Legislation – Energy Act 2023

protect the interests of current and future transport and storage network users;

protect the interests of any consumers whose interests the Secretary of State or the economic regulator (as the case may be) considers may be impacted by the exercise of their respective functions under this Part;

promote the efficient and economic development and operation of transport and storage networks, having regard to the need for licence holders to be able to finance their licensable activities.

promoting effective competition between persons engaged in, or in commercial activities connected with, the activities mentioned in section 2(2);

promoting the resilience of transport and storage networks;

protecting the public from dangers arising from the construction, operation and decommissioning of infrastructure used for the purposes of activities mentioned in section 2(2).

the principles under which regulatory activities should be transparent, accountable, proportionate, consistent and targeted only at cases in which action is needed, and any other principles appearing to the Secretary of State or the economic regulator to represent the best regulatory practice;

the need to contribute to the achievement of sustainable development.

the need to assist the Secretary of State’s compliance with the duties mentioned in subsection (5);

the targets specified in subsection (8).

the net-zero emissions target, as defined in section A1(1) of the Climate Change (Scotland) Act 2009 (asp 12);

the interim targets, as defined in section 2 of that Act;

a target in, or set under, section 1 or 2 of the Climate Change Act (Northern Ireland) 2022;

a target in, or set under, section 29 or 30 of the Environment (Wales) Act 2016 (anaw 3).

operating a site for the disposal of carbon dioxide by way of geological storage;

providing a service of transporting carbon dioxide by a licensable means of transportation.

a pipe or system of pipes, or

any other means of transportation that may be specified by regulations made by the Secretary of State,

on summary conviction in England and Wales, to a fine;

on summary conviction in Scotland or Northern Ireland, to a fine not exceeding the statutory maximum;

on conviction on indictment, to a fine.

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

provision modifying any standard conditions of licences or provision determining the conditions which are to be standard conditions for the purposes of licences authorising the undertaking of activities which are to become licensable activities.

an Act of the Scottish Parliament, or an instrument made under such an Act, unless the Scottish Ministers have consented to the making of that provision;

a Measure or Act of Senedd Cymru, or an instrument made under such a Measure or Act, unless the Welsh Ministers have consented to the making of that provision;

Northern Ireland legislation, or an instrument made under Northern Ireland legislation, unless the Department for the Economy in Northern Ireland has consented to the making of that provision.

stating that the Secretary of State proposes to make regulations providing for the means of transportation in question to become a licensable means of transportation, and

specifying a reasonable period (of not less than 28 days from the date of publication of the notice) within which representations or objections may be made with respect to the proposal,

by sending a copy of the notice to the economic regulator, the appropriate devolved authorities and any other body the Secretary of State considers appropriate, and

by publishing it in such manner as the Secretary of State considers appropriate for bringing it to the attention of persons likely to be affected by such regulations.

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);

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;

to a specified person, or persons of a specified class;

generally or to such extent as may be specified;

unconditionally or subject to such conditions as may be specified.

stating that the Secretary of State proposes to make such regulations and setting out the terms of the proposed regulations,

stating the reasons why the Secretary of State proposes to make the regulations in the terms proposed, and

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

by serving a copy of it on the economic regulator and any appropriate devolved authority, and

by publishing it in such manner as the Secretary of State considers appropriate for bringing it to the attention of those likely to be affected by the proposed regulations.

by serving a copy of the exemption on the person, and

by publishing the exemption in such manner as the Secretary of State considers appropriate for bringing it to the attention of other persons who may be affected by it.

persons of that class, and

other persons who may be affected by it.

indefinitely, or

for a period specified in, or determined by or under, the exemption.

to comply with any direction given by a relevant authority as to such matters as are specified in the exemption or are of a description so specified,

to do (or not do) such things as are specified in the exemption or are of a description so specified, except so far as the Secretary of State or a relevant authority consents to the person’s not doing (or doing) them, and

to refer for determination by the Secretary of State or a relevant authority such questions arising under the exemption as are specified in the exemption or are of a description so specified.

the Scottish Ministers, if the regulations under subsection (1) contain provision that would be within the legislative competence of the Scottish Parliament if it were contained in an Act of that Parliament;

the Welsh Ministers, if those 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);

at the person’s request,

in accordance with any provision of the regulations by which the exemption was granted, or

if it appears to the Secretary of State inappropriate that the exemption should continue to have effect.

in accordance with any provision of the regulations by which the exemption was granted, or

if it appears to the Secretary of State inappropriate that the exemption should continue to have effect.

at the person’s request,

in accordance with any provision of the regulations by which the exemption was granted, or

if it appears to the Secretary of State inappropriate that the exemption should continue to have effect in the case of the person.

give notice of the proposal to do so (with reasons) and of a period within which representations may be made to the Secretary of State, and

consider any representations which are duly made and not withdrawn.

to the economic regulator and any appropriate devolved authority,

where the Secretary of State is proposing to make regulations under subsection (1)(b) or (c), by serving a copy of it on the person to whom the exemption was granted,

where the Secretary of State is proposing to make regulations under subsection (2), by publishing it in such manner as the Secretary of State considers appropriate for bringing it to the attention of persons of the class of persons to whom the exemption was granted, and

where the Secretary of State is proposing to make regulations under subsection (3)(b) or (c), by serving a copy of it on the person from whom the Secretary of State proposes to withdraw the exemption.

