Legislation – Energy Act 2023

New Search

Introduction

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

Information

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

Enforcement

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

Interpretation

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

Carbon capture

67 Designation of carbon capture counterparty

68 Direction to offer to contract with eligible carbon capture entity

Hydrogen levy

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

Enforcement

84 Enforcement

Consultation

85 Consultation

Transfer schemes

86 Transfer schemes

87 Modification of transfer schemes

General

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

101 Review

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

Introductory

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

General

125 Appeals

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)

150 Appeals

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

Hydrogen

155 Power to modify Gas Act 1986 in relation to hydrogen

Fusion energy

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

165A Functions relating to network connections: duty to have regard to designated plans

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

174 Transfers

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

Enforcement

234 Enforcement of heat network zone requirements

235 Penalties

Records, information and reporting

236 Records, information and reporting

Interpretation

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

252 Sanctions

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

257 Assessors

258 ESOS action plans

259 Action to achieve energy savings or emissions reductions

260 Scheme administration

261 Enforcement, penalties and offences

262 Appeals

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

Directions

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

Information

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

Offences

280 False statements etc

281 Offences under regulations

282 Proceedings for offences

283 Liability of officers of entities

Enforcement undertakings

284 Enforcement undertakings

Guidance

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

333 Extent

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

Changes to legislation:

There are currently no known outstanding effects for the Energy Act 2023, Cross Heading: Grant and conditions of licences. Help about Changes to Legislation

Close

Changes to Legislation

Revised legislation carried on this site may not be fully up to date. At the current time any known changes or effects made by subsequent legislation have been applied to the text of the legislation you are viewing by the editorial team. Please see ‘Frequently Asked Questions’ for details regarding the timescales for which new effects are identified and recorded on this site.

Part 1Licensing of carbon dioxide transport and storage

Chapter 1Licensing of activities

Grant and conditions of licences

7Power to grant licences

(1)

The economic regulator may grant a licence authorising a person to carry on—

(a)

activities falling within section 2(2)(a);

(b)

activities falling within section 2(2)(b).

(2)

A licence—

(a)

must be in writing;

(b)

is to continue in force for such period as may be specified in or determined by or under the licence, unless previously revoked in accordance with any term of the licence.

Annotations:
Commencement Information

I1S. 7 in force at 26.12.2023, see s. 334(3)(a)

8Power to create licence types

(1)

The Secretary of State may by regulations provide that different types of licence may be granted under section 7(1) in respect of different descriptions of activity falling within section 2(2).

(2)

Regulations under this section may make consequential, transitional, incidental or supplementary provision including—

(a)

amendments (or repeals or revocations) in any provision of this Act or any other enactment, and

(b)

provision modifying any standard conditions of licences or provision determining the conditions which are to be standard conditions for the purposes of new types of licences.

(3)

Before making regulations under this section containing provision within devolved competence, the Secretary of State must give notice to each relevant devolved authority—

(a)

stating that the Secretary of State proposes to make regulations under this section, and

(b)

specifying the period (of not less than 28 days from the date on which the notice is given) within which representations may be made with respect to the provision within the relevant devolved competence,

and must consider any representations duly made and not withdrawn.

(4)

For the purposes of this section “relevant devolved authority” means—

(a)

the Scottish Ministers, if the regulations contain provision within Scottish devolved competence;

(b)

the Welsh Ministers, if the regulations contain provision within Welsh devolved competence;

(c)

the Department for the Economy in Northern Ireland, if the regulations contain provision within Northern Ireland devolved competence;

and “the relevant devolved competence”, in relation to a relevant devolved authority, is to be construed accordingly.

(5)

For the purposes of this section, provision—

(a)

is within Scottish devolved competence if it would be within the legislative competence of the Scottish Parliament if it were contained in an Act of that Parliament;

(b)

is within Welsh devolved competence if it would be within the legislative competence of Senedd Cymru if it were contained in an Act of the Senedd (ignoring any requirement for the consent of a Minister of the Crown imposed under Schedule 7B to the Government of Wales Act 2006);

(c)

is within Northern Ireland devolved competence if it—

(i)

would be within the legislative competence of the Northern Ireland Assembly if it were contained in an Act of that Assembly, and

(ii)

would not, if it were contained in a Bill in the Northern Ireland Assembly, result in the Bill requiring the consent of the Secretary of State under section 8 of the Northern Ireland Act 1998;

and references to provision being within devolved competence are to provision that is within Scottish, Welsh or Northern Ireland devolved competence.

