The Offshore Petroleum Regulator for Environment and Decommissioning (OPRED) has opened its 2026 stakeholder correspondence page. The initial update highlights the United Kingdom Emissions Trading Scheme (UK ETS) requirement for operators to submit Activity Level Reports by 31 March 2026, using the newly updated template published on 19 January 2026. (gov.uk)
A three‑page OPRED communication dated 20 January 2026, issued on behalf of the UK ETS Authority, confirms the availability of the new Activity Level Reporting (ALR) template on GOV.UK. It instructs that Type 1 2026 incumbents should use the online version, while Type 2 incumbents will complete a manual ALR provided directly by their regulator. (assets.publishing.service.gov.uk)
The same notice explains classifications and data handling. Type 1 incumbents are those that received free allocation during 2021–2025 without a change to electricity generator status; they should import verified 2024 data from the version returned by their regulator (or use the version submitted via METS if not yet returned) and then add 2025 data. Type 2 incumbents include installations newly receiving free allocation from 2026 or those whose electricity generator status changes; these follow the manual process. METS is the UK ETS digital reporting service introduced to replace ETSWAP. (assets.publishing.service.gov.uk)
For Type 2 incumbents, the historical activity level used to calculate free allocation for the 2026 scheme year is based on the 2023 scheme year only. Operators are told to use the 2023 activity level from their baseline data report as the historical activity level in the ALR template. (assets.publishing.service.gov.uk)
OPRED also reiterates monitoring methodology expectations for free allocation data. Under Article 7 of the Free Allocation Regulation, operators must use data sources representing the highest achievable accuracy in line with Annex VII, with limited derogations where the most accurate sources are technically infeasible or would incur unreasonable costs. Where derogations are proposed, OPRED asks for a robust justification or a completed ‘unreasonable costs’ tool to accompany the Monitoring Methodology Plan (MMP). (legislation.gov.uk)
The reminder sits within a wider set of adjustments to free allocation timing. Legislation made in 2025 split the forthcoming allocation cycle, creating a one‑year 2026 allocation period before the 2027–2030 period, and updated annexes to reflect 2026 benchmarks and data rules. This sequencing underpins references to “2026 incumbents” in current guidance. (legislation.gov.uk)
For compliance leads, the near‑term tasks are clear: confirm whether your installation is Type 1 or Type 2 for 2026; prepare 2024 and 2025 activity data consistent with your regulator‑returned files or your METS submission; and ensure the MMP evidences data accuracy or includes a justified derogation. OPRED provides a dedicated inbox for installation queries and the Authority maintains a policy inbox for scheme questions. (assets.publishing.service.gov.uk)
OPRED, part of the Department for Energy Security and Net Zero, regulates environmental and decommissioning activity for offshore oil and gas, and works with the Health and Safety Executive as the Offshore Major Accident Regulator (OMAR). This explains why OPRED is issuing the UK ETS communication for offshore operators. (gov.uk)
The 2026 page will be the hub for further OPRED stakeholder communications during the year. In 2025, OPRED used its correspondence page to circulate multiple operational updates and reminders, indicating that more notices can be expected as regulatory deadlines approach; email alerts are available on the GOV.UK page. (gov.uk)