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

the Welsh Ministers, if those 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);

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

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

must be in writing;

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.

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

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.

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

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,

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

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

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

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;

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);

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

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.

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

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

consult the economic regulator and the appropriate devolved authorities, and

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

stating that the economic regulator proposes to grant the licence,

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

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,

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

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

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

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

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;

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);

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

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

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

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

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.

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

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,

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

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

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;

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);

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

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.

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,

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

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,

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

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.

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

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

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

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

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

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

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.

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

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

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,

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

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

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

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

each exclusion or modification,

their effects, and the reason for adopting them, and

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

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);

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;

the conditions of a particular licence;

the standard conditions of licences.

stating that it proposes to make modifications,

setting out the proposed modifications and their effect,

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

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

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

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,

state the effect of the modifications,

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

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

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);

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;

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

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.

the conditions of a particular licence, or

the standard conditions of licences,

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.

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

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.

the Secretary of State;

the Scottish Ministers, if an activity authorised by the licence is within Scottish devolved competence;

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

the Department for the Economy in Northern Ireland, if an activity authorised by the licence is within Northern Ireland devolved competence;

the Oil and Gas Authority;

any affected persons not falling within paragraphs (a) to (e) that the economic regulator considers appropriate.

in a case where a termination event has arisen, the date on which the economic regulator proposes to revoke the licence, and

in any case, the date by which any representations must be made.

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

is within Welsh devolved competence if provision about that activity 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);

is to be capable of being transferred by the licence holder, with the consent of the economic regulator, in accordance with this section and subject to any term of the licence relating to its transfer;

may include conditions which must be complied with before the licence can be transferred.

the transfer of rights, liabilities or property to the transferee;

the creation of rights in relation to property, rights or liabilities in favour of the transferee;

the creation of other rights and liabilities as between the transferor and transferee.

if the licence is not capable of transfer or the economic regulator has not given its consent under section 19,

if the purported transfer is in breach of a condition of the licence, or

if there has, before the purported transfer, been a contravention of a condition subject to compliance with which the economic regulator’s consent is given.

publish a notice stating that it proposes to grant consent to the transfer,

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

state the reasons why the economic regulator proposes to give consent;

specify any conditions the economic regulator proposes to impose under section 18(4);

specify the time from the date of publication of the notice (which must not be less than two months) within which representations or objections with respect to the proposed transfer may be made,

any proposal to give consent to the transfer, and

any conditions the economic regulator proposes to impose under section 18(4).

the expiry of the time specified in the notice under subsection (4), or

if earlier than the time in paragraph (a), the time at which the Secretary of State informs the economic regulator that in relation to the notice no direction will be given under subsection (5).

a relevant licence holder (within the meaning of section 13);

a transport and storage network user whose interests are materially affected by the decision;

a qualifying body or association in the capacity of representing a person falling within paragraph (a) or (b);

in relation to an appeal brought by a person falling within subsection (2)(b), that the interests of the person are not materially affected by the decision;

in relation to an appeal brought by a qualifying body or association, that the interests of the person represented are not materially affected by the decision;

in the carrying out of its principal objectives under section 1, and

in the performance of its duties under that section.

may have regard to any matter to which the economic regulator was not able to have regard in relation to the decision which is the subject of the appeal, but

must not, in the exercise of that power, have regard to any matter to which the economic regulator would not have been entitled to have regard in reaching its decision had it had the opportunity of doing so.

that the economic regulator failed properly to have regard to any matter mentioned in subsection (2);

that the economic regulator failed to give the appropriate weight to any matter mentioned in subsection (2);

that the decision was based, wholly or partly, on an error of fact;

that the modifications fail to achieve, in whole or in part, the effect stated by the economic regulator by virtue of section 13(8)(b);

that the decision was wrong in law.

quash the decision (to the extent that the appeal is allowed);

remit the matter back to the economic regulator for reconsideration and determination in accordance with any directions given by the CMA;

substitute the CMA’s decision for that of the economic regulator (to the extent that the appeal is allowed) and give any directions to the economic regulator or any other party to the appeal.

quash the decision (to the extent that the appeal is allowed);

remit the matter back to the economic regulator for reconsideration and determination in accordance with any directions given by the CMA.

determine an appeal against a price control decision within the period of 6 months beginning with the permission date;

determine an appeal against any other decision within the period of 4 months beginning with the permission date.

the CMA has received representations on the timing of the determination from a party to the appeal, and

it is satisfied that there are special reasons why the determination cannot be made within the period specified in subsection (1)(a) or (b).

determine an appeal against a price control decision within the period specified by it, which must not be longer than the period of 7 months beginning with the permission date;

determine an appeal against any other decision within the period specified by it, which must not be longer than the period of 5 months beginning with the permission date.

