Legalize / United Kingdom / Public General Act

Energy Act 2011

Type Public General Act

Publication 2011-10-18

Last updated 2022-12-01

State In force

Department Statute Law Database

Source legislation.gov.uk

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Reform history JSON API

(b) any other subordinate legislation made by the Welsh Ministers (or the National Assembly for Wales established under the Government of Wales Act 1998).

(6) Subsection (5) does not apply to the extent that the Secretary of State is making incidental or consequential provision.

(7) The Secretary of State must consult the Welsh Ministers before making—

(a) domestic energy efficiency regulations, or

(b) tenants' energy efficiency improvements regulations,

which apply in relation to domestic PR properties situated in Wales.

(8) Subsection (7) does not apply to the extent that consent has been obtained under subsection (5).

Crown application: Chapter 2

53

This Chapter binds the Crown.

CHAPTER 3 — Private rented sector: Scotland

Introductory

Meaning of “domestic PR property” and “non-domestic PR property”: Scotland

54

(1) For the purposes of this Chapter—

(a) a property is a “Scottish domestic private rented property” if it is let under a tenancy to which Chapter 4 of Part 1 of the Housing (Scotland) Act 2006 (asp 1) applies;

(b) a property is a “Scottish non-domestic private rented property” if it—

(i) is situated in Scotland,

(ii) is let under a tenancy, and

(iii) is not a dwelling.

(2) In subsection (1)(b) “dwelling” has the meaning given by the Energy Performance of Buildings (Scotland) Regulations 2008 (S.S.I. 2008/309) (“the Energy Performance (Scotland) Regulations”).

(3) A Scottish domestic private rented property is referred to in this Chapter as a “Scottish domestic PR property”.

(4) A Scottish non-domestic private rented property is referred to in this Chapter as a “Scottish non-domestic PR property”.

Scottish domestic energy efficiency regulations

55

(1) The Scottish Ministers may make regulations for the purpose of securing that a landlord of a Scottish domestic PR property—

(a) which is of such description of Scottish domestic PR property as is provided for by the regulations,

(b) in relation to which there is an energy performance certificate, and

(c) which falls below such level of energy efficiency (as demonstrated by the energy performance certificate) as is provided for by the regulations,

may not let the property until the landlord has complied with the obligation mentioned in subsection (2).

(2) The obligation is to make to the property such relevant energy efficiency improvements as are provided for by the regulations.

(3) Regulations under this section are referred to in this Chapter as “Scottish domestic energy efficiency regulations”.

(4) For the purposes of Scottish domestic energy efficiency regulations—

“energy performance certificate” has the meaning given by the Energy Performance (Scotland) Regulations;

“landlord” and “let the property” have the meaning given by the regulations (and “let the property” may be defined to include “continue to let the property”);

“relevant energy efficiency improvements” means improvements which—are of such description as the regulations provide, andcan be—wholly paid for pursuant to a green deal plan as provided for by Chapter 1 of this Part,provided free of charge pursuant to an obligation imposed by an order made under section 33BC or 33BD of the Gas Act 1986 or section 41A or 41B of the Electricity Act 1989,wholly financed pursuant to a combination of such a plan and such an obligation, orfinanced by such other description of financial arrangement as the regulations provide.

(5) The Scottish Ministers may by order amend the definition of “energy performance certificate” in subsection (4).

(6) Scottish domestic energy efficiency regulations may come into force no earlier than 1 April 2015.

Further provision about Scottish domestic energy efficiency regulations

56

(1) Scottish domestic energy efficiency regulations may, in particular, include provision about—

(a) the period within which improvements required by the regulations must be started or completed;

(b) exemptions from any requirement imposed by or under the regulations;

(2) Provision falling within subsection (1)(b) includes, in particular, provision about exemptions—

(a) relating to any necessary permissions or consents;

(b) relating to the likely negative impact on the value of a property of complying with a requirement imposed by or under the regulations.

(3) Provision falling within subsection (1)(c) includes, in particular, provision about evidence for the purpose of demonstrating—

(a) an exemption from a requirement imposed by or under the regulations;

(b) that a property is not one in relation to which the regulations have effect;

(c) that the improvements required by or under the regulations are not relevant energy efficiency improvements within the meaning given by the regulations.

Sanctions for the purposes of Scottish domestic energy efficiency regulations

57

(1) Scottish domestic energy efficiency regulations may include provision for the purpose of securing compliance with requirements imposed on landlords by or under the regulations.

(2) Provision falling within subsection (1) includes, in particular, provision—

(a) for a local authority to enforce any requirement imposed by or under the regulations;

(b) about the sanctions for non-compliance with a requirement imposed by or under the regulations;

including, in cases falling within paragraph (b) or (c), the imposition of a civil penalty by a local authority.

(3) The amount of any civil penalty provided for by Scottish domestic energy efficiency regulations must not exceed £5,000.

(4) Where Scottish domestic energy efficiency regulations make provision for the imposition of a civil penalty, the regulations must also include provision for a right of appeal to a court or tribunal against the imposition of the penalty.

(5) Provision falling within subsection (4) includes, in particular, provision—

(a) as to the jurisdiction of the court or tribunal to which an appeal may be made;

(b) as to the grounds on which an appeal may be made;

(d) suspending the imposition of the penalty, pending determination of the appeal;

(e) as to the powers of the court or tribunal to which an appeal is made;

(f) as to how any sum payable in pursuance of a decision of the court or tribunal is to be recoverable.

(6) The provision referred to in subsection (5)(e) includes provision conferring on the court or tribunal to which an appeal is made power—

(a) to confirm the penalty;

(b) to withdraw the penalty;

(d) to award expenses.

(7) If the Scottish Ministers consider it appropriate for the purpose of, or in consequence of, any provision falling within subsection (5)(a), (c), (e) or (f), Scottish domestic energy efficiency regulations may revoke or amend any subordinate legislation if the provision making the revocation or amendment would be within the legislative competence of the Scottish Parliament if it were included in an Act of that Parliament.

(8) In this section “subordinate legislation” has the meaning given in section 21(1) of the Interpretation Act 1978, except that it includes any instrument made under an Act of the Scottish Parliament.

Scottish tenants' energy efficiency improvements regulations

Scottish tenants’ energy efficiency improvements regulations

58

(1) The Scottish Ministers may make regulations for the purpose of securing that a landlord of a Scottish domestic PR property which is of such description of Scottish domestic PR property as is provided for by the regulations does not unreasonably refuse a request mentioned in subsection (2).

(2) The request is one by the tenant of the property to consent to the making of such relevant energy efficiency improvements as are identified in the request.

(3) Regulations under this section are referred to in this Chapter as “Scottish tenants' energy efficiency improvements regulations”.

(4) For the purposes of Scottish tenants' energy efficiency improvements regulations—

“landlord” and “tenant” have the meaning given by the regulations;

“relevant energy efficiency improvements” means improvements which—are of such description as the regulations provide, andcan be—wholly paid for pursuant to a green deal plan as provided for by Chapter 1 of this Part,provided free of charge pursuant to an obligation imposed by an order made under section 33BC or 33BD of the Gas Act 1986 or section 41A or 41B of the Electricity Act 1989,wholly financed pursuant to a combination of such a plan and such an obligation, orfinanced by such other description of financial arrangement as the regulations provide.

(5) Scottish tenants' energy efficiency improvements regulations may come into force no earlier than 1 April 2015.

Further provision about Scottish tenants’ energy efficiency improvements regulations

59

(1) Scottish tenants' energy efficiency improvements regulations may, in particular, include provision about—

(a) the form, content and service of a request under the regulations;

(b) the form, content and service of any response by the landlord to a request (including the period within which any response must be given);

(d) evidence relating to any requirement imposed by or under the regulations.

(2) Provision falling within subsection (1)(c) includes, in particular, provision about exemptions—

(a) relating to any necessary permissions or consents;

(b) relating to the likely negative impact on the value of a property of consenting to the request.

(3) Provision falling within subsection (1)(d) includes, in particular, provision about evidence for the purpose of demonstrating—

(a) an exemption from a requirement imposed by or under the regulations;

(b) that a property is not one in relation to which the regulations have effect;

(c) that the improvements for which consent has been requested are not relevant energy efficiency improvements within the meaning given by the regulations.

