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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

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(6C) (1) The Authority may by regulations (“tender regulations”) make such provision as appears to it to be appropriate for facilitating the making by a delivery body of— (a) a decision whether to hold a tender exercise in relation to a relevant electricity project; (b) in prescribed circumstances, a determination on a competitive basis of any of the matters listed in subsection (2). (2) Those matters are— (a) the person by whom a relevant electricity project is to be carried out; (b) the person to whom a relevant licence is to be granted (whether for the purposes of a relevant electricity project or otherwise); (c) the person to whom a relevant contract is to be awarded. (3) The provision mentioned in subsection (1) includes— (a) provision for the Authority to determine, in prescribed cases, whether a tender exercise should be held, or continued, in relation to a relevant electricity project; (b) provision for the publication, in prescribed cases, of a proposal for a relevant licence to be granted or for a relevant contract to be awarded; (c) provision for the inclusion in such a proposal of an invitation to apply for such a licence or to bid for such a contract; (d) provision restricting applications and bids and imposing requirements as to the period within which they must be made; (e) provision for regulating the manner in which applications and bids are considered and determined. (4) The provision mentioned in subsection (1) also includes— (a) provision conferring functions on a delivery body; (b) provision authorising the Authority to conduct a review of the exercise by a delivery body of functions conferred on it by the regulations; (c) provision authorising the Authority to appoint another person to conduct such a review on the Authority’s behalf. (5) The provision that may be made by virtue of subsection (4)(a) includes provision requiring a delivery body, in prescribed circumstances, to provide information about prescribed matters to the Authority. (6) Tender regulations— (a) may make provision by reference to a determination by the Authority or by a delivery body, or to the opinion of the Authority or of a delivery body, as to any matter; (b) may dispense with or supplement provision made in relation to applications for relevant licences by or under section 6A or 6B. (7) The approval of the Secretary of State is required for the making of tender regulations. (8) The making of a determination by virtue of subsection (2)(b) or (c) that a person is to be granted a relevant licence or awarded a relevant contract does not of itself require— (a) the Authority to exercise its power to grant a relevant licence to the person, or (b) a contract counterparty to award a relevant contract to the person, (as the case may be). (6CA) (1) Tender regulations may include provision authorising a person to whom subsection (2) applies (“P”), by notice given to another person (an “information notice”), to require the other person to provide relevant information to P. (2) This subsection applies to— (a) the Authority; (b) a delivery body; (c) a contract counterparty. (3) “Relevant information” means information that P reasonably requires for the purposes of or in connection with the exercise of P’s functions. (4) References in this section to the Authority include a person appointed by the Authority by virtue of section 6C (4)(c), where the information sought relates to a function conferred by virtue of section 6C (4)(b) (review of activities of delivery body). (5) Provision made by virtue of subsection (1) must require an information notice— (a) to specify or describe the information sought, and (b) to specify the time by which the information must be provided. (6) Provision made by virtue of subsection (1) may include provision— (a) for an information notice and information obtained in pursuance of it to be shared with the Authority, where the notice is given by a person other than the Authority; (b) for the classification and protection of confidential or sensitive information; (c) for the enforcement by the Authority of a requirement to provide information in pursuance of an information notice; (d) for the amount of any financial penalty imposed on a person by virtue of paragraph (c) to be determined by the Authority in accordance with tender regulations. (7) Where by virtue of subsection (6)(c)tender regulations provide for the imposition of a financial penalty, they must also include provision for a right of appeal against the imposition of the penalty. (6CB) (1) Tender regulations may include provision requiring— (a) the payment to the Authority or a delivery body, in prescribed circumstances, of amounts in respect of— (i) tender costs of the Authority, or of the delivery body, in relation to a tender exercise; (ii) such amounts in respect of the Authority’s tender costs as the Authority considers appropriate, where those costs are not attributable to a particular tender exercise; (iii) such amounts in respect of the delivery body’s tender costs as the Authority considers appropriate, where those costs are not attributable to a particular tender exercise. (b) the provision to the Authority or to a delivery body, in prescribed circumstances, of a deposit of a prescribed amount in respect of a liability which a person has, or may in future have, by virtue of paragraph (a) in relation to a relevant licence or relevant contract; (c) the provision to the Authority or to a delivery body, in prescribed circumstances, of security in a form approved by it in respect of such a liability. (2) The provision that may be made by virtue of subsection (1)(a) includes provision requiring the payment of cost assessment costs incurred by— (a) the Authority, or (b) the delivery body, after the Authority or delivery body (as the case may be) has taken the steps required by virtue of subsections (7) to (9) in relation to the tender exercise. (3) The regulations may require the payments to be made, or the deposit or security to be provided, by one or more of the following— (a) any person who has made a connection request for the purposes of which the tender exercise has been, is being, or is to be, held; (b) any person who made a connection request for the purposes of which any previous tender exercise relating to the same transmission system, or a transmission system consisting of some or all of the same lines or plant or connecting any of the same generating stations or substations, was held; (c) any person who made a connection request for the purposes of which any previous tender exercise relating to the same distribution system, or a distribution system consisting of some or all of the same lines or plant or connecting any of same premises or other distribution systems, was held; (d) any person who operates a generating station which is connected to the transmission or distribution system to which the tender exercise relates; (e) any person who submits an application for the relevant licence or bids for the award of a relevant contract to which the tender exercise relates; (f) any person who is the holder of a transmission licence, a distribution licence, an interconnector licence or an MPI licence. (4) The regulations may make provision about how— (a) payments are to be made, and (b) deposits or other forms of security are to be provided, including provision for them to be made or provided by a person approved by the Authority or by a delivery body. (5) The regulations may include provision about— (a) the times at which payments are to be made, or deposits or other forms of security are to be provided, under the regulations; (b) the circumstances in which a payment made in accordance with regulations made by virtue of subsection (1)(a) is to be repaid (wholly or in part); (c) the circumstances in which such a repayment is to include an amount representing interest accrued on the whole or part of the payment; (d) the circumstances in which a deposit (including any interest accrued on it) or other security provided in accordance with the regulations is to be released or forfeited (wholly or in part); (e) the effect on a person’s participation in the tender exercise of a failure to comply with a requirement imposed by virtue of this section, and the circumstances in which the tender exercise is to stop as a result of such a failure. (6) The regulations may include provision for— (a) the review by the Authority, or by a person appointed by the Authority, of any tender costs determined by a delivery body; (b) the amendment by a delivery body of its tender costs following such a review. (7) The regulations must ensure that, as soon as reasonably practicable after a tender exercise or series of tender exercises is finished— (a) where the Authority is the delivery body, steps are taken by the Authority, in accordance with the regulations, to ensure that the aggregate of the amounts in subsection (9) does not exceed the Authority’s tender costs in respect of the exercise or series of exercises; (b) in any other case, steps are taken by the delivery body, in accordance with the regulations, to ensure that the aggregate of the amounts in subsection (9) does not exceed the aggregate of— (i) the Authority’s tender costs, and (ii) the delivery body’s tender costs, in respect of the exercise or series of exercises. (8) The regulations must also ensure that, in a case within subsection (7)(b), the aggregate of the amounts within subsection (9) so far as relating to any particular tender exercise does not include any amount that falls within paragraph (a) of the definition of tender costs in section 6CD (4) in relation to a different tender exercise. (9) The amounts are— (a) any fees under section 6A(2) in respect of applications for relevant licences, (b) any payments made or deposits provided in accordance with regulations made by virtue of subsection (1)(a) or (b) and not repaid, and (c) the value of any security provided in accordance with regulations made by virtue of subsection (1)(c) and forfeited in accordance with regulations made by virtue of subsection (5)(d), so far as relating to the tender exercise or series of tender exercises in question. (6CC) (1) For the purposes of section 6CB (3), a person makes a connection request when the person makes an application to— (a) the holder of a co-ordination licence (in accordance with any provision made by the licence) for an offer of connection to and use of a transmission system, or (b) an electricity distributor (whether in accordance with any provision made by the distributor’s licence or otherwise) for an offer of connection to and use of the distributor’s distribution system. (2) A person (“P”) is to be treated for those purposes as having made a connection request if— (a) P would have made the connection request, but for the fact that another person had already made an application within subsection (1)(a) or (b), and (b) the benefit of that application, or any agreement resulting from it, is vested in P. (3) Where tender regulations— (a) restrict the making of applications for relevant licences or bids for relevant contracts in relation to a relevant electricity project, or (b) operate so as to prevent an application or bid from being considered or further considered, if the applicant does not meet one or more prescribed requirements, the regulations may make provision enabling a person to apply to a relevant body for a decision as to the effect of any such restriction or requirement if the person were to make such an application or bid. (4) Regulations made by virtue of subsection (3) may enable a relevant body to charge a person who makes such an application or bid a prescribed fee for any decision given in response to it. (5) Where the successful bidder, in relation to a tender exercise, already holds a relevant licence (“the existing licence”)— (a) the Authority may make such modifications of the existing licence as are necessary for the purpose of giving effect to the determination resulting from the tender exercise, and (b) references in this Part to the grant of a relevant licence are to be read accordingly. (6) Before making any modifications under subsection (5)(a), the Authority must give notice— (a) stating that it proposes to make the modifications and setting out their effect, and (b) specifying the time (not being less than 28 days from the date of publication of the notice) within which representations or objections with respect to the proposed modifications may be made, and must consider any representations or objections that are duly made and not withdrawn. (7) Any sums received by the Authority under tender regulations are to be paid into the Consolidated Fund. (8) In section 6CB and this section— - “co-ordination licence” means a transmission licence which authorises a person to co-ordinate and direct the flow of electricity onto and over a transmission system— by means of which the transmission of electricity takes place, and the whole or a part of which is at a relevant place (within the meaning of section 4(5)); - “functions” includes powers and duties; - “relevant body” means the Authority, a delivery body or a contract counterparty. (6CD) (1) This section defines expressions that are used in sections 6C to 6CC (as well as in this section). (2) “Prescribed” means prescribed in or determined under tender regulations. (3) “Tender exercise” means the steps taken in accordance with tender regulations with a view to determining one or more of the following— (a) the person by whom a relevant electricity project is to be carried out; (b) the person to whom a relevant licence is to be granted; (c) the person to whom a relevant contract is to be awarded. (4) “Tender costs” means— (a) costs (including any cost assessment costs) incurred or likely to be incurred by the Authority for the purposes of a particular tender exercise or prospective tender exercise; (b) costs (including any cost assessment costs) incurred or likely to be incurred by a delivery body for the purposes of a particular tender exercise or prospective tender exercise; (c) such proportion as the Authority considers appropriate of the costs that— (i) have been, or are likely to be, incurred by the Authority or by a delivery body under regulations under section 6C, and (ii) are not directly attributable to a particular tender exercise. (5) “Cost assessment costs”, in relation to a tender exercise, means costs incurred or likely to be incurred by the Authority or by a delivery body in connection with any assessment of— (a) costs that have been or are to be incurred in connection with any property, rights or liabilities necessary or expedient for the performance by a person of functions under a relevant licence granted or a relevant contract awarded to the person as a result of the tender exercise; (b) costs incurred in connection with any property, rights or liabilities that would have been necessary or expedient for the performance of functions under a relevant licence or a relevant contract if such a licence or contract had been granted or awarded to a person as a result of the tender exercise. (6) “Successful bidder”, in relation to a tender exercise, is the person in respect of whom (as a result of the exercise) any of the following applies— (a) a delivery body determines that a relevant electricity project is to be carried out by the person; (b) a relevant licence has been or is to be granted to the person; (c) a relevant contract has been or is to be awarded to the person. (7) Section 6C (8) applies for the purposes of subsections (3)(b) and (c) and (6)(b) and (c) as it applies for the purposes of section 6C (2)(b) and (c).

