Decision on Ofgem's proposed enforcement approach regarding CO2 transport and storage licensees
Decision
- Publication date
- Industry sector
- Generation and Wholesale Market
- Carbon capture and storage
As part of Ofgem's duty to regulate the way in which businesses in the carbon capture, usage and storage (CCUS) sector behave, it is important that we can act swiftly and decisively to put things right if businesses fail to meet their obligations, including where they demonstrate poor behaviours or conduct. By doing so, Ofgem can send strong deterrent messages to all the relevant businesses operating in the sector.
Under the Energy Act 2023, Ofgem is responsible for regulating the transportation and storage networks of carbon dioxide in the UK, and these networks will be part of the infrastructure needed for the carbon capture, usage and storage sector.
In May 2024 we published a consultation seeking views from stakeholders on Ofgem's proposed CO2 Transport and Storage Enforcement Guidelines and Penalty Policy Statement to help us ensure that our enforcement processes are clear, consistent and relevant.
Today we are publishing our response to the feedback we received from stakeholders along with the final versions of the CO2 Transport and Storage Enforcement Guidelines and Penalty Policy Statement. We attach our decision below.
Find our transport and storage enforcement guidelines and penalty policy statement here.