Legislation – Energy Act 2023

Part 1
Licensing of carbon dioxide transport and storage

Chapter 1 Licensing of activities

General functions

1 Principal objectives and general duties of Secretary of State and economic regulator

Licensable activities

2 Prohibition on unlicensed activities

3 Consultation on proposals for additional activities to become licensable

4 Territorial scope of prohibition

5 Exemption from prohibition

6 Revocation or withdrawal of exemption

Grant and conditions of licences

7 Power to grant licences

8 Power to create licence types

9 Procedure for licence applications

10 Competitive tenders for licences

11 Conditions of licences: general

12 Standard conditions of licences

13 Modification of conditions of licences

14 Modification of conditions under section 13: supplementary

15 Modification by order under other enactments

Interim power of Secretary of State to grant licences

16 Interim power of Secretary of State to grant licences

Termination of licence

17 Termination of licence

Transfer of licences

18 Transfer of licences

19 Consenting to transfer

Appeal from decisions of the economic regulator

20 Appeal to the CMA

21 Procedure on appeal to CMA

22 Determination by CMA of appeal

23 CMA’s powers on allowing appeal

24 Time limits for CMA to determine an appeal

25 Determination of appeal by CMA: supplementary

26 Provision of information to or by the economic regulator

27 Power of Secretary of State to require information

Other functions of the economic regulator

28 Monitoring, information gathering etc

29 Power to require information for purposes of monitoring

30 Duty to carry out impact assessment

31 Reasons for decisions

32 Enforcement of obligations of licence holders

False statements

33 Making of false statements etc

Criminal liability and procedure

34 Liability of officers of entities

35 Criminal proceedings

Chapter 2 Functions with respect to competition

36 Functions under the Enterprise Act 2002

37 Functions under the Competition Act 1998

38 Sections 36 and 37: supplementary

Chapter 3 Reporting requirements

39 Forward work programmes

40 Information in relation to CCUS strategy and policy statement

41 Annual report on transport and storage licensing functions

Chapter 4 Special administration regime

Transport and storage administration orders

42 Transport and storage administration orders

43 Objective of a transport and storage administration

Application and amendment of the Energy Act 2004

44 Application of certain provisions of the Energy Act 2004

45 Conduct of administration, transfer schemes etc

Licence modifications

46 Modification of conditions of licences

Powers to modify enactments

47 Modification under the Enterprise Act 2002

48 Power to make further modifications of insolvency legislation

49 Interpretation of Chapter 4

Chapter 5 Transfer schemes

50 Transfer schemes

51 Consultation in relation to transfers

52 Conduct of transfer schemes

Chapter 6 Miscellaneous and general

53 Cooperation of storage licensing authority with economic regulator

54 Amendments related to Part 1

55 Interpretation of Part 1

Part 2
Carbon dioxide capture, storage etc and hydrogen production, transport and storage

Chapter 1 Revenue support contracts

Key definitions

56 Chapter 1: interpretation

Provision of revenue support under certain contracts

57 Revenue support contracts

Duties of revenue support counterparty

58 Duties of revenue support counterparty

Carbon dioxide capture, storage etc and hydrogen production, transport and storage

