The Contracts for Difference (Definition of Eligible Generator) (Amendment) Regulations 2026
These Regulations amend the Contracts for Difference (Definition of Eligible Generator) Regulations 2014 to include the continued operation of existing nuclear power stations within the definition of an eligible generating activity.
This change allows operators of current nuclear facilities to qualify as 'eligible generators' for the purposes of the Contracts for Difference scheme, a mechanism that provides price certainty for low-carbon electricity producers.
The instrument applies to persons intending to carry out electricity generation in England, Wales, Scotland, and Northern Ireland.
Arguments For
The legislation expands the scope of the Contracts for Difference (CfD) scheme, which the Department for Energy Security and Net Zero indicates is intended to support the continuation of electricity generation.
Proponents argue that clarifying the definition of 'generating activity' to include existing nuclear assets ensures these facilities can participate in the same price-stabilization mechanisms as other low-carbon technologies.
The Secretary of State asserts that the regulations were informed by consultations with statutory parties and a proportionate analysis of costs and benefits.
Arguments Against
Energy market analysts may question the impact on consumer levies if existing nuclear stations—which may have been built under different subsidy regimes or recovered their capital costs—receive new price guarantees.
Legal scholars might note that the 2014 Regulations were originally structured around new-build or repowered assets, and applying them to existing generation could create complexities in how base strikes and strike prices are calculated.
Environmental groups may argue that directing financial support to older nuclear infrastructure could divert resources from new renewable energy projects.
Citation, commencement and extent
- -(1) These Regulations may be cited as the Contracts for Difference (Definition of Eligible Generator) (Amendment) Regulations 2026 and come into force on the day after the day on which they are made.
(2) These Regulations extend to England and Wales, Scotland and Northern Ireland.
This section establishes the official name of the regulations and sets the commencement date as 17 July 2026.
It confirms that the legal changes apply throughout the United Kingdom, including England, Wales, Scotland, and Northern Ireland.
Amendment of the Contracts for Difference (Definition of Eligible Generator) Regulations 2014
- -(1) The Contracts for Difference (Definition of Eligible Generator) Regulations 2014( b ) are amended as follows.
(2) In regulation 3 (definition of eligible generator), in paragraph (5), in the definition of 'carry out a generating activity'-
- (a) omit the 'or' after sub-paragraph (d);
- (b) after sub-paragraph (e), insert-
'or
- (f) the continuation of electricity generation by an existing nuclear power station.'.
This section modifies the 2014 Regulations to expand the definition of 'carrying out a generating activity.' It adds the continued operation of existing nuclear power plants to the list of activities that qualify a person as an eligible generator.
This allows such operators to enter into Contracts for Difference, which are private law contracts between a generator and the Low Carbon Contracts Company that stabilize revenues at a fixed price level.
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