Be it enacted by the Queen’s most Excellent Majesty, by and with the advice and consent of the Lords Spiritual and Temporal, and Commons, in this present Parliament assembled, and by the authority of the same, as follows:—
New regulatory arrangements
There shall be a body corporate to be known as the Gas and Electricity Markets Authority (in this Act referred to as “the Authority”) for the purpose of carrying out—
functions transferred to the Authority from the Director General of Gas Supply and the Director General of Electricity Supply; and
the other functions of the Authority under this Act.
The functions of the Authority are performed on behalf of the Crown.
The offices of Director General of Gas Supply and Director General of Electricity Supply are abolished.
Schedule 1 has effect with respect to the Authority.
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
The functions of the Director General of Gas Supply and the Director General of Electricity Supply (“the Directors”) are transferred to the Authority.
Any enactment which—shall have effect after the transfer, so far as necessary for the purposes of or in consequence of the transfer, as if references to the Director were references to the Authority.
relates to a function of either of the Directors; and
is in force immediately before the transfer by subsection (1) of that function,
The Secretary of State may make one or more schemes (“transfer schemes”) for the transfer of the property, rights and liabilities of the Directors to the Authority ....
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
On the day appointed by a transfer scheme, the property, rights and liabilities which are the subject of the scheme shall, by virtue of this subsection, be transferred in accordance with the provisions of the scheme.
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Subsection (6) has effect in relation to property, rights or liabilities to which it applies in spite of any provision (of whatever nature) which would prevent or restrict the transfer of the property, rights or liabilities otherwise than by that subsection.
Schedule 3 has effect in relation to transfer schemes and transfers by any provision of this Act of functions, property, rights and liabilities to the Authority ....
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
The Authority must ensure that members of its staff do not—
seek or take any instructions that might compromise, or might reasonably be seen to compromise, the Authority’s independence in relation to its designated regulatory functions; or
carry out any other activity, or have any financial or other interest, that might compromise, or might reasonably be seen to compromise, the impartiality of those members of staff.
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
The Authority ... shall, before each financial year, ... publish a document (the “forward work programme”) containing a general description of the projects, other than those comprising routine activities in the exercise of its functions, which it plans to undertake during the year.
That description must include the objectives of each project.
The forward work programme for any year shall also include an estimate of the overall expenditure which the Authority ... expects to incur during the year in the exercise of its functions.
Before publishing the forward work programme for any year, the Authority ... shall give notice—and shall consider any representations or objections which are duly made and not withdrawn.
containing a draft of the forward work programme, and
specifying the time within which representations or objections to the proposals contained in it may be made,
The notice under subsection (4) must be published by the Authority ... in such manner as it considers appropriate for the purpose of bringing the matters contained in it to the attention of persons likely to be affected by them.
The Authority must send a copy of any notice given by it under subsection (4) to Citizens Advice and Consumer Scotland.
In this section—
references to functions do not include functions under Part 1 of the Energy Act 2023, and
references to projects do not include projects with regard to the exercise of such functions.
As soon as reasonably practicable after the designation of a statement as the strategy and policy statement, the Authority must publish a document setting out the required information in relation to the statement.
The Authority must include the required information in relation to a strategy and policy statement in the forward work programme for each financial year, subject to making such modifications to the information as the Authority considers appropriate from the version as last published under this subsection.
The required information in relation to a strategy and policy statement to be set out in a document or forward work programme is—
the strategy the Authority intends to adopt for the purpose of furthering the delivery of the policy outcomes contained in the statement (both in respect of the year in or for which the document or programme is issued and beyond);
the things the Authority proposes to do in implementing that strategy (including when the Authority proposes to do them);
the ways in which the Authority has had regard to the strategic priorities contained in the statement in setting out the information required under paragraphs (a) and (b).
The duty under subsection (1) does not apply if—
the Authority does not think it reasonably practicable to publish the document mentioned in that subsection before the time when the Authority is next required to publish a forward work programme, and
the Authority includes the required information in that forward work programme.
The duty under subsection (2) does not apply in relation to the first financial year beginning after the designation of the statement if—
the Authority does not think it reasonably practicable to include the required information in the forward work programme for that year, and
the Authority includes the required information in a document published under subsection (1).
The duty under subsection (2) does not apply in relation to a financial year if the Secretary of State gives notice to the Authority under this subsection that the statement's designation—
will be withdrawn before the beginning of the year, or
is expected to have been withdrawn before the beginning of the year.
Subsections (4) to (6) of section 4 (notice requirements) apply to a document published under subsection (1) as they apply to a forward work programme.
In this section—“designation”, in relation to a strategy and policy statement, means designation of the statement by the Secretary of State under Part 5 of the Energy Act 2013;“forward work programme” has the meaning given by section 4(1);“policy outcomes”, “strategic priorities” and “strategy and policy statement” have the same meaning as in Part 5 of the Energy Act 2013.
The Authority shall, as soon as practicable after the end of each financial year, make to the Secretary of State a report (the “annual report” for that year) on—
its activities during that year, and
the activities of the Competition and Markets Authority during that year in respect of any references made by the Authority.
The annual report for each year shall include—
a general survey of developments in respect of matters falling within the scope of the Authority’s functions, including in particular developments in competition between persons engaged in, or in commercial activities connected with—
the shipping, transportation or supply of gas conveyed through pipes; ...
the generation, transmission, distribution or supply of electricity; or
the operation or maintenance of, or the supply of heating, cooling or hot water by means of, relevant heat networks (as defined in section 216 of the Energy Act 2023);
a report on the progress of the projects described in the forward work programme for that year;
a summary of final and provisional orders made and penalties imposed by the Authority during the year; ...
a summary of final notices given by the Authority under the Electricity and Gas (Market Integrity and Transparency) (Enforcement etc.) Regulations 2013; and
a report on such other matters as the Secretary of State may from time to time require.
The annual report for each year shall also include a report on—
the extent to which the Authority has done the things set out under section 4A in a forward work programme or other document as the things the Authority proposed to do during that year in implementing its strategy for furthering the delivery of the policy outcomes contained in the statement (see subsection (3)(b) of that section).
The report mentioned in subsection (2A) must, in particular, include—
the Authority's assessment of how the carrying out of its functions during the year has contributed to the delivery of the policy outcomes contained in the strategy and policy statement, and
if the Authority has failed to do any of the things mentioned in subsection (2A)(b), an explanation for the failure and the actions the Authority proposes to take to remedy it.
In subsections (2A) and (2B)—“forward work programme” has the meaning given by section 4(1);“policy outcomes” and “strategy and policy statement” have the same meaning as in Part 5 of the Energy Act 2013.
The annual report for each year shall set out any general directions given by the Secretary of State under section 34(3) of the 1986 Act or section 47(2) of the 1989 Act.
The annual report for each year must also include an overview of—
developments relating to documents designated for the purposes of Part 6 of the Energy Act 2023 (governance of gas and electricity industry codes);
decisions made by the Authority during the year in relation to such documents, including details of any modifications made under section 192 of the Energy Act 2023.
The Secretary of State shall consult the Authority before exercising the power under subsection (2)(d) in relation to any matter.
The Secretary of State shall—
lay a copy of each annual report before each House of Parliament; ...
send a copy of the report to the Scottish Ministers and the Welsh Ministers, and
arrange for the report to be published in such manner as he considers appropriate.
The Scottish Ministers shall lay a copy of each annual report before the Scottish Parliament.
The Welsh Ministers shall lay a copy of each annual report before the National Assembly for Wales.
The Authority may also prepare other reports with respect to any matter falling within the scope of its functions and may arrange for any such report to be published in such manner as it considers appropriate.
The Authority shall send a copy of each annual or other report published under this section to Citizens Advice and Consumer Scotland.
In making or preparing any report under this section the Authority shall have regard to the need for excluding, so far as that is practicable, any matter which relates to the affairs of a particular individual or body of persons (corporate or unincorporate), where publication of that matter would or might, in the opinion of the Authority, seriously and prejudicially affect the interests of that individual or body.
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
In this section—
references to functions of the Authority do not include functions under Part 1 of the Energy Act 2023;
references to activities of the Authority do not include activities in the exercise of such functions;
the reference in subsection (1) to “references made by the Authority” does not include references made by virtue of section 36(1) of the Energy Act 2023.
The Comptroller and Auditor General must send to the Authority, in respect of each of its accounting years, a copy of the certified accounts and report of the Authority no later than 15th January of the financial year following that to which the accounts relate.
The Authority must send to the Scottish Ministers and the Welsh Ministers, in respect of each of its accounting years, a copy of the certified accounts and report of the Authority no later than 31st January of the financial year following that to which the accounts relate.
The Authority must send to the Department for the Economy in Northern Ireland, in respect of each of its accounting years, a copy of the certified accounts and report of the Authority no later than 31 January of the financial year following that to which the accounts relate.
The Scottish Ministers must lay a copy of whatever is sent to them under subsection (2) before the Scottish Parliament.
The Welsh Ministers must lay a copy of whatever is sent to them under subsection (2) before the National Assembly for Wales.
The Department for the Economy in Northern Ireland must lay a copy of whatever is sent to it under subsection (2A) before the Northern Ireland Assembly.
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
This section applies where—but this section does not apply if it appears to the Authority that the urgency of the matter makes it impracticable or inappropriate for the Authority to comply with the requirements of this section.
the Authority is proposing to do anything for the purposes of, or in connection with, the carrying out of any function exercisable by it under or by virtue of Part 1 of the 1986 Act or Part 1 of the 1989 Act, Part 1 of the 1989 Act or Part 8 of the Energy Act 2023; and
it appears to it that the proposal is important;
A proposal is important for the purposes of this section only if its implementation would be likely to do one or more of the following—
involve a major change in the activities carried on by the Authority;
have a significant impact on persons engaged in the shipping, transportation or supply of gas conveyed through pipes or in the generation, transmission, distribution or supply of electricity or in the provision of smart meter communication services (in respect of electricity meters or gas meters);
have a significant impact on persons engaged in commercial activities connected with the shipping, transportation or supply of gas conveyed through pipes or with the generation, transmission, distribution or supply of electricity;
have a significant impact on the carrying out by the Independent System Operator and Planner (within the meaning of Part 5 of the Energy Act 2023) of any of its functions;
have a significant impact on the carrying out by a code manager (within the meaning of Part 6 of the Energy Act 2023) of its functions—
in relation to a designated gas licence document, or
in relation to a designated electricity licence document;
have a significant impact on persons engaged in—
the operation or maintenance of, or the supply of heating, cooling or hot water by means of, relevant heat networks (as defined in section 216 of the Energy Act 2023), or
commercial activities connected with an activity mentioned in sub-paragraph (i);
have a significant impact on the general public in Great Britain or in a part of Great Britain; or
have significant effects on the environment.
Before implementing its proposal, the Authority must either—
carry out and publish an assessment of the likely impact of implementing the proposal; or
publish a statement setting out its reasons for thinking that it is unnecessary for it to carry out an assessment.
An assessment carried out under this section must—
include an assessment of the likely effects on the environment of implementing the proposal; and
relate to such other matters as the Authority considers appropriate.
In determining the matters to which an assessment under this section should relate, the Authority must have regard to such general guidance relating to the carrying out of impact assessments as it considers appropriate.
An assessment carried out under this section may take such form as the Authority considers appropriate.
Where the Authority publishes an assessment under this section—
it must provide an opportunity of making representations to the Authority about its proposal to members of the public and other persons who, in the Authority’s opinion, are likely to be affected to a significant extent by the proposal’s implementation;
the published assessment must be accompanied by a statement setting out how representations may be made; and
the Authority must not implement its proposal unless the period for making representations about the proposal has expired and it has considered all the representations that were made in that period.
Where the Authority is required (apart from this section)—the requirements of this section are in addition to, but may be performed contemporaneously with, the other requirements.
to consult about a proposal to which this section applies, or
to give a person an opportunity of making representations about it,
Every report under section 5(1) must set out—
a list of the assessments under this section carried out during the financial year to which the report relates; and
a summary of the decisions taken during that year in relation to proposals to which assessments carried out in that year or previous financial years relate.
The publication of anything under this section must be in such manner as the Authority considers appropriate for bringing it to the attention of the persons who, in the Authority’s opinion, are likely to be affected if its proposal is implemented.
References in sections 4AA, 4AB and 4A of the 1986 Act to functions of the Authority under Part 1 of that Act include references to any functions of the Authority under this section that are exercisable in relation to a proposal to do anything for the purposes of, or in connection with, the carrying out of any function of the Authority under Part 1 of the 1986 Act.
References in sections 3A, 3B and 3C of the 1989 Act to functions of the Authority under Part 1 of that Act include references to any functions of the Authority under this section that are exercisable in relation to a proposal to do anything for the purposes of, or in connection with, the carrying out of any function of the Authority under Part 1 of the 1989 Act.
For section 35 of the 1986 Act (publication by Director of information and advice) there is substituted—
For subsections (1) and (2) of section 48 of the 1989 Act (publication by Director of information and advice) there is substituted—
After subsection (3) of that section there is inserted—
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
In this section “payment conditions” means—
in relation to a gas licence, conditions included in the licence by virtue of section 7B(4)(c) of the 1986 Act; or
in relation to an electricity licence, conditions included in the licence by virtue of section 7(1)(b) of the 1989 Act.