inform the parties to the appeal of the time limit for determining the appeal, and

publish that time limit in such manner as it considers appropriate for the purpose of bringing it to the attention of any other persons likely to be affected by the determination.

must be contained in an order made by the CMA;

must set out the reasons for the determination;

must be notified by the CMA to the parties to the appeal;

commercial information, the disclosure of which would, or might in the CMA’s opinion, significantly harm the legitimate business interests of an undertaking to which it relates, or

information relating to the private affairs of an individual, the disclosure of which would, or might in the CMA’s opinion, significantly harm the individual’s interests.

if a time is specified in (or is to be determined in accordance with) the order, within that time;

in any other case, within a reasonable time.

the Oil and Gas Authority;

the Environment Agency;

the Scottish Environment Protection Agency;

Natural Resources Wales;

the Health and Safety Executive;

the Health and Safety Executive for Northern Ireland;

the CMA;

the Scottish Ministers;

the Welsh Ministers;

the Department for the Economy in Northern Ireland;

the Northern Ireland Environment Agency;

the Secretary of State;

any other person the economic regulator considers appropriate who has powers or duties conferred by or by virtue of primary legislation which the economic regulator considers relevant to the exercise of the economic regulator’s functions relating to the regulation of licensable activities.

any obligation of confidence owed by the person making the disclosure, or

any other restriction on the disclosure of information (however imposed).

an Act of Parliament,

an Act of the Scottish Parliament,

an Act or Measure of Senedd Cymru, or

Northern Ireland legislation.

the form and manner in which information is to be provided, and

the time within which it is to be provided.

any obligation of confidence owed by the licence holder making the disclosure, or

any other restriction on the disclosure of information (however imposed).

operating a site for the disposal of carbon dioxide by way of geological storage;

providing a service of transporting carbon dioxide by a licensable means of transportation;

activities ancillary to activities mentioned in paragraph (a) or (b).

requires the person on whom it is served to produce, at a time and place specified in the notice, to the economic regulator any documents which are specified or described in the notice and are in that person’s custody or under their control, or

requires that person, if they are carrying on a business, to provide to the economic regulator in the form and manner, and within the period, specified in the notice, the information specified or described in the notice.

on summary conviction in England and Wales, to a fine;

on summary conviction in Scotland or Northern Ireland, to a fine not exceeding the statutory maximum;

on conviction on indictment, to a fine.

any obligation of confidence owed by the person making the disclosure, or

any other restriction on the disclosure of information (however imposed).

the economic regulator is proposing to do anything for the purposes of, or in connection with, the carrying out of any function exercisable by it under or by virtue of this Part, and

it appears to the economic regulator that the proposal is important;

involve a major change in the activities carried on by the economic regulator;

have a significant impact on persons engaged in the capture, transportation or storage of carbon dioxide;

have a significant impact on persons engaged in commercial activities connected with the capture, transportation or storage of carbon dioxide;

have a significant impact on the general public in the United Kingdom or in a part of the United Kingdom;

have significant effects on the environment.

carry out and publish an assessment of the likely impact of implementing the proposal, or

publish a statement setting out its reasons for thinking that it is unnecessary for it to carry out an assessment.

include an assessment of the likely effects on the environment of implementing the proposal, and

relate to such other matters as the economic regulator considers appropriate.

it must provide an opportunity of making representations to the economic regulator about its proposal to members of the public and other persons who, in the economic regulator’s opinion, are likely to be affected to a significant extent by the proposal’s implementation,

the published assessment must be accompanied by a statement setting out how representations may be made, and

the economic regulator must not implement its proposal unless the period for making representations about the proposal has expired and it has considered all the representations that were made in that period.

to consult about a proposal to which this section applies, or

to give a person an opportunity of making representations about it,

a list of the assessments under this section carried out during the financial year to which the report relates, and

a summary of the decisions taken during that year in relation to proposals to which assessments carried out in that year or previous financial years relate.

the revocation of a licence;

the modification of the conditions of a licence;

the giving of any directions or consent in pursuance of a condition included in a licence by virtue of section 11(2)(a) or (c);

the determination of a question referred in pursuance of a condition included in a licence by virtue of section 11(2)(d);

the making of a final order, the making or confirmation of a provisional order or the revocation of a final order or of a provisional order which has been confirmed.

publish a notice stating the reasons for the decision in such manner as the decision maker considers appropriate for the purpose of bringing the matters to which the notice relates to the attention of persons likely to be interested, and

send a copy of the notice to the licence holder to whose licence, or to whom, the decision relates.

on summary conviction in England and Wales, to a fine;

on summary conviction in Scotland or Northern Ireland, to a fine not exceeding the statutory maximum;

on conviction on indictment, to a fine.

to have been committed with the consent or connivance of an officer of the body corporate, or

to be attributable to neglect on the part of an officer of the body corporate,

any director, manager, secretary or other similar officer of the body corporate, or

any person purporting to act in any such capacity.

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.

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.

the territorial sea adjacent to the United Kingdom, or

waters in a Gas Importation and Storage Zone (within the meaning given by section 1 of the Energy Act 2008).