Sanctions for the purposes of Scottish tenants’ energy efficiency improvements regulations

60

(1) Scottish tenants' energy efficiency improvements regulations may include provision for the purpose of securing compliance with requirements imposed on landlords by or under the regulations.

(2) Provision falling within subsection (1) includes, in particular, provision for a tenant to apply to a court or tribunal for a ruling that a landlord has not complied with a requirement imposed by or under the regulations.

(3) Where the regulations make provision for a tenant to make an application such as is mentioned in subsection (2), the provision may, in particular, include provision—

(a) as to the jurisdiction of the court or tribunal to which an application may be made;

(b) as to the grounds on which an application may be made;

(d) as to the powers of the court or tribunal to which an application is made (including as to expenses which may be awarded);

(e) as to how any sum payable in pursuance of a decision of the court or tribunal is to be recoverable.

(4) Where the regulations make provision for a tenant to make an application such as is mentioned in subsection (2), the regulations must also include provision for a right of appeal by the tenant or landlord against any decision of a court or tribunal on an application.

(5) Provision falling within subsection (4) includes, in particular, provision—

(a) as to the jurisdiction of the court or tribunal to which an appeal may be made;

(b) as to the grounds on which an appeal may be made;

(d) suspending the effect of the decision being appealed against, pending determination of the appeal;

(e) as to the powers of the court or tribunal to which an appeal is made;

(f) as to how any sum payable in pursuance of a decision of the court or tribunal is to be recoverable.

(6) The provision referred to in subsection (5)(e) includes provision conferring on the court or tribunal to which an appeal is made power—

(a) to confirm the decision;

(b) to quash the decision;

(d) to remit the decision or any matter relating to the decision to the person who made it;

(e) to award expenses.

(7) If the Scottish Ministers consider it appropriate for the purpose of, or in consequence of, any provision falling within—

(a) subsection (3)(a), (c), (d) or (e), or

(b) subsection (5)(a), (c), (e) or (f),

Scottish tenants' energy efficiency improvements regulations may revoke or amend any subordinate legislation if the provision making the revocation or amendment would be within the legislative competence of the Scottish Parliament if it were included in an Act of that Parliament.

(8) In this section “subordinate legislation” has the meaning given in section 21(1) of the Interpretation Act 1978, except that it includes any instrument made under an Act of the Scottish Parliament.

Scottish non-domestic energy efficiency regulations

61

(1) The Scottish Ministers may make regulations for the purpose of securing that a landlord of a Scottish non-domestic PR property—

(a) which is of such description of Scottish non-domestic PR property as is provided for by the regulations,

(b) in relation to which there is an energy performance certificate, and

(c) which falls below such level of energy efficiency (as demonstrated by the energy performance certificate) as is provided for by the regulations,

may not let the property until the landlord has complied with the obligation mentioned in subsection (2).

(2) The obligation is to make to the property such relevant energy efficiency improvements as are provided for by the regulations.

(3) Regulations under this section are referred to in this Chapter as “Scottish non-domestic energy efficiency regulations”.

(4) For the purposes of Scottish non-domestic energy efficiency regulations—

“energy performance certificate” has the meaning given by the Energy Performance (Scotland) Regulations;

“landlord” and “let the property” have the meaning given by the regulations (and “let the property” may be defined to include “continue to let the property”);

“relevant energy efficiency improvements” means improvements which—are of such description as the regulations provide, andcan be—wholly paid for pursuant to a green deal plan as provided for by Chapter 1 of this Part, orfinanced by such other description of financial arrangement as the regulations provide.

(5) The Scottish Ministers may by order amend the definition of “energy performance certificate” in subsection (4).

(6) Scottish non-domestic energy efficiency regulations may come into force no earlier than 1 April 2015.

Further provision about Scottish non-domestic energy efficiency regulations

62

(1) Scottish non-domestic energy efficiency regulations may, in particular, include provision about—

(a) the period within which improvements required by the regulations must be started or completed;

(b) exemptions from any requirement imposed by or under the regulations;

(2) Provision falling within subsection (1)(b) includes, in particular, provision about exemptions—

(a) relating to any necessary permissions or consents;

(b) relating to the likely negative impact on the value of a property of complying with a requirement imposed by or under the regulations.

(3) Provision falling within subsection (1)(c) includes, in particular, provision about evidence for the purpose of demonstrating—

(a) an exemption from a requirement imposed by or under the regulations;

(b) that a property is not one in relation to which the regulations have effect;

(c) that the improvements required by or under the regulations are not relevant energy efficiency improvements within the meaning given by the regulations.

Sanctions for the purposes of Scottish non-domestic energy efficiency regulations

63

(1) Scottish non-domestic energy efficiency regulations may include provision for the purpose of securing compliance with requirements imposed on landlords by or under the regulations.

(2) Provision falling within subsection (1) includes, in particular, provision—

(a) for a local authority constituted under section 2(1) of the Local Government etc. (Scotland) Act 1994 to enforce any requirement imposed by or under the regulations;

(b) about the sanctions for non-compliance with a requirement imposed by or under the regulations;

including, in cases falling within paragraph (b) or (c), the imposition of a civil penalty by such a local authority.

(3) Where Scottish non-domestic energy efficiency regulations make provision for a civil penalty, the regulations must also include provision for a right of appeal to a court or tribunal against the imposition of the penalty.

(4) Provision falling within subsection (3) includes, in particular, provision—

(a) as to the jurisdiction of the court or tribunal to which an appeal may be made;

(b) as to the grounds on which an appeal may be made;

(d) suspending the imposition of the penalty, pending determination of the appeal;

(e) as to the powers of the court or tribunal to which an appeal is made;

(f) as to how any sum payable in pursuance of a decision of the court or tribunal is to be recoverable.

(5) The provision referred to in subsection (4)(e) includes provision conferring on the court or tribunal to which an appeal is made power—

(a) to confirm the penalty;

(b) to withdraw the penalty;

(d) to award expenses.

(6) If the Scottish Ministers consider it appropriate for the purpose of, or in consequence of, any provision falling within subsection (4)(a), (c), (e) or (f), Scottish non-domestic energy efficiency regulations may revoke or amend any subordinate legislation if the provision making the revocation or amendment would be within the legislative competence of the Scottish Parliament if it were included in an Act of that Parliament.

(7) In this section “subordinate legislation” has the meaning given in section 21(1) of the Interpretation Act 1978, except that it includes any instrument made under an Act of the Scottish Parliament.

General

Regulations and orders: Chapter 3

64

(1) Regulations and orders under this Chapter may make different provision for different cases or circumstances or for different purposes.

(2) Orders under this Chapter are subject to the negative procedure.

(3) Regulations under this Chapter are subject to the affirmative procedure.

Crown application: Chapter 3

65

This Chapter binds the Crown.

CHAPTER 4 — Reducing carbon emissions and home-heating costs

Promotion of reductions in carbon emissions: gas transporters and suppliers

66

(1) Section 33BC of the Gas Act 1986 (promotion of reductions in carbon emissions: gas transporters and suppliers) is amended as follows.

(2) In subsection (1) (power by order to impose an obligation to achieve a carbon emissions reduction target) for “the Authority” substitute “ the Administrator ”.

(3) After subsection (2) insert—

(2A) In this section “the Administrator” means— (a) the Authority; or (b) if the order so provides, the Secretary of State or a specified body other than the Authority.

(4) In subsection (3) for “the Authority” substitute “ the Administrator ”.

(5) In subsection (4) for “the Authority” substitute “ (subject to any directions given under subsection (9B)) the Administrator ”.

