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Energy Act 2013

Type Public General Act

Publication 2013-12-18

Last updated 2024-10-01

State In force

Department Statute Law Database

Source legislation.gov.uk

articles Not indexed

Reform history JSON API

(2A) The annual report for each year shall also include a report on— (a) the ways in which the Authority has carried out its duties under section 132(1) and (2) of the Energy Act 2013 in relation to the strategy and policy statement (so far as the statement's designation was in effect during the whole or any part of the year), and (b) the extent to which the Authority has done the things set out under section 4A in a forward work programme or other document as the things the Authority proposed to do during that year in implementing its strategy for furthering the delivery of the policy outcomes contained in the statement (see subsection (3)(b) of that section). (2B) The report mentioned in subsection (2A) must, in particular, include— (a) the Authority's assessment of how the carrying out of its functions during the year has contributed to the delivery of the policy outcomes contained in the strategy and policy statement, and (b) if the Authority has failed to do any of the things mentioned in subsection (2A)(b), an explanation for the failure and the actions the Authority proposes to take to remedy it. (2C) In subsections (2A) and (2B)— - “forward work programme” has the meaning given by section 4(1); - “policy outcomes” and “strategy and policy statement” have the same meaning as in Part 5 of the Energy Act 2013.

Consequential provision

138

(1) The following provisions are repealed (guidance about the making by the Authority of a contribution towards the attainment of social or environmental policies)—

(a) sections 4AB and 4B(1) of the 1986 Act, and

(b) sections 3B and 3D(1) of EA 1989.

(2) In section 4AA(5) of the 1986 Act, after “(2),” insert “ and to section 132(2) of the Energy Act 2013 (duty to carry out functions in manner best calculated to further delivery of policy outcomes) ”.

(3) In section 3A(5) of EA 1989, after “(2),” insert “ and to section 132(2) of the Energy Act 2013 (duty to carry out functions in manner best calculated to further delivery of policy outcomes) ”.

(4) In the 1986 Act—

(a) in section 4AA(7), for “sections 4AB and 4A” substitute “ section 4A ”;

(b) in section 7B(4), in paragraph (a) omit “, 4AB”;

(i) at the end of paragraph (b) omit “and”,

(ii) in paragraph (c) for “sections 4AB and” substitute “ section ”, and

(iii) at the end of paragraph (c) insert

; and (d) in the performance of its duties under section 132(1) and (2) of the Energy Act 2013.

;

(d) in section 28(5), in paragraph (a) omit “, 4AB”;

(e) in section 38(1A), omit “, 4AB”;

(f) in section 41E(6)—

(i) omit paragraph (b), and

(ii) at the end of paragraph (c) insert

; and (d) any statement for the time being designated as the strategy and policy statement for the purposes of Part 5 of the Energy Act 2013.

(5) In EA 1989—

(a) in section 3A(7), for “sections 3B and 3C” substitute “ section 3C ”;

(b) in section 11E(2)—

(i) at the end of paragraph (b) omit “and”,

(ii) in paragraph (c) for “sections 3B and 3C” substitute “ section 3C ”, and

(iii) at the end of paragraph (c) insert

; and (d) in the performance of its duties under section 132(1) and (2) of the Energy Act 2013.

;

(d) in section 56C(6)—

(i) omit paragraph (b), and

(ii) at the end of paragraph (c) insert

; and (d) any statement for the time being designated as the strategy and policy statement for the purposes of Part 5 of the Energy Act 2013.

PART 6 — Consumer Protection and Miscellaneous

CHAPTER 1 — Consumer Protection

Domestic tariffs

Power to modify energy supply licences: domestic supply contracts

139

(1) The Secretary of State may modify—

(a) a condition of a particular licence under section 7A(1) of the Gas Act 1986 (supply licences);

(b) the standard conditions incorporated in licences under that provision by virtue of section 8 of that Act;

(d) the standard conditions incorporated in licences under that provision by virtue of section 8A of that Act;

by making provision of any of the kinds specified in subsection (2).

(2) The kinds of provision mentioned in subsection (1) are—

(a) provision requiring a licence holder to adopt one or more standard domestic tariffs;

(b) provision for restricting the number of domestic tariffs, or domestic tariffs of a particular category, a licence holder may adopt;

(c) provision about discretionary terms (which may in particular require the same discretionary terms to be offered in connection with, or incorporated into, all domestic supply contracts of any particular category);

(d) provision for requiring a licence holder to provide information about its domestic tariffs and other supply contract terms, which may include information for enabling or facilitating the comparison—

(i) of different domestic tariffs or supply contract terms of the licence holder;

(ii) of domestic tariffs and supply contract terms of different licence holders;

(e) provision for requiring a licence holder to change the domestic tariff on which it supplies gas or electricity to a domestic customer who is on a closed tariff by—

(i) switching to a different domestic tariff for the time being offered by the licence holder, unless the customer objects, or

(ii) offering the customer, or inviting the customer to switch to, a different domestic tariff for the time being offered by the licence holder;

(f) provision for requiring a licence holder to provide information to domestic customers about the licence holder's costs, or profit, attributable to its domestic supply contracts, which may, in particular, include information about—

(i) particular kinds of those costs, and

(ii) the extent to which domestic customers' costs are attributable to any of those kinds of costs, or to profit.

(3) Any limit imposed by virtue of subsection (2)(b) on the number of tariffs, or tariffs of any category, that a licence holder may adopt must be greater than the number of standard domestic tariffs, or (as the case may be) standard domestic tariffs of that category, that the licence holder is required to adopt.

(4) Provision that may be included in a licence by virtue of subsection (2)(d) may in particular require a licence holder to provide each domestic customer with information—

(a) about the customer's existing domestic tariff and supply contract terms;

(b) about the expected cost to the customer of supplies under the customer's existing domestic supply contract and on one or more other domestic tariffs (including the lowest domestic tariff for the customer) or other supply contract terms of the licence holder;

(5) Provision that may be included in a licence by virtue of subsection (2)(d) or (f) may in particular—

(a) require information to be provided in a form that is clear and easy to understand;

(b) make provision about the times at which information is to be provided;

(c) make provision about the format in which information is to be provided, which may in particular require information about a domestic tariff or supply contract terms to be provided in the form of a single figure or set of figures;

(d) make provision about the way in which information is to be provided, which may in particular require information to be provided—

(i) by means of a code or otherwise using a format readable by an electronic device, or

(ii) in a way which facilitates processing of the information by means of an electronic device.

(6) Provision included in a licence by virtue of the power in subsection (1)—

(a) may make provision for determining when a licence holder is, or is not, to be regarded as offering to supply gas or electricity on a particular tariff (or as offering other terms in connection with domestic supply contracts) for the purpose of a relevant provision;

(b) may make provision for supplies (or proposed supplies) of gas or electricity to be regarded as being on the same tariff or different tariffs for the purpose of a relevant provision;

(c) may make provision for specifying how any domestic tariff (including a licence holder's lowest domestic tariff for a customer), or other supply contract terms, is or are to be identified for the purpose of any relevant provision;

(d) may make provision about the calculation or estimation of any amount or figure for the purpose of a relevant provision, which may, in particular, include provision—

(i) about assumptions to be made;

(ii) requiring information about a customer's circumstances or previous consumption of gas or electricity to be taken into account;

(e) may confer functions on the Secretary of State or the Authority;

(f) may make different provision for different kinds of domestic customers or different supply contract terms, or otherwise in relation to different cases;

(g) may make provision generally or only in relation to specified categories of domestic customers, domestic tariffs or domestic supply contracts or otherwise only in relation to specified cases or subject to exceptions;

(h) need not relate to the activities authorised by the licence;

(i) may do any of the things authorised for licences of that type by section 7B(5)(a), (6) or (7) of the Gas Act 1986 or section 7(3), (4), (5) or (6A) of EA 1989.

