(1) Subject to subsections (2), (4A) to (5A) and section 26 below, where the Authority is satisfied that a regulated person is contravening, or is likely to contravene, any relevant condition or requirement, it shall by a final order make such provision as is requisite for the purpose of securing compliance with that condition or requirement.
(2) Subject to subsections (4A) to (5A) below, where it appears to the Authority—
(a) that a regulated person is contravening, or is likely to contravene, any relevant condition or requirement; and
(b) that it is requisite that a provisional order be made,
it shall (instead of taking steps towards the making of a final order) by a provisional order make such provision as appears to him requisite for the purpose of securing compliance with that condition or requirement.
(3) In determining for the purposes of subsection (2)(b) above whether it is requisite that a provisional order be made, the Authority shall have regard, in particular—
(a) to the extent to which any person is likely to sustain loss or damage in consequence of anything which, in contravention of the relevant condition or requirement, is likely to be done, or omitted to be done, before a final order may be made; and
(b) to the fact that the effect of the provisions of this section and section 27 below is to exclude the availability of any remedy (apart from under those provisions or for negligence) in respect of any contravention of a relevant condition or requirement.
(8A) In paragraph (da) of the definition of “regulated person” in subsection (8), the reference to a responsible body for a central system is a reference to a person for the time being specified in a notice under section 184(1) of the Energy Act 2023 in relation to a designated central system (within the meaning of Part 6 of that Act).
(4) Subject to subsections (4A) to (5A) and section 26 below, the Authority shall confirm a provisional order, with or without modifications, if—
(a) it is satisfied that the regulated person to whom the order relates is contravening, or is likely to contravene, any relevant condition or requirement; and
(b) the provision made by the order (with any modifications) is requisite for the purpose of securing compliance with that condition or requirement.
(4A) Before making a final order or making or confirming a provisional order, the Authority shall consider whether it would be more appropriate to proceed under the Competition Act 1998.
(4B) The Authority shall not make a final order or make or confirm a provisional order if it considers that it would be more appropriate to proceed under the Competition Act 1998.
(5) the Authority shall not make a final order or make or confirm a provisional order in relation to a regulated person if it is satisfied—
(a) that the duties imposed on him by section 3A to 3C preclude the making or, as the case may be, the confirmation of the order;
(b) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(c) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(d) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(5A) The Authority is not required to make a final order or make or confirm a provisional order if it is satisfied—
(a) that the regulated person has agreed to take and is taking all such steps as it appears to the Authority for the time being to be appropriate for the regulated person to take for the purpose of securing or facilitating compliance with the condition or requirement in question; or
(b) that the contraventions were or the apprehended contraventions are of a trivial nature.
(6) Where the Authority decides that it would be more appropriate to proceed under the Competition Act 1998 or is satisfied as mentioned in subsections (5) or (5A) above, it shall—
(a) serve notice that it has so decided or is so satisfied on the regulated person; and
(b) publish the notice in such manner as it considers appropriate for the purpose of bringing the matters to which the notice relates to the attention of persons likely to be affected by them.
(7) A final or provisional order—
(a) shall require the regulated person to whom it relates (according to the circumstances of the case) to do, or not to do, such things as are specified in the order or are of a description so specified;
(b) shall take effect at such time, being the earliest practicable time, as is determined by or under the order; and
(c) may be revoked at any time by the Authority.
(8) In this Part—
“final order” means an order under this section other than a provisional order;
“provisional order” means an order under this section which, if not previously confirmed in accordance with subsection (4) above, will cease to have effect at the end of such period (not exceeding three months) as is determined by or under the order;
“regulated person” means a person who is one or more of the following—
a licence holder;
a distribution exemption holder;
a supply exemption holder;
an electricity undertaking which is a relevant producer or supplier;
a responsible body for a central system;
...
“relevant condition”, in relation to a regulated person, means any condition of any licence held by that person;
“relevant requirement”, in relation to a regulated person,
means any duty or other requirement imposed on that person under a provision specified in Schedule 6A as a relevant provision in respect of that person ...
...
