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:—
Gas Importation and Storage
The rights to which this section applies have effect, by virtue of this section, as rights belonging to Her Majesty.
This section applies to the rights under Part V of the Convention that are exercisable by the United Kingdom in areas outside the territorial sea—
with respect to any of the matters mentioned in subsection (3), or
for any other purposes connected with any of those matters.
The matters are—
the exploitation of those areas for the unloading of gas to installations or pipelines;
the exploitation of those areas for the storing of gas (whether or not with a view to its being recovered), or the recovery of gas so stored;
the exploration of those areas with a view to their exploitation as mentioned in paragraph (a) or (b).
For the purposes of subsection (3), references to gas include any substance which consists wholly or mainly of gas.
The area within which the rights to which this section applies are exercisable (the “Gas Importation and Storage Zone”)—
is any area for the time being designated under section 41(3) of the Marine and Coastal Access Act 2009 (exclusive economic zone), but
if Her Majesty by Order in Council declares that the Gas Importation and Storage Zone extends to such other area as may be specified in the Order, is the area resulting from the Order.
In this section—“the Convention” means the United Nations Convention on the Law of the Sea 1982 (Cmnd 8941) and any modifications of that Convention agreed after the passing of this Act that have entered into force in relation to the United Kingdom;“gas” means any substance which is gaseous at a temperature of 15°C and a pressure of 101.325 kPa (1013.25 mb);“installation” includes any floating structure or device maintained on a station by whatever means.
Activities requiring a licence
No person may carry on an activity within subsection (3) except in accordance with a licence.
The activities are—
the use of a controlled place for the unloading of gas to an installation or pipeline;
the use of a controlled place for the storage of gas;
the conversion of any natural feature in a controlled place for the purpose of storing gas;
the recovery of gas stored in a controlled place;
the exploration of a controlled place with a view to, or in connection with, the carrying on of activities within paragraphs (a) to (d);
the establishment or maintenance in a controlled place of an installation for the purposes of activities within this subsection.
In this section—“controlled place” means a place in, under or over—the territorial sea, or waters in a Gas Importation and Storage Zone (within the meaning of section 1(5));“gas” means any combustible substance which is gaseous at a temperature of 15°C and a pressure of 101.325 kPa (1013.25 mb) and which consists wholly or mainly of—methane, ethane, propane, butane, a substance designated for the purposes of this section by an order made by the Secretary of State, or a mixture of two or more of the substances mentioned in paragraphs (a) to (e).
This Chapter does not apply in relation to—
the use of a controlled place for the unloading of gas to an installation which is connected with land by a permanent structure providing access at all times and for all purposes;
the conversion of a natural feature of which part is in a controlled place and part under land, if the operations necessary for the conversion take place wholly or mainly on, over or under land;
the use of a place for the storage of gas, or the recovery of gas so stored, where—
the gas was, or is to be, introduced into the store by means of a well on land, and
part of the place is a controlled place and part is under land;
the establishment or maintenance of an installation for the purposes of activities falling within paragraph (a).
In this section—“land” means—land in England; land in Wales; land in Scotland landward of the low water mark;“well” includes a borehole.
The prohibition in section 2(1) does not apply to a person (“A”) who uses a controlled place for the unloading of gas to an installation if—
the installation is maintained by another person (“B”) who has a licence in respect of the maintenance of the installation and the use of a controlled place for the unloading of gas to it, and
B consents to the use by A of the controlled place for the unloading of gas to the installation.
Licensing
The OGA may grant a person a licence in respect of one or more activities within section 2(3).
The controlled place in respect of which a licence is granted may be determined by reference to the provisions of a Crown lease which has been or may be granted.
For this purpose “Crown lease” means (as the case may be)—
a lease of property forming part of the Crown Estate, or an authorisation to exercise rights forming part of that Estate (whether by virtue of section 1 or otherwise), or
a lease of property forming part of the Scottish assets, or an authorisation to exercise rights forming part of those assets (whether by virtue of section 1 or otherwise).
In subsection (3), “Scottish assets” means any property, rights and interests to which section 90B(5) of the Scotland Act 1998 applies.
The Secretary of State may by regulations—
prescribe the persons, or classes of persons, by whom an application for a licence may be made;
prescribe requirements which must be met by, or in relation to, a person who makes an application;
prescribe the manner in which an application must be made;
prescribe the information which an application must contain and any documents which must accompany it;
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Before making any regulations under this section, the Secretary of State must consult the OGA.
A licence may be granted on such terms and subject to such conditions as the OGA considers appropriate.
The provisions of a licence may be expressed by reference to provision made in a Crown lease, and, in particular, may provide—
for the commencement of the licence to be conditional upon the commencement of a Crown lease which has been or may be granted in respect of the controlled place to which the licence relates or any part of that place;
for the period of the licence to be determined by reference to the period of such a Crown lease.
A licence may authorise, in such circumstances and subject to such conditions as are specified, the transfer of the licence to another person (or the inclusion of another person as a joint licence holder).
The provisions of a licence may include—
provision requiring the licence holder to obtain the prior written consent of the OGA or another person for specified acts or omissions;
provision providing that any such consent may be given subject to conditions.
The conditions imposed on a consent by virtue of subsection (4)(b) may include conditions requiring, or otherwise providing for, the modification of the licence in such manner as the OGA considers appropriate.
In this section—“Crown lease” has the same meaning as in section 4;“specified”, in relation to a licence, means specified in, or determined in accordance with, the licence.
The Secretary of State may make regulations prescribing model clauses for licences.
Subject to subsection (3), the model clauses, as they have effect at the time a licence is granted, are deemed to be incorporated into the licence.
The OGA may decide to exclude or modify one or more of those model clauses in the case of a particular licence.
Before making any regulations under this section, the Secretary of State must consult the OGA.
Enforcement
It is an offence for a person to carry on an activity within section 2(3) at a controlled place unless, at the time the activity is carried on, that person—
has a licence for the carrying on of that activity at that place, or
is carrying on the activity on behalf of a person who has such a licence.
It is an offence for a person to cause or permit another person to commit an offence under subsection (1).
But subsections (1) and (2) are subject to section 3.
A person guilty of an offence under this section is liable—
on summary conviction, to a fine not exceeding the statutory maximum, or
on conviction on indictment, to a fine.
An offence is committed by a licence holder if—
a thing is done for which the licence specifies that the prior consent of the OGA or any other person is required, without that consent first having been obtained;
such a thing is done in circumstances where that consent was obtained subject to conditions and those conditions have not been satisfied;
the licence holder fails to keep records, give a notice or make a return or report, in accordance with the provisions of the licence;
the licence holder breaches any other provision of the licence which is specified, or of a description specified, in an order made by the Secretary of State.
In proceedings against a person for an offence under subsection (1), it is a defence for the person to prove that due diligence was exercised to avoid committing the offence.
It is an offence for a person to make a statement which the person knows to be false, or recklessly to make a statement which is false, in order to obtain—
a licence, or
the consent of the OGA or any other person for the purposes of any requirement imposed by virtue of section 6(4).
It is an offence for a person to fail to disclose information which the person knows, or ought to know, to be relevant to an application for—
a licence, or
the consent of the OGA or any other person for the purposes of any requirement imposed by virtue of section 6(4).
A person guilty of an offence under this section is liable—
on summary conviction, to a fine not exceeding the statutory maximum, or
on conviction on indictment, to a fine.
This section applies if a licence holder fails to comply with any provision of the licence.
The OGA may direct the licence holder to take steps which the OGA considers necessary or appropriate to comply with the provision within a period specified in the direction.
The OGA must consult the licence holder before giving a direction under subsection (2).
If the licence holder fails to comply with a direction under subsection (2), the OGA may—
comply with the direction on behalf of the licence holder, or
make arrangements for another person to do so.
A person taking action by virtue of subsection (4) may—
do anything which the licence holder could have done, and
recover from the licence holder any reasonable costs incurred in taking the action.
A person (“P”) liable to pay any sum by virtue of subsection (5)(b) must also pay interest on that sum for the period beginning with the day on which the person taking action by virtue of subsection (4) notified P of the sum payable and ending with the date of payment.
The rate of interest payable in accordance with subsection (6) is a rate determined by the OGA as comparable with commercial rates.
The licence holder must provide a person taking action by virtue of subsection (4) with such assistance as the OGA may direct.
The power to give a direction under this section is without prejudice to any provision made in the licence with regard to the enforcement of any of its provisions.
It is an offence for a person to fail to comply with a direction under section 10, unless the person proves that due diligence was exercised in order to avoid the failure.
A person guilty of an offence under subsection (1) is liable—
on summary conviction, to a fine not exceeding the statutory maximum, or
on conviction on indictment, to a fine.
Where the OGA considers it necessary or expedient to restrain any actual or apprehended breach of section 2(1), the OGA may apply to the court for an injunction or, in Scotland, an interdict.
An application may be made whether or not the OGA has exercised or is proposing to exercise any of the other powers under this Chapter.
On an application under subsection (1), the court may grant such an injunction or interdict as the court thinks appropriate for the purpose of restraining the breach.
Rules of court may provide for an injunction or interdict to be issued against a person whose identity is unknown.
In this section “the court” means—
the High Court, or
in Scotland, the Court of Session.
The OGA may appoint persons to act as inspectors to assist in carrying out the functions of the OGA under this Chapter.
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The Secretary of State may make regulations about—
the powers and duties of inspectors appointed under this section;
the powers and duties of any other person acting on the directions of the OGA in connection with a function under this Chapter;
the facilities and assistance to be accorded to persons mentioned in paragraph (a) or (b).
The powers conferred by virtue of subsection (3) may include powers of a kind specified in section 108(4) of the Environment Act 1995 (c. 25) (powers of entry, investigation, etc).
Any regulations under this section may provide for the creation of offences which are punishable—
on summary conviction by a fine not exceeding the statutory maximum or such lesser amount as is specified in the regulations, and
on conviction on indictment by a fine.
Before making any regulations under this section, the Secretary of State must consult the OGA.
Proceedings for a relevant offence may be taken, and the offence may for all incidental purposes be treated as having been committed, in any place in the United Kingdom.
Section 3 of the Territorial Waters Jurisdiction Act 1878 (c. 73) (restriction on prosecutions) does not apply to any proceedings for a relevant offence.
Proceedings for a relevant offence alleged to have been committed in a controlled place may not be instituted in England and Wales except—
by the Secretary of State or a person authorised by the Secretary of State, or
by or with the consent of the Director of Public Prosecutions.
Proceedings for a relevant offence alleged to have been committed in a controlled place may not be instituted in Northern Ireland except—
by the Secretary of State or a person authorised by the Secretary of State, or
by or with the consent of the Director of Public Prosecutions for Northern Ireland.
In the application of subsection (3) or (4) to an offence created by regulations under section 13—
the words “alleged to have been committed in a controlled place” are to be omitted, ...
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In this section “relevant offence” means an offence under this Chapter or created by regulations under section 13.
Supplementary
This section applies where there is a licence for the recovery of gas stored in a controlled place.
The OGA may give a direction in respect of the place or any part of it (“the relevant stratum”).
The effect of the direction is that any operations under the licence to recover gas from the relevant stratum are not to be regarded as resulting in the boring for or getting of petroleum for the purposes of Part 1 of the Petroleum Act 1998 (c. 17).
A direction may be given only if the OGA is satisfied that the amount of petroleum which exists in its natural condition in the relevant stratum is so small that it ought to be disregarded for the purposes of that Part.
Where a direction has effect, if the OGA ceases to be satisfied as mentioned in subsection (4), the OGA must give the licence holder a notice revoking the direction and specifying a time for the purposes of subsection (6).
Where a notice is given under subsection (5), the revocation of the direction takes effect—
if an application for a petroleum licence in respect of the relevant stratum is made by the licence holder before the specified time, immediately before the time the application is determined or withdrawn, and
in any other case, at the specified time.
Before giving or revoking a direction, the OGA must consult the licence holder.
In this section—“petroleum” means petroleum to which section 3 of the Petroleum Act 1998 (c. 17) applies;“petroleum licence” means a licence under that section authorising a person to bore for and get petroleum.
Interpretation
In this Chapter—“controlled place” has the meaning given by section 2(4);“gas” has the meaning given by section 2(4);“installation” includes any floating structure or device maintained on a station by whatever means;“licence”, except where the context otherwise requires, means a licence under section 4, and “licence holder” is to be construed accordingly.“the OGA” means the Oil and Gas Authority.
Activities requiring a licence
No person may carry on an activity within subsection (2) except in accordance with a licence.
The activities are—
the use of a controlled place for the storage of carbon dioxide (with a view to its permanent disposal, or as an interim measure prior to its permanent disposal);
the conversion of any natural feature in a controlled place for the purpose of storing carbon dioxide (with a view to its permanent disposal, or as an interim measure prior to its permanent disposal);
the exploration of a controlled place with a view to, or in connection with, the carrying on of activities within paragraph (a) or (b);
the establishment or maintenance in a controlled place of an installation for the purposes of activities within this subsection.
In this section, “controlled place” means a place in, under or over—
the territorial sea, or
waters in a Gas Importation and Storage Zone.
In this section, “controlled place” also includes a place—
in England, Wales or Northern Ireland, or
in, under or over so much of the internal waters of the United Kingdom as are adjacent to England, Wales or Northern Ireland.
In relation to Scotland, “controlled place” includes—
a place in Scotland, or
a place within the seaward limits of the territorial sea adjacent to Scotland.
Licensing
The licensing authority may grant a licence to a person in respect of one or more activities within section 17(2).
The licensing authority is—and in this Chapter references to the licensing authority in relation to a licence falling within paragraph (c), (cd) or (ce) are references to the person who grants the licence or, if the licence has not yet been granted, to whom the application for the licence was made.
in the case of a licence in respect of activities within section 17(2)(a) to (c) and a controlled place part of which is a Welsh controlled place and the rest of which is an English controlled place or an offshore UK-controlled place (or a combination of such places), either the Welsh Ministers or the OGA,
in the case of a licence in respect of activities within section 17(2)(a) to (c) and a controlled place part of which is a Northern Ireland controlled place and the rest of which is an offshore UK-controlled place, either the Department of Enterprise, Trade and Investment in Northern Ireland or the OGA, and
in the case of a licence in respect of activities within section 17(2)(d), whichever of the OGA, the Welsh Ministers, the Department of Enterprise, Trade and Investment in Northern Ireland or the Scottish Ministers licenses the activities for the purposes of which the installation is established or maintained;
The controlled place in respect of which a licence is granted may be determined by reference to the provisions of a Crown lease which has been or may be granted.
For this purpose a “Crown lease” means (as the case may be)—
a lease of property forming part of the Crown Estate, or an authorisation to exercise rights forming part of that Estate (whether by virtue of section 1 or otherwise), or
a lease of property forming part of the Scottish assets, or an authorisation to exercise rights forming part of those assets (whether by virtue of section 1 or otherwise).
In subsection (4), “Scottish assets” means any property, rights and interests to which section 90B(5) of the Scotland Act 1998 applies.
In this section—“English controlled place” means a controlled place in England or in, under or over so much of the internal waters of the United Kingdom as are adjacent to England;“Northern Ireland controlled place” means a controlled place in Northern Ireland or in, under or over so much of the internal waters of the United Kingdom as are adjacent to Northern Ireland;“Welsh controlled place” means a controlled place in Wales or in, under or over so much of the internal waters of the United Kingdom as are adjacent to Wales.
In this section, “Scottish controlled place” means—
a controlled place in Scotland, or
a controlled place within the seaward limits of the territorial sea adjacent to Scotland.
Each licensing authority may by regulations make provision about the circumstances in which it may grant licences, including—
provision about the requirements to be met by or in relation to an applicant, and
provision about any other requirements which must be met for a licence to be granted.
Regulations under subsection (1)(a) may, in particular—
prescribe the persons, or classes of persons, by whom an application for a licence may be made;
prescribe the manner in which an application must be made;
prescribe the information which an application must contain and any documents which must accompany it;
require an application to be accompanied by a fee of an amount prescribed by, or determined in accordance with, the regulations;
require an applicant, before a licence is granted, to make arrangements (whether by way of trust or otherwise) to provide financial security in respect of the applicant's future obligations relating to the activities under the licence (whether those obligations will or may arise under the licence or otherwise).
Where the licensing authority is the OGA—
regulations under subsection (1) are to be made by the Secretary of State (and not by the OGA),
the Secretary of State must consult the OGA before making the regulations, and
subsection (2)(d) does not apply.
In subsection (1) “licensing authority” does not include the Welsh Ministers or the Department of Enterprise, Trade and Investment in Northern Ireland.
A licence may be granted on such terms and subject to such conditions as the licensing authority considers appropriate, subject to regulations under section 21.
Subject to such regulations, a licence may, in particular, include provision of a kind mentioned in subsections (3) to (7).
A licence may include—
provision about the circumstances in which financial security (which may be provided by way of a trust or other arrangements) may be required in respect of the obligations mentioned in section 19(2)(e) (in addition to any security required by virtue of that section), and the form of any such security;
provision about the circumstances in which financial security may be released (in whole or in part);
provision enabling the licensing authority to review the licence in specified circumstances or at specified intervals;
provision enabling the licensing authority, after consulting the licence holder, to modify the licence in specified circumstances (with or without the consent of the licence holder);
provision preventing or enabling the licensing authority to prevent a licence holder, in specified circumstances, from carrying on an activity in respect of which the licence was granted;
provision about closure of a carbon storage facility;
provision about obligations of a licence holder between closure of a carbon storage facility and termination of the licence;
provision about termination of the licence (which may include provision about financial arrangements).
The provisions of a licence may be expressed by reference to provision made in a Crown lease and, in particular, may provide—
for the commencement of the licence to be conditional upon the commencement of a Crown lease which has been or may be granted in respect of the controlled place to which the licence relates or any part of that place;
for the period of the licence to be determined by reference to the period of such a Crown lease.
A licence may authorise, in such circumstances and subject to such conditions as are specified, the transfer of the licence to another person (or the inclusion of another person as a joint licence holder).
The provisions of a licence may include—
provision requiring the licence holder to obtain the prior written consent of the licensing authority or another person for specified acts or omissions;
provision providing that any such consent may be given subject to conditions.
The conditions imposed on a consent by virtue of subsection (6)(b) may include conditions requiring, or otherwise providing for, the modification of the licence in such manner as the licensing authority considers appropriate.
In this section—“carbon storage facility” means a controlled place, or part of a controlled place, in which carbon dioxide has been stored pursuant to a licence;“closure”, in relation to a carbon storage facility, means the point at which carbon dioxide has ceased to be added to the facility and the licence holder intends, or the licensing authority directs in accordance with the licence, that the cessation should be permanent;“Crown lease” has the same meaning as in section 18;“specified”, in relation to a licence, means specified in, or determined in accordance with, the licence.
Each licensing authority may make regulations about the terms and conditions of licences granted by it.
Regulations under subsection (1) may specify that a licence must contain specified provisions or provisions of a specified description.
Where the licensing authority is the OGA—
regulations under subsection (1) are to be made by the Secretary of State (and not by the OGA), and
the Secretary of State must consult the OGA before making the regulations.
In subsection (1) “licensing authority” does not include the Welsh Ministers or the Department of Enterprise, Trade and Investment in Northern Ireland.