(7) The power in subsection (1)—

(a) may be exercised generally, only in relation to specified cases or subject to exceptions (including provision for a case to be excepted only so long as specified conditions are satisfied);

(b) may be exercised differently in different cases or circumstances;

(8) In this section—

“closed tariff” means a domestic tariff on which a licence holder—supplies gas or electricity to customers under existing domestic supply contracts, butno longer offers to supply gas or electricity to customers who are not already on the tariff;

“discretionary terms”, in relation to a domestic supply contract (or proposed domestic supply contract), means the supply contract terms other than the principal terms;

“domestic customer” means a customer under a domestic supply contract;

“domestic supply contract” means a contract for the supply of gas or electricity at domestic premises wholly or mainly for domestic purposes;

“domestic tariff” means the set of principal terms of a domestic supply contract (or proposed domestic supply contract);

“modify” includes amend, add to or remove, and references to modifications are to be construed accordingly;

“the principal terms”, in relation to a domestic supply contract, means the terms of the contract of the types specified in an order under subsection (11);

“relevant provision” means any provision included in a licence by virtue of subsection (1);

“standard domestic tariff” means a domestic tariff some or all of whose terms are specified by, or in accordance with, a relevant provision;

“supply contract terms” means the terms and conditions of a domestic supply contract.

(9) For the purposes of the definition of “standard domestic tariff”, the terms that may be specified by, or in accordance with, a relevant provision—

(a) may include a term providing for a charge or rate to be fixed for a period to be determined by the licence holder, but

(b) may not include any term setting the amount of a charge or rate or otherwise specifying how it is to be determined.

(10) For the purposes of this section—

(a) gas or electricity is supplied on a tariff if the supply is made under a contract whose principal terms are the terms of the tariff,

(b) a domestic customer is on a particular domestic tariff if gas or electricity is supplied to the customer on that tariff, and

(c) a licence holder adopts a tariff if it supplies or offers to supply gas or electricity on that tariff (and references to adopting a tariff include references to doing either or both of them).

(11) The Secretary of State may by order specify types of terms of domestic supply contracts which are the principal terms of such contracts.

(12) An order under subsection (11) may—

(a) include incidental, supplementary and consequential provision;

(b) make transitory or transitional provision or savings;

(d) make provision subject to exceptions.

(13) An order under subsection (11) is to be made by statutory instrument.

(14) A statutory instrument containing an order under subsection (11) is subject to annulment in pursuance of an order of either House of Parliament.

Section 139: procedure etc

140

(1) Before making modifications of a licence under section 139(1) the Secretary of State must consult—

(a) the holder of any licence being modified,

(b) the Authority, and

(2) Subsection (1) may be satisfied by consultation before, as well as by consultation after, the passing of this Act.

(3) Before making modifications under section 139(1) the Secretary of State must lay a draft of the modifications before Parliament.

(4) If, within the 40-day period, either House of Parliament resolves not to approve the draft, the Secretary of State may not take any further steps in relation to the proposed modifications.

(5) If no such resolution is made within that period, the Secretary of State may make the modifications in the form of the draft.

(6) Subsection (4) does not prevent a new draft of proposed modifications being laid before Parliament.

(7) In this section “40-day period”, in relation to a draft of proposed modifications, means the period of 40 days beginning with the day on which the draft is laid before Parliament (or, if it is not laid before each House of Parliament on the same day, the later of the 2 days on which it is laid).

(8) For the purposes of calculating the 40-day period, no account is to be taken of any period during which Parliament is dissolved or prorogued or during which both Houses are adjourned for more than 4 days.

(9) The Secretary of State must publish details of any modifications made under section 139(1) as soon as reasonably practicable after they are made.

(10) Where the Secretary of State makes a modification of the standard conditions of a licence of any type, the Authority must—

(a) make the same modification of those standard conditions for the purposes of their incorporation in licences of that type granted after that time, and

(b) publish the modification.

(11) A modification of part of a standard condition of a particular licence does not prevent any other part of the condition from continuing to be regarded as a standard condition for the purposes of Part 1 of the Gas Act 1986 or Part 1 of EA 1989.

(12) The power in section 139(1) may not be exercised after 31 December 2018.

General duties of Secretary of State

141

(1) Sections 4AA to 4B of the Gas Act 1986 (principal objective and general duties) apply in relation to functions of the Secretary of State under section 139 or 140 of this Act with respect to holders of licences under section 7A(1) of that Act as they apply in relation to functions of the Secretary of State under Part 1 of that Act.

(2) Sections 3A to 3D of EA 1989 (principal objective and general duties) apply in relation to functions of the Secretary of State under section 139 or 140 of this Act with respect to holders of licences under section 6(1)(d) of that Act as they apply in relation to functions of the Secretary of State under Part 1 of that Act.

Consequential provision

142

(1) The Utilities Act 2000 is amended as follows.

(2) In section 33 (standard conditions of electricity licences), in subsection (1)(f), omit “76 or”.

(3) In section 81 (standard conditions of gas licences), in subsection (2), for “or under Chapter 1 of Part 1 or section 76 or 98 of the Energy Act 2011” substitute “ , under Chapter 1 of Part 1 or section 98 of the Energy Act 2011 or under section 139 of the Energy Act 2013 ”.

(4) In the Energy Act 2011, sections 76 to 78 (power to modify energy supply licences: information about tariffs) are repealed.

Licensable activities

143

(1) In section 41C of the Gas Act 1986 (power to alter activities requiring licence), after subsection (4) insert—

(4A) For the purposes of subsection (4), activities connected with the supply of gas include the following activities, whether or not carried on by a person supplying gas— (a) giving advice, information or assistance in relation to contracts for the supply of gas to persons who are or may become customers under such contracts, and (b) the provision of any other services to such persons in connection with such contracts.

(2) In section 56A of EA 1989 (power to alter activities requiring licence), after subsection (4) insert—

(4A) For the purposes of subsection (4), activities connected with the supply of electricity include the following activities, whether or not carried on by a person supplying electricity— (a) giving advice, information or assistance in relation to contracts for the supply of electricity to persons who are or may become customers under such contracts, and (b) providing any other services to such persons in connection with such contracts.

Consumer redress orders

144

Schedule 14 (which enables the Authority to impose requirements on a regulated person to take remedial action in respect of loss, damage or inconvenience caused to consumers of gas or electricity) has effect.

Fuel poverty

145

(1) The Warm Homes and Energy Conservation Act 2000 is amended as follows.

(2) After section 1 insert—

(1A) (1) The Secretary of State must make regulations setting out an objective for addressing the situation of persons in England who live in fuel poverty. (2) The regulations must specify a target date for achieving the objective. (3) Regulations under this section must be made by statutory instrument; and a statutory instrument containing such regulations may not be made unless a draft of the instrument has been laid before and approved by a resolution of each House of Parliament. (4) The Secretary of State must lay a draft of the instrument before each House of Parliament within 6 months of the day on which section 145 of the Energy Act 2013 comes into force. (1B) (1) The Secretary of State must prepare and publish a strategy setting out the Secretary of State's policies for achieving the objective set out in regulations under section 1A by the target date specified in the regulations. (2) The strategy must be published within 6 months of the day on which the first regulations under section 1A come into force. (3) The strategy must— (a) describe the households to which it applies, (b) specify a comprehensive package of measures for achieving the objective by the target date, and (c) specify interim objectives to be achieved and target dates for achieving them. (4) The Secretary of State must take such steps as are in the Secretary of State's opinion necessary to implement the strategy. (5) The Secretary of State must— (a) from time to time assess the impact of steps taken under subsection (4) and the progress made in achieving the objectives and meeting the target dates, (b) make any revision of the strategy which the Secretary of State thinks appropriate in consequence of the assessment, (c) from time to time publish reports on such assessments. (6) If— (a) further regulations under section 1A are made revising an objective or the target date for achieving it, and (b) the Secretary of State considers that changes to the strategy are necessary or desirable as a result of those regulations, the Secretary of State must revise the strategy within 6 months of the day on which those regulations come into force. (7) If the Secretary of State revises the strategy, the Secretary of State must publish the strategy as revised. (8) In preparing the strategy or any revision of the strategy, the Secretary of State must consult— (a) local authorities or associations of local authorities, (b) persons appearing to the Secretary of State to represent the interests of persons living in fuel poverty, (c) the Gas and Electricity Markets Authority, and (d) such other persons as the Secretary of State thinks fit.

(3) In section 2—

(a) in the title, after “poverty” insert “ : Wales ”;

(b) in subsection (1), after “strategy” insert “ as respects Wales ”;

(d) in subsection (8)—

(i) in the definition of “the appropriate authority”, omit paragraph (a), and

(ii) in the definition of “the relevant commencement”, omit paragraph (a).