(6) In subsection (5) (general provision that may be included in an order imposing an obligation to achieve a carbon emissions reduction target)—

(a) for paragraphs (ba) and (c) substitute—

(ba) requiring part of a carbon emissions reduction target to be met by action of a specified description; (bb) requiring the whole or any part of a carbon emissions reduction target to be met by action relating to— (i) individuals of a specified description, (ii) property of a specified description, (iii) specified areas or areas of a specified description, or (iv) individuals or property of a specified description in specified areas or areas of a specified description; (bc) enabling the Administrator to direct a transporter or supplier to meet part of a carbon emissions reduction target by action relating to an individual named in the direction; (bd) preventing action from qualifying for the purpose of meeting the whole or any part of a carbon emissions reduction target unless such persons as are specified in, or determined in accordance with, the order— (i) have been consulted about the action; (ii) have consented to the action; (be) requiring action which qualifies for the purpose of meeting both a carbon emissions reduction target and a home-heating cost reduction target to be treated as qualifying only for the purpose of meeting such one of those targets as the transporter or supplier concerned elects; (c) determining, or specifying the method for determining, the contribution that any action makes towards meeting a carbon emissions reduction target;

;

(b) in paragraph (d) for “the Authority” substitute “ the Administrator ”;

(i) for “the Authority” substitute “ the Administrator ”;

(ii) for sub-paragraph (ii) substitute—

(ii) if so, what contribution the proposed action (or any result of that action specified in the determination) is to make towards achieving the carbon emissions reduction target;

;

(d) in paragraph (f) for “the Authority” substitute “ the Administrator ”;

(e) after paragraph (f) insert

; and (g) requiring the Administrator or a specified body to offer services of a specified kind and authorising a specified fee to be charged to those who take up the offer.

(7) After subsection (5) insert—

(5A) If the order makes provision by virtue of subsection (5)(bc) enabling the Administrator to direct a transporter or supplier to meet part of a carbon emissions reduction target by action relating to an individual named in the direction the order may also make provision— (a) authorising the Administrator to require specified persons to provide it with information for the purpose of enabling it to identify and select individuals who are to be the subject of a direction; (b) specifying criteria in accordance with which the Administrator is to select individuals who are to be the subject of a direction; (c) determining, or specifying the method for determining, which transporter or supplier is to be given a direction in relation to any particular individual selected in accordance with provision made under paragraph (b); (d) authorising the Administrator, if it gives a direction to a transporter or supplier, to provide the transporter or supplier with information relating to the individual concerned for the purpose of assisting the transporter or supplier to comply with the direction; (e) as to the times at which a direction may be given; (f) as to the circumstances in which a direction need not be complied with. (5B) Provision made by virtue of subsection (5)(c) may in particular provide for an action to be treated as making a greater contribution than it would otherwise do if the action relates to— (a) an individual of a specified description, (b) a property of a specified description, or (c) both an individual of a specified description and a property of a specified description.

(8) In subsection (6) for “the Authority” substitute “ the Administrator ”.

(9) After subsection (7) insert—

(7A) The order may— (a) make provision for any specified requirement contained in it to be treated as a relevant requirement for the purposes of this Part; or (b) if it provides for the Administrator to be a person other than the Authority, make provision for and in connection with enabling the Administrator to enforce any requirement imposed by the order. (7B) Provision made by virtue of paragraph (b) of subsection (7A) may, in particular, include provision corresponding to or applying (with or without modifications) any of sections 28 to 30F and section 38.

(10) In subsection (8) omit paragraph (b).

(11) After subsection (9) insert—

(9A) The order may make provision requiring the Administrator to give guidance to transporters or suppliers concerning such matters relating to the order as are specified. (9B) The Administrator shall carry out its functions under this section in accordance with any general or specific directions given to it by the Secretary of State.

(12) For subsection (10A) substitute—

(10A) The Secretary of State must obtain the consent of the Scottish Ministers before making an order under this section which contains provision that— (a) is included by virtue of subsection (2)(b), (b) extends to Scotland, and (c) would be within the legislative competence of the Scottish Parliament if contained in an Act of that Parliament.

(13) After subsection (12) insert—

(12A) Subsection (12) does not apply to an order under this section made only for the purpose of amending an earlier order under this section so as to alter the provision included in the earlier order by virtue of any of paragraphs (b), (ba) or (c) of subsection (5).But such an order shall be subject to annulment in pursuance of a resolution of either House of Parliament. (12B) If an order under this section provides for the Administrator to be a body other than the Authority, the Secretary of State may make payments to the body of such amounts as the Secretary of State considers appropriate.

(14) In subsection (13) before the definition of “microgeneration” insert—

“home-heating cost reduction target” has the meaning given by section 33BD(2)(a);

(15) The reference in subsection (12A) of section 33BC of the Gas Act 1986 to paragraph (c) of subsection (5) of that section includes a reference to paragraph (c) of subsection (5) of that section before its substitution by subsection (6) of this section.

Promotion of reductions in carbon emissions: electricity generators, distributors and suppliers

67

(1) Section 41A of the Electricity Act 1989 (promotion of reductions in carbon emissions: electricity generators, distributors and suppliers) is amended as follows.

(2) In subsection (1) (power by order to impose an obligation to achieve a carbon emissions reduction target) for “the Authority” substitute “ the Administrator ”.

(3) After subsection (2) insert—

(2A) In this section “the Administrator” means— (a) the Authority; or (b) if the order so provides, the Secretary of State or a specified body other than the Authority.

(4) In subsection (3) for “the Authority” substitute “ the Administrator ”.

(5) In subsection (4) for “the Authority” substitute “ (subject to any directions given under subsection (9B)) the Administrator ”.

(6) In subsection (5) (general provision that may be included in an order imposing an obligation to achieve a carbon emissions reduction target)—

(a) for paragraphs (ba) and (c) substitute—

(ba) requiring part of a carbon emissions reduction target to be met by action of a specified description; (bb) requiring the whole or any part of a carbon emissions reduction target to be met by action relating to— (i) individuals of a specified description, (ii) property of a specified description, (iii) specified areas or areas of a specified description, or (iv) individuals or property of a specified description in specified areas or areas of a specified description; (bc) enabling the Administrator to direct a distributor or supplier to meet part of a carbon emissions reduction target by action relating to an individual named in the direction; (bd) preventing action from qualifying for the purpose of meeting the whole or any part of a carbon emissions reduction target unless such persons as are specified in, or determined in accordance with, the order— (i) have been consulted about the action; (ii) have consented to the action; (be) requiring action which qualifies for the purpose of meeting both a carbon emissions reduction target and a home-heating cost reduction target to be treated as qualifying only for the purpose of meeting such one of those targets as the distributor or supplier concerned elects; (c) determining, or specifying the method for determining, the contribution that any action makes towards meeting a carbon emissions reduction target;

;

(b) in paragraph (d) for “the Authority” substitute “ the Administrator ”;

(i) for “the Authority” substitute “ the Administrator ”;

(ii) for sub-paragraph (ii) substitute—

(ii) if so, what contribution the proposed action (or any result of that action specified in the determination) is to make towards achieving the carbon emissions reduction target;

;

(d) in paragraph (f) for “the Authority” substitute “ the Administrator ”;

(e) after paragraph (f) insert

; and (g) requiring the Administrator or a specified body to offer services of a specified kind and authorising a specified fee to be charged to those who take up the offer.

(7) After subsection (5) insert—

(5A) If the order makes provision by virtue of subsection (5)(bc) enabling the Administrator to direct a distributor or supplier to meet part of a carbon emissions reduction target by action relating to an individual named in the direction the order may also make provision— (a) authorising the Administrator to require specified persons to provide it with information for the purpose of enabling it to identify and select individuals who are to be the subject of a direction; (b) specifying criteria in accordance with which the Administrator is to select individuals who are to be the subject of a direction; (c) determining, or specifying the method for determining, which distributor or supplier is to be given a direction in relation to any particular individual selected in accordance with provision made under paragraph (b); (d) authorising the Administrator, if it gives a direction to a distributor or supplier, to provide the distributor or supplier with information relating to the individual concerned for the purpose of assisting the distributor or supplier to comply with the direction; (e) as to the times at which a direction may be given; (f) as to the circumstances in which a direction need not be complied with. (5B) Provision made by virtue of subsection (5)(c) may in particular provide for an action to be treated as making a greater contribution than it would otherwise do if the action relates to— (a) an individual of a specified description, (b) a property of a specified description, or (c) both an individual of a specified description and a property of a specified description.

(8) In subsection (6) for “the Authority” substitute “ the Administrator ”.