4

In section 6E (property schemes)—

(a) for “offshore transmission licences” substitute “relevant licences and awards of relevant contracts”;

(b) in the heading, for “offshore transmission licences” substitute “relevant licences and contracts”.

5

(1) Section 6F (offshore transmission during commissioning period) is amended as follows.

(2) In subsection (2), for “an offshore” substitute “a”.

(3) In subsection (4)—

(a) at the beginning insert “In relation to an offshore transmission system,”;

(b) in paragraph (a), for “the tender regulations” substitute “offshore transmission tender regulations”.

(4) After subsection (4) insert—

(4A) In relation to a transmission system other than an offshore transmission system, the third condition is that— (a) either— (i) a tender exercise for the granting of a relevant licence in respect of the system has been or is being held, or (ii) a delivery body has determined to hold a tender exercise for the granting of a relevant licence in respect of the system, and (b) the system, or anything forming part of it, has not been transferred to the successful bidder.

(5) In subsection (8)—

(a) in the definition of “developer”, for the words from “section 6D(2)(a)” to the end substitute “section 6CB (3)(a) or (b) (person who makes the connection request, including any person who is to be so treated by virtue of section 6CC (2)”;

(b) for the definitions of “offshore transmission” and “offshore transmission licence” substitute—

“offshore transmission” means the transmission within an area of offshore waters of electricity generated by a generating station in such an area;

“offshore transmission licence” means a transmission licence authorising anything that forms part of a transmission system to be used for purposes connected with offshore transmission;

“offshore transmission tender regulations” means tender regulations that provide for the determination on a competitive basis of the person to whom an offshore transmission licence is to be granted;

;

“tender exercise” has the meaning given by section 6CD (3);

;

(d) in the definition of “relevant generating station”, for “an offshore” substitute “a”;

(e) for the definition of “the tender regulations” substitute—

“tender regulations” has the meaning given by section 6C (1).

(6) In the heading omit “Offshore”.

6

(1) Section 6G (meaning of “commissioning period”) is amended as follows.

(2) In subsection (1), for “an offshore” substitute “a”.

(3) Omit subsections (3) to (5).

(4) For subsection (6) substitute—

(6) In this section— - “co-ordination licence” means a transmission licence which authorises a person to co-ordinate and direct the flow of electricity onto and over a transmission system by means of which the transmission of electricity takes place and the whole or part of which is at a place in Great Britain, in the territorial sea adjacent to Great Britain or in a Renewable Energy Zone; - “relevant co-ordination licence holder” means the holder of a co-ordination licence to whom a person has applied (in accordance with any provision made by that licence) for an offer of connection to and use of a transmission system for the purposes of which the tender exercise is held.

7

(1) Section 6H (modification of codes or agreements) is amended as follows.