CHAPTER 2 — Miscellaneous

Feed-in tariffs

Feed-in tariffs: increase in maximum capacity of plant

146

In section 41 of the Energy Act 2008 (power to amend licence conditions etc: feed-in tariffs), in subsection (4), in the definition of “specified maximum capacity” for “5” substitute “ 10 ”.

Offshore transmission

Offshore transmission systems

147

(1) EA 1989 is amended as follows.

(2) In section 4 (prohibition on unlicensed supply), after subsection (3A) insert—

(3AA) Subsection (3A) is subject to section 6F (offshore transmission during commissioning period).

(3) After section 6E insert—

(6F) (1) For the purposes of this Part a person is not to be regarded as participating in the transmission of electricity if the following four conditions are met. (2) The first condition is that the transmission takes place over an offshore transmission system (“the system”) or anything forming part of it. (3) The second condition is that the transmission takes place during a commissioning period (see section 6G). (4) The third condition is that— (a) a request has been made to the Authority in accordance with the tender regulations for a tender exercise to be held for the granting of an offshore transmission licence in respect of the system, (b) the Authority has determined in accordance with those regulations that the request relates to a qualifying project, and (c) the system, or anything forming part of it, has not been transferred as a result of the exercise to the successful bidder. (5) The fourth condition is that— (a) the person who is the developer in relation to the tender exercise is also the operator of a relevant generating station, and (b) the construction or installation of the system is being or has been carried out by or on behalf of, or by or on behalf of a combination of, any of the following— (i) the person mentioned in paragraph (a); (ii) a body corporate associated with that person at any time during the period of construction or installation; (iii) a previous developer; (iv) a body corporate associated with a previous developer at any time during the period of construction or installation. (6) For the purposes of subsection (1), it does not matter whether or not the person mentioned in that subsection is the developer in relation to the tender exercise. (7) For the purposes of subsection (5)(b)(iii) and (iv), a person is a “previous developer” in relation to the system if— (a) the person does not fall within subsection (5)(a), but (b) at any time during the period of construction or installation, the person was the developer in relation to the tender exercise. (8) In this section— - “associated”, in relation to a body corporate, is to be construed in accordance with paragraph 37 of Schedule 2A; - “developer”, in relation to a tender exercise, means any person within section 6D(2)(a) (person who makes the connection request, including any person who is to be so treated by virtue of section 6D(4)); - “offshore transmission” has the meaning given by section 6C(6); - “offshore transmission licence” has the meaning given by section 6C(5); - “offshore transmission system” means a transmission system used for purposes connected with offshore transmission; - “operator”, in relation to a generating station, means the person who is authorised to generate electricity from that station— 1. by a generation licence granted under section 6(1)(a), or 2. in accordance with an exemption granted under section 5(1); - “qualifying project” is to be construed in accordance with the tender regulations; - “successful bidder” and “tender exercise” have the same meanings as in section 6D; - “relevant generating station”, in relation to an offshore transmission system, means a generating station that generates electricity transmitted over the system; - “the tender regulations” means regulations made under section 6C. (6G) (1) For the purposes of section 6F(3), transmission over an offshore transmission system (or anything forming part of it) takes place during a “commissioning period” if it takes place at any time— (a) before a completion notice is given in respect of the system, or (b) during the period of 18 months beginning with the day on which such a notice is given. (2) A “completion notice”, in relation to a transmission system, is a notice which— (a) is given to the Authority by the relevant co-ordination licence holder in accordance with the co-ordination licence, and (b) states that it would be possible to carry on an activity to which section 4(1)(b) applies by making available for use that system. (3) The Secretary of State may by order amend subsection (1) so as to specify a period of 12 months in place of the period of 18 months. (4) An order under subsection (3) may be made only so as to come into force during the period— (a) beginning 2 years after the day on which section 147 of the Energy Act 2013 comes into force, and (b) ending 5 years after that day. (5) An amendment made by an order under subsection (3) does not apply in relation to any transmission of electricity over a transmission system if— (a) but for the making of the order, the person participating in the transmission would, by virtue of section 6F, have been regarded as not participating in the transmission, and (b) the determination mentioned in subsection (4)(b) of that section in relation to the system was made on or before the day on which the order is made. (6) In this section— - “co-ordination licence” has the same meaning as in Schedule 2A (see paragraph 38(1) of that Schedule); - “relevant co-ordination licence-holder” has the meaning given by paragraph 13(4) of Schedule 2A. (6H) (1) The Authority may— (a) modify a code maintained in accordance with the conditions of a transmission licence or a distribution licence; (b) modify an agreement that gives effect to a code so maintained. (2) The Authority may make a modification under subsection (1) only if it considers it necessary or desirable for the purpose of implementing or facilitating the operation of section 6F or 6G. (3) The power to make modifications under subsection (1) includes a power to make incidental, supplemental, consequential or transitional modifications. (4) The Authority must consult such persons as the Authority considers appropriate before making a modification under subsection (1). (5) Subsection (4) may be satisfied by consultation before, as well as consultation after, the passing of the Energy Act 2013. (6) As soon as reasonably practicable after making a modification under subsection (1), the Authority must publish a notice stating its reasons for making it. (7) A notice under subsection (6) is to be published in such manner as the Authority considers appropriate for the purpose of bringing the matters to which the notice relates to the attention of persons likely to be affected by it. (8) A modification under subsection (1) may not be made after the end of the period of 7 years beginning with the day on which section 147 of the Energy Act 2013 comes into force.

(4) In section 64 (interpretation of Part 1), in subsection (1B) at the end insert “ and section 6F ”.

Fees

Fees for services provided for energy resilience purposes

148

(1) The Secretary of State may require fees to be paid for services or facilities provided or made available by the Secretary of State in the exercise of energy resilience powers.

(2) “Energy resilience powers” are any powers exercised by the Secretary of State for the purposes of, or in connection with, preventing or minimising disruption to the energy sector in Great Britain (including disruption to the supply of fuel in Great Britain).

(3) The amount of any fee charged under this section is—

(a) such amount as may be specified in, or determined by or in accordance with, regulations made by the Secretary of State, or

(b) if no such regulations are made, an amount specified in, or determined by or in accordance with, a direction given by the Secretary of State for the purposes of this section.

(4) Regulations or a direction under this section may provide for the amounts of fees to be different in different cases and, in particular, for fees in respect of the exercise of the same power to be of different amounts in different circumstances.

(5) Regulations under subsection (3)(a) must be made by statutory instrument and any such instrument is subject to annulment in pursuance of a resolution of either House of Parliament.

(6) The Secretary of State must lay before Parliament a statement of any fees specified in, or determined by or in accordance with, a direction given under subsection (3)(b).

Fees in respect of decommissioning and clean-up of nuclear sites

149

(1) Chapter 1 of Part 3 of the Energy Act 2008 (nuclear sites: decommissioning and clean-up) is amended as follows.

(2) After section 45 (duty to submit funded decommissioning programme) insert—

(45A) (1) A person who informs the Secretary of State of a proposal to submit a funded decommissioning programme under section 45 must pay to the Secretary of State such fee as may be determined in accordance with regulations under section 54, in respect of the costs mentioned in subsection (2), at a time determined in accordance with such regulations. (2) The costs are those incurred by the Secretary of State in relation to the consideration of the proposed programme (or any particular aspect of it), including, in particular, the costs of obtaining advice in relation to it.

(3) In section 46 (approval of programme), after subsection (3G) insert—

(3H) Where the Secretary of State makes or amends an agreement under subsection (3A), or it is proposed that such an agreement be made or amended, the site operator must pay to the Secretary of State such fee as may be determined in accordance with regulations under section 54, in respect of the costs mentioned in subsection (3I), at a time determined in accordance with such regulations. (3I) The costs are those incurred by the Secretary of State in relation to the consideration of the agreement or amendment, including, in particular, the costs of obtaining advice in relation to the agreement or amendment.

(4) In section 49 (procedure for modifying approved programme)—

(a) in subsection (3), after “made,” insert “ or advice is sought from the Secretary of State about the making of a proposal, ”, and

(b) in subsection (4), in the opening words after “proposal” insert “ (or the making of a proposal) ”.

(5) In section 66 (disposal of hazardous material), after subsection (3) insert—

(3A) The Secretary of State may make regulations providing for a person who makes a proposal to the Secretary of State to enter an agreement of the kind mentioned in subsection (1), or proposes an amendment to such an agreement, to pay a fee to the Secretary of State in respect of the costs incurred in relation to the consideration of the proposal, including, in particular, the costs of obtaining advice in relation to it. (3B) The regulations may, in particular, make provision about— (a) when the fee is to be paid; (b) how the amount of the fee is to be determined.

