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

(b) the requested information to be provided within the period, and in the form and manner, specified in the notice;

(d) the disclosing of information requested by the zone coordinator not to breach any obligation of confidence owed by the person making the disclosure or any other restriction on the disclosure of information (however imposed);

(e) a request for information not to require a disclosure of information if disclosure would contravene the data protection legislation (but for a requirement imposed by virtue of regulations made by virtue of subsection (1) to be taken into account in determining whether a disclosure would do so);

(f) zone coordinators to delegate functions conferred on them by regulations made by virtue of subsection (1) to a description of person, and in the circumstances and subject to the conditions, specified by the regulations.

Heat networks within zones

232

(1) Zones regulations may make provision about heat networks within heat network zones.

(2) Regulations made by virtue of subsection (1) may, in particular—

(a) make provision imposing requirements on persons of a description specified in the regulations for the purpose of securing that buildings of types specified by the regulations situated within a heat network zone are connected to a district heat network within the zone—

(i) in circumstances specified by the regulations, and

(ii) within a time specified by, or determined in accordance with, the regulations;

(b) make provision about zone coordinators giving notice of requirements imposed by regulations made by virtue of paragraph (a) to persons on whom requirements are imposed;

(c) make provision about the grant by zone coordinators of exemptions from requirements imposed by regulations made by virtue of paragraph (a);

(d) make provision imposing requirements on persons of a description specified in the regulations for the purpose of securing that buildings of types specified by the regulations situated within a heat network zone are installed with communal heat networks—

(i) in circumstances specified by the regulations,

(ii) within a time specified by, or determined in accordance with, the regulations, and

(iii) in a manner that would allow the communal heat networks to be connected to a district heat network;

(e) make provision for, or in connection with, the requesting of information from a person, by notice given by a zone coordinator, about a source of thermal energy located on the person’s premises that may be suitable to supply a district heat network within a heat network zone;

(f) make provision for, or in connection with, the imposition of a requirement on a person, by notice given by a zone coordinator, to allow the installation of equipment on the person’s premises, and the connection of that equipment to a district heat network, to enable a source of thermal energy located on the premises to supply a district heat network within a heat network zone;

(g) make provision imposing requirements on persons of a description specified in the regulations for the purpose of securing that machinery and other equipment of types specified by the regulations are designed, and installed on premises, in a manner which would enable thermal energy generated by the machinery or other equipment to be supplied to a district heat network within a heat network zone;

(h) make provision about the terms on which thermal energy is supplied to a district heat network in pursuance of regulations made by virtue of paragraph (f) or (g) (including in particular provision about the amount that may be charged);

(i) make provision for, or in connection with, the setting by zone coordinators of limits on emissions of targeted greenhouse gases resulting from district heat networks within heat network zones;

(j) make provision about zone coordinators affording a grace period to a person who is required to comply with a limit imposed under regulations made by virtue of paragraph (i).

(3) Regulations made by virtue of subsection (2)(c) may—

(a) specify the criteria in accordance with which a zone coordinator is to determine an application for an exemption;

(b) make provision about procedure;

(4) Regulations made by virtue of subsection (2)(e) may—

(a) specify the information about the source of thermal energy that may be requested;

(b) require the requested information to be provided within the period, and in the form and manner, specified in the notice;

(c) provide for the disclosing of information requested by the zone coordinator not to breach any obligation of confidence owed by the person making the disclosure or any other restriction on the disclosure of information (however imposed);

(d) provide for a request for information not to require a disclosure of information if disclosure would contravene the data protection legislation (but for a requirement imposed by virtue of regulations made by virtue of subsection (2)(e) to be taken into account in determining whether a disclosure would do so);

(e) provide for zone coordinators to delegate functions conferred on them by regulations made by virtue of subsection (2)(e) to a description of person, and in circumstances and subject to conditions, specified by the regulations.

(5) Regulations made by virtue of subsection (2)(f) may—

(a) specify the types of sources of thermal energy in respect of which a zone coordinator may or must impose a requirement on a person and in what circumstances;

(b) make provision about the period within which a person must comply with a requirement;

(c) specify how, and on what grounds, a requirement imposed on a person in respect of a source of thermal energy may be appealed.

(6) Regulations made by virtue of subsection (2)(i) may—

(a) specify the manner and form in which the limits are to be set;

(b) require zone coordinators to obtain the consent of the Authority before setting a limit.

(7) Regulations made by virtue of subsection (2)(j) may—

(a) specify the circumstances in which a zone coordinator may or must afford a person a grace period;

(b) make provision for the Authority to issue guidance about grace periods;

(d) specify how, and on what grounds, a refusal to grant a grace period may be appealed.

(8) In subsection (2)(d), “communal heat network” has the meaning given by section 217 (2).

(9) In subsection (2)(i), “emissions” and “targeted greenhouse gas” have the same meaning as in the Climate Change Act 2008 (see sections 24 and 97 of that Act).

(10) In subsections (2)(j) and (7), “grace period” means a period to comply before enforcement action is taken.

Delivery of district heat networks within zones

233

(1) Zones regulations may make provision about the delivery of district heat networks within heat network zones.

(2) Regulations made by virtue of subsection (1) may, in particular—

(a) make provision about zone coordinators deciding—

(i) what district heat networks may be constructed and operated within a heat network zone;

(ii) who will design, construct, operate and maintain district heat networks within heat network zones;

(b) make provision about zone coordinators designing, constructing, operating or maintaining district heat networks within heat network zones, or arranging for their design, construction, operation or maintenance;

(c) make provision about the giving of advice by the Authority to zone coordinators about the delivery of district heat networks within heat network zones.