(9) After subsection (7) insert—

(7A) The order may— (a) make provision for any specified requirement contained in it to be treated as a relevant requirement for the purposes of this Part; or (b) if it provides for the Administrator to be a person other than the Authority, make provision for and in connection with enabling the Administrator to enforce any requirement imposed by the order. (7B) Provision made by virtue of paragraph (b) of subsection (7A) may, in particular, include provision corresponding to or applying (with or without modifications) any of sections 25 to 28.

(10) In subsection (8) omit paragraph (b).

(11) After subsection (9) insert—

(9A) The order may make provision requiring the Administrator to give guidance to distributors or suppliers concerning such matters relating to the order as are specified. (9B) The Administrator shall carry out its functions under this section in accordance with any general or specific directions given to it by the Secretary of State.

(12) For subsection (10A) substitute—

(10A) The Secretary of State must obtain the consent of the Scottish Ministers before making an order under this section which contains provision that— (a) is included by virtue of subsection (2)(b), (b) extends to Scotland, and (c) would be within the legislative competence of the Scottish Parliament if contained in an Act of that Parliament.

(13) After subsection (12) insert—

(12A) Subsection (12) does not apply to an order under this section made only for the purpose of amending an earlier order under this section so as to alter the provision included in the earlier order by virtue of any of paragraphs (b), (ba) or (c) of subsection (5). But such an order shall be subject to annulment in pursuance of a resolution of either House of Parliament. (12B) If an order under this section provides for the Administrator to be a body other than the Authority, the Secretary of State may make payments to the body of such amounts as the Secretary of State considers appropriate.

(14) In subsection (13) before the definition of “microgeneration” insert—

“home-heating cost reduction target” has the meaning given by section 41B(2)(a);

(15) The reference in subsection (12A) of section 41A of the Electricity Act 1989 to paragraph (c) of subsection (5) of that section includes a reference to paragraph (c) of subsection (5) of that section before its substitution by subsection (6) of this section.

(16) The power to make orders under section 41A of the Electricity Act 1989 may not be exercised so as to impose an obligation on an electricity generator that has effect after 31 December 2012.

Promotion of reductions in home-heating costs: gas transporters and suppliers

68

After section 33BC of the Gas Act 1986 (promotion of reductions in carbon emissions: gas transporters and suppliers) insert—

(33BD) (1) The Secretary of State may by order impose— (a) on each gas transporter (or each gas transporter of a specified description); and (b) on each gas supplier (or each gas supplier of a specified description), an obligation to achieve, within a specified period and in accordance with the order, the home-heating cost reduction target to be determined by the Administrator under the order for that transporter or supplier (and that obligation is referred to in this section as a “home-heating cost reduction obligation”). (2) In this section— (a) “the Administrator” means— (i) the Authority; or (ii) if the order so provides, the Secretary of State or a specified body other than the Authority; (b) “home-heating cost reduction target” means a target for the promotion of measures for reducing the cost to individuals of heating their homes; (c) “specified” means specified in the order. (3) The power to make orders under this section may be exercised so as to impose more than one home-heating cost reduction obligation on a person in relation to the same period or to periods that overlap to any extent. (4) Subsections (3), (5) to (8), (9A) and (10A) to (12B) of section 33BC apply to an order under this section as they apply to an order under that section, with the following modifications— (a) for “carbon emissions reduction obligation” (in each place) substitute “ home-heating cost reduction obligation ”; (b) for “carbon emissions reduction obligations” (in each place) substitute “ home-heating cost reduction obligations ”; (c) for “carbon emissions reduction target” (in each place other than in paragraph (be) of subsection (5)) substitute “ home-heating cost reduction target ”; (d) for “carbon emissions reduction targets” (in each place) substitute “ home-heating cost reduction targets ”; and (e) omit paragraph (a) of subsection (10A). (5) Subsections (4) and (9B) of section 33BC apply to the carrying out by the Secretary of State and the Administrator of their respective functions under this section as they apply to the carrying out by those persons of their functions under that section. (6) No person shall be required by virtue of this section to provide any information which he could not be compelled to give in evidence in civil proceedings in the High Court or, in Scotland, the Court of Session.

Promotion of reductions in home-heating costs: electricity distributors and suppliers

69

After section 41A of the Electricity Act 1989 (promotion of reductions in carbon emissions: electricity generators, distributors and suppliers) insert—

(41B) (1) The Secretary of State may by order impose— (a) on each electricity distributor (or each electricity distributor of a specified description); and (b) on each electricity supplier (or each electricity supplier of a specified description), an obligation to achieve, within a specified period and in accordance with the order, the home-heating cost reduction target to be determined by the Administrator under the order for that distributor or supplier (and that obligation is referred to in this section as a “home-heating cost reduction obligation”). (2) In this section— (a) “the Administrator” means— (i) the Authority; or (ii) if the order so provides, the Secretary of State or a specified body other than the Authority; (b) “home-heating cost reduction target” means a target for the promotion of measures for reducing the cost to individuals of heating their homes; (c) “specified” means specified in the order. (3) The power to make orders under this section may be exercised so as to impose more than one home-heating cost reduction obligation on a person in relation to the same period or to periods that overlap to any extent. (4) Subsections (3), (5) to (8), (9A) and (10A) to (12B) of section 41A apply to an order under this section as they apply to an order under that section, with the following modifications— (a) for “carbon emissions reduction obligation” (in each place) substitute “ home-heating cost reduction obligation ”; (b) for “carbon emissions reduction obligations” (in each place) substitute “ home-heating cost reduction obligations ”; (c) for “carbon emissions reduction target” (in each place other than in paragraph (be) of subsection (5)) substitute “ home-heating cost reduction target ”; (d) for “carbon emissions reduction targets” (in each place) substitute “ home-heating cost reduction targets ”; and (e) omit paragraph (a) of subsection (10A). (5) Subsections (4) and (9B) of section 41A apply to the carrying out by the Secretary of State and the Administrator of their respective functions under this section as they apply to the carrying out by those persons of their functions under that section. (6) No person shall be required by virtue of this section to provide any information which he could not be compelled to give in evidence in civil proceedings in the High Court or, in Scotland, the Court of Session.

Overall home-heating cost reduction targets

70

After section 103 of the Utilities Act 2000 (overall carbon emissions reduction targets) insert—

(103A) (1) For the purposes of the exercise of the functions of the Administrator under either or both of— (a) section 33BD of the 1986 Act (promotion of reductions in home-heating costs: gas transporters and suppliers) and any order made under that section, and (b) section 41B of the 1989 Act (promotion of reductions in home-heating costs: electricity distributors and suppliers) and any order made under that section, the Secretary of State may by order specify an overall target for the promotion of measures for reducing the cost to individuals of heating their homes. (2) The power conferred by this section may be exercised so as to specify more than one overall target in relation to the same period or to periods that overlap to any extent. (3) Where an overall target applies in relation to both sections mentioned in subsection (1), the order specifying the target may make provision for the target to be apportioned between— (a) persons who are gas transporters or gas suppliers (for the purposes of section 33BD of the 1986 Act and any order made under that section); and (b) persons who are electricity distributors or electricity suppliers (for the purposes of section 41B of the 1989 Act and any order under that section), by reference to such criteria as may be specified in the order. (4) The Administrator shall exercise its functions under the provisions mentioned in subsection (1) in relation to which an overall target applies (and in particular its functions relating to the determination of home-heating cost reduction targets) in the manner it considers best calculated to result in the achievement of the overall target. (5) Before making an order under this section the Secretary of State shall consult the Authority, the Council, gas transporters, gas suppliers, electricity distributors, electricity suppliers, and such other persons as the Secretary of State considers appropriate. (6) An order under this section shall not be made unless a draft of the instrument containing it has been laid before, and approved by a resolution of, each House of Parliament.