Enforcement
It is an offence for a person to carry on an activity within section 17(2) at a controlled place unless, at the time the activity is carried on, that person—
has a licence for the carrying on of the activity at that place, or
is carrying on the activity on behalf of a person who has such a licence.
It is an offence for a person to cause or permit another person to commit the offence in subsection (1).
A person guilty of an offence under this section is liable—
on summary conviction, to a fine not exceeding £50,000 a fine, or
on conviction on indictment, to imprisonment for a term not exceeding 2 years or to a fine, or both.
If the activity constituting the offence falls within section 17(2)(c), or relates to the establishment or maintenance of an installation for the purposes of an activity mentioned in that provision, subsection (3) has effect as if—
the reference to £50,000 were a reference to the statutory maximum, and
the reference to imprisonment were omitted.
If the activity constituting the offence is carried on at an English controlled place, a Welsh controlled place or a Northern Ireland controlled place, subsection (3) has effect as if the reference to £50,000 were a reference to the statutory maximum.
If the activity constituting the offence is carried out in a Scottish controlled place other than a place within the area of the territorial sea, subsection (3)(a) has effect as if the reference to £50,000 were a reference to £5,000.
An offence is committed by a licence holder if—
a thing is done for which the licence specifies that the prior consent of the licensing authority or any other person is required, without that consent first having been obtained;
such a thing is done in circumstances where that consent was obtained subject to conditions and those conditions have not been satisfied;
the licence holder fails to keep records, give a notice or make a return or report, in accordance with the provisions of the licence;
the licence holder breaches any other provision of the licence which is specified, or of a description specified, in an order made by the licensing authority.
But a licence holder does not commit an offence under subsection (1)(a) or (b) if—
the licence holder is a company, or, where there are joint licence holders, any of them is a company, and
the thing mentioned in subsection (1)(a) or (b) is a change in the control of the company.
In proceedings against a person for an offence under subsection (1), it is a defence for the person to prove that due diligence was exercised to avoid committing the offence.
A person guilty of an offence under subsection (1) is liable—
on summary conviction, to a fine not exceeding £50,000 a fine, or
on conviction on indictment, to imprisonment for a term not exceeding 2 years or to a fine, or both.
If an offence under subsection (1) relates to an activity within section 17(2)(c), or relates to the establishment or maintenance of an installation for the purposes of an activity mentioned in that provision, subsection (3) has effect as if—
the reference to £50,000 were a reference to the statutory maximum, and
the reference to imprisonment were omitted.
It is an offence for a person to make a statement which the person knows to be false, or recklessly to make a statement which is false, in order to obtain—
a licence, or
the consent of the licensing authority or any other person for the purposes of any requirement imposed by virtue of section 20(6).
It is an offence for a person to fail to disclose information which the person knows, or ought to know, to be relevant to an application for—
a licence, or
the consent of the licensing authority or any other person for the purposes of any requirement imposed by virtue of section 20(6).
A person guilty of an offence under subsection (5) or (6) is liable—
on summary conviction, to a fine not exceeding the statutory maximum, or
on conviction on indictment, to a fine.
In subsection (1)(d) “licensing authority” does not include the Welsh Ministers or the Department of Enterprise, Trade and Investment in Northern Ireland.
This section applies if a licence holder fails to comply with any provision of the licence.
The licensing authority may direct the licence holder to take steps which the licensing authority considers necessary or appropriate to comply with the provision within a period specified in the direction.
The licensing authority must consult the licence holder before giving a direction under subsection (2).
If the licence holder fails to comply with a direction under subsection (2), the licensing authority may—
comply with the direction on behalf of the licence holder, or
make arrangements for another person to do so.
A person taking action by virtue of subsection (4) may—
do anything which the licence holder could have done, and
recover from the licence holder any reasonable costs incurred in taking the action.
A person (“P”) liable to pay any sum by virtue of subsection (5)(b) must also pay interest on that sum for the period beginning with the day on which the person taking action by virtue of subsection (4) notified P of the sum payable and ending with the date of payment.
The rate of interest payable in accordance with subsection (6) is a rate determined by the licensing authority as comparable with commercial rates.
The licence holder must provide a person taking action by virtue of subsection (4) with such assistance as the licensing authority may direct.
The power to give a direction under this section is without prejudice to any provision made in the licence with regard to the enforcement of any of its provisions.
It is an offence for a person to fail to comply with a direction under section 24, unless the person proves that due diligence was exercised in order to avoid the failure.
A person guilty of an offence under subsection (1) is liable—
on summary conviction, to a fine not exceeding £50,000 a fine, or
on conviction on indictment, to imprisonment for a term not exceeding 2 years or to a fine, or both.
Where the OGA considers it necessary or expedient to restrain any actual or apprehended breach of section 17(1) in relation to an English controlled place, the OGA may apply to the High Court for an injunction.
Where the Welsh Ministers consider it necessary or expedient to restrain any actual or apprehended breach of section 17(1) in relation to a Welsh controlled place, they may apply to the High Court for an injunction.
Where the Scottish Ministers consider it necessary or expedient to restrain any actual or apprehended breach of section 17(1) in relation to a controlled place in, under or over the territorial sea adjacent to Scotland Scottish controlled place, they may apply to the Court of Session for an interdict.
Where the Department of Enterprise, Trade and Investment in Northern Ireland considers it necessary or expedient to restrain any actual or apprehended breach of section 17(1) in relation to a Northern Ireland controlled place, it may apply to the High Court for an injunction.
Where the OGA considers it necessary or expedient to restrain any ...actual or apprehended breach of section 17(1) in relation to an offshore UK-controlled place, the OGA may apply—
to the High Court for an injunction, or
to the Court of Session for an interdict.
An application may be made under this section whether or not the applicant has exercised or is proposing to exercise any of the other powers under this Chapter.
On an application under this section, the Court of Session may grant such an interdict, or the High Court may grant such an injunction, as it thinks appropriate for the purpose of restraining the breach.
Rules of court may provide for an injunction or interdict to be issued against a person whose identity is unknown.
The following may appoint persons to act as inspectors to assist in carrying out their respective functions under this Chapter—
the OGA,
the Scottish Ministers,
the Welsh Ministers, and
the Department of Enterprise, Trade and Investment in Northern Ireland.
The following may make payments, by way of remuneration or otherwise, to inspectors appointed by them under this section—
the Scottish Ministers,
the Welsh Ministers, and
the Department of Enterprise, Trade and Investment in Northern Ireland.
The Secretary of State may make regulations about—
the powers and duties of inspectors appointed under this section;
the powers and duties of any other person acting on the directions of the OGA in connection with a function under this Chapter;
the facilities and assistance to be accorded to persons mentioned in paragraph (a) or (b).
The powers conferred by virtue of subsection (3) may include powers of a kind specified in section 108(4) of the Environment Act 1995 (c. 25) (powers of entry, investigation, etc).
Any regulations under this section may provide for the creation of offences which are punishable—
on summary conviction by a fine not exceeding the statutory maximum or such lesser amount as is specified in the regulations, and
on conviction on indictment by a fine.
Subsections (3) to (5) apply in relation to the Scottish Ministers and the functions of the Scottish Ministers under this Chapter as they apply in relation to the Secretary of State and the functions of the Secretary of State under this Chapter (reading the reference to the OGA in subsection (3)(b) as a reference to the Secretary of State).
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Proceedings for a relevant offence may be taken, and the offence may for all incidental purposes be treated as having been committed, in any place in the United Kingdom.
Section 3 of the Territorial Waters Jurisdiction Act 1878 (c. 73) (restriction on prosecutions) does not apply to any proceedings for a relevant offence.
Proceedings for a relevant offence alleged to have been committed in an offshore controlled place may not be instituted in England and Wales except—
by the Secretary of State or a person authorised by the Secretary of State, or
by or with the consent of the Director of Public Prosecutions.
Proceedings for a relevant offence alleged to have been committed in an offshore controlled place may not be instituted in Northern Ireland except—
by the Secretary of State or a person authorised by the Secretary of State, or
by or with the consent of the Director of Public Prosecutions for Northern Ireland.
In the application of subsection (3) or (4) to an offence created by regulations under section 27—
the words “alleged to have been committed in an offshore controlled place” are to be omitted, and
except in the case of an offence that relates to functions of the OGA under this Chapter, the references to a person authorised by the Secretary of State are to be read as references to an inspector appointed under that section.
In this section “relevant offence” means an offence under this Chapter or created by regulations under section 27.
Registration
The Secretary of State must maintain a register containing prescribed information relating to licences.
Information is not to be included in the register if—
the Secretary of State thinks that disclosure of the information would be contrary to the interests of national security, or
the licensing authority thinks that disclosure of the information would prejudice to an unreasonable degree a person's commercial interests.
Information excluded from the register by virtue of subsection (2)(b) is treated, subject to subsection (4), as ceasing to prejudice a person's commercial interests at the end of the period of 4 years beginning with the date on which the licensing authority made the decision to exclude it.
The licensing authority may, on the application of the person whose commercial interests are affected, decide whether the information should be included in the register at the end of the period mentioned in subsection (3) or should continue to be excluded.
Where information of any description is excluded from the register by virtue of subsection (2)(b), a statement is to be included in the register indicating the existence of information of that description.
The Secretary of State must—
secure that the register maintained under this section is available for inspection by the public free of charge, and
afford to members of the public facilities for obtaining copies of entries, on payment of a fee.
In this section “prescribed” means prescribed by regulations made by the Secretary of State.
The OGA must provide to the Secretary of State any information held by it that is required by the Secretary of State in order to comply with the requirements imposed by this section.
Information about change in control of licence holder
This section applies in relation to a licence granted (or having effect as if granted) by the OGA which includes provisions prohibiting a change in control of a licence holder which is a company without the OGA’s consent.
The OGA may by notice in writing require a person within subsection (3) to provide the OGA with any information that it requires for the purpose of exercising its functions in relation to a change or potential change in control of a licence holder which is a company.
The persons within this subsection are—
the company;
the person who (if consent were granted) would take control of the company;
if the company is a joint licence holder with another person or other persons, that other person or those other persons;
any person not within any of paragraphs (a) to (c) who appears to the OGA to have information that it requires as mentioned in subsection (2).
The power conferred by this section does not include power to require the provision of any information that would be protected from disclosure or production in legal proceedings on grounds of legal professional privilege or, in Scotland, confidentiality of communications.
Nothing in this section limits any power of the OGA to require information under—
regulations under this Chapter,
the terms of a licence, or
the terms of a permit granted under a licence.
Abandonment of offshore infrastructure
Part 4 of the Petroleum Act 1998 (c. 17) (referred to in this section and sections 30A and 30B as “the 1998 Act”) applies in relation to a carbon storage installation as it applies in relation to an offshore installation within the meaning given by section 44 of the 1998 Act, subject to subsections (1A) to (2) and (4) and section 30A.
For the purposes of subsection (1), the amendments made to Part 4 of the 1998 Act by Schedule 2 to the Energy Act 2016 are to be disregarded.
Part 4 of the 1998 Act, in its application in relation to carbon storage installations, has effect with the modifications set out in subsection (1AB).
The modifications are as follows—
in section 30 of the 1998 Act, for subsections (5) and (6) substitute—;
in section 30(7) of that Act, in the words before paragraph (a), for “(c)” substitute“(e)”;
in section 31 of that Act, for subsection (B1) substitute—;
in section 31 of that Act, omit subsection (C1);
in section 45 of that Act, in the appropriate place insert—.
In relation to a carbon storage installation established or maintained at a controlled place under a licence granted by the Scottish Ministers—
the functions conferred on the Secretary of State by Part 4 of the 1998 Act are exercisable by the Scottish Ministers rather than the Secretary of State (and, accordingly, sections 38C(9) and 39(6) of the 1998 Act are to be read as if each of those sections imposed a requirement that regulations under the section concerned are subject to the negative procedure (see section 28 of the Interpretation and Legislative Reform (Scotland) Act 2010)), and
the Scottish Ministers may make regulations providing that that Part applies with such other modifications as may be specified in the regulations.
In relation to any other carbon storage installation, the Secretary of State may make regulations providing that Part 4 of the 1998 Act applies in relation to such an installation with such modifications as may be specified in the regulations.
The power in subsection (4)—
may (in particular) be exercised to make modifications corresponding to the amendments made by Schedule 2 to the Energy Act 2016, and
is subject to section 30A.
The powers in subsections (2)(b) and (4) include power to amend or repeal subsections (1AA) and (1AB).
This subsection applies to any activity which is carried on from, by means of or on an installation which is established or maintained in the water, or on the foreshore or other land intermittently covered with water, and is not connected with dry land by a permanent structure providing access at all times and for all purposes.
The Secretary of State may, on an application made by a relevant person, by notice designate an installation as an eligible CCS installation.
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
The Secretary of State must consult the Oil and Gas Authority before deciding—
whether to designate an installation under subsection (1);
whether to make a certification under subsection (5)(b).
An eligible CCS installation qualifies for change of use relief if—
the Secretary of State has given a CCS-related abandonment programme notice to a person in relation to the abandonment of the installation, and
the trigger event has occurred in relation to the installation.
The trigger event occurs in relation to an eligible CCS installation when—
a decommissioning fund (as defined in section 92(7) of the Energy Act 2023) has been established for providing security for the discharge of liabilities in respect of decommissioning costs in relation to the installation, and
the Secretary of State certifies by notice in writing (an “approval notice”) that one or more relevant persons have paid into the fund an amount or amounts the total of which is not less than the required amount.
In subsection (5)—
“relevant person” means a person of a description specified in regulations made by the Secretary of State;
“the required amount” means an amount determined by the Secretary of State in accordance with regulations made by the Secretary of State.
Where the Secretary of State gives an approval notice in relation to an eligible CCS installation the Secretary of State must—
give a copy of the approval notice to every person to whom a notice has been given under section 29(1) of the 1998 Act in relation to the installation, and
publish a notice that—
specifies the installation, and
states that the Secretary of State has given an approval notice under subsection (5)(b) in relation to it.
Where an eligible CCS installation qualifies for change of use relief—
an abandonment programme notice must not be served on a person who is within section 30(1) of the 1998 Act only because one or more of subsections (7) to (9) applies in relation to the person (but this does not affect the validity of a notice served on any such person before the installation qualified for change of use relief), and
a proposal must not be made under section 34(1)(b) of the 1998 Act if the effect of the proposal (if implemented) would be to impose an abandonment liability on a person who is within section 34(2)(a) of the 1998 Act only because one or more of subsections (7) to (10) applies in relation to the person.
This subsection applies in relation to a person if—
the person is within paragraph (b) of section 30(1) of the 1998 Act in relation to the installation only by virtue of the fact that the person had a right mentioned in section 30(5)(a) of that Act when an activity mentioned in section 30(6) of that Act was last carried on from, by means of or on the installation, and
any such activity was last so carried on before the trigger event occurred in relation to the installation.
This subsection applies in relation to a person if—
the person is within paragraph (ba) of section 30(1) of the 1998 Act in relation to the installation, and
the transfer mentioned in sub-paragraph (i) of that paragraph took place before the trigger event occurred in relation to the installation.
This subsection applies in relation to a person if the person is within paragraph (e) of section 30(1) of the 1998 Act only by virtue of being associated with a body corporate which is within subsection (7) or (8).
This subsection applies in relation to a person if the person has been within any of paragraphs (a), (b), (c), (d) or (e) of section 30(1) of the 1998 Act in relation to the installation, but only at a time—
when the installation was an offshore installation (within the meaning given by section 44 of the 1998 Act), and
before the trigger event occurred in relation to the installation.
The power conferred by subsection (1) does not include a power to revoke a notice given under that subsection.
The Secretary of State must publish a notice given under subsection (1).
In this section—“abandonment liability”, in relation to an installation, means a duty to secure that an abandonment programme for the installation is carried out;“abandonment programme”, in relation to an installation, means a programme in respect of the installation approved, or having effect as if approved, by the Secretary of State under section 32 of the 1998 Act;“abandonment programme notice” means a notice served under section 29(1) of the 1998 Act;“captured carbon dioxide” means carbon dioxide that has been produced by, or in connection with, commercial electricity generation and captured with a view to its disposal by way of permanent storage;“carbon dioxide”, has the same meaning as in Part 1 of the Energy Act 2010 (see section 7 of that Act);...“decommissioning costs” has the meaning given by section 92 of the Energy Act 2023;“relevant person” means a person to whom a notice may be given under section 29(1) of the 1998 Act in relation to an offshore installation (within the meaning given by section 44 of the 1998 Act);“Scotland” has the same meaning as in the Scotland Act 1998 (see section 126(1) of that Act).
Section 30(8) to (9) of the 1998 Act (when one body corporate is associated with another) apply for the purposes of this section.
The Secretary of State may, on an application made by a relevant person, by notice designate a submarine pipeline as an eligible carbon storage network pipeline.
The Secretary of State must consult the Oil and Gas Authority before deciding—
whether to designate a pipeline under subsection (1);
whether to make a certification under subsection (3)(b).
An eligible carbon storage network pipeline qualifies for change of use relief if—
the Secretary of State has given a CCS-related abandonment programme notice to a person in relation to the abandonment of the pipeline, and
the trigger event has occurred in relation to the pipeline.
In subsection (2) “CCS-related abandonment programme notice” means an abandonment programme notice under section 29 of the 1998 Act given at a time when the pipeline is used, or is to be used wholly or mainly—
for the purpose of disposing of carbon dioxide by way of geological storage, or
as a licensable means of transportation.
The trigger event occurs in relation to an eligible carbon storage network pipeline when—
a decommissioning fund (as defined in section 92(7) of the Energy Act 2023) has been established for providing security for the discharge of liabilities in respect of decommissioning costs in relation to the pipeline, and
the Secretary of State certifies by notice in writing (an “approval notice”) that one or more relevant persons have paid into the fund an amount or amounts the total of which is not less than the required amount.
In subsection (3)—
“relevant person” means a person of a description specified in regulations made by the Secretary of State;
“the required amount” means an amount determined by the Secretary of State in accordance with regulations made by the Secretary of State.
Where the Secretary of State gives an approval notice in relation to an eligible carbon storage network pipeline, the Secretary of State must—
give a copy of the approval notice to every person to whom a notice has been given under section 29(1) of the 1998 Act in relation to the pipeline, and
publish a notice that—
specifies the pipeline, and
states that the Secretary of State has given an approval notice under subsection (3)(b) in relation to it.
Where an eligible carbon storage network pipeline qualifies for change of use relief, a proposal must not be made under section 34(1)(b) of the 1998 Act if the effect of the proposal (if implemented) would be to impose an abandonment liability on a person who is within section 34(2)(b) of the 1998 Act only because subsection (5) applies in relation to the person.
This subsection applies in relation to a person if the person has been within any of paragraphs (a) to (c) of section 30(2) of the 1998 Act in relation to the pipeline, but only at a time—
before the trigger event occurred in relation to the pipeline.
The power conferred by subsection (1) does not include a power to revoke a notice given under that subsection.
The Secretary of State must publish a notice given under subsection (1).