(3) Regulations made by virtue of subsection (2)(a)(ii) may—

(a) make provision for the construction, operation or maintenance of district heat networks within heat network zones to be subject to the consent of zone coordinators;

(b) make provision for the grant by zone coordinators of an exclusive right to design, construct, operate or maintain district heat networks within heat network zones or parts of heat network zones.

(4) Regulations made by virtue of subsection (3)(b) may—

(a) make provision for the Authority to publish the standard conditions that zone coordinators must use when granting an exclusive right (and for the Authority to amend or replace the standard conditions);

(b) specify the circumstances in which zone coordinators may grant an exclusive right.

(5) Regulations made by virtue of subsection (2)(a) may—

(a) specify the manner and form of zone coordinators’ decisions under regulations made by virtue of subsection (2)(a);

(b) make provision for a zone coordinator to vary or revoke a decision;

(d) make provision about procedure;

(e) make provision about the publication of a decision (or the variation or revocation of a decision);

(f) specify how, and on what grounds, a decision, or a variation or revocation of a decision, may be appealed;

(g) make provision for a zone coordinator to lose the power to decide the matters specified in subsection (2)(a)(i) and (ii), and instead for those matters to no longer be subject to the zone coordinator’s control, if the zone coordinator does not take steps specified by the regulations within a time specified by the regulations.

Enforcement

Enforcement of heat network zone requirements

234

(1) Zones regulations may make provision about the enforcement of heat network zone requirements.

(2) Regulations made by virtue of subsection (1) may, in particular, provide for a zone coordinator—

(a) to issue a notice requiring a person to demonstrate compliance with a heat network zone requirement where the zone coordinator suspects that the person is not complying with the requirement;

(b) to issue a notice specifying steps a person is required to take in order to comply with a heat network zone requirement where the zone coordinator is satisfied that the person is not complying with the requirement;

(i) a heat network zone requirement, or

(ii) a requirement imposed by a notice under regulations made by virtue of paragraph (a) or (b).

(3) Regulations made by virtue of subsection (2)(a) or (b) may—

(a) make provision about the period within which a person must comply with a notice;

(b) make provision about procedure;

(4) In this section, “heat network zone requirement” means a requirement imposed by or by virtue of regulations made by virtue of section 232 or 233.

Penalties

235

(1) Zones regulations made by virtue of section 231 (2)(c) or 234 (2)(c) may—

(a) make provision about the maximum amount that may be imposed by way of penalty;

(b) make provision about procedure;

(d) require sums received by way of penalty to be paid into the Consolidated Fund or to persons specified by the regulations.

(2) Zones regulations made by virtue of section 231 (2)(c) or 234 (2)(c) must include provision for a right of appeal against the imposition of a penalty.

(3) Zones regulations may provide for the publication of guidance by the Authority with respect to—

(a) the imposition of penalties under regulations made by virtue of section 231 (2)(c) or 234 (2)(c), and

(b) the determination of their amount.

Records, information and reporting

236

(1) Zones regulations may make provision requiring zone coordinators to collect information specified by the regulations which—

(a) is relevant to identifying areas which are appropriate for the construction and operation of one or more district heat networks, or

(b) relates to areas designated as heat network zones.

(2) Zones regulations may make provision requiring zone coordinators to maintain records of—

(a) information provided to zone coordinators in response to requests for information made by zone coordinators under regulations made by virtue of section 231 or 232 (2)(e);

(b) information zone coordinators are required to collect by regulations made by virtue of subsection (1) of this section;

(c) other information provided to, collected by, or otherwise brought into the possession of zone coordinators by virtue of their functions under zones regulations.

(3) Zones regulations may make provision enabling or requiring zone coordinators to provide information specified by the regulations from their records to—

(a) to other zone coordinators;

(b) the Authority;

(4) Zone regulations may require the Authority to maintain records of—

(a) information provided to the Authority in response to requests for information made by the Authority under regulations made by virtue of section 231;

(b) information provided by zone coordinators to the Authority in accordance with regulations made by virtue of subsection (3) of this section;

(c) other information provided to, collected by, or otherwise brought into the possession of the Authority by virtue of its functions under zones regulations.

(5) Zones regulations may make provision enabling or requiring the Authority to provide information specified by the regulations from its records to—

(a) zone coordinators;

(b) the Regulator.

(6) Zones regulations may make provision—

(a) for the disclosure of information by a zone coordinator or the Authority in accordance with regulations made by virtue of subsection (3) or (5) not to breach any obligation of confidence owed by the zone coordinator or the Authority or any other restriction on the disclosure of information (however imposed);

(b) for regulations made by virtue of subsection (3) or (5) not to authorise or require disclosure of information if disclosure would contravene the data protection legislation (but for a power conferred, or requirement imposed, by regulations made by virtue of subsection (3) or (5) to be taken into account in determining whether a disclosure would do so).

Interpretation

Interpretation of Chapter 2

237

In this Chapter—

“the Authority” means the person designated as the Heat Network Zones Authority by regulations made by virtue of section 227 (1);

“the data protection legislation” has the same meaning as in the Data Protection Act 2018 (see section 3 of that Act);

“district heat network” has the meaning given by section 216 (2);

“heat network” has the meaning given by section 216 (2);

“heat network zone” has the meaning given by section 226 (2);

“the Regulator” has the meaning given by section 217 (1)(a);

“zone coordinator” means a person designated as such under regulations made by virtue of section 228 (3)(a);

“zones regulations” means regulations under section 226;

“the zoning methodology” has the meaning given by section 230 (1).

