Legislation – Energy Act 2023
Part 1
Licensing of carbon dioxide transport and storage
Chapter 1 Licensing of activities
1 Principal objectives and general duties of Secretary of State and economic regulator
2 Prohibition on unlicensed activities
3 Consultation on proposals for additional activities to become licensable
4 Territorial scope of prohibition
6 Revocation or withdrawal of exemption
Grant and conditions of 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
Appeal from decisions of the economic regulator
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
32 Enforcement of obligations of licence holders
33 Making of false statements etc
Criminal liability and procedure
34 Liability of officers of entities
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
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
46 Modification of conditions of licences
47 Modification under the Enterprise Act 2002
48 Power to make further modifications of insolvency legislation
49 Interpretation of Chapter 4
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
Part 2
Carbon dioxide capture, storage etc and hydrogen production, transport and storage
Chapter 1 Revenue support contracts
Provision of revenue support under certain 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
61 Designation of hydrogen transport counterparty
62 Direction to offer to contract with eligible hydrogen transport provider
63 Designation of hydrogen storage counterparty
64 Direction to offer to contract with eligible hydrogen storage provider
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
73 Power to appoint allocation bodies
74 Standard terms of revenue support 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
87 Modification of transfer schemes
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
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
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
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
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
Part 3
Licensing of hydrogen pipeline projects
130 Key definitions for Part 3
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
140 Conditions of gas transporter licences for conveyance of hydrogen
141 Secretary of State directions to the GEMA
Part 4
New technology
Chapter 1 Low-carbon heat schemes
146 Further provision about scheme regulations
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
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
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”)
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
176 Financial assistance for the ISOP
178 Principal objective and general duties of Secretary of State and GEMA under Part 5
179 Minor and consequential amendments
Part 6
Governance of gas and electricity industry codes
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
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
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
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
218 Alternative dispute resolution for consumer disputes
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
226 Regulations about heat network zones
Heat Network Zones Authority and zone coordinators
227 Heat Network Zones Authority
Identification, designation and review of zones
229 Identification, designation and review of zones
231 Requests for information in connection with section 229 or 230
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
238 Energy smart appliances and load control
Chapter 2 Energy smart appliances
240 Prohibitions and requirements: supplemental
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
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
259 Action to achieve energy savings or emissions reductions
261 Enforcement, penalties and offences
263 ESOS regulations: procedure etc
264 Directions to scheme administrators
265 Financial assistance to scheme administrators and participants
Part 12
Core fuel sector resilience
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
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
281 Offences under regulations
283 Liability of officers of entities
285 Guidance: criminal and civil sanctions
286 Guidance: Parliamentary scrutiny
287 Financial assistance for resilience and continuity purposes
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
293 Assessment of environmental effects etc
294 Regulations under section 293: consultation and procedure
295 Interpretation of Chapter 1
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
299 Charges in connection with abandonment of offshore installations
300 Model clauses of petroleum licences
301 Power of OGA to require information about change in control of licensee
Part 14
Civil nuclear sector
302 Application to the territorial sea of requirement for nuclear site licence
303 Decommissioning of nuclear sites etc
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”
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
319 Great British Nuclear’s objects
Financial assistance and directions etc
321 Secretary of State directions and guidance
Transfers and pension arrangements etc
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
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 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
Part 2Carbon dioxide capture, storage etc and hydrogen production, transport and storage
Chapter 1Revenue support contracts
General
90Electricity system operator and gas system planner licences: modifications
(1)
The Secretary of State may, for the purpose of facilitating or ensuring the effective performance of functions specified in subsection (3), modify—
(a)
the conditions of a licence under section 6(1)(da) of the Electricity Act 1989 (electricity system operator licence);
(b)
a document maintained in accordance with the conditions of such a licence, or an agreement that gives effect to a document so maintained.
(2)
The Secretary of State may, for the purpose of facilitating or ensuring the effective performance of functions specified in subsection (3), modify—
(a)
the conditions of a licence under section 7AA of the Gas Act 1986 (gas system planner licence);
(b)
a document maintained in accordance with the conditions of such a licence, or an agreement that gives effect to a document so maintained.
(3)
The functions referred to in subsections (1) and (2) are—
(a)
functions of hydrogen production allocation bodies, and
(b)
other functions under this Chapter which are related to such functions.
(4)
Modifications under subsections (1) and (2) may only make provision in relation to times when the person holding the licence is a hydrogen production allocation body.
(5)
The provision referred to in subsection (4) includes consequential or transitional provision in relation to times when it is no longer the case that the person holding the licence is a hydrogen production allocation body.
(6)
Provision included in a licence, or in a document or agreement relating to licences, by virtue of a power under this section may in particular—
(a)
include provision of any kind that may be included in revenue support regulations or regulations under section 73;
(b)
do any of the things authorised for licences of that type by—
(i)
section 7B(5)(a), (5ZA), (6) or (7) of the Gas Act 1986, or
(ii)
section 7(3), (4), (5) or (6A) of the Electricity Act 1989.
(7)
Before making a modification under this section the Secretary of State must consult—
(a)
the holder of any licence being modified;
(b)
the GEMA;
(c)
such other persons as the Secretary of State considers it appropriate to consult.
(8)
Subsection (7) may be satisfied by consultation before, as well as by consultation after, the passing of this Act.