(2) In subsection (1), for “a transmission licence or a distribution licence” substitute “a relevant licence”.

(3) For subsection (2) substitute—

(2) The Authority may make a modification under subsection (1) only if it considers it necessary or desirable for the purpose of— (a) implementing, or facilitating the implementation of, a determination made in accordance with regulations under section 6C, or (b) implementing or facilitating the operation of section 6F or 6G.

(4) For subsection (4) substitute—

(4) Before making a modification under subsection (1) the Authority must— (a) consult such persons as the Authority considers appropriate, and (b) publish a notice— (i) stating that it proposes to make the modification and its reasons for proposing to make it, (ii) setting out the proposed modification and its effect, and (iii) specifying the time within which representations may be made (which must not be less than the period of 28 days beginning with the day on which the notice is published).

(5) In subsection (5), for “the Energy Act 2013” substitute “the Energy Act 2023”.

(6) In subsection (7), after “subsection” insert “(4) or”.

(7) Omit subsection (8).

(8) In the heading, after “Sections” insert “6C,”.

8

In section 11A (modification of conditions of licences), after subsection (9) insert—

(9A) This section does not apply to the modification of a licence in exercise of the power under section 6CC (5)(a) (modification of licence to give effect to determination on a tender exercise).

9

In section 64(1) (interpretation etc of Part 1), at the appropriate places insert—

“contract counterparty” has the meaning given by section 6BA;

;

“delivery body” has the meaning given by section 6BB;

;

“offshore transmission” and “offshore transmission licence” have the meaning given by section 6F(8);

;

offshore waters” means— waters in or adjacent to Great Britain which are between the mean low water mark and the seaward limits of the territorial sea, and waters within an area designated under section 1(7) of the Continental Shelf Act 1964;

;

“relevant contract” and “relevant licence” have the meaning given by section 6BA;

;

“relevant electricity project” has the meaning given by section 6BA;

;

“relevant licence” has the meaning given by section 6BA;

10

Schedule 2A (property schemes) is amended in accordance with paragraphs 11 to 24.

11

For paragraph 1 substitute—

(1) (1) This paragraph applies where a tender exercise is held in relation to a relevant electricity project, a relevant licence or a relevant contract. (2) The Authority may, on an application under paragraph 3, make a scheme (“a property scheme”) providing for— (a) the transfer to the successful bidder of, or (b) the creation in favour of the successful bidder of rights in relation to, any property, rights or liabilities necessary or expedient for construction, commissioning or operational purposes.

12

In paragraph 2, at the end insert—

(5) A property scheme may not contain provision for the transfer of, or creation of rights in relation to, property, rights or liabilities that the Authority considers it appropriate for the successful bidder to acquire by other means.

13

Omit paragraph 5.

14

In paragraph 12, for “operational purposes” substitute “construction, commissioning or operational purposes” in each of the following places—

(a) sub-paragraphs (1) to (3);

(b) sub-paragraph (10);

15

For paragraph 13 substitute—

(13) On an application for a property scheme, no scheme may be made until either a relevant licence has been granted or a relevant contract has been awarded to the successful bidder.

16

In paragraph 14—

(a) in sub-paragraph (4), for “operational purposes” substitute “construction, commissioning or operational purposes”;

(b) in sub-paragraph (6), after paragraph (a) insert—

(aa) a delivery body, (ab) a contract counterparty,

17

In paragraph 15(2), for “operational purposes” substitute “construction, commissioning or operational purposes”.

18

Omit paragraph 16(1)(d).

19

In paragraph 25(2), for “operational purposes” substitute “construction, commissioning or operational purposes”.

20

In paragraph 30, for “operational purposes” substitute “construction, commissioning or operational purposes”.

21

(1) Paragraph 35 is amended as follows.

(2) In sub-paragraph (2), for “the offshore transmission licence” substitute “a relevant licence”.

(3) After sub-paragraph (2) insert—

(2A) Where a tender exercise is held, as soon as a contract counterparty is satisfied that it will enter into a relevant contract with a particular person if certain matters are resolved to the counterparty’s satisfaction, it must publish a notice to that effect.

(4) In sub-paragraph (3), for “The notice” substitute “A notice under sub-paragraph (2) or (2A)”.

(5) After sub-paragraph (4) insert—

(4A) A contract counterparty may withdraw a notice given by it under sub-paragraph (2A) by publishing a notice to that effect.

(6) In sub-paragraph (5), after “(2)” insert “or (2A)”.

22

In paragraph 36—

(a) omit sub-paragraph (1);

(b) for sub-paragraph (2) substitute—

(2) Where as a result of a tender exercise the Authority determines to grant a relevant licence to a person, it must publish a notice to that effect. (2A) Where as a result of a tender exercise a person is awarded a relevant contract, the contract counterparty with which the contract is to be entered into must publish a notice to that effect.

23

After paragraph 36 insert—

(36A) (1) Before directing the holder of a transmission licence to act as a transmission owner of last resort pursuant to the conditions of the licence, the Authority may publish a notice— (a) stating that it proposes to give the direction, and (b) identifying the licence holder to whom it proposes to give the direction. (2) Where a notice is published under sub-paragraph (1), this Schedule has effect as if— (a) the licence holder is the preferred bidder in relation to a tender exercise, and (b) the notice is one published under paragraph 35(2), identifying the licence holder as the preferred bidder. (3) Paragraph 35(4) applies in relation to a notice published under sub-paragraph (1) of this paragraph as it applies to a notice published under paragraph 35(2). (4) Where the Authority directs the holder of a transmission licence to act as a transmission owner of last resort pursuant to the conditions of the licence, this Schedule has effect as if— (a) the licence holder is the holder of a transmission licence granted as a result of a tender exercise in which the licence holder was the successful bidder, and (b) a notice has been published under paragraph 36 identifying the licence holder as the successful bidder in relation to the tender exercise. (36B) (1) Before directing the holder of a distribution licence to act as a distribution network owner of last resort pursuant to the conditions of the licence, the Authority may publish a notice— (a) stating that it proposes to give the direction, and (b) identifying the licence holder to whom it proposes to give the direction. (2) Where a notice is published under sub-paragraph (1), this Schedule has effect as if— (a) the licence holder is the preferred bidder in relation to a tender exercise, and (b) the notice is one published under paragraph 35(2), identifying the licence holder as the preferred bidder. (3) Paragraph 35(4) applies in relation to a notice published under sub-paragraph (1) of this paragraph as it applies to a notice published under paragraph 35(2). (4) Where the Authority directs the holder of a distribution licence to act as a distribution network owner of last resort pursuant to the conditions of the licence, this Schedule has effect as if— (a) the licence holder is the holder of a distribution licence granted as a result of a tender exercise in which the licence holder was the successful bidder, and (b) a notice has been published under paragraph 36 identifying the licence holder as the successful bidder in relation to the tender exercise.

24

In paragraph 38(1)—

(a) at the appropriate place insert—

“construction, commissioning or operational purposes” means the purposes of performing any functions which the successful bidder has, or may in future have under or by virtue of— a relevant licence which has been, or is to be, granted as a result of the tender exercise, a relevant contract which has been, or is to be, awarded as a result of the tender exercise, or any enactment, in the successful bidder’s capacity as holder of the relevant licence or party to the relevant contract;

;

(b) omit the definitions of “co-ordination licence” and “relevant place”;

(d) for the definition of “successful bidder” substitute—

“successful bidder”, in relation to a tender exercise, has the meaning given by section 6CD (6);

;

(e) for the definition of “tender exercise” substitute—

“tender exercise” has the meaning given by section 6CD (3);

25

(1) In Schedule 4 (powers of licence holders), paragraph 6 is amended as follows.

