Legalize / United Kingdom / Public General Act

Energy Act 2023

Type Public General Act

Publication 2023-10-26

Last updated 2026-04-06

State In force

Department Statute Law Database

Source legislation.gov.uk

articles Not indexed

Reform history JSON API

(1) If the licence holder is aggrieved by a final or provisional order and wishes to question its validity on the ground that the making or confirmation of it was not within the powers of paragraph 1, or that any of the requirements of paragraph 2 have not been complied with in relation to it, the licence holder may within 42 days from the date of service on the licence holder of a copy of the order make an application to the court under this paragraph.

(2) On any such application the court, if satisfied that the making or confirmation of the order was not within those powers or that the interests of the licence holder have been substantially prejudiced by a failure to comply with those requirements, may quash the order or any provision of the order.

(3) Except as provided by this paragraph, the validity of a final or provisional order may not be questioned by any legal proceedings whatever.

(4) The obligation to comply with a final or provisional order is a duty owed to any person who may be affected by a contravention of it.

(5) Where a duty is owed by virtue of sub-paragraph (4) to any person any breach of the duty which causes that person to sustain loss or damage is to be actionable at the suit or instance of that person.

(6) In any proceedings brought against any person in pursuance of sub-paragraph (5), it is a defence for the person to prove that they took all reasonable steps and exercised all due diligence to avoid contravening the order.

(7) Without prejudice to any right which any person may have by virtue of sub-paragraph (5) to bring civil proceedings in respect of any contravention or apprehended contravention of a final or provisional order, compliance with any such order is to be enforceable by civil proceedings by the economic regulator for an injunction or interdict or for any other appropriate relief.

(8) In this paragraph “the court” means—

(a) in relation to England and Wales and Northern Ireland, the High Court;

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

Penalties

4

(1) Where the economic regulator is satisfied that a licence holder has contravened or is contravening any relevant condition or requirement, the economic regulator may, subject to paragraph 6, impose on the licence holder a penalty of such amount as is reasonable in all the circumstances of the case.

(2) Before imposing a penalty on a licence holder under sub-paragraph (1), the economic regulator must consider whether it would be more appropriate to proceed under the Competition Act 1998.

(3) The economic regulator must not impose a penalty on a licence holder under sub-paragraph (1) if it considers that it would be more appropriate to proceed under the Competition Act 1998.

(4) Before imposing a penalty on a licence holder under sub-paragraph (1) the economic regulator must give notice—

(a) stating that it proposes to impose a penalty and the amount of the penalty proposed to be imposed,

(b) setting out the relevant condition or requirement,

(c) specifying the acts or omissions which, in the opinion of the economic regulator, constitute the contravention in question and the other facts which, in the opinion of the economic regulator, justify the imposition of a penalty and the amount of the penalty proposed, and

(d) specifying the period (which must not be less than 21 days from the date of publication of the notice) within which representations or objections with respect to the proposed penalty may be made,

and must consider any representations or objections which are duly made and not withdrawn.

(5) Before varying any proposal stated in a notice under sub-paragraph (4)(a) the economic regulator must give notice—

(a) setting out the proposed variation and the reasons for it, and

(b) specifying the period (which must be at least 21 days from the date of publication of the notice) within which representations or objections with respect to the proposed variation may be made,

and must consider any representations or objections which are duly made and not withdrawn.

(6) As soon as practicable after imposing a penalty, the economic regulator must give notice—

(a) stating that it has imposed a penalty on the licence holder and its amount,

(b) setting out the relevant condition or requirement in question,

(c) specifying the acts or omissions which, in the opinion of the economic regulator, constitute the contravention in question and the other facts which, in the opinion of the economic regulator, justify the imposition of the penalty and its amount, and

(d) specifying a date, no earlier than the end of the period of 42 days from the date of service of the notice on the licence holder, by which the penalty is required to be paid.

(7) The licence holder may, within 21 days of the date of service on the licence holder of a notice under sub-paragraph (6), make an application to the economic regulator for it to specify different dates by which different portions of the penalty are to be paid.

(8) Any notice required to be given under this paragraph must be given—

(a) by publishing the notice in such manner as the economic regulator considers appropriate for the purpose of bringing the matters to which the notice relates to the attention of persons likely to be affected by them, and

(b) by serving a copy of the notice on the licence holder.

(9) This paragraph is subject to paragraph 10 (maximum amount of penalty that may be imposed).

(10) Any sums received by the economic regulator by way of penalty under this paragraph must be paid into the Consolidated Fund.

Statement of policy with respect to penalties

5

(1) The economic regulator must prepare and publish a statement of policy with respect to the imposition of penalties and the determination of their amount.

(2) In deciding whether to impose a penalty, and in determining the amount of any penalty, in respect of a contravention the economic regulator must have regard to its statement of policy most recently published at the time when the contravention occurred.

(3) The economic regulator may revise its statement of policy and where it does so must publish the revised statement.

(4) Publication under this paragraph must be in such manner as the economic regulator considers appropriate for the purpose of bringing the matters contained in the statement of policy to the attention of persons likely to be affected by them.

(5) The economic regulator must undertake such consultation as it considers appropriate when preparing or revising its statement of policy.

Time limits on the imposition of penalties

6

(1) Where no final or provisional order has been made in relation to a contravention, the economic regulator may not impose a penalty in respect of the contravention later than the end of the period of five years from the time of the contravention, unless before the end of that period—

(a) the notice under paragraph 4 (4) relating to the penalty is served on the licence holder under paragraph 4 (8), or

(b) a notice under section 29 (2)(b) is served on the licence holder which specifies that the notice is served in connection with a concern on the part of the economic regulator that the licence holder may be contravening, or may have contravened, a relevant condition or requirement.

(2) Where a final or provisional order has been made in relation to a contravention, the economic regulator may not impose a penalty in respect of the contravention unless the notice relating to the penalty under paragraph 4 (4) was served on the licence holder under paragraph 4 (8)—

(a) within three months from the confirmation of the provisional order or the making of the final order, or

(b) where the provisional order is not confirmed, within six months from the making of the provisional order.