Smoke and carbon monoxide alarms

150

(1) The Secretary of State may by regulations make provision imposing duties on a relevant landlord of residential premises in England for the purposes of ensuring that, during any period when the premises are occupied under a tenancy—

(a) the premises are equipped with a required alarm (or required alarms), and

(b) checks are made by or on behalf of the landlord in accordance with the regulations to ensure that any such alarm remains in proper working order.

(2) “Required alarm” means—

(a) a smoke alarm, or

(b) a carbon monoxide alarm,

that meets the appropriate standard.

(3) Regulations may include provision about—

(a) the interpretation of terms used in subsections (1) and (2);

(b) the enforcement of any duty imposed by regulations.

(4) Provision made by virtue of subsection (3)(b) may in particular—

(a) confer functions on local housing authorities in England;

(b) require a landlord who contravenes any such duty to pay a financial penalty.

(5) Provision about penalties made by virtue of subsection (4)(b) includes provision—

(a) about the procedure to be followed in imposing penalties;

(b) about the amount of penalties;

(d) for the enforcement of penalties;

(e) about the application of sums paid by way of penalties (and such provision may permit or require the payment of sums into the Consolidated Fund).

(6) Regulations may—

(a) include incidental, supplementary and consequential provision;

(b) make transitory or transitional provision or savings;

(d) make provision subject to exceptions.

(7) Consequential provision made by virtue of subsection (6)(a) may amend, repeal or revoke any provision made by or under an Act.

(8) Regulations are to be made by statutory instrument.

(9) An instrument containing regulations may not be made unless a draft of the instrument has been laid before, and approved by a resolution of, each House of Parliament.

(10) Subject to provision contained in regulations, in this section—

“the appropriate standard”, in relation to a smoke alarm or a carbon monoxide alarm, means the standard (if any) that is specified in, or determined under, regulations;

“local housing authority” has the meaning given in section 261(2) of the Housing Act 2004;

“premises” includes land, buildings, moveable structures, vehicles and vessels;

“regulations” means regulations under this section;

“relevant landlord” means a landlord in respect of a tenancy of residential premises in England who is of a description specified in regulations;

“residential premises” means premises all or part of which comprise a dwelling;

“tenancy” includes any lease, licence, sub-lease or sub-tenancy (and “landlord” is to be read accordingly).

Review

Review of certain provisions of Part 6

151

(1) As soon as reasonably practicable after the end of the period of 5 years beginning with the relevant commencement date, the Secretary of State must carry out a review of—

(a) section 144 and Schedule 14 (consumer redress orders);

(b) section 149 (fees in respect of decommissioning etc).

(2) The relevant commencement date—

(a) in relation to section 144 and Schedule 14, is the date on which that section and Schedule come into force;

(b) in relation to section 149, is the date on which that section comes into force.

(3) The Secretary of State must set out the conclusions of the review in a report.

(4) The report must, in particular—

(a) set out the objectives of the provisions subject to review,

(b) assess the extent to which those objectives have been achieved, and

(c) assess whether those objectives remain appropriate and, if so, the extent to which those objectives could be achieved in a way that imposes less regulation.

(5) The Secretary of State must lay the report before Parliament.

PART 7 — Final

Interpretation of Act

152

(1) In this Act—

“the Authority” means the Gas and Electricity Markets Authority;

“EA 1989” means the Electricity Act 1989;

“functions” includes powers and duties;

“primary legislation” means—an Act of Parliament,an Act of the Scottish Parliament,an Act or Measure of the National Assembly for Wales, orNorthern Ireland legislation.

(2) A reference in this Act to—

(a) the Department of Enterprise, Trade and Investment, or

(b) the Department of Environment,

is to that Department in Northern Ireland.

Transfer schemes

153

(1) This section applies in relation to a scheme made by the Secretary of State under any of the following provisions (a “transfer scheme”)—

(a) Schedule 1;

(b) paragraph 16 of Schedule 2;

(d) Schedule 11;

(e) Schedule 13.

(2) Subject to subsection (3), the Secretary of State may modify a transfer scheme.

(3) If a transfer under the scheme has taken effect, any modification under subsection (2) that relates to the transfer may be made only with the agreement of the person (or persons) affected by the modification.

(4) A modification takes effect from such date as the Secretary of State may specify; and that date may be the date when the original scheme came into effect.

(5) A transfer scheme may—

(a) include incidental, supplementary and consequential provision;

(b) make transitory or transitional provision or savings;

(d) make provision subject to exceptions.

(6) In the provisions mentioned in subsection (1), “subordinate legislation” means—

(a) subordinate legislation within the meaning of the Interpretation Act 1978 (see section 21(1) of that Act), or

(b) an instrument made under—

(i) an Act of the Scottish Parliament,

(ii) an Act or Measure of the National Assembly for Wales, or

(iii) Northern Ireland legislation.

Financial provisions

154

(1) The following are to be paid out of money provided by Parliament—

(a) any expenditure incurred by the Secretary of State by virtue of this Act;

(b) any expenditure incurred by the Authority by virtue of this Act;

(2) The expenditure referred to in subsection (1)(a) includes expenditure incurred by the Secretary of State for the purposes of, or in connection with—

(a) the establishment of a CFD counterparty;

(b) making payments or providing financial assistance to a CFD counterparty;

(c) obtaining advice and assistance in relation to the exercise of functions conferred on the Secretary of State by or by virtue of Chapter 2 or 3 of Part 2;

(d) making payments or providing financial assistance to a settlement body in relation to capacity agreements (see section 28(4)(g));

(e) making payments or providing financial assistance to the national system operator, a person or body on whom a function is conferred by virtue of section 35 or an alternative delivery body in connection with the exercise of EMR functions.

(3) Financial assistance or payments includes financial assistance or payments given subject to such conditions as may be determined by, or in accordance with arrangements made by, the Secretary of State; and such conditions may in particular in the case of a grant include conditions for repayment in specified circumstances.

(4) In this section—

“alternative delivery body” and “EMR functions” have the same meaning as in section 46;

“CFD counterparty” and “national system operator” have the same meaning as in Chapter 2 of Part 2;

“financial assistance” means grants, loans, guarantees or indemnities, or any other kind of financial assistance.

Extent

155

(1) Subject to the rest of this section, this Act extends to England and Wales and Scotland.

(2) The following also extend to Northern Ireland—

(a) Part 1 (decarbonisation);

(b) in Part 2—

(i) Chapter 1 (general considerations),

(ii) Chapter 2 (contracts for difference),

(iii) Chapter 4 (investment contracts),

(iv) section 56 (transition to certificate purchase scheme),

(v) Chapter 8 (emissions performance standard), and

(vi) section 63 (exemption from liability in damages);

(d) this Part.

(3) Section 55(4) extends to Northern Ireland only.

(4) Sections 145 and 150 extend to England and Wales only.

(5) Section 149 extends to England and Wales and Northern Ireland only.

(6) Part 2 of Schedule 8 extends to England and Wales and Scotland only.

(7) The amendments made by Schedule 12 have the same extent as the provisions they amend, except that—

(a) paragraph 25 (amendment to section 24A of the Nuclear Installations Act 1965 as it has effect in England and Wales and Scotland) extends to England and Wales and Scotland only;

(b) the other amendments in that Schedule of the Nuclear Installations Act 1965 extend to England and Wales, Scotland and Northern Ireland only;

(c) paragraphs 39 to 49 (amendments of the Nuclear Safeguards and Electricity (Finance) Act 1978 and Nuclear Safeguards Act 2000) extend to England and Wales, Scotland and Northern Ireland only;

(d) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Commencement

156

(1) The provisions of this Act come into force on such day as the Secretary of State may by order made by statutory instrument appoint, subject to subsections (2) and (3).