In this section—“abandonment liability”, in relation to a submarine pipeline, is a duty to secure that an abandonment programme for the pipeline is carried out;“abandonment programme”, in relation to a submarine pipeline, means a programme in respect of the pipeline approved, or having effect as if approved, by the Secretary of State under section 32 of the 1998 Act;“captured carbon dioxide”has the same meaning as in section 30A;...“decommissioning costs” has the meaning given by section 92 of the Energy Act 2023;“geological storage”, in relation to carbon dioxide, has the same meaning as in Part 1 of the Energy Act 2023 (see section 55 of that Act);“licensable means of transportation” has the meaning given by section 2(3) of the Energy Act 2023;“petroleum” has the same meaning as in Part 1 of the 1998 Act (see section 1 of that Act) and includes petroleum that has undergone any processing;“relevant person” means a person to whom a notice may be given under section 29(1) of the 1998 Act in relation to a submarine pipeline;“submarine pipeline” has the same meaning as in Part 4 of the Petroleum Act 1998 (see section 45 of that Act).
authorising His Majesty’s Revenue and Customs (or anyone acting on their behalf) to disclose to the Secretary of State information held as mentioned in section 18(1) of the Commissioners for Revenue and Customs Act 2005;
for the enforcement of any requirement imposed by virtue of the regulations.
For the purposes of subsection (1), a person “qualifies for change of use relief” if—
Termination of the licence
The licensing authority may by regulations make provision—
about the circumstances in which a licence may be terminated;
imposing obligations on the licensing authority in respect of a carbon storage facility on or after the termination of a licence relating to the facility.
Regulations under this section may, in particular, make provision about financial arrangements to be made in relation to a closed carbon storage facility on or after the termination of a licence relating to the facility.
A licence has effect subject to any regulations under this section.
Where the licensing authority is the OGA—
regulations under this section are to be made by the Secretary of State (and not by the OGA), and
the Secretary of State must consult the OGA before making the regulations.
In subsection (1) “licensing authority” does not include the Welsh Ministers or the Department of Enterprise, Trade and Investment in Northern Ireland.
Miscellaneous
Sections 21, 23 and 24 of the Petroleum Act 1987 (c. 12) (safety zones) apply in relation to a carbon storage installation as they apply in relation to an installation within section 21(1) of that Act.
The use of carbon dioxide, in a controlled place, for a purpose ancillary to getting petroleum is to be regarded as—only in the circumstances specified by the Secretary of State by order.
an activity within section 17(2), or
the storage of gas for the purposes of section 1(3)(b),
Before making an order under subsection (1), the Secretary of State must consult the OGA.
Subsection (1) and orders made under it are without prejudice to Part 1 of the Petroleum Act 1998 (c. 17).
An order under subsection (1) may provide that the use of carbon dioxide, in a designated place, for a purpose ancillary to getting petroleum is to be regarded, for the purposes of this Chapter, as the use of carbon dioxide in a controlled place for such a purpose.
A designated place means a place designated by the order which is a place in, under or over waters in an area designated under section 1(7) of the Continental Shelf Act 1964 (c. 29), other than waters in a Gas Importation and Storage Zone.
In this section “petroleum” has the meaning given by section 1 of the Petroleum Act 1998 (c. 17).
The Secretary of State may by order transfer to a public body any function conferred on the Secretary of State by or under this Chapter, other than a power to make regulations or an order.
A function transferred by an order under subsection (1) reverts to the Secretary of State if the order is revoked.
An order under subsection (1) may—
transfer different functions to different bodies;
transfer functions to a body in respect of all activities within section 17(2) or only specified activities;
transfer the same function to different bodies in respect of different activities;
transfer functions to different bodies in respect of different places.
An order under subsection (1) may—
provide for the Secretary of State to make payments to a body to which a function has been transferred in respect of the body's expenditure in connection with the exercise of the function;
require any fee paid to such a body under this Chapter to be paid into the Consolidated Fund;
make such modifications of section 188 of the Energy Act 2004 (c. 20) (power to impose charges to fund energy functions), or any regulations made under that section, as the Secretary of State considers appropriate in consequence of the transfer of a function by virtue of this section.
The Secretary of State may give a direction to a body to which functions have been transferred under subsection (1) about—
whether, or in what circumstances, a function specified in the direction is to be carried out;
the manner in which a function specified in the direction is to be carried out.
A direction under subsection (5) may be general or specific.
The Secretary of State may not give a direction under subsection (5) without first consulting the body to which the Secretary of State proposes to give the direction.
This section applies in relation to the Scottish Ministers and any functions conferred on them by or under this Chapter as it applies in relation to the Secretary of State and any functions conferred on the Secretary of State by or under this Chapter, except that—
in its application to the Scottish Ministers the reference in subsection (4)(b) to the Consolidated Fund is to be read as a reference to the Scottish Consolidated Fund, and
This section applies where a licence holder also holds a relevant licence.
The licensing authority who granted the licence to the licence holder must provide such assistance as the economic regulator may reasonably require in carrying out its functions in relation to the relevant licence.
The licensing authority must, in particular, inform the economic regulator if it becomes aware of—
circumstances that have arisen, or are likely to arise, in relation to the activities authorised by the licence which, in the opinion of the licensing authority, could affect the carrying on of activities authorised by the relevant licence;
circumstances that have arisen, or are likely to arise, in which the licence or a storage permit granted under the licence may be terminated.
In this section—“economic regulator” has the same meaning as in Part 1 of the Energy Act 2023 (see section 55 of that Act);“relevant licence” means a licence under section 7 of the Energy Act 2023;“storage permit” means a storage permit within the meaning of—regulation 1(3) of the Storage of Carbon Dioxide (Licensing etc) Regulations 2010 (S.I. 2010/2221), or regulation 1(3) of the Storage of Carbon Dioxide (Licensing etc) (Scotland) Regulations 2011 (S.S.I. 2011/24).
A licensing authority may provide information relating to a licence or a storage permit granted under a licence to the economic regulator for the purpose of enabling or facilitating the exercise of the economic regulator’s functions in relation to a relevant licence.
Except as provided by subsection (3), the disclosure of information under this section does not breach—
any obligation of confidence owed by the person making the disclosure, or
any other restriction on the disclosure of information (however imposed).
This section does not authorise or require a disclosure of information if the disclosure would contravene the data protection legislation (but in determining whether a disclosure would do so, the power conferred by subsection (1) is to be taken into account).
Interpretation
In this Chapter—“carbon storage facility” has the meaning given by section 20(8);“carbon storage installation” has the meaning given by section 30(5);“closure”, in relation to a carbon storage facility, has the meaning given by section 20(8);“controlled place” has the meaning given by section 17(3) and (3A) and (4);“English controlled place” has the meaning given by section 18(4A);“Gas Importation and Storage Zone” is to be read in accordance with section 1(5);“installation” includes any floating structure or device maintained on a station by whatever means;“licence” means a licence granted under section 18(1), and “licence holder” is to be construed accordingly;“licensing authority” has the meaning given by section 18(2).“Northern Ireland controlled place” has the meaning given by section 18(4A);“offshore controlled place” means a place that is mentioned in section 17(3);“offshore UK-controlled place” has the meaning given by section 18(2)(a);“the OGA” means the Oil and Gas Authority."Scottish controlled place”has the meaning given by section 18(5).“Welsh controlled place” has the meaning given by section 18(4A).
An Order in Council under section 126(2) of the Scotland Act 1998 (c. 46) (apportionment of sea areas) has effect for the purposes of this Chapter if, or to the extent that, the Order is expressed to apply—
by virtue of this subsection, for the purposes of this Chapter, or
if no provision has been made by virtue of paragraph (a), for the general or residual purposes of that Act.
An Order in Council under section 98(8) of the Northern Ireland Act 1998 has effect for the purposes of this Chapter if, or to the extent that, the Order in Council is expressed to apply—
by virtue of this subsection, for the purposes of this Chapter, or
if no provision has been made by virtue of paragraph (a), for the general or residual purposes of that Act.
by virtue of this subsection, for the purposes of this Chapter, or
if no provision has been made by virtue of paragraph (a), for the general or residual purposes of that Act.
Schedule 1 contains amendments relating to Chapters 2 and 3.
Electricity from renewable sources
The renewables obligation
Where a NI amending order is made, the Secretary of State may, by order—
amend section 32K(2) of that Act (as so substituted) so as to extend it to certificates issued before the relevant time by the Northern Ireland Authority for Utility Regulation under provision included, by virtue of Article 54 of the NI Energy Order, in an order made under Article 52 of that Order.
In this section—“NI amending order” means an order under Article 56 of the NI Energy Order which (by virtue of section 40(2)) makes amendments to Part 7 of that Order to take account of any amendments made or proposed to be made by section 37;“NI Energy Order” means the Energy (Northern Ireland) Order 2003 (S.I. 2003/419 (N.I. 6));“the relevant time” means the time when the first order made under Article 52 of the NI Energy Order by virtue of a NI amending order comes into force.
In section 67 of the Utilities Act 2000 (c. 27) (savings relating to section 32 of the Electricity Act 1989 etc), in subsection (1)(c) for “(as mentioned in that section) made pursuant to such an order” substitute “ made pursuant to such an order (or such arrangements as modified or replaced by virtue of an order under this section) ”.
In section 121 of the Energy Act 2004 (c. 20) (power of Gas and Electricity Markets Authority to act on behalf of Northern Ireland regulator)—
in subsection (1) for “Energy” substitute “ Utility ”,
in subsection (2) for “Articles 52” to the end substitute “ the Northern Ireland provisions. ”, and
after that subsection insert—
In the case of an order under Article 52 of the NI Energy Order made by virtue of a NI amending order, the requirements of Article 52(6) of the NI Energy Order (consultation before making a renewables order) may be satisfied by consultation undertaken before the NI amending order came into force or the passing of this Act.
In this section “NI amending order” and “NI Energy Order” have the same meaning as in section 38.
Feed-in tariffs for small-scale generation of electricity
The Secretary of State may modify—
the standard conditions incorporated in licences under those provisions by virtue of section 8A of that Act;
a document maintained in accordance with the conditions of licences under section 6(1) of that Act, or an agreement that gives effect to a document so maintained.
The Secretary of State may exercise the power in subsection (1) for the purpose only of—
establishing, or making arrangements for the administration of, a scheme of financial incentives to encourage small-scale low-carbon generation of electricity;
requiring or enabling the holder of a distribution licence to make arrangements for the distribution of electricity generated by small-scale low-carbon generation;
requiring the holder of a licence to make arrangements related to the matters mentioned in paragraph (a) or (b).
Modifications made by virtue of subsection (1) may include—
provision requiring the holder of a supply licence to make a payment to a small-scale low-carbon generator, or to the Authority for onward payment to such a generator, in specified circumstances;
provision specifying how a payment under paragraph (a) is to be calculated;
provision for the level of payment under paragraph (a) to decrease year by year in accordance with a formula published, or to be published, by the Secretary of State;
provision about the circumstances in which no payment, or a reduced payment, may be made to a small-scale low-carbon generator;
provision about the circumstances in which a payment may be recovered from a small-scale low-carbon generator;
a requirement for the holder of a supply licence or distribution licence to pay a levy to the Authority at specified times;
provision specifying how a levy under paragraph (f) is to be calculated (which may require specified matters to be determined by the Authority or the Secretary of State);
provision conferring an entitlement on the holder of a supply licence or distribution licence to receive a payment from the Authority.
In this section—“Authority” means the Gas and Electricity Markets Authority;“distribution licence” means a licence under section 6(1)(c) of the Electricity Act 1989 (c. 29);“owner”, in relation to any plant which is the subject of a hire purchase agreement, a conditional sale agreement or any agreement of a similar nature, means the person in possession of the plant under that agreement;“plant” includes any equipment, apparatus or appliance;“small-scale low-carbon generation” means the use, for the generation of electricity, of any plant—which, in generating electricity, relies wholly or mainly on a source of energy or a technology mentioned in subsection (5), and the capacity of which to generate electricity does not exceed the specified maximum capacity;“small-scale low-carbon generator” means an owner of plant used or intended to be used for small-scale low-carbon generation, whether or not the person is also operating or intending to operate the plant;“specified maximum capacity” means the capacity specified by the Secretary of State by order, which must not exceed 10 megawatts;“supply licence” means a licence under section 6(1)(d) of the Electricity Act 1989 (c. 29).
The sources of energy and technologies are—
biomass;
biofuels;
fuel cells;
photovoltaics;
water (including waves and tides);
wind;
solar power;
geothermal sources;
combined heat and power systems with an electrical capacity of 50 kilowatts or less.
The Secretary of State may by order modify the list of sources of energy and technologies for the time being listed in subsection (5).
The power conferred by subsection (1)—
may be exercised generally, only in relation to specified cases or subject to exceptions (including provision for a case to be excepted only so long as specified conditions are satisfied);
may be exercised differently in different cases or circumstances;
includes a power to make incidental, supplemental, consequential or transitional modifications.
Provision included in a licence by virtue of that power—
need not relate to the activities authorised by the licence;
may make different provision for different cases.
Before making a modification, the Secretary of State must consult—
the holder of any licence being modified,
the Gas and Electricity Markets Authority, and
such other persons as the Secretary of State considers appropriate.
Subsection (1) may be satisfied by consultation before, as well as by consultation after, the passing of this Act.
Before making modifications, the Secretary of State must lay a draft of the modifications before Parliament.
If, within the 40-day period, either House of Parliament resolves not to approve the draft, the Secretary of State may not take any further steps in relation to the proposed modifications.
If no such resolution is made within that period, the Secretary of State may make the modifications in the form of the draft.
Subsection (4) does not prevent a new draft of proposed modifications being laid before Parliament.
The Secretary of State must publish details of any modifications as soon as reasonably practicable after they are made.
In this section, “40-day period”, in relation to a draft of proposed modifications, means the period of 40 days beginning with the day on which the draft is laid before Parliament (or, if it is not laid before each House of Parliament on the same day, the later of the 2 days on which it is laid).
For the purposes of calculating the 40-day period, no account is to be taken of any period during which Parliament is dissolved or prorogued or during which both Houses are adjourned for more than 4 days.
In this section “modification” means a modification under section 41(1).
A modification under section 41 of part of a standard condition of a licence does not prevent any other part of the condition from continuing to be regarded as a standard condition for the purposes of Part 1 of the Electricity Act 1989 (c. 29).
Where the Secretary of State makes modifications under section 41(1)(b) of the standard conditions of a licence of any type, the Gas and Electricity Markets Authority (“the Authority”) must—
make the same modification of those standard conditions for the purposes of their incorporation in licences of that type granted after that time, and
publish the modification.
The Secretary of State may by order—
make provision conferring functions on the Authority or the Secretary of State (or both) in connection with the administration of any scheme established by virtue of section 41;
make such modifications of provision made by or under an Act or an Act of the Scottish Parliament (whenever passed or made) as the Secretary of State considers appropriate in consequence of provision made under paragraph (a) or section 41.
Offshore electricity transmission
Part 1 of the Electricity Act 1989 (electricity supply) is amended as follows.
After section 6C insert—
In section 64 (interpretation of Part 1), after subsection (1) insert—
Decommissioning of energy installations
Funded decommissioning programmes
This section applies where, on or after the day on which this section comes into force, a person applies for a nuclear site licence in respect of a site to which subsection (2) applies.
This subsection applies to—
a site on which the person intends to construct a nuclear installation for a purpose for which a licence under section 6(1)(a) of the Electricity Act 1989 (c. 29) or Article 10(1)(a) of the Electricity (Northern Ireland) Order 1992 (S.I. 1992/231 (N.I.)) (generating licences) is required, and
a site to which this section previously applied by virtue of paragraph (a) and on which the person intends to operate a nuclear installation which was constructed for such a purpose.
The person must—
give written notice of the application to the Secretary of State, and
prepare and submit to the Secretary of State a funded decommissioning programme.
A funded decommissioning programme is a programme which—
makes provision for the technical matters, and
specifies how the implementation of that provision, so far as it relates to the designated technical matters, is to be financed.
The technical matters, in relation to a site, are—and for the purposes of paragraph (a) a nuclear installation is not to be regarded as being operated at a time when it is being decommissioned.
the treatment, storage, transportation and disposal of hazardous material (within the meaning of section 37 of the Energy Act 2004 (c. 20)) during the operation of a nuclear installation on the site,
the decommissioning of any relevant nuclear installation and the cleaning-up of the site, and
activities preparatory to the matters mentioned in paragraph (b);
The designated technical matters, in relation to a site, are—
such of the matters within subsection (5)(a) or (c) as are specified by the Secretary of State by order, and
the matters within subsection (5)(b).
The funded decommissioning programme must, in particular, contain—
details of the steps to be taken under the programme in relation to the technical matters,
estimates of the costs likely to be incurred in connection with the designated technical matters, and
details of any security to be provided in connection with those costs.
A person who submits a programme must pay to the Secretary of State such fee as may be determined in accordance with regulations under section 54, in respect of the costs mentioned in subsection (9), at a time determined in accordance with such regulations.
The costs are those incurred by the Secretary of State in relation to the consideration of the programme, including, in particular, the costs of obtaining advice in relation to—
the programme, or
information required in relation to the programme in accordance with section 52(4).
A person who informs the Secretary of State of a proposal to submit a funded decommissioning programme under section 45 must pay to the Secretary of State such fee as may be determined in accordance with regulations under section 54, in respect of the costs mentioned in subsection (2), at a time determined in accordance with such regulations.
The costs are those incurred by the Secretary of State in relation to the consideration of the proposed programme (or any particular aspect of it), including, in particular, the costs of obtaining advice in relation to it.
The Secretary of State may approve or reject a funded decommissioning programme submitted under section 45 in respect of a site.
The Secretary of State may approve a programme—
with or without modifications, and
unconditionally or subject to conditions.
A modification under subsection (2) may, in particular, impose obligations, or additional obligations, on a body corporate associated with the person who submitted the programme.
When approving a programme the Secretary of State may agree to exercise, or not to exercise, the section 48 power—
in a particular manner;
within a particular period.
An agreement under subsection (3A) may subsequently be amended by the Secretary of State and the other party to the agreement.
The Secretary of State may not make such an agreement or amend such an agreement unless satisfied that the agreement (or the agreement as amended) includes adequate provision for the modification of the programme in the event that the provision made by it for the technical matters (including the financing of the designated technical matters) ceases to be prudent.
Provision in such an agreement (including the provision mentioned in subsection (3C)) may include provision—
for a determination by a third party in relation to a relevant matter specified in the agreement, and
for the Secretary of State to be bound by such a determination.
A “relevant matter” is a matter relating to the provision made by the programme for the technical matters.
Subsections (3A) to (3D) apply notwithstanding that the agreement or amendment fetters the Secretary of State's discretion.
In subsection (3A) “section 48 power” means the power of the Secretary of State under section 48 to propose a modification of the programme or a modification of the conditions to which the approval of the programme is subject.
Where the Secretary of State makes or amends an agreement under subsection (3A), or it is proposed that such an agreement be made or amended, the site operator must pay to the Secretary of State such fee as may be determined in accordance with regulations under section 54, in respect of the costs mentioned in subsection (3I), at a time determined in accordance with such regulations.
The costs are those incurred by the Secretary of State in relation to the consideration of the agreement or amendment, including, in particular, the costs of obtaining advice in relation to the agreement or amendment.
The Secretary of State's powers under subsections (1) to (3B) must be exercised with the aim of securing that prudent provision is made for the technical matters (including the financing of the designated technical matters).
