UK Energy Market Report — 13 June 2026

What we’re watching today

• Carbon intensity at 52 gCO2/kWh: among the lowest in recent weeks.
• Ofgem’s SSEN re-opener application raises questions about future distribution network costs.
• DESNZ’s new emissions reporting factors and green heat fund guidance offer clarity for compliance and investment.

Headlines and what they mean

Guidance: Taking part in the UK Emissions Trading Scheme markets

The latest guidance from DESNZ clarifies participation requirements for businesses under the UK Emissions Trading Scheme (UK ETS), including reporting timelines, compliance obligations, and verification procedures source. For commercial energy buyers, this reinforces the need to align internal carbon accounting with the 2026 reporting cycle, particularly as the scheme continues to mature post-2025 transition. Early engagement with compliance frameworks can reduce risk and support accurate forecasting.

RIIO-ED2 2025 SSEN Load Related Expenditure Re-opener Application

Ofgem has published its consultation on SSEN’s re-opener application for load-related expenditure under RIIO-ED2 source. This signals potential increases in network charges for consumers in the north of Scotland, particularly those with high load profiles. While the final outcome is months away, this development underscores the importance of monitoring regional cost trends and considering demand-side flexibility to mitigate future tariff impacts.

Research: Rapid evidence assessment: international electricity networks research best practice

DESNZ has released a rapid evidence assessment on best practices in international electricity network integration source. The findings highlight the value of cross-border interconnection, digital grid management, and adaptive planning. For large energy users, this reinforces the strategic importance of exploring interconnection opportunities and investing in grid-responsive technologies, especially as the UK seeks to integrate more variable renewables.

Accredited official statistics: Energy Trends: UK renewables

Latest data confirms wind remains the dominant renewable source, contributing 69.7% of today’s generation mix, with nuclear at 12.3% and gas at 11.9% source. The low carbon intensity of 52 gCO2/kWh reflects this clean mix. This is a strong signal for businesses aiming to meet Scope 2 targets—procuring energy during these periods can significantly reduce carbon footprint without additional cost premiums.

Decision: Trafford Power Project: Screening decision

DESNZ has issued a screening decision for the Trafford Power Project under the Environmental Impact Assessment Regulations 2017 source. The project is now entering a full EIA process, indicating potential for new thermal generation capacity. While not a near-term supply factor, it signals continued investment in dispatchable generation, which may influence long-term market dynamics and flexibility pricing.

Greenhouse gas reporting: conversion factors 2026

DESNZ has published updated conversion factors for greenhouse gas reporting, effective from 1 April 2026 source. These updates reflect revised emission intensities for electricity, heat, and fuel types. Businesses must now use these new factors for accurate carbon accounting, particularly for sustainability reporting and net zero targets. Failure to update could lead to misrepresentation in ESG disclosures.

The view from the trade desk

Today’s grid is exceptionally clean, with wind accounting for nearly 70% of generation and carbon intensity at 52 gCO2/kWh—well below the national average. This low-intensity window presents a strategic opportunity for businesses with flexible loads to shift consumption, especially during peak wind output hours. With 150+ GWh under flex management and access to the Yolk portal, TUS can help clients capitalise on these conditions to reduce both cost and carbon impact.

What to do this week

• Review your 2026 UK ETS reporting framework against the latest guidance to ensure compliance source.
• Use the updated greenhouse gas conversion factors to recalibrate your carbon accounting and ESG reporting source.
• Assess the potential impact of the SSEN re-opener application on your regional network charges and consider demand-side response options.
• Explore the Green Heat Network Fund (GHNF) guidance to evaluate eligibility for heat decarbonisation projects source.
• Monitor the Trafford Power Project’s EIA process for long-term implications on thermal generation and grid stability.

Bottom line

Today’s exceptionally low carbon intensity reflects a grid dominated by wind and nuclear, offering a rare opportunity for commercial energy buyers to align procurement with decarbonisation goals. Meanwhile, new guidance on UK ETS, updated conversion factors, and infrastructure developments signal a tightening regulatory and operational environment. Proactive engagement with these trends—through accurate reporting, flexibility use, and strategic planning—will be key to managing cost and compliance in 2026 and beyond.