59 Designation of carbon dioxide transport and storage counterparty

60 Direction to offer to contract with licence holder

Hydrogen transport

61 Designation of hydrogen transport counterparty

62 Direction to offer to contract with eligible hydrogen transport provider

Hydrogen storage

63 Designation of hydrogen storage counterparty

64 Direction to offer to contract with eligible hydrogen storage provider

Hydrogen production

65 Designation of hydrogen production counterparty

66 Direction to offer to contract with eligible low carbon hydrogen producer

67 Designation of carbon capture counterparty

68 Direction to offer to contract with eligible carbon capture entity

69 Appointment of hydrogen levy administrator

70 Obligations of relevant market participants

71 Payments to relevant market participants

72 Functions of hydrogen levy administrator

Allocation of contracts

73 Power to appoint allocation bodies

74 Standard terms of revenue support contracts

75 Allocation notifications

76 Allocation of contracts

77 Duty to offer to contract following allocation

78 Modification of standard terms

79 Sections 75 to 78: supplementary

80 Licence conditions regarding functions of certain allocation bodies

General provision about counterparties

81 Further provision about designations

82 Application of sums held by a revenue support counterparty

Information and advice

83 Information and advice

85 Consultation

Transfer schemes

86 Transfer schemes

87 Modification of transfer schemes

88 Shadow directors, etc

89 Modifications of licences etc for purposes related to levy obligations

90 Electricity system operator and gas system planner licences: modifications

91 Sections 89 and 90: supplementary

Chapter 2 Decommissioning of carbon storage installations

Financing of costs of decommissioning etc

92 Financing of costs of decommissioning etc

93 Section 92: supplementary

94 Regulations under section 92(1): procedure with devolved authorities

Abandonment of carbon storage installations etc

95 Provisions relating to Part 4 of the Petroleum Act 1998

Change of use relief

96 Change of use relief: installations

97 Change of use relief: carbon storage network pipelines

98 Change of use relief: supplementary

Chapter 3 Strategy and policy statement

99 Designation of strategy and policy statement

100 Duties with regard to considerations in the statement

102 Procedural requirements

Chapter 4 Carbon dioxide storage licences

103 Specified provisions in carbon dioxide storage licences

104 Content of storage permits under carbon dioxide storage licences

105 Offences relating to carbon dioxide storage licences

106 Power of OGA to require information about change in control of licence holder

Chapter 5 Carbon storage information and samples

107 Chapter 5: key definitions

Requirements relating to information and samples

108 Retention of information and samples

109 Preparation and agreement of information and samples plans

110 Information and samples plans: supplementary

111 Information and samples coordinators

112 Power of OGA to require information and samples

113 Prohibition on disclosure of information or samples by OGA

114 Power of Secretary of State to require information and samples

Enforcement of sanctionable requirements

115 Power of OGA to give sanction notices

116 Enforcement notices

117 Financial penalty notices

118 Revocation notices

119 Operator removal notices

120 Duty of OGA to give sanction warning notices

121 Publication of details of sanctions

122 Subsequent sanction notices

123 Withdrawal of sanction notices

124 Sanctions: information powers

126 Procedure for enforcement decisions

127 Interpretation of Chapter 5

Chapter 6 General

128 Access to infrastructure

129 Financial assistance

Part 3
Licensing of hydrogen pipeline projects

130 Key definitions for Part 3

131 Designation

132 Designation: procedure

133 Revocation of designation

134 Grant, extension or restriction of gas transporter licence by Secretary of State

135 Applications for grant etc of gas transporter licence

136 Modification of gas transporter licence by Secretary of State

137 Scope of modification powers under section 136

138 Procedure etc relating to modifications under section 136

139 Information and advice

140 Conditions of gas transporter licences for conveyance of hydrogen

141 Secretary of State directions to the GEMA

142 Repeal of Part 3

Part 4
New technology

Chapter 1 Low-carbon heat schemes

143 Low-carbon heat schemes

144 Application of scheme

145 Setting of targets etc

146 Further provision about scheme regulations

147 Administration of scheme

148 Enforcement, penalties and offences