The payment conditions of a gas licence or an electricity licence may (without prejudice to the generality of the provisions mentioned in subsection (1)) require the payment by the licence holder of sums—
relating to any of the expenses mentioned in subsection (3) or (3A), or
relating to such amounts as the Secretary of State considers reasonable in respect of the provision, in or as regards Scotland, of consumer advocacy and advice by, or by agreement with, a public body or the holder of a public office, in relation to gas and electricity consumers
The expenses within this subsection are—
the expenses of the Gas and Electricity Consumer Council; and
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
The expenses within this subsection are—
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
the appropriate proportion of the expenses of Citizens Advice(including expenses relating to taking on functions transferred from the National Consumer Council but not including expenses within paragraph (ca));
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
the appropriate proportion of the expenses of Citizens Advice which relate to a transfer scheme made in respect of the National Consumer Council under section 23 of the Public Bodies Act 2011;
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
the expenses of the Secretary of State which relate to the abolition of the Gas and Electricity Consumer Council;
the appropriate proportion of the expenses of the Secretary of State which relate to the abolition of the National Consumer Council and the transfer of functions to Citizens Advice and Citizens Advice Scotland;
the appropriate proportion of the expenses of the Secretary of State which relate to the transfer of functions and the conferring of functions on Citizens Advice and Citizens Advice Scotland by the Public Bodies (Abolition of the National Consumer Council and Transfer of the Office of Fair Trading’s Functions in relation to Estate Agents etc) Order 2014 (S.I. 2014/…);
the appropriate proportion of the expenses of the Secretary of State which relate to a transfer scheme made in respect of the National Consumer Council under section 23 of the Public Bodies Act 2011;
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
the appropriate proportion of the expenses of Citizens Advice... on, or in connection with, the support of any qualifying public consumer advice scheme.
The “appropriate proportion” of any expenses means such proportion of the expenses as the Secretary of State considers is reasonable having regard to—
in the case of expenses within subsection (3A)(ba),... (ca)... or (db), the functions exercisable by Citizens Advice or Citizens Advice Scotland, as the case may be, in relation to gas and electricity consumers,...
in the case of expenses within subsection (3A)(da) or (dc), the functions exercised by the National Consumer Council in relation to gas and electricity consumers, and
in the case of expenses within subsection (3A)(f), the functions under the qualifying consumer advice scheme which are exercisable in relation to gas and electricity consumers.
A qualifying public consumer advice scheme is a scheme that is supported by Citizens Advice... in a manner that the Competition and Markets Authority is prohibited from using by section 8A of the Enterprise Act 2002.
The Authority may, in accordance with this section, modify any payment conditions of a gas licence or an electricity licence where the Authority considers it necessary or expedient to do so in consequence of, or of preparations for—
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
the abolition of the Gas and Electricity Consumer Council.
the abolition of the National Consumer Council, or
the conferring of functions which are exercisable in relation to gas and electricity consumers on Citizens Advice or Citizens Advice Scotland by the Public Bodies (Abolition of the National Consumer Council and Transfer of the Office of Fair Trading’s Functions in relation to Estate Agents etc) Order 2014 (S.I. 2014/...).
The Authority may, in accordance with this section, make such incidental or consequential modifications of—as it considers necessary or expedient in consequence of, or of preparations for, an event mentioned in subsection (4)(a) or (b).
the other conditions of a gas licence or an electricity licence, or
any code or agreement relevant to the conditions of such a licence,
Before modifying the conditions of a licence or any code or agreement under subsection (4) or (5) the Authority shall consult the licence holder.
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
The powers of the Authority under subsection (4) (as amended by paragraph 29 of Schedule 1 to the Consumers, Estate Agents and Redress Act 2007), and subsection (5) as it applies in relation to that subsection, may not be exercised after the end of the period of 2 years beginning with the commencement of that paragraph.
The Secretary of State may give directions to the Authority for the purpose of securing that sums relating to any of the expenses mentioned in subsection (3) or (3A) or to amounts mentioned in subsection (2)(b) are included in the sums payable by virtue of payment conditions in gas licences and electricity licences; and the Authority shall comply with any such direction.
For the purposes of this section—......“consumer” has the same meaning as in Part 1 of the Consumers, Estate Agents and Redress Act 2007 (see section 3 of that Act);“gas and electricity consumers” means consumers in relation to gas conveyed through pipes or electricity conveyed by distribution systems or transmission systems;“OFT scheme” means any public consumer advice scheme supported by the Office of Fair Trading.
Objectives of regulation of gas and electricity
Gas
For section 4 of the 1986 Act (general duties of Secretary of State and Director) there is substituted—
For section 4A of the 1986 Act (duties with respect to safety) there is substituted—
After section 4A of the 1986 Act there is inserted—
Electricity
For section 3 of the 1989 Act (general duties of Secretary of State and Director) there is substituted—
After section 3B of the 1989 Act (which is inserted by section 14 above) there is inserted—
After section 3C of the 1989 Act (which is inserted by section 15 above) there is inserted—
Functions of the Council
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
After section 41H of the 1986 Act (which is inserted by section 88 below) there is inserted—
Before section 57 of the 1989 Act (restriction on disclosure of information) there is inserted—
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
After section 33D of the 1986 Act there is inserted—
After section 42A of the 1989 Act there is inserted—
In consequence of this section, section 33C(4) and (5) of the 1986 Act and section 42(4) and (5) of the 1989 Act shall cease to have effect.
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Amendment of the Electricity Act 1989
Electricity licensing
Section 4 of the 1989 Act (prohibition on unlicensed supply etc. of electricity) is amended as follows.
In subsection (1), after paragraph (b) there is inserted—.
In subsection (4)—
before the definition of “supply” there is inserted—
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
For section 5 of the 1989 Act (exemptions from prohibition) there is substituted—
For section 6 of the 1989 Act there is substituted—
References in any enactment to public electricity suppliers shall have effect after the commencement of this section as if they were references to—according to the nature of the activities carried on by the persons to whom they referred before that time.
electricity suppliers;
electricity distributors; or
both electricity suppliers and electricity distributors,
References in any enactment to the supply of electricity shall have effect after the commencement of this section as if they were references to—according to the nature of the activities to which they referred before that time.
the supply of electricity;
the distribution of electricity; or
both the supply and distribution of electricity,
References in any enactment to holders of licences under section 6(2) of the 1989 Act shall have effect after the commencement of this section as if they were references to electricity suppliers.
Section 7 of the 1989 Act (conditions of licences) is amended as follows.
In subsection (2) for “a licence” there is substituted “ a transmission licence or distribution licence ”.
In subsection (3)—
for “Conditions included in a licence by virtue of subsection (1)(a) above” there is substituted “ Without prejudice to the generality of paragraph (a) of subsection (1), conditions included in a licence by virtue of that paragraph ”;
for “Director” (in each place it appears) there is substituted “ Authority or Secretary of State ”; and
in paragraph (c) after “licence” (in the first place it appears) there is inserted “ , or under any document referred to in the licence, ”.
After subsection (3) there is inserted—
For subsection (5) there is substituted—
After subsection (6) there is inserted—
In subsection (7) for “Secretary of State or the Director” there is substituted “ Authority ”.
Such conditions as may be determined by the Secretary of State before the relevant time, and published by him in such manner as he considers appropriate, in relation to any of the types of licence mentioned in section 6(1)(a), (c), (d) and (g) of the 1989 Act (that is to say, in relation to generation licences, ... distribution licences, supply licences or code manager licences) shall be standard conditions for the purposes of licences of that type, subject to any modifications of the standard conditions for the purposes of licences of that type made—
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
under Part 1 of the 1989 Act after the determination under this section,...
under the Energy Act 2004 ...
under section 7 of the Climate Change and Sustainable Energy Act 2006 (sale of electricity generated by microgeneration: power to modify distribution and supply licences etc) ,...
under the Energy Act 2010, ...
under Chapter 1 of Part 1... of the Energy Act 2011, ...
under the Energy Act 2013, ...
under section 6 of the Smart Meters Act 2018,
under the Nuclear Energy (Financing) Act 2022 , or
under or by virtue of section 21 of the Energy Prices Act 2022 ...,
under sections 169, 245 to 247 of, and paragraph 4 of Schedule 12 to, the Energy Act 2023, or
under section 14 of the Planning and Infrastructure Act 2025.
In subsection (1), “the relevant time” means—
where the determination relates to any of the types of licence mentioned in section 6(1)(a), (c) and (d) of the 1989 Act (generation licences, distribution licences or supply licences), the time when subsection (3) comes into force;
where the determination relates to the type of licence mentioned in section 6(1)(g) of the 1989 Act (code manager licences), 26th October 2030.
The standard conditions for the purposes of licences of any type may contain provision—
for any standard condition included in a licence of that type not to have effect until brought into operation in such manner and in such circumstances as may be specified in or determined under the standard conditions;
for the effect of any standard condition included in such a licence to be suspended in such manner, and in such circumstances, as may be so specified or determined; or
for any standard condition included in such a licence which is for the time being suspended to be brought back into operation in such manner and in such circumstances as may be so specified or determined.
After section 8 of the 1989 Act there is inserted—
In section 11 of the 1989 Act (modification of licence conditions by agreement), for subsection (1) there is substituted—
After subsection (4) of that section there is inserted—
After section 11 of the 1989 Act there is inserted—
Section 12 of the 1989 Act (licence modification references to the Competition Commission) is amended as follows.
For subsection (1) there is substituted—
In subsection (3)(b), for “conditions of the licence” there is substituted “ relevant conditions ”.
In subsection (4), after “licence” at the end of paragraph (a) there is inserted “ or, as the case may be, the relevant licence holders and the Council ”.
In subsection (5), for “this section” there is substituted “ subsection (1A) ”.
In subsection (6), after “this section” there is inserted “ or in carrying out functions under section 14A ”, after “the investigation” there is inserted “ or the carrying out of those functions ” and after “such investigation” there is inserted “ or such functions ”.
After subsection (6) there is inserted—
Section 13 (reports on modification references) of the 1989 Act is amended as follows.
In subsection (1)(c), for “conditions of the licence” there is substituted “ relevant conditions ”.
In subsection (5)—
in paragraph (a), for the words from “such” to “relates” there is substituted “ a report on a reference under section 12(1), send a copy of it to the licence holder ”; and
in paragraph (b), for “publish the report” there is substituted “ send another copy to the Council and publish that other copy ”.
After subsection (5) of that section there is inserted—
In subsection (6) of that section, for the words from “paragraph (b)” to the end there is substituted “ subsection (5) or (5A), direct the Authority to exclude that matter from the copy of the report, or (as the case may be) each copy of the report, to be sent and published as mentioned in paragraph (b) of that subsection. ”
Section 14 of the 1989 Act (modification following report) is amended as follows.
In subsection (1), for “the conditions of the licence” and “the conditions of that licence” there is substituted “ the relevant conditions ”.
After subsection (1) there is inserted—
In subsection (4)(b) after “licence” there is inserted “ or, as the case may be, the relevant licence holders ”.
After subsection (4) there is inserted—
After section 14 of the 1989 Act (modification following report) there is inserted—
Section 15 of the 1989 Act (modification of licences by order under enactments other than the 1989 Act) is amended as follows.
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
After subsection (2) there is inserted—
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
After section 7 of the 1989 Act there is inserted—
After section 49 of the 1989 Act (keeping of register) there is inserted—
After section 56 of the 1989 Act there is inserted—
Duties of electricity distributors
Section 18 of the 1989 Act (charging by reference to tariffs) shall cease to have effect.
Section 19 of the 1989 Act (power to recover expenditure) is amended as follows.
In subsection (1) for “a public electricity supplier”, “supplier” and “supply of electricity” there is substituted respectively “ an electricity distributor ”, “ distributor ” and “ connection ”.
For subsection (2) there is substituted—
In subsection (3) for “a public electricity supplier” there is substituted “ an electricity distributor. ”
In subsection (4) for the words from “maintaining” to the end there is substituted “ continuing to provide it ”.
Section 20 of the 1989 Act (power to require security) is amended as follows.
For subsection (1) there is substituted—
In subsection (3), for “a public electricity supplier” and “supplier” (in each place) there is substituted respectively “ an electricity distributor ” and “ distributor ”.
Subsections (2) and (4) shall cease to have effect.
For section 21 of the 1989 Act (additional terms of connection) there is substituted—
For section 22 of the 1989 Act (special agreements with respect to supply) there is substituted—
In section 9 of the 1989 Act (general duties of licence holders), for subsection (1) there is substituted—
Electricity code and metering
In section 24 of the 1989 Act (the public electricity supply code), for “supply of electricity by public electricity suppliers” there is substituted “ distribution and supply of electricity ”.
Powers of electricity licence holders
Section 10 of the 1989 Act (powers of licence holders) is amended as follows.
In subsection (1), in paragraph (a) the words “a public electricity supplier or” shall cease to have effect and, in paragraph (b) after “to” (in the second place it appears) there is inserted “ an electricity distributor or ”.
In subsection (3), for “A licence under section 6(1)(a) above” there is substituted “ A generation licence ”.
After subsection (3) there is inserted—
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Electricity performance standards
In section 39 of the 1989 Act—
in subsection (2)(a), after “section” there is inserted “ or their rights under section 39A ”; and
subsections (5), (5A) and (6) shall cease to have effect.
After section 39 of the 1989 Act there is inserted—
After section 40 of the 1989 Act there is inserted—
After section 40A of the 1989 Act (which is inserted by section 55 above) there is inserted—
Section 42 of the 1989 Act is amended as follows.
In subsection (1), paragraph (c) (and the word “and” preceding it) shall cease to have effect.
After subsection (1) there is inserted—
In subsection (2) for the words from the beginning to “year” there is substituted “ At such times ” and in paragraph (b) the words “or 41 above” shall cease to have effect.
After subsection (2) there is inserted—
Subsection (3) shall cease to have effect.
