Related Expenditure volume drivers: statutory consultation

Ofgem has launched a statutory consultation on adjustments to the volume drivers used in RIIO-ED2, the network price control framework. The changes aim to better reflect actual load patterns and investment needs across the distribution network. For commercial energy buyers, this could signal longer-term shifts in network charges, particularly as demand-side flexibility and low-carbon infrastructure become more embedded in the system. While final outcomes are months away, early engagement with the consultation is advisable for large consumers with significant grid connections source.

Greenhouse gas reporting: conversion factors 2026

DESNZ has published updated conversion factors for greenhouse gas reporting, effective from 1 April 2026. These factors now reflect the latest grid decarbonisation trends, including lower emissions from electricity generation. For businesses reporting Scope 2 emissions, this means a potential reduction in reported carbon intensity, particularly for those with high renewable usage. The update supports greater accuracy in ESG disclosures and aligns with the UK’s net zero commitments. Organisations should review their reporting methodologies to ensure compliance with the new standards source.

National Energy Efficiency Data-Framework (NEED): summary of analysis 2026

The latest NEED report confirms that energy efficiency measures are delivering measurable reductions in domestic and commercial consumption. The analysis shows a 3.8% year-on-year drop in energy use per square metre in non-domestic buildings, driven by improved building standards, heat pump deployment, and retrofit activity. This reinforces the value of efficiency investments as a core component of energy cost management and carbon reduction. For commercial buyers, this data supports the case for integrating efficiency into procurement strategies, particularly where flexibility and load shifting are possible source.

Trafford Power Project: Screening decision

DESNZ has issued a screening decision for the Trafford Power Project, confirming it requires an Environmental Impact Assessment (EIA) under the Electricity Works (Environmental Impact Assessment) Regulations 2017. The project, a proposed gas-fired power station, is subject to heightened scrutiny over its environmental and community impact. While not immediately affecting wholesale markets, the decision signals a more rigorous approval process for new thermal generation, which may slow capacity additions and reinforce the role of renewables and storage in future energy security planning source.

Advanced Nuclear Technologies policy paper

DESNZ has published a policy paper outlining the government’s approach to advancing small modular reactors (SMRs) and other next-generation nuclear technologies. The paper highlights plans to streamline consenting, support R&D, and establish a regulatory sandbox for deployment. While commercial-scale impact remains years away, the signal is clear: nuclear is being positioned as a cornerstone of long-term decarbonisation. For energy buyers with long-term contracts or net zero commitments, this reinforces the importance of future-proofing portfolios with low-carbon, dispatchable sources source.

The view from the trade desk

The UK grid today is running at 107 gCO2/kWh, with wind contributing 51.4% of generation — a strong signal of low-carbon operation. Gas is at 18.2%, nuclear 9.9%, and imports 11%, indicating a balanced but increasingly renewable-driven mix. This low carbon intensity presents a strategic opportunity for commercial buyers to align procurement with real-time grid conditions, particularly through flex management. With 150+ GWh under active flex control and the Yolk portal enabling real-time visibility, buyers can maximise value and emissions reduction by shifting load during high-wind, low-carbon periods.

What to do this week

• Review your Scope 2 emissions reporting against the new 2026 conversion factors to ensure accuracy and compliance.
• Assess your energy efficiency strategy using the latest NEED data, particularly for buildings with high consumption per square metre.
• Engage with the Ofgem RIIO-ED2 consultation if you are a large network user or have significant grid capacity.
• Explore eligibility for the Green Heat Network Fund or Boiler Upgrade Scheme, especially if you operate in a district heating context or have older heating systems.
• Use the Yolk portal to identify opportunities to shift non-essential loads into the next 24 hours, capitalising on the current low carbon intensity.

Bottom line

Today’s data and policy signals reinforce the importance of energy efficiency, decarbonisation alignment, and proactive market engagement. With a clean grid and new regulatory frameworks emerging, commercial energy buyers have a clear window to optimise costs, reduce emissions, and future-proof their energy strategy. The integration of real-time data, updated standards, and policy momentum makes this an ideal moment to act.