(6)

Regulations under this section are subject to the affirmative procedure.

Annotations:
Commencement Information

I2S. 8 in force at 26.12.2023, see s. 334(3)(a)

9Procedure for licence applications

(1)

The Secretary of State, or the economic regulator with the approval of the Secretary of State, may by regulations—

(a)

make provision about the form and manner in which an application for a licence must be made;

(b)

authorise the grantor to require that an application is accompanied by a fee for processing the application of an amount determined in accordance with the regulations.

(2)

The Secretary of State may by regulations make provision about the procedure for applications for a licence (in addition to any provision that may be made under subsection (1)) including, for example, provision—

(a)

requiring that a decision to refuse a licence must be accompanied by reasons for the decision;

(b)

imposing requirements with regard to the publication of decisions to refuse a licence.

(3)

Before making regulations under subsection (2) or (7) the Secretary of State must—

(a)

consult the economic regulator and the appropriate devolved authorities, and

(b)

specify a period of not less than 28 days within which representations or objections with respect to the proposed regulations may be made,

and the Secretary of State must consider any representations or objections which are duly made and not withdrawn.

(4)

Before granting a licence the economic regulator must give notice—

(a)

stating that the economic regulator proposes to grant the licence,

(b)

stating the reasons why the economic regulator proposes to grant the licence, and

(c)

specifying the time (which must not be less than 28 days from the date of publication of the notice) within which representations or objections with respect to the proposed licence may be made,

and must consider any representations or objections which are duly made and not withdrawn.

(5)

A notice under subsection (4) must be given by—

(a)

publishing the notice in such manner as the economic regulator considers appropriate for bringing it to the attention of persons likely to be affected by the grant of the licence, and

(b)

sending a copy of the notice to—

(i)

the Scottish Ministers, if an activity that would be authorised by the proposed licence is within Scottish devolved competence;

(ii)

the Welsh Ministers, if an activity that would be authorised by the licence is within Welsh devolved competence;

(iii)

the Department for the Economy in Northern Ireland, if an activity that would be authorised by the licence is within Northern Ireland devolved competence.

(6)

Section 17(4) (activities authorised by a licence: devolved competence) applies for the purposes of subsection (5)(b) of this section as it applies for the purposes of section 17.

(7)

The Secretary of State may by regulations make provision, in relation to licences, about the matters to be taken into account in determining whether an applicant for a licence should be granted the licence.

(8)

Regulations under this section are subject to the negative procedure.

(9)

Consultation before the passing of this Act is as effective for the purposes of subsections (3) and (4) as consultation after that time.

(10)

In this Part “grantor”, in relation to a licence or an application for a licence, means the person who grants or, as the case may be, has power to grant, the licence.

(11)

For the purposes of this section “appropriate devolved authority”, in relation to regulations, means—

(a)

the Scottish Ministers, if the regulations contain provision within Scottish devolved competence;

(b)

the Welsh Ministers, if the regulations contain provision within Welsh devolved competence;

(c)

the Department for the Economy in Northern Ireland, if the regulations contain provision within Northern Ireland devolved competence.

(12)

For the purposes of this section, provision—

(a)

is within Scottish devolved competence if it would be within the legislative competence of the Scottish Parliament if it were contained in an Act of that Parliament;

(b)

is within Welsh devolved competence if it would be within the legislative competence of Senedd Cymru if it were contained in an Act of the Senedd (ignoring any requirement for the consent of a Minister of the Crown imposed under Schedule 7B to the Government of Wales Act 2006);

(c)

is within Northern Ireland devolved competence if it—

(i)

would be within the legislative competence of the Northern Ireland Assembly if it were contained in an Act of that Assembly, and

(ii)

would not, if it were contained in a Bill in the Northern Ireland Assembly, result in the Bill requiring the consent of the Secretary of State under section 8 of the Northern Ireland Act 1998.

