The Energy Transition | UK government proposes reforms to judicial review for energy infrastructure

This edition covers the government's proposal to reform judicial review for energy infrastructure, proposed multi-million-pound government investment in UK heat networks, and the opening of Ofgem's consultation on SP Energy Networks' application for funding under the 2025 Electricity System Restoration (ESR) Re-opener.

UK government proposes reforms to judicial review for energy infrastructure 

The government has published a policy note setting out proposals to reform the judicial review process for nationally significant infrastructure projects (NSIPs), with the aim of accelerating the delivery of critical energy infrastructure, reinforcing energy security and supporting economic growth. The proposals build on reforms already introduced through the Planning and Infrastructure Act 2025, which streamlined the consenting process for NSIPs. These previous reforms are expected to speed up NSIP delivery by an average of 12 months and to unlock up to £7.5 billion in economic benefits over the next decade.

The proposed reforms 

The government is proposing two new optional mechanisms for consenting NSIPs, subject to further detailed design and the passage of underpinning legislation.

The first proposal would introduce a parliamentary authorisation route, available to what the government describes as "the most critical" clean energy projects. Under this mechanism, the energy secretary would designate a project as being of critical national importance on a case-by-case basis, with the House of Commons then voting to confirm this. The government is proposing to retain the normal Development Consent Order (DCO) process. The final decision on the DCO would be put before the House of Commons for a further vote. This would give the DCO statutory status, meaning it would not be able to be subject to judicial review other than on human rights grounds.

The second proposal would introduce an optional structured challenge window for all NSIPs to avoid any drawn-out judicial reviews. Under this process, the secretary of state would publish a draft decision; this would then open a fixed window during which any judicial reviews may be brought. There would then be a period during which the secretary of state could consider such challenges and, if required, amend the final DCO. If further judicial reviews on the same grounds were lodged, the court would have a stronger and clearer basis for concluding they are without merit and consequently refusing permission. The government is also proposing that courts would be able to refuse permission for judicial review where a challenge relies on issues that were not raised during the consenting process or the challenge window.

Next steps 

The government has acknowledged the significance of these proposals and notes that further detail can be expected ahead of the introduction of the underpinning legislation.

Government announces multi-million pound heat upgrades across England and Wales 

The government has announced plans to invest a total of over £40 million on expanding and improving heat network projects across the country.

Under the Heat Network Efficiency Scheme (HNES), £15.6 million will be invested in upgrades to 94 heat networks across England and Wales, including those in Solihull and Camden. The HNES provides government funding to support improvements and efficiency gains for existing district heating or communal heating projects.

Under the Green Heat Network Fund (GHNF), funding in this round include a £13.5 million injection to expand the existing Bristol City Leap heat network to cover the Temple Quarter regeneration zone, integrating existing heat networks into one system. A further £8.6 million will support the next phase of the heating and cooling network in King's Cross, which is expected to serve more than 1,700 homes in the area. 

The commitments follow the government's pledge in January to allocate £195 million a year towards the GHNF and £15 million a year for the HNES to 2029-2030. Both schemes are designed to support the government's Warm Homes Plan and unlock the full potential of heat networks.

Ofgem opens consultation on SP Energy Networks' bid for electricity restoration funding

Ofgem has published its consultation on SP Energy Networks (SPEN)'s application for funding under the 2025 Electricity System Restoration (ESR) Re-opener mechanism within the RIIO 2 price control framework – the current RIIO price period.

The consultation sets out Ofgem’s assessment of the needs case, options analysis and efficient costs for the proposals, and invites stakeholder views on its proposed decision, set out in a draft determination. Ofgem is seeking feedback from stakeholders with an interest in electricity distribution networks, including consumer bodies and network companies.

How re-openers work

Under the RIIO ('Revenue = Incentives+Innovation+Outputs') framework, network companies can apply for additional allowances through re-opener mechanisms where certain conditions are met. The resulting costs are recovered from consumer bills. 

The ESR Re-opener can be used where a network operator has incurred, or expects to incur, additional costs as a result of a change in the scope of its ESR works, agreed with the National Energy System Operator to meet the ESR Standard (ESRS). This may include, for example, amendments to Distribution Code obligations linked to the ESRS, or new obligations arising under distribution restoration contracts. 

SPEN's application

During the June 2025 re-opener window, SPEN submitted a request for an additional £65.2 million of RIIO-ED2 allowances under the ESR Re-opener in respect of seven separate initiatives.

Ofgem is now consulting on its assessment of SPEN’s ESR Re-opener application, which covers proposed investments in both SP Distribution (SPD) and SP Manweb (SPM), SPEN's distribution licensed entities. The initiatives are intended to upgrade the SPD and SPM networks to ensure compliance with the ESRS, introduced into the Grid Code through Grid Code modification GC0156. To reduce dependence on manual intervention, SPEN proposes upgrading all network and telecommunications assets to provide at least five days’ resilience, the threshold mandated in the ESRS.

Ofgem's proposed decision 

Ofgem proposes to partially accept SPEN’s request to the amount of £63.5 million, and following a licence modification, impose price control deliverables (PCDs) that require initiatives to be delivered to a standard that Ofgem consider will protect consumers’ interests. The funding positions set out in this consultation will be considered alongside the PCDs, which Ofgem intends to consult on separately at a later stage.

Once consultation responses have been reviewed, Ofgem will finalise its assessment of SPEN’s application and issue a direction confirming any adjustments to allowances. These will be implemented by amending the relevant licence term and specifying the regulatory years to which the adjustment applies. Ofgem will also, at a later date, consult on the PCDs associated with the delivery of the licence-specified outputs.

Responses should be submitted by 22 June.

This article was written with the assistance of trainee solicitors Maggie Hudson and Elise Hill and solicitor apprentice Jackson Clay.