Before deciding whether to approve or reject a programme, the Secretary of State must consult each interested body about—so far as it relates to a function conferred on the interested body by or under an enactment.
the programme, and
any modification which it is proposed to make, or any condition it is proposed to impose,
“Interested body” means—
the Office for Nuclear Regulation,
in relation to a funded decommissioning programme for a site in England and Wales, the Environment Agency, and
in relation to a funded decommissioning programme for a site in Northern Ireland, the Department of the Environment for Northern Ireland.
Before approving a programme with modifications or subject to conditions, the Secretary of State must give the following persons an opportunity to make written representations about the proposed modifications or conditions—
the site operator;
any other person with obligations under the programme;
in the case of proposed modifications, any person who would have such obligations were the modifications made.
The Secretary of State may not reject a programme without informing the site operator of the reasons for doing so.
The Secretary of State must act without unreasonable delay in reaching a decision as to whether to approve or reject a programme.
Where a nuclear site licence has been applied for, but not yet granted, in respect of a site, references in this section to the site operator include references to the person who has applied for a nuclear site licence in respect of the site.
This section applies where a person is required to submit a programme under section 45 by reason of an application made for a nuclear site licence in respect of a site.
It is an offence for the person to use or permit another person to use the site, by virtue of the licence, at a time when there is no programme submitted in accordance with that requirement and approved under section 46.
A person guilty of an offence under this section is liable—
on summary conviction, to a fine not exceeding the statutory maximum, or
on conviction on indictment, to imprisonment for a term not exceeding 2 years or to a fine, or both.
Modification of approved programmes
Where the Secretary of State has approved a funded decommissioning programme in respect of a site, a person mentioned in subsection (2) may—
propose a modification of the programme, or
propose a modification of the conditions to which the approval of the programme is subject.
Those persons are—
the Secretary of State,
the site operator, and
any other person who has obligations under the programme (provided that the site operator consents to the proposed modification).
A proposal under subsection (1) may, in particular, propose—
that obligations, or additional obligations, be imposed on a body corporate associated with the site operator, or
the removal of obligations imposed on a body corporate which is or was so associated.
In subsection (1)(b) “modification of the conditions” includes the imposition of conditions where the programme was approved unconditionally.
The proposal must be made by notice in writing given—
if the proposal is made by the Secretary of State, to the site operator, and
in any other case, to the Secretary of State.
Where a proposal is made, or advice is sought from the Secretary of State about the making of a proposal, the site operator must pay to the Secretary of State such fee as may be determined in accordance with regulations under section 54, in respect of the costs mentioned in subsection (4), at a time determined in accordance with such regulations.
The costs are those incurred by the Secretary of State in relation to the consideration of the proposal(or the making of a proposal), including, in particular, the costs of obtaining advice in relation to—
the proposal, or
information required in relation to the proposal in accordance with section 52(4).
Where the Secretary of State makes the proposal, the following persons must be given the opportunity to make written representations about the proposal—
the site operator;
any other person with obligations under the programme;
any person who would have such obligations if the proposed modification were made.
The Secretary of State must—
decide whether the proposed modification is to be made, and
give notice of the decision, and the reasons for it, to every person who has obligations under the approved funded decommissioning programme, and
if the decision is to make the modification, give such notice to any other person who will have such obligations by reason of the modification.
The Secretary of State's power under subsection (6)(a) must be exercised with the aim of securing that prudent provision is made for the technical matters (including the financing of the designated technical matters).
Before deciding whether the proposed modification is to be made, the Secretary of State must consult each interested body (within the meaning of section 46(6)) in so far as the modification relates to a function conferred on the interested body by or under an enactment.
The Secretary of State may make regulations disapplying section 49 in relation to modifications which—
are proposed by a person within section 48(2) (other than the Secretary of State), and
are of a description specified by the regulations.
Before making regulations under subsection (1), the Secretary of State must consult—in so far as the regulations relate to a function conferred on the body by or under an enactment.
the Office for Nuclear Regulation,
the Environment Agency, and
the Department of the Environment for Northern Ireland,
The regulations may, in particular—
describe a modification by reference to its financial consequences;
specify that, in determining whether a modification is of a specified description or not, the cumulative financial effect of all modifications, or all modifications of a specified class, within a specified period is to be taken into account.
In the case of a modification to which the regulations apply, the site operator must give notice of the modification to the Secretary of State in such manner as may be specified in the regulations.
This section applies where, in the case of an approved funded decommissioning programme, a modification is made of the programme or of the conditions to which its approval is subject.
The modification does not take effect until the relevant time, and from that time this Chapter has effect—
in the case of a modification of the programme, as if the programme had been approved by the Secretary of State under section 46 in the modified form;
in the case of a modification of the conditions to which the approval of the programme is subject, as if the Secretary of State had approved the programme under that section subject to the modified conditions.
“The relevant time” means—
The time specified in a notice, as mentioned in subsection (3)(a) or (b), must not be earlier than the time the notice is given.
Information
This section applies where either Condition A or Condition B is satisfied.
Condition A is that a funded decommissioning programme has been submitted to the Secretary of State under section 45 and the Secretary of State has not yet decided whether to approve or reject it.
Condition B is that—
a modification of a programme, or of the conditions subject to which a programme is approved, has been proposed in accordance with section 48,
the modification is not one to which regulations under section 50(1) apply, and
the Secretary of State has not yet decided whether the modification should be made.
The Secretary of State may by notice in writing require a person within subsection (5) —
to produce documents, or documents of a description, specified in the notice, or
to provide information, or information of a description, specified in the notice.
Those persons are—
the site operator;
any other person with obligations under the programme;
in a case where Condition A is satisfied, any body corporate associated with the site operator and in relation to which the Secretary of State is considering making a modification under section 46 which, if made, would result in the body corporate having obligations under the programme;
in a case where Condition B is satisfied, any person who would have such obligations if the proposed modification were made.
A notice under subsection (4)—
must specify the period within which the documents or information are to be provided or produced;
may, in the case of information, require it to be provided in a manner or form specified in the notice.
This section applies only to information and documents the provision or production of which the Secretary of State considers necessary for the purpose of making the decision referred to in subsection (2) or (3).
If at any time it appears to the Secretary of State that a person has failed to comply with a notice under subsection (4), the Secretary of State may make an application to the High Court under this section.
If, on an application under this section, the High Court decides that the person has failed to comply with the notice, it may order the person to take such steps as it directs for securing that the notice is complied with.
Where a nuclear site licence has been applied for, but not yet granted, in respect of a site, references in this section to the site operator include references to the person who has applied for a nuclear site licence in respect of the site.
This section applies where a funded decommissioning programme has been approved by the Secretary of State in relation to a site under section 46.
The Secretary of State may by notice in writing require information relating to the operation of the programme from—
the site operator;
any other person who has obligations under the programme.
A notice under subsection (2) may be given only for the purpose of enabling the Secretary of State to determine—
whether the programme is being complied with;
whether it will be possible for obligations under the programme arising at a future date to be complied with;
whether the programme makes prudent provision for the technical matters (including the financing of the designated technical matters).
Subsection (5) applies if the Secretary of State has reason to believe (whether as a result of information obtained under this section or otherwise)—
that the programme is not being complied with,
that it will not be possible for an obligation under the programme arising at a future date to be complied with, or
that the programme does not make prudent provision for the matters mentioned in subsection (3)(c).
The Secretary of State may by notice in writing require information from—for the purpose of enabling the Secretary of State to determine whether to make a proposal, or the nature of any proposal to be made, under section 48 in respect of the programme.
the site operator,
any other person who has obligations under the programme, or
any body corporate associated with the site operator,
Where a notice under subsection (2) or (5) has been given, the Secretary of State may require the site operator to pay to the Secretary of State such fee in respect of costs incurred by the Secretary of State in obtaining advice in relation to the information as may be determined in accordance with regulations under section 54.
A fee under subsection (6) must be paid at a time determined in accordance with regulations under section 54.
If at any time it appears to the Secretary of State that a person has failed to comply with a notice under subsection (2) or (5), the Secretary of State may make an application to the High Court under this section.
If, on an application under this section, the High Court decides that the person has failed to comply with the notice, it may order the person to take such steps as it directs for securing that the notice is complied with.
Regulations and guidance
The Secretary of State may make regulations about—
the preparation, content and implementation of funded decommissioning programmes,
the modification, under those sections, of the conditions subject to which funded decommissioning programmes are approved.
Regulations under this section may, in particular, make provision—
about the technical matters in relation to sites to which section 45(2) applies;
about the estimation of the costs likely to be incurred in connection with the designated technical matters in relation to such sites, and about the manner in which such estimates are to be verified (which may include provision requiring verification by an independent third party);
about the financing of those designated technical matters, including the security to be provided for the performance of obligations imposed in respect of those matters by virtue of programmes and the establishment and maintenance, for the purposes of such security, of trusts or other arrangements to hold and accumulate funds;
about payments to a site operator or another person from funds so held or accumulated;
for information prescribed, or of a description prescribed, by the regulations to be supplied to the Secretary of State by persons with obligations under programmes at such intervals, or on such occasions, as may be so prescribed;
enabling the Secretary of State to charge a fee to a site operator in order to recover the costs of obtaining advice in relation to information supplied in accordance with regulations under paragraph (e);
about how fees payable under this Chapter are to be determined;
about when fees payable under this Chapter are to be paid.
Regulations under this section may include provision making it an offence to contravene specified provisions of the regulations.
Where regulations under subsection (3) create an offence, they must also make provision as to the mode of trial and punishment of offences; but—
any provision as to punishment on summary conviction must not authorise a fine exceeding the statutory maximum or imprisonment, and
any provision as to punishment on conviction on indictment must not authorise imprisonment for a term exceeding 2 years.
The Secretary of State may publish guidance about the preparation, content, modification and implementation of funded decommissioning programmes (including any matter mentioned in subsection (2)(a) to (e)).
The Secretary of State must publish guidance about factors which it may be appropriate to consider in deciding whether or not—
to approve a programme,
to approve a programme with modifications or subject to conditions, or
to make a proposed modification to a programme or the conditions subject to which it is approved.
When making a decision of a kind mentioned in subsection (6), the Secretary of State must have regard to the guidance for the time being in force under this section.
Before making regulations or publishing guidance under this section, the Secretary of State must consult—in so far as the regulations or guidance relate to functions conferred on them by or under an enactment.
the Office for Nuclear Regulation,
the Environment Agency, and
the Department of the Environment in Northern Ireland,
Subsection (8) may be satisfied by consultation before, as well as by consultation after, the commencement of this section or the passing of this Act.
The Secretary of State must lay before Parliament a copy of any guidance published under this section.
Guidance under this section may make different provision for different cases or circumstances.
Regulations under section 54 may make provision enabling the Secretary of State to rely, in specified circumstances, on verification of financial matters by an independent third party.
Regulations may, in particular, provide that for the purposes of the Secretary of State's functions under this Chapter, the Secretary of State may—
rely on estimates of costs verified by an independent third party in accordance with the regulations;
rely on an independent third party's assessment of the prudence or otherwise of any provision made for the financing of the designated technical matters.
Protection of decommissioning funds
This section applies where, in relation to a site to which section 45 applies, any security for the performance of obligations relating to the designated technical matters has been provided by a person (“the security provider”) by way of a trust or other arrangements, in accordance with an approved funded decommissioning programme.
In this section a reference to “the protected assets” is a reference to the security and any property or rights in which it consists.
In this section “security” includes—
a charge over a bank account or any other asset;
a deposit of money;
a performance bond or guarantee;
an insurance policy;
a letter of credit.
The manner in which, and purposes for which, the protected assets are to be applied and enforceable (whether in the event of the security provider's insolvency or otherwise) is to be determined in accordance with the trust or other arrangements.
For the purposes of subsection (4), no regard is to be had to so much of the Insolvency Act 1986 (c. 45), the Insolvency (Northern Ireland) Order 1989 (S.I. 1989/2405 (N.I. 19)) or any other enactment or rule of law as, in its operation in relation to the security provider or any conduct of the security provider, would—
prevent or restrict the protected assets from being applied in accordance with the trust or other arrangement, or
prevent or restrict their enforcement for the purposes of being so applied.
Enforcement
It is an offence for a site operator or a body corporate associated with a site operator (a “relevant person”) to fail to comply with an obligation imposed on the relevant person by an approved funded decommissioning programme in respect of the site.
In proceedings against a person for an offence under this section, it is a defence for the person to prove that due diligence was exercised to avoid committing the offence.
A person guilty of an offence under this section is liable—
on summary conviction, to a fine not exceeding the statutory maximum, or
on conviction on indictment, to imprisonment for a term not exceeding 2 years or to a fine, or both.
This section applies where—
a person fails to comply with an obligation imposed on the person by an approved funded decommissioning programme, or
a person on whom obligations are imposed by such a programme has engaged in unlawful conduct which the Secretary of State thinks may affect the programme.
In this section—“the defaulter” means a person to whom subsection (1)(a) or (b) applies, and“unlawful conduct” means conduct which is unlawful under the criminal law of a part of the United Kingdom.
A person has engaged in unlawful conduct for the purposes of subsection (1) if—
the person has been found guilty of the unlawful conduct by a court in a part of the United Kingdom,
the period for an appeal against the conviction has expired, and
if an appeal has been made, it has been withdrawn or finally determined.
The Secretary of State may direct the defaulter to take steps which the Secretary of State considers necessary or appropriate to comply with the obligation or remedy the effects of the unlawful conduct.
Before giving a direction under subsection (4), the Secretary of State must consult each interested body (within the meaning of section 46(6)) in so far as the direction relates to a function conferred on the interested body by or under an enactment.
If at any time it appears to the Secretary of State that the defaulter has failed to comply with a direction under subsection (4), the Secretary of State may make an application to the High Court under this section.
If, on an application under this section, the High Court decides that the defaulter has failed to comply with the direction, it may order the defaulter to take such steps as it directs for securing that the direction is complied with.
The disclosure is permitted if—
it is made with the consent of the person by or on behalf of whom the information was provided;
it is made under section 63 or for the purposes of any other function of the Secretary of State under this Chapter;
it is a disclosure of information obtained under section 63 by the Office for Nuclear Regulation and it is made by the Office for Nuclear Regulation for the purposes of its functions under the Nuclear Installations Act 1965 (c. 57);
it is a disclosure of information obtained under that section by the Environment Agency or the Department of the Environment for Northern Ireland and it is made by the Agency or Department for the purposes of its functions under the Radioactive Substances Act 1993 (c. 12) the Environmental Permitting (England and Wales) Regulations 2016 (S.I. 2016/1154) in relation to radioactive material and radioactive waste within the meaning of those Regulations;
it is required by or under an enactment.
A person guilty of an offence under this section is liable—
on summary conviction, to a fine not exceeding the statutory maximum;
on conviction on indictment, to imprisonment for a term not exceeding 2 years or to a fine, or both.
It is an offence for a person, knowingly or recklessly, to supply information which is false or misleading in a material respect to the Secretary of State in response to a requirement under this Chapter.
A person guilty of an offence under this section is liable—
on summary conviction, to a fine not exceeding the statutory maximum, or
on conviction on indictment, to imprisonment for a term not exceeding 2 years or to a fine, or both.
No proceedings for an offence under this Chapter (including an offence created by regulations under section 54) may be instituted except by the Secretary of State or—
in England and Wales, the Director of Public Prosecutions, or
in Northern Ireland, the Director of Public Prosecutions for Northern Ireland.
Miscellaneous
The Secretary of State may, by order, modify section 45 so that it also applies where, on or after the day on which the order comes into force, a person applies for a nuclear site licence in respect of a site of a description specified in the order.
The sites which fall within a description specified under subsection (1) must be—
sites on which the person intends to construct a nuclear installation for a purpose connected with the generation of electricity, or
sites in respect of which an obligation has previously arisen under section 45 by virtue of paragraph (a) and on which the person intends to operate a nuclear installation which was constructed for such a purpose.
The Secretary of State may require a body within subsection (2) to provide the Secretary of State with such assistance as that body is reasonably able to give in connection with the performance by the Secretary of State of a function under this Chapter.
Those bodies are—
the Office for Nuclear Regulation;
the Environment Agency;
the Department of the Environment for Northern Ireland.
A body within subsection (2) may provide information to the Secretary of State if—
the information relates to a person within subsection (5), and
the Secretary of State or the body thinks that the information is relevant to a function of the Secretary of State under this Chapter.
The Secretary of State may provide information to a body within subsection (2) if—
the information relates to a person within subsection (5), and
the Secretary of State or the body thinks that the information is relevant to a function of the body in relation to the programme.
The persons are—
a site operator, or another person, who has obligations under a funded decommissioning programme (whether or not the programme is approved),
a body corporate which is associated with a site operator who has submitted a funded decommissioning programme if—
the Secretary of State is considering making a modification under section 46 which, if made, would result in the body corporate having obligations under the programme, or
a proposal under section 48 has been made for a modification which, if made, would result in the body corporate having obligations under the programme, or
in the case of subsection (3) only, a body corporate which is so associated and in relation to which the Secretary of State is considering whether to make a proposal of the kind mentioned in paragraph (b)(ii).
This section applies despite any statutory or other restriction on the disclosure of information.
Where a nuclear site licence has been applied for, but not yet granted, in respect of a site, references in this section to the site operator include references to the person who has applied for a nuclear site licence in respect of the site.
This section applies where a person (“the former site operator”) ceases to hold a nuclear site licence in respect of a site.
This Chapter continues to apply to the former site operator as if it were the site operator in relation to the site.
But the Secretary of State may give notice to the former site operator releasing it from its obligations under—
this Chapter, and
an approved funded decommissioning programme in respect of the site.
A notice under subsection (3)—
may relate to all the former site operator's obligations or only to specified obligations;
may relate to the whole or part of a site;
may relate to all nuclear installations on a site or only to specified nuclear installations;
may be unconditional or subject to conditions.
The power conferred by subsection (3) applies in relation to any other person with obligations under a programme within subsection (3)(b) as it applies in relation to the site operator.
This section is without prejudice to the operation of this Chapter in relation to another person who applies for or is granted a nuclear site licence in respect of the site.
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Where the Secretary of State enters an agreement for, or in connection with, the disposal of relevant hazardous material by or on behalf of the Secretary of State, the agreement may provide for a fee to be paid to the Secretary of State.
The Secretary of State may not enter an agreement which provides for the payment of a fee unless the consent of the Treasury has been obtained in relation to the amount of the proposed fee.
The fee for which such an agreement provides may include—
such amount as the Secretary of State considers prudent by reason of any uncertainty which exists about the relevant expenditure which will or may be incurred in connection with the Secretary of State's obligations under the agreement in relation to the relevant hazardous material;
an amount in respect of such proportion as the Secretary of State considers appropriate of the aggregate of—
the relevant expenditure which has been, will or may be, incurred in connection with the design and construction of a repository in which material (including any hazardous material to which the agreement relates) is to be disposed of, and
such amount as the Secretary of State considers it prudent to make allowance for by reason of any uncertainty which exists about the relevant expenditure which will or may be incurred as mentioned in sub-paragraph (i).
The Secretary of State may make regulations providing for a person who makes a proposal to the Secretary of State to enter an agreement of the kind mentioned in subsection (1), or proposes an amendment to such an agreement, to pay a fee to the Secretary of State in respect of the costs incurred in relation to the consideration of the proposal, including, in particular, the costs of obtaining advice in relation to it.