(13)

The Statutory Instruments Act 1946 applies in relation to the power of the economic regulator to make regulations under subsection (1) as if the economic regulator were a Minister of the Crown.

(14)

Any sums received by the economic regulator or the Secretary of State by virtue of this section must be paid into the Consolidated Fund.

Annotations:
Commencement Information

I3S. 9 in force at 26.12.2023, see s. 334(3)(a)

10Competitive tenders for licences

(1)

The Secretary of State may by regulations make such provision as the Secretary of State considers appropriate for facilitating the making, in prescribed cases, of a determination on a competitive basis of the person to whom a licence is to be granted.

(2)

That provision may include—

(a)

provision, in prescribed cases, for the publication of a proposal to grant a licence;

(b)

provision for the inclusion in such a proposal of an invitation to apply for a licence;

(c)

provision restricting the making of applications for a licence and imposing requirements as to the period within which they must be made;

(d)

provision for regulating the manner in which applications are considered and determined;

(e)

provision authorising the Secretary of State to direct, in relation to a particular competition, that specified functions which would, apart from the direction, be exercisable by the economic regulator are, so far as they relate to that competition, to be exercised instead by a specified person.

(3)

Before making regulations under subsection (1) the Secretary of State must give notice to the economic regulator and the appropriate devolved authorities—

(a)

stating that the Secretary of State proposes to make regulations under this section, and

(b)

specifying the period (of not less than 28 days from the date on which the notice is given) within which representations must be made with respect to the proposed provisions,

and must consider any representations duly made and not withdrawn.

(4)

Regulations under subsection (1)

(a)

may make provision by reference to a determination by the economic regulator or to the opinion of the economic regulator as to any matter;

(b)

may dispense with or supplement provision made in relation to applications for licences under section 9.

(5)

Regulations under subsection (1) are subject to the affirmative procedure.

(6)

For the purposes of subsection (3) the “appropriate devolved authorities” are—

(a)

the Scottish Ministers, if the regulations contain provision that would be within the legislative competence of the Scottish Parliament if it were contained in an Act of that Parliament;

(b)

the Welsh Ministers, if the regulations contain provision that would be within the legislative competence of Senedd Cymru if it were contained in an Act of the Senedd (ignoring any requirement for the consent of a Minister of the Crown imposed under Schedule 7B to the Government of Wales Act 2006);

(c)

the Department for the Economy in Northern Ireland, if the regulations contain provision that—

(i)

would be within the legislative competence of the Northern Ireland Assembly if it were contained in an Act of that Assembly, and

(ii)

would not, if it were contained in a Bill in the Northern Ireland Assembly, result in the Bill requiring the consent of the Secretary of State under section 8 of the Northern Ireland Act 1998.

(7)

In this section—

competition” means a determination such as is mentioned in subsection (1);

prescribed” means prescribed in, or determined under, regulations under subsection (1);

specified”, in relation to a direction under subsection (2)(e), means specified in the direction.

Annotations:
Commencement Information

I4S. 10 in force at 26.12.2023, see s. 334(3)(a)

11Conditions of licences: general

(1)

A licence may include—

(a)

such conditions (whether or not relating to the activities authorised by the licence) as appear to the grantor to be requisite or expedient having regard to the duties imposed by section 1 (principal objectives of Secretary of State and economic regulator), and

(b)

conditions requiring the making to the economic regulator of a payment on the grant of the licence, or payments during the currency of the licence, or both, of such amount or amounts as may be determined by or under the licence.

(2)

Without prejudice to the generality of paragraph (a) of subsection (1), conditions included in a licence by virtue of that paragraph may require the licence holder—

(a)

to comply with any direction given by the economic regulator or the Secretary of State as to such matters as are specified in the licence or are of a description so specified,

(b)

to consent to the disclosure of information provided in accordance with a direction given to the licence holder,

(c)

except in so far as the economic regulator or Secretary of State consents to the licence holder’s doing (or not doing) them, not to do (or to do) such things as are specified in the licence or are of a description so specified,

(d)

to refer for determination by the economic regulator or Secretary of State such questions arising under the licence, or under any document referred to in the licence, as are specified in the licence or are of a description so specified, and

(e)

to refer for approval by the economic regulator or the Secretary of State such things as are (or may be) required to be done under the licence, and such contracts or agreements made before the grant of the licence, as are specified in the licence or are of a description so specified.