Power of Secretary of State to require information: carbon emissions reduction targets and home-heating cost reduction targets

71

After section 103A of the Utilities Act 2000 insert—

(103B) (1) The Secretary of State may by notice require a person within subsection (3) to provide the Secretary of State with specified information, or information of a specified kind, for the purpose of enabling the Secretary of State— (a) to decide whether to make a carbon emissions reduction order or a home-heating cost reduction order and, if so, what provision to include in the order; (b) to review the operation and effect of a carbon emissions reduction order or a home-heating cost reduction order; (c) to establish and maintain a record (“a measures record”) of properties in respect of which carbon emissions reduction measures or home-heating cost reduction measures have been taken and of the type of measure taken in respect of each such property. (2) For the purpose of enabling a person (“A”) to establish and maintain a measures record on behalf of the Secretary of State, the Secretary of State may by notice require any person within subsection (3) to provide A with specified information or information of a specified kind. (3) Those persons are— (a) gas transporters and gas suppliers; (b) electricity distributors and electricity suppliers; (c) the Authority; and (d) any body other than the Authority that is for the time being the Administrator in relation to a carbon emissions reduction order or a home-heating cost reduction order. (4) Information required to be provided by a notice under this section must be provided— (a) in such form as may be specified; (b) within such period as may be specified or at such intervals as may be specified. (5) No person shall be required by a notice under this section to provide any information which the person could not be compelled to give in evidence in civil proceedings in the High Court or, in Scotland, the Court of Session. (6) Information obtained by virtue of this section may be disclosed by the Secretary of State— (a) to the Welsh Ministers for the purpose of enabling them to review the operation and effect in Wales of a carbon emissions reduction order or a home-heating cost reduction order; (b) to the Scottish Ministers for the purpose of enabling them to review the operation and effect in Scotland of a carbon emissions reduction order or a home-heating cost reduction order. (7) In sections 28 to 30F and section 38 of the 1986 Act (enforcement of relevant requirements etc) a reference to a “relevant requirement” is to be treated as including a reference to a requirement imposed on a gas transporter or gas supplier under this section. (8) In sections 25 to 28 of the 1989 Act (enforcement of relevant requirements etc) a reference to a “relevant requirement” is to be treated as including a reference to a requirement imposed on an electricity distributor or electricity supplier under this section. (9) In this section— - “a carbon emissions reduction order” means an order under— 1. section 33BC of the 1986 Act; 2. section 41A of the 1989 Act; or 3. section 103 of this Act; - “a home-heating cost reduction order” means an order under— 1. section 33BD of the 1986 Act; 2. section 41B of the 1989 Act; or 3. section 103A of this Act; - “a carbon emissions reduction measure” is a measure of a kind mentioned in subsection (2) of each of section 33BC of the 1986 Act and section 41A of the 1989 Act; - “a home-heating cost reduction measure” is a measure of a kind mentioned in subsection (2)(b) of each of section 33BD of the 1986 Act and section 41B of the 1989 Act; - “specified” means specified in a notice under this section.

Minor and consequential amendments

72

Schedule 1 contains minor and consequential amendments relating to this Chapter.

CHAPTER 5 — Information about energy consumption, efficiency and tariffs

Smart meters

73

(1) Section 88 of the Energy Act 2008 (power to modify licence conditions etc: smart meters) is amended in accordance with subsections (2) to (6).

(2) In subsection (1)(a) (type of licence that may be modified)—

(a) for “6(1)(c)” substitute “ 6(1)(b), (c) ”;

(b) before “distribution” insert “ transmission, ”.

(3) In subsection (3) (non-exhaustive list of modifications that may be made) after paragraph (j) insert—

(ja) provision requiring the holder of a licence to supply information to the Secretary of State or the Authority (or both) so as to enable them to assess any matter relating to the provision, installation, or operation of meters;

(4) In subsection (4) (further provision about the manner in which the power may be exercised) in paragraph (a) after “relation to” insert “ different areas or ”.

(5) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(6) In subsection (6)(c) for “6(1)(c)” substitute “ 6(1)(b), (c) ”.

(7) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(8) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Energy performance certificates

Access to register of energy performance certificates etc: England and Wales

74

(1) The Secretary of State may make regulations for the purpose of authorising the person keeping a register to disclose, in accordance with the provision made in the regulations, the documents or data entered onto the register.

(2) The power under subsection (1) may be exercised, in particular, to make provision—

(a) excluding a document or data, or a specified part of a document or data, from disclosure where the document or data relates to a specified description of buildings;

(b) excluding a document or data, or a specified part of a document or data, from disclosure to a specified description of persons;

(d) for a disclosure made to a specified description of persons to be subject to specified conditions;

(e) as to the sanctions for non-compliance with any condition specified by virtue of paragraph (d) (including sanctions preventing or restricting future disclosures);

(f) in consequence of any provision which is made by virtue of paragraphs (a) to (e).

(3) In subsection (1) “a register” means a register maintained under Part 6 of the Energy Performance of Buildings (Certificates and Inspections) (England and Wales) Regulations 2007 (S.I. 2007/991).

(4) In subsection (2) “specified” means specified in the regulations made under this section.

(5) Regulations under this section may make different provision for different cases or circumstances or for different purposes.

(6) Regulations under this section are subject to the negative procedure.

(7) For the purposes of this section a reference to the disclosure of a document or data includes a reference to disclosure of information derived from the document or data.

Access to register of energy performance certificates etc: Scotland

75

(1) The Scottish Ministers may make regulations for the purpose of authorising or requiring the person keeping a register to disclose, in accordance with the provision made in the regulations, the documents or data entered onto the register.

(2) The power under subsection (1) may be exercised, in particular, to make provision—

(a) excluding a document or data, or a specified part of a document or data, from disclosure where the document or data relates to a specified description of buildings;

(b) excluding a document or data, or a specified part of a document or data, from disclosure to a specified description of persons;

(d) for a disclosure made to a specified description of persons to be subject to specified conditions;

(e) as to the sanctions for non-compliance with any condition specified by virtue of paragraph (d) (including sanctions preventing or restricting future disclosures);

(f) in consequence of any provision which is made by virtue of paragraphs (a) to (e).

(3) In subsection (1) “a register” means a register maintained under regulation 10 of the Energy Performance of Buildings (Scotland) Regulations 2008 (S.S.I. 2008/309).

(4) In subsection (2) “specified” means specified in the regulations made under this section.

(5) Regulations under this section may make different provision for different cases or circumstances or for different purposes.

(6) Regulations under this section are subject to the negative procedure.

(7) For the purposes of this section a reference to the disclosure of a document or data includes a reference to disclosure of information derived from the document or data.

Information about tariffs

Power to modify energy supply licences: information about tariffs

76

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Power to modify energy supply licences: procedure and supplemental

77

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

General duties of the Secretary of State

78

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Part 2 — Security of energy supplies

CHAPTER 1 — Electricity supply

Annual report by Gas and Electricity Markets Authority on security of electricity supply

79

Before section 47 of the Electricity Act 1989 (and after the cross-heading immediately preceding that section) insert—

(47ZA) (1) The Authority must, before 1 September 2012, and before that date in every subsequent calendar year— (a) prepare a report on the future demand for, and supply of, electricity in Great Britain, in accordance with subsection (2), and (b) send the report to the Secretary of State. (2) A report under subsection (1) must include, as regards each forecast period— (a) a forecast of the peak demand for the supply of electricity to consumers in Great Britain; (b) an assessment of different possible capacity margins for that supply, and of the degree of protection that each would provide against the risk of shortfalls in supply due to unexpected demand or unexpected loss of capacity. (3) The forecast periods in relation to a report under subsection (1) are— (a) each of the four calendar years immediately following the year of the report; or (b) any other periods that the Secretary of State specifies by order. (4) A forecast by virtue of subsection (2)(a) must be expressed as a single figure in megawatts rounded to the nearest 100 megawatts, unless the Secretary of State directs otherwise. (5) An assessment by virtue of subsection (2)(b) must take into account, in particular— (a) the generation of electricity; (b) the operation of electricity interconnectors; (c) the storage of electricity; (d) the extent to which the available capacity of a generating station is likely to be lower than its maximum possible capacity due to routine maintenance, weather conditions or any other expected limitation on its operation; (e) demand side response. (6) A forecast or assessment by virtue of subsection (2) may to any extent be made by, or based on information provided by— (a) the holder of a transmission licence; (b) any other person. (7) The Secretary of State may give the Authority directions regarding— (a) the form of a report under subsection (1); (b) the manner in which such a report must be prepared or sent; (c) the manner in which a forecast or assessment by virtue of subsection (2) must be made or expressed (including, in particular, the method of calculation of any of the things mentioned in subsection (2)(a) or (b)). (8) In this section— - “capacity margin” means the amount by which the peak demand for the supply of electricity is exceeded by the capacity likely to be available to meet that demand; - “consumers” includes both existing and future consumers; - “demand side response” means the cessation of, or a reduction in, the provision of electricity to a person at times of high demand, by agreement with the person.