(2) In sub-paragraph (1)—

(a) in paragraph (a), after “licence holder” insert “to obtain the right”;

(b) omit “for the licence holder”.

(3) After sub-paragraph (7) insert—

(7A) A necessary wayleave granted to a licence holder under this paragraph may be transferred to another licence holder.

Part 2 — Other amendments

Utilities Act 2000

26

(1) Section 105 of the Utilities Act 2000 (general restrictions on disclosure of information) is amended as follows.

(2) In subsection (3), after paragraph (ac) insert—

(ad) it is made for the purpose of facilitating any functions of the Authority, a delivery body or a contract counterparty (within the meaning of Part 1 of the 1989 Act) under regulations under section 6C of that Act;

Schedule 16

Part 1 — Further duties of Competition and Markets Authority to make references

1

Part 3 of the Enterprise Act 2002 (mergers) is amended as follows.

2

After section 68 insert—

(68A) (1) For the purposes of this Part, a relevant merger situation involves an energy network merger if two or more of the enterprises that cease to be distinct are energy network enterprises of the same type. (2) For the purposes of this Part, the types of “energy network enterprise” are— (a) an enterprise holding a licence under section 7 of the Gas Act 1986 (gas transporter); (b) an enterprise holding a licence under section 6(1)(b) of the Electricity Act 1989 (transmission of electricity), except as mentioned in subsection (3); (c) an enterprise holding a licence under section 6(1)(c) of the Electricity Act 1989 (distribution of electricity), except as mentioned in subsection (3). (3) An enterprise holding a licence under section 6(1)(b) or (c) of the Electricity Act 1989 is not an energy network enterprise if— (a) the licence was granted following a tender exercise, and (b) either— (i) the enterprise does not hold any other licence of a type mentioned in subsection (2), or (ii) the enterprise holds one or more other licences under section 6(1)(b) or (c) of the Electricity Act 1989 and each of those other licences was granted following a tender exercise. (4) The Secretary of State may by regulations amend this section by— (a) adding to subsection (2) an enterprise holding a licence under the Gas Act 1986 or the Electricity Act 1989 of a type that is not specified in that subsection; (b) creating an exception in relation to a type of enterprise specified in subsection (2); (c) amending or removing an exception that applies in relation to a type of enterprise specified in subsection (2). (5) Before making regulations under subsection (4), the Secretary of State must consult— (a) the Gas and Electricity Markets Authority, and (b) the CMA. (6) In this section, “tender exercise” has the same meaning as in section 6CD of the Electricity Act 1989. (68B) (1) The CMA must make a reference to its chair for the constitution of a group under Schedule 4 to the Enterprise and Regulatory Reform Act 2013 if the CMA believes that it is or may be the case that— (a) a relevant merger situation involving an energy network merger has been created, and (b) the creation of that situation has caused, or may be expected to cause, substantial prejudice to the ability of the Gas and Electricity Markets Authority, in carrying out its functions under Part 1 of the Gas Act 1986 or Part 1 of the Electricity Act 1989, to make comparisons between energy network enterprises of the type involved in the energy network merger; but this is subject to subsections (2) and (3). (2) The CMA may decide not to make a reference under this section if it believes that any relevant customer benefits in relation to the creation of the relevant merger situation outweigh the prejudice mentioned in subsection (1)(b). (3) The CMA must not make a reference under this section in any circumstances described in section 22(3). (4) A reference under this section must, in particular, specify— (a) the enactment under which it is made, and (b) the date on which it is made. (68C) (1) The CMA must make a reference to its chair for the constitution of a group under Schedule 4 to the Enterprise and Regulatory Reform Act 2013 if the CMA believes that it is or may be the case that— (a) arrangements are in progress or in contemplation which, if carried into effect, will result in the creation of a relevant merger situation involving an energy network merger, and (b) the creation of that situation may be expected to cause substantial prejudice to the ability of the Gas and Electricity Markets Authority, in carrying out its functions under Part 1 of the Gas Act 1986 or Part 1 of the Electricity Act 1989, to make comparisons between energy network enterprises of the type involved in the energy network merger, but this is subject to subsections (2) and (3). (2) The CMA may decide not to make a reference under this section if it believes that— (a) the arrangements concerned are not sufficiently far advanced, or are not sufficiently likely to proceed, to justify the making of a reference, or (b) any relevant customer benefits in relation to the creation of the relevant merger situation concerned outweigh the prejudice mentioned in subsection (1)(b). (3) The CMA must not make a reference under this section in any circumstances described in section 33(3). (4) A reference under this section must, in particular, specify— (a) the enactment under which it is made, and (b) the date on which it is made. (68D) (1) Before forming a view for the purposes of section 68B (1)(b) or (2) or 68C (1)(b) or (2)(b), the CMA must— (a) ask the Gas and Electricity Markets Authority to give an opinion, and (b) consider that opinion. (2) Where the CMA makes a request under this section, the Gas and Electricity Markets Authority must give its opinion on— (a) whether and to what extent the creation of the relevant merger situation has prejudiced, or may be expected to prejudice, the Authority’s ability, in carrying out its functions under Part 1 of the Gas Act 1986 or Part 1 of the Electricity Act 1989, to make comparisons between energy network enterprises of the type involved in the relevant merger situation, and (b) whether any prejudice is outweighed by any relevant customer benefits in relation to the creation of the relevant merger situation. (3) The Gas and Electricity Markets Authority must prepare and publish a statement of the methods it considers should be applied in forming an opinion on the matters mentioned in subsection (2). (4) The statement must, in particular, set out— (a) the criteria to be used for assessing the effect of any particular energy network enterprises ceasing to be distinct enterprises on the Gas and Electricity Market Authority’s ability to make comparisons between such enterprises, and (b) the relative weight to be given to the criteria. (5) Before preparing or altering the statement, the Gas and Electricity Markets Authority must consult— (a) the Secretary of State, (b) the Scottish Ministers, (c) the Welsh Ministers, (d) the CMA, and (e) each energy network enterprise. (6) The Gas and Electricity Markets Authority must from time to time— (a) review the statement, and (b) where appropriate, change the statement and publish the new version. (7) In forming its opinion under this section, the Gas and Electricity Markets Authority must apply the methods set out in its latest statement. (68E) (1) In respect of a relevant merger situation involving an energy network merger, the CMA may— (a) make a reference under both section 22 and section 68B, or (b) make a reference under both section 33 and section 68C. (2) If the CMA does so— (a) the references may be decided by the same group constituted under Schedule 4 to the Enterprise and Regulatory Reform Act 2013; (b) the functions of the CMA referred to in section 34C(1) and (2) may be carried out on behalf of the CMA by the same group in relation to both references; and (c) the group’s duties under section 38 to prepare and publish a report on each reference may be satisfied by preparing and publishing a single report on both references. (68F) (1) In relation to— (a) a reference, or possible reference, under section 68B, and (b) a reference, or possible reference, under section 68C, Chapter 1 of this Part applies with the modifications set out in Schedule 5A. (2) In Chapters 2 to 5 of this Part, references to a provision of Chapter 1 include that provision as applied by subsection (1) and Schedule 5A.