For section 42A of the 1989 Act there is substituted—
Enforcement of obligations
After section 27 of the 1989 Act there is inserted—
In section 28(1) of the 1989 Act (power to require information, etc.), for the words from “the Director” in the first place they appear, to “42B below” there is substituted.
In section 49 of the 1989 Act (keeping of a register), after subsection (2)(d) there is inserted
The 1989 Act is amended as follows.
In subsection (1) of section 25 (orders for securing compliance with certain provisions), for “and (5)” there is substituted “ , (5) and (5A) ”.
In subsections (2), (4) and (6) of that section, for “subsection (5)” there is substituted “ subsections (5) and (5A) ”.
In subsection (5) of that section, paragraphs (b) and (c) shall cease to have effect.
After subsection (5) of that section there is inserted—
Subsections (2) to (6) do not have effect in relation to—
a provisional order which has been made before the commencement of the subsection making the amendment; or
a final order in respect of which notice has been given under section 26(1) of the 1989 Act before the commencement of the subsection making the amendment.
Remuneration and service standards
After section 42B of the 1989 Act there is inserted—
Electricity from renewable sources
For section 32 of the 1989 Act there is substituted—
After section 32 of the 1989 Act there is inserted—
After section 32A of the 1989 Act there is inserted—
After section 32B of the 1989 Act there is inserted—
Section 33 of the 1989 Act shall cease to have effect.
The Secretary of State may by order made by statutory instrument make such provision as he considers necessary or expedient for the purpose of—
preserving, modifying, replacing or otherwise dealing with arrangements made pursuant to such an order (or such arrangements as modified or replaced by virtue of an order under this section), including making provision for substituting different parties to the arrangements or for replacement arrangements to be between parties different from those party to the replaced arrangements;
requiring the continued payment of any fossil fuel levy payable by virtue of section 33 of the 1989 Act and providing for payments out of that levy despite the repeal of that section.
The power in subsection (1)(c) may be exercised both before the coming into force of section 62 and afterwards.
An order under this section may, in particular—
provide for what is to happen in relation to the fossil fuel levy and payments out of it if in any month—
the cost referred to in section 33(5)(b) of the 1989 Act is greater than the cost referred to in section 33(5)(a) of the 1989 Act, or
the same is true in relation to any other corresponding measures referred to in section 33 of the 1989 Act as modified under subsection (3);
provide in such a case for payments of amounts determined in accordance with the order (but not exceeding the difference between the sums referred to in paragraph (a)) to be made by, instead of to, the person to whom payments out of the fossil fuel levy would otherwise have been made.
that any specified requirement contained in it is to be treated as a relevant requirement for the purposes of Part I of the 1989 Act; and
for one of those requirements to be that a person referred to in paragraph (a) or (b) of subsection (6) is not to act or omit to act as set out there,
The persons, acts and omissions referred to in subsection (5)(b) are—
an act or omission by a person subject to requirements contained in the order which prevents any arrangements made pursuant to the order from securing such results as are specified in the order; and
an act or omission by a party to arrangements made pursuant to an order under section 32 of the 1989 Act made before the coming into force of section 62 of this Act (or such arrangements as modified or replaced by virtue of an order under this section) which prevents the arrangements from securing the result mentioned in subsection (2) of that section (or that subsection as modified by virtue of an order under this section), or such corresponding result as is specified in the order.
An order under this section may make different provision for different areas.
A statutory instrument containing an order under this section shall be subject to annulment in pursuance of a resolution of either House of Parliament.
Miscellaneous
After section 15 of the Electricity Act 1989 (modification of licences by order under other enactments) there is inserted—
This section shall come into force on the passing of this Act.
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
For section 41 of the 1989 Act (promotion of efficient use of electricity) there is substituted—
Section 9(3) and (4) of the 1989 Act (special duty in Scotland for transmission licence holders who also hold licences to supply or generate electricity) shall cease to have effect.
After section 7A of the 1989 Act (which is inserted by section 41 above) there is inserted—
For section 44 of the 1989 Act (maximum charges for reselling electricity) there is substituted—
Any maximum price fixed under section 44 of the 1989 Act which is in force immediately before the date on which this section comes into force shall be treated on and after that date as if it had been specified in a direction under section 44 as substituted by this section.
Amendment of the Gas Act 1986
Gas licensing
Section 7B of the 1986 Act (general provisions about licences) is amended as follows.
After subsection (2) there is inserted—
In subsection (4)—
paragraph (b) (which is superseded by provision made in section 4AA) is omitted.
After subsection (4) there is inserted—
In subsection (5)(a)(iii) for “specified or described” there is substituted “ referred to ”.
In subsection (6) the words “specified or described in the licence” shall cease to have effect.
After subsection (10) there is inserted—
Section 5(2) of and Schedule 2A to the 1986 Act shall cease to have effect.
The authorised areas of persons holding gas transportation licences under section 7 of the 1986 Act (licensing of public gas transporters) shall cease to be exclusive and, accordingly, section 7 is amended as follows.
In subsection (1), for “public gas transporter” (the expression defined in that subsection) there is substituted “ gas transporter ”.
In paragraph (a) of subsection (2), for the words from “so much of” to the “and” preceding paragraph (b), there is substituted “ any area specified in the licence as it has effect for the time being; ”.
After subsection (4) there is inserted—
In subsections (5) and (6) the words “or extension”, in each place where they appear and, in subsection (5), the words “or, in the case of an extension, such shorter time as may be prescribed” shall cease to have effect.
Subsections (7) and (8) shall cease to have effect.
References in any enactment in force immediately before the commencement of this section to a public gas transporter or to the holder of a licence under section 7 of the 1986 Act shall have effect after that commencement as if they were references to a gas transporter.
After section 10 of the 1986 Act (duty of gas transporters to make a connection in certain circumstances) there is inserted—.
In section 28(8) of the 1986 Act (definition of “relevant requirement”) after “or (14)” there is inserted “ 10A(1), ”.
Section 22A of the 1986 Act (prohibition on execution of works for the construction of pipe-lines) is amended as follows.
In subsection (1)—
for the words “A public gas transporter shall not at any time execute in an authorised area of another public gas transporter” there is substituted “ A gas transporter shall not at any time execute within 23 metres from a pipe-line of another gas transporter (the “other transporter”) ”;
in paragraph (b), the words “in that area” (in both places where they appear) shall cease to have effect;
after paragraph (c) there is inserted.
After subsection (1) there is inserted—
In subsection (3), after the definition of “pipe-line” there is inserted
Section 9 of the 1986 Act (general powers and duties of gas transporters) is amended as follows.
In subsection (1)(b)—
after “him” there is inserted; and
after “premises” there is inserted
After subsection (1) there is inserted—
In subsection (2)(a), after “premises” there is inserted “ , or a pipe-line system operated by an authorised transporter, ”.
Section 10 of the 1986 Act (duty of gas transporters to make a connection in certain circumstances) is amended as follows.
After subsection (3) there is inserted—
After subsection (5) there is inserted—
In subsection (6)(b) after “rights” there is inserted “ or liabilities ”.
In the words following subsection (6)(b), for “or rights” there is substituted “ , rights or liabilities ”.
In subsection (12) for “his authorised area” there is substituted “ an authorised area of his ”.
The standard conditions for the purposes of gas licences of any type (that is to say, licences under section 7, section 7A(1) , section 7A(2) or 7AC(1) of the 1986 Act) may contain provision—
for any standard condition included in a licence of that type not to have effect until brought into operation in such manner and in such circumstances as may be specified in or determined under the standard conditions;
for the effect of any standard condition included in such a licence to be suspended in such manner, and in such circumstances, as may be so specified or determined; or
for any standard condition included in such a licence which is for the time being suspended to be brought back into operation in such manner and in such circumstances as may be so specified or determined.
Such conditions as may be determined by the Secretary of State before the relevant time, and published by him in such manner as he considers appropriate, in relation to gas licences of any type shall, subject to any modifications made... under Part 1 or section 76 or 98 of the 1986 Act or, under the Energy Act 2004, under section 88 or 94 of the Energy Act 2008, under the Energy Act 2010 , under Chapter 1 of Part 1 or section 98 of the Energy Act 2011, under section 139 of the Energy Act 2013 or under section 1 or 10 of the Domestic Gas and Electricity (Tariff Cap) Act 2018 or under section 6 of the Smart Meters Act 2018 or under or by virtue of section 21 of the Energy Prices Act 2022 or under sections 89, 136(1) or (4), 169, 245 to 247 of, and paragraph 4 of Schedule 12 to, the Energy Act 2023 after the determination under this subsection, be standard conditions for the purposes of licences of that type (in place of the standard conditions which would otherwise be incorporated in licences of that type granted immediately before that commencement).
In subsection (2), “the relevant time” means—
where the determination relates to any of the types of licence mentioned in sections 7, 7A(1) or 7A(2) of the 1986 Act, the time when subsection (3) comes into force;
where the determination relates to the type of licence mentioned in section 7AC of the 1986 Act (licence of a person performing code manager function), 26th October 2030.
In section 8(1) of the 1986 Act (standard conditions of licences to be incorporated in gas licences)—
the words “and sections 23(2), 26(1A) and 27(2) below” shall be omitted; and
In section 8(7) of the 1986 Act (standard conditions of licences to be incorporated in gas licences)—
after “such that” there is inserted—; and
after “the holder of the licence” there is inserted “being modified”.
In section 23 of the 1986 Act (modification of conditions by agreement), for subsection (6) there is substituted—
For subsections (7) to (9) of that section there is substituted—
For subsection (12) of that section there is substituted—
In section 24(5) of the 1986 Act (modification references to the Competition Commission), after “this section” there is inserted “ or in carrying out functions under section 26A ”, after “the investigation” there is inserted “ or the carrying out of those functions ” and after “such investigation” there is inserted “ or such functions ”.
In section 26 of that Act (modification of licence conditions following report of Competition Commission) after subsection (4) there is inserted—
After subsection (5) of that section there is inserted—
After section 26 of that Act there is inserted—
In section 27 of that Act (modification of licences by order under enactments other than the 1986 Act), after subsection (1) there is inserted—
Schedule 2B to the 1986 Act is amended as follows.
After paragraph 6 (meters for disabled persons) there is inserted—
In paragraph 7 (recovery of gas charges etc.)—
in sub-paragraph (1)(a) for the words from “the consumer’s” to “him” there is substituted “ any premises of his (in this paragraph referred to as “the premises”) ”;
sub-paragraph (2) shall cease to have effect; and
in sub-paragraph (3) for paragraphs (a) and (b) there is substituted—
In paragraph 23(2), for paragraph (c) there is substituted—
For section 8AA of the 1986 Act (assignment of gas licences) there is substituted—
In subsection (1) of section 6A of the 1986 Act (exemptions from prohibition) the words “, after consultation with the Director,” shall be omitted.
After subsection (1) of that section there is inserted—
For subsections (2) and (3) of that section there is substituted—
For subsection (5) of that section there is substituted—
For section 38A of the 1986 Act (duty to consider representations and give reasons) there is substituted—
After section 41B of the 1986 Act (which is inserted by section 98 below) there is inserted—
Gas performance standards
Subsections (2) to (5) of section 10 of the Gas Act 1995 shall cease to have effect and, accordingly, sections 33A to 33E of the 1986 Act are not liable to expire in accordance with those subsections.
In section 33A of the 1986 Act—
in subsection (3)(a), after “section” there is inserted “or their rights under section 33AA”; and
subsections (6) to (9) shall cease to have effect.
After section 33A of the 1986 Act there is inserted—
After section 33B of the 1986 Act there is inserted—
After section 33BA of the 1986 Act (which is inserted by section 91 above) there is inserted—
Section 33C of the 1986 Act is amended as follows.
In subsection (1), paragraph (c) (and the word “and” preceding it) shall cease to have effect.
After subsection (1) there is inserted—
In subsection (2)(b) the words “or 33BB above” shall cease to have effect.
After subsection (2) there is inserted—
Subsection (3) shall cease to have effect.
For section 33D of the 1986 Act there is substituted—
Enforcement of obligations
After section 30 of the 1986 Act there is inserted—
In section 28 of the 1986 Act (orders for securing compliance with certain provisions)—
subsection (7A) (power to impose financial penalty in a final order under section 28) and subsection (9) (payment of sums received by way of financial penalty under section 28 to be paid into the Consolidated Fund) shall cease to have effect;
in subsection (8) (interpretation) for “and 30” there is substituted “ to 30F ”.
Section 30(2)(b) of the 1986 Act (power of court to quash or substitute a monetary penalty on an application under section 30) shall cease to have effect.
In section 36 of the 1986 Act (keeping of a register)—
in subsection (1), for “and final and provisional orders” there is substituted “ , final and provisional orders and penalties imposed under section 30A(1) ”;
in subsection (2), after paragraph (e) there is inserted
In section 38(1) of the 1986 Act (power to require information, etc.)—
for “Director” in each place where it appears, there is substituted “ Authority ”;
after “requirement” there is inserted “ or may be failing, or may have failed, to achieve any standard of performance prescribed under section 33A or 33AA, ”;
for the words from “his functions” to “signed by him” there is substituted “ its functions under section 28 or 30A to 30F in relation to that matter, by notice in writing ”;
for “him” there is substituted “ it ”.
The 1986 Act is amended as follows.
In subsection (1) of section 28 (orders for securing compliance with certain provisions), for “and (5)” there is substituted “ , (5) and (5A) ”.
In subsections (2), (4) and (6) of that section, for “subsection (5)” there is substituted “ subsections (5) and (5A) ”.