Annual report by Secretary of State on security of energy supplies

80

(1) Section 172 of the Energy Act 2004 (annual report by Secretary of State on security of energy supplies) is amended as follows.

(2) After subsection (2) insert—

(2A) In 2012 and in every subsequent calendar year the report must also include, in particular, as regards each of the assessment periods, an assessment by the Secretary of State of what electricity supply capacity is required. (2B) For the purposes of subsection (2A) the electricity supply capacity required is the capacity required for the purpose of meeting the demands of consumers for the supply of electricity in Great Britain, including spare capacity to allow for unexpected demands or unexpected loss of capacity. (2C) The assessment periods, in relation to a report under subsection (1), are— (a) each of the four calendar years immediately following the year of the report; or (b) any other periods that the Secretary of State specifies by order. (2D) An assessment by virtue of subsection (2A) must take into account, in particular— (a) the generation of electricity; (b) the operation of electricity interconnectors; (c) the storage of electricity; (d) the extent to which the available capacity of a generating station is likely to be lower than its maximum possible capacity due to routine maintenance, weather conditions or any other expected limitation on its operation; (e) demand side response.

(3) In subsection (3), after “report” insert “ , other than the assessment by virtue of subsection (2A), ”.

(4) After subsection (3) insert—

(3A) An order under this section is subject to the negative resolution procedure.

(5) In subsection (4)—

(a) after the definition of “consumers” insert—

(b) after “distribution system,” insert “ “ electricity interconnector ”, “generating station”, “generation”, “supply,” ”.

CHAPTER 2 — Gas supply

Power of the Gas and Electricity Markets Authority to direct a modification of the Uniform Network Code

81

(1) After section 36B of the Gas Act 1986 insert—

(36C) (1) The Authority may direct the operator of the gas National Transmission System to make a modification to which this section applies and which is specified in the direction to the Uniform Network Code. (2) This section applies to a modification— (a) which relates to the arrangements contained in the Code in respect of a Gas Supply Emergency, and (b) which the Authority considers is a market-based modification. (3) The Authority may give a direction under this section only if it considers that the modification will do either or both of the following— (a) decrease the likelihood of a Gas Supply Emergency occurring; (b) decrease the duration or severity of a Gas Supply Emergency which occurs. (4) In the exercise of the power under this section the Authority must have regard to the purposes of Standard Special Condition A11 of licences granted under section 7 of this Act. (5) For the purposes of subsection (2), a modification is “market-based” if it relates to the creation of financial incentives for gas shippers or gas transporters. (6) Before giving a direction under this section the Authority must consult such persons as it considers appropriate. (7) In this section— - “Gas Supply Emergency” and “National Transmission System” have the meaning given by the Uniform Network Code; - “the Uniform Network Code” means the document of that title required to be prepared pursuant to Standard Special Condition A11 of licences granted under section 7 of this Act.

(2) The requirement of subsection (6) of section 36C of the Gas Act 1986 may be satisfied by consultation before, as well as consultation after, the passing of this Act.

(3) In section 38A of the Gas Act 1986 (reasons for decisions), in subsection (1), after paragraph (e) insert—

(ea) the giving of a direction under section 36C;

(4) In section 173 of the Energy Act 2004 (appeals to the Competition Commission), after subsection (2) insert—

(2A) This section also applies to a decision by GEMA to give a direction under section 36C of the Gas Act 1986 (power to direct a modification of the Uniform Network Code). (2B) But subsection (2A) does not have effect in relation to such a decision if it falls within a description of decisions for the time being excluded from the right of appeal under this section by an order made by the Secretary of State.

(5) In section 175 of the Energy Act 2004 (determination of appeals), in subsection (4)(b) for “the purposes for which the relevant condition has effect” substitute

— (i) the purposes for which the relevant condition has effect (in the case of an appeal by virtue of section 173(2)), or (ii) the purposes of the power to give a direction under section 36C of the Gas Act 1986 or the purposes of Standard Special Condition A11 of licences granted under section 7 of that Act (in the case of an appeal by virtue of section 173(2A))

(6) In Schedule 22 to the Energy Act 2004 (procedure for appeals under section 173 of that Act), in paragraph 3(6) (suspension of a decision) after “direction” insert “ (including a direction being appealed against by virtue of section 173(2A) of this Act) ”.

CHAPTER 3 — Upstream petroleum infrastructure

Acquisition of rights to use upstream petroleum infrastructure

82

(1) This section applies where—

(a) a person makes an application to the owner of a relevant upstream petroleum pipeline for a right to have things of a kind specified in the application conveyed by the pipeline during such period as is so specified and in such quantities as are so specified;

(b) a person makes an application to the owner of a relevant oil processing facility for a right to have petroleum of a kind specified in the application processed by the facility during such period as is so specified and in such quantities as are so specified; or

(c) a person makes an application to the owner of a relevant gas processing facility for a right to have piped gas of a kind specified in the application processed by the facility during such period as is so specified and in such quantities as are so specified.

And references in this section to “the access application” are to the application made to the owner of the pipeline or facility.

(2) This section does not apply by virtue of subsection (1)(c) where a person makes an application to the owner of a gas processing facility for a right to have gas processed by the facility for a downstream purpose (as to which, see section 12 of the Gas Act 1995).

(3) For the purposes of subsection (1) an upstream petroleum pipeline, an oil processing facility or a gas processing facility is “relevant” if and in so far as it is situated—

(a) in Great Britain;

(b) in the territorial sea adjacent to Great Britain; or

but an upstream petroleum pipeline which is so situated is not “relevant” if it is a pipeline to which section 17GA of the Petroleum Act 1998 applies (petroleum pipelines subject to Norwegian access system).

(4) If the applicant and the owner do not reach agreement on the access application, the applicant may apply to the OGA for a notice under subsection (11) which would secure to the applicant the right sought in the access application.

(5) The OGA may not consider an application under subsection (4) unless satisfied that the applicant and the owner have had a reasonable time in which to reach agreement.

(6) When considering an application under subsection (4) the OGA must—

(a) decide whether the application is to be—

(i) rejected,

(ii) adjourned to enable further negotiation between the applicant and the owner, or

(iii) considered further, and

(b) in the case of a decision to consider the application further, give an opportunity to be heard to—

(i) the applicant and the owner;

(ii) any person with a right to have anything conveyed by the pipeline or processed by the facility;

(iii) the Health and Safety Executive;

(iv) such other persons as the OGA considers appropriate.

(7) When giving further consideration to an application under subsection (4) the OGA must (so far as relevant) take into account—

(a) capacity which is or can reasonably be made available in the pipeline or at the facility;

(b) any incompatibilities of technical specification which cannot reasonably be overcome;

(c) difficulties which cannot reasonably be overcome and which could prejudice the efficient, current and planned future production of petroleum;

(d) the reasonable needs of the owner and any associate of the owner for the conveying and processing of petroleum;

(e) the interests of all users and operators of the pipeline or facility;

(f) the need to maintain security and regularity of supplies of petroleum; and

(g) the number of parties involved in the dispute.

(8) The OGA may give a notice under subsection (11) only if the condition in subsection (9) or (10) is met.

(9) The condition in this subsection is that the OGA is satisfied that the notice will not prejudice—

(a) the conveying by the pipeline, or the processing by the facility, of the quantities of substances which the owner or an associate of the owner requires or may reasonably be expected to require;

(b) the conveying by the pipeline, or the processing by the facility, of the quantities of substances which another person with a right to have things so conveyed or processed requires to be conveyed or processed in exercise of that right.

(10) The condition in this subsection is that the notice contains provision for the purpose of ensuring that if the notice does prejudice any of the matters mentioned in subsection (9) any person who suffers loss as a result may recover from the applicant payments by way of compensation, of such amounts as are determined in accordance with the notice.