Part 9 — Energy smart appliances and load control

Chapter 1 — Introductory

Energy smart appliances and load control

238

(1) The following definitions apply for the purposes of this Part.

(2) “Energy smart appliance” means an appliance which is capable of adjusting the immediate or future flow of electricity into or out of itself or another appliance in response to a load control signal; and includes any software or other systems which enable or facilitate the adjustment to be made in response to the signal.

(3) The functionality described in subsection (2) is referred to as the “energy smart function”.

(4) “Load control signal” means a digital communication sent via a relevant electronic communications network to an energy smart appliance for the purpose of causing or otherwise facilitating such an adjustment.

(5) For the purposes of subsection (2) an adjustment to the flow of electricity into or out of an appliance is made in response to a load control signal whether it is made in response to—

(a) the sending of the signal, or

(b) the sending of the signal and one or more additional factors.

(6) The sending of a load control signal to an energy smart appliance is referred to as “load control”.

(7) Regulations under section 239, excluding regulations under section 239 (6), are referred to as “energy smart regulations”.

Chapter 2 — Energy smart appliances

Energy smart regulations

239

(1) The Secretary of State may by regulations make provision about energy smart appliances that are—

(a) capable of being used in connection with any of the purposes specified in subsection (2), or

(b) charge points (for electric vehicles).

(2) The specified purposes are—

(a) refrigeration;

(b) cleaning tableware;

(d) storing energy that—

(i) was converted from electricity, and

(ii) is stored for the purpose of its future reconversion into electricity;

(e) heating;

(f) air conditioning or ventilation.

(3) In making such regulations, the Secretary of State must, in particular, have regard to the desirability of ensuring that—

(a) the energy smart function or compatibility with that function is incorporated into appliances in a manner that is compliant with the regulations,

(b) the energy smart function does not undermine the delivery of a consistent and stable supply of electricity,

(c) the energy smart function in any energy smart appliance is capable of operating in response to load control signals from any person carrying out load control, and

(d) communications, software, systems and personal and other data used in connection with energy smart appliances are secure or otherwise protected, for purposes including the protection of end-users.

(4) Such regulations may, in particular—

(a) make provision about all energy smart appliances or any description of energy smart appliances;

(b) impose technical or other requirements in relation to such appliances, including requirements to display or otherwise provide information about appliances;

(c) prohibit the placing on the market of, or other activities in connection with, relevant appliances (see section 240 (3));

(d) make provision about the recall of appliances to prevent, or in response to, non-compliance with the regulations;

(e) make provision for the Secretary of State to issue guidance about prohibitions or requirements imposed by or under the regulations;

(f) provide for the enforcement of the regulations.

(5) Such regulations may impose prohibitions or requirements on any person, including any person making, supplying, importing or distributing energy smart appliances or carrying out load control (but see section 240 (6)).

(6) The Secretary of State may by regulations—

(a) make provision about the meaning that “relevant electronic communications network” is to have for the purposes of this Part;

(b) amend the list of purposes in subsection (2).

(7) In this Chapter, “charge point” has the same meaning as in Part 2 of the Automated and Electric Vehicles Act 2018 (see section 9 of that Act).

Prohibitions and requirements: supplemental

240

(1) Requirements imposed by energy smart regulations may, in particular, refer or relate to—

(a) published documents and standards (as they have effect from time to time);

(b) a list, published by the Secretary of State, of such documents and standards;

(2) Prohibitions imposed by energy smart regulations may, in particular, relate to—

(a) the providing of load control for appliances that are not compliant with the regulations;

(b) the modification of appliances in a manner that would cause them to cease to be compliant with the regulations.

(3) The following kinds of appliances are “relevant appliances” for the purposes of section 239 (4)(c)—

(a) energy smart appliances that are not compliant with requirements or particular requirements of energy smart regulations;

(b) appliances without the energy smart function, or that are not compatible with the energy smart function of another appliance, and are—

(i) charge points (for electric vehicles), or

(ii) electrical heating appliances.

(4) The reference in subsection (3)(b)(ii) to electrical heating appliances includes a reference to heat pumps.

(5) In this Chapter, “modification of appliances” has the meaning given by energy smart regulations.

(6) Energy smart regulations may not provide for a prohibition to be contravened by an end-user of an appliance (in their capacity as such) or for such a person to be enforced against as described in section 241 or 242.

Enforcement

241

(1) Provision for the enforcement of energy smart regulations may, in particular, include provision of a kind described in this section, section 242 or section 243.

(2) Energy smart regulations may include provision to ensure compliance with any prohibition or requirement imposed by or under the regulations, including provision—

(a) designating authorities to carry out enforcement (referred to in this Chapter as “enforcement authorities”);

(b) requiring persons to—

(i) maintain information;

(ii) monitor compliance and report non-compliance;

(iii) take specified steps to remedy non-compliance;

(d) conferring powers of entry, including by reasonable force;

(e) conferring powers of inspection, search and seizure;

(f) conferring powers to require the production of information or things held at, or electronically accessible from, entered premises;

(g) conferring powers to enable the testing of energy smart appliances by enforcement authorities, including powers to require the provision of sample appliances and powers to make test purchases;

(h) conferring functions, including functions involving the exercise of a discretion.