Interest and payment of instalments

7

(1) If the whole or any part of a penalty is not paid by the date by which it is required to be paid, the unpaid balance from time to time is to carry interest at the rate for the time being specified in section 17 of the Judgments Act 1838.

(2) If an application is made under paragraph 4 (7) in relation to a penalty, the penalty is not required to be paid until the application has been determined.

(3) If the economic regulator grants an application under that sub-paragraph in relation to a penalty but any portion of the penalty is not paid by the date specified in relation to it by the economic regulator under that sub-paragraph, the economic regulator may where it considers it appropriate require so much of the penalty as has not already been paid to be paid immediately.

Appeals against penalties

8

(1) If the licence holder on whom a penalty is imposed is aggrieved by—

(a) the imposition of the penalty,

(b) the amount of the penalty, or

(c) the date by which the penalty is required to be paid, or the different dates by which different portions of the penalty are required to be paid,

the licence holder may make an application to the court under this paragraph.

(2) An application under sub-paragraph (1) must be made—

(a) within 42 days from the date of service on the licence holder of a notice under paragraph 4 (6), or

(b) where the application relates to a decision of the economic regulator on an application by the licence holder under paragraph 4 (7), within 42 days from the date the licence holder is notified of the decision.

(3) On any such application, where the court considers it appropriate to do so in all the circumstances of the case and is satisfied of one or more of the grounds falling within sub-paragraph (4), the court—

(a) may quash the penalty,

(b) may substitute a penalty of such lesser amount as the court considers appropriate in all the circumstances of the case, or

(c) in the case of an application under sub-paragraph (1)(c), may substitute for the date or dates imposed by the economic regulator an alternative date or dates.

(4) The grounds falling within this sub-paragraph are—

(a) that the imposition of the penalty was not within the power of the economic regulator under paragraph 4,

(b) that any of the requirements of sub-paragraphs (4) to (6) or (8) of paragraph 4 have not been complied with in relation to the imposition of the penalty and the interests of the licence holder have been substantially prejudiced by the non-compliance, or

(c) that it was unreasonable of the economic regulator to require the penalty imposed, or any portion of it, to be paid by the date or dates by which it was required to be paid.

(5) If an application is made under this paragraph in relation to a penalty, the penalty is not required to be paid until the application has been determined.

(6) Where the court substitutes a penalty of a lesser amount it may require the payment of interest on the substituted penalty at such rate, and from such date, as it considers just and equitable.

(7) Where the court specifies, as a date by which the penalty or a portion of the penalty is to be paid, a date before the determination of the application under this paragraph it may require the payment of interest on the penalty, or portion, from that date at such rate as it considers just and equitable.

(8) Except as provided by this paragraph, the validity of a penalty is not to be questioned by any legal proceedings whatever.

(9) In this paragraph “the court” means—

(a) in relation to England and Wales or Northern Ireland, the High Court, and

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

Recovery of penalties

9

Where a penalty imposed under paragraph 4 (1), or any portion of it, has not been paid by the date on which it is required to be paid and—

(a) no application relating to the penalty has been made under paragraph 8 during the period within which such an application can be made, or

(b) an application has been made under that paragraph and determined,

the economic regulator may recover from the licence holder, as a civil debt due to it, any of the penalty and any interest which has not been paid.

Maximum amount of penalty

10

(1) The maximum amount of penalty that may be imposed on a licence holder in respect of a contravention may not exceed 10 per cent of the licence holder’s turnover.

(2) The Secretary of State may by regulations provide for how a person’s turnover is to be determined for the purposes of this paragraph.

(3) Regulations under sub-paragraph (2) are subject to the affirmative procedure.

(4) In this paragraph “penalty” means a penalty imposed on a licence holder under paragraph 4.

Schedule 4

Application and commencement of scheme

1

(1) A scheme may set out the property, rights and liabilities to be transferred in one or more of the following ways—

(a) by specifying or describing them in particular;

(b) by identifying them generally by reference to, or to a specified part of, an undertaking from which they are to be transferred; or

(2) A scheme comes into force on the date appointed by the scheme.

Property, rights and liabilities that may be transferred

2

(1) The property, rights and liabilities that may be transferred by a scheme include—

(a) property, rights and liabilities that would not otherwise be capable of being transferred or assigned by the transferor;

(b) property acquired in the period after the making of the scheme and before it comes into force and rights and liabilities arising in that period;

(c) rights and liabilities arising after the scheme comes into force in respect of matters occurring before it comes into force;

(d) property situated in the United Kingdom, otherwise in a controlled place, or elsewhere;

(e) rights and liabilities under the law of a part of the United Kingdom or of a place outside the United Kingdom;

(f) rights and liabilities under an enactment or subordinate legislation.

(2) The transfers to which effect may be given by a scheme include transfers that are to take effect in accordance with the scheme as if there were—

(a) no such requirement to obtain a person’s consent or concurrence,

(b) no such liability in respect of a contravention of any other requirement, and

as there would be, in the case of a transaction apart from this Act, by reason of a provision falling within sub-paragraph (3).

(3) A provision falls within this sub-paragraph to the extent that it has effect (whether under an enactment or agreement or otherwise) in relation to the terms on which the transferor is entitled or subject to anything to which the transfer relates.

(4) Sub-paragraph (5) applies where (apart from that sub-paragraph) a person would be entitled, in consequence of anything done or likely to be done by or under this Act in connection with a scheme—

(a) to terminate, modify, acquire or claim an interest or right to which the transferor is entitled or subject, or

(b) to treat such an interest or right as modified or terminated.

(5) That entitlement is to be enforceable in relation to the interest or right—

(a) in consequence of what is done or likely to be done by or under this Act, and

(b) in corresponding circumstances arising after the transfer,

to the extent only that the scheme provides for it to be so enforceable.