(2) The following provisions come into force at the end of the period of 2 months beginning with the day on which this Act is passed—

(a) Chapter 5 of Part 2 (conflicts of interest and contingency arrangements);

(b) Chapter 6 of Part 2 (access to markets);

(d) Chapter 8 of Part 2 (emissions performance standard);

(e) Part 5 (strategy and policy statement), other than section 138(1), (4) and (5);

(f) sections 139 to 142 (domestic tariffs: modifications of energy supply licences);

(g) section 143 (powers to alter activities requiring licences: activities related to supply contracts);

(h) section 144 (consumer redress orders);

(i) section 145 (fuel poverty);

(j) section 146 (feed-in tariffs: increase in maximum capacity of plant);

(k) section 147 (offshore transmission systems);

(l) section 149 (fees in respect of decommissioning and clean-up of nuclear sites).

(3) The following provisions come into force on the day on which this Act is passed—

(a) Part 1 (decarbonisation);

(b) Chapter 1 of Part 2 (general considerations);

(d) Chapter 3 of Part 2 (capacity market);

(e) Chapter 4 of Part 2 (investment contracts);

(f) section 55 (closure of support under the renewables obligation);

(g) Chapter 9 of Part 2 (miscellaneous);

(h) section 113 (subordinate legislation under Part 3);

(i) section 114(1) (power to make transitional provision in relation to Part 3);

(j) section 115 (transfer of staff etc for purposes of Part 3);

(k) section 116(2) (power to make consequential amendments in relation to Part 3);

(l) section 118 (review of Part 3);

(m) section 151 (review of certain provisions of Part 6);

(n) the provisions of this Part (including this section).

(4) An order under subsection (1) may—

(a) appoint different days for different purposes;

(b) make transitional provision and savings.

Short title

157

This Act may be cited as the Energy Act 2013.

SCHEDULE 1

Power to make transfer schemes

1

(1) The Secretary of State may make one or more schemes for the transfer of designated property, rights or liabilities of a person who has ceased to be a CFD counterparty (“the transferor”) to a person who is a CFD counterparty (“the transferee”).

(2) On the transfer date, the designated property, rights and liabilities are transferred and vest in accordance with the scheme.

(3) The rights and liabilities that may be transferred by a scheme include those arising under or in connection with a contract of employment.

(4) A certificate by the Secretary of State that anything specified in the certificate has vested in any person by virtue of a scheme is conclusive evidence for all purposes of that fact.

(5) In this Schedule—

“designated”, in relation to a scheme, means specified in or determined in accordance with the scheme;

“property” includes interests of any description;

“the transfer date” means a date specified by a scheme as the date on which the scheme is to have effect.

Contents of a scheme

2

(1) A scheme may make provision—

(a) for anything done by or in relation to the transferor in connection with any property, rights or liabilities transferred by the scheme to be treated as done, or to be continued, by or in relation to the transferee;

(b) for references to the transferor in any agreement (whether written or not), instrument or other document relating to any property, rights or liabilities transferred by the scheme to be treated as references to the transferee;

(d) for transferring property, rights or liabilities which could not otherwise be transferred or assigned;

(e) for transferring property, rights and liabilities irrespective of any requirement for consent which would otherwise apply;

(f) for preventing a right of pre-emption, right of reverter, right of forfeiture, right to compensation or other similar right from arising or becoming exercisable as a result of the transfer of property, rights or liabilities;

(g) for dispensing with any formality in relation to the transfer of property, rights or liabilities by the scheme;

(h) for transferring property acquired, or rights or liabilities arising, after the scheme is made but before it takes effect;

(i) for apportioning property, rights or liabilities;

(j) for creating rights, or imposing liabilities, in connection with property, rights or liabilities transferred by the scheme;

(k) for requiring the transferee to enter into any agreement of any kind, or for a purpose, specified in or determined in accordance with the scheme.

(2) Sub-paragraph (1)(b) does not apply to references in primary legislation or in subordinate legislation.

Compensation

3

A scheme may contain provision for the payment of compensation by the Secretary of State to any person whose interests are adversely affected by it.

SCHEDULE 2

PART 1 — Introductory

Meaning of “investment contract”

1

(1) In this Schedule an “investment contract” means a contract with an electricity generator which—

(a) is entered into by the Secretary of State, whether before or after this Schedule comes into force, on or before the earlier of 31st December 2015 and the date on which a definition of an “eligible generator” first comes into force by virtue of section 10(3),

(b) if it relates to an electricity generating station in Northern Ireland, is entered into with the consent of the Department of Enterprise, Trade and Investment,

(c) includes an obligation for the parties to make payments under the contract based on the difference between a strike price and a reference price in relation to electricity generated, and

(d) is laid before Parliament in accordance with sub-paragraph (5).

(2) If the contract is entered into before the coming into force of this Schedule, the obligation referred to in sub-paragraph (1)(c) must be conditional on the being in force of this Schedule.

(3) In sub-paragraph (1)—

“electricity generator”, in relation to an investment contract, means—a person who at the time the contract is entered into intends to establish an electricity generating station or alter an existing station;a person who at that time intends to operate or participate in the operation of an electricity generating station that is to be established or altered;a person who at that time has an interest in a company falling within paragraph (a) or (b);

“reference price” means the sum that is specified in, or determined under, the contract as the reference price in respect of electricity generated in the period specified in, or determined under, the contract;

“Northern Ireland” includes so much of the internal waters and territorial sea of the United Kingdom as are adjacent to Northern Ireland;

“strike price” means the sum that is specified in, or determined under, the contract as the strike price in respect of electricity generated in the period specified in, or determined under, the contract.

(4) In the case of a contract entered into with more than one person, the reference in sub-paragraph (1)(c) to the parties is a reference to the Secretary of State and any of those persons who is an electricity generator.

(5) A contract is laid before Parliament in accordance with this sub-paragraph if it is laid by the Secretary of State at any time after the introduction into Parliament of the Bill that becomes this Act—

(a) with a statement falling within sub-paragraph (6), and

(b) after the Secretary of State has excluded from the contract any confidential information (see paragraph 3).

(6) A statement falls within this sub-paragraph if it is a statement—

(a) that the Secretary of State considers that payments falling within sub-paragraph (1)(c) which would be made under the contract would encourage low carbon electricity generation,

(b) that the Secretary of State considers that without the contract there is a significant risk that the electricity generation to which the contract relates will not occur or will be significantly delayed, and

(c) summarising the regard that the Secretary of State has had, in deciding to enter the contract, to the matters set out in subsection (2) of section 5.

(7) In sub-paragraph (6) “low carbon electricity generation” means electricity generation which in the opinion of the Secretary of State will contribute to a reduction in emissions of greenhouse gases; and “greenhouse gas” has the meaning given by section 92(1) of the Climate Change Act 2008.

(8) The Secretary of State must publish an investment contract in the form in which it was laid before Parliament as soon as reasonably practicable after it is laid.

Varied investment contract

2

(1) An investment contract is a “varied investment contract” for the purposes of this paragraph if the variation—

(a) is agreed at any time before or after this Schedule comes into force, and

(b) will, in the opinion of the Secretary of State, materially increase the likely cost to consumers of electricity.

(2) A varied investment contract is an “investment contract” for the purposes of this Schedule only if it is laid before Parliament (at any time after the introduction into Parliament of the Bill that becomes this Act)—

(a) with a statement of why, having regard to the likely cost to consumers of electricity, the Secretary of State believes that the variation is appropriate, and

(b) after the Secretary of State has excluded from it any confidential information (see paragraph 3).

(3) The Secretary of State must publish a varied investment contract in the form in which it was laid before Parliament as soon as reasonably practicable after it is laid.

(4) This paragraph does not apply in respect of a variation which is made in accordance with the terms of an investment contract.

Confidential information

3

(1) For the purposes of paragraphs 1 and 2, “confidential information” means specified information to which sub-paragraph (3) applies and in relation to which it is an initial term of the contract that it should not be disclosed.

(2) For the purposes of sub-paragraph (1)—

(a) a term is an initial term if it is agreed at the time the investment contract is entered into or, in relation to a varied investment contract, at the time the variation is agreed;

(b) “specified” means specified in the initial term.

(3) This sub-paragraph applies to information if it is—

(a) not the strike price or the reference price;

(b) information which, in the opinion of the Secretary of State at the time the initial term is agreed, constitutes a trade secret;

(c) information the disclosure of which, in the opinion of the Secretary of State at that time, would or would be likely to prejudice the commercial interests of any person;

(d) information the disclosure of which would, in the opinion of the Secretary of State at that time, constitute a breach of confidence actionable by any person.