(3) Regulations conferring powers described in subsection (2)(d), (e) or (f) must provide that persons exercising those powers are to produce evidence of their authority if required to do so.

(4) The regulations may not allow entry to premises by reasonable force without a warrant issued by a justice of the peace or, in Scotland, a sheriff or summary sheriff.

(5) Energy smart regulations may allow enforcement authorities to impose requirements by written notice on persons to—

(a) produce information or things;

(b) make appliances compliant with energy smart regulations;

(i) the placing on the market of, or other activities in connection with, appliances,

(ii) the providing of load control to appliances, or

(iii) the modification of appliances,

for the purpose of preventing or mitigating non-compliance with energy smart regulations;

(d) recall appliances to prevent, or in response to, non-compliance with energy smart regulations.

(6) Regulations that allow an enforcement authority to impose requirements may also provide for—

(a) the authority to apply to a court or tribunal in connection with a failure to comply with a requirement, and

(b) the court or tribunal, if satisfied that such a failure has occurred, to make an order for the purpose of securing compliance with the requirement.

(7) Such an order may require a person to take, or refrain from taking, steps specified in the order (including at, by or until specified times).

(8) Energy smart regulations may make provision to enable an enforcement authority to accept an enforcement undertaking from a person where the authority has reasonable grounds to suspect that the person has failed to comply with any prohibition or requirement imposed by or under the regulations.

(9) An “enforcement undertaking” is an undertaking to take such action to secure compliance with the regulations as may be specified in the undertaking within such period as may be so specified.

(10) Provision made by virtue of subsection (8) must include provision that unless the person from whom the undertaking was accepted has failed to comply with the undertaking or any part of it—

(a) that person may not at any time be convicted of an offence in respect of the act or omission to which the undertaking relates, and

(b) the enforcement authority may not impose on that person any penalty which it would otherwise have power to impose under the regulations in respect of that act or omission.

(11) Provision made by virtue of subsection (8) may include any provision of a kind mentioned in section 50(5) of the Regulatory Enforcement and Sanctions Act 2008.

(12) The Secretary of State may make payments or provide other resources to, or in respect of, enforcement authorities in connection with the exercise of functions under energy smart regulations.

(13) Energy smart regulations may provide for an enforcement authority to issue guidance about the enforcement of the regulations and the exercise by the authority of its functions under the regulations.

Sanctions, offences and recovery of costs

242

(1) Energy smart regulations may provide for sanctions to be imposed on persons in relation to—

(a) non-compliance with a prohibition or requirement imposed by or under such regulations;

(b) providing false or misleading information in relation to any such prohibition or requirement.

(2) The regulations may, in particular, provide for the imposition of civil penalties, including graduated or multiple penalties in connection with a continuous or serious act or omission.

(3) Energy smart regulations may create offences relating to—

(a) contraventions (by act or omission) of requirements imposed by enforcement authorities;

(b) knowingly giving false or misleading information to enforcement authorities;

(d) the impersonation of persons acting on behalf of enforcement authorities.

(4) Regulations which create an offence must provide for the offence to be triable only summarily.

(5) Regulations may not provide for an offence to be punishable with imprisonment.

(6) Regulations may provide for enforcement authorities to recover costs.

Appeals against enforcement action

243

(1) Energy smart regulations that provide for the imposition of a requirement or civil penalty by an enforcement authority must include provision for a right of appeal to a court or tribunal against that requirement or penalty.

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

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

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

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

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

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

(3) In relation to the imposition of a requirement, the regulations may provide for persons other than the person against whom the requirement was imposed to also have a right of appeal.

(4) The provision referred to in subsection (2)(e) includes provision conferring on the court or tribunal to which an appeal is made power—

(a) to confirm or withdraw the requirement or penalty;

(b) to vary or remove a part of the requirement;

(d) to award costs or, in Scotland, expenses.

(5) If the Secretary of State considers it appropriate for the purpose of, or in consequence of, any provision falling within subsection (2)(a), (c), (e) or (f), the regulations may revoke or amend any subordinate legislation.

(6) In this section “subordinate legislation” has the meaning given in section 21(1) of the Interpretation Act 1978 and includes an instrument made under—

(a) an Act of the Scottish Parliament;

(b) a Measure or Act of the Senedd Cymru.

Regulations: procedure and supplemental

244

(1) Regulations under section 239 may provide for exemptions or exceptions.

(2) Energy smart regulations may make provision about the sharing of information between an enforcement authority and the GEMA for the purposes of their functions in relation to energy smart appliances and load control.

(3) The Secretary of State must consult such persons as the Secretary of State thinks fit before making regulations under section 239 that—

(a) make a description of appliance subject to energy smart regulations;

(b) amend the list of purposes in section 239 (2).

(4) Subsection (3) may be satisfied by consultation before, as well as by consultation after, the passing of this Act.

(5) The first energy smart regulations, and any regulations under section 239 that (with or without other provision) amend the list of purposes in section 239 (2) or create a criminal offence (see section 242), are subject to the affirmative procedure.

(6) Energy smart regulations that are not within subsection (5) are subject to the made affirmative procedure if they—

(a) are the first energy smart regulations to make provision about a particular description of energy smart appliance,

(b) make provision by virtue of section 239 (4)(b) imposing requirements of a kind not previously imposed by energy smart regulations,

(c) make provision by virtue of section 240 (1)(a) or (b) by reference or in relation to a published document, standard or list (as the case may be) in respect of which such provision has not previously been made,

(d) confer new powers for the enforcement of energy smart regulations, or

(e) make provision by virtue of section 242 (2) for the imposition of new civil penalties.