(3)

Without prejudice to the generality of paragraph (a) of subsection (1), conditions in a licence may also include—

(a)

provision about the revenue that the licence holder may receive in respect of its activities (the licence holder’s “allowed revenue”);

(b)

provision about how the licence holder’s allowed revenue is to be calculated.

(4)

In subsection (3) the reference to revenue that the licence holder may receive in respect of its activities includes revenue that is calculated by reference to estimates of the licence holder’s decommissioning costs, as defined in section 92 (financing of costs of decommissioning etc).

(5)

Without prejudice to the generality of paragraph (a) of subsection (1), conditions which are described in subsection (6) may be included in a licence by virtue of that paragraph, in respect of circumstances where a person (“the licence holder”) holds such a licence, and another person (“the candidate”)—

(a)

has applied or is considering whether to apply for a licence, or

(b)

is considering whether to apply for financial support for carbon capture activities.

(6)

The conditions in this subsection are conditions which require the licence holder to comply with a direction given by the economic regulator or the Secretary of State requiring the licence holder to provide to the candidate—

(a)

information in relation to the activities authorised by the licence, and

(b)

any other assistance the candidate may reasonably require, for the purpose of determining whether to—

(i)

apply for a licence, or

(ii)

(as the case may be) apply for financial support for carbon capture activities.

(7)

Conditions included in a licence may contain provision for the conditions—

(a)

to have effect or cease to have effect at such times and in such circumstances as may be determined by or under the conditions, or

(b)

to be modified in such manner as may be specified in the conditions at such times and in such circumstances as may be so determined.

(8)

Any provision included by virtue of subsection (7) in a licence is to have effect in addition to the provision made by this Part with respect to the modification of the conditions of a licence.

(9)

Conditions included in a licence may provide for references in the conditions to any document to operate as references to that document as revised or re-issued from time to time.

(10)

Any sums received by the economic regulator in consequence of the provisions of any condition of a licence must be paid into the Consolidated Fund.

Annotations:
Commencement Information

I5S. 11 in force at 26.12.2023, see s. 334(3)(a)

12Standard conditions of licences

(1)

The Secretary of State may determine the conditions that are to be the standard conditions of licences.

(2)

The Secretary of State must publish any standard conditions determined under subsection (1) in whatever manner the Secretary of State considers appropriate.

(3)

Subject to subsections (4) and (5), each condition which is a standard condition is to be incorporated by reference in each licence.

(4)

Subsection (3) does not apply to a licence granted before the publication of the standard condition.

(5)

Subject to the following provisions of this section, the grantor of a licence in which standard conditions would, but for this subsection, be incorporated in accordance with subsection (3) may exclude or modify any of those standard conditions, to such extent as the grantor may consider requisite to meet the circumstances of a particular case.

(6)

Before excluding any standard conditions or making any modifications under subsection (5), the grantor must give notice—

(a)

stating that the grantor proposes to exclude the conditions or make the modifications and setting out the effect of so doing,

(b)

stating the reasons why the grantor proposes to exclude the conditions or make the modifications, and

(c)

specifying the time (which must not be less than 28 days from the date of publication of the notice) within which representations or objections with respect to the proposed exclusions or modifications may be made,

and must consider any representations or objections which are duly made and not withdrawn.

(7)

A notice under subsection (6) must be given—

(a)

by publishing the notice in whatever manner the grantor considers appropriate for the purpose of bringing the notice to the attention of persons likely to be affected by the making of the exclusions or modifications, and

(b)

by sending a copy of the notice to the appropriate devolved authorities (if any) and the Secretary of State.

(8)

The grantor must not exclude any conditions, or make any modifications, under subsection (5) unless the grantor is of the opinion that the exclusions or modifications are such that—

(a)

the licence holder would not be unduly disadvantaged in competing with other holders of licences, and

(b)

no other holder of a licence would be unduly disadvantaged in competing with other holders of such licences (including the holder of the licence).