(6) Sub-paragraphs (2) to (5) have effect where shares in a subsidiary of the transferor are or are to be transferred—

(a) as if the reference in sub-paragraph (3) to the terms on which the transferor is entitled or subject to anything to which the transfer relates included a reference to the terms on which the subsidiary is entitled or subject to anything immediately before the transfer takes effect, and

(b) as if the reference in sub-paragraph (4) to the transferor included a reference to the subsidiary.

Dividing and modifying transferor’s property, rights and liabilities

3

(1) A scheme may contain provision—

(a) for the creation, in favour of a transferor or transferee, of an interest or right in or in relation to property to be transferred in accordance with the scheme;

(b) for giving effect to a transfer to a person by the creation, in favour of that person, of an interest or right in or in relation to property to be retained by a transferor;

(c) for the creation of new rights and liabilities (including rights of indemnity and duties to indemnify) as between different transferees and as between a transferee and a transferor.

(2) A scheme may contain provision for the creation of rights and liabilities for the purpose of converting arrangements between different parts of a transferor’s undertaking which exist immediately before the coming into force of the scheme into a contract between different transferees, or between a transferee and a transferor.

(3) A scheme may contain provision—

(a) for rights and liabilities to be transferred so as to be enforceable by or against more than one transferee, or by or against both the transferee and the transferor, and

(b) for rights and liabilities enforceable against more than one person in accordance with provision falling within paragraph (a) to be enforceable in different or modified respects by or against each or any of them.

(4) A scheme may contain provision for interests, rights or liabilities of third parties in relation to anything to which the scheme relates to be modified in the manner set out in the scheme.

(5) In sub-paragraph (4) “third party”, in relation to a scheme, means a person other than the transferor and the transferee.

(6) Paragraph 2 (2) and (3) applies to the creation of interests and rights in accordance with a scheme as it applies to the transfer of interests and rights.

Obligation to effect transfers etc. under a scheme

4

(1) A scheme may contain provision for imposing on a transferee or a transferor an obligation—

(a) to enter into such agreements with another person on whom a corresponding obligation is, or could be or has been, imposed by virtue of this paragraph (whether in the same or a different scheme), or

(b) to execute such instruments in favour of any such person,

as may be specified or described in the scheme.

(2) An obligation imposed on a person by virtue of sub-paragraph (1) is enforceable by the relevant person in civil proceedings—

(a) for an injunction,

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

(3) The relevant person for the purposes of sub-paragraph (2) is the person with, or in favour of whom, the agreement or instrument is to be entered into or executed.

Transfer of licences and permits

5

(1) A scheme may include provision to transfer any licence or permit held by the transferor from the transferor to the transferee.

(2) Such a transfer may relate to the whole or any part of the licence or permit.

(3) Where such a transfer relates to a part of the licence or permit, the provision made under sub-paragraph (1) may include—

(a) provision apportioning responsibility between the transferor and the transferee in relation to—

(i) the making of payments required by conditions included in the licence or (as the case may be) permit,

(ii) ensuring compliance with any other requirements of the conditions included in the licence or (as the case may be) permit, and

(b) provision making incidental modifications to the terms and conditions of the licence or permit.

(4) References in this paragraph to a part of a licence or permit are references to one or both of—

(a) a part of the activities authorised by the licence or (as the case may be) permit;

(b) a part of the area in relation to which the holder of the licence or (as the case may be) permit is authorised to carry on those activities.

Powers and duties under statutory provisions

6

(1) A scheme may contain provision for some or all of the powers and duties to which this paragraph applies—

(a) to be transferred to the transferee,

(b) to become powers and duties that are exercisable, or must be performed, concurrently by two or more transferees, or

(c) to become powers and duties that are exercisable, or must be performed, concurrently by a transferor and a transferee.

(2) Provision falling within sub-paragraph (1) may apply to powers and duties only in so far as they are exercisable or required to be performed in the area specified or described in the provision.

(3) The powers and duties to which this paragraph applies are the powers and duties conferred or imposed upon the transferor by or under an enactment, so far as those powers and duties are connected with—

(a) the undertaking of the transferor to the extent the scheme relates to that undertaking, or

(b) any property, rights or liabilities to be transferred in accordance with the scheme.

(4) The powers and duties mentioned in sub-paragraph (3) include, in particular, powers and duties relating to the carrying out of works or the acquisition of land.

Effect of scheme

7

(1) Where a scheme provides for the transfer of property, rights or liabilities, or for the creation of interests, rights or liabilities—

(a) this Act has the effect that, at the time when the scheme comes into force, the property or interests, rights or liabilities vest, without further assurance, in the transferee, and

(b) the provisions of that scheme in relation to that property or those interests, rights or liabilities have effect from that time.

(2) Sub-paragraph (1) is subject to so much of a scheme as provides for—

(a) the transfer of property, rights or liabilities which are to be transferred in accordance with the scheme, or

(b) the creation of interests, rights and liabilities which are to be created in accordance with the scheme,

to be effected by or under an agreement or instrument entered into or executed in pursuance of an obligation imposed by virtue of paragraph 4 (1).

(3) In its application to Scotland, sub-paragraph (1) has effect with the omission of the words “without further assurance”.

Supplementary provisions of schemes

8

(1) A scheme may—

(a) make incidental, supplemental, consequential and transitional provision in connection with the other provisions of the scheme;

(b) make different provision for different purposes.

(2) In particular, a scheme may make provision, in relation to transfers in accordance with the scheme—

(a) for the transferee to be treated as the same person in law as the transferor;

(b) for agreements made, transactions effected or other things done by or in relation to the transferor to be treated, so far as may be necessary for the purposes of or in connection with the transfers, as made, effected or done by or in relation to the transferee;

(c) for references in an agreement, instrument or other document to the transferor, or to an employee or office holder of the transferor, to have effect, so far as may be necessary for the purposes of or in connection with a transfer, with such modifications as are specified in the scheme;

(d) that the effect of any transfer in accordance with the scheme in relation to contracts of employment with the transferor is not to terminate any of those contracts but is to be that periods of employment with the transferor are to count for all purposes as periods of employment with the transferee;

(e) for proceedings commenced by or against the transferor to be continued by or against the transferee.