(11) A notice under this subsection may contain such provisions as the OGA considers appropriate for any of the following purposes—

(a) to secure to the applicant the right sought in the access application;

(b) to secure that the exercise of the right is not prevented or impeded;

(c) to secure to the applicant such ancillary or incidental rights as the OGA considers necessary or expedient, which may include the right to have a pipeline of the applicant's connected to the pipeline or facility by the applicant or the owner;

(d) to regulate the charges which may be made for the exercise of any right secured by the notice.

(12) A notice under subsection (11) may also contain such provisions as the OGA considers appropriate for the purpose of ensuring that no person suffers a loss by reason of the mixing together of—

(a) substances conveyed by the pipeline or processed by the facility on behalf of the applicant in exercise of a right secured by the notice; and

(b) substances conveyed by the pipeline or processed by the facility by or on behalf of any other person.

(13) A notice under subsection (11) may also—

(a) contain provision authorising the owner to recover from the applicant payments by way of consideration for any right secured by the notice of amounts specified in the notice or determined in accordance with the notice;

(b) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(14) A notice under subsection (11) is to be given to the owner and the applicant.

(15) If a notice under subsection (11) contains provision of a sort mentioned in subsection (10) or (12) the OGA must give a copy of the notice to every person who has a right to have anything conveyed by the pipeline or processed by the facility.

(16) Before giving a copy of a notice under subsection (15) the OGA must—

(a) remove from the copy any provision included in the notice by virtue of subsection (11)(d) or (13)(a); and

(b) after giving the owner and the applicant an opportunity to be heard, remove from the copy any other provision included in the notice which the OGA considers may prejudice the commercial interests of the owner or the applicant if not removed.

(17) A notice under subsection (11) does not come into force unless and until the applicant indicates acceptance of the terms of the notice in such manner and within such period as is specified in the notice.

(18) For the purposes of subsection (3)(b) and (c) a pipeline is to be treated as being situated in the sea in any area if it is situated in, under or over the sea in that area.

(19) In this section and section 83 “owner”, in relation to an upstream petroleum pipeline, an oil processing facility or a gas processing facility, means any of the following—

(a) a person in whom the pipeline or facility is vested;

(b) a lessee and any person occupying or controlling the pipeline or facility; and

(c) a person who has the right to have things conveyed by the pipeline or processed by the facility, where such right has been acquired by that person on terms that—

(i) the person is entitled to exercise the right for a period of one year or more; and

(ii) the right is capable of being assigned or otherwise disposed of to another person.

Power of Secretary of State to give a notice under section 82(11) on own initiative

83

(1) This section applies where—

(a) a person has made an application of a kind mentioned in subsection (1) of section 82 to the owner of a pipeline or facility, and

(b) the applicant and the owner have not reached agreement on the application.

(2) The OGA may on its own initiative give a notice under subsection (11) of section 82 which would secure to the applicant the right sought in the application; but this is subject to subsection (8) of that section and subsections (3) and (4).

(3) The OGA may not exercise the power conferred by subsection (2) unless the OGA is satisfied that—

(a) the applicant and the owner have had a reasonable time in which to reach agreement on the application; and

(b) there is no realistic prospect of them doing so.

(4) In considering whether to exercise the power conferred by subsection (2) the OGA must—

(a) take into account (so far as relevant) the matters mentioned in paragraphs (a) to (g) of subsection (7) of section 82;

(b) give the persons mentioned in subsection (5) an opportunity to be heard.

(5) Those persons are—

(a) the applicant and the owner;

(b) any person with a right to have anything conveyed by the pipeline or processed by the facility;

(d) such other persons as the OGA considers appropriate.

Compulsory modification of upstream petroleum infrastructure

84

(1) This section applies where—

(a) a person has made an application of a kind mentioned in subsection (1) of section 82, and

(b) the OGA is considering whether to give a notice under subsection (11) of that section which would secure to the applicant the right sought in the application.

(2) If it appears to the OGA —

(a) that the pipeline or facility that is the subject of the application can and should be modified so as to increase its capacity; or

(b) that the pipeline or facility that is the subject of the application can and should be modified by installing in it a junction or other apparatus through which a pipeline of the applicant's may be connected,

then the OGA may give the applicant and the owner of the pipeline or facility a notice in accordance with subsections (3) and (4).

(3) A notice under subsection (2) must—

(a) specify the modifications which the OGA considers should be made to the pipeline or facility;

(b) specify the sums or the method for determining the sums which the OGA considers should be paid to the owner by the applicant for the purpose of defraying the cost of the modifications;

(c) require the applicant to make, within the period specified for the purpose in the notice, arrangements which the OGA considers appropriate to secure that those sums will be paid to the owner if the owner carries out the modifications or satisfies the OGA that they will be carried out;

(d) require the owner, if the applicant makes those arrangements within that period, to carry out the modifications within a period specified for the purpose in the notice; and

(e) authorise the owner, if the OGA is satisfied that the owner has carried out or will carry out the modifications, to recover those sums from the applicant.

(4) A notice under subsection (2) may also contain provision for the purpose of ensuring that if the carrying out of the modifications prejudices any of the matters mentioned in subsection (9) of section 82 any person who suffers loss as a result may recover from the applicant payments by way of compensation, of such amounts as are determined in accordance with the notice.

(5) If a notice under subsection (2) contains provision by virtue of subsection (4) the OGA must give a copy of the notice to every person who has a right to have anything conveyed by the pipeline or processed by the facility.

(6) Before giving a copy of a notice under subsection (5) the OGA must—

(a) remove from the copy any provision included in the notice by virtue of subsection (3)(b); and

(b) after giving the owner and the applicant an opportunity to be heard, remove from the copy any other provision included in the notice which the OGA considers may prejudice the commercial interests of the owner or the applicant if not removed.

(7) In considering whether to give a notice under subsection (2) the OGA must—

(a) take into account (so far as relevant) the matters mentioned in paragraphs (a) to (g) of subsection (7) of section 82;

(b) give the persons mentioned in subsection (8) an opportunity to be heard.

(8) Those persons are—

(a) the applicant and the owner;

(b) any person with a right to have anything conveyed by the pipeline or processed by the facility;

(d) such other persons as the OGA considers appropriate.

(9) If the OGA gives a notice under subsection (2), section 82 has effect in relation to the pipeline or facility concerned as if references to the pipeline or facility were references to the pipeline or facility as it would be with the modifications specified in the notice.

(10) In this section “owner”, in relation to a pipeline or facility, means any of the following—

(a) a person in whom the pipeline or facility is vested; and

(b) a lessee and any person occupying or controlling the pipeline or facility.

Variation of notices under sections 82 and 84

85

(1) The persons to whom a notice is given under subsection (11) of section 82 or subsection (2) of section 84 may agree to vary or set aside the notice.

(2) The OGA may vary a notice under subsection (11) of section 82 or subsection (2) of section 84 on the application of one of the persons to whom the notice was given.

(3) But the OGA may do so only if satisfied that the variation is necessary to resolve a dispute that has arisen in connection with the notice between the persons to whom it was given.

(4) In considering whether to vary a notice the OGA must give an opportunity to be heard to—

(a) the persons to whom the notice was given;

(b) any person with a right to have anything conveyed by the pipeline concerned or processed by the facility concerned;

(d) such other persons as the OGA considers appropriate.

(5) For the purposes of this section and section 86, a person is to be treated as having been given a notice if the person has had assigned to him or her a right which is secured by the notice or a duty which is imposed by the notice.

Publication of notices and variations

86

(1) Where the OGA gives a notice under subsection (11) of section 82 or subsection (2) of section 84, the OGA may—

(a) publish the notice or any part of it;

(b) publish a summary of the effect of the notice or any part of it.

(2) Where the OGA varies a notice in exercise of the power conferred by subsection (2) of section 85, the OGA may—

(a) publish the variation;

(b) publish the notice, or any part of it, as varied;

(3) Before publishing anything under this section the OGA must give an opportunity to be heard to the persons to whom the notice was given and to such other persons as the OGA considers appropriate.

Powers of Secretary of State to require information

87

(1) Where the OGA has reason to believe that a person has made or received an application of a kind mentioned in subsection (1) of section 82, the OGA may by notice require the person to confirm whether or not that is the case.