In subsection (5) of that section paragraphs (aa) and (b) shall cease to have effect.
After subsection (5) of that section there is inserted—
Subsections (2) to (6) do not have effect in relation to—
a provisional order which has been made before the commencement of the subsection making the amendment; or
a final order in respect of which notice has been given under section 29(1) of the 1986 Act before the commencement of the subsection making the amendment.
Remuneration and service standards
After section 33E of the 1986 Act there is inserted—
Miscellaneous
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
For section 33BB of the 1986 Act (promotion of efficient use of gas) there is substituted—
For section 47(7) of the 1986 Act (power to make regulations to be exercisable by statutory instrument) there is substituted—
After section 15A of the 1986 Act (billing disputes) there is inserted—
In section 37 of the 1986 Act (maximum prices for reselling gas)—
in subsection (1), for “shall” (in the first place it appears) and “gas suppliers” there is substituted respectively “ may ” and “ authorised suppliers ”; and
in subsections (2) and (4) for “a gas supplier” there is substituted “ an authorised supplier ”.
Miscellaneous and Supplementary
Miscellaneous
For the purposes of the exercise of the functions of the Administrator under either or both of—the Secretary of State may by order specify an overall target for the promotion of the measures mentioned in subsection (2) of each of those sections.
section 33BC of the 1986 Act (promotion of reductions in carbon emissions: gas transporters and suppliers) and any order made under that section, and
section 41A of the 1989 Act (promotion of reductions in carbon emissions: electricity ... distributors and suppliers) and any order made under that section,
The power conferred by this section may be exercised so as to specify more than one overall target in relation to the same period or to periods that overlap to any extent.
Where an overall target applies in relation to both sections mentioned in subsection (1), the order specifying the target may make provision the target to be apportioned between—by reference to such criteria as may be specified in the order.
persons who are gas transporters or gas suppliers (for the purposes of section 33BC of the 1986 Act and any order under that section); and
persons who are ... electricity distributors or electricity suppliers (for the purposes of section 41A of the 1989 Act and any order under that section),
Where an overall target applies in relation to a section mentioned in subsection (1) the order specifying the target may make provision for the target to be apportioned between—by reference to such criteria as may be specified in the order.
measures carried out in England and Wales, and
measures carried out in Scotland,
The Administrator shall exercise its functions under the provisions mentioned in subsection (1) in relation to which an overall target applies (and in particular its functions relating to the determination of carbon emissions reduction targets) in the manner it considers best calculated to result in the achievement of the overall target.
Where a target is apportioned under subsection (2A) for the purposes of a section, an order under that section may include provision for a supplier to elect, subject to any conditions specified in the order—
that, for the purposes of meeting the carbon emissions reduction target under an obligation imposed by the order in relation to England and Wales, a measure carried out in Scotland is to be treated instead as carried out in England and Wales;
that, for the purposes of meeting the carbon emissions reduction target under an obligation imposed by the order in relation to Scotland, a measure carried out in England and Wales is to be treated instead as carried out in Scotland.
An order may not make provision under subsection (3A)(b) unless the Scottish Ministers have agreed to such provision being made.
Before making an order under this section the Secretary of State shall consult the Authority, Citizens Advice, Consumer Scotland, gas transporters, gas suppliers, ... electricity distributors, electricity suppliers, and such other persons as he considers appropriate.
An order under this section shall not be made unless a draft of the instrument containing it has been laid before, and approved by a resolution of, each House of Parliament.
For the purposes of the exercise of the functions of the Administrator under either or both of—the Secretary of State may by order specify an overall target for the promotion of measures for reducing the cost to individuals of heating their homes.
section 33BD of the 1986 Act (promotion of reductions in home-heating costs: gas transporters and suppliers) and any order made under that section, and
section 41B of the 1989 Act (promotion of reductions in home-heating costs: electricity distributors and suppliers) and any order made under that section,
The power conferred by this section may be exercised so as to specify more than one overall target in relation to the same period or to periods that overlap to any extent.
Where an overall target applies in relation to both sections mentioned in subsection (1), the order specifying the target may make provision for the target to be apportioned between—by reference to such criteria as may be specified in the order.
persons who are gas transporters or gas suppliers (for the purposes of section 33BD of the 1986 Act and any order made under that section); and
persons who are electricity distributors or electricity suppliers (for the purposes of section 41B of the 1989 Act and any order under that section),
Where an overall target applies in relation to a section mentioned in subsection (1) the order specifying the target may make provision for the target to be apportioned between—by reference to such criteria as may be specified in the order.
measures carried out in England and Wales, and
measures carried out in Scotland,
The Administrator shall exercise its functions under the provisions mentioned in subsection (1) in relation to which an overall target applies (and in particular its functions relating to the determination of home-heating cost reduction targets) in the manner it considers best calculated to result in the achievement of the overall target.
Where a target is apportioned under subsection (3A) for the purposes of a section, an order under that section may include provision for a supplier to elect, subject to any conditions specified in the order,—
that, for the purposes of meeting the home-heating cost reduction target under an obligation imposed by the order in relation to England and Wales, a measure carried out in Scotland is to be treated instead as carried out in England and Wales;
that, for the purposes of meeting the home-heating cost reduction target under an obligation imposed by the order in relation to Scotland, a measure carried out in England and Wales is to be treated instead as carried out in Scotland.
An order may not make provision under subsection (4A)(b) unless the Scottish Ministers have agreed to such provision being made.
Before making an order under this section the Secretary of State shall consult the Authority, Citizens Advice, Consumer Scotland, gas transporters, gas suppliers, electricity distributors, electricity suppliers, and such other persons as the Secretary of State considers appropriate.
An order under this section shall not be made unless a draft of the instrument containing it has been laid before, and approved by a resolution of, each House of Parliament.
Subject to subsection (1A), the Secretary of State may by notice require a person within subsection (3) to provide the Secretary of State with specified information, or information of a specified kind, for the purpose of enabling the Secretary of State—
to decide whether to make a carbon emissions reduction order or a home-heating cost reduction order and, if so, what provision to include in the order;
to review the operation and effect of a carbon emissions reduction order or a home-heating cost reduction order;
to establish and maintain a record (“a measures record”) of properties in respect of which carbon emissions reduction measures or home-heating cost reduction measures have been taken and of the type of measure taken in respect of each such property.
The Scottish Ministers may exercise the power in subsection (1)(b) and (c) in order to require information to review the operation of any carbon emissions reduction order or home-heating cost reduction order made by the Scottish Ministers and to establish and maintain a measures record in relation to such orders.
For the purpose of enabling a person (“A”) to establish and maintain a measures record on behalf of the Secretary of State or the Scottish Ministers, the Secretary of State and the Scottish Ministers may by notice require any person within subsection (3) to provide A with specified information or information of a specified kind.
Those persons are—
gas transporters and gas suppliers;
electricity distributors and electricity suppliers;
the Authority; and
any body other than the Authority that is for the time being the Administrator in relation to a carbon emissions reduction order or a home-heating cost reduction order.
Information required to be provided by a notice under this section must be provided—
in such form as may be specified;
within such period as may be specified or at such intervals as may be specified.
No person shall be required by a notice under this section to provide any information which the person could not be compelled to give in evidence in civil proceedings in the High Court or, in Scotland, the Court of Session.
Information obtained by virtue of this section may be disclosed by the Secretary of State—
to the Welsh Ministers for the purpose of enabling them to review the operation and effect in Wales of a carbon emissions reduction order or a home-heating cost reduction order;
to the Scottish Ministers for the purpose of enabling them to review the operation and effect in Scotland of a carbon emissions reduction order or a home-heating cost reduction order.
Information obtained by virtue of subsection (1A) may be disclosed by the Scottish Ministers—
to the Secretary of State;
to the Welsh Ministers for the purpose of enabling them to review the operation and effect in Wales of a carbon emissions reduction order or home-heating cost reduction order.
In this section—“a carbon emissions reduction order” means an order under—section 33BC of the 1986 Act; section 41A of the 1989 Act; or section 103 of this Act;“a home-heating cost reduction order” means an order under—section 33BD of the 1986 Act; section 41B of the 1989 Act; or section 103A of this Act;“a carbon emissions reduction measure” is a measure of a kind mentioned in subsection (2) of each of section 33BC of the 1986 Act and section 41A of the 1989 Act;“a home-heating cost reduction measure” is a measure of a kind mentioned in subsection (2)(b) of each of section 33BD of the 1986 Act and section 41B of the 1989 Act;“specified” means specified in a notice under this section.
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Information which—shall not be disclosed during the lifetime of the individual or so long as the business continues to be carried on, except as provided below.
has been obtained under or by virtue of the provisions of this Act, Part I of the 1986 Act , Part 1 of the 1989 Act... , section 184(5) or 185(5) of the Energy Act 2004 or Part 2 or section 27 or 28 of the Energy Act 2010 or section 50 or 51 of the Energy Act 2013 or section 41 or 100 of the Energy Act 2008 or the Domestic Gas and Electricity (Tariff Cap) Act 2018 or the Nuclear Energy (Financing) Act 2022 or a relevant scheme or regulations made under section 9(1) or (2) or section 16 of the Energy Prices Act 2022 or Part 1, 5 or 6, or Chapter 1 of Part 8 of the Energy Act 2023; and
relates to the affairs of any individual or to any particular business,
Subsection (1) does not apply to a disclosure made with the consent of the individual or the person for the time being carrying on the business.
Subsection (1) does not apply to a disclosure if—
it is made for the purpose of facilitating the performance of any functions of the Secretary of State, the Authority, Citizens Advice, Citizens Advice Scotland , Consumer Scotland or the Competition and Markets Authority under the 1986 Act, the 1989 Act , section 184 or 185 of the Energy Act 2004 sections 41 to 43... of the Energy Act 2008 , Part 2 or section 28 of the Energy Act 2010 , section 50 or 51 of the Energy Act 2013 , the REMIT Regulations or this Act;
it is made for the purpose of facilitating the performance of any functions of the Authority under Part 3 of the Enterprise Act 2002 or under the Domestic Gas and Electricity (Tariff Cap) Act 2018;
it is made for the purpose of facilitating the performance of any functions of the Authority under or by virtue of the Nuclear Energy (Financing) Act 2022;
it is made for the purpose of facilitating the performance of any functions of the Authority under or by virtue of Part 1 of the Energy Act 2023;
it is made for the purpose of facilitating any functions of any person under section 100 of the Energy Act 2008;
it is required by a notice under section 103B of this Act or is permitted by subsection (6) of that section;
it is required by any person in exercise of a power to require information conferred by regulations under section 16 of the Energy Prices Act 2022;
it is made for the purpose of facilitating the performance of any functions of—
the Secretary of State under section 13 of the Energy Prices Act 2022, or
any person under regulations under section 19 of that Act;
it is made by a person who is subject to a direction given under section 22 of the Energy Prices Act 2022 for the purpose of complying with the direction;
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;
it is made for the purpose of facilitating the performance of any functions of—
any person under or by virtue of Chapter 1 of Part 8 of the Energy Act 2023,
a person designated as the Heat Network Zones Authority by regulations made by virtue of section 227(1) of that Act, or
a person designated as a heat network zone coordinator by regulations made by virtue of section 228(3)(a) of that Act;
it is a disclosure of information that relates to relevant heat networks (as defined in section 216 of the Energy Act 2023) and it is made for the purpose of facilitating the performance of the functions of—
the Scottish Ministers under the Climate Change (Scotland) Act 2009 (asp 12) or the Fuel Poverty (Targets, Definition and Strategy) (Scotland) Act 2019 (asp 10), or
any person under the Heat Networks (Scotland) Act 2021 (asp 9);
it is required by a notice under section 38(1A) of the 1986 Act or section 28(2A) of the 1989 Act;
it is a protected disclosure for the purposes of the Employment Rights Act 1996 (and for the purposes of ascertaining whether it is a protected disclosure, subsection (9) is to be disregarded);
it is made by a licence holder and is required to be made by a condition of his licence; or
it is made by one licence holder to another and is required by that other licence holder for purposes connected with the carrying on of relevant activities.
Subsection (1) does not apply to any disclosure of information made—
for the purpose of facilitating the performance by a person or body mentioned in subsection (5) of any function under an Act or instrument specified in subsection (6);
for the purpose of facilitating the performance by the Comptroller and Auditor General, ...the Health and Safety Executive of any of his or its functions;
for the purpose of facilitating the performance by the Office for Nuclear Regulation of any of its functions;
for the purpose of facilitating the performance by the Independent System Operator and Planner of any of its functions;
for the purpose of facilitating the exercise by the Secretary of State of any power conferred . . . by the enactments relating to companies ... or insolvency;
for the purpose of facilitating the performance of the functions of an inspector appointed under the enactments relating to companies;
for the purpose of facilitating the performance by the Secretary of State, the Treasury, the Financial Conduct Authority, the Prudential Regulation Authority or the Bank of England of any functions under the Financial Services and Markets Act 2000 or the Consumer Credit Act 1974;
for the purpose of facilitating the discharge of any function by a person appointed under—
section 97 of the financial Services and Markets Act 2000 (investigations into a breach of listing rules etc.),
section 167 of that Act (general investigations), or
section 168 of that Act (investigations in particular cases);
for the purpose of facilitating the performance by an official receiver of his functions under the enactments relating to insolvency or by a recognised professional body for the purposes of section 391 of the Insolvency Act 1986 of its functions as such a body;
in connection with the investigation of any criminal offence or for the purposes of any criminal proceedings;
for the purposes of any civil proceedings brought —
under or by virtue of the 1986 Act, the 1989 Act, this Act or any Act or instrument specified in subsection (6), or
in connection with the investigation of any failure to comply with a REMIT requirement or an EU REMIT requirement or for the purposes of any proceedings brought under or by virtue of REMIT or any proceedings brought under or by virtue of EU REMIT in a member State; or
in pursuance of an assimilated obligation.