(7) A revised version of a published document, standard or list is to be disregarded for the purposes of subsection (6)(c) if provision has previously been made in respect of the document, standard or list by virtue of section 240 (1)(a) or (b) (as the case may be).

(8) Any other regulations under section 239 are subject to the negative procedure.

Chapter 3 — Licensing of load control

Power to amend licence conditions etc: load control

245

(1) The Secretary of State may modify—

(a) the conditions of a licence granted under section 6(1) of the Electricity Act 1989;

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

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

(e) a document maintained in accordance with the conditions of a licence granted under section 6(1) of the Electricity Act 1989 or section 7A(1) or 7AB of the Gas Act 1986, or an agreement that gives effect to a document so maintained.

(2) The Secretary of State may exercise the power conferred by subsection (1) for the purposes of facilitating, promoting, ensuring the security of, or otherwise regulating load control or other activities falling within section 56FBA(2) of the Electricity Act 1989.

(3) Modifications made to the conditions of a licence may include provisions of a kind mentioned in section 7 of the Electricity Act 1989 or section 7B of the Gas Act 1986 (as appropriate) and may in particular—

(a) regulate or prohibit the provision of load control in relation to appliances that are not compliant with energy smart regulations or any technical standards specified in or under a condition;

(b) regulate the provision of load control in relation to appliances that are compliant with energy smart regulations or any technical standards specified in or under a condition;

(c) require the holder of a licence to supply information to the Secretary of State or the GEMA (or both) so as to enable them to assess any matter relating to the purposes mentioned in subsection (2);

(d) require the holder of the licence to enter (or refrain from entering) into an agreement of a specified kind, or with a specified person;

(e) require the holder of a licence to supply information about tariffs (including to such persons, and in such a format, specified in or under a condition).

(4) The power conferred by subsection (1)—

(a) may be exercised to make different provision in relation to different areas or different classes of customer;

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

(d) includes a power to make incidental, supplementary, consequential or transitional modifications.

(5) The power conferred by subsection (1) may not be exercised after the period of 10 years beginning with the day on which this section comes into force.

(6) The Secretary of State may, by regulations, extend (or further extend) that period.

(7) Regulations under subsection (6)—

(a) may not extend the period (or any extended period) by more than three years at a time, and

(b) are subject to the affirmative procedure.

(8) In this section “modify” includes remove or fail to incorporate and “modification” is to be construed accordingly.

Power to amend licence conditions etc: procedure

246

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

(a) the holder of any licence being modified,

(b) the GEMA, and

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

(3) The Secretary of State must specify the date upon which any modification is to have effect.

(4) The Secretary of State must publish details of any modifications as soon as reasonably practicable after they are made.

(5) In this section “modification” means a modification under section 245.

Load control: supplemental

247

(1) A modification under section 245 of part of a standard condition of a licence does not prevent any other part of the condition from continuing to be regarded as a standard condition for the purposes of Part 1 of the Gas Act 1986 or Part 1 of the Electricity Act 1989.

(2) Where the Secretary of State makes modifications under section 245 (1)(b) or (e) of the standard conditions of a licence of any type, the GEMA must—

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

(b) publish the modification.

Application of general duties to functions relating to load control

248

(1) Sections 4AA to 4B of the Gas Act 1986 (principal objectives and general duties) apply to the carrying out, as respects the matters mentioned in subsection (2), of functions conferred on the Secretary of State or the GEMA by or under sections 245 to 247.

(2) The matters are—

(a) activities required to be authorised by gas licences,

(b) such licences and the conditions of such licences,

(c) documents maintained in accordance with the conditions of such licences, or agreements that give effect to documents so maintained, and

(d) companies holding such licences.

(3) In section 4AA(2)(b) of the Gas Act 1986 (duty to have regard to ability of licence holders to finance obligations) for “or sections 26 to 29 of the Energy Act 2010” substitute “, sections 26 to 29 of the Energy Act 2010, or sections 245 to 247 of the Energy Act 2023”.

(4) Sections 3A to 3D of the Electricity Act 1989 (principal objectives and general duties) apply to the carrying out, as respects the matters mentioned in subsection (5), of functions conferred on the Secretary of State or the GEMA by or under sections 245 to 247.

(5) The matters are—

(a) activities required to be authorised by electricity licences,

(b) such licences and the conditions of such licences,

(c) documents maintained in accordance with the conditions of such licences, or agreements that give effect to documents so maintained, and

(d) companies holding such licences.

(6) In section 3A(2)(b) of the Electricity Act 1989 (duty to have regard to ability of licence holders to finance obligations) for “or the Nuclear Energy (Financing) Act 2022” substitute “, the Nuclear Energy (Financing) Act 2022 or sections 245 to 247 of the Energy Act 2023”.

(7) In section 33(1) of the Utilities Act 2000 (standard conditions of electricity licences)—

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

(b) after paragraph (j) insert

or, (k) under sections 245 to 247 of the Energy Act 2023.

(8) In this section—

“electricity licence” means a licence for the purposes of section 4 of the Electricity Act 1989 (prohibition on unlicensed activities);

“gas licence” means a licence for the purposes of section 5 of the Gas Act 1986 (prohibition on unlicensed activities).