149 Application of sums paid by virtue of section 146(4) or 148(3)

151 Scheme regulations: procedure etc

152 Interpretation of Chapter 1

Chapter 2 Hydrogen grid conversion trials

153 Modifications of the gas code

154 Regulations for protection of consumers

Chapter 3 Miscellaneous

155 Power to modify Gas Act 1986 in relation to hydrogen

156 Fusion energy facilities: nuclear site licence not required

Renewable and sustainable fuel

157 Treatment of recycled carbon fuel and nuclear-derived fuel as renewable transport fuel

158 Revenue certainty scheme for sustainable aviation fuel producers: consultation and report

159 Renewable liquid heating fuel obligations

Removals of greenhouse gases

160 Climate Change Act 2008: meaning of “UK removals”

Part 5
Independent System Operator and Planner

161 The Independent System Operator and Planner (“the ISOP”)

162 Designation etc

163 Duty to promote particular objectives

164 Duty to have regard to particular matters

165 Duty to have regard to strategy and policy statement

166 Licensing of electricity system operator activity

167 Direction for transmission licence to have effect as electricity system operator licence

168 Licensing of gas system planning activity

169 Modification of licences etc

170 Procedure relating to modifications under section 169

171 Provision of advice, analysis or information

172 Power to require information from regulated persons etc

173 Duty to keep developments in energy sector under review

175 Pension arrangements

176 Financial assistance for the ISOP

177 Cross-sectoral funding

178 Principal objective and general duties of Secretary of State and GEMA under Part 5

179 Minor and consequential amendments

180 Interpretation of Part 5

181 Regulations under Part 5

Part 6
Governance of gas and electricity industry codes

182 Designation of codes etc

183 Meaning of “code manager” and “code manager licence”

184 Designation of central systems

185 Licence under Gas Act 1986 for performance of code management function

186 Licence under Electricity Act 1989 for performance of code management function

187 Selection of code manager

188 Selection on a non-competitive basis

189 Selection on a competitive basis

190 Strategic direction statement

191 Transfer of functions under section 190 to Independent System Operator and Planner

192 Modification of designated documents by GEMA

193 Modification under section 192

194 Directions relating to designated central systems

195 Directions under section 194

196 Principal objective and general duties of Secretary of State and GEMA under Part 6

197 GEMA’s annual report to cover matters relating to designated documents

198 Regulations under Part 6

199 Interpretation of Part 6

200 Transitional provision and pension arrangements

201 Minor and consequential amendments

Part 7
Market reform and consumer protection

202 Principal objectives of Secretary of State and GEMA

203 Competitive tenders for electricity projects

204 Mergers of energy network enterprises

205 Licence required for operation of multi-purpose interconnector

206 Standard conditions for MPI licences

207 Operation of multi-purpose interconnectors: independence

208 Grant of MPI licences to existing operators

209 Power to make consequential etc provision

210 Consequential amendments relating to multi-purpose interconnectors

211 Electricity support payments for energy-intensive industries

212 Levy to fund electricity support payments

213 Electricity storage

214 Payment as alternative to complying with certain energy company obligations

215 Smart meters: extension of time for exercise of powers

Part 8
Heat networks

Chapter 1 Regulation of heat networks

216 Relevant heat network

217 The Regulator

218 Alternative dispute resolution for consumer disputes

219 Heat networks regulations

220 Regulations made by Secretary of State: consultation with devolved authorities

221 Heat networks regulations: other provision about procedure

222 Recovery of costs by GEMA and NIAUR

223 Heat networks: licensing authority in Scotland

224 Heat networks: enforcement in Scotland

225 Interpretation of Chapter 1

Chapter 2 Heat network zones

Zones regulations

226 Regulations about heat network zones

Heat Network Zones Authority and zone coordinators

227 Heat Network Zones Authority

228 Zone coordinators

Identification, designation and review of zones

229 Identification, designation and review of zones

230 Zoning methodology

231 Requests for information in connection with section 229 or 230

Heat networks within zones

232 Heat networks within zones

233 Delivery of district heat networks within zones

234 Enforcement of heat network zone requirements