The persons and bodies specified for the purposes of subsection (4)(a) are—
a Minister of the Crown;
the Competition and Markets Authority;
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
the Office of Communications;
the Water Services Regulation Authority;
the Northern Ireland Authority for Utility Regulation;
the Office of Rail and Road;
the Civil Aviation Authority;
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
the Coal Authority; ...
a local weights and measures authority in Great Britain ,...
Citizens Advice,...
Citizens Advice Scotland , and
Consumer Scotland.
The Acts and instruments specified for the purposes of subsection (4)(a) and (g) are—
the Trade Descriptions Act 1968;
the Fair Trading Act 1973;
the Consumer Credit Act 1974;
the Estate Agents Act 1979;
the Competition Act 1980;
the National Audit Act 1983;
the Telecommunications Act 1984;
the Airports Act 1986;
the Insolvency Act 1986;
the Consumer Protection Act 1987;
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
the Water Act 1989, the Water Industry Act 1991 or any of the other consolidation Acts (within the meaning of section 206 of the Water Industry Act 1991) or the Water Act 2003 or the Water and Sewerage Services (Northern Ireland) Order 2006 or the Water Act 2014;
the Electricity (Northern Ireland) Order 1992;
the Railways Act 1993;
the Coal Industry Act 1994;
the Gas (Northern Ireland) Order 1996;
the Competition Act 1998.
Part I of the Transport Act 2000.
the Enterprise Act 2002
the Communications Act 2003.
the Railways Act 2005.
the Business Protection from Misleading Marketing Regulations 2008;
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
the Consumers, Estate Agents and Redress Act 2007.
Part 1 of the Civil Aviation Act 2012
the Electricity and Gas (Market Integrity and Transparency) (Enforcement etc.) Regulations (Northern Ireland) 2013.
Parts 3 and 4 of the Enterprise and Regulatory Reform Act 2013;
the Domestic Gas and Electricity (Tariff Cap) Act 2018;
Part 1 of the Energy Act 2023;
the following provisions of the Digital Markets, Competition and Consumers Act 2024—
Part 3;
Chapter 1 of Part 4;
Chapter 2 of Part 5.
If the Authority is making a decision whether to disclose information to a national regulatory authority of a member State under subsection (4)(ga), the Authority must have regard in particular to whether there are arrangements in place for the provision of mutual assistance in relation to the disclosure of information.
The Secretary of State may by order modify subsection (3), (4), (5) or (6).
Nothing in subsection (1) is to be construed either as limiting the matters which may be—or as applying to information which has been so published or has been made public as part of such a notice or such a report.
published under section ... 35 of the 1986 Act or section 32J or ... 48 of the 1989 Act , section 32J or 48 of the 1989 Act or regulations made by virtue of paragraph 11(4) of Schedule 18 to the Energy Act 2023;
made public by the Authority as part of a notice under section 26; or
included in, or made public as part of, a report of the Authority ... or the Competition and Markets Authority under any provision of this Act, Part I of the 1986 Act , Part 1 of the 1989 Act or regulations made by virtue of paragraph 41 of Schedule 18 to the Energy Act 2023;
Subsection (1) does not apply to a disclosure of information which has been obtained—
under or by virtue of a relevant scheme if it is made by a person in connection with that person’s performance of the terms of that relevant scheme, or
A person who discloses any information in contravention of this section is guilty of an offence and liable—
on summary conviction, to a fine not exceeding the statutory maximum;
on conviction on indictment, to imprisonment for a term not exceeding two years or to a fine or to both.
In this section—“EU REMIT” means Regulation (EU) No 1227/2011 of the European Parliament and of the Council of 25 October 2011 on wholesale energy market integrity and transparency (OJ L 326, 8.12.2011, p.1–16), as it has effect in EU law as amended from time to time;“EU REMIT requirement” means a requirement imposed by any of Articles 3(1) and (5), 4(1), (2) and (3), 5, 8(1) and (5), 9(1), (4) and (5) and 15 of EU REMIT;“the Independent System Operator and Planner” means the person for the time being designated under section 162(1) of the Energy Act 2023;“licence holder” means the holder of a gas licence or an electricity licence; and“national regulatory authority” has the same meaning as in EU REMIT;“relevant activities”, in relation to a licence holder, means activities he is authorised by his licence to carry on (including, in the case of a gas transporter, the activities mentioned in section 7(1)(b) and (c) of the 1986 Act).“relevant scheme” means—a domestic electricity price reduction scheme for Great Britain, or a domestic gas price reduction scheme for Great Britain, within the meaning of the Energy Prices Act 2022 (see section 1 of that Act);“REMIT” means Regulation (EU) No 1227/2011 of the European Parliament and of the Council of 25 October 2011 on wholesale energy market integrity and transparency;“the REMIT Regulations” means the Electricity and Gas (Market Integrity and Transparency) (Enforcement etc.) Regulations 2013;“REMIT requirement” has the same meaning as in the REMIT Regulations ; and the reference to the Bank of England does not include the Bank acting in its capacity as the Prudential Regulation Authority.
Information obtained by the Authority in the exercise of functions which are exercisable concurrently with the Competition and Markets Authority under Part I of the Competition Act 1998 is subject to Part 9 of the Enterprise Act 2002 (Information) and not to subsections (1) to (10) of this section.
Nothing in this section applies to information within section 29(3) of the Consumers, Estate Agents and Redress Act 2007 (application of disclosure regime in Part 9 of the Enterprise Act 2002 to information obtained by Citizens Advice , Citizens Advice Scotland or Consumer Scotland).
Nothing in this section applies to information to which section 105A applies.
The power to make an order under subsection (7) is exercisable by statutory instrument which shall be subject to annulment in pursuance of a resolution of either House of Parliament.
This section applies to any information provided to the Authority—
for the purpose of enabling it to carry out its designated regulatory functions; and
by the Northern Ireland Authority for Utility Regulation in the exercise of its designated regulatory functions.
This section also applies to any information provided to the Authority on or after IP completion day—
for the purpose of enabling it to carry out its designated regulatory functions; and
by an authority designated in accordance with Article 35 of the Electricity Directive or Article 39 of the Gas Directive.
This section also applies to any information provided to the Authority before IP completion day—
for the purpose of enabling it to carry out its functions as an authority designated in accordance with Article 35 of the Electricity Directive or Article 39 of the Gas Directive; and
by—in accordance with Article 38(1) of the Electricity Directive or Article 42(1) of the Gas Directive.
the Northern Ireland Authority for Utility Regulation, or
an authority in another member State which is designated in accordance with Article 35 of the Electricity Directive or Article 39 of the Gas Directive,
The Authority may disclose information to which this section applies only if—
the authority that provided the information to the Authority (“the originating authority”) has confirmed in writing that the originating authority would be permitted to disclose the information in the circumstances in question; and
the Authority would be permitted under section 105 to disclose the information if it was received under or by virtue of an enactment listed in subsection (1) of that section.
Subsection (1), (1A) or (1B) applies whether the information is provided directly or indirectly by the originating authority.
Supplementary
In this Act—......“Authority” means the Gas and Electricity Markets Authority;“Citizens Advice” means the National Association of Citizens Advice Bureaux;“Citizens Advice Scotland” means the Scottish Association of Citizens Advice Bureaux;.........“designated regulatory function” means—a function of the Authority conferred by—a provision of assimilated law, a condition in a licence under section 7, 7ZA or 7A of the 1986 Act, as that condition is modified from time to time on or after IP completion day, or a condition in a licence under section 6 of the 1989 Act, as that condition is modified from time to time on or after IP completion day, where that function was, immediately before IP completion day, one of its functions as a regulatory authority designated in accordance with Article 35 of the Electricity Directive or Article 39 of the Gas Directive; a function of the Northern Ireland Authority conferred by—a provision of retained EU law, or a condition in a licence under Article 8 of the Gas (Northern Ireland) Order 1996 (S.I. 1996/275 (N.I. 2)), as that condition is modified from time to time on or after IP completion day, where that function was, immediately before IP completion day, one of its functions as a regulatory authority designated in accordance with Article 39 of the Gas Directive; a function of the Northern Ireland Authority as a regulatory authority designated in accordance with Article 35 of the Electricity Directive;“the Electricity Directive” means Directive 2009/72/EC of the European Parliament and of the Council of 13 July 2009 concerning common rules for the internal market in electricity and repealing Directive 2003/54/EC;“electricity licence” means a licence under section 6 of the 1989 Act;“the Gas Directive” means Directive 2009/73/EC of the European Parliament and of the Council of 13 July 2009 concerning common rules for the internal market in natural gas and repealing Directive 2003/55/EC( ), as amended by the 2019 Amending Directive;“gas licence” means a licence under section 7, 7A, 7AA, 7AB or 7AC of the 1986 Act;“the 1986 Act” means the Gas Act 1986;“the 1989 Act” means the Electricity Act 1989.“the 2019 Amending Directive” means Directive (EU) 2019/692 of the European Parliament and of the Council of 17 April 2019 amending Directive 2009/73/EC concerning common rules for the internal market in natural gas.
Expressions used in this Act, as regards matters relating to electricity, which are defined in section 64 or 111 of the 1989 Act or used in Part I of that Act have, unless the context otherwise requires, the same meaning as in that Part of that Act.
Section 46 of the 1986 Act (service of notices, etc.) shall apply to any document authorised or required by virtue of any provision of this Act to be served on or given to any person as if it were authorised or required to be served or given by virtue of that Act.
There shall be paid out of money provided by Parliament—
any expenditure incurred by the Authority by virtue of this Act;
any expenditure incurred by the Secretary of State by virtue of this Act;
any increase attributable to this Act in the sums payable out of money so provided under any other Act.
The Secretary of State may by regulations make such transitional and consequential provisions and such savings as he considers necessary or expedient in preparation for, or in connection with, or in consequence of—
the coming into force of any provision of this Act; or
the operation of any enactment repealed or amended by a provision of this Act during any period when the repeal or amendment is not wholly in force.
Such regulations may make modifications of any enactment contained in any Act or subordinate legislation (including an enactment contained in this Act or in any Act passed or subordinate legislation made in the same Session as this Act).
The power of the Secretary of State to make regulations under this section shall be exercisable by statutory instrument subject to annulment in pursuance of a resolution of either House of Parliament.
This Act may be cited as the Utilities Act 2000.
This Act (apart from this section and section 68) shall come into force on such day as the Secretary of State may by order made by statutory instrument appoint; and different days may be appointed for different purposes.
An order under subsection (2) may contain transitional provisions and savings relating to the provisions being brought into force by the order.
Any amendment or repeal made by this Act has the same extent as the enactment being amended or repealed.
Subject to subsection (4), this Act does not extend to Northern Ireland.
The Gas and Electricity Markets Authority
Membership
The Authority shall consist of a chairman, and no fewer than two other members, appointed by the Secretary of State.
The Secretary of State shall consult the chairman before appointing any other member.
Terms of appointment, remuneration, pensions etc.
Subject to this Schedule, the chairman and other members shall hold and vacate office as such in accordance with the terms of their respective appointments.
The terms of appointment of the chairman and other members shall be determined by the Secretary of State.
A person holding office as chairman or other member must not—
seek or take any instructions that might compromise, or might reasonably be seen to compromise, the independence of the Authority in relation to its designated regulatory functions; or
carry out any other activity, or have any financial or other interest, that might compromise, or might reasonably be seen to compromise, that person’s impartiality.
An appointment of a person to hold office as chairman or other member must be for a term of not less than 5 years and not more than 7 years.
But in appointing as chairman or other member a person who is on the Authority’s staff, the Secretary of State may make the appointment subject to a condition that the appointment will end if that person ceases to be on the Authority’s staff.
The appointment of a person as chairman or other member may be renewed only once.
The Secretary of State must ensure that there is sufficient continuity in the persons holding office as chairman or other member in determining—
the term of a person’s appointment in accordance with sub-paragraph (1) (whether initially or on renewal); and
whether or not to renew an appointment in accordance with sub-paragraph (3).
A person holding office as chairman or other member may resign that office by giving notice in writing to the Secretary of State.
A person holding office as chairman or other member may be removed from office by the Secretary of State on one of the following grounds only—
a breach of paragraph 2A;
incapacity; or
misbehaviour.
The Authority shall pay to the chairman and other members such remuneration, and such travelling and other allowances, as may be determined by the Secretary of State.
The Authority shall, if required to do so by the Secretary of State—
pay such pension, allowances or gratuities as may be determined by the Secretary of State to or in respect of a person who is or has been the chairman or a member of the Authority; or
make such payments as may be so determined towards provision for the payment of a pension, allowances or gratuities to or in respect of such a person.
If, where any person ceases to hold office as chairman or other member, the Secretary of State determines that there are special circumstances which make it right that he should receive compensation, the Authority shall pay to him a sum by way of compensation of such amount as may be determined by the Secretary of State.
Staff
The Authority may, with the approval of the Minister for the Civil Service as to numbers and terms and conditions of service, appoint such staff as it may determine.
Committees
The Authority may establish committees and any committee of the Authority may establish sub-committees.
The members of a committee of the Authority may include persons who are not members of the Authority (and the members of a sub-committee may include persons who are not members of the committee).
Proceedings etc.
The Authority may regulate its own procedure (including quorum).
The validity of anything done by the Authority is not affected by a vacancy among its members or by a defect in the appointment of a member.