(2) The OGA may by notice require a person who has made or received an application of a kind mentioned in subsection (1) of section 82 to provide the OGA with specified information for the purpose of enabling the OGA to decide—

(a) whether to exercise any function conferred on the OGA by section 82, 83, or 84; and

(b) if so, how to exercise the function.

(3) Where a person has applied to the OGA under section 85 for a notice to be varied, the OGA may by notice require any person within subsection (4) to provide the OGA with specified information for the purpose of enabling the OGA to decide—

(a) whether to vary the notice; and

(b) if so, how to vary the notice.

(4) Those persons are—

(a) the person who applied for the notice to be varied;

(b) the other person to whom the notice was given;

(c) any person who has had assigned to him or her a right which is secured by the notice or a duty which is imposed by the notice.

(5) The information that may be required under subsection (2) and (3) includes financial information.

(5A) A notice under subsection (1), (2) or (3) that imposes a requirement on a person must specify when the requirement is to be complied with.

(6) The OGA may not disclose any information obtained under this section unless—

(a) the person by or on behalf of whom the information was provided consents to the disclosure, ...

(b) the disclosure is required by virtue of an obligation imposed on the OGA by or under an enactment or

(7) In this section “specified” means specified in a notice under subsection (2) or (3).

Enforcement

88

(1) A person is guilty of an offence if, in circumstances falling within subsection (2), the person provides false information to the OGA for the purpose of—

(a) inducing the OGA to exercise or not to exercise any of the functions conferred on the OGA by sections 82 to 85; or

(b) inducing the OGA to exercise any of those functions in a particular way.

(2) Those circumstances are that, at the time the information is provided, the person—

(a) knows or believes the information to be false; or

(b) is reckless as to whether or not it is false.

(3) A person guilty of an offence under subsection (1) is liable on summary conviction to a fine not exceeding level five on the standard scale.

(4) Proceedings for an offence under subsection (1) may not be instituted in England and Wales except—

(a) by the Secretary of State or by a person authorised to do so by the Secretary of State, or

(b) by or with the consent of the Director of Public Prosecutions.

(5) Where an offence under subsection (1) is committed by a body corporate and it is proved to have been committed with the consent or connivance of, or to be attributable to neglect on the part of, an officer of the body corporate, that officer (as well as the body corporate) is guilty of the offence and is liable to be proceeded against and dealt with accordingly.

(6) Where an offence under subsection (1) is committed by a Scottish partnership and it is proved to have been committed with the consent or connivance of, or to be attributable to neglect on the part of, a partner of the partnership, that partner (as well as the partnership) is guilty of the offence and is liable to be proceeded against and dealt with accordingly.

(7) The duty of a person to comply with a notice under subsection (11) of section 82 or subsection (2) of section 84 is a duty owed to any person who may be affected by a failure to comply with it.

(8) Where a duty is owed by virtue of subsection (7) to any person, the duty may be enforced as if it were contained in a contract between that person and the person who owes the duty.

(9) The duty of a person to comply with a notice under section 87 is enforceable by civil proceedings by the OGA —

(a) for an injunction or interdict;

(b) for specific performance of a statutory duty under section 45 of the Court of Session Act 1988; or

(10) Civil proceedings under subsection (9) are to be brought—

(a) in England and Wales, in the High Court, or

(b) in Scotland, in the Court of Session.

(11) In this section—

“officer”, in relation to a body corporate, means—any director, manager, secretary or other similar officer of the body corporate, orany person purporting to act in any such capacity;

“partner”, in relation to a Scottish partnership, includes any person who was purporting to act as a partner in the partnership.

(12) In subsection (11) “director”, in relation to a body corporate whose affairs are managed by its members, means a member of the body corporate.

Minor, consequential and supplemental provision

89

(1) Schedule 2 contains minor and consequential amendments relating to this Chapter.

(2) Before exercising any power conferred by sections 82 to 85 in respect of an upstream petroleum pipeline that is situated partly in a foreign sector of the continental shelf, the OGA must consult the relevant authorities in the other country.

(3) The use of a pipeline by any person in accordance with a right secured by a notice under subsection (11) of section 82 is not a contravention of section 14(1) of the Petroleum Act 1998.

(4) Subsection (5) applies where—

(a) an authorisation has been issued under section 14 of the Petroleum Act 1998 (construction and use of controlled pipelines) for works for the construction of a pipeline;

(b) the authorisation contains a term of a kind mentioned in section 15(5) of that Act; and

(5) Before serving a notice under section 15(6) of the Petroleum Act 1998 on a person other than the holder of the authorisation, the OGA must give that person an opportunity to make with respect to the proposed pipeline—

(a) an application of a kind mentioned in subsection (1)(a) of section 82 of this Act, and

(b) if applicable, an application under subsection (4) of that section;

and for the purposes of any such application the provisions of this Chapter have effect with the modifications in subsection (6).

(6) The modification are that—

(a) references to a pipeline are to the proposed pipeline as it would be once constructed in accordance with the terms of the authorisation;

(b) references to the owner of a pipeline are to the proposed owner of the proposed pipeline;

(7) In subsection (4)(c) “relevant upstream petroleum pipeline” means an upstream petroleum pipeline that is “relevant” for the purposes of subsection (1) of section 82.

Interpretation

90

(1) In this Chapter—

“foreign sector of the continental shelf” means an area within which rights are exercisable with respect to the sea bed and subsoil and their natural resources by a country or territory outside the United Kingdom;

“gas” means any substance which is or, if it were in a gaseous state, would be gas within the meaning of Part 1 of the Gas Act 1986;

“gas processing facility” means any facility which—carries out gas processing operations in relation to piped gas;is operated otherwise than by a gas transporter; andis not an LNG import or export facility (within the meaning of section 12 of the Gas Act 1995);

“the OGA” means the Oil and Gas Authority;

“oil processing facility” means any facility which carries out oil processing operations;

“payments” means payments in money or money's worth;

“petroleum” has the same meaning as in Part 1 of the Petroleum Act 1998, and includes petroleum that has undergone any processing;

“piped gas” means gas which—originated from a petroleum production project; andhas been conveyed only by means of pipes;

“pipeline” means a pipe or system of pipes for the conveyance of any thing;

“upstream petroleum pipeline” means a pipeline or one of a network of pipelines—which is operated or constructed as part of a petroleum production project and is not a carbon dioxide pipeline;which is used to convey petroleum from the site of one or more such projects—directly to premises, in order for that petroleum to be used at those premises for power generation or for an industrial process;directly to a place outside Great Britain;directly to a terminal; orindirectly to a terminal by way of one or more other terminals, whether or not such intermediate terminals are of the same kind as the final terminal; orwhich is used to convey gas directly from a terminal to a pipeline system operated by a gas transporter or to any premises.

(2) For the purposes of this section—

“carbon dioxide pipeline” means—a pipeline used to convey carbon dioxide to a carbon dioxide storage site; ora pipeline which is not being used for any purpose but which is intended to be used to convey carbon dioxide to such a site;

“carbon dioxide storage site” means a facility—for the storage of carbon dioxide (with a view to its permanent disposal, or as an interim measure prior to its permanent disposal); andin respect of the use of which a person is required to have a licence under section 18 of the Energy Act 2008;

“gas processing operation” means any of the following operations—purifying, blending, odorising or compressing gas for the purpose of enabling it to be introduced into a pipeline system operated by a gas transporter or to be conveyed to an electricity generating station, a gas storage facility or any place outside Great Britain;removing from gas for that purpose any of its constituent gases, or separating from gas for that purpose any oil or water;determining the quantity or quality of gas which is or is to be so introduced, or so conveyed, whether generally or by or on behalf of a particular person,separating, purifying, blending, odorising or compressing gas for the purpose of—converting it into a form in which a purchaser is willing to accept delivery from a seller, orenabling it to be loaded for conveyance to another place (whether inside or outside Great Britain); andloading gas—at a facility which carries out operations of a kind mentioned in paragraph (d), orpiped from such a facility,for the purpose of enabling the gas to be conveyed to another place (whether inside or outside Great Britain);

“gas transporter” has the meaning given by section 7(1) of the Gas Act 1986;

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