Licensing of activities relating to load control

249

Schedule 19, which amends the Electricity Act 1989, provides for the licensing of load control.

Part 10 — Energy performance of premises

Power to make energy performance regulations

250

(1) The appropriate authority may make regulations for any of these purposes—

(a) enabling or requiring the energy usage or energy efficiency of premises to be assessed, certified and publicised;

(b) enabling or requiring possible improvements in the energy usage or energy efficiency of premises to be identified and recommended;

(c) restricting or prohibiting the marketing and disposal of premises on the basis of whether their energy usage or energy efficiency has been assessed, certified or publicised.

(2) In this Part regulations under this section are referred to as “energy performance regulations”.

(3) Energy performance regulations may—

(a) provide for—

(i) the regulations to apply to specified descriptions of premises, or

(ii) specified descriptions of premises to be excluded from the application of the regulations;

(b) confer functions on any person;

(c) provide for functions to be exercisable only if specified conditions are met (including conditions as to the eligibility of persons to exercise the functions);

(d) provide for the energy usage or energy efficiency of premises to be assessed or certified by reference to information that is obtained, produced or kept otherwise than under energy performance regulations;

(e) impose requirements on any person;

(f) make provision for the purpose of securing compliance with requirements imposed by or under energy performance regulations (see section 252);

(g) authorise or require, or restrict or prohibit, the supply or keeping of information (including authorising or requiring supply or keeping of information that would otherwise be prohibited);

(h) provide for the charging of fees.

(4) A reference in this Part to publicising the energy usage and energy efficiency of premises includes—

(a) displaying energy performance information in the premises to which it relates;

(b) arranging for energy performance information to be entered into a record of such information (including a record that is publicly accessible);

(d) supplying energy performance information.

(5) In this Part—

“the appropriate authority” means— in relation to England and Wales, the Secretary of State; in relation to Scotland, the Scottish Ministers; in relation to Northern Ireland, the Department;

“certified” means certified in accordance with energy performance regulations;

“the Department” means the Department of Finance in Northern Ireland;

“disposal of premises” includes leasing or letting of premises;

“energy performance information” means information about the energy usage or energy efficiency of premises;

“premises” means— a building or a part of a building (including any equipment, systems or facilities used by the building or the part), or any equipment, systems or facilities used by a building or a part of a building;

“specified” means specified in energy performance regulations.

Energy performance regulations relating to new premises

251

(1) The power to make energy performance regulations is exercisable in relation to new premises.

(2) Accordingly, in section 250 (except in the definition of “premises” in section 250 (5))—

(a) a reference to premises includes new premises;

(b) a reference to the energy usage and energy efficiency of premises includes the anticipated energy usage and energy efficiency of new premises.

(3) In this section “new premises” means premises—

(a) which are being constructed or adapted, or

(b) which it is proposed to construct or adapt.

Sanctions

252

(1) The enforcement provision that may be made includes provision—

(a) for a person with public functions to enforce a requirement imposed by or under energy performance regulations;

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

(d) about the sanctions for obstruction of, or impersonation of, an enforcement authority or a person acting for an enforcement authority.

(2) Energy performance regulations may provide for the imposition of civil penalties by enforcement authorities in relation to cases falling within subsection (1)(b), (c) or (d); but the regulations may not provide for a civil penalty that exceeds £15,000.

(3) Energy performance regulations may provide for the creation of criminal offences in relation to cases falling within subsection (1)(b), (c) or (d); but the regulations may not provide for a criminal offence to be punishable—

(a) with imprisonment for a term exceeding 12 months, or

(b) with a fine of more than level 5 on the standard scale.

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

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

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

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

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

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

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

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

(a) to confirm the penalty;

(b) to withdraw the penalty;

(d) to award costs.

(7) The appropriate authority may, by regulations, amend the amount specified in subsection (2) for the purpose of reflecting inflation.

(8) In this section—

“enforcement authority” means a person on whom energy performance regulations confer the function of enforcing any requirement imposed by or under energy performance regulations;

“enforcement provision” means provision falling within section 250 (3)(f).

Regulations under Part 10

253

(1) Regulations under this Part may amend, repeal or revoke provision made by or under primary legislation.

(2) Regulations under this Part containing provision within subsection (3) (with or without other provision)—

(a) if made by the Secretary of State, are subject to the affirmative procedure (see section 332);

(b) if made by the Scottish Ministers, are subject to the affirmative procedure (see section 29 of the Interpretation and Legislative Reform (Scotland) Act 2010 (asp 10));

(c) if made by the Department, may not be made unless a draft of the regulations has been laid before and approved by a resolution of the Northern Ireland Assembly.

(3) The provision within this subsection is—

(a) provision creating a criminal offence or civil penalty (but excluding provision modifying the circumstances in which a person is guilty of an existing offence or liable for an existing civil penalty);

(b) provision specifying a civil penalty amount (but excluding provision made by virtue of section 252 (7) (inflation-related adjustments));

(4) Any other regulations under this Part—

(a) if made by the Secretary of State, are subject to the negative procedure (see section 332);

(b) if made by the Scottish Ministers, are subject to the negative procedure (see section 28 of the Interpretation and Legislative Reform (Scotland) Act 2010 (asp 10));

(c) if made by the Department, are subject to negative resolution within the meaning given by section 41(6) of the Interpretation Act (Northern Ireland) 1954 (c. 33 (N.I.)).