Interpretation for the purposes of this Schedule

4

(1) In this Schedule—

“CFD” is to be construed in accordance with section 6(2);

“CFD counterparty” is to be construed in accordance with section 7(2);

“electricity supplier”, subject to any provision made by regulations, means a person who is a holder of a licence to supply electricity under—section 6(1)(d) of EA 1989, orArticle 10(1)(c) of the Electricity (Northern Ireland) Order 1992 (S.I. 1992/231 (N.I. 1));

“investment contract counterparty” is to be construed in accordance with paragraph 5;

“national system operator” means the person designated as the Independent System Operator and Planner under section 162 of the Energy Act 2023;

“regulations” means regulations made under paragraph 6.

(2) References in this Schedule to a CFD counterparty (apart from the references in paragraphs 9(1)(c) and (d) and 16) are to a CFD counterparty acting as a counterparty in relation to an investment contract (where any property, rights or liabilities under the contract have been transferred to the CFD counterparty by a scheme under paragraph 16).

Investment contract counterparty

5

(1) The Secretary of State may by order made by statutory instrument designate an eligible person to be a counterparty for investment contracts.

(2) A person is eligible if the person is—

(a) a company formed and registered under the Companies Act 2006, or

(b) a public authority, including any person any of whose functions are of a public nature.

(3) A designation may be made only with the consent of the person designated.

(4) The Secretary of State may exercise the power to designate so that more than one designation has effect under this paragraph, but only if the Secretary of State considers it necessary for the purpose of ensuring that—

(a) liabilities under an investment contract are met,

(b) arrangements entered into for purposes connected to an investment contract continue to operate, or

(5) A designation ceases to have effect if—

(a) the Secretary of State by order made by statutory instrument revokes the designation, or

(b) the person withdraws consent to the designation by giving not less than 3 months' notice in writing to the Secretary of State.

(6) As soon as reasonably practicable after a designation ceases to have effect the Secretary of State must make a transfer scheme under paragraph 16 to ensure the transfer of all rights and liabilities under any investment contract to which the person who has ceased to be an investment contract counterparty was a party.

(7) If necessary for the purposes of a transfer scheme required to be made by virtue of sub-paragraph (6), the Secretary of State must, so far as reasonably practicable, exercise the power to designate so as to ensure that at least one designation has effect under this paragraph.

(8) Regulations may include provision about the period of time for which, and the circumstances in which, a person who has ceased to be an investment contract counterparty is to continue to be treated as an investment contract counterparty for the purposes of the regulations.

PART 2 — Regulations: general

Regulations for the purposes of investment contracts

6

(1) The Secretary of State may by regulations make further provision about or in connection with investment contracts.

(2) The provision which may be made by regulations includes, but is not limited to, the provision described in this Schedule.

(3) Regulations may—

(a) include incidental, supplementary and consequential provision;

(b) make transitory or transitional provision or savings;

(d) make provision subject to exceptions.

(4) Regulations are to be made by statutory instrument.

(5) An instrument containing regulations of any of the following kinds may not be made unless a draft of the instrument has been laid before, and approved by a resolution of, each House of Parliament (in each case, whether or not the regulations also make any other provision)—

(a) the first regulations which make provision falling within paragraph 10,

(b) the first regulations which make provision falling within paragraph 11, or

(6) Any other instrument containing regulations is subject to annulment in pursuance of a resolution of either House of Parliament.

(7) If, but for this sub-paragraph, an instrument containing regulations would be treated for the purposes of the standing orders of either House of Parliament as a hybrid instrument, it is to proceed in that House as if it were not a hybrid instrument.

Supplier obligation

7

(1) Regulations may make provision for electricity suppliers to pay the Secretary of State for the purpose of enabling payments to be made under investment contracts.

(2) Regulations must make provision for electricity suppliers to pay an investment contract counterparty or a CFD counterparty for the purpose of enabling payments to be made under investment contracts.

(3) Regulations may make provision for electricity suppliers to pay the Secretary of State, an investment contract counterparty or a CFD counterparty for the purpose of enabling the person to whom the payments are made—

(a) to meet such other descriptions of costs as the Secretary of State considers appropriate;

(b) to hold sums in reserve;

(4) In sub-paragraph (3)(a) “costs” means costs in connection with the performance of any function conferred by or by virtue of this Schedule.

(5) Regulations may make provision to require electricity suppliers to provide financial collateral to the Secretary of State, an investment contract counterparty or a CFD counterparty (whether in cash, securities or any other form).

(6) Regulations which make provision by virtue of sub-paragraph (1) or (2) for the payment of sums by electricity suppliers must impose on the person to whom such sums are to be paid a duty in relation to the collection of such sums.

(7) Provision made by virtue of this paragraph may include provision for—

(a) the Secretary of State, an investment contract counterparty or a CFD counterparty to determine the form and terms of any financial collateral;

(b) the Secretary of State, an investment contract counterparty or a CFD counterparty to calculate or determine, in accordance with such criteria as may be provided for by or under the regulations, amounts which are owed by an electricity supplier or are to be provided as financial collateral by an electricity supplier;

(c) the issuing of notices by the Secretary of State, an investment contract counterparty or a CFD counterparty to require the payment or provision of such amounts;

(d) the enforcement of obligations arising under such notices.

(8) Provision made by virtue of sub-paragraph (7)(b) may provide for anything which is to be calculated or determined under the regulations to be calculated or determined by such persons, in accordance with such procedure and by reference to such matters and to the opinion of such persons, as may be specified in the regulations.

(9) Provision made by virtue of sub-paragraph (7)(d) may include provision—

(a) about costs;

(b) about interest on late payments under notices;

(d) about appeals.

(10) Any sum which—

(a) an electricity supplier is required by virtue of regulations to pay to the Secretary of State, an investment contract counterparty or a CFD counterparty, and

(b) has not been paid by the date on which it is required by virtue of regulations to be paid,

may be recovered from the electricity supplier by the Secretary of State, the investment contract counterparty or the CFD counterparty (as the case may be) as a civil debt due to that person.

Payments to electricity suppliers

8

(1) Regulations may make provision about the amounts which must be paid by the Secretary of State, an investment contract counterparty or a CFD counterparty to electricity suppliers.

(2) Provision made by virtue of this paragraph may—

(a) include provision for the person by whom sums are owed to calculate or determine, in accordance with such criteria as may be provided for by or under the regulations, amounts which are owed;

(b) provide for anything which is to be calculated or determined under the regulations to be calculated or determined by such persons, in accordance with such procedure and by reference to such matters and to the opinion of such persons, as may be specified in the regulations.

Application of sums

9

(1) Regulations may make provision for apportioning sums—

(a) received by the Secretary of State, an investment contract counterparty or a CFD counterparty from electricity suppliers under provision made by virtue of paragraph 7;

(b) received by the Secretary of State, an investment contract counterparty or a CFD counterparty under an investment contract,

(d) received by a CFD counterparty under a CFD,

in circumstances where the Secretary of State, an investment contract counterparty or a CFD counterparty is unable fully to meet liabilities under an investment contract or a CFD.

(2) Provision made by virtue of sub-paragraph (1) may include provision about the meaning of “unable fully to meet liabilities under an investment contract or a CFD”.

(3) In making provision by virtue of sub-paragraph (1) the Secretary of State must have regard to the principle that sums should be apportioned in proportion to the amounts which are owed.

(4) Regulations may make provision about the application of sums held by the Secretary of State, an investment contract counterparty or a CFD counterparty.

(5) Provision made by virtue of sub-paragraph (4) may include provision that sums are to be paid, or not to be paid, into the Consolidated Fund.

Information and advice

10

(1) Regulations may make provision about the provision and publication of information.

(2) Provision made by virtue of sub-paragraph (1) may include provision—

(a) for the Secretary of State to require the national system operator to provide advice to the Secretary of State;

(b) for the Secretary of State to require an investment contract counterparty, a CFD counterparty, the Authority, the Northern Ireland Authority for Utility Regulation or the Northern Ireland system operator to provide advice to the Secretary of State or any other person specified in the regulations;

(c) for the Secretary of State to require an investment contract counterparty, a CFD counterparty, the national system operator, electricity suppliers, the Authority, the Northern Ireland Authority for Utility Regulation, the Northern Ireland system operator or a generator who is party to an investment contract to provide information to the Secretary of State or any other person specified in the regulations;

(d) for the national system operator to require information to be provided to it by an investment contract counterparty, a CFD counterparty, a generator who is party to an investment contract or the Northern Ireland system operator;

(e) for an investment contract counterparty or a CFD counterparty to require information to be provided to it by electricity suppliers or the Northern Ireland system operator;

(f) for the classification and protection of confidential or sensitive information;

(g) for the enforcement of any requirement imposed by virtue of paragraphs (a) to (f).