The regulations may, in particular, make provision about—
when the fee is to be paid;
how the amount of the fee is to be determined.
In this section—“hazardous material” has the meaning given by section 37 of the Energy Act 2004 (c. 20);“relevant expenditure” means expenditure incurred by the Secretary of State, the Nuclear Decommissioning Authority or any other person;“relevant hazardous material” means hazardous material which is, or is required to be, the subject of a funded decommissioning programme.
General
For the purposes of this Chapter, one body corporate is associated with another if one of them has a significant interest in the other or a third body corporate has a significant interest in both of them; and subsections (2) to (5) set out the circumstances in which one body corporate (“A”) has a significant interest in another (“B”).
Where B is a company, A has a significant interest in B if A possesses or is entitled to acquire—
20% or more of the issued share capital of B,
such rights as would entitle A to exercise 20% or more of the votes exercisable in general meetings of B,
such part of the issued share capital of B as would entitle A to 20% or more of the amount distributed if the whole of the income of B were in fact distributed among the shareholders, or
such rights as would, in the event of the winding up of B or in any other circumstances, entitle it to receive 20% or more of the assets of B which would then be available for distribution among the shareholders.
Where B is a limited liability partnership, A has a significant interest in B if A—
holds 20% or more of the voting rights in B,
is a member of B and has a right to appoint or remove 20% or more of other members, or
is a member of B and controls alone, or pursuant to an agreement with other members, 20% or more of the voting rights in B.
In subsection (3)(a) and (c) the references to “voting rights” are to the rights conferred on members in respect of their interest in a limited liability partnership to vote on those matters which are to be decided on by a vote of the members of the limited liability partnership.
In any case, A has a significant interest in B if A has the power, directly or indirectly, to secure that the affairs of B are conducted in accordance with A's wishes.
In determining whether, by virtue of this section, A has a significant interest in B, A shall be taken to possess—
any rights and powers possessed by a person as nominee for A, and
any rights and powers possessed by a body corporate which A controls (including rights and powers which such a body corporate would be taken to possess by virtue of this paragraph).
In order to determine whether one body corporate controls another for the purposes of subsection (6)(b), subsections (2) to (5) and (6)(a) are to be applied, but as if—
for “has a significant interest in” in each place there were substituted “ controls ”, and
for “20%” in each place there were substituted “ 50% ”.
This section is subject to section 67A.
In determining whether, by virtue of section 67, A has a significant interest in B, the following are to be disregarded—
relevant share security rights that A holds in relation to B;
subject to subsection (4), shares in B that are acquired by A in consequence of the exercise of relevant share security rights that A holds in relation to B;
any power that A has, directly or indirectly, to secure that the affairs of B are conducted in accordance with A’s wishes by virtue of—
relevant share security rights that A holds in relation to B,
arrangements that are designed to facilitate the exercise of relevant share security rights that A holds in relation to B, or
relevant asset security rights that A holds in relation to B, if A also holds relevant share security rights in relation to B.
A holds “relevant share security rights” in relation to B if A holds—
rights to enforce a security interest over shares in B,
rights relating to enforcement of a security interest over shares in B, or
rights that enable A to preserve the value of a security interest over shares in B.
A holds “relevant asset security rights” in relation to B if A holds—
rights to enforce a security interest over any of B’s assets,
rights relating to enforcement of a security interest over any of B’s assets, or
rights that enable A to preserve the value of a security interest over any of B’s assets.
Subsection (1) (b) does not apply if the shares acquired by A are retained by A for a purpose other than that of preserving the value of the security interest in question or of realising it.
In this section—
a reference to “shares” includes a reference to rights attached to shares;
a reference to A holding rights in relation to B includes a reference to—
A holding those rights on trust for another person, and
A being the beneficiary of a trust of those rights;
a reference to A acquiring shares in B includes a reference to—
A acquiring shares in B to hold on trust for another person, and
another person acquiring shares in B to hold on trust for A;
a reference to rights includes a reference to powers.
In this Chapter—“approved funded decommissioning programme” means a funded decommissioning programme approved under section 46;“cleaning-up” and “decommissioning”, in relation to a site or installation, include the treatment, storage, transportation and disposal of hazardous material (within the meaning of section 37 of the Energy Act 2004) and of other matter and substances that need to be dealt with or removed in or towards making the site or installation suitable to be used for other purposes;“the designated technical matters” has the meaning given by section 45;“document” includes anything in which information is recorded in any form;“enactment” includes an enactment comprised in, or in an instrument made under, an Act of the Scottish Parliament or Northern Ireland legislation;“funded decommissioning programme” is to be construed in accordance with section 45;“nuclear installation” has the meaning given by section 26 of the Nuclear Installations Act 1965 (c. 57);“nuclear site licence” has the meaning given by that section;“relevant nuclear installation”, in relation to a site, means a nuclear installation which is or is intended to be established on the site;“site operator” means a person who holds a nuclear site licence in respect of a site;“the technical matters” has the meaning given by section 45.
The Energy Act 2004 (c. 20) is amended as follows.
In section 105(2) (notices), for “that person” substitute.
In section 105(3) (consents) for the words from the beginning to “proposals—” substitute—.
After section 105 (requirement to prepare decommissioning programme) insert—
In section 108 (reviews of decommissioning programmes), after subsection (3) insert—
After section 110 of the Energy Act 2004 (c. 20) (failure to carry out decommissioning programme) insert—
In section 114(2) of that Act (interpretation), in the definition of “security” after paragraph (c) insert—.
After section 112 of the Energy Act 2004 (c. 20) (duty to inform Secretary of State) insert—
Section 30 of the Petroleum Act 1998 (c. 17) (persons who may be required to submit programmes) is amended as follows.
In subsection (1)—
after paragraph (b) insert—, and
in paragraph (e) for “company” in each place substitute “ body corporate ”.
In subsection (2)(c) for “company” in each place substitute “ body corporate ”.
For subsection (5)(b) substitute—.
For subsection (8) substitute—
In subsection (9)—
for “subsection (8)” substitute “ subsections (8) to (8D) ”, and
for “company” in each place substitute “ body corporate ”.
In section 31 of that Act (notices: supplementary provision), before subsection (1) insert—
In section 34 of that Act (revision of programmes), after subsection (3) insert—
Section 38 of the Petroleum Act 1998 (c. 17) (information and notices) is amended as follows.
For subsection (1) substitute—
In subsection (2)—
for the words from “who has” to “that duty” substitute “ falling within subsection (2A) will be capable of carrying out any abandonment programme which has been submitted (whether or not it is approved) or may be submitted in relation to an installation or pipeline ”, and
in paragraph (a) after “information” insert “ (which may relate to the estimated costs of abandonment of the installation or pipeline or to any other financial or other matter) ”.
After that subsection insert—
For subsection (4) substitute—
After subsection (6) add—
After section 38 of the Petroleum Act 1998 (c. 17) insert—
This section has effect in relation to a trust or other arrangements established on or after 1st December 2007.
In Part 5 of the Petroleum Act 1998 (c. 17), before section 46 (Northern Ireland and Isle of Man shares of petroleum revenue) insert—
This section applies in relation to any well the drilling of which commences on or after the date on which this section comes into force.
Provisions relating to oil and gas
Petroleum licences
After section 5 of the Petroleum Act 1998 (c. 17) (existing licences) insert—
Schedule 3 amends the model clauses contained in the instruments specified in that Schedule.
Where a licence granted under the Petroleum (Production) Act 1934 (c. 36) or the Petroleum Act 1998 (c. 17), and in force immediately before commencement, incorporates model clauses amended by a paragraph of Schedule 3, the licence has effect with the amendments provided for by that paragraph of that Schedule.
The reference in subsection (2) to model clauses includes model clauses subject to any amendment or modification or with the omission of any model clause.
Where an amendment made by a paragraph of Schedule 3 confers a power to give a notice requiring the plugging and abandonment of a well, the power may not be exercised in relation to a well the drilling of which began before commencement.
Where an amendment made by a paragraph of Schedule 3 confers a power of revocation or partial revocation of a licence, that power may not be exercised by reason of an event which takes place before commencement.
A reference in any document to provisions of a licence which are amended by Schedule 3 is to be construed, unless the nature of the document or the context otherwise requires, as a reference to those provisions as amended.
A provision inserted in a licence by virtue of Schedule 3 may be altered or deleted by deed executed by the Secretary of State and the licensee or, as respects Scotland, by an instrument subscribed or authenticated by the Secretary of State and the licensee in accordance with the Requirements of Writing (Scotland) Act 1995 (c. 7).
In this section “commencement”, in relation to a paragraph of Schedule 3, means the time when that paragraph comes into force.
Third party access
In section 66(1) of the Pipe-lines Act 1962 (c. 58) (interpretation)—
in the definition of “gas processing operation”, omit “and” after paragraph (b) and after paragraph (c) insert—,
in the definition of “terminal”, omit “and” after paragraph (b) and after paragraph (c) insert, and
in the definition of “upstream petroleum pipe-line” after paragraph (c) insert— “ including all apparatus, works and services associated with the operation of such a pipe-line or network. ”
In section 12 of the Gas Act 1995 (c. 45) (rights to use gas processing facilities)—
in subsection (6), in the definition of “gas processing operation”, omit “and” at the end of paragraph (b) and after paragraph (c) insert—, and
for subsection (7) substitute—
In section 26 of the Petroleum Act 1998 (c. 17) (meaning of “pipeline”)—
in subsection (1) for “any apparatus and works associated with such a pipe or system” substitute “ all apparatus, works and services associated with the operation of such a pipe or system ”, and
omit subsection (2).
In section 28 of that Act (interpretation of Part 3)—
in the definition of “gas processing operation”, omit “and” after paragraph (b) and after paragraph (c) insert—,
after the definition of “notice” insert—, and
in the definition of “terminal”, after paragraph (a) insert—.
The Pipe-lines Act 1962 (c. 58) is amended as follows.
After section 10F (reducing necessity for constructing additional pipelines) insert—
In section 10E (third party access to upstream petroleum pipelines), in subsection (1) after “pipe-lines” insert “ (but does not apply to a pipe-line if and to the extent that section 14 of the Petroleum Act 1998 applies in relation to it) ”.
In section 10F (supplemental provision relating to third party access), after subsection (4) add—
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Works detrimental to navigation
Consent required for carrying out of certain operations
A person must not, without the written consent of the Secretary of State, carry out in the regulated zone (see section 82Q) any operation to which this subsection applies (see subsections (2) and (3)).
Subsection (1) does not apply to an operation if a marine licence under Part 4 of the Marine and Coastal Access Act 2009 is needed to carry out the operation.
Subject to that, subsection (1) applies to an operation if—
it causes, or is likely to result in, obstruction or danger to navigation (whether while the operation is being carried out or subsequently),
it is of a description falling within subsection (4), and
it may be carried out only with a permission falling within subsection (5).
The descriptions of operations are—
the construction, alteration, improvement, dismantlement or abandonment of any works;
the deposit of any object or materials;
the removal of any object or materials.
The permissions are—and see also subsection (6).
a licence under section 3 of the Petroleum Act 1998 or section 2 of the Petroleum (Production) Act 1934,
a works authorisation under Part 3 of the Petroleum Act 1998 (construction etc of submarine pipelines),
For the purposes of this Part, the operations which may be carried out only with a permission falling within subsection (5) include operations which, by virtue of a permission falling within paragraph (a) or (b) of that subsection, may be carried out only with the consent of the Secretary of State or another person.
In the case of an authorised exploration or exploitation operation (see subsection (8))—
the reference in subsection (3) to an operation being likely to result in obstruction or danger to navigation,includes
a reference to the operation being likely to result in obstruction or danger to navigation by reason of any use intended to be made of the works in question when constructed, altered or improved.
In this Part “authorised exploration or exploitation operation” means any operation—
which is of a description falling within subsection (4)(a), and
which may be carried out only with a permission falling within subsection (5).
The Secretary of State may, as a condition of considering an application for consent under section 82A, require to be furnished with such plans and particulars of the proposed operation as the Secretary of State may consider necessary.
On receipt of any such application, the Secretary of State may cause to be published notice of—
the application, and
the time within which, and the manner in which, objections to the application may be made.
Any such notice is to be published in such a manner as to be likely to come to the attention of those likely to be interested in, or affected by, the application.
The Secretary of State may cause an inquiry to be held in connection with the determination of an application for consent.
If the Secretary of State is of the opinion that any operation in respect of which an application is made for consent under section 82A will cause, or is likely to result in, obstruction or danger to navigation, subsection (2) applies.
In any such case, the Secretary of State must either—
refuse to give consent, or
give consent subject to such conditions as the Secretary of State considers appropriate.
In exercising functions under subsection (2), the Secretary of State must have regard to the nature and extent of the obstruction or danger which it appears to the Secretary of State would otherwise be caused or be likely to result.
In the case of an authorised exploration or exploitation operation—
any reference in subsection (1) or (3) to an operation being likely to result in obstruction or danger to navigation,includes
a reference to the operation being likely to result in obstruction or danger to navigation by reason of any use intended to be made of the works in question when constructed, altered or improved.
A consent of the Secretary of State under section 82A may be given so as to continue in force, unless renewed, only if the operation for which the consent is given is begun or completed within such period as may be specified in the consent.
Subsection (5) applies in relation to the renewal of a consent as it applies in relation to the giving of consent.
This section applies where the Secretary of State has given consent for an authorised exploration or exploitation operation, but subject to a condition (a “consent condition”).
A consent condition shall either—but this is subject to subsection (5).
remain in force for a specified period, or
remain in force without limit of time,
A consent condition, in addition to binding the person to whom the consent is given, also binds, so far as is appropriate, any other person who for the time being owns, occupies, or enjoys any use of, the works in question.
Where—the Secretary of State may vary the condition for the purpose of enhancing the effectiveness of the aids to navigation which are to be provided or the other measures which are to be taken.
a consent condition relates to the taking of navigational precautions, and
the Secretary of State considers it appropriate to vary the condition in the interests of the safety of navigation (whether or not the operation has been completed),
The Secretary of State may revoke any consent condition.
In this section “taking of navigational precautions” means any of the following—
the provision of any lights, signals or other aids to navigation;
the stationing of guard ships in the vicinity of the works in question;
the taking of any other measures for the purpose of, or in connection with, controlling the movements of ships in the vicinity of those works.
Directions by the Secretary of State
This section applies if—
the person to whom a consent under section 82A is given fails to comply with any provision of the consent, or
a person who, by virtue of section 82D(3), is bound by a consent condition fails to comply with the condition.
The Secretary of State may direct that person (the “defaulter”) to take steps which the Secretary of State considers necessary or appropriate to comply with the provision or condition within a period specified in the direction.
The Secretary of State must consult the defaulter before giving a direction under subsection (2).
If the defaulter fails to comply with a direction under subsection (2), the Secretary of State may—
comply with the direction on behalf of the defaulter, or
make arrangements for another person to do so.
A person taking action by virtue of subsection (4) may—
do anything which the defaulter could have done, and
recover from the defaulter any reasonable costs incurred in taking the action.
A person (“P”) liable to pay any sum by virtue of subsection (5)(b) must also pay interest on that sum for the period beginning with the day on which the person taking action by virtue of subsection (4) notified P of the sum payable and ending with the date of payment.
The rate of interest payable in accordance with subsection (6) is a rate determined by the Secretary of State as comparable with commercial rates.
The defaulter must provide a person taking action by virtue of subsection (4) with such assistance as the Secretary of State may direct.
The power to give a direction under this section is without prejudice to any provision made—
in the consent, with regard to the enforcement of any of its provisions, or
in the condition, with regard to the enforcement of the condition.
Emergency safety requirements
This section applies in any case where—
the Secretary of State has given consent (“the relevant consent”) for an authorised exploration or exploitation operation, and
at any time after the giving of that consent, the condition in subsection (2) is met.
The condition is that it appears to the Secretary of State that any danger to navigation has arisen by reason of—
any substantial damage to any works to which the relevant consent relates, or
any other substantial and unforeseen change in the state or position of any such works.
If it appears to the Secretary of State necessary to do so in the interests of the safety of navigation, the Secretary of State may serve a notice (an “emergency safety notice”) on the consent holder.
By serving an emergency safety notice on the consent holder, the Secretary of State imposes on the consent holder such requirements as are prescribed in the notice with respect to any of the matters specified in subsection (5).
Those matters are—
the provision on, or in the vicinity of, the works in question of any lights, signals or other aids to navigation, and
the stationing of guard ships in the vicinity of those works.
An emergency safety notice may be served by the Secretary of State whether or not—
the operation in question has been completed, or
any condition was imposed by the Secretary of State, on giving the relevant consent, with respect to any of the matters referred to in subsection (5).
If the consent holder fails to comply with an emergency safety notice within the time allowed, the Secretary of State may—
comply with the notice on behalf of the consent holder, or
make arrangements for another person to do so.
For the purposes of subsection (1) “the time allowed” is the period of 24 hours beginning with the time when the emergency safety notice is served on the consent holder or as soon after the end of that period as is reasonably practicable.
A person taking action by virtue of subsection (1) may—
do anything which the consent holder could have done, and
recover any reasonable costs incurred in taking the action from such one or more persons falling within subsection (4) as the Secretary of State considers appropriate.
The persons are—
the consent holder;
any other person or persons bound by a consent condition by virtue of section 82D(3).
A person (“P”) liable to pay any sum by virtue of subsection (3)(b) must also pay interest on that sum for the period beginning with the day on which the person taking action by virtue of subsection (1) notified P of the sum payable and ending with the date of payment.
The rate of interest payable in accordance with subsection (5) is a rate determined by the Secretary of State as comparable with commercial rates.
Once an emergency safety notice has been complied with (whether by the consent holder or otherwise)—
the requirements of the notice are, subject to subsection (8), to be treated for the purposes of this Part as conditions subject to which the consent was given, but
If it appears to the Secretary of State (whether on the application of any person or otherwise) that the circumstances giving rise to the urgent necessity for the imposition of the requirements no longer exist, the Secretary of State must revoke the requirements by notice served on the consent holder.
Where the Secretary of State has served an emergency safety notice in respect of any particular circumstances, subsection (7) does not preclude the Secretary of State from serving a further such notice in respect of those circumstances.
This section applies where—
a consent under section 82A(1) has been given subject to conditions,
a person falling within subsection (2) fails to comply with a condition, and
it appears to the Secretary of State that any danger to navigation has arisen by reason of the failure to comply with the condition.
The persons are—
the consent holder;
any person bound by the condition by virtue of section 82D(3).
If it appears to the Secretary of State necessary to do so in the interests of the safety of navigation, the Secretary of State may serve a notice (an “immediate action notice”) on the person, imposing on the person one or more specified requirements falling within subsection (4).
The requirements are—
a requirement to comply with the condition;
a requirement to take any specified action or actions to remedy the failure to comply with the condition.
Subsections (1) to (6) of section 82G apply in relation to a person and an immediate action notice as they apply in relation to the consent holder and an emergency safety notice.
In this section “specified” means specified in the immediate action notice.
Enforcement
It is an offence for a person—
to carry out an operation to which subsection (1) of section 82A applies without the written consent of the Secretary of State under that subsection, or
to fail to comply with a condition of such a consent.
