Guidance

Changes to powers of the North Sea Transition Authority

Published 4 November 2026

Factsheet relating to the Energy Independence Bill.

Summary  

Objectives and powers

This measure updates the statutory objectives and offshore powers of the North Sea Transition Authority (NSTA) to ensure the regulator is equipped with the right tools to support delivery of the government’s vision for the North Sea. This clear and consistent decision-making framework will provide the certainty that industry needs to support continued investment.

The revised objectives allow the NSTA to support a fair, managed and prosperous transition, including a new statutory objective to consider workers, communities and supply chains in its decisions.

Name change

This measure will align the business and legal names of the NSTA, improving clarity and consistency across relevant legislation, communications and documentation.

Why are we legislating?

Objectives and powers

Since the NSTA’s existing statutory framework was established, the context in which it operates has changed significantly. This includes a notable decline in estimates for proven and probable oil and gas reserves, an anticipated increase in decommissioning activity, and significant advancements in other energy and transition sectors.

In this context, the NSTA’s current statutory principal objective of Maximising Economic Recovery (known as MER) does not adequately reflect the wide range of considerations relevant to its evolving role as a steward of the North Sea basin. It is therefore necessary to update the NSTA’s statutory objectives and powers so that its decision-making and enforcement framework fully reflects the current context.

Through the Building the North Sea’s Energy Future consultation, stakeholders provided a wide range of views on the scope and structure of the principal objectives, and potential updates to the regulator’s powers, which were announced through the North Sea Future Plan, published in November 2025.

Name change

In 2022, the Oil and Gas Authority (OGA) began operating under business name ‘North Sea Transition Authority’ to reflect its evolving role in the energy transition. Its legal name remains the OGA.

This difference in business and legal names means a lack of clarity and consistency across relevant legislation, communications and documentation, which could create confusion and a lack of transparency.

What are the government’s objectives with this measure?

Objectives and powers

Through this strategic update to the statutory objectives and offshore oil and gas powers, the government is ensuring the NSTA has a statutory framework that reflects its evolving role as steward of the North Sea transition.

As set out in the North Sea Future Plan, the government is acting to ensure the North Sea’s workers and communities continue to power our country and our world for many decades to come, combining the important ongoing role for oil and gas production with the continued scale-up of clean energy sectors. This measure is a direct response to the changing nature of the North Sea basin.

Specifically, the government is ensuring the NSTA is able to take into account a range of key considerations for the North Sea, including economic, net zero and transition factors, in its decision-making. The powers reforms will ensure the NSTA has proportionate, transparent and future-proofed tools to support compliance, manage disputes, drive timely decommissioning, protect taxpayers and maintain resilience as the nature of the basin continues to change.

The government’s intent is to create a clearer and more consistent regulatory environment that reduces uncertainty, unlocks investment and ensures the North Sea remains a crucial part of the UK’s energy system for decades to come.

Name change

The proposed legislative name change will support the clarity and transparency of the North Sea Transition Authority’s role in the energy transition and support effective regulation, which are essential for long-term energy security.

How will this measure deliver these objectives?

Objectives and powers

The measure creates a clearer and more comprehensive decision-making and enforcement framework, explicitly enabling the NSTA to balance and deliver its increasingly diverse functions whilst also providing the clarity and certainty that industry needs to support continued investment.

The revised objectives support more transparent decision-making across the NSTA’s offshore regulatory remit allowing the NSTA to ensure decisions align with the government’s strategic ambition for the North Sea. This strengthens regulatory clarity and consistency, giving industry greater confidence in how decisions will be taken over time and promoting investment in the North Sea. This will deliver a more robust, future-proofed regulatory framework that supports energy security, good jobs, economic growth, investment in communities and climate leadership.

Alongside this, the measure strengthens and clarifies specific offshore oil and gas powers to provide clearer expectations for industry and maintain a robust regulatory framework for the transition.

Name change

This measure is intended to change the legal name of the OGA by amending all references to ‘Oil and Gas Authority’ in primary and secondary legislation to ‘North Sea Transition Authority’.

Aligning the organisation’s business and legal names will support the transparency of the North Sea Transition Authority’s role in the energy transition and effective regulation, helping strengthen energy security, boost economic growth, and create good jobs across the UK.