Summary
This regulation establishes a £44.7m annual levy and extensive fee schedule for the Oil and Gas Authority (OGA) to be paid by petroleum and carbon dioxide storage licensees. It creates two main levies: a production levy on operating licences and a non-production levy on exploration/non-producing licences, with discounts for micro-enterprises. It also sets fees for hundreds of consent applications (drilling, testing, amendments) and introduces carbon dioxide storage activities into the regime. The OGA must notify licensees of liability by May 2026, and unpaid amounts incur 5% interest above Bank Rate. If total levy exceeds actual costs, excess is credited back.
Reason
The regulation institutionalises costly regulatory interference in the energy sector. The £44.7m levy and consent fees increase barriers to entry, distort market calculations, and fund the OGA's unnecessary permission-based regime. Britain should eliminate such bureaucratic burdens post-Brexit to unleash competition, reduce energy costs, and match the dynamism of free-trading nations. The OGA's licensing system replaces voluntary market coordination with state control, harming the UK's competitiveness versus jurisdictions with lighter-touch regulation.