A person guilty of an offence under this section is liable—
on summary conviction, to a fine not exceeding £50,000 a fine, or
on conviction on indictment, to imprisonment for a term not exceeding 2 years or to a fine, or both.
It is an offence for a person to make a statement which the person knows to be false, or recklessly to make a statement which is false, in order to obtain the consent of the Secretary of State under section 82A(1).
It is an offence for a person to fail to disclose information which the person knows, or ought to know, to be relevant to an application for the consent of the Secretary of State under section 82A(1).
A person guilty of an offence under this section is liable—
on summary conviction, to a fine not exceeding the statutory maximum, or
on conviction on indictment, to a fine.
It is an offence for a person to fail to comply with a direction under section 82E, unless the person proves that due diligence was exercised in order to avoid the failure.
A person guilty of an offence under this section is liable—
on summary conviction, to a fine not exceeding £50,000 a fine, or
on conviction on indictment, to imprisonment for a term not exceeding 2 years or to a fine, or both.
It is an offence for a person to fail to comply with—within the time allowed (within the meaning of section 82G(1)).
an emergency safety notice, or
an immediate action notice,
A person guilty of an offence under this section is liable—
on summary conviction, to a fine not exceeding £50,000 a fine, or
on conviction on indictment, to imprisonment for a term not exceeding 2 years or to a fine, or both.
Where the Secretary of State considers it necessary or expedient to restrain any actual or apprehended breach of section 82A(1), the Secretary of State may apply to the court for an injunction or, in Scotland, an interdict.
An application may be made whether or not the Secretary of State has exercised, or is proposing to exercise, any of the other powers under this Part.
On an application under subsection (1), the court may grant such an injunction or interdict as the court considers appropriate for the purpose of restraining the breach.
Rules of court may provide for an injunction or interdict to be issued against a person whose identity is unknown.
In this section “the court” means—
the High Court, or
in Scotland, the Court of Session.
The Secretary of State may appoint persons to act as inspectors to assist in carrying out the functions of the Secretary of State under this Part.
The Secretary of State may make payments, by way of remuneration or otherwise, to inspectors appointed under this section.
The Secretary of State may make regulations about—
the powers and duties of inspectors appointed under this section;
the powers and duties of any other person acting on the directions of the Secretary of State in connection with a function under this Part;
the facilities and assistance to be accorded to persons mentioned in paragraph (a) or (b).
The powers conferred by virtue of subsection (3) may include powers of a kind specified in section 108(4) of the Environment Act 1995 (powers of entry, investigation, etc).
Any regulations under this section may provide for the creation of offences which are punishable—
on summary conviction, by a fine not exceeding the statutory maximum or such lesser amount as is specified in the regulations, and
on conviction on indictment, by a fine.
Proceedings for a relevant offence may be taken, and the offence may for all incidental purposes be treated as having been committed, in any place in the United Kingdom.
Section 3 of the Territorial Waters Jurisdiction Act 1878 (restriction on prosecutions) does not apply to any proceedings for a relevant offence.
In this section “relevant offence” means—
an offence under this Part, or
an offence created by regulations under section 82N.
Supplementary provisions
The Secretary of State may charge fees in connection with carrying out functions under this Part.
The fees are to be determined by or in accordance with regulations made by the Secretary of State.
The regulations may authorise the fees to be determined by or in accordance with a scheme made by the Secretary of State.
The Secretary of State may by order provide that specified provisions of this Part are to apply, subject to any specified modifications, in relation to the carrying out of specified operations, or operations of a specified description, in the Scottish inshore region.
The operations must be operations—
which either fall within section 82A(4) or are carried on in the course of taking installation abandonment measures (or both),
which cause, or are likely to result in, obstruction or danger to navigation (whether while the operation is being carried out or subsequently), and
which the Scottish Ministers do not have power to control or regulate for the purpose of preventing such obstruction or danger.
The reference in subsection (1) to “the Scottish inshore region” includes a reference to—
the shore adjoining that region, and
any land in Scotland adjoining or adjacent to that shore.
If an order under this section makes provision in relation to the carrying out of an operation in the course of taking installation abandonment measures—
section 82A(3)(c) does not apply in relation to the operation, but
paragraph (a) is subject to any different modification or other provision to the contrary made by an order under this section.
For the purposes of this section “installation abandonment measures” are any measures taken in connection with the abandonment of—whether or not the measures are taken in pursuance of an abandonment programme.
an offshore installation or submarine pipeline, within the meaning of Part 4 of the Petroleum Act 1998, or
a carbon storage installation, within the meaning of section 30 of this Act,
In subsection (5) “abandonment programme” means—
an abandonment programme under Part 4 of the Petroleum Act 1998;
an abandonment programme under that Part, as it applies by virtue of section 30 of this Act.
In this section “specified” means specified in the order.
In this Part—“authorised exploration or exploitation operation” has the meaning given by section 82A(8);“consent holder” means the person to whom a consent under section 82A is given;“emergency safety notice” is to be read in accordance with section 82F(3);“immediate action notice” is to be read in accordance with section 82H(3);“regulated zone” means the area that consists of—the area of sea within the seaward limits of the territorial sea, other than the Scottish inshore region, and the area of sea within the limits of the UK sector of the continental shelf, and includes the bed and subsoil of the sea within those areas, the shore adjoining, and any land adjoining or adjacent to that shore, but does not include any land in Scotland;“Scottish inshore region” has the same meaning as in the Marine and Coastal Access Act 2009 (see section 322 of that Act);“sea” includes—any tidal waters; and any land covered with water at mean high water spring tide;“UK sector of the continental shelf” means the areas for the time being designated by an Order in Council under section 1(7) of the Continental Shelf Act 1964.
Miscellaneous
Duties of Gas and Electricity Markets Authority
In section 4AA of the Gas Act 1986 (c. 44) (duties of the Gas and Electricity Markets Authority)—
in subsection (1) after “interests of” insert “ existing and future ”,
after subsection (2)(b) insert,
omit subsection (5)(ba), and
in subsection (6) for “this section “consumers” includes” substitute “ subsections (3) and (4) references to consumers include ”.
In section 3A of the Electricity Act 1989 (c. 29) (duties of the Gas and Electricity Markets Authority)—
in subsection (1) after “interests of” insert “ existing and future ”,
after subsection (2)(b) insert,
omit subsection (5)(ba), and
in subsection (6) for “this section “consumers” includes” substitute “ subsections (3) and (4) references to consumers include ”.
Transmission systems
The Secretary of State may modify—
the standard conditions incorporated in licences under those provisions by virtue of section 8A of that Act;
a document maintained in accordance with the conditions of licences under section 6(1)(a) to (d) of that Act, or an agreement that gives effect to a document so maintained.
The Secretary of State may exercise the power conferred by subsection (1) for the purpose only of facilitating—
access to a transmission system in Great Britain or offshore waters;
efficient use of a transmission system in Great Britain or offshore waters.
The power conferred by subsection (1)—
may be exercised to make different provision in relation to different classes of customer;
may be exercised generally, only in relation to specified cases or subject to exceptions (including provision for a case to be excepted only so long as specified conditions are satisfied);
may be exercised differently in different cases or circumstances;
includes a power to make incidental, supplementary, consequential or transitional modifications.
The power conferred by subsection (1) may not be exercised after the end of the period of 2 years beginning with the day on which that subsection comes into force.
Provision included in a licence by virtue of that power—
need not relate to the activities authorised by the licence;
In this section—“offshore waters” means—waters in or adjacent to Great Britain which are between the low water mark and the seaward limits of the territorial sea, and waters within an area designated under section 1(7) of the Continental Shelf Act 1964 (c. 29);“transmission system” has the meaning given by section 4(4) of the Electricity Act 1989.
Before making a modification, the Secretary of State must consult—
the holder of any licence being modified,
the Gas and Electricity Markets Authority, and
such other persons as the Secretary of State considers appropriate.
Subsection (1) may be satisfied by consultation before, as well as by consultation after, the passing of this Act.
The Secretary of State must publish details of any modifications as soon as reasonably practicable after they are made.
In this section “modification” means a modification under section 84.
A modification under section 84 of part of a standard condition of a licence does not prevent any other part of the condition from continuing to be regarded as a standard condition for the purposes of Part 1 of the Electricity Act 1989 (c. 29).
Where the Secretary of State makes modifications under section 84(1)(b) of the standard conditions of a licence of any type, the Gas and Electricity Markets Authority must—
make the same modification of those standard conditions for the purposes of their incorporation in licences of that type granted after that time, and
publish the modification.
The Secretary of State may by order make such modifications of provisions made by or under an Act or an Act of the Scottish Parliament (whenever passed or made) as the Secretary of State considers appropriate in consequence of provision made under section 84.
Energy reports
In section 1 of the Sustainable Energy Act 2003 (c. 30) (annual reports on progress towards sustainable energy aims)—
in subsection (1) for “in each calendar year, beginning with 2004,” substitute “ , for each reporting period, ”,
in subsection (1A) omit paragraphs (a), (b) and (c),
omit subsections (1B) and (1C),
for subsections (2) and (3) substitute—, and
after subsection (4) insert—
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Smart meters : modification of licence conditions etc by Secretary of State
The Secretary of State may modify—
the standard conditions incorporated in licences under those provisions by virtue of section 8A of that Act;
a condition of a particular licence under section 7 or 7A of the Gas Act 1986 (c. 44) (transporter, supply and shipping licences);
the standard conditions incorporated in licences under those provisions by virtue of section 8 of that Act;
a condition of a particular licence under section 6(1)(f) of the Electricity Act 1989, or under section 7AB of the Gas Act 1986 (smart meter communication licences);
The Secretary of State may exercise the power in subsection (1) for the purpose only of—
requiring the holder of a licence to provide or install, or facilitate the provision, installation or operation of, meters of a particular kind, or
requiring the holder of a licence to make arrangements related to the matters mentioned in paragraph (a).
Modifications made by virtue of subsection (1) may include—
technical specifications for meters (including specifications in respect of matters relevant to the ability to obtain remote access to meters);
a prohibition on the supply of gas or electricity through a meter other than a meter which complies with a technical specification under paragraph (a);
provision about the installation of meters which comply with a technical specification under paragraph (a) (including provision about the replacement of existing meters);
provision about electricity generated by a customer;
provision about the circumstances in which any pre-payment facilities of a meter may be utilised;
provision about the use of a meter remotely to disconnect a customer's premises;
provision about the protection of consumers;
provision about access to, and the use of, an electricity distribution system or part of an electricity distribution system for communication in connection with a meter;
provision about access to information from meters (including provision enabling a customer, or a person acting on a customer's behalf, to have access to information about the customer's consumption of gas or electricity);
provision about communication of information by or to meters (including provision about its onward communication) and about the use of such information;
provision requiring the holder of a licence to supply information to the Secretary of State or the Authority (or both) so as to enable them to assess any matter relating to the provision, installation, or operation of meters;
provision requiring the holder of the licence to enter (or refrain from entering) into an agreement of a specified kind, or with a specified person;
provision specifying, or enabling the determination of, a date from which a modification is to take effect.
The power conferred by subsection (1)—
may be exercised to make different provision in relation to different areas or different classes of customer;
may be exercised generally, only in relation to specified cases or subject to exceptions (including provision for a case to be excepted only so long as specified conditions are satisfied);
may be exercised differently in different cases or circumstances;
includes a power to make incidental, supplementary, consequential or transitional modifications.
The power conferred by subsection (1) may not be exercised after the end of 1 November 2028.
Provision included in a licence by virtue of that power—
need not relate to the activities authorised by the licence;
in the case of a licence under section 7, 7A, 7AA or 7AB of the Gas Act 1986 (c. 44), may do any of the things authorised by section 7B(5) of that Act (which apply to the Gas and Electricity Markets Authority's power with respect to licence conditions under section 7B(4)(a));
In this section a reference to a meter includes a reference to a visual display unit, or any other device, associated with or ancillary to a meter.
Before making a modification, the Secretary of State must consult—
the holder of any licence being modified,
the Gas and Electricity Markets Authority, and
such other persons as the Secretary of State considers appropriate.
Subsection (1) may be satisfied by consultation before, as well as by consultation after, the passing of this Act.
Before making modifications, the Secretary of State must lay a draft of the modifications before Parliament.
If, within the 40-day period, either House of Parliament resolves not to approve the draft, the Secretary of State may not take any further steps in relation to the proposed modifications.
If no such resolution is made within that period, the Secretary of State may make the modifications in the form of the draft.
Subsection (4) does not prevent a new draft of proposed modifications being laid before Parliament.
The Secretary of State must publish details of any modifications as soon as reasonably practicable after they are made.
In this section “40-day period”, in relation to a draft of proposed modifications, means the period of 40 days beginning with the day on which the draft is laid before Parliament (or, if it is not laid before each House of Parliament on the same day, the later of the 2 days on which it is laid).
For the purposes of calculating the 40-day period, no account is to be taken of any period during which Parliament is dissolved or prorogued or during which both Houses are adjourned for more than 4 days.
In this section “modification” means a modification under section 88.
A modification under section 88 of part of a standard condition of a licence does not prevent any other part of the condition from continuing to be regarded as a standard condition for the purposes of Part 1 of the Gas Act 1986 (c. 44) or Part 1 of the Electricity Act 1989 (c. 29).
make the same modification of those standard conditions for the purposes of their incorporation in licences of that type granted after that time, and
publish the modification.
The Secretary of State may by order make such modifications of provision made by or under an Act or an Act of the Scottish Parliament (whenever passed or made) as the Secretary of State considers appropriate in consequence of provision made under section 88.
Schedule 4 contains amendments to the Gas Act 1986 and the Electricity Act 1989.
Grant of smart meter communication licences
The Gas and Electricity Markets Authority may by regulations make provision about the procedure to be followed in relation to the grant of a smart meter communication licence.
Regulations under subsection (1) may provide that the procedure is to consist of either (but not both) of the following—
a determination by the Authority, on a competitive basis, of the person to whom a licence is to be granted;
the selection by the Authority, on a non-competitive basis, of the person to whom a licence is to be granted.
Regulations under subsection (1) may make provision by reference to a determination by the Authority or to the opinion of the Authority as to any matter.
The approval of the Secretary of State is required for the making of regulations under subsection (1).
Regulations under section 91A(1)—
must make provision so as to ensure that a smart meter communication licence must not be granted to a person unless the Authority is satisfied that the person would not, if granted the licence, have a financial or other interest likely to prejudice the discharge of their functions as the licence holder;
may make provision about the granting of a licence to a person formed by the Authority.
Any sums received by the Authority under regulations under section 91A(1) are to be paid into the Consolidated Fund.
Regulations made in reliance on section 91A(2)(a) may—
provide for the publication of a proposal to grant a smart meter communication licence;
provide for the inclusion in such a proposal of an invitation to apply for such a licence;
impose conditions in relation to the making of an application for a licence;
impose restrictions in relation to persons who may apply for a licence;
impose requirements as to the period within which applications must be made;
make provision for regulating the manner in which applications are to be considered or determined;
confer on the Authority functions in connection with tender exercises.
Regulations in reliance on section 91A(2)(a) may also include provision—
enabling the Authority to require payments to be made, in the form and manner prescribed, in respect of costs incurred or likely to be incurred by the Authority for the purposes of a tender exercise;
about the effect on a person’s participation in a tender exercise of a failure to comply with a requirement imposed by virtue of paragraph (a);
about the circumstances in which the tender exercise is to stop as a result of such a failure.
The Authority may modify—
a condition of a particular relevant licence;
the standard conditions incorporated in relevant licences of a particular type;
a document maintained in accordance with the conditions of a relevant licence, or an agreement that gives effect to a document so maintained.
The Authority may exercise the power in subsection (1) only if the Authority considers it necessary or expedient to do so for the purposes of, or in preparation for, the grant of a smart meter communication licence.
The power conferred by subsection (1)—
may be exercised to make different provision for different purposes or different areas;
may be exercised generally, only in relation to specified cases or subject to exceptions (including provision for a case to be excepted only so long as specified conditions are satisfied);
includes a power to make incidental, supplementary, consequential or transitional modifications.
Provision included in a licence in reliance on subsection (1)—
need not relate to the activities authorised by the licence;
in the case of a licence for the purposes of section 5 of the Gas Act 1986, may do any of the things authorised by section 7B(5) of that Act (which apply to the Authority’s power with respect to licence conditions under section 7B(4)(a));
A modification under subsection (1) of part of a standard condition of a licence does not prevent any other part of the condition from continuing to be regarded as a standard condition for the purposes of Part 1 of the Gas Act 1986 or Part 1 of the Electricity Act 1989.
Where the Authority makes modifications under subsection (1) of the standard conditions of a licence of any type, the Authority must—
make (as nearly as may be) the same modifications of those standard conditions for the purposes of their incorporation in licences of that type granted after that time, and
publish the modifications.
In this section—“relevant licence” means a licence for the purposes of section 5 of the Gas Act 1986 or section 4 of the Electricity Act 1989 (prohibitions on unlicensed activities);“specified” means specified in the modification.
Before making a modification under section 91C, the Authority must consult—
the holder of any licence being modified,
the Secretary of State, and
such other persons as the Authority considers appropriate.
Subsection (1) may be satisfied by consultation undertaken before the passing of the Data (Use and Access) Act 2025.
If, after carrying out the consultation, the Authority decides to make the modification, it must publish a notice about the decision which—
states that the Authority has decided to make the modification;
sets out the modification and its effect;
specifies the date from which the modification has effect;
states how the Authority has taken account of any representations made during the consultation;
states the reason for any differences between the modification consulted on and the proposed modification.
The notice must be published in such manner as the Authority considers appropriate for bringing it to the attention of those likely to be affected by the making of the modification.
Gas meters
The functions of the Gas and Electricity Markets Authority (“the Authority”) under gas meter legislation are transferred to the Secretary of State.
References in gas meter legislation to the Authority (including references in that legislation which, by virtue of section 3(2) of the Utilities Act 2000 (c. 27), are treated as references to the Authority) are to be treated, so far as necessary for the purposes or in consequence of the transfer, as if they were references to the Secretary of State.
Regulations made, or treated as made, by the Authority under section 17 of the Gas Act 1986 (gas meter testing and stamping) and in force immediately before commencement have effect on and after commencement as if they had been made by the Secretary of State.
Anything else done by the Authority under gas meter legislation which has effect immediately before commencement has effect on and after commencement as if it had been done by the Secretary of State.
In this section—“commencement” means the day on which this section comes into force;“gas meter legislation” means—section 17 of the Gas Act 1986 (c. 44), and gas meter regulations;“gas meter regulations” means—the Measuring Instruments (EEC Requirements) Regulations 1988 (S.I. 1988/186); the Measuring Instruments (EEC Requirements) (Gas Volume Meters) Regulations 1988 (S.I. 1988/296); the Measuring Instruments (Non-Prescribed Instruments) Regulations 2006 (S.I. 2006/1270); the Measuring Instruments (Gas Meters) Regulations 2006 (S.I. 2006/2647); any regulations made, or treated as made, under section 17 of the Gas Act 1986.
Section 17 of the Gas Act 1986 is amended as follows.
In subsection (2) for the words “a member of the Director's staff” (which, by virtue of section 3(2) of the Utilities Act 2000 (c. 27), are treated as a reference to a member of the staff of the Gas and Electricity Markets Authority) substitute “ employed in the civil service of the State ”.