(9)

If, within the time specified in the notice under subsection (6), the Secretary of State (after consulting the appropriate devolved authorities (if any)) directs the grantor not to exclude or modify any standard condition, the grantor must comply with the direction.

(10)

The modification under subsection (5) of part of a standard condition does not prevent any other part of the condition from continuing to be treated as a standard condition for the purposes of this Part.

(11)

Where, in granting a licence, the grantor excludes or modifies any standard conditions under subsection (5), the grantor must publish a notice setting out—

(a)

each exclusion or modification,

(b)

their effects, and the reason for adopting them, and

(c)

how the grantor has taken account of any representations or objections made in accordance with subsection (6).

(12)

For the purposes of this section the “appropriate devolved authorities” are—

(a)

the Welsh Ministers, if provision making the exclusions and modifications proposed in the notice under subsection (6) would be within the legislative competence of Senedd Cymru if it were contained in an Act of the Senedd (ignoring any requirement for the consent of a Minister of the Crown imposed under Schedule 7B to the Government of Wales Act 2006);

(b)

the Scottish Ministers, if provision making the exclusions and modifications proposed in that notice would be within the legislative competence of the Scottish Parliament if it were contained in an Act of that Parliament;

(c)

the Department for the Economy in Northern Ireland, if provision making the exclusions and modifications proposed in that notice—

(i)

would be within the legislative competence of the Northern Ireland Assembly if it were contained in an Act of that Assembly, and

(ii)

would not, if it were contained in a Bill in the Northern Ireland Assembly, result in the Bill requiring the consent of the Secretary of State under section 8 of the Northern Ireland Act 1998.

Annotations:
Commencement Information

I6S. 12 in force at 26.12.2023, see s. 334(3)(a)

13Modification of conditions of licences

(1)

The economic regulator may make modifications of—

(a)

the conditions of a particular licence;

(b)

the standard conditions of licences.

(2)

Before making any modifications under this section, the economic regulator must give notice—

(a)

stating that it proposes to make modifications,

(b)

setting out the proposed modifications and their effect,

(c)

stating the reasons why it proposes to make the modifications, and

(d)

specifying the time within which representations with respect to the proposed modifications may be made.

(3)

The time specified by virtue of subsection (2)(d) may not be less than 28 days from the date of the publication of the notice.

(4)

A notice under subsection (2) must be given—

(a)

by publishing the notice in such manner as the economic regulator considers appropriate for the purpose of bringing the notice to the attention of persons likely to be affected by the making of the modifications, and

(b)

by sending a copy of the notice to—

(i)

each relevant licence holder,

(ii)

the Secretary of State, and

(iii)

the appropriate devolved authorities (if any).

(5)

The economic regulator must consider any representations which are duly made.

(6)

If, within the time specified by virtue of subsection (2)(d), the Secretary of State directs the economic regulator not to make any modification, the economic regulator must comply with the direction.

(7)

Subsections (8) to (10) apply where, having complied with subsections (2) to (5), the economic regulator decides to proceed with the making of modifications of the conditions of any licence under this section.

(8)

The economic regulator must—

(a)

publish the decision and the modifications in such manner as it considers appropriate for the purpose of bringing them to the attention of persons likely to be affected by the making of the modifications,

(b)

state the effect of the modifications,

(c)

state how it has taken account of any representations duly made, and

(d)

state the reason for any differences between the modifications and those set out in the notice by virtue of subsection (2)(b).

(9)

Each modification has effect from the date specified by the economic regulator in relation to that modification (subject to the giving of a direction under paragraph 2 of Schedule 2).

(10)

The date specified by virtue of subsection (9) may not be less than 56 days from the publication of the decision to proceed with the making of modifications under this section.

(11)

In this section “relevant licence holder”—

(a)

in relation to the modification of standard conditions, means the holder of a licence—

(i)

which is to be modified by the inclusion of any new standard condition, or

(ii)

which includes any standard conditions to which the modifications relate which are in effect at the time specified by virtue of subsection (2)(d), or

(b)

in relation to the modification of a condition of a particular licence (other than a standard condition), means the holder of that particular licence.

