The Energy Act 2023 (Commencement No. 5, Saving Provisions) Regulations 2026

Published: Tue 21st Jul 26

These Regulations bring into force provisions of the Energy Act 2023 that reform how the UK government charges for the decommissioning of offshore oil and gas installations and pipelines.

The order repeals existing fee-setting powers in the Petroleum Act 1998 and brings into effect new expenditure recovery mechanisms, while maintaining the older fee structure for projects that are already underway or have submitted formal requests by 30 September 2026.

These rules apply to offshore installation operators and owners of submarine pipelines, excluding those dedicated to carbon capture and storage.

Arguments For

The Regulations state that the transition is necessary to facilitate the introduction of the new charging regime established under section 38C of the Petroleum Act 1998, which replaces the previous system.
The explanatory note asserts that the changes streamline the recovery of expenditure incurred by the Secretary of State under section 33 of the Petroleum Act 1998.
Proponents argue that the saving provisions provide legal local continuity for operators who have already submitted abandonment requests or published draft programs before the cut-off date, preventing retrospective fee changes.
The document specifies that carbon capture and storage pipelines and installations are excluded from these specific 2012 fee regulations, maintaining a distinct regulatory track for that sector.

Arguments Against

Legal scholars may note that the transition creates a dual-track fee system where two different sets of regulations (the 2012 Regulations and the new 2023 Act regime) apply simultaneously depending on the filing date.
Industry operators might experience administrative complexity in determining which fee regime applies if the publication of a draft program and the formal request for a fee determination cross the 30 September 2026 threshold.
The document does not specify the exact rates of the new charging regime that will replace the 2012 Regulations, potentially creating financial uncertainty for projects commencing after the appointed day.

Citation and interpretation

-(1) These Regulations may be cited as the Energy Act 2023 (Commencement No. 5, Saving Provisions) Regulations 2026.

(2) In these Regulations-

'the 2012 Regulations' means the Offshore (Oil and Gas) Installation and Pipeline Abandonment Fees Regulations 2012;

'the appointed day' means 30th September 2026;

'proposal to revise a relevant abandonment programme' means an abandonment programme in relation to an offshore installation, or for a submarine pipeline that is not a carbon capture and storage pipeline;

'relevant abandonment programme' means an abandonment programme in relation to-

(a) an offshore installation, or
(b) a submarine pipeline that is not a carbon capture and storage pipeline.

(3) For the purposes of the definition of 'relevant abandonment programme' in paragraph (2)-

(a) 'abandonment programme', 'offshore installation' and 'submarine pipeline' have the meanings given in section 45 of the Petroleum Act 1998, and
(b) 'carbon capture and storage pipeline' has the meaning given in regulation 1(4) of the 2012 Regulations.

This section establishes the official name of the regulations and defines the 30th September 2026 as the 'appointed day' when the legal changes take effect.

It defines 'relevant abandonment programmes' to include offshore oil and gas facilities while specifically excluding infrastructure used for carbon capture and storage.

The definitions ensure that terms used here carry the same legal meaning as those found in the Petroleum Act 1998 and the 2012 Regulations.

Commencement of section 299(3) to (7) of the Energy Act 2023

Section 299(3) to (7) of the Energy Act 2023 (amendment of provisions in the Petroleum Act 1998 concerning fees relating to abandonment programmes) comes into force on the appointed day.

This section activates specific parts of the Energy Act 2023 starting on 30 September 2026.

These activated provisions repeal the Secretary of State's old powers to charge fees and introduce new methods for the government to recover costs associated with decommissioning offshore energy infrastructure.

Saving Provision

-(1) Notwithstanding the coming into force of section 299(3) to (7) of the Energy Act 2023, the legislation specified in paragraph (2) continues to have effect on and after the appointed day as it had effect immediately before that day, for the purposes of paragraphs (3) and (4).

(2) The legislation is-

(a) sections 29(5) and 34(4) of the Petroleum Act 1998, and
(b) the 2012 Regulations.

(3) A fee relating to the submission of a relevant abandonment programme must be determined and notified in accordance with the 2012 Regulations and paid in accordance with section 29(5) of the Petroleum Act 1998 where, before the appointed day-

(a) the Secretary of State has received a request to determine a fee relating to that submission, under regulation 3(1)(a) of the 2012 Regulations, or
(b) the Secretary of State has published a draft of that programme.

(4) A fee relating to a proposal to revise a relevant abandonment programme must be determined and notified in accordance with the 2012 Regulations and paid in accordance with section 34(4) of the Petroleum Act 1998 where, before the appointed day, the Secretary of State has received a request to determine a fee relating to that proposal, under regulation 3(1)(b) of the 2012 Regulations.

This section preserves the older fee system for specific cases already in progress before the new rules start.

It mandates that the 2012 Regulations still apply if a fee request was submitted or a draft decommissioning plan was published before 30 September 2026.

This prevents the new charging regime from being applied to operators who had already reached significant milestones under the previous system.

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