(3) Sub-paragraph (2)(c) does not apply to references in an enactment or in subordinate legislation.

(4) A scheme may make provision for disputes as to the effect of the scheme between the transferor and the transferee to be referred to such arbitration as may be specified in or determined under the scheme.

(5) Where a person is entitled, in consequence of a scheme, to possession of a document relating in part to the title to land or other property in England and Wales, or to the management of such land or other property—

(a) the scheme may provide for that person to be treated as having given another person an acknowledgement in writing of the right of that other person to production of the document and to delivery of copies of it, and

(b) section 64 of the Law of Property Act 1925 (production and safe custody of documents) is to have effect accordingly, and on the basis that the acknowledgement did not contain an expression of contrary intention.

(6) Where a person is entitled, in consequence of a scheme, to possession of a document relating in part to the title to land or other property in Scotland or to the management of such land or other property, subsection (1) of section 16 of the Land Registration (Scotland) Act 1979 (omission of certain clauses in deeds) is to have effect in relation to the transfer—

(a) as if the transfer had been effected by deed, and

(b) as if the words “unless specially qualified” were omitted from that subsection.

(7) In this paragraph references to a transfer in accordance with a scheme include references to the creation in accordance with such a scheme of an interest, right or liability.

Modification of scheme

9

(1) The Secretary of State may modify a scheme.

(2) A modification may be made only for the purpose of achieving the objective with which the scheme was made (see section 50 (2)).

(3) If a transfer under the scheme has taken effect, a modification under sub-paragraph (1) may be made only with the agreement of—

(a) the transferor or transferee affected by the modification (or, where both the transferor and transferee are affected, with the agreement of both of them);

(b) any employee who is a party to a contract of employment containing rights and liabilities to which the modification relates;

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

Compensation for third parties

10

(1) Where—

(a) an entitlement of a third party to an interest or right would, apart from a provision of a scheme under paragraph 2 (4) and (5), become enforceable in respect of the transfer or creation in accordance with such a scheme of any property, rights or liabilities,

(b) the provisions of that scheme or of paragraph 2 (4) and (5) have the effect of preventing the third party’s entitlement to that interest or right from being enforced in respect of anything for which the scheme provides, and

(c) provision is not made by the scheme for securing that an entitlement to that interest or right, or to an equivalent interest or right, is preserved or created so as to arise and be enforceable in respect of the first occasion when corresponding circumstances next occur after the coming into force of the transfers for which the scheme provides,

the third party is entitled to compensation in respect of the extinguishment of the third party’s entitlement.

(2) The amount of compensation to which a third party is entitled under this paragraph is the amount necessary for securing, to the extent that it is just to do so, that the third party does not suffer financial loss from the extinguishment of the entitlement.

(3) A liability to pay compensation under this paragraph falls on the Secretary of State.

(4) In the preceding provisions of this paragraph “third party”, in relation to a scheme, means a person other than the transferor and the transferee.

(5) This paragraph has effect in relation to the provisions of an agreement or instrument entered into or executed in pursuance of an obligation imposed by a scheme as it has effect in relation to the scheme.

Provision relating to foreign property etc

11

(1) Where there is a transfer in accordance with a scheme of—

(a) any foreign property, or

(b) a foreign right or liability,

the transferor and the transferee must each take all requisite steps to secure that the vesting of the foreign property, right or liability in the transferee is effective under the relevant foreign law.

(2) Until the vesting of the foreign property, right or liability in the transferee in accordance with the scheme is effective under the relevant foreign law, the transferor must—

(a) hold the property or right for the benefit of the transferee, or

(b) discharge the liability on behalf of the transferor.

(3) The transferor must comply with any directions given to it by the transferee in relation to the performance of the obligations under sub-paragraphs (1) and (2) of the transferor.

(4) Nothing in sub-paragraphs (1) to (3) prejudices the effect under the law of a part of the United Kingdom of the vesting of any foreign property, right or liability in the transferee in accordance with a scheme.

(5) Where—

(a) any foreign property, right or liability is acquired or incurred in respect of any other property, right or liability by a person, and

(b) by virtue of this paragraph, the person holds the other property or right for the benefit of the transferee or is required to discharge the liability on behalf of the transferee,

the property, right or liability acquired or incurred immediately becomes the property, right or liability of the transferee.

(6) The provisions of sub-paragraphs (1) to (5) have effect in relation to foreign property, rights or liabilities transferred to the transferee under sub-paragraph (5) as they have effect in the case of property, rights and liabilities transferred in accordance with a scheme.

(7) References in this paragraph to foreign property, or to a foreign right or liability, are references to any property, right or liability as respects which an issue arising in any proceedings would be determined (in accordance with the rules of private international law) by reference to the law of a country or territory outside the United Kingdom.

(8) Expenses incurred under this paragraph by a person as the person from which anything is transferred are to be met by the transferee.

(9) An obligation imposed under this paragraph in relation to property, rights or liabilities is to be enforceable as if contained in a contract between the transferor and the transferee.

Provision of information to Secretary of State

12

(1) If the Secretary of State proposes to make a scheme, the Secretary of State may direct—

(a) a proposed transferor, or

(b) a proposed transferee,

to provide the Secretary of State with such information as the Secretary of State considers necessary to enable the Secretary of State to make the scheme.

(2) If the Secretary of State proposes to modify a scheme, the Secretary of State may direct—

(a) a transferor, or

(b) a transferee,

to provide the Secretary of State with such information as the Secretary of State considers necessary to enable the Secretary of State to modify the scheme.

(3) A direction under sub-paragraph (1) or (2) must specify the period within which the information is to be provided.

(4) The period specified in the direction must be not less than 28 days beginning with the day of the giving of the direction.

(5) If a person fails to comply with such a direction, the Secretary of State may serve a notice on the person requiring the person—

(a) to produce to the Secretary of State any documents which are specified or described in the notice and are in the person’s custody or under the person’s control, or

(b) to provide to the Secretary of State such information as may be specified or described in the notice.