Records, information and reporting

236 Records, information and reporting

237 Interpretation of Chapter 2

Part 9
Energy smart appliances and load control

Chapter 1 Introductory

238 Energy smart appliances and load control

Chapter 2 Energy smart appliances

239 Energy smart regulations

240 Prohibitions and requirements: supplemental

241 Enforcement

242 Sanctions, offences and recovery of costs

243 Appeals against enforcement action

244 Regulations: procedure and supplemental

Chapter 3 Licensing of load control

245 Power to amend licence conditions etc: load control

246 Power to amend licence conditions etc: procedure

247 Load control: supplemental

248 Application of general duties to functions relating to load control

249 Licensing of activities relating to load control

Part 10
Energy performance of premises

250 Power to make energy performance regulations

251 Energy performance regulations relating to new premises

253 Regulations under Part 10

Part 11
Energy Savings Opportunity Schemes

254 Energy savings opportunity schemes

255 Application of energy savings opportunity schemes

256 Requirement for assessment of energy consumption

258 ESOS action plans

259 Action to achieve energy savings or emissions reductions

260 Scheme administration

261 Enforcement, penalties and offences

263 ESOS regulations: procedure etc

264 Directions to scheme administrators

265 Financial assistance to scheme administrators and participants

266 Interpretation of Part 11

Part 12
Core fuel sector resilience

Chapter 1 Introduction

267 General objective

268 “Core fuel sector activity” and other key concepts

Chapter 2 Powers for resilience purposes

269 Directions to particular core fuel sector participants

270 Procedure for giving directions

271 Offence of failure to comply with a direction

Corresponding powers to make regulations

272 Corresponding powers to make regulations

273 Power to require information

274 Duty to report incidents

275 Contravention of requirement under section 273 or 274

276 Provision of information at specified intervals

277 Disclosure of information held by the Secretary of State

278 Disclosure of information by HMRC

Appeal against notice or direction

279 Appeal against notice or direction

Chapter 3 Enforcement

280 False statements etc

281 Offences under regulations

282 Proceedings for offences

283 Liability of officers of entities

Enforcement undertakings

284 Enforcement undertakings

285 Guidance: criminal and civil sanctions

286 Guidance: Parliamentary scrutiny

Chapter 4 General

Financial assistance

287 Financial assistance for resilience and continuity purposes

Power to amend thresholds

288 Power to amend thresholds

Interpretation of Part 12

289 Interpretation of Part 12

Part 13
Offshore wind electricity generation, oil and gas

Chapter 1 Offshore wind electricity generation

290 Meaning of “relevant offshore wind activity”

291 Strategic compensation for adverse environmental effects

292 Marine recovery fund

293 Assessment of environmental effects etc

294 Regulations under section 293: consultation and procedure

295 Interpretation of Chapter 1

Chapter 2 Oil and Gas

Environmental protection

296 Arrangements for responding to marine oil pollution

297 Habitats: reducing effects of offshore oil or gas activities etc

298 Regulations under sections 296 and 297: procedure with devolved authorities

Decommissioning: charging

299 Charges in connection with abandonment of offshore installations

Change in control of licensee

300 Model clauses of petroleum licences

301 Power of OGA to require information about change in control of licensee

Part 14
Civil nuclear sector

Chapter 1 Civil nuclear sites

302 Application to the territorial sea of requirement for nuclear site licence

303 Decommissioning of nuclear sites etc

304 Excluded disposal sites

305 Accession to Convention on Supplementary Compensation for Nuclear Damage

306 Power to implement Convention on Supplementary Compensation for Nuclear Damage

Chapter 2 Civil Nuclear Constabulary

307 Provision of additional police services

308 Provision of assistance to other forces

309 Cross-border enforcement powers

310 Publication of three-year strategy plan

Chapter 3 Relevant nuclear pension schemes

311 Civil nuclear industry: amendment of relevant nuclear pension schemes

312 Meaning of “relevant nuclear pension scheme”

313 Information

314 Further definitions

315 Application of relevant pensions legislation

316 Procedure for regulations under Chapter 3

Chapter 4 Great British Nuclear

Great British Nuclear: designation, status and objects

317 Great British Nuclear

318 Crown status

319 Great British Nuclear’s objects