In subsections (7), (8) and (10) for the words “members of the Director's staff” (which, by virtue of section 3(2) of the Utilities Act 2000, are treated as references to members of the Authority's staff) substitute “ employed in the civil service of the State ”.
After subsection (7) insert—
In subsection (9) omit “with the consent of the Secretary of State”.
The Secretary of State may modify—
the conditions of a particular licence under section 7 of the Gas Act 1986;
the standard conditions incorporated in licences under that section by virtue of section 8 of that Act.
The Secretary of State may exercise the power in subsection (1) for the purpose only of enabling the Gas and Electricity Markets Authority (“the Authority”) to recover and pay into the Consolidated Fund amounts in respect of—
payments made by the Secretary of State by virtue of section 17(7) or (7A) of the Gas Act 1986 (c. 44);
other costs incurred by the Secretary of State in performing a function conferred by section 17 of the Gas Act 1986 or by gas meter regulations (within the meaning of section 92).
The power in subsection (1) includes a power to make incidental, consequential or transitional modifications.
Before making a modification under this section the Secretary of State must consult—
the holder of any licence being modified,
the Authority, and
such other persons as the Secretary of State considers appropriate.
Subsection (4) may be satisfied by consultation before, as well as by consultation after, the time when this section comes into force.
The Secretary of State must publish modifications under this section.
A modification under subsection (1)(a) of part of a standard condition of a licence does not prevent any other part of the condition from continuing to be regarded as a standard condition for the purposes of Part 1 of the Gas Act 1986.
Where the Secretary of State modifies the standard conditions under subsection (1)(b), the Authority must—
make the same modifications of those standard conditions for the purposes of their incorporation in licences granted after that time, and
publish the modifications.
The power under subsection (1) may not be exercised after the end of the period of 6 months beginning with the day on which that subsection comes into force.
Electricity meters
The functions of the Gas and Electricity Markets Authority (“the Authority”) under electricity meter legislation are transferred to the Secretary of State.
References in electricity meter legislation to the Authority (including references in that legislation which, by virtue of section 3(2) of the Utilities Act 2000 (c. 27), are treated as references to the Authority) are to be treated, so far as necessary for the purposes or in consequence of the transfer, as if they were references to the Secretary of State.
Regulations made, or treated as made, by the Authority under Schedule 7 (other than paragraph 12 of that Schedule) to the Electricity Act 1989 (c. 29) (electricity meters) and in force immediately before commencement have effect on and after commencement as if they had been made by the Secretary of State.
Anything else done by the Authority under electricity meter legislation which has effect immediately before commencement is treated on and after commencement as if it had been done by the Secretary of State.
In this section—“commencement” means the day on which this section comes into force;“electricity meter legislation” means—Schedule 7 (other than paragraph 12 of that Schedule) to the Electricity Act 1989 (c. 29), and electricity meter regulations;“electricity meter regulations” means—the Measuring Instruments (EC Requirements) (Electrical Energy Meters) Regulations 1995 (S.I. 1995/2607); the Electromagnetic Compatibility Regulations 2006 (S.I. 2006/3418); the Measuring Instruments (Active Electrical Energy Meters) Regulations 2006 (S.I. 2006/1679); any regulations made under Schedule 7 (other than paragraph 12 of that Schedule) to the Electricity Act 1989.
The Electricity Act 1989 is amended as follows.
In paragraph 1 of Schedule 7 (consumption to be monitored by appropriate meters)—
for sub-paragraph (7) substitute—, and
in sub-paragraphs (8) and (9), after “section 23 of this Act” insert “ (as modified by sub-paragraph (7)) ”.
In paragraph 4 of that Schedule (appointment of meter examiners)—
in sub-paragraph (2) after “examiners” insert “ employed in the civil service of the State ”,
after that sub-paragraph insert—, and
in sub-paragraph (3) after “examiners” insert “ employed in the civil service of the State ”.
In paragraph 5 of that Schedule (certification of meters), in sub-paragraph (4)(b) after “paid” (in the first place) insert “ to meter examiners employed in the civil service of the State ”.
In paragraph 6 of that Schedule (apparatus for testing etc of meters), in sub-paragraph (2) for “their functions under” substitute “ functions conferred by or under ”.
In paragraph 7 of that Schedule (testing etc of meters)—
in sub-paragraph (1) after “examiner” insert “ employed in the civil service of the State ”, and
in sub-paragraph (3) after “paid” (in the first place) insert “ to meter examiners employed in the civil service of the State ”.
For paragraph 10 of that Schedule (meters to be kept in proper order), for sub-paragraph (2A) substitute—
In paragraph 13 of that Schedule (interpretation) for the definition of “regulations” substitute—
The Secretary of State may modify—
the standard conditions incorporated in licences under those provisions by virtue of section 8A of that Act.
The Secretary of State may exercise the power in subsection (1) for the purpose only of enabling the Gas and Electricity Markets Authority (“the Authority”) to recover and pay into the Consolidated Fund amounts in respect of—
payments made by the Secretary of State by virtue of paragraph 4(2) or (2A) of Schedule 7 to the Electricity Act 1989 (payments relating to meter examiners);
other costs incurred by the Secretary of State in performing a function conferred by Schedule 7 to the Electricity Act 1989 or by electricity meter regulations (within the meaning of section 95).
The power in subsection (1) includes a power to make incidental, consequential or transitional modifications.
Before making a modification under this section the Secretary of State must consult—
the holder of any licence being modified,
the Authority, and
such other persons as the Secretary of State considers appropriate.
Subsection (4) may be satisfied by consultation before, as well as by consultation after, the time when this section comes into force.
The Secretary of State must publish modifications under this section.
A modification under subsection (1)(a) of part of a standard condition of a licence does not prevent any other part of the condition from continuing to be regarded as a standard condition for the purposes of Part 1 of the Electricity Act 1989 (c. 29).
Where the Secretary of State modifies the standard conditions of licences of any type under subsection (1)(b), the Authority must—
make the same modifications of those standard conditions for the purposes of their incorporation in licences of that type granted after that time, and
publish the modifications.
The power under subsection (1) may not be exercised after the end of the period of 6 months beginning with the day on which that subsection comes into force.
Connection offer expenses
Section 16A of the Electricity Act 1989 (procedure for requiring a connection) is amended as follows.
After subsection (4) insert—
In subsection (5) for “and any information” to “connection” substitute “ , any information requested under subsection (3) and any amount payable by virtue of subsection (4A) to the distributor by the person requiring the connection, the distributor shall give to that person ”.
Electricity safety
Part 1 of the Health and Safety at Work etc. Act 1974 (c. 37) has effect as if section 29 of the Electricity Act 1989 (c. 29) (security of supply, safety and inspections), and regulations made under that section, in so far as they relate to the protection of the public from dangers relating to electricity and to eliminating or reducing the risks of personal injury, were existing statutory provisions within the meaning of that Part.
Without prejudice to the generality of section 15(1) of the 1974 Act (health and safety regulations), regulations under that section may—
repeal or modify a provision mentioned in subsection (1),
make any provision which, but for a repeal or modification under paragraph (a), could be made by regulations made under section 29 of the Electricity Act 1989.
Renewable heat incentives
The Secretary of State may make regulations—
establishing a scheme to facilitate and encourage renewable generation of heat, and
about the administration and financing of the scheme.
Regulations under this section may confer any function on any person.
Regulations under this section may provide for a function conferred on a person to be exercisable on behalf of another person.
Regulations under this section may, in particular—
make provision giving any of the following persons entitlements to payments (“RHI payments”) in specified circumstances—
the owner of plant used or intended to be used for the renewable generation of heat, whether or not the owner is also operating or intending to operate the plant;
a producer of biogas or biomethane;
a producer of biofuel for generating heat;
make provision about the calculation of RHI payments;
make provision about the circumstances in which, and descriptions of persons to whom, the whole or a part of an entitlement to an RHI payment may be assigned (whether the person has the entitlement by virtue of regulations under paragraph (a) or regulations under this paragraph);
authorise or require the Secretary of State, the Authority, designated fossil fuel suppliers, or any person with any other administration function, to make an RHI payment—
to the person who is entitled to the payment by virtue of regulations under paragraph (a), or
where that entitlement has been wholly or partly assigned in accordance with regulations under this section, to the person or persons for the time being enjoying the entitlement or any part of it;
make provision about the circumstances in which RHI payments may be recovered;
authorise or require a person to provide specified information;
require the payment of a levy by designated fossil fuel suppliers ...;
make provision about the calculation of the levy;
make provision for payments to fossil fuel suppliers in specified circumstances;
make provision about the enforcement of obligations imposed by or by virtue of the regulations (which may include a power ... to impose financial penalties);
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
authorise the Secretary of State to make payments to a person in respect of the exercise by the person of functions under regulations under this section;
make provision about the resolution of disputes relating to the exercise of functions under regulations under this section, including provision about arbitration or appeals (which may, in particular, provide for the person conducting an arbitration or determining an appeal to order the payment of costs or compensation).
In this section—“Authority” means the Gas and Electricity Markets Authority;“biofuel” means liquid or gaseous fuel which is produced wholly from biomass;“biogas” means gas produced by the anaerobic or thermal conversion of biomass;“biomass” means material, other than fossil fuel or peat, which is, or is derived directly or indirectly from, plant matter, animal matter, fungi or algae;“biomethane” means biogas which is suitable for conveyance through pipes to premises in accordance with a licence under section 7 of the Gas Act 1986 (c. 44) (gas transporter licences);“designated fossil fuel suppliers” means—if the regulations so provide, a specified class of fossil fuel suppliers, and in any other case, all fossil fuel suppliers;“fossil fuel” means—coal; lignite; natural gas (within the meaning of the Energy Act 1976 (c. 76)); crude liquid petroleum; petroleum products (within the meaning of that Act); any substance produced directly or indirectly from a substance mentioned in paragraphs (a) to (e);“fossil fuel supplier” means a person who supplies fossil fuel to consumers for the purpose of generating heat;“other administration function” means a function relating to the administration of a scheme established under this section, other than a function conferred by regulations under subsection (2)(bb);“owner”, in relation to any plant which is the subject of a hire purchase agreement, a conditional sale agreement or any agreement of a similar nature, means the person in possession of the plant under that agreement;“plant” includes any equipment, apparatus or appliance;“renewable generation of heat” means the generation of heat by means of a source of energy or technology mentioned in subsection (4).
The sources of energy and technologies are—
biomass;
biofuels;
fuel cells;
water (including waves and tides);
solar power;
geothermal sources;
heat from air, water or the ground;
combined heat and power systems (but only if the system's source of energy is a renewable source within the meaning given by section 32M of the Electricity Act 1989 (c. 29)).
biogas.
Regulations may—
modify the list of sources of energy and technologies in subsection (4);
modify the definition of “biogas” or “biomass” in subsection (3).
Regulations may make provision, for the purposes of subsection (2)(a)(iii) and the definition of “fossil fuel supplier”, specifying that particular activities do or do not constitute generating heat.
Before making regulations under this section which extend to Scotland, the Secretary of State must—
if the regulations contain any provision which would be within the legislative competence of the Scottish Parliament if it were contained in an Act of that Parliament, obtain the consent of the Scottish Ministers;
in any other case, consult the Scottish Ministers.
Nuclear information
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Application of general duties
Sections 4AA to 4B of the Gas Act 1986 (c. 44) (principal objectives and general duties) apply to the carrying out, as respects the matters mentioned in subsection (2), of functions conferred on the Secretary of State or the Authority by or under—
section 94.
The matters are—
activities required to be authorised by gas licences,
such licences and the conditions of such licences,
documents maintained in accordance with the conditions of such licences, or agreements that give effect to documents so maintained, and
companies holding such licences.
In section 4AA(2)(b) of the Gas Act 1986 (c. 44) (duty to have regard to ability of licence holders to finance obligations) for “or the Utilities Act 2000” substitute “ , the Utilities Act 2000 or Part 5 of the Energy Act 2008 ”.
section 97.
The matters are—
activities required to be authorised by electricity licences,
such licences and the conditions of such licences,
documents maintained in accordance with the conditions of such licences, or agreements that give effect to documents so maintained, and
companies holding such licences.
In section 3A(2)(b) of the Electricity Act 1989 (duty to have regard to ability of licence holders to finance obligations) for “or Part 2 or 3 of the Energy Act 2004” substitute “ , Part 2 or 3 of the Energy Act 2004 or Part 2 or 5 of the Energy Act 2008 ”.
In this section—“the Authority” means the Gas and Electricity Markets Authority;“electricity licence” means a licence for the purposes of section 4 of the Electricity Act 1989 (prohibition on unlicensed activities);“gas licence” means a licence for the purposes of section 5 of the Gas Act 1986 (prohibition on unlicensed activities).
General
Where an offence is committed by a body corporate and is proved to have been committed with the consent or connivance of, or to be attributable to neglect on the part of, an officer of the body corporate, that officer (as well as the body corporate) is guilty of the offence and is liable to be proceeded against and dealt with accordingly.
Where the affairs of a body corporate are managed by its members, subsection (1) applies in relation to the acts and defaults of a member in connection with the member's functions of management as it applies to an officer of the body corporate.
Where an offence—the partner (as well as the firm) is guilty of the offence and liable to be proceeded with and dealt with accordingly.
is committed by a Scottish firm, and
is proved to have been committed with the consent or connivance of, or to be attributable to any neglect on the part of, a partner of the firm,
In this section—“offence” means an offence under this Act;“officer”, in relation to a body corporate, means—any director, secretary or other similar officer of the body corporate, or any person who was purporting to act in any such capacity.
Orders and regulations made by the Secretary of State , the Scottish Ministers or the Gas and Electricity Markets Authority under this Act are to be made by statutory instrument.
An instrument to which this subsection applies may—
provide for a person to exercise a discretion in dealing with any matter;
include incidental, supplementary and consequential provision;
make transitory or transitional provisions or savings;
make provision generally, only in relation to specified cases or subject to exceptions (including provision for a case to be excepted only so long as conditions specified in the instrument are satisfied);
make different provision for different cases or circumstances or for different purposes.
Subsection (2) applies to—
an Order in Council under this Act,
an order or regulations made by the Secretary of State or the Scottish Ministers under this Act (other than an order which contains provision made under section 110 (commencement) only) , and
regulations made by the Gas and Electricity Markets Authority under section 91A.
The provision which may be made by virtue of subsection (2)(b) or (c) includes provision modifying any provision made by or under an Act or an Act of the Scottish Parliament (whenever passed or made).
A statutory instrument containing an Order in Council, order or regulations under this Act is subject to annulment in pursuance of a resolution of either House of Parliament.
Subsection (1) does not apply to—
an order which contains, or regulations which contain, (whether alone or together with other provision) provision made under—
section 13 (importation and storage of combustible gas: inspectors),
section 27 (carbon dioxide storage: inspectors),
section 41(6) (feed-in tariffs for small-scale electricity generation),
section 45(6)(a) (power to specify matters as designated technical matters),
section 62(1) (power to apply Chapter 1 of Part 3 to other nuclear installations), or
section 82N (power to make regulations in relation to persons appointed as inspectors etc),
section 82P (power to extend application of Part 4A),
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
regulations which contain (whether alone or together with other provision) affirmative resolution provision made under section 100 (renewable heat incentives);
an order which contains provision made under section 110 (commencement orders) only.
No order, regulations or recommendation to make an Order in Council, within subsection (2)(a) , (ab) or (b), may be made unless a draft of the order, regulations or Order in Council has been laid before, and approved by a resolution of, each House of Parliament.
Provision made under section 100 is affirmative resolution provision if—
the provision is made under any of the powers which always attract the affirmative resolution procedure, or
the provision—
is not made under any of those powers, and
meets condition A, B, C or D.
The powers which always attract the affirmative resolution procedure are the powers conferred by—
section 100(5), and
section 100(6).
Provision meets condition A if—
it is made under the power conferred by section 100(2)(bb), and
it requires a designated fossil fuel supplier to make a payment under an RHI scheme.
Provision meets condition B if—
it confers an administration function on a person who is not the Secretary of State or the Authority, and
the time when the provision comes into force will be the first time that an administration function under the RHI scheme concerned is exercisable by a person who is not the Secretary of State or the Authority.
Provision meets condition C if—
it is made under a power conferred by paragraph (ba) or (bb)(ii) of section 100(2),
it is made in relation to an RHI scheme that was in existence immediately before the coming into force of this subsection, and
it is the first provision to be made under that power in relation to that RHI scheme.
Provision meets condition D if—
it is made under a power conferred by paragraph (a), (b), (ba), (bb), (d) or (j) of section 100(2),
it is made in relation to an RHI scheme that was not in existence immediately before the coming into force of this subsection, and
it is the first provision to be made under that power in relation to that RHI scheme.
In deciding whether provision meets condition B, the following matters must be ignored—
for the purposes of subsection (3D)(a): any provision which confers a payment function on designated fossil fuel suppliers;
for the purposes of subsection (3D)(b): any payment function under the RHI scheme concerned which (before the time when the provision comes into force) is, or has been, exercisable by designated fossil fuel suppliers.
In subsections (3B) to (3H) and this subsection—“administration function” means a function relating to the administration of an RHI scheme;“designated fossil fuel suppliers” has the same meaning as in section 100;“payment function” means a function of making a payment under an RHI scheme (whether the function authorises or requires the making of the payment);“RHI scheme” means a scheme under section 100 to facilitate and encourage renewable generation of heat.
In the case of a statutory instrument containing an order or regulations made by the Scottish Ministers, this section has effect as if—
in subsection (1) the reference to either House of Parliament were a reference to the Scottish Parliament,
in subsection (2)(b) for “107(2)(a)” there were substituted “ 107(3)(a) ”, and
in subsection (3) the reference to each House of Parliament were a reference to the Scottish Parliament.
In this Act—“functions” includes powers and duties;“modify” includes amend, add to, revoke or repeal (and references to “modifications” are to be construed accordingly);“territorial sea” means the territorial sea adjacent to the United Kingdom.
Schedule 5 contains minor and consequential amendments.
The Secretary of State may by order make such modifications of—as the Secretary of State considers appropriate in consequence of this Act.
an Act, or Act of the Scottish Parliament, passed before the end of the session in which this Act was passed, or
an instrument made before the end of that session,
The Scottish Ministers may by order make such modifications of—as the Scottish Ministers consider appropriate in consequence of Chapter 3 of Part 1 of this Act as that Chapter applies in relation to the territorial sea adjacent to Scotland (within the meaning of that Chapter) or in relation to functions of the Scottish Ministers.
an Act, or Act of the Scottish Parliament, passed before the end of the session in which this Act was passed, or
an instrument made before the end of that session,
Schedule 6 contains repeals (including repeals of spent provisions).
The Secretary of State may by order make any transitional, transitory or saving provision which appears appropriate in consequence of, or otherwise in connection with, this Act.
The Scottish Ministers may by order make any transitional, transitory or saving provision which appears appropriate in consequence of, or otherwise in connection with, Chapter 3 of Part 1 of this Act as that Chapter applies in relation to the territorial sea adjacent to Scotland (within the meaning of that Chapter) or in relation to functions of the Scottish Ministers.