(12)

For the purposes of this section the “appropriate devolved authorities” are—

(a)

the Welsh Ministers, if provision making the modifications proposed in the notice under subsection (2) would be within the legislative competence of Senedd Cymru if it were contained in an Act of the Senedd (ignoring any requirement for the consent of a Minister of the Crown imposed under Schedule 7B to the Government of Wales Act 2006);

(b)

the Scottish Ministers, if provision making the modifications proposed in that notice would be within the legislative competence of the Scottish Parliament if it were contained in an Act of that Parliament;

(c)

the Department for the Economy in Northern Ireland, if provision making the modifications proposed in that notice—

(i)

would be within the legislative competence of the Northern Ireland Assembly if it were contained in an Act of that Assembly, and

(ii)

would not, if it were contained in a Bill in the Northern Ireland Assembly, result in the Bill requiring the consent of the Secretary of State under section 8 of the Northern Ireland Act 1998.

Annotations:
Commencement Information

I7S. 13 in force at 26.12.2023, see s. 334(3)(a)

14Modification of conditions under section 13: supplementary

(1)

Subsections (2) and (3) apply where at any time the economic regulator modifies the conditions of licences under section 13.

(2)

If the conditions modified are standard conditions, the economic regulator must—

(a)

also make (as nearly as possible) the same modifications of those conditions for the purposes of their incorporation in licences granted after that time, and

(b)

publish the modifications in such manner as it considers appropriate for the purpose of bringing them to the attention of persons likely to be affected by the making of the modifications.

(3)

The economic regulator may make such incidental or consequential modifications of any conditions of licences as it considers necessary or expedient.

(4)

The modification of part of a standard condition of a particular licence under section 13 does not prevent any other part of the condition from continuing to be regarded as a standard condition for the purposes of this Part.

(5)

The modification of a condition of a licence under this section has effect subject to the giving of a direction under paragraph 2 of Schedule 2 in relation to the decision to which the modification relates.

Annotations:
Commencement Information

I8S. 14 in force at 26.12.2023, see s. 334(3)(a)

15Modification by order under other enactments

(1)

Where the CMA or (as the case may be) the Secretary of State (in this section “the relevant authority”) makes a relevant order, the order may also provide for the modification of—

(a)

the conditions of a particular licence, or

(b)

the standard conditions of licences,

to such extent as may appear to the relevant authority to be necessary or expedient for the purpose of giving effect to, or taking account of, any provision made by the order.

(2)

In subsection (1)relevant order” means—

(a)

an order under section 75, 83 or 84 of, or paragraph 5, 10 or 11 of Schedule 7 to, the Enterprise Act 2002 where—

(i)

one or more than one of the enterprises which have, or may have, ceased to be distinct enterprises was engaged in the carrying on of activities authorised or regulated by a licence, or

(ii)

one or more than one of the enterprises which will or may cease to be distinct enterprises is engaged in the carrying on of activities authorised or regulated by a licence, or

(b)

an order under section 160 or 161 of that Act where the feature, or combination of features, of the market or markets in the United Kingdom for goods or services which prevents, restricts or distorts competition relates to activities authorised or regulated by a licence.

(3)

The modification under subsection (1)(a) of part of a standard condition of a particular licence does not prevent any other part of the condition from continuing to be regarded as a standard condition for the purposes of this Part.

(4)

Where at any time the relevant authority modifies under subsection (1)(b) the standard conditions of licences, the relevant authority—

(a)

must also make (as nearly as possible) the same modifications of those conditions for the purposes of their incorporation in licences granted after that time, and

(b)

may, after consultation with the economic regulator, make such incidental or consequential modifications as the relevant authority considers necessary or expedient of any conditions of licences under that provision granted before that time.

(5)

Where at any time the relevant authority modifies standard conditions under subsection (4)(a) for the purposes of their incorporation in licences granted after that time, the relevant authority must publish those modifications in such manner as the relevant authority considers appropriate.

(6)

Expressions used in subsection (2) and in Part 3 or (as the case may be) Part 4 of the Enterprise Act 2002 have the same meanings in that subsection as in that Part.

Annotations:
Commencement Information

I9S. 15 in force at 26.12.2023, see s. 334(3)(a)