(6) Documents or information to be produced or provided in accordance with such a notice must be produced or provided at the time and place, and in the form and manner, specified in the notice.

(7) No person may be required under this paragraph—

(a) to produce a document which the person could not be compelled to produce in civil proceedings in the court, or

(b) to provide information which the person could not be compelled to give in evidence in such proceedings.

(8) A person who intentionally alters, suppresses or destroys a document which the person has been required to produce by a notice under sub-paragraph (5) is guilty of an offence and liable—

(a) on summary conviction, to a fine not exceeding the statutory maximum, and

(b) on conviction on indictment, to a fine.

(9) If a person fails to comply with a notice under sub-paragraph (5), the court may, on the application of the Secretary of State, make such order as the court thinks fit for requiring the failure to be made good.

(10) Any order under sub-paragraph (9) may include provision requiring all the costs or expenses of and incidental to the application to be borne by one or more of the following—

(a) the person in default;

(b) any officers of a company or other association who are responsible for its default.

(11) In this paragraph—

(a) a reference to the production of a document includes a reference to the production of a legible and intelligible copy of information recorded otherwise than in legible form, and

(b) the reference to suppressing a document includes a reference to destroying the means of reproducing information recorded otherwise than in legible form.

(12) In this paragraph “the court” means—

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

(b) in Scotland, the Court of Session;

Interpretation

13

(1) In this Schedule—

“controlled place” has the meaning given by section 17(3) to (4) of the Energy Act 2008;

“scheme” means a scheme under section 50;

“subsidiary” has the meaning given to it by section 1159 of the Companies Act 2006;

“transferee”—in relation to a scheme, means a person to whom property, rights or liabilities are transferred in accordance with the scheme; andin relation to particular property, rights or liabilities transferred or created in accordance with a scheme, means the person to whom that property or those rights or liabilities are transferred or in whose favour, or in relation to whom, they are created;

“transferor”—in relation to a scheme, means the person from whom property, rights or liabilities are transferred in accordance with the scheme; andin relation to particular property, rights or liabilities transferred or created in accordance with a scheme, means the person from whom that property or those rights or liabilities are transferred or the person who or whose property is subject to the interest or right created by the scheme or for whose benefit the liability is created.

(2) References in this Schedule to a right or to an entitlement to a right include references to an entitlement to exercise a right; and, accordingly, references to a right’s arising include references to its becoming exercisable.

Schedule 5

Utilities Act 2000

1

The Utilities Act 2000 is amended as follows.

2

In section 4 (forward work programmes), at the end insert—

(7) In this section— (a) references to functions do not include functions under Part 1 of the Energy Act 2023, and (b) references to projects do not include projects with regard to the exercise of such functions.

3

In section 5 (annual and other reports of Authority), after subsection (10) insert—

(11) In this section— (a) references to functions of the Authority do not include functions under Part 1 of the Energy Act 2023; (b) references to activities of the Authority do not include activities in the exercise of such functions; (c) the reference in subsection (1) to “references made by the Authority” does not include references made by virtue of section 36 (1) of the Energy Act 2023.

4

In section 5XA (laying of accounts before Scottish Parliament and Welsh Assembly)—

(a) in the heading, for “and Welsh Assembly” substitute “, Senedd Cymru or the Northern Ireland Assembly”;

(b) after subsection (2) insert—

(2A) The Authority must send to the Department for the Economy in Northern Ireland, in respect of each of its accounting years, a copy of the certified accounts and report of the Authority no later than 31 January of the financial year following that to which the accounts relate.

;

(3B) The Department for the Economy in Northern Ireland must lay a copy of whatever is sent to it under subsection (2A) before the Northern Ireland Assembly.

;

(d) for subsection (4) substitute—

(4) In subsections (1) to (3) “certified accounts and report” means those accounts certified under sections 5 and 7 of the Government Resources and Accounts Act 2000, and the report issued by the Comptroller and Auditor General under section 6(3)(a) of that Act.

5

In section 105 (general restrictions on disclosure of information)—

(a) in subsection (1)(a), after “Energy Prices Act 2022” insert “or Part 1 of the Energy Act 2023”;

(b) in subsection (3), after paragraph (azc) insert—

(azd) it is made for the purpose of facilitating the performance of any functions of the Authority under or by virtue of Part 1 of the Energy Act 2023;

;

(z1) Part 1 of the Energy Act 2023.

Enterprise Act 2002

6

The Enterprise Act 2002 is amended as follows.

7

In section 136 (investigations and reports on market investigation references), in subsection (7)(b), for the words from “or” to the end substitute “, section 43 of the Electricity Act 1989 or (as the case may be) section 36 of the Energy Act 2023;”.

8

(1) Section 168 (regulated markets) is amended as follows.

(2) In subsection (3) (meaning of “relevant action”)—

(a) omit “or” at the end of paragraph (p);

(b) after paragraph (q) insert

; or (r) modifying the conditions of a licence granted under section 7 of the Energy Act 2023.

(3) In subsection (4) (meaning of “relevant statutory functions”)—

(a) omit “and” at the end of paragraph (r);

(b) after paragraph (s) insert

, and (t) in relation to a licence granted under section 7 of the Energy Act 2023, the objectives and duties of the Gas and Electricity Markets Authority under section 1 of that Act.

(4) In subsection (6)—

(a) for “or section 6” substitute “, section 6”;

(b) before “would” insert “or section 7 of the Energy Act 2023”.

Enterprise and Regulatory Reform Act 2013

9

In Schedule 4 to the Enterprise and Regulatory Reform Act 2013, in paragraph 35(3) (membership of CMA panel), in the definition of “specialist utility functions”, after paragraph (b) insert—

(ba) an appeal under section 20 of the Energy Act 2023;

Schedule 6

In the Storage of Carbon Dioxide (Licensing etc.) Regulations 2010 (S.I. 2010/2221), in Schedule 1 (provisions to be included in a licence), after paragraph 5 insert—

Schedule 7

Disclosure by OGA to specified persons

1

(1) Section 113 does not prohibit a disclosure of protected material by the OGA which—

(a) is made to a person mentioned in column 1 of the table below,

(b) is made for the purpose of facilitating the carrying out of that person’s functions, and

(c) is a disclosure of protected material obtained by the OGA under a provision mentioned in the corresponding entry of column 2 of the table.