The provision which may be made by virtue of subsection (1) or (2) includes provision modifying any provision made by—
an Act, or Act of the Scottish Parliament, passed before the end of the session in which this Act was passed, or
an instrument made before the end of that session.
Provision made under this section is additional, and without prejudice, to that made by or under any other provision of this Act.
The following provisions come into force on the day on which this Act is passed—
section 102;
Subject to that, the provisions of this Act come into force on such day as may be appointed by order of the Secretary of State.
An order under this section may—
include incidental, supplementary and consequential provision;
make transitory or transitional provisions or savings;
make different provision for different cases or circumstances or for different purposes.
The following are to be paid out of money provided by Parliament—
any expenditure incurred by the Secretary of State by virtue of this Act;
any expenditure incurred by the Gas and Electricity Markets Authority by virtue of this Act;
any increase attributable to this Act in the sums payable out of money so provided under any other enactment.
Subject to subsections (2) to (5), this Act extends to England and Wales, Scotland and Northern Ireland.
The following provisions extend to England and Wales and Scotland only—
section 38 (renewables obligation: supplemental provision);
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
section 99 (electricity safety);
section 100 (renewable heat incentives);
section 102 (general duties of Authority and Secretary of State).
Chapter 1 of Part 3 ...(nuclear decommissioning) extends to England and Wales and Northern Ireland only.
An amendment or repeal contained in this Act has the same extent as the enactment or relevant part of the enactment to which the amendment or repeal relates.
This Act may be cited as the Energy Act 2008.
Amendments relating to Chapters 2 and 3 of Part 1
Food and Environment Protection Act 1985 (c. 48)
The Food and Environment Protection Act 1985 is amended as follows.
In section 7A (regulation of deposits made in the sea: exclusion of certain oil and gas activities)—
the existing provision becomes subsection (1), and
after that subsection insert—
In section 24 (interpretation)—
in subsection (1), after the definition of “Convention State” insert—, and
after subsection (2) insert—
Petroleum Act 1987 (c. 12)
Section 21 of the Petroleum Act 1987 (automatic establishment of safety zones) is amended as follows.
In subsection (2)—
after paragraph (a) insert—,
in paragraph (b), for “in or under the shore or bed of” substitute “ in, under or over ”,
after that paragraph insert—, and
in paragraph (d) for “paragraph (a), (b) or (c)” substitute “ any of paragraphs (a) to (c) ”.
After subsection (7) insert—
Gas (Northern Ireland) Order 1996 (S.I. 1996/275 (N.I.2))
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Petroleum Act 1998 (c. 17)
The Petroleum Act 1998 is amended as follows.
In section 11 (application of civil law)—
in subsection (1), after “Order in Council” insert “ , subject to subsection (4A) ”,
in subsection (3), after paragraph (a) insert—,
in paragraph (b) of that subsection, for “in or under the shore or bed of” substitute “ in, under or over ”,
after that paragraph insert—,
in paragraph (d) of that subsection, for “paragraph (a), (b) or (c)” substitute “ any of paragraphs (a) to (c) ”,
after that subsection insert—,
after subsection (4) insert—, and
after subsection (8) insert—
In section 13 (interpretation of Part 2), after the existing provision (which becomes subsection (1)) insert—
In section 28 (interpretation of Part 3), in the definition of “gas”—
in paragraph (a), for “or carbon monoxide” substitute “ , carbon monoxide or a substance designated under paragraph (e) of the definition of “gas” in section 2(4) of the Energy Act 2008 ”,
in paragraph (b) for “gases” substitute “ substances ”, and
in paragraph (c) for “gases” substitute “ substances ”.
In section 30 (persons who may be required to submit programmes)—
for subsection (5)(a) substitute—,
in subsection (6), for paragraph (a) substitute—, and
in paragraph (c) of that subsection, for “or (b)” substitute “ to (b) ”.
In section 44 (offshore installations)—
in subsection (3), after paragraph (a) insert—,
in paragraph (b) of that subsection, for “in or under the shore or bed of” substitute “ in, under or over ”,
after that paragraph insert—,
in paragraph (d) of that subsection, for “paragraph (a), (b) or (c)” substitute “ any of paragraphs (a) to (c) ”, and
in subsection (5), after “section—” insert—.
In section 47A (factors for the Secretary of State to take into account when performing functions under the Petroleum Act 1998)—
in subsection (1), after paragraph (a) insert—,
in paragraph (b) of that subsection for “such activities” substitute “ activities within paragraph (a) or (aa) ”, and
after subsection (2) insert—
Energy Act 2004 (c. 20)
In section 188 of the Energy Act 2004 (power to impose charges to fund energy functions)—
in subsection (7), after paragraph (l) insert—,
in that subsection, after paragraph (m) (inserted by paragraph (a)) insert—,
in subsection (8), after paragraph (d) insert—, and
in that subsection, after paragraph (da) (inserted by paragraph (c)) insert—.
after subsection (11) insert—
Property schemes
Petroleum licences: amendments to model clauses
Petroleum (Production) (Landward Areas) Regulations 1995
Schedule 3 to the Petroleum (Production) (Landward Areas) Regulations 1995 (S.I. 1995/1436) is amended as follows.
After clause 8 (consequences of determination or surrender) insert—
In clause 17 (abandonment and plugging of wells)—
in paragraph (2) for “The” substitute “ Subject to paragraph (5B), the ”,
after paragraph (5) insert—, and
in paragraph (6) after “the Minister” (in the first place) insert “ , or in accordance with a notice under paragraph (5A), ”.
In clause 38(4) (power of revocation: change of control) after “when this licence was granted” insert “ (or, if there has been an assignment or assignation of rights conferred by this licence, when those rights were assigned to the Licensee) ”.
After clause 38 insert—
Petroleum (Current Model Clauses) Order 1999
This Part of this Schedule contains amendments to the Petroleum (Current Model Clauses) Order 1999 (S.I. 1999/160).
Part 2 of Schedule 2 (seaward production licences) is amended as follows.
After clause 7 (area surrendered) insert—
In clause 17 (abandonment and plugging of wells)—
in paragraph (2) for “The” substitute “ Subject to paragraph (5B), the ”,
after paragraph (5) insert—, and
in paragraph (6) after “the Minister” (in the first place) insert “ , or in accordance with a notice under paragraph (5A), ”.
In clause 39(4) (power of revocation: change of control) after “when this licence was granted” insert “ (or, if there has been an assignment or assignation of rights conferred by this licence, when those rights were assigned to the Licensee) ”.
After clause 39 insert—
Part 2 of Schedule 3 (landward production licences) is amended as follows.
After clause 7 (areas surrendered) insert—
In clause 17 (abandonment and plugging of wells)—
in paragraph (2) for “The” substitute “ Subject to paragraph (5B), the ”,
after paragraph (5) insert—, and
in paragraph (6) after “the Minister” (in the first place) insert “ , or in accordance with a notice under paragraph (5A), ”.
In clause 37(4) (power of revocation: change of control) after “when this licence was granted” insert “ (or, if there has been an assignment or assignation of rights conferred by this licence, when those rights were assigned to the Licensee) ”.
After clause 37 insert—
Part 2 of Schedule 4 (landward production licences) is amended as follows.
After clause 7 (consequences of determination or surrender by licensee) insert—
In clause 17 (abandonment and plugging of wells)—
in paragraph (2) for “The” substitute “ Subject to paragraph (5B), the ”,
after paragraph (5) insert—, and
in paragraph (6) after “the Minister” (in the first place) insert “ , or in accordance with a notice under paragraph (5A), ”.
In clause 38(4) (power of revocation: change of control) after “when this licence was granted” insert “ (or, if there has been an assignment or assignation of rights conferred by this licence, when those rights were assigned to the Licensee) ”.
After clause 38 insert—
Part 2 of Schedule 5 (seaward production licences) is amended as follows.
After clause 7 (areas surrendered) insert—
In clause 17 (abandonment and plugging of wells)—
in paragraph (2) for “The” substitute “ Subject to paragraph (5B), the ”,
after paragraph (5) insert—, and
in paragraph (6) after “the Minister” (in the first place) insert “ , or in accordance with a notice under paragraph (5A) ”.
In clause 40(4) (power of revocation: change of control) after “when this licence was granted” insert “ (or, if there has been an assignment or assignation of rights conferred by this licence, when those rights were assigned to the Licensee) ”.
After clause 40 insert—
Part 2 of Schedule 6 (seaward production licences) is amended as follows.
After clause 6 (areas surrendered) insert—
In clause 16 (abandonment and plugging of wells)—
in paragraph (2) for “The” substitute “ Subject to paragraph (5B), the ”,
after paragraph (5) insert—, and
in paragraph (6) after “the Minister” (in the first place) insert “ , or in accordance with a notice under paragraph (5A), ”.
In clause 39(4) (power of revocation: change of control) after “when this licence was granted” insert “ (or, if there has been an assignment or assignation of rights conferred by this licence, when those rights were assigned to the Licensee) ”.
After clause 39 insert—
Part 2 of Schedule 8 (landward development licences) is amended as follows.
After clause 6 (consequences of determination or surrender by licensee) insert—
In clause 15 (abandonment and plugging of wells)—
in paragraph (2) for “The” substitute “ Subject to paragraph (5B), the ”,
after paragraph (5) insert—, and
in paragraph (6) after “the Minister” (in the first place) insert “ , or in accordance with a notice under paragraph (5A), ”.
In clause 36(4) (power of revocation: change of control) after “when this licence was granted” insert “ (or, if there has been an assignment or assignation of rights conferred by this licence, when those rights were assigned to the Licensee) ”.
After clause 36 insert—
Part 2 of Schedule 9 (seaward production licences) is amended as follows.
After clause 8 (areas surrendered) insert—
In clause 19 (abandonment and plugging of wells)—
in paragraph (2) for “The” substitute “ Subject to paragraph (5B), the ”,
after paragraph (5) insert—, and
in paragraph (6) after “the Minister” (in the first place) insert “ , or in accordance with a notice under paragraph (5A), ”.
In clause 42(4) (power of revocation: change of control) after “when this licence was granted” insert “ (or, if there has been an assignment or assignation of rights conferred by this licence, when those rights were assigned to the Licensee) ”.
After clause 42 insert—
Part 2 of Schedule 10 (seaward production licences) is amended as follows.
After clause 8 (areas surrendered) insert—
In clause 19 (abandonment and plugging of wells)—
in paragraph (2), for “The” substitute “ Subject to paragraph (5B), the ”,
after paragraph (5) insert—, and
in paragraph (6) after “the Minister” (in the first place) insert “ , or in accordance with a notice under paragraph (5A), ”.
In clause 42(4) (power of revocation: change of control) after “when this licence was granted” insert “ (or, if there has been an assignment or assignation of rights conferred by this licence, when those rights were assigned to the Licensee) ”.
After clause 42 insert—
Part 2 of Schedule 11 (seaward exploration licences) is amended as follows.
After clause 5 (right of licensee to determine licence) insert—
In clause 7 (abandonment and plugging of wells)—
in paragraph (2) for “(5) and” substitute “ (4A) to ”, and
after paragraph (4) insert—
After clause 21 (power of revocation) insert—
Part 2 of Schedule 12 (landward exploration licences) is amended as follows.
After clause 6 (automatic termination of licence) insert—
In clause 10 (abandonment and plugging of wells)—
in paragraph (2) for “The” substitute “ Subject to paragraph (5B), the ”,
after paragraph (5) insert—, and
in paragraph (6) after “the Minister” (in the first place) insert “ , or in accordance with a notice under paragraph (5A), ”.
In clause 28(4) (power of revocation: change of control) after “when this licence was granted” insert “ (or, if there has been an assignment or assignation of rights conferred by this licence, when those rights were assigned to the Licensee) ”.
After clause 28 insert—
Part 2 of Schedule 13 (landward appraisal licences) is amended as follows.
After clause 6 (consequences of determination or surrender by licensee) insert—
In clause 14 (abandonment and plugging of wells)—
in paragraph (2) for “The” substitute “ Subject to paragraph (5B), the ”,
after paragraph (5) insert—, and
in paragraph (6) after “the Minister” insert “ , or in accordance with a notice under paragraph (5A), ”.
In clause 33(4) (power of revocation: change of control) after “when this licence was granted” insert “ (or, if there has been an assignment or assignation of rights conferred by this licence, when those rights were assigned to the Licensee) ”.
After clause 33 insert—
Part 2 of Schedule 14 (landward development licences) is amended as follows.
After clause 6 (consequences of determination or surrender by licensee) insert—
In clause 15 (abandonment and plugging of wells)—
in paragraph (2) for “The” substitute “ Subject to paragraph (5B), the ”,
after paragraph (5) insert—, and
in paragraph (6) after “the Minister” (in the first place) insert “ , or in accordance with a notice under paragraph (5A), ”.
In clause 35(4) (power of revocation: change of control) after “when this licence was granted” insert “ (or, if there has been an assignment or assignation of rights conferred by this licence, when those rights were assigned to the Licensee) ”.
After clause 35 insert—
Petroleum Licensing (Exploration and Production) (Seaward and Landward Areas) Regulations 2004
This Part of this Schedule amends the Petroleum Licensing (Exploration and Production) (Seaward and Landward Areas) Regulations 2004 (S.I. 2004/352).
Schedule 1 (exploration licences) is amended as follows.
After clause 5 (right of licensee to determine licence) insert—
In clause 7 (abandonment and plugging of wells)—
in paragraph (2) for “(5) and” substitute “ (4A) to ”, and
after paragraph (4) insert—
After clause 20 (power of revocation) insert—
Schedule 2 (frontier areas: production licences without break clause) is amended as follows.
After clause 9 (areas surrendered) insert—
In clause 16 (abandonment and plugging of wells)—
in paragraph (2) for “The” substitute “ Subject to paragraph (5B), the ”,
after paragraph (5) insert—, and
in paragraph (6) after “Subject to paragraphs” insert “ (5A) to (5D), ”.
In clause 38(4) (power of revocation: change of control) after “when this licence was granted” insert “ (or, if there has been an assignment or assignation of rights conferred by this licence, when those rights were assigned to the Licensee) ”.
After clause 38 (power of revocation) insert—
Schedule 3 (frontier areas: production licences with break clause) is amended as follows.
After clause 10 (areas surrendered) insert—
In clause 17 (abandonment and plugging of wells)—
in paragraph (2) for “The” substitute “ Subject to paragraph (5B), the ”,
after paragraph (5) insert—, and
in paragraph (6) after “Subject to paragraphs” insert “ (5A) to (5D), ”.
In clause 39(4) (power of revocation: change of control) after “when this licence was granted” insert “ (or, if there has been an assignment or assignation of rights conferred by this licence, when those rights were assigned to the Licensee) ”.
After clause 39 (power of revocation) insert—
Schedule 4 (production licences for areas other than frontier areas) is amended as follows.
After clause 8 (areas surrendered) insert—
In clause 15 (abandonment and plugging of wells)—
in paragraph (2) for “The” substitute “ Subject to paragraph (5B), the ”,
after paragraph (5) insert—, and
in paragraph (6) after “Subject to paragraphs” insert “ (5A) to (5D), ”.
In clause 37(4) (power of revocation: change of control) after “when this licence was granted” insert “ (or, if there has been an assignment or assignation of rights conferred by this licence, when those rights were assigned to the Licensee) ”.
After clause 37 (power of revocation) insert—
Schedule 6 (exploration and development licences) is amended as follows.
After clause 8 (consequences of determination or surrender by licensee) insert—
In clause 15 (abandonment and plugging of wells)—
in paragraph (2) for “The” substitute “ Subject to paragraph (5B), the ”,
after paragraph (5) insert—, and
in paragraph (6) after “Subject to paragraphs” insert “ (5A) to (5D), ”.
In clause 36(4) (power of revocation: change of control) after “when this licence was granted” insert “ (or, if there has been an assignment or assignation of rights conferred by this licence, when those rights were assigned to the Licensee) ”.
After clause 36 (power of revocation) insert—
Smart meters: licensable activities
Gas
After section 41H of the Gas Act 1986 (c. 44), insert—
Electricity
After section 56F of the Electricity Act 1989 (c. 29) insert—
Minor and consequential amendments
Pipe-lines Act 1962 (c. 58)
In section 54 of the Pipe-lines Act 1962 (offences by corporations), in subsection (1) after “any of the provisions of this Act” insert “ (other than section 10H) ”.
Gas Act 1986 (c. 44)
In section 64(2) of the Gas Act 1986 (orders) after “41C” insert “ , 41HA, ”.
Electricity Act 1989 (c. 29)
In section 47 of that Act (general functions of the Authority)—
in subsection (1A) after “microgeneration” insert “ or small-scale low-carbon generation ”, and
for subsection (1B) substitute—
In section 106 of that Act (regulations and orders), after subsection (1) insert—
In section 106(2)(b) of that Act (regulations and orders) for “or 56A” substitute “ , 56A or 56FA ”.
Petroleum Act 1998 (c. 17)
The Petroleum Act 1998 is amended as follows.
In section 5(9) (alteration of licences) for “an instrument under seal” substitute “ deed ”.
In section 31(1) (notices: supplementary provision) omit “(d) or”.
In section 34 (revision of programmes)—
in subsection (2)(a), after “(b)” insert “ (ba), ”, and
in subsection (3) omit “(d) or”.
In section 45 (interpretation), in the definition of “submarine pipeline” after “which is” insert “ , or is intended to be established, ”.
Utilities Act 2000 (c. 27)
The Utilities Act 2000 is amended as follows.
In section 33 (standard conditions of electricity licences), in subsection (1)—
after paragraph (b) omit “, or”, and
after paragraph (c) insert
In section 105 (general restrictions on disclosure of information)—
in subsection (8)(a) after “section” (in the second place) insert “ 32J or ”.
Energy Act 2004 (c. 20)
The Energy Act 2004 is amended as follows.
Omit section 105(9) (power to require provision of information in connection with decommissioning programme).
Omit section 107(5) to (7) (power to require provision of information in connection with decommissioning programme).
In section 132 (interpretation of Chapter 5 of Part 2), in subsection (4), in the definition of “fossil fuel” for “section 32” substitute “ section 32M ”.
In section 185 (adjustment of transmission charges), in subsection (14), in the definition of “renewable sources” for “evidence” to the end substitute “ renewables obligation certificates (within the meaning of section 32B of that Act) in respect of electricity generated from those sources is capable of satisfying a renewables obligation imposed by a renewables obligation order (within the meaning of section 32 of that Act); ”.
In Schedule 13 (directions given to the Civil Nuclear Police Authority), in paragraph 2(1)(h) for “officers of the Secretary of State's department” substitute “ persons authorised by the Secretary of State ”.
Repeals
In section 66(1)—in the definition of “gas processing operation”, “and” after paragraph (b); in the definition of “terminal”, “and” after paragraph (b).
Section 4AA(5)(ba).
In section 17(9), “with the consent of the Secretary of State”.
Section 26(2).
In section 28(1), in the definition of “gas processing operation”, “and” after paragraph (b).
In section 31(1), “(d) or”.
In section 34(3), “(d) or”.
In section 1—subsection (1A)(a), (b) and (c), and subsections (1B) and (1C).
Section 81(3).
Section 105(9).
Section 107(5) to (7).
Section 116.
Section 180(2).
In section 5, in subsection (2) “and as if” to the end.
Section 18.
Section 22(b) and “and” immediately preceding it.