3

After Schedule 5 insert—

Schedule 5A (1) (1) Chapter 1 (other than sections 22 and 33) has effect as if— (a) references to a reference or possible reference under section 22 were references to a reference or possible reference under section 68B, and (b) references to a reference or possible reference under section 33 were references to a reference or possible reference under section 68C. (2) The references in sub-paragraph (1) to a reference under a section include a reference treated as made under that section. (2) Section 23 (relevant merger situations) has effect as if— (a) in subsection (1), for paragraph (b) there were substituted— (b) the value of the turnover in Great Britain of the enterprise being taken over exceeds £70 million. (b) subsections (2) to (8) were omitted. (3) Section 28 (turnover test) has effect as if— (a) references to the United Kingdom were to Great Britain; (b) in subsection (5), for “The CMA shall” there were substituted “The CMA and the Gas and Electricity Markets Authority shall each”; (c) the reference in subsection (6) to section 23(1)(b) included a reference to that provision as modified by paragraph 2 of this Schedule. (4) Section 30 (relevant customer benefits) has effect as if— (a) in subsection (1)(a)(i), for “lessening of competition concerned” there were substituted “prejudice to the Gas and Electricity Markets Authority”; (b) in subsections (2)(b) and (3)(b), for “a similar lessening of competition” there were substituted “a similar prejudice to the Gas and Electricity Markets Authority”. (5) Section 34ZA(1)(a) (time-limits for decisions about references) has effect as if— (a) the reference to section 22(2) were to section 68B (2); (b) the reference to section 22(3) were to— (i) that provision as applied by section 68B (4), and (ii) section 68B (3); (c) the reference to section 33(2) were to section 68C (2); (d) the reference to section 33(3) were to— (i) that provision as applied by section 68C (4), and (ii) section 68C (3). (6) Section 35 (questions to be decided in relation to completed mergers) has effect as if— (a) in subsection (1)(a), after “situation” there were inserted “involving an energy network merger”; (b) in subsection (1)(b), for the words from “has resulted” to the end there were substituted “has caused, or may be expected to cause, substantial prejudice to the ability of the Gas and Electricity Markets Authority to make comparisons between energy network enterprises of the type involved in the energy network merger”; (c) for subsection (2) there were substituted— (2) For the purposes of this section there is a prejudicial outcome if there is a situation described in subsection (1)(a) which has, or may be expected to have, the effect described in subsection (1)(b). (d) in subsection (3), for “an anti-competitive outcome (within the meaning given by subsection (2)(a))” there were substituted “a prejudicial outcome”; (e) in subsections (3)(a) and (b) and (4), for “lessening of competition” (in each place it appears) there were substituted “prejudice”. (7) Section 36 (questions to be decided in relation to anticipated mergers) has effect as if— (a) in subsection (1)(a), after “situation” there were inserted “involving an energy network merger”; (b) in subsection (1)(b), for the words from “result” to the end there were substituted “cause substantial prejudice to the ability of the Gas and Electricity Markets Authority to make comparisons between energy network enterprises of the type involved in the energy network merger”; (c) after subsection (1) there were inserted— (1A) For the purposes of this section there is a prejudicial outcome if there are arrangements described in subsection (1)(a) which may be expected to have the effect described in subsection (1)(b). (d) in subsection (2), for “an anti-competitive outcome (within the meaning given by section 35(2)(b))” there were substituted “a prejudicial outcome”; (e) in subsections (2)(a) and (b) and (3), for “lessening of competition” (in each place it appears) there were substituted “prejudice”. (8) Section 41 (duty to remedy effects of completed or anticipated mergers) has effect as if— (a) in subsection (1), for “an anti-competitive outcome” there were substituted “a prejudicial outcome (within the meaning of section 35(2) or 36(1A))”; (b) in subsection (2)(a) and (b), for “lessening of competition” there were substituted “prejudice”; (c) in subsection (4), for “lessening of competition” there were substituted “prejudice”.

Part 2 — Consequential amendments of Part 3 of Enterprise Act 2002

4

Part 3 of the Enterprise Act 2002 is amended as follows.

5

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

6

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

7

(1) Section 42 (intervention by Secretary of State in certain public interest cases) is amended as follows.

(2) In subsection (1)(b), for “section 22 or 33” substitute “section 22, 33, 68B or 68C”.

(3) In subsection (1)(c), after “33” insert “or subsection (2)(a) of section 68C“.

(4) In subsection (1)(d)—

(a) for “section 22 or 33” substitute “section 22, 33, 68B or 68C”;

(b) in sub-paragraph (1), after the second “or (a)” insert “(including those provisions as applied by sections 68B and 68C)”.

8

In section 56(2) (competition cases where intervention on public interest grounds ceases), for “or 33” (in both places it occurs) substitute “, 33, 68B or 68C”.

9

In section 57(1) (duties of CMA and OFCOM to inform Secretary of State), for “section 22 or 33” substitute “section 22, 33, 68B or 68C”.

10

In the italic heading at the beginning of Chapter 4, for “section 22 or 33” substitute “section 22, 33, 68B or 68C”.

11

(1) Section 72 (initial enforcement orders: completed or anticipated mergers) is amended as follows.

(2) In subsection (1)(a), for “section 22 or 33” substitute “section 22, 33, 68B or 68C”.

(3) In subsection (6)(a) and (d), for “section 22 or 33” substitute “section 22, 33, 68B or 68C”.

12

(1) Section 73 (undertakings in lieu of references) is amended as follows.

(2) In the heading, for “22 or 33” substitute “22, 33, 68B or 68C”.

(3) After subsection (3) insert—

(3A) Subsection (3B) applies if the CMA considers that it is under a duty to make a reference under section 68B or 68C; and for the purposes of this subsection it must— (a) disregard the operation of section 22(3)(b) or 33(3)(b) (as applied by section 68B or 68C), but (b) take account of its power under section 68B (2) or 68C (2) to decide not to make such a reference. (3B) The CMA may, instead of making such a reference and for the purpose of remedying, mitigating or preventing the prejudice to the ability of the Gas and Electricity Markets Authority described in section 68B (1) or 68C (1), accept from such of the parties concerned as it considers appropriate undertakings to take such action as it considers appropriate. (3C) In proceeding under subsection (3B), the CMA must, in particular, have regard to the need to achieve as comprehensive a solution as is reasonable and practicable to the prejudice. (3D) Before proceeding under subsection (3B), the CMA must— (a) ask the Gas and Electricity Markets Authority to give its opinion on the effect of the undertakings offered, and (b) consider the Authority’s opinion.

(4) In subsection (4), after “subsection (2)” insert “or (3B)”.

13

(1) Section 73A (time-limits for consideration of undertakings) is amended as follows.

(2) In subsection (1), after “73(2)” insert “or (3B)”.

(3) In subsection (2), for “those purposes” substitute “the purposes of section 73(2) or (3B)”.

14

(1) Section 74 (effect of undertakings under section 73) is amended as follows.

(2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(3) In subsection (5)(a), for “or 33” substitute “, 33, 68B or 68C”.