(3) In sub-paragraph (2) “Northern Ireland system operator” means the holder of a licence under Article 10(1)(b) of the Electricity (Northern Ireland) Order 1992 (S.I. 1992/231 (N.I. 1)).

(4) The prohibition on disclosure of information by—

(a) section 105(1) of the Utilities Act 2000;

(b) Article 63(1) of the Energy (Northern Ireland) Order 2003 (S.I. 2003/419 (N.I. 6));

does not apply to a disclosure required by virtue of this paragraph.

Investment contracts: functions of the Authority

11

Regulations may make provision conferring functions on the Authority for the purpose of offering advice to, or making determinations on behalf of, a party to an investment contract.

Enforcement

12

(1) Regulations may include provision for requirements under the regulations to be enforceable—

(a) by the Authority as if they were relevant requirements on a regulated person for the purposes of section 25 of EA 1989;

(b) by the Northern Ireland Authority for Utility Regulation as if they were relevant requirements on a regulated person for the purposes of Article 41A of the Energy (Northern Ireland) Order 2003 (S.I. 2003/419 (N.I. 6)).

(2) Provision made by virtue of sub-paragraph (1)(b) may be made in relation only to the enforcement of requirements imposed on the holder of a licence under Article 10(1)(c) of the Electricity (Northern Ireland) Order 1992 (S.I. 1992/231 (N.I. 1)).

Consultation

13

(1) Before making regulations the Secretary of State must consult—

(a) the Scottish Ministers,

(b) the Welsh Ministers,

(d) such other persons as the Secretary of State considers it appropriate to consult.

(2) Before making regulations which contain provision falling within paragraph 7, 8 or 14(3), the Secretary of State must also consult electricity suppliers.

(3) Before making regulations which contain provision falling within paragraph 9, the Secretary of State must also consult electricity suppliers and any electricity generator who is party to an investment contract.

(4) Before making regulations which contain provision falling within paragraph 11 or 12(1)(a), the Secretary of State must also consult the Authority.

(5) Before making regulations which contain provision falling within paragraph 12(1)(a), the Secretary of State must also consult any person who is a holder of a licence under section 6(1)(d) of EA 1989.

(6) Before making regulations which contain provision falling within paragraph 12(1)(b), the Secretary of State must also consult the Northern Ireland Authority for Utility Regulation and any person who is a holder of a licence under Article 10(1)(c) of the Electricity (Northern Ireland) Order 1992 (S.I. 1992/231 (N.I. 1)).

(7) If regulations impose requirements by virtue of paragraph 10(2), the Secretary of State must before making the regulations also consult any person upon whom a requirement is imposed.

(8) The requirement to consult may be satisfied by consultation before, as well as consultation after, the passing of this Act.

PART 3 — Further provision about an investment contract counterparty and a CFD counterparty

Duties and liabilities of an investment contract counterparty and a CFD counterparty

14

(1) An investment contract counterparty and a CFD counterparty must act in accordance with—

(a) any direction given by the Secretary of State by virtue of this Schedule;

(b) any provision included in regulations.

(2) An investment contract counterparty and a CFD counterparty must exercise the functions conferred by or by virtue of this Schedule to ensure that it can meet its liabilities under any investment contract to which it is a party.

(3) Regulations may make provision—

(a) to require an investment contract counterparty or a CFD counterparty to enter into arrangements or to offer to contract for purposes connected to an investment contract;

(b) specifying things that an investment contract counterparty or a CFD counterparty may or must do, or things that an investment contract counterparty or CFD counterparty may not do;

(c) conferring on the Secretary of State further powers to direct an investment contract counterparty or CFD counterparty to do, or not to do, things specified in the regulations or the direction.

(4) Provision made by virtue of sub-paragraph (3)(b) or (c) includes provision requiring consultation with, or the consent of, the Secretary of State in relation to—

(a) the enforcement of obligations under an investment contract;

(b) a variation or termination of an investment contract;

(d) the conduct of legal proceedings relating to an investment contract;

(e) the exercise of rights under an investment contract.

(5) Regulations must include such provision as the Secretary of State considers necessary to ensure that an investment contract counterparty or a CFD counterparty can meet its liabilities under any investment contract to which it is a party.

Shadow directors, etc.

15

The Secretary of State is not, by virtue of the exercise of a power conferred by or by virtue of this Schedule, to be regarded as—

(a) a person occupying in relation to an investment contract counterparty or a CFD counterparty the position of director;

(b) being a person in accordance with whose directions or instructions the directors of an investment contract counterparty or a CFD counterparty are accustomed to act;

(d) a principal of an investment contract counterparty or a CFD counterparty.

PART 4 — Transfers

Transfers

16

(1) The Secretary of State may make one or more schemes for the transfer of designated property, or designated rights or liabilities under an investment contract—

(a) from the Secretary of State (“the transferor”) to a CFD counterparty (“the transferee”);

(b) from the Secretary of State (“the transferor”) to an investment contract counterparty (“the transferee”);

(d) from a person who has ceased to be an investment contract counterparty (“the transferor”) to a person who is an investment contract counterparty (“the transferee”).

(2) If a scheme provides for a CFD counterparty to be the transferee, regulations may provide for the investment contract to be treated to any extent as a CFD for the purposes of provision made by or by virtue of Chapter 2 of Part 2 of this Act.

(3) Sub-paragraph (4) applies from the beginning of the first day on which all of the following three conditions are met, namely—

(a) a definition of an “eligible generator” is in force by virtue of section 10(3) or the date is 1st January 2016 or later;

(b) a designation under section 7(1) has effect;

(4) The Secretary of State must in respect of each investment contract, within such period of time as the Secretary of State considers reasonable—

(a) make a transfer scheme by virtue of sub-paragraph (1)(a) or (c) to ensure the transfer of all rights and liabilities under the investment contract, and

(b) make provision under sub-paragraph (2) for the investment contract to be treated as a CFD for the purposes of all provision made by or by virtue of Chapter 2 of Part 2 of this Act.

(5) But sub-paragraph (4) does not apply to the extent that the Secretary of State considers it appropriate in all the circumstances of the case to disapply it.

(6) On the transfer date, the designated property, rights and liabilities are transferred and vest in accordance with the scheme.

(7) The rights and liabilities that may be transferred by a scheme include those arising under or in connection with a contract of employment.

(8) A certificate by the Secretary of State that anything specified in the certificate has vested in any person by virtue of a scheme is conclusive evidence for all purposes of that fact.

(9) In this paragraph and paragraph 17—

“designated”, in relation to a scheme, means specified in or determined in accordance with the scheme;

“property” includes interests of any description;

“the transfer date” means a date specified by a scheme as the date on which the scheme is to have effect.

17

(1) A scheme may make provision—

(a) for anything done by or in relation to the transferor in connection with any property, rights or liabilities transferred by the scheme to be treated as done, or to be continued, by or in relation to the transferee;

(b) for references to the transferor in any agreement (whether written or not), instrument or other document relating to any property, rights or liabilities transferred by the scheme to be treated as references to the transferee;

(d) for transferring property, rights or liabilities which could not otherwise be transferred or assigned;

(e) for transferring property, rights and liabilities irrespective of any requirement for consent which would otherwise apply;

(f) for preventing a right of pre-emption, right of reverter, right of forfeiture, right to compensation or other similar right from arising or becoming exercisable as a result of the transfer of property, rights or liabilities;

(g) for dispensing with any formality in relation to the transfer of property, rights or liabilities by the scheme;

(h) for transferring property acquired, or rights or liabilities arising, after the scheme is made but before it takes effect;

(i) for apportioning property, rights or liabilities;

(j) for creating rights, or imposing liabilities, in connection with property, rights or liabilities transferred by the scheme;

(k) for requiring the transferee to enter into any agreement of any kind, or for a purpose, specified in or determined in accordance with the scheme.

(2) Sub-paragraph (1)(b) does not apply to references in primary legislation or in subordinate legislation.

18

A scheme may contain provision for the payment of compensation by the Secretary of State to any person whose interests are adversely affected by it.