Column 1	Column 2
A Minister of the Crown	Section 112 or 124
His Majesty’s Revenue and Customs	Section 112 or 124
The Competition and Markets Authority	Section 112 or 124
The Scottish Ministers	Section 112
The Welsh Ministers	Section 112
A Northern Ireland Department	Section 112
The Office for Budget Responsibility	Section 112
An enforcing authority	Section 112 or 124
The Statistics Board	Section 112 or 124
The GEMA	Section 112 or 124
The Crown Estate	Section 112
A manager of the Crown Estate in Scotland	Section 112

(2) In the table—

“enforcing authority” has the same meaning as in Part 1 of the Health and Safety at Work etc Act 1974 (see section 18(7)(a) of that Act);

“manager of the Crown Estate in Scotland” means a person who for the time being is discharging functions in relation to the management of any property, rights or interests to which section 90B(5) of the Scotland Act 1998 applies;

“Minister of the Crown” has the same meaning as in the Ministers of the Crown Act 1975.

(3) Section 113 does not prohibit a disclosure of protected material by the OGA which—

(a) is a disclosure of protected material obtained by it under section 112,

(b) is made to the Natural Environment Research Council, or any other similar body carrying on geological activities, and

(c) is made for the purpose of enabling the body to prepare and publish reports and surveys of a general nature using information derived from the protected material.

(4) A person to whom protected material is disclosed by virtue of sub-paragraph (1) or (3) may use the protected material only for the purpose mentioned in sub-paragraph (1)(b) or (3)(c) (as the case may be).

(5) Section 113 does not prohibit a person mentioned in sub-paragraph (4) from disclosing the protected material so far as necessary for the purpose mentioned in that sub-paragraph.

(6) The Secretary of State may by regulations amend the table in sub-paragraph (1)—

(a) to remove a person from column 1,

(b) to add to column 1 a person to whom sub-paragraph (7) applies, or

(7) This sub-paragraph applies to—

(a) persons holding office under the Crown;

(b) persons in the service or employment of the Crown;

(d) government departments;

(e) publicly owned companies as defined in section 6 of the Freedom of Information Act 2000.

(8) Regulations under sub-paragraph (6) are subject to the affirmative procedure.

Disclosure required for returns and reports prepared by OGA

2

(1) Section 113 does not prohibit the OGA from using protected material obtained by the OGA under section 112 for the purpose of—

(a) preparing such returns and reports as may be required under obligations imposed by or under any Act;

(b) preparing and publishing reports and surveys of a general nature using information derived from the protected material.

(2) Section 113 does not prohibit the OGA from disclosing protected material so far as necessary for those purposes.

Disclosure in exercise of certain OGA powers

3

Section 113 does not prohibit a disclosure of protected material if it is made in the exercise of the OGA’s powers under section 121 (publication of details of sanctions).

Disclosure after specified period

4

(1) Section 113 does not prohibit protected material obtained by the OGA under section 112 from being—

(a) published, or

(b) made available to the public (where the protected material includes samples),

by the OGA or a subsequent holder at such time as may be specified in regulations made by the Secretary of State.

(2) Regulations under sub-paragraph (1) may include provision permitting protected material to be published, or made available to the public, immediately after it is provided to a person.

(3) Before making regulations under sub-paragraph (1), the Secretary of State must consult such persons as the Secretary of State considers appropriate.

(4) Sub-paragraph (3) does not apply if the Secretary of State is satisfied that consultation is unnecessary having regard to consultation carried out by the OGA in relation to what time should be specified in regulations under sub-paragraph (1).

(5) Regulations under sub-paragraph (1) are subject to the affirmative procedure.

(6) In determining the time to be specified in respect of protected material in regulations under sub-paragraph (1), the Secretary of State must have regard to the following factors—

(a) whether the specified time will allow owners of protected material a reasonable period of time to satisfy the main purpose for which they acquired or created the material;

(b) any potential benefits to the carbon storage industry of protected material being published or made available at the specified time;

(c) any potential risk that the specified time may discourage persons from acquiring or creating carbon storage information or carbon storage samples;

(d) any other factors the Secretary of State considers relevant.

(7) In balancing the factors mentioned in sub-paragraph (6)(a) to (d), the Secretary of State must take into account the principal objectives of the Secretary of State set out in section 1 (1).

(8) For the purposes of sub-paragraph (6)(a), the owner of protected material is the person by whom, or on whose behalf, the protected material was provided to the OGA under section 112.

5

(1) Section 113 does not prohibit a disclosure of protected material if it is made with the appropriate consent.

(2) For this purpose a disclosure is made with the appropriate consent if—

(a) in the case of disclosure by the OGA, the original owner consents to the disclosure;

(b) in the case of disclosure by a subsequent holder—

(i) the OGA consents to the disclosure, and

(ii) where the protected material in question was provided to the OGA under section 112, the OGA confirms that the original owner of the material also consents to the disclosure.

(3) For the purposes of sub-paragraph (2), the original owner of protected material provided to the OGA is the person by whom, or on whose behalf, the protected material was so provided.

Disclosure required by legislation

6

Section 113 does not prohibit a disclosure of protected material required by virtue of an obligation imposed by or under this or any other Act.

Disclosure for purpose of proceedings

7

(1) Section 113 does not prohibit a disclosure of protected material by the OGA for the purposes of, or in connection with—

(a) civil proceedings, or

(b) arbitration proceedings.

(2) Section 113 does not prohibit a disclosure of protected material by the OGA for the purposes of, or in connection with—

(a) the investigation or prosecution of criminal offences, or

(b) the prevention of criminal activity.