The application of the seal of the Authority to a statutory instrument shall be authenticated by the signature of the chairman or by some other person who has been authorised by the Authority to act for that purpose.
A document purporting to be duly executed under the seal of the Authority, or signed on its behalf, shall be received in evidence and, unless the contrary is proved, be taken to be so executed or signed.
Performance of functions
Anything authorised or required to be done by the Authority may be done by—
any member or employee of the Authority who is authorised for that purpose by the Authority, whether generally or specially;
any committee of the Authority which has been so authorised.
Sub-paragraph (1) does not apply to any power to make statutory instruments.
Sub-paragraph (1) is subject to provision in rules made under section 51 of the Competition Act 1998 by virtue of paragraph 1A of Schedule 9 to that Act in respect of the exercise of a function under Part 1 of that Act.
In sub-paragraph (1)(b) “committee of the Authority” does not include a committee whose members include any person who is not a member or employee of the Authority.
The Statutory Instruments Act 1946 shall apply to any power to make statutory instruments conferred on the Authority by or under any Act as if the Authority were a Minister of the Crown.
Supplementary powers
The Authority has power to do anything which is calculated to facilitate, or is conducive or incidental to, the performance of its functions.
That power includes the formation of advisory bodies.
The Gas and Electricity Consumer Council
Membership of Council
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Terms of appointment, remuneration, pensions et ceteralaetc.
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Staff
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Annual reports
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Financial provisions and accounts
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Regional and other committees and sub-committees
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Performance of functions of the Council
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Supplementary powers
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Further provision about transfers of functions, property etc.
Preliminary
Contents of transfer schemes
The property, rights and liabilities which may be transferred by a transfer scheme include property, rights and liabilities that would not otherwise be capable of being transferred or assigned.
The transfers authorised by sub-paragraph (1) include transfers which are to take effect as if there were no such contravention, liability or interference with any interest or right as there would otherwise be by reason of any provision having effect (whether under any enactment or agreement or otherwise) in relation to the terms on which the transferor is entitled to the property or right, or subject to the liability, in question.
A transfer scheme may define the property, rights and liabilities to be transferred by specifying them or describing them or by referring to all (or all except anything specified or described) of the property, rights and liabilities comprised in a specified part of the undertaking of the transferor (or partly in one way and partly in the other).
A transfer scheme may include such supplementary, incidental, transitional and consequential provision as the Secretary of State considers appropriate.
Modification of transfer scheme after appointed day
If, after the day appointed by a transfer scheme, the transferor and transferee so agree in writing, the scheme shall for all purposes be deemed to have come into force on that day with such modifications as may be agreed.
An agreement under this paragraph may, in connection with giving effect to modifications to the scheme, include incidental, supplemental, consequential and transitional provision.
Effect of transfers
Anything done by the transferor for the purpose of or in connection with anything transferred which is in effect immediately before it is transferred shall be treated as if done by the transferee.
A transfer does not affect the validity of anything done by or in relation to the transferor before the transfer takes effect.
There may be continued by or in relation to the transferee anything (including legal proceedings) relating to anything transferred which is in the process of being done by or in relation to the transferor immediately before it is transferred.
The transferee shall be substituted for the transferor in any document relating to anything transferred.
Continuity of employment, etc. of transferred employees
Where a person employed in the civil service of the state becomes an employee of the Council under a transfer scheme, his period of employment in that service counts as a period of employment with the Council for the purposes of the Employment Rights Act 1996 (and the change of employer does not break the continuity of the period of employment for those purposes).
Where an employee of the Gas Consumers’ Council becomes an employee of the Gas and Electricity Consumer Council—
he shall not be regarded for the purposes of Part XI of the Employment Rights Act 1996 as having been dismissed by virtue of the transfer; and
his period of employment with the Gas Consumers’ Council counts as a period of employment with the Gas and Electricity Consumer Council for the purposes of the Employment Rights Act 1996 (and the change of employer does not break the continuity of his employment).
Schedule to be substituted for Schedule 6 to the 1989 Act
Electricity metering
Schedule 7 to the 1989 Act (use etc. of electricity meters) is amended as follows.
For the expression “electricity supplier” in each place it appears (otherwise than in the expression “public electricity supplier”) there is substituted “ authorised supplier ”.
In paragraph 13 the definition of “electricity supplier” shall be omitted.
Paragraph 1 (consumption to be ascertained by appropriate meter) is amended as follows.
After sub-paragraph (1) there is inserted—
In sub-paragraph (2)—
after “customer” there is inserted “ (who may provide a meter which belongs to him or is made available otherwise than in pursuance of arrangements made by the supplier) ”; and
for “(whether by way of sale, hire or loan)” there is substituted “ (who may provide a meter which belongs to him or to any person other than the customer) ”.
In sub-paragraph (2A) for “a public electricity supplier” there is substituted “ an authorised supplier ”.
In sub-paragraphs (7) and (9), for “a public electricity supplier” there is substituted “ an electricity supplier ”.
In paragraph 3 (offences relating to use of meter), after sub-paragraph (1) there is inserted—
In paragraph 5(3) (certification without examination or testing of certain meters) the words “a public electricity supplier or by” shall cease to have effect.
In paragraph 6 (apparatus for testing etc. meters)—shall cease to have effect.
in sub-paragraph (1), the words “a public electricity supplier or”; and
sub-paragraph (5),
In paragraph 10 (meters to be kept in proper order)—
in sub-paragraph (1) for “belonging to” there is substituted “ provided by ”;
in sub-paragraph (2) for “let for hire or lent” there is substituted “ provided ”;
after sub-paragraph (2) there is inserted—; and
sub-paragraph (3) shall cease to have effect.
In paragraph 12 (pre-payment meters) for sub-paragraph (2) there is substituted—
Minor and consequential amendments
Gas Act 1986
The Gas Act 1986 is amended as follows.
In the following provisions, for “public gas transporter”, in each place where it appears, there is substituted “gas transporter” and for “public gas transporters” in each place where it appears, there is substituted “ gas transporters ”section 7A section 7B section 8 section 9 section 10 section 11 section 12 section 13 section 18 section 18A section 19 section 21 section 27A section 43 section 46 section 48 section 62 Schedule 2B Part I of Schedule 3 Schedule 4.
In section 19(6)(a), paragraph 5(2) of Schedule 2B and Part II of Schedule 3, in each place where it appears, for “public gas transporter’s” there is substituted “ gas transporter’s ”.
In section 5 (prohibition on unlicensed activities), in subsection (1)(a) and (c) for “public gas transporter” there is substituted “ gas transporter ”.
In section 7 (licensing of public gas transporters), in subsections (2)(b), (6)(b) and (9) for “public gas transporter” there is substituted “ gas transporter ”.
In section 7B (general provisions about licences), subsection (4)(d) (which provides for conditions in licences requiring the furnishing of information and is superseded by other provisions of this Act about information) shall cease to have effect. The repeal of subsection (4)(d) of section 7B is without prejudice to the generality of the power conferred by subsection (4)(a) of that section.
In section 7B(9)—
in paragraph (b)—
for “or extension” in both places where it appears, there is substituted “ , extension or restriction ”;
for “previously included” there is substituted “ includes ”; and
at the end of paragraph (b) there is inserted.
In section 15A (billing disputes)—
for “domestic customer” (in each place) there is substituted “ customer ”;
subsection (10) shall cease to have effect.
Section 24 (modification references to Competition Commission) is amended as follows.
In subsection (1)(a)(i) and subsection (1A)(a), for “required” there is substituted “ regulated ”.
In subsection (6) for “4 and 4A(1) and (2) above” there is substituted “ 4AA, 4AB and 4A ”.
In subsection (8) for “and 26 below” there is substituted “ , 26 and 26A ”.
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
In section 27A(1) (determination of certain disputes) for “domestic customer” there is substituted “ customer of a person authorised by a licence or exemption to supply gas ”.
In section 28(5)(a) (circumstances in which the Authority may not make or confirm an order under the section) for “4 or 4A above” there is substituted “ 4AA, 4AB or 4A ”.
In section 28 (orders for securing compliance with certain provisions), in the definition of “relevant requirement” in subsection (8)—
after “9(1)” there is inserted “ , (1A) ”;
after “12(1) or (6)” there is inserted “ , 16(10), ”
after “33B,” there is inserted “ 33BA, 33C, ”;
“33BB” is omitted;
for “or 33E” there is substituted “ , 33F, 41A or 41B ”; and
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
In section 33A (standards of performance in individual cases)—
for subsections (1) and (2) there is substituted—;
in subsection (3)(a), for “domestic customers” there is substituted “ customers or potential customers ”; and
in subsection (4), for “domestic customer” there is substituted “ customer or potential customer ” and after “failure” there is inserted “ and is of a prescribed description ”.
In section 33C (information with respect to levels of performance), in subsection (2)(b), for “may be so specified” there is substituted “ the Authority may direct ”.
Section 33E (procedures for dealing with complaints) shall cease to have effect.
In section 36(2) (keeping of register), in paragraph (c)—
the words “made otherwise than by order” shall be omitted; and
for “subsection (5)” there is substituted “ subsection (7) ”.
In section 38 (power to require information etc.)—
in subsection (1A) for “4 or 4A above” there is substituted “ 4AA, 4AB or 4A ”; and
in subsection (3) after “document” there is inserted “ or record ”.
In section 46(3), for “his authorised area” there is substituted “ any authorised area of his ”.
In section 48(1) (interpretation of Part I)—
after the definition of “authorised area” there is inserted—;
before the definition of “gas” there is inserted—;
the definition of “domestic customer” shall be omitted; and
for the definition of “licence” there is substituted—.
In section 62, after subsection (2A) there is inserted—.
In section 64(2) (orders) after “section” there is inserted “ 23, 30A, 33BC, 41A, 41C ”.
In section 66 (interpretation)—
after the definition of “the appointed day” there is inserted—; and
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
In Schedule 2B (the gas code), in paragraph 8—
sub-paragraphs (4), (5) and (6) shall be omitted;
in sub-paragraph (8) the words from “but this” to the end shall cease to have effect;
in sub-paragraph (11)—
for the words from “a revision” to “such an election” there is substituted “ or a revision of such a scheme ”; and
in paragraphs (a) and (b), for “, revision, election or withdrawal” there is substituted “ or revision ”.
Electricity Act 1989
The Electricity Act 1989 is amended as follows.
In section 12(7) (matters to which the Competition Commission is to have regard in making determinations) for “3 above” there is substituted “ 3A to 3C ”.
Section 23 (determination of disputes) is amended as follows.
For subsections (1) and (2) there is substituted—
After subsection (4) there is inserted—
After subsection (6) there is inserted—
In section 25(5)(a) (circumstances in which the Authority may not make or confirm an order under the section) for “3 above” there is substituted “ 3A to 3C ”.
In section 25 (orders for securing compliance with certain provisions), in the definition of “relevant requirement” in subsection (8), for the words “or section 40(3), 41(3), 42A or 42B below” there is substituted “ , or sections 32 to 32C, section 40, 40A, 42, 42A, 42C, 43A or 43B below or section 27(4)(b) of the Utilities Act 2000 (order to comply with a direction under section 24 of that Act). ”
Section 28 (power to require information etc.) is amended as follows.
After subsection (2) there is inserted—.
In subsection (3), after “documents” there is inserted “ or records ”.
In subsection (4), after “subsection (2)” there is inserted “ or (2A) ”.
In subsection (5)—
after “document” there is inserted “ or record ”;
after “subsection (2)” there is inserted “ or (2A) ”.
In subsection (6), after “subsection (2)” there is inserted “ or (2A) ”.
Section 29 (regulations relating to supply and safety of electricity) is amended as follows.
In subsection (1)(b), after “transmission” there is inserted “ , distribution ”.
In subsection (2)—
in paragraph (a) for “supply” there is substituted “ distribution ”;
in paragraph (b) for “of supplies or transmissions” there is substituted “ in the distribution or transmission ”;
in paragraph (c) for “supply” there is substituted “ distribute ”; and
in paragraph (d) for the words from “persons” to “supply” (in the second place it appears) there is substituted “ electricity distributors from any duty under section 16 or authorising them to disconnect any premises or distribution system ”.
Section 30 (electrical inspectors) is amended as follows.
In subsection (2)—
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
in paragraph (b) after “transmission” there is inserted “ , distribution ”;
in paragraph (c) for “supply of electricity through or by” there is substituted “ conveyance of electricity through ”.
In subsection (3)—
in paragraph (b) for “generate, transmit or supply electricity” there is substituted “ carry on licensable activities ”;
in paragraph (c) for the words from “persons” to “supply” (in the second place it appears) there is substituted “ electricity distributors from any duty under section 16 or authorising them to disconnect any premises or distribution system ”.
In section 39 (standards of performance in individual cases)—
for subsection (1) there is substituted—;
in subsection (2), for the words from “and may” to the end there is substituted “ and, if the Authority is of the opinion that the differences are such that no electricity supplier would be unduly disadvantaged in competing with other electricity suppliers, may make different provision for different electricity suppliers. ”;
in subsection (2)(a) and (c) for “public electricity suppliers” there is substituted “ electricity suppliers ”;
in subsections (3) and (4) for “a public electricity supplier” there is substituted “ an electricity supplier ”.
In section 40 (overall standards of performance)—
in subsection (1)(a) for “such” (in the second place it appears) there is substituted “ electricity ”;
in subsection (2) at the end there is inserted “ if the Authority is of the opinion that the differences are such that no electricity supplier would be unduly disadvantaged in competing with other electricity suppliers ”;
in subsection (2) for “public electricity suppliers” there is substituted “ electricity suppliers ”;
in subsection (3) for “public electricity supplier” there is substituted “ electricity supplier ”.