15

In section 77(1)(a) (restrictions on certain dealings: completed mergers), after “22” insert “or 68B”.

16

In section 78(1)(a) (restrictions on certain share dealings: anticipated mergers), after “33” insert “or 68C”.

17

In section 79(1) and (2) (sections 77 and 78: further interpretation provisions), for “or 33” substitute “, 33, 68B or 68C”.

18

In section 80(1), (7) and (8) (interim undertakings), for “or 33” substitute “, 33, 68B or 68C”.

19

In section 81(1), (7) and (8) (interim orders), for “or 33” substitute “, 33, 68B or 68C”.

20

In section 82(3) and (4) (final undertakings), for “or 33” substitute “, 33, 68B or 68C”.

21

In section 84(5) (final orders), for “or 33” substitute “, 33, 68B or 68C”.

22

(1) Section 100 (exceptions to protection given by merger notices) is amended as follows.

(2) In subsection (1), for “or (as the case may be) 33” substitute “, 33, 68B or 68C”.

(3) In subsection (2)(a), for “or 33” substitute “, 33, 68B or 68C”.

23

In section 104(6) (certain duties of relevant authorities to consult), in the definition of “relevant decision”, in paragraph (a)(i), for “or 33” substitute “, 33, 68B or 68C”.

24

In section 105(1) (general information duties of CMA), for “or 33” substitute “, 33, 68B or 68C”.

25

(1) Section 106 (advice and information about references) is amended as follows.

(2) In the heading, for “sections 22 and 33” substitute “section 22, 33, 68B or 68C”.

(3) In subsection (1)(a), for “or 33” substitute “, 33, 68B or 68C”.

26

(1) Section 107 (further publicity requirements) is amended as follows.

(2) In subsection (1)(a), for “or 33” substitute “, 33, 68B or 68C”.

(3) In subsection (1)(aa), for “subsection (2)(b) of section 33” substitute “section 33(2)(b) or 68C (2)(a)”.

(4) In subsection (1)(b), for “or 33” substitute “, 33, 68B or 68C”.

(5) In subsection (2)(a), at the end insert “or 68C”.

(6) In subsection (2)(b), for the words from “a reference” to the end substitute “a reference under section 22 or 68B as if it had been made under section 33 or 68C or to treat a reference under section 33 or 68C as if it had been made under section 22 or 68B”.

27

In section 109(A1)(a) (attendance of witnesses and production of documents etc), for “or 33” substitute “, 33, 68B or 68C”.

28

In section 110A(5) and (6) (restriction on powers to impose penalties under section 110), for “or 33” substitute “, 33, 68B or 68C”.

29

In section 110B(1) and (2) (restriction on powers to impose penalties under section 110), for “or 33” substitute “, 33, 68B or 68C”.

30

In section 121(3)(a) (fees), for “or 33” substitute “, 33, 68B or 68C”.

31

In section 124(5) (orders and regulations), at the beginning insert “Regulations made by the Secretary of State under section 68A or”.

32

In section 127(3) (associated person), for “or 62” substitute “, 62, 68B or 68C”.

33

(1) The table in section 130 (index of defined expressions) is amended as follows.

(2) After the entry for “Enactment” insert—

Energy network enterprise	Section 68A
Energy network merger	Section 68A

(3) In the entry for “Final determination of reference under section 22 or 33”, for “or 33” substitute “, 33, 68B or 68C”.

(4) In the entry for “References under section 22, 33, 45 or 62”—

(a) for “or 62” substitute “, 62, 68B or 68C”, and

(b) after “37(2)” insert “(including as applied by Schedule 5A)”.

(5) In the entry for “The turnover in the United Kingdom of an enterprise”, after “28(2)” insert “(including as applied by Schedule 5A)”.

34

(1) Schedule 7 (enforcement regime for public interest and special public interest cases) is amended as follows.

(2) In paragraph 4(1), for “or 45” substitute “, 45, 68B or 68C”.

(3) In paragraph 4(2)(a), for “or 33” substitute “, 33, 68B or 68C”.

Part 3 — Consequential amendments of other enactments

Utilities Act 2000

35

In section 105(3) of the Utilities Act 2000 (general restrictions on disclosure of information), in paragraph (azb), after “under” insert “Part 3 of the Enterprise Act 2002 or under”.

Enterprise and Regulatory Reform Act 2013

36

(1) Schedule 4 to the Enterprise and Regulatory Reform Act 2013 is amended as follows.

(2) In paragraph 35(3) (membership of CMA panel), in the definition of “specialist utility functions”, after paragraph (d) insert—

a reference under section 68B or 68C of the Enterprise Act 2002;

(3) In paragraph 56 (CMA group decision: requirement for two thirds majority), after sub-paragraph (2) insert—

(2A) Sub-paragraph (2B) applies where a decision of a CMA group under section 35(1) or 36(1) of that Act (as applied by section 68F of, and Schedule 5A to, that Act) that there is, or is likely to be, prejudice of the kind described in section 68B (1)(b) or 68C (1)(b) of that Act is not a qualifying majority decision. (2B) The decision of the CMA group is to be treated as a decision under section 35(1) or, as the case may be, section 36(1) of that Act (as applied by section 68F of, and Schedule 5A to, that Act) that there is not, or is not likely to be, prejudice of that kind.

Schedule 17

The Electricity Act 1989

1

The Electricity Act 1989 is amended as follows.

2

In section 3A (principal objective and general duties of Secretary of State and Gas and Electricity Markets Authority)—

(a) in subsection (1B), after “interconnectors” insert “or multi-purpose interconnectors”;

(b) in subsection (5)(a), after “interconnectors” insert “or multi-purpose interconnectors”;

(c) in subsection (5B), in the definition of “electricity-supply emissions”, after “interconnectors” insert “or multi-purpose interconnectors”.

3

In section 3F(2) (Gas and Electricity Markets Authority to cooperate with Northern Ireland Authority), after “interconnection” insert “and multi-purpose interconnection”.

4

In section 7 (conditions of licences: general)—

(a) in subsection (2), after “distribution licence” insert “or MPI licence”;

(b) in subsection (2A), after “transmission licence” insert “or MPI licence”.

5

In section 29 (regulations relating to supply and safety)—

(a) in subsection (1)(b), after “interconnectors” insert “or multi-purpose interconnectors”;

(b) in subsection (2)—

(i) in paragraph (b), after “interconnectors” insert “or multi-purpose interconnectors”;

(ii) in paragraph (c), after “interconnector” insert “or multi-purpose interconnector”.

6

In section 30 (electrical inspectors), in subsection (2)(a), after “interconnectors” insert “or multi-purpose interconnectors”.

7

In section 43 (functions with respect to competition)—

(a) in subsection (2A)(b), after “interconnectors” insert “or multi-purpose interconnectors”;

(b) in subsection (2C)(b), after “interconnectors” insert “or multi-purpose interconnectors”;

8

In subsection 44B (meaning of “section 44B dispute”), in subsection (1)(a), after sub-paragraph (iii) insert—

(iiia) made against the holder of an MPI licence,

9

In section 56A(4) (scope of power to alter activities requiring licence), after “electricity” insert “, with the operation of a multi-purpose interconnector”.

10

In section 58(2) (direction restricting the use of certain information), after “interconnectors” insert “or multi-purpose interconnectors”.