PART 5 — Supplementary

Licence modifications

19

(1) The Secretary of State may modify—

(a) a condition of a particular licence under section 6(1)(a), (b) or (c) of EA 1989 (generation, transmission and distribution licences);

(b) the standard conditions incorporated in licences under that provision by virtue of section 8A(1A) of that Act;

(c) a document maintained in accordance with the conditions of licences under that provision, or an agreement that gives effect to a document so maintained.

(2) The Secretary of State may make a modification under sub-paragraph (1) only for the purpose of—

(a) allowing or requiring services to be provided to the Secretary of State, an investment contract counterparty or a CFD counterparty;

(b) enforcing obligations under an investment contract.

(3) Provision included in a licence, or in a document or agreement relating to licences, by virtue of the power under sub-paragraph (1) may in particular include provision of a kind that may be included in regulations.

(4) Before making a modification under this paragraph, the Secretary of State must consult—

(a) the Scottish Ministers,

(b) the Welsh Ministers,

(d) electricity suppliers,

(e) the Department of Enterprise, Trade and Investment,

(f) the Authority, and

(g) such other persons as the Secretary of State considers it appropriate to consult.

(5) Sub-paragraph (4) may be satisfied by consultation before, as well as by consultation after, the passing of this Act.

Expenditure

20

(1) There may be paid out of money provided by Parliament expenditure incurred by the Secretary of State for the purpose of making payments in respect of the Secretary of State's obligations under an investment contract, whether entered into before or after this Schedule comes into force.

(2) There may be paid out of money provided by Parliament expenditure incurred by the Secretary of State for the purpose of, or in connection with—

(a) obtaining advice and assistance in relation to investment contracts (including in relation to entering into an investment contract);

(b) the establishment of an investment contract counterparty;

(3) Financial assistance or payments includes financial assistance or payments given subject to such conditions as may be determined by, or in accordance with arrangements made by, the Secretary of State; and such conditions may in particular in the case of a grant include conditions for repayment in specified circumstances.

(4) In this paragraph, “financial assistance” means grants, loans, guarantees or indemnities, or any other kind of financial assistance.

SCHEDULE 3

Power to make transfer schemes

1

(1) The Secretary of State may exercise the power in sub-paragraph (2) in connection with the making of an order under section 46 providing for a person (“the transferee”) to carry out EMR functions in place of another person (“the transferor”).

(2) The Secretary of State may make one or more schemes for the transfer of designated property, rights or liabilities of the transferor to the transferee.

(3) On the transfer date, the designated property, rights and liabilities are transferred and vest in accordance with the scheme.

(4) The rights and liabilities that may be transferred by a scheme include those arising under or in connection with a contract of employment.

(5) A certificate by the Secretary of State that anything specified in the certificate has vested in any person by virtue of a scheme is conclusive evidence for all purposes of that fact.

(6) In this Schedule—

“designated”, in relation to a scheme, means specified in or determined in accordance with the scheme;

“EMR functions” has the same meaning as in section 46;

“property” includes interests of any description;

“the transfer date” means a date specified by a scheme as the date on which the scheme is to have effect.

Contents of a scheme

2

(1) A scheme may make provision—

(a) for anything done by or in relation to the transferor in connection with any property, rights or liabilities transferred by the scheme to be treated as done, or to be continued, by or in relation to the transferee;

(b) for references to the transferor in any agreement (whether written or not), instrument or other document relating to any property, rights or liabilities transferred by the scheme to be treated as references to the transferee;

(d) for transferring property, rights or liabilities which could not otherwise be transferred or assigned;

(e) for transferring property, rights and liabilities irrespective of any requirement for consent which would otherwise apply;

(f) for preventing a right of pre-emption, right of reverter, right of forfeiture, right to compensation or other similar right from arising or becoming exercisable as a result of the transfer of property, rights or liabilities;

(g) for dispensing with any formality in relation to the transfer of property, rights or liabilities by the scheme;

(h) for transferring property acquired, or rights or liabilities arising, after the scheme is made but before it takes effect;

(i) for apportioning property, rights or liabilities;

(j) for creating rights, or imposing liabilities, in connection with property, rights or liabilities transferred by the scheme;

(k) for requiring the transferee to enter into any agreement of any kind, or for a purpose, specified in or determined in accordance with the scheme.

(2) Sub-paragraph (1)(b) does not apply to references in primary legislation or in subordinate legislation.

Compensation

3

A scheme must contain provision for the payment by the Secretary of State of such amounts of compensation as the Secretary of State considers appropriate to any person whose interests are adversely affected by it.

SCHEDULE 4

Application of duty: changes to main boilers

1

(1) Regulations under section 57(6)(b) may provide for the emissions limit duty to apply (with or without modifications) in relation to fossil fuel plant in cases where—

(a) immediately before the day on which section 57(1) came into force, the electricity generating station in question was the subject of a relevant consent, and

(b) on or after that day—

(i) any main boiler of the generating station is replaced, or

(ii) an additional main boiler is installed for the generating station.

(2) Regulations made by virtue of this paragraph may, in particular, make different provision in relation to different parts of fossil fuel plant.

(3) For the purposes of sub-paragraph (1)(a), plant is to be treated as the subject of a relevant consent if, by virtue of a consent or approval granted before section 36 of EA 1989 or Article 39 of the Electricity (Northern Ireland) Order 1992 (S.I. 1992/231 (N.I. 1)) came into force, no relevant consent was required in respect of it.

Application of duty: generating stations not exporting to a network

2

Regulations under section 57(6)(b) may provide for the emissions limit duty to apply with modifications (or not to apply) in relation to fossil fuel plant which does not include a network generating station.

Modifications where gasification or CCS plant associated with two or more generating stations

3

(1) Regulations under section 57(6)(b) may provide for the emissions limit duty, or the exemption in section 58, to apply with modifications in cases where—

(a) gasification plant or CCS plant is associated with two or more electricity generating stations, and

(b) each of those generating stations is the subject of a relevant consent.

(2) Regulations made by virtue this paragraph may, in particular, provide for—

(a) the installed generating capacity of any of those generating stations (or any part of it) to be treated as installed generating capacity of another of those generating stations;

(b) any of the emissions from the gasification plant or CCS plant to be treated as emissions from any of the generating stations.

Modifications where carbon capture and storage process used in relation to part of generating station

4

(1) Regulations under section 57(6)(b) may provide for the exemption in section 58 to apply with modifications in cases where the complete CCS system for the fossil fuel plant relates to only part of the generating station.

(2) For this purpose—

(a) a complete CCS system relates to part of a generating station if it is a system for capturing some or all of the carbon dioxide (or any substance consisting primarily of carbon dioxide) that is produced by, or in connection with, generation of electricity by that part of the generating station, and

(b) “complete CCS system” has the same meaning as in section 58.

Modifications of emissions limit duty for changes of circumstance during a year

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Energy Act 2013

Consequential provision

138

PART 6 — Consumer Protection and Miscellaneous

CHAPTER 1 — Consumer Protection

Domestic tariffs

Power to modify energy supply licences: domestic supply contracts

139

Section 139: procedure etc

140

General duties of Secretary of State

141

Consequential provision

142

Licensable activities

Powers to alter activities requiring licence: activities related to supply contracts

143

Consumer redress orders

Consumer redress orders

144

Fuel poverty

Fuel poverty

145

CHAPTER 2 — Miscellaneous

Feed-in tariffs

Feed-in tariffs: increase in maximum capacity of plant

146

Offshore transmission

Offshore transmission systems

147

Fees

Fees for services provided for energy resilience purposes

148

Fees in respect of decommissioning and clean-up of nuclear sites

149

Smoke and carbon monoxide alarms

Smoke and carbon monoxide alarms

150

Review

Review of certain provisions of Part 6

151

PART 7 — Final

Interpretation of Act

152

Transfer schemes

153

Financial provisions

154

Extent

155

Commencement

156

Short title

157

SCHEDULE 1

Power to make transfer schemes

1

Contents of a scheme

2

Compensation

3

SCHEDULE 2

PART 1 — Introductory

Meaning of “investment contract”

1

Varied investment contract

2

Confidential information

3

Interpretation for the purposes of this Schedule

4

Investment contract counterparty

5

PART 2 — Regulations: general

Regulations for the purposes of investment contracts

6

Supplier obligation

7

Payments to electricity suppliers

8