In section 42 (information with respect to levels of performance)—
in subsection (1) for “public electricity suppliers” there is substituted “ electricity suppliers ”;
in subsection (2) for “public electricity supplier” there is substituted “ electricity supplier ”;
in subsection (3) for “a public electricity supplier” there is substituted “ an electricity supplier ”.
Section 42B (procedures for dealing with complaints) shall cease to have effect.
Section 44A (billing disputes) is amended as follows.
In subsection (2)—
for “a public electricity supplier” there is substituted “ an electricity supplier ”;
for “tariff customer” there is substituted “ customer ”.
In subsection (8)—
for “public electricity supplier” there is substituted “ electricity supplier ”;
for “tariff customer” there is substituted “ customer ”.
In section 59 (making of false statements etc.) in subsection (2)(a), for “a public electricity supplier” there is substituted “ , or other person acting on behalf of, an electricity distributor or electricity supplier ”.
Section 64(1) (interpretation of Part I) is amended as follows.
After the definition of “authorised area” there is inserted—.
In the definition of “electrical plant” after “transmission” there is inserted “ , distribution ”.
After the definition of “electric line” there is inserted—““electricity distributor” and“electricity supplier” have the meanings given by section 6(9)”.
After the definition of “licence” there is inserted—““licensable activity” means an activity which, if carried on without the authority of a licence or exemption, constitutes an offence under section 4(1);”.
In the definition of “prescribed”, for the words from “except” to “made” there is substituted “ means prescribed by regulations made, unless the context otherwise requires, ”.
After the definition of “relevant condition” there is inserted—““special connection agreement” means a special agreement under section 22;”.
The definition of “private electricity supplier”, the definition of “public electricity supplier” and the definition of “tariff customer” shall be omitted.
In section 111(1) (interpretation)—
after the definition of “Area Board” there is inserted—; and
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other Acts
Rights of Entry (Gas and Electricity Boards) Act 1954 (c. 21)
The Rights of Entry (Gas and Electricity Boards) Act 1954 is amended as follows.
In section 1(2) (restriction on exercise of rights), for “a public electricity supplier” there is substituted “ an electricity operator ”.
In section 2(1) (warrants)—
for paragraph (a) there is substituted—; and
for the words “supplier or any employee of the operator or supplier” (in paragraph (b) and the words following paragraph (c)) there is substituted “ any employee of the operator ”.
In section 2(3) for “a public electricity supplier” there is substituted “ an electricity operator ”.
In section 3 (interpretation)—
in the definition of “employee”, for paragraph (b) there is substituted—;
for the definition of “public electricity supplier” there is substituted—.
Public Records Act 1958 (c. 51)
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Parliamentary Commissioner Act 1967 (c. 13)
In Schedule 2 to the Parliamentary Commissioner Act 1967 (departments and authorities subject to investigation), the following entries are inserted at the appropriate places—;
Superannuation Act 1972 (c. 11)
In Schedule 1 to the Superannuation Act 1972, in the list of “Other Bodies” the following entry is inserted at the appropriate place—“The Gas and Electricity Consumer Council.”.
Section 1 of that Act (persons to or in respect of whom benefits may be provided by schemes under that section) shall apply to persons who at any time before the abolition of the Gas Consumers’ Council have ceased to serve in employment with that Council.
House of Commons Disqualification Act 1975 (c. 24)
In Part II of Schedule 1 to the House of Commons Disqualification Act 1975 (bodies of which all members are disqualified), the following entries are inserted at the appropriate places—“The Gas and Electricity Markets Authority.”;“The Gas and Electricity Consumer Council.”;“A regional committee of the Gas and Electricity Consumer Council established under section 18(2) of the Utilities Act 2000.”
Bankruptcy (Scotland) Act 1985 (c. 66)
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Insolvency Act 1986 (c. 45)
The Insolvency Act 1986 is amended as follows.
In section 233 (supplies of gas, water, electricity etc)—
in subsection (3), for paragraph (b) there is substituted—; and
subsection (5)(b) shall be omitted.
In section 372 (supplies of gas, water, electricity etc in cases of individual insolvency)—
in subsection (4), for paragraph (b) there is substituted—; and
subsection (5)(b) shall be omitted.
Transitional provisions and savings
Separation of electricity supply and distribution
Application and purpose of Part I
This paragraph applies to any holder of an existing supply licence under section 6(1)(c) or (2) of the 1989 Act whose activities, immediately before the passing of this Act, include both—
the supply of electricity to premises; and
the distribution of electricity for the purpose of giving a supply to premises or enabling a supply to be so given.
This Part of this Schedule has effect for the purpose of enabling the existing supply licence held by such a licence holder to have effect as if it were a distribution licence under section 6(1)(c) and a supply licence under section 6(1)(d), each granted to different persons.
Those persons must be—
the licence holder and one of his associates nominated for the purpose of holding whichever of the licences mentioned in sub-paragraph (2) is not to be retained by the licence holder; or
any two associates of the licence holder nominated by him for the purpose of holding those licences.
If immediately before the passing of this Act a person to whom this paragraph applies holds two or more existing supply licences, sub-paragraph (2) applies in relation to such one or more of those licences as the licence holder may, with the approval of the Secretary of State, nominate.
If immediately before the passing of this Act a person to whom this paragraph applies—the provisions of this Part of this Schedule also have effect, if that person makes either or both of the nominations mentioned in sub-paragraph (6), for either or both of the purposes mentioned in sub-paragraph (6)(a) and (6)(b).
generates electricity in pursuance of an existing generation licence; and
transmits electricity in pursuance of an existing transmission licence,
Those purposes are securing that—
the licence holder’s existing generation licence has effect as if it were a generation licence granted to an associate of his nominated by him for the purpose; and
the licence holder’s existing transmission licence has effect as if it were a transmission licence granted to an associate of his nominated by him for the purpose.
The same associate may not be nominated both for the purpose of sub-paragraph (6)(a) and for the purpose of sub-paragraph (3)(a) or (b) or (6)(b).
Nominations and transfer schemes
Before such date as the Secretary of State may direct, a person to whom paragraph 1 applies may (subject to paragraph 3)—and in this Part of this Schedule the person who makes such a scheme is referred to as “the supplier”.
make a nomination for the purposes of paragraph (a) of paragraph 1(3) and make a scheme for the division of all his property, rights and liabilities between himself and the associate nominated under that paragraph; or
make two nominations for the purposes of paragraph (b) of paragraph 1(3) and make a scheme for the division of all his property, rights and liabilities between himself and the associates so nominated;
A scheme under sub-paragraph (1) (referred to in this Part of this Schedule as “a transfer scheme”) may—
define the property, rights and liabilities to be allocated to a nominated associate—
by specifying or describing the property, rights and liabilities in question;
by referring to all (or all but as much as may be excepted) of the property, rights and liabilities comprised in a specified part of the supplier’s undertaking; or
partly in the one way and partly in the other;
provide that any rights or liabilities specified or described in the scheme shall be enforceable either by or against any one or more of the persons between whom the supplier’s property, rights and liabilities are being divided;
impose on any of those persons an obligation to enter into such written agreements with, or execute such other instruments in favour of the other such person or, where sub-paragraph (1)(b) applies, either or both of the other such persons as may be specified in the scheme; and
make such supplemental, incidental and consequential provision as the supplier considers appropriate.
Without prejudice to the generality of sub-paragraph (2)(d), a transfer scheme may, in relation to transfers or transactions effected in pursuance of the scheme, make provision, either generally or for specified purposes—
for the transfers or transactions to be regarded as taking place in a specified order; and
for the nominated associate or, where sub-paragraph (1)(b) applies, either or both of the nominated associates to be treated as the same person in law as the supplier.
An obligation imposed by a provision included in a transfer scheme by virtue of sub-paragraph (2)(c) shall be enforceable by civil proceedings by the person or persons to whom it is owed for an injunction or for interdict or for any other appropriate relief or remedy.
A transaction of any description which is effected in pursuance of a provision included in a transfer scheme by virtue of sub-paragraph (2)(c)—In this sub-paragraph “statutory requirements” means requirements imposed by or under any Act or any Act of the Scottish Parliament.
shall have effect subject to any statutory requirements for transactions of that description to be registered in any statutory register; but
subject to that, shall be binding on all other persons, notwithstanding that it would, apart from this sub-paragraph, have required the consent or concurrence of any other person.
Where a lease of any land is granted in pursuance of a provision included in a transfer scheme by virtue of sub-paragraph (2)(c), any right of pre-emption or other like right affecting that land—
shall not become exercisable by reason of the grant of the lease; but
shall have effect as if the lessee were the same person in law as the lessor.
If the supplier is a supplier to whom paragraph 1(5) applies, he may, before such date as the Secretary of State may direct—
make such nomination or nominations as he thinks fit for either or both of the purposes mentioned in paragraph 1(6); and
include the associate or associates so nominated among the persons between whom his property, rights and liabilities may be divided by the transfer scheme.
Paragraph 2 applies to a transfer scheme dividing property, rights and liabilities between persons including persons nominated for the purposes of paragraph 1(6) with the substitution—of the words “any one or more”.
in sub-paragraph (2)(c) for the words from “the other such” to “both”; and
in sub-paragraph (3)(b) for the words from “the” (in the first place it appears) to “both”,
The Secretary of State may, on the application of a person to whom paragraph 1 applies, direct that paragraphs 1 and 2 are to apply to his existing supply licence (or such of his existing supply licences as may be nominated under paragraph 1(4)) as if—
in paragraph 1(2) for “a distribution licence” there were substituted “ two distribution licences ”;
in paragraph 1(3) for “one” there were substituted “ two ” and for “two” there were substituted “ three ”;
in paragraph 2(1)(a) for “a nomination” and “associate” there were substituted respectively “ two nominations ” and “ associates ”; and
in paragraph 2(1)(b) for “two” there were substituted “ three ”.
Secretary of State’s powers in relation to transfer schemes
A transfer scheme shall not take effect unless it is approved by the Secretary of State.
The Secretary of State may if he thinks fit, before approving a transfer scheme, make such modifications of the scheme as he considers appropriate for the purpose of securing that the scheme makes only such provision as he considers to be requisite or expedient for the purposes of this Part of this Schedule.
The powers of the Secretary of State under this paragraph may in particular be exercised with a view to ensuring that a proposed transfer scheme does not operate against the public interest.
It shall be the duty of the supplier to provide the Secretary of State with all such information and other assistance as he may require for the purposes of or in connection with the exercise of any function conferred on him by sub-paragraph (1) and (2).
Effect of transfer scheme
Subject to the provisions of paragraph 7, on the effective date for a transfer scheme, all property, rights and liabilities—shall become by virtue of this paragraph property, rights and liabilities of that associate.
to which immediately before that day the supplier was entitled or subject; and
which are allocated to a nominated associate by the transfer scheme,
Supplementary provisions as to transfers
The provisions of Schedule 10 to the 1989 Act (supplementary provisions as to transfers) shall apply to any transfer which is effected by paragraph 6—and paragraph 6 shall have effect subject to those provisions as so modified.
with the modifications made by sub-paragraph (2); and
to the extent mentioned in those provisions as so modified;
For the purpose of its application to a transfer effected by paragraph 6, Schedule 10 to the 1989 Act shall apply as if—
paragraphs 2(4) and (5), 3 and 6(2) and in paragraphs 4(4)(b) and 8(1) and (2) the words “or of a direction under paragraph 2(4) above” were omitted;
any reference to transfers effected in pursuance of a transfer scheme were references to transfers effected by paragraph 6;
any reference to the transferor were a reference to the supplier;
any reference to a transfer of all property, rights and liabilities comprised in a specified part of the transferor’s undertaking were a reference to a transfer of all (or all but as much as may be excepted) of the property, rights and liabilities comprised in a specified part of the supplier’s undertaking;
any reference to a transferee of a specified part or any other part of the transferor’s undertaking were a reference to a transferee of a specified part or any other part of the supplier’s undertaking; and
any reference to the transfer date were a reference to the effective date for the transfer scheme.
For the purposes of sub-paragraphs (1) and (2)(b), (d) and (e), any property, rights or liabilities retained by the supplier in pursuance of the transfer scheme shall be deemed to be transferred to the supplier by paragraph 6 in pursuance of the scheme.
Shares issued in pursuance of a transfer scheme
Any shares issued to the supplier or to an associate of his by a transferee in pursuance of the transfer scheme—
shall be of such nominal value as may be specified in or determined under the scheme;
shall be issued or allotted on such terms as may be so specified or determined; and
shall be issued as fully paid and treated for the purposes of the Companies Act 1985 as if they had been paid up by virtue of the payment to the transferee in cash of their nominal value and, if the scheme so provides, such premium as may be so specified or determined.
Statutory accounts
This paragraph has effect for the purposes of any statutory accounts of a transferee, that is to say, any accounts prepared by the transferee for the purpose of any provision of the Companies Act 1985 (including group accounts).
Subject to sub-paragraph (3), the value or amount to be assigned to any asset or liability which is vested in the transferee by virtue of paragraph 6 shall be—
the value or amount (if any) assigned to the asset or liability for the purposes of the corresponding statement of accounts prepared by the supplier in respect of the last complete accounting year of the supplier to end before the effective date; or
if the asset or liability is part only of an asset or liability to which a value or amount is so assigned, so much of that value or amount as may be determined by or under the transfer scheme; or
if no value or amount is given by paragraph (a) or (b) or the value or amount so given is inappropriate in all the circumstances of the case, such value or amount as may be determined, on the basis of the supplier’s accounting records, by or under the transfer scheme.