Schedule 8

Part 1 — Appeals against decisions relating to information and samples

Appeals in relation to information and samples plans

1

(1) A person affected by any decision of the OGA to which effect is given by the preparation of an information and samples plan may appeal against it to the Tribunal—

(a) on the ground that the decision was not within the powers of the OGA, or

(b) on the ground that the plan is unreasonable.

(2) On an appeal under this paragraph the Tribunal may—

(a) affirm, vary or quash the decision under appeal,

(b) remit the decision under appeal to the OGA for reconsideration with such directions (if any) as the Tribunal considers appropriate, or

Appeals against notices requiring provision of information or samples

2

(1) A person affected by any decision of the OGA to which effect is given by the giving of a notice requiring the provision of information or samples under section 112 may appeal against it to the Tribunal—

(a) on the ground that the decision was not within the powers of the OGA, or

(b) on the ground that the length of time given to comply with the notice is unreasonable.

(2) On an appeal under this paragraph the Tribunal may—

(a) affirm, vary or quash the decision under appeal,

(b) remit the decision under appeal to the OGA for reconsideration with such directions (if any) as the Tribunal considers appropriate, or

Part 2 — Appeals relating to enforcement of sanctionable requirements

Appeals in relation to sanction notices

3

(1) Where a sanction notice is given under section 115 in respect of a failure to comply with a sanctionable requirement, an appeal may be made—

(a) under paragraph 4 (on the ground that there was no such failure to comply);

(b) under paragraph 5 (against the sanction imposed by the notice).

(2) Where an appeal is made in relation to a sanction notice, the notice ceases to have effect until a decision is made by the Tribunal to confirm, vary or cancel the notice.

(3) Where, on an appeal made in relation to a sanction notice—

(a) the Tribunal makes a decision to confirm or vary the notice, and

(b) an appeal is or may be made in relation to that decision,

the Tribunal, or the Upper Tribunal, may further suspend the effect of the notice pending a decision which disposes of proceedings on such an appeal.

Appeals against finding of failure to comply

4

(1) An appeal may be made to the Tribunal by the person, or by any of the persons, to whom a sanction notice is given in respect of a failure to comply with a sanctionable requirement, on the grounds that the person, or persons, did not fail to comply with the requirement.

(2) On an appeal under this paragraph, the Tribunal may confirm or cancel the sanction notice.

(3) Where sanction notices are given on more than one occasion in respect of the same failure to comply with a sanctionable requirement—

(a) an appeal under this paragraph may be made only in relation to the sanction notice, or any of the sanction notices, given on the first of those occasions, and

(b) appeals in relation to sanction notices given on subsequent occasions in respect of that failure to comply may be made only under paragraph 5.

Appeals against sanction imposed

5

(1) Where a sanction notice is given in respect of a failure to comply with a sanctionable requirement, a person mentioned in sub- paragraph (2) may appeal to the Tribunal against any of the decisions of the OGA mentioned in sub-paragraph (3) (as to the sanction imposed by the notice) on the grounds mentioned in sub-paragraph (4).

(2) The persons who may appeal are—

(a) the person, or any of the persons, to whom the notice was given, and

(b) in the case of an operator removal notice under section 119, the licensee under whose carbon storage licence the exploration operator operates.

(3) The decisions against which an appeal may be made are—

(a) where an enforcement notice has been given, the decision as to—

(i) the measures that are required to be taken for the purposes of compliance with the sanctionable requirement, or

(ii) the period for compliance with the sanctionable requirement;

(b) where a financial penalty notice has been given, the decision—

(i) to impose a financial penalty, or

(ii) as to the amount of the financial penalty imposed;

(c) where a revocation notice has been given, the decision to terminate the carbon storage licence or to revoke the storage permit;

(d) where an operator removal notice has been given, the decision to require the removal of the exploration operator.

(4) The grounds on which an appeal may be made are that the decision of the OGA—

(a) was unreasonable, or

(b) was not within the powers of the OGA.

(5) On an appeal under this paragraph against a decision made in relation to an enforcement notice, the Tribunal may—

(a) confirm or quash the decision, in the case of a decision mentioned in sub-paragraph (3)(a)(i) (remedial action), or

(b) confirm or vary the decision, in the case of a decision mentioned in sub-paragraph (3)(a)(ii) (period for compliance),

and confirm, vary or cancel the enforcement notice accordingly.

(6) On an appeal under this paragraph against a decision made in relation to a financial penalty notice, the Tribunal may—

(a) confirm or quash the decision, in the case of a decision mentioned in sub-paragraph (3)(b)(i) (imposition of penalty), or

(b) confirm or vary the decision, in the case of a decision mentioned in sub-paragraph (3)(b)(ii)(amount of penalty),

and confirm, vary or cancel the financial penalty notice accordingly.

(7) The Tribunal must have regard to any guidance issued by the OGA under section 117 (6)(a) when deciding whether to confirm or vary a decision as to the amount of a financial penalty under sub-paragraph (6)(b).

(8) On an appeal under this paragraph against a decision to terminate a carbon storage licence, to revoke a storage permit or to require the removal of an exploration operator the Tribunal may—

(a) confirm the decision,

(b) vary the decision by changing the revocation date or the removal date, as the case may be, or

and confirm, vary or cancel the sanction notice in question accordingly.

(9) Where a decision is quashed under sub-paragraph (5)(a), (6)(a) or (8), the Tribunal may remit the decision to the OGA for reconsideration with such directions (if any) as the Tribunal considers appropriate.

Appeals against information requirements

6

(1) A person to whom a notice is given under section 124 may appeal against it to the Tribunal on the grounds that—

(a) the giving of the notice is not within the powers of the OGA, or

(b) the length of time given to comply with the notice is unreasonable.

(2) On an appeal under this paragraph the Tribunal may—

(a) confirm, vary or cancel the notice, or

(b) remit the matter under appeal to the OGA for reconsideration with such directions (if any) as the Tribunal considers appropriate.