11

In section 98(1) (provision of statistical information), after “interconnectors” insert “or multi-purpose interconnectors”.

Scotland Act 1998

12

In section 90B of the Scotland Act 1998 (the Crown Estate), in subsection (12)(d), after “interconnectors” insert “or multi-purpose interconnectors (within the meaning of Part 1 of the Electricity Act 1989)”.

Utilities Act 2000

13

In section 5A of the Utilities Act 2000 (duty of Authority to carry out impact assessment), in subsection (2)—

(a) in paragraph (b), after “gas meters)” insert “or in the operation of a multi-purpose interconnector”;

(b) in paragraph (c), after “electricity” insert “or the operation of a multi-purpose interconnector”.

Energy Act 2004

14

Section 172 of the Energy Act 2004 (annual report on security of energy supplies) is amended as follows—

(a) in subsection (2D)(b), after “interconnectors” insert “and multi-purpose interconnectors”;

(b) in subsection (4), after ““generation”,” insert “, “multi-purpose interconnector”,”.

Civil Contingencies Act 2004

15

(1) Schedule 1 to the Civil Contingencies Act 2004 (category 1 and 2 responders) is amended as follows.

(2) In paragraph 19, in sub-paragraph (2)—

(a) omit the “and” after paragraph (b);

(b) after paragraph (c) insert

, and (d) an MPI licence.

(3) In paragraph 30, in sub-paragraph (2)—

(a) omit the “and” after paragraph (b);

(b) after paragraph (c) insert

, and (d) an MPI licence.

Consumers, Estate Agents and Redress Act 2007

16

In section 42 of the Consumers, Estate Agents and Redress Act 2007 (interpretation of Part 2), in subsection (4), in paragraph (c) of the definition of “electricity licensee”—

(a) for “or (e)” substitute “, (e) or (ea)”;

(b) for “and interconnector licences” substitute “, interconnector licences and MPI licences”.

Energy Act 2013

17

In section 59 of the Energy Act 2013 (suspension etc of emissions limit in exceptional circumstances), in subsection (4)(a), after “interconnector” insert “or multi-purpose interconnector”.

Regulation (EU) 2019/943 of the European Parliament and of the Council of 5th June 2019 on the internal market for electricity (recast)

18

In Article 63 of Regulation (EU) 2019/943 of the European Parliament and of the Council of 5th June 2019 on the internal market for electricity (recast), in paragraph 4A, for “granted under section 6(1)(e) of the Electricity Act 1989” substitute “or an MPI licence granted under section 6(1)(e) or (ea) respectively of the Electricity Act 1989”.

United Kingdom Internal Market Act 2020

19

In Part 2 of Schedule 2 to the United Kingdom Internal Market Act 2020 (services to which non-discrimination provisions do not apply), in the entry relating to services connected with the supply or production of electricity, after “interconnector” insert “or multi-purpose interconnector”.

Schedule 18

Part 1 — Interpretation

1

In this Schedule—

“code manager licence” has the meaning given by paragraph 25;

“consumer redress order” has the meaning given by paragraph 37;

“designated document” has the meaning given by paragraph 22;

“emissions” has the same meaning as in the Climate Change Act 2008 (see section 97 of that Act);

“enforcement undertaking” has the meaning given by paragraph 38 (2);

“heat network authorisation” has the meaning given by paragraph 13;

“heat network consumer” has the meaning given by the regulations;

“installation and maintenance licence” has the meaning given by paragraph 31;

“licensed code manager”, in relation to a designated document, has the meaning given by paragraph 25;

“regulated activity” has the meaning given by paragraph 12;

“the regulations” means regulations under section 219;

“relevant condition” has the meaning given by paragraph 37;

“relevant person” has the meaning given by paragraph 37;

“relevant requirement” has the meaning given by paragraph 37;

“targeted greenhouse gas” has the same meaning as in Part 1 of the Climate Change Act 2008 (see section 24 of that Act).

Part 2 — General provision as to the Regulator

Objectives

2

(1) The regulations may make provision about the objectives of the Regulator in carrying out its functions under the regulations.

(2) Regulations made by virtue of sub-paragraph (1) may, in particular, provide that the principal objective of the Regulator is to protect the interests of existing and future heat network consumers.

(3) The regulations may specify particular interests of existing and future heat network consumers that are to be protected.

(4) The interests specified may, in particular, include—

(a) their interests in the reliability of the supply of heating, cooling or hot water by means of relevant heat networks;

(b) their interests in the reduction of emissions of targeted greenhouse gases generated by relevant heat networks;

(c) their interests in charges for the supply of heating, cooling or hot water by means of relevant heat networks being proportionate;

(d) their interests in information about services and charges being communicated plainly.

General duties

3

(1) The regulations may make provision about the duties of the Regulator in carrying out its functions under the regulations.

(2) The duties may, in particular, include—

(a) a duty to carry out its functions in a manner best calculated to further its objectives;

(b) a duty to consider, when carrying out its functions, the need to ensure that persons carrying out activities under a heat network authorisation or under an installation and maintenance licence are able to finance obligations imposed by or under the regulations;

(c) a duty to have regard to the interests of heat network consumers who are in vulnerable circumstances when performing duties imposed by regulations made by virtue of paragraph (a) or (b).

(3) Regulations made by virtue of sub-paragraph (2)(a) may require that the Regulator promote effective competition between persons engaged in, or in commercial activities connected with, the supply of heating, cooling or hot water by means of relevant heat networks.

4

(1) The regulations may provide for the Regulator to have regard, in carrying out a function under the regulations, to—

(a) the interests of existing and future consumers in relation to electricity conveyed by distribution systems or transmission systems (within the meaning of the Electricity Act 1989);

(b) the interests of existing and future consumers in relation to gas conveyed through pipes (within the meaning of the Gas Act 1986);

(i) communications services and electronic communications apparatus, or

(ii) water services or sewerage services (within the meaning of the Water Industry Act 1991),

which are affected by the carrying out of that function.

(2) The regulations may provide for persons or bodies exercising regulatory functions in those fields to have regard, in carrying out a regulatory function, to the interests of existing or future consumers in relation to the supply of heating, cooling or hot water by means of relevant heat networks.

Delegation of functions

5

(1) The regulations may provide for the Regulator to delegate functions conferred on the Regulator by the regulations.

(2) The regulations may specify functions which may be delegated only with the consent of the Secretary of State or, as the case may be, the Department.

Monitoring, records and information

6

(1) The regulations may require the Regulator to keep under review the carrying on of activities connected with heat networks in the part or parts of the United Kingdom in relation to which the Regulator has functions under the regulations.

(2) The regulations may require the Regulator to monitor such matters relating to the activities regulated by the regulations or the persons who carry on those activities as the regulations may specify.

(3) The regulations may, for the purposes of enabling the Regulator to perform a duty imposed by regulations made by virtue of sub-paragraph (2), make provision enabling the Regulator to require information to be supplied.

7

(1) The regulations may require the Regulator to collect information with respect to activities connected with heat networks and the persons who carry on those activities for such purposes as are specified in the regulations.

(2) The regulations may, in particular, require the Regulator to collect information relating to standards of performance achieved by—

(a) persons who hold a heat network authorisation;

(b) licensed code managers;

8

(1) The regulations may make provision requiring the Regulator to maintain records.