Financial assistance and directions etc

320 Financial assistance

321 Secretary of State directions and guidance

Annual report and accounts

322 Annual report

323 Annual accounts

Transfers and pension arrangements etc

324 Transfer schemes

325 Transfer schemes: compensation

326 Transfer schemes: taxation

327 Transfer schemes: provision of information or assistance

328 Reimbursement and compensation in connection with designation

329 Pension arrangements in connection with Great British Nuclear

Part 15
General

330 Power to make consequential provision

331 Regulations

332 General definitions

334 Commencement

335 Short title

SCHEDULES

Schedule 1 Interim power of Secretary of State to grant licences

Schedule 2 Procedure for appeals under section 20

Schedule 3 Enforcement of obligations of licence holders

Schedule 4 Transfer schemes

Schedule 5 Amendments related to Part 1

Schedule 6 Carbon dioxide storage licences: licence provisions

Schedule 7 Permitted disclosures of material obtained by OGA

Schedule 8 Carbon storage information and samples: appeals

Schedule 9 Independent System Operator and Planner: transfers

Schedule 10 Independent System Operator and Planner: pensions

Schedule 11 Minor and consequential amendments relating to Part 5

Schedule 12 Governance of gas and electricity industry codes: transitional provision

Schedule 13 Governance of gas and electricity industry codes: pensions

Schedule 14 Minor and consequential amendments relating to Part 6

Schedule 15 Competitive tenders for electricity projects

Schedule 16 Mergers of energy network enterprises

Schedule 17 Multi-purpose interconnectors: consequential amendments

Schedule 18 Heat networks regulation

Schedule 19 Licensing of activities relating to load control

Schedule 20 Enforcement undertakings

Schedule 21 Petroleum licences: amendments to model clauses

Schedule 22 Accession to Convention on Supplementary Compensation for Nuclear Damage

Which version?
Latest available (Revised)
Original (As enacted)

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Part 14Civil nuclear sector

Chapter 4Great British Nuclear

Financial assistance and directions etc

320Financial assistance

(1)

The Secretary of State may provide financial assistance—

(a)

to Great British Nuclear, or

(b)

to any other person to facilitate the design, construction, commissioning and operation of nuclear energy generation projects.

(2)

Financial assistance under this section may be provided in any form and in particular may be provided—

(a)

by way of grant, loan, guarantee or indemnity,

(b)

by the acquisition of shares or any other interest in, or securities of, a body corporate,

(c)

by the acquisition of any undertaking or of any assets,

(d)

pursuant to a contract, or

(e)

by incurring expenditure for the benefit of the person assisted.

(3)

Financial assistance under this section may be provided subject to such conditions as the Secretary of State considers appropriate, which may include—

(a)

conditions about repayment with or without interest or other return, or

(b)

conditions with which Great British Nuclear or any recipient of financial assistance under subsection (1)(b) must comply if the financial assistance is used for—

(i)

acquiring shares or any other interest in, or securities of, a body corporate, or

(ii)

participating in a partnership or joint venture.

(4)

The power to provide financial assistance under this section is in addition to (and does not limit or replace) any other power of a Minister of the Crown to provide financial assistance.

(5)

In this section—

“Minister of the Crown” has the same meaning as in the Ministers of the Crown Act 1975 (see section 8(1) of that Act);

“partnership” means—

(a)

a partnership within the meaning of the Partnership Act 1890, or

(b)

a limited partnership within the meaning of the Limited Partnerships Act 1907.

321Secretary of State directions and guidance

(1)

The Secretary of State may from time to time give Great British Nuclear directions or guidance.

(2)

Before giving a direction or issuing guidance the Secretary of State must consult Great British Nuclear and such other persons as the Secretary of State considers appropriate.

(3)

Directions may be general or particular in character.

(4)

Great British Nuclear must—

(a)

comply with any directions given to it under this section, and

(b)

have regard to any guidance given to it under this section.

(5)

The Secretary of State must—

(a)

publish and lay before Parliament any directions given to Great British Nuclear under this section, and

(b)

publish any guidance given to Great British Nuclear under this section.