Schedule 9

Part 1 — Transfer schemes

Power to make a transfer scheme

1

(1) The Secretary of State may make one or more schemes for the transfer of designated property, rights or liabilities from one person to another person—

(a) in preparation for or in connection with the designation of a person under section 162 (1), or

(b) for the purpose of enabling the ISOP to carry out any of its functions.

(2) The Secretary of State may, during the period of 7 years beginning with the day on which this Act is passed, make one or more schemes for the transfer of designated property, rights or liabilities from one person to another person in connection with the operation or management of—

(a) a document maintained in accordance with the conditions of a relevant licence, or

(b) an agreement that gives effect to a document so maintained.

(3) In this Schedule

(a) “transfer scheme” means a scheme under either or both of sub-paragraphs (1) and (2);

(b) “transferor”, in relation to a transfer scheme, means a person from whom property, rights or liabilities are or are to be transferred under the scheme;

(c) “transferee”, in relation to a transfer scheme, means a person to whom property, rights or liabilities are or are to be transferred under the scheme.

(4) In this Part of this Schedule—

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

(b) “the TUPE regulations” means the Transfer of Undertakings (Protection of Employment) Regulations 2006 (S.I. 2006/246);

(d) references to the transfer of property include the grant of a lease;

(e) references to rights and liabilities—

(i) are references to rights and liabilities of any kind, arising (in any way or at any time) under the law of a part of Great Britain or of a place outside Great Britain;

(ii) include rights and liabilities arising under or by virtue of an enactment.

Consultation

2

(1) Before making a transfer scheme, the Secretary of State must consult—

(a) the transferor (or, if there is more than one transferor, the transferors), and

(b) such other persons as the Secretary of State considers appropriate.

(2) Sub-paragraph (1) may be satisfied by consultation before the passing of this Act (as well as by consultation after that time).

Transfer of property, rights and liabilities

3

(1) The transfer of designated property, rights and liabilities under a transfer scheme takes effect on the date (or dates) specified in or determined in accordance with the scheme.

(2) Sub-paragraph (1) has effect notwithstanding any provision (whether under an enactment or agreement or otherwise) that would otherwise prevent or restrict the transfer.

(3) The things that may be transferred under a transfer scheme include—

(a) rights, powers, duties and liabilities under or in connection with a contract of employment (see paragraph 4);

(b) property, rights and liabilities that could not otherwise be transferred;

(d) criminal liabilities.

4

(1) This paragraph applies where, under a transfer scheme, an employee to whom the scheme applies becomes an employee of a transferee.

(2) The transfer scheme may apply to—

(a) all persons who are employees of a transferor,

(b) such descriptions of a transferor’s employees as the scheme may specify, or

(3) The transfer scheme may include provision—

(a) that has the same or similar effect as the TUPE regulations (so far as those regulations do not apply to any extent in relation to the transfer);

(b) about the pension entitlements of the employee enjoyed immediately before the transfer.

(4) The transfer scheme must contain provision enabling an employee to whom the scheme applies to object to the transfer before the relevant time, including provision as to how such an objection is to be made and as to the consequences of it.

(5) The transfer scheme may provide that a person who is assigned to work for a transferor (whether on secondment or otherwise and whether or not on a full-time basis), but who does not have a contract of employment with the transferor, is to be treated for the purposes of any provision of the scheme as an employee of the transferor.

(6) The transfer scheme may provide that a collective agreement that, immediately before the relevant time, had effect in relation to an employee’s employment with a transferor is to have effect on and after the relevant time in relation to the employee’s employment with a transferee.

(7) In this paragraph—

“collective agreement” has the same meaning as in the Trade Union and Labour Relations (Consolidation) Act 1992 (see section 178(1) of that Act);

“employee” has the same meaning as in the TUPE regulations (see regulation 2(1) of the regulations);

“the relevant time” means the time at which the transfer of the person’s employment takes effect in accordance with the transfer scheme.

5

(1) A transfer scheme may make provision requiring a transferor to provide such co-operation to a transferee as the transferee may reasonably require in connection with the implementation of the scheme.

(2) The co-operation that may be required by virtue of sub-paragraph (1) includes, in particular, co-operation in relation to—

(a) the provision of information;

(b) consultation with representatives of employees transferred by the scheme.

6

(1) A transfer scheme may make supplementary, incidental, transitional or consequential provision and may in particular—

(a) create rights, or impose liabilities, in relation to property, rights or liabilities transferred;

(b) make provision about the continuing effect of things done by a transferor in respect of anything transferred;

(c) make provision about the continuation of things (including legal proceedings) in the process of being done by, on behalf of, or in relation to, a transferor in respect of anything transferred;

(d) make provision for references to a transferor in any instrument or other document in respect of anything transferred to be treated as references to the transferee;

(e) prevent 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;

(f) dispense with any formality in relation to the transfer of anything by the scheme;

(g) make provision for the shared ownership or use of property;

(h) require a transferor, an associate of a transferor, or a 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)(d) does not apply to references in—

(a) primary legislation,

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

(c) an instrument made under an Act of the Scottish Parliament, an Act or Measure of Senedd Cymru, or Northern Ireland legislation.

(3) Any requirement imposed on a person by a transfer scheme is enforceable by the Secretary of State in civil proceedings—

(a) for an injunction,

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

(4) A certificate issued by the Secretary of State to the effect that any property, interest, right or liability transferred in accordance with a transfer scheme to a person specified in the certificate at a time so specified is conclusive evidence of the matters so specified.

(5) In this paragraph—

“associate” has the meaning given by section 1152 of the Companies Act 2006;

“primary legislation” means—an Act,an Act of the Scottish Parliament,an Act or Measure of Senedd Cymru, orNorthern Ireland legislation.

7

A transfer scheme may—

(a) make different provision for different purposes;

(b) make provision subject to exceptions.

Compensation

8

(1) A transfer scheme may provide for a transferor to be entitled to compensation from the Secretary of State, in accordance with provision made by or under the scheme, to the extent that the scheme makes provision—

(a) in preparation for or in connection with the first designation of a person under section 162 (1), or

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