(2) Regulations made by virtue of sub-paragraph (1) may, in particular, make provision requiring the Regulator to maintain records relating to—

(a) persons whose application for a heat network authorisation, a code manager licence or an installation and maintenance licence has been refused;

(b) persons whose heat network authorisation, code manager licence or installation and maintenance licence has been revoked.

(3) The regulations may make provision enabling or requiring the Regulator to provide information from its records to—

(a) the Secretary of State or a person specified by the Secretary of State,

(b) the Department or a person specified by the Department, or

9

(1) The regulations may make provision restricting the disclosure of information obtained by the Regulator under or by virtue of the regulations, subject to exceptions specified in the regulations.

(2) The regulations may make provision about the disclosure to the Regulator of information held by other persons or bodies.

10

(1) The regulations may make provision for the purpose of securing that a disclosure of information which is authorised or required by the regulations does not contravene the data protection legislation.

(2) In this paragraph, “the data protection legislation” has the same meaning as in the Data Protection Act 2018 (see section 3(9) of that Act).

Other general provision

11

(1) The regulations may make other general provision about the Regulator.

(2) Regulations made by virtue of sub-paragraph (1) may, in particular, make provision about—

(a) preparing and publishing documents about—

(i) strategy and policies;

(ii) plans for future work;

(b) publishing reports annually;

(d) preparing and publishing impact assessments.

(3) Regulations made by virtue of sub-paragraph (1) may make provision about preparing, issuing, reviewing and revising guidance.

(4) Regulations made by virtue of sub-paragraph (1) may provide for the publication of information and advice for the purpose of promoting the interests of existing and future heat network consumers.

Part 3 — Heat network authorisations

Prohibition from carrying on regulated activity

12

(1) The regulations may prohibit a person from carrying on a regulated activity, except as permitted by virtue of an authorisation conferred under regulations made by virtue of paragraph 13.

(2) In this paragraph, “regulated activity” means an activity relating to a relevant heat network of such description as may be specified in the regulations.

Heat network authorisations

13

(1) The regulations may provide for the Regulator to confer authorisations (“heat network authorisations”) to carry on one or more regulated activities specified in the authorisation in relation to a particular relevant heat network.

(2) The regulations may require a person who applies for a heat network authorisation—

(a) to satisfy such conditions relating to the person, the regulated activity or activities in question or the relevant heat network in question as the regulations may specify, and

(b) to provide such information as the regulations may specify.

(3) The regulations may provide for the Regulator—

(a) to confer a heat network authorisation;

(b) to confer a heat network authorisation on a temporary basis;

(4) The regulations may make provision about the procedure for applying for a heat network authorisation, including provision about—

(a) the form and content of an application,

(b) the manner in which the application and any accompanying documents are to be submitted to the Regulator;

(5) Regulations made in relation to England and Wales and Scotland by virtue of sub-paragraph (2)(b) or (4) may provide for the Regulator to make provision by regulations about the matters referred to in that sub-paragraph.

(6) Regulations made by the Regulator by virtue of sub-paragraph (5) are to be made by statutory instrument.

(7) The regulations may make provision as to the period for which an authorisation may be in force.

14

(1) The regulations may make provision about the conditions to be included in heat network authorisations.

(2) The regulations may, in particular—

(a) provide for the Regulator to determine and publish conditions to be included in each heat network authorisation or in each heat network authorisation of a particular description;

(b) provide for the Secretary of State or, in relation to Northern Ireland, the Department to determine and publish conditions to be included in each heat network authorisation or in each heat network authorisation of a particular description;

(d) make provision about the inclusion in a heat network authorisation of conditions that are special to that authorisation;

(e) make provision about including conditions that meet objectives or other criteria specified in the regulations.

(3) The regulations may, in particular, provide for conditions to be included in a heat network authorisation requiring the person who holds the authorisation—

(a) to comply with the provisions of a particular designated document;

(b) to enter into governance arrangements with the person who is from time to time the licensed code manager for that designated document and to comply with those arrangements;

(4) The regulations may, in particular, provide for the following sorts of conditions to be included in a heat network authorisation—

(a) conditions about the terms on which premises are connected to a relevant heat network (whether for the purpose of supplying heating, cooling or hot water to premises, or supplying thermal energy to a relevant heat network);

(b) conditions about installing and maintaining equipment for measuring, displaying, recording and regulating consumption of heating, cooling and hot water supplied by means of relevant heat networks;

(i) the charges payable by heat network consumers or a description of heat network consumers specified in the regulations,

(ii) the billing of heat network consumers;

(iii) service standards, or

(iv) the communication of information about the heat network, the services provided or the terms on which the services are provided;

(d) conditions relating to price regulation (including by means of regulation of charges or profits);

(e) conditions about complying with technical standards (including, in relation to England and Wales and Scotland, technical standards for which provision is made in a designated document);

(f) conditions about ensuring the continuity of the supply of heating, cooling and hot water to heat network consumers;

(g) conditions about limiting emissions of targeted greenhouse gases in relation to relevant heat networks in England or Northern Ireland;

(h) conditions about providing information to the Regulator;

(i) conditions about the payment of fees to the Regulator, including conditions about the payment of fees—

(i) in connection with the conferring of an authorisation;

(ii) while an authorisation continues to be in force in relation to a person;

(j) conditions about making payments to the Regulator of sums relating to the costs of the Regulator under regulations made by virtue of paragraph 46 (2).

(5) Conditions of the sort referred to in sub-paragraph (4)(c)(i) may, in particular—

(a) provide for charges imposed on heat network consumers to be subject to a price cap;

(b) require a person who holds a heat network authorisation not to impose on heat network consumers charges that are disproportionate (see paragraph 42).

(6) Conditions of the sort referred to in sub-paragraph (4)(c)(ii) may, in particular—

(a) impose requirements about the bills given to heat network consumers (including requirements about their frequency, accuracy and the use of estimates);

(b) impose requirements about the information and explanatory material to be provided to heat network consumers;

(c) make provision about the charges that may be made in respect of the costs of providing bills and such information and explanatory material.

(7) The regulations may, in particular, provide for conditions to be included in a heat network authorisation that—

(a) in relation to England and Wales or Scotland, impose on the person who holds the authorisation a requirement of a kind that may be imposed under section 7(3) of the Electricity Act 1989 on the holder of a licence under section 6(1) of that Act;

(b) in relation to Northern Ireland, impose on the person who holds the authorisation a requirement of a kind that may be imposed under Article 11(3) of the Electricity (Northern Ireland) Order 1992 (S.I. 1992/231 (N.I. 1)) on the holder of a licence under Article 10(1) of that Order.

Conditions about technical standards: further provision

15

The technical standards for which regulations made by virtue of paragraph 14 (4)(e) may make provision include technical standards relating to—

(a) the design, construction, commissioning, operation or maintenance of a heat network;

(b) the decommissioning of a heat network;

(d) the competence of persons engaged in the design, construction, commissioning, operation or maintenance of a heat network.

Conditions about continuity of supply: further provision

16

Conditions of the sort referred to in paragraph 14 (4)(f) may, in particular, require the holder of a heat network authorisation to enter into and maintain contractual arrangements under which, in circumstances of a description specified in the conditions, one or more other persons are under an obligation to secure the continuity of the supply of heating, cooling or hot water.

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