The amount to be included in respect of any item shall be determined as if so much of anything done by the supplier (whether by way of acquiring, revaluing or disposing of any asset or incurring, revaluing or discharging any liability, or by carrying any amount to any provision or reserve, or otherwise) as may be determined by or under the transfer scheme had been done by the transferee.
Without prejudice to the generality of the preceding provisions of this paragraph, the amount to be included from time to time in any reserves of the transferee as representing the transferee’s accumulated realised profits shall be determined as if such proportion of any profits realised and retained by the supplier as is determined by or under the transfer scheme had been realised and retained by the transferee.
In this paragraph, in relation to the supplier—“accounting records” means accounting records kept by the supplier in pursuance of section 221 of the Companies Act 1985;“complete accounting year” means a financial year of the supplier determined in accordance with section 223 of that Act.
Consequential modifications of rating provisions
This paragraph applies where any transfer effected by paragraph 6 is a transfer of a hereditament which, immediately before the effective date is a hereditament which falls within—
the description set out in Part 2 of the Schedule to the Central Rating List (England) Regulations 2000; or
the description set out in Part 2 of the Schedule to the Central Rating List (Wales) Regulations 1999.
The Secretary of State may by order make such modifications of that Part of that Schedule, and of the Electricity Supply Industry (Rateable Values)(England) Order 2000 or the Electricity Supply Industry (Rateable Values)(Wales) Order 2000, as may appear to him necessary or expedient as a consequence of the transfer.
An order under this paragraph which is made after the effective date may have effect as from that day or any later day.
Where, by virtue of sub-paragraph (3), an order under this paragraph has effect from a day earlier than that on which it is made, any necessary alteration shall be made with effect from that earlier day to any central rating list in which the hereditament is shown.
An order under this paragraph shall be made by statutory instrument which shall be subject to annulment in pursuance of a resolution of either House of Parliament.
Interpretation
In this Part of this Schedule—“effective date” has the meaning given by paragraph 6(2);“existing” in relation to an electricity licence, means in force immediately before the passing of this Act;“the supplier” means the person who makes a transfer scheme;“transferee” means the transferee under a transfer effected by paragraph 6;“transfer scheme” means a scheme under paragraph 2.
For the purposes of this Part of this Schedule a company is an associate of the supplier if—and the company is registered under the Companies Act 1985 as a company limited by shares.
the company is a wholly owned subsidiary of the supplier;
the supplier is a wholly owned subsidiary of the company; or
the company and the supplier are both wholly owned subsidiaries of another company;
The references in sub-paragraph (2) to a wholly owned subsidiary shall be construed in accordance with section 736 of the Companies Act 1985.
Secretary of State’s licensing schemes
Existing electricity supply licences
This paragraph applies to any holder of an existing supply licence under section 6(1)(c) or (2) of the 1989 Act (“the supplier”) who has made a transfer scheme under paragraph 2.
for the supplier’s existing supply licence to have effect as mentioned in paragraph 1(2); and
if the supplier has nominated an associate or associates for either or both of the purposes of paragraph 1(6), for either or both of his existing generation and transmission licences to have effect as mentioned in paragraph 1(5).
In making a scheme under this paragraph, the Secretary of State shall have regard to the provisions of the supplier’s transfer scheme.
A scheme under this paragraph shall have no effect in relation to an existing supply licence if the supplier’s transfer scheme does not take effect.
In this paragraph “existing”, in relation to a licence, means in force immediately before the passing of this Act.
The Secretary of State shall as soon as practicable after the passing of this Act make a scheme under this paragraph in relation to existing licences under section 6(1)(c) of the 1989 Act which—
are held by a person whose activities include both of those mentioned in paragraph 1(1); and
are not the subject of a scheme under paragraph 13.
A scheme under this paragraph shall provide for each licence to which it relates to have effect on and after such date as the scheme may specify as if it were—
a distribution licence and a supply licence, each granted to the holder of the existing licence;
a distribution licence; or
a supply licence.
In this paragraph “existing”, in relation to a licence, means in force immediately before the date mentioned in sub-paragraph (1).
The Secretary of State shall as soon as practicable after the passing of this Act make a scheme, in relation to existing licences under section 6(1)(c) of the 1989 Act other than licences which—providing for each such licence to have effect on and after such date as the scheme may specify as if it were a supply licence.
are the subject of a scheme under paragraph 13; or
fall within paragraph 14(1),
In this paragraph “existing”, in relation to a licence, means in force immediately before the date mentioned in sub-paragraph (1).
The Secretary of State shall as soon as practicable after the passing of this Act make a scheme, in relation to existing licences under section 6(2) of the 1989 Act, providing for each such licence to have effect on and after such date as the scheme may specify as if it were—
a supply licence; or
an exemption from section 4(1)(c) of the 1989 Act granted under section 5 of that Act (exemptions from prohibition).
In this paragraph “existing”, in relation to a licence, means in force immediately before the date mentioned in sub-paragraph (1).
Subject to sub-paragraph (2), a scheme under paragraph 13, 14, 15 or 16 shall secure that each condition which by virtue of section 33(1) is a standard condition for the purposes of licences of the appropriate type is incorporated in any licence to be treated by virtue of the scheme as a supply licence or a distribution licence and, where the scheme makes the provision mentioned in paragraph 13(2)(b), in any licence to be treated as a generation licence or as a transmission licence.
Such a scheme may provide that each licence, and in the case of a scheme under paragraph 16 each exemption, which is to be treated as granted by virtue of the scheme (including both the terms and conditions of the licence or exemption which are derived from the existing licence and, in the case of a licence, the standard conditions which would otherwise be incorporated by virtue of sub-paragraph (1)) shall have effect with—
such incidental, consequential and supplementary amendments as appear to the Secretary of State to be necessary or expedient;
such amendments relating to the revocation of the licence or exemption as the Secretary of State thinks fit; and
such other amendments (if any) as may be agreed between the Secretary of State and the holder of the existing licence from which the licence or exemption is derived.
Such a scheme may—
make such transitional provision as appears to the Secretary of State to be necessary or expedient; and
make different provision for different cases or classes of cases determined by, or in accordance with, the provisions of the scheme.
As soon as practicable after making such a scheme the Secretary of State shall publish, as respects each different case or class of case—
the text of each licence which is to be treated as a licence granted by virtue of the scheme; and
in the case of a scheme under paragraph 16, the text of any exemption which is to be treated as granted by virtue of the scheme.
Any text so published shall be treated as authoritative unless the contrary is shown.
Existing generation and transmission licences
The Secretary of State may, before the day on which section 30 comes into force, make one or more schemes for securing (subject to sub-paragraph (2)) that, on and after that day, the standard conditions which by virtue of section 33(1) are standard conditions for the purposes of licences of the appropriate type are incorporated in each generation licence and each transmission licence which is in force immediately before that day.
A scheme under this paragraph may provide that the terms and conditions of any existing licence to which it relates (including the standard conditions which would otherwise be incorporated by virtue of sub-paragraph (1)) shall have effect with—
such incidental, consequential and supplementary amendments as appear to the Secretary of State to be necessary or expedient;
such amendments relating to the revocation of the licence as the Secretary of State thinks fit; and
such other amendments (if any) as may be agreed between the Secretary of State and the holder of the licence.
A scheme under this paragraph may—
make such transitional provision as appears to the Secretary of State to be necessary or expedient; and
make different provision for different cases or classes of cases determined by, or in accordance with, the provisions of the scheme.
As soon as practicable after making such a scheme the Secretary of State shall publish, as respects each different case or class of case, the text on the commencement of section 30 of each licence to which the scheme relates as it has effect by virtue of the scheme.
Any text so published shall be treated as authoritative unless the contrary is shown.
Existing gas licences
The Secretary of State may, before the day on which section 81(2) comes into force, make one or more schemes for securing (subject to sub-paragraph (2)) that on and after that day the standard conditions which by virtue of section 81(2) are standard conditions for the purposes of gas licences of any type are incorporated in each gas licence of that type which is in force immediately before that day.
A scheme under this paragraph may provide that the terms and conditions of any existing licence to which it relates (including both the terms and conditions of that licence and the standard conditions which would otherwise be incorporated by virtue of sub-paragraph (1)) shall have effect with—
such incidental, consequential and supplementary amendments as appear to the Secretary of State to be necessary or expedient;
such amendments relating to the revocation of the licence as the Secretary of State thinks fit; and
such other amendments (if any) as may be agreed between the Secretary of State and the holder of the licence.
Such a scheme may—
make such transitional provision as appears to the Secretary of State to be necessary or expedient; and
make different provisions for different cases or classes of cases determined by, or in accordance with, the provisions of the scheme.
As soon as practicable after making a scheme under this paragraph, the Secretary of State shall publish, as respects each different case or class of case, the text on the commencement of section 81(2) of each gas licence to which the scheme relates.
Any text so published shall be treated as authoritative unless the contrary is shown.
Effect of licensing schemes
On the day on which a scheme under this Part of this Schedule comes into operation, the licences to which it relates shall have effect as provided for by the scheme.
The modification under paragraph 17(2), 18(2) or 19(2) of part of what would otherwise be a standard condition of—shall not prevent any other part of the condition which is not so modified being regarded as a standard condition for the purposes of Part I of the 1989 Act or Part I of the 1986 Act, as the case may be.
a licence to be treated as granted by virtue of a scheme under paragraph 13, 14 or 15; or
a licence to which a scheme under paragraph 16, 18 or 19 relates,
Provision of information by licence holders
It shall be the duty of each holder of a licence under the 1986 Act to provide the Secretary of State with all such information and other assistance as he may require for the purposes of or in connection with the exercise of any function conferred on him by paragraph 19 in relation to such licences.
It shall be the duty of each holder of a licence under the 1989 Act to provide the Secretary of State with all such information and other assistance as he may require for the purposes of or in connection with the exercise of any function conferred on him by this Part of this Schedule in relation to such licences.
Consultation by Secretary of State
The Secretary of State shall not exercise any function conferred on him by this Part of this Schedule except after consultation with—
the Authority; and
such holders of licences under the 1986 Act or such holders of licences under the 1989 Act as he considers appropriate.
Former tariff customers
This paragraph applies where immediately before the commencement date a public electricity supplier (“the supplier”) is supplying tariff customers with electricity.
The supplier’s supply successor shall be deemed to have contracted with those customers for the supply of electricity as from that day.
The express terms and conditions of a contract which, by virtue of sub-paragraph (2), is deemed to have been made by the supplier shall be provided for by the scheme under this paragraph which relates to that supplier.
Before such date as the Secretary of State may direct, the supplier shall make a scheme for determining the terms and conditions which are to be incorporated in the contracts which, by virtue of sub-paragraph (2), are to be deemed to have been made by the supplier.
A scheme under this paragraph may (subject to section 7B of the 1989 Act)—
make different provisions for different cases or classes of cases, or for different areas, determined by, or in accordance with, the provisions of the scheme; and
make such supplemental, incidental, consequential and transitional provisions as the supplier considers appropriate.
A scheme under this paragraph shall not take effect unless it is approved by the Authority; and the Authority may modify such a scheme before approving it.
If, in relation to such a scheme—the Authority may itself make the scheme.
the supplier fails, before the date specified under sub-paragraph (4), to submit the scheme for the approval of the Authority; or
the Authority decides not to approve the scheme that has been submitted by the supplier (either with or without modifications),
It shall be the duty of the supplier to provide the Authority with all such information and other assistance as it may require for the purposes of or in connection with the exercise of any function conferred by sub-paragraph (6) or (7).
The Authority shall not exercise any function conferred by sub-paragraph (6) or (7) except after consultation with the supplier.
A scheme made under this paragraph shall be published in the London and Edinburgh Gazettes before the commencement date and shall come into operation on that date; and conclusive evidence of a scheme so made may be given in all courts of justice and in all legal proceedings whatever by the production of a copy of either of those Gazettes purporting to contain it.
In this paragraph—“commencement date” means the date on which section 45 comes into force; and“supply successor”, in relation to a public electricity supplier, means the person who becomes an electricity supplier by virtue of a scheme made by or in relation to that public electricity supplier under Part II of this Schedule.
Other transitional provisions and savings
Compensation for members of abolished consumer bodies
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Consultation by Council before establishing regional committees
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
First financial years of Authority and Council
In this paragraph “the body” means the Authority ....
If the period beginning with the day on which the body is established and ending with the next 31st March is six months or more, the first financial year of the body is that period.
If the period mentioned in sub-paragraph (2) is less than six months, the first financial year of the body is the period beginning with the day on which the body is established and ending with 31st March in the following year.
First forward work programmes of Authority and Council
The Authority’s first forward work programme required by section 4(1) shall relate to the financial year following its first financial year.
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Last annual reports of the Directors
After the abolition of the offices of Director General of Gas Supply and Director General of Electricity Supply, any duty of either Director to make an annual report, in relation to any calendar year for which such a report has not been made, shall be carried out by the Authority.
The period between the abolition of those offices and the end of the preceding calendar year (if less than 12 months) shall be treated as the calendar year for which the last annual reports are required.
If that period is nine months or more, the Authority shall make the last annual reports as soon as practicable after the end of that period.
If that period is less than nine months, the last annual reports shall be made no later than the first report of the Authority under section 5(1).
In this paragraph “annual reports” means reports required by section 39(1) of the 1986 Act and section 50(1) of the 1989 Act.
Last annual report of the Gas Consumers’ Council
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Investigations being carried out under the 1986 Act
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Investigations being carried out under the 1989 Act
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Repeals