(5) Regulations under this Part—

(a) may make provision about application to the Crown; and

(b) may also, to the extent that they bind the Crown, restrict or modify the application of the regulations.

(6) A power of the Department to make regulations under this Part is exercisable by statutory rule for the purposes of the Statutory Rules (Northern Ireland) Order 1979 (S.I. 1979/1573 (N.I. 12)).

(7) In this section “primary legislation” means—

(a) an Act of Parliament,

(b) an Act of the Scottish Parliament,

(d) Northern Ireland legislation.

Part 11 — Energy Savings Opportunity Schemes

Establishment and application of schemes

Energy savings opportunity schemes

254

(1) The Secretary of State may by regulations (“ESOS regulations”) make provision for the establishment and operation of one or more energy savings opportunity schemes.

(2) An “energy savings opportunity scheme” is a scheme under which obligations are imposed on undertakings to which the scheme applies for one or more of the ESOS purposes.

(3) The ESOS purposes are—

(a) enabling or requiring the energy consumption for which an undertaking is responsible, or the greenhouse gas emissions resulting from that consumption, to be assessed, audited, reported and published;

(b) enabling or requiring possible energy savings or emissions reductions to be identified and recommended;

(d) encouraging or requiring undertakings to produce plans or set targets for achieving energy savings or emissions reductions;

(e) encouraging or requiring undertakings to take action for the purpose of achieving energy savings or emissions reductions;

(f) encouraging or requiring undertakings to achieve energy savings or emissions reductions.

(4) An energy saving is a reduction in the energy consumption for which an undertaking is responsible.

(5) An emissions reduction is a reduction in the greenhouse gas emissions that result from the energy consumption for which an undertaking is responsible (whether or not that consumption is also reduced).

(6) ESOS regulations may make provision about determining—

(a) the energy consumption for which an undertaking is responsible;

(b) the greenhouse gas emissions resulting from that consumption.

(7) ESOS regulations may—

(a) impose requirements on any person;

(b) confer functions on any person;

(8) The provision made by this Part is without prejudice to the generality of subsection (1).

(9) For the purposes of this Part—

(a) the scheme established by the Energy Savings Opportunity Scheme Regulations 2014 (S.I. 2014/1643) is to be treated as having been established by provision made under subsection (1);

(b) a reference to a scheme administrator includes a reference to a compliance body within the meaning given by those Regulations.

Application of energy savings opportunity schemes

255

(1) ESOS regulations may provide for—

(a) an energy savings opportunity scheme to apply to specified descriptions of undertakings;

(b) specified descriptions of undertakings to be excluded from the application of the scheme.

(2) ESOS regulations may make provision about circumstances in which—

(a) two or more participants are to be treated for the purposes of the regulations as if they were a single participant;

(b) an obligation imposed under the regulations on one participant is to be treated as if it had been imposed on a different participant.

(3) The provisions of this Part relating to energy consumption apply to energy consumed by assets located, or activities carried on—

(a) wholly or partly in the United Kingdom;

(b) wholly or partly in an offshore area;

(4) ESOS regulations may make provision about circumstances in which the energy consumption for which a participant is, for the purposes of the regulations, responsible may include energy consumed by—

(a) assets located elsewhere than in the United Kingdom or an offshore area, or

(b) activities carried on elsewhere than in the United Kingdom or an offshore area.

(5) The provisions of this Part relating to greenhouse gas emissions apply to the emissions resulting from energy consumption to which this Part applies whether such emissions occur in the United Kingdom, in an offshore area or elsewhere.

(6) ESOS regulations may make provision about the attribution of energy consumption to participants, including in particular provision about the treatment for the purposes of the regulations of—

(a) a participant’s consumption of energy generated by that participant;

(b) energy consumption by a person over whom a participant has control or influence;

(d) energy consumed by assets held on trust by or for a participant.

(7) In this section, “offshore area” means—

(a) waters landward of the seaward limit of the territorial sea adjacent to the United Kingdom,

(b) any designated area within the meaning of section 1(7) of the Continental Shelf Act 1964, and

and includes the places above those areas and the bed and subsoil of the sea within those areas.

Assessments, energy savings and emissions reductions

Requirement for assessment of energy consumption

256

(1) ESOS regulations may require the carrying out of assessments of—

(a) a participant’s energy consumption;

(b) the greenhouse gas emissions resulting from that consumption.

Such an assessment is referred to as an “ESOS assessment”.

(2) The provision that may be made by virtue of subsection (1) includes in particular provision about—

(a) the frequency of ESOS assessments;

(b) the period or periods to which assessments must relate;

(d) the information that must be provided or obtained for the purposes of an assessment;

(e) the matters that must be taken into account in an assessment;

(f) record-keeping in relation to an assessment.

(3) ESOS regulations may make provision requiring an ESOS assessment, or specified parts of an ESOS assessment, to be carried out, approved or audited by a person appointed by a participant (referred to as “an assessor”).

(4) Regulations made by virtue of subsection (1) may include provision enabling or requiring an ESOS assessment to include recommendations relating to energy savings or emissions reductions.

(5) The provision that may be made by virtue of subsection (4) includes in particular provision about—

(a) the matters about which recommendations may, must, or must not be made;

(b) the matters that must be taken into account in making a recommendation;

(6) “Cost-benefit analysis”, in relation to a recommendation or requirement to take action, means—

(a) an estimate of the likely costs to a participant of acting in accordance with the recommendation or requirement;

(b) an estimate of the energy savings or emissions reductions likely to result from such action;

(c) an analysis of the costs referred to in paragraph (a) together with an analysis of the savings or reductions referred to in paragraph (b) and of any other benefits likely to arise.

(7) ESOS regulations may make provision about the reporting of ESOS assessments, including in particular provision—

(a) about the production of written reports;

(b) about the form and content of such reports;

(8) ESOS regulations may make provision requiring a participant to notify a scheme administrator of specified matters relating to the participant’s compliance with requirements imposed by virtue of this section and may in particular include provision—

(a) about the procedure for giving such notice;

(b) about the form and content of notices;

(d) requiring a participant to justify its choice of assessor.

(9) ESOS regulations may provide for any requirement imposed by virtue of subsection (1)—

(a) to be treated as having been complied with by a participant in specified circumstances, or

(b) not to apply to a participant in specified circumstances.

Assessors

257

(1) ESOS regulations may confer functions on an assessor in relation to assessing, monitoring and reporting on compliance with requirements imposed by the regulations.

(2) ESOS regulations may provide that a participant may only appoint as an assessor a person of a specified description.

(3) A description may be specified for the purposes of subsection (2) by reference to any criteria, including by reference to—

(a) a person’s competence, qualifications or experience;

(b) a person’s inclusion in a designated list or register;

(d) a person’s participation in a designated accreditation scheme;

(e) a person’s relationship to a participant.

(4) For the purposes of this section, “designated” means designated by the Secretary of State or a scheme administrator in accordance with ESOS regulations.

(5) A body may only be designated for the purposes of this section if the body is willing to be so designated.

(6) ESOS regulations may make provision about—

(a) the giving of designations for the purposes of subsection (4);

(b) reviewing such designations;

(d) maintaining and publishing a list of such designations.

(7) ESOS regulations may make provision enabling a list or register of persons who may, or who may not, be appointed as an assessor for the purposes of subsection (2) to be maintained by—

(a) a designated body;

(b) a scheme administrator;

(8) ESOS regulations may confer functions or impose requirements on a person responsible for maintaining a designated list or register and may in particular include provision—

(a) about the process for including a person in a list or register;

(b) about the details to be included in a list or register;

(d) about the publication of a list or register;

(e) for the purpose of ensuring that a person included in a list or register continues to meet the criteria for appointment as an assessor;

(f) for the purpose of ensuring the quality of ESOS assessments;

(g) about the temporary or permanent removal of a person from a list or register in specified circumstances.

(9) The regulations may make provision authorising a scheme administrator to share reports, notices or other information relating to an energy savings opportunity scheme with a designated body for the purposes referred to in subsection (8)(e) or (f).

(10) ESOS regulations may make provision—

(a) enabling the Secretary of State or a scheme administrator to give a direction relating to the maintenance of a list or register;

(b) requiring a person responsible for maintaining a list or register to comply with such a direction.

ESOS action plans

258

(1) ESOS regulations may require participants to produce ESOS action plans.

(2) An “ESOS action plan” is a written statement of—

(a) any action a participant proposes to take for the purpose of achieving energy savings or emissions reductions;

(b) any energy savings or emissions reductions targets a participant intends to achieve.

(3) Where an ESOS action plan does not include any proposals for taking such action or any such targets, provision made by virtue of subsection (1) may require that a participant include an explanation in the plan.

(4) ESOS regulations may make provision about the production of ESOS action plans, including in particular provision about—

(a) when a participant must produce a plan;

(b) the period to which a plan must relate;

(d) the matters that must be taken into account in producing a plan.

(5) ESOS regulations may make provision about the publication of ESOS action plans.

Action to achieve energy savings or emissions reductions

259

(1) ESOS regulations may make provision—

(a) imposing requirements (other than the requirements referred to in paragraph (b)) on participants so as to encourage them to—

(i) take specified action for the purpose of achieving energy savings or emissions reductions, or

(ii) achieve specified energy savings or emissions reductions, or

(b) requiring participants to—

(i) take specified action for the purpose of achieving energy savings or emissions reductions, or

(ii) achieve specified energy savings or emissions reductions.

(2) The kinds of action that may be specified for the purposes of subsection (1) are—

(a) taking action in accordance with a recommendation made in an ESOS assessment;

(b) taking action in accordance with an ESOS action plan;

(d) taking action to achieve a target included in an ESOS action plan;

(e) taking action to achieve any other specified outcome;

(f) adopting processes, practices or systems of a specified kind;

(g) conforming to specified standards.

(3) The provision that may be made by virtue of subsection (1)(a) includes in particular—

(a) provision requiring a participant to report—

(i) on whether the participant has taken the specified action, or on the steps taken by the participant towards doing so, or

(ii) on whether the participant has achieved the specified energy savings or emissions reductions, or on the progress made by the participant towards doing so;

(b) provision requiring a participant to provide an explanation for any of the matters mentioned in paragraph (a).

(4) Provision made by virtue of subsection (1)(b) may include a requirement for a participant to report on action taken or energy savings or emissions reductions achieved.

(5) Regulations made by virtue of subsection (1) may make provision—

(a) requiring participants to produce and retain evidence;

(b) about the verification of matters about which the participant has reported;

(6) ESOS regulations may—

(a) specify the requirements imposed on a participant by virtue of subsection (1) by reference to a cost-benefit analysis;

(b) specify circumstances in which a participant is required to take action;

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