(8A) In paragraph (da) of the definition of “regulated person” in subsection (8), the reference to a responsible body for a central system is a reference to a person for the time being specified in a notice under section 184(1) of the Energy Act 2023 in relation to a designated central system (within the meaning of Part 6 of that Act).
(9) In paragraph (a) of the definition of “relevant requirement” in subsection (8), the reference to a provision specified in Schedule 6A is to be treated as including a provision of the predecessor of the Electricity Regulation that was specified in that Schedule immediately before the coming into force of the Electricity and Gas (Internal Markets) Regulations 2020.
(1) Before he makes a final order or confirms a provisional order, the Director shall give notice—
(a) stating that he proposes to make or confirm the order and setting out its effect;
(b) setting out—
(i) the relevant condition or requirement for the purpose of securing compliance with which the order is to be made or confirmed;
(ii) the acts or omissions which, in his opinion, constitute or would constitute contraventions of that condition or requirement; and
(iii) the other facts which, in his opinion, justify the making or confirmation of the order; and
(c) specifying the period (not being less than 21 days from the date of publication of the notice) within which representations or objections with respect to the proposed order or proposed confirmation may be made,
and shall consider any representations or objections which are duly made and not withdrawn.
(2) A notice under subsection (1) above shall be given—
(a) by publishing the notice in such manner as the Director considers appropriate for the purpose of bringing the matters to which the notice relates to the attention of persons likely to be affected by them; and
(b) by serving a copy of the notice, and a copy of the proposed order or of the order proposed to be confirmed, on the regulated person to whom the order relates.
(3) The Director shall not make a final order with modifications, or confirm a provisional order with modifications, except—
(a) with the consent to the modifications of the regulated person to whom the order relates; or
(b) after complying with the requirements of subsection (4) below.
(4) The requirements mentioned in subsection (3) above are that the Director shall—
(a) serve on the regulated person to whom the order relates such notice as appears to him requisite of his proposal to make or confirm the order with modifications;
(b) in that notice specify the period (not being less than 21 days from the date of the service of the notice) within which representations or objections with respect to the proposed modifications may be made; and
(c) consider any representations or objections which are duly made and not withdrawn.
(5) As soon as practicable after making a final order or making or confirming a provisional order, the Director shall—
(a) serve a copy of the order on the regulated person to whom the order relates; and
(b) publish the order in such manner as he considers appropriate for the purpose of bringing it to the attention of persons likely to be affected by it.
(6) Before revoking a final order or a provisional order which has been confirmed, the Director shall give notice—
(a) stating that he proposes to revoke the order and setting out its effect; and
(b) specifying the period (not being less than 28 days from the date of publication of the notice) within which representations or objections with respect to the proposed revocation may be made,
and shall consider any representations or objections which are duly made and not withdrawn.
(7) If, after giving a notice under subsection (6) above, the Director decides not to revoke the order to which the notice relates, he shall give notice of his decision.
(8) A notice under subsection (6) or (7) above shall be given—
(a) by publishing the notice in such manner as the Director considers appropriate for the purpose of bringing the matters to which the notice relates to the attention of persons likely to be affected by them; and
(b) by serving a copy of the notice on the regulated person to whom the order relates.
(1) If the regulated person to whom a final or provisional order relates is aggrieved by the order and desires to question its validity on the ground—
(a) that its making or confirmation was not within the powers of section 25 above; or
(b) that any of the requirements of section 26 above have not been complied with in relation to it,
he may, within 42 days from the date of service on him of a copy of the order, make an application to the court under this section.
(2) On any such application the court may, if satisfied that the making or confirmation of the order was not within those powers or that the interests of the regulated person have been substantially prejudiced by a failure to comply with those requirements, quash the order or any provision of the order.
(3) Except as provided by this section, the validity of a final or provisional order shall not be questioned by any legal proceedings whatever.
(4) The obligation to comply with a final or provisional order shall be a duty owed to any person who may be affected by a contravention of the order.
(5) Where a duty is owed by virtue of subsection (4) above to any person, any breach of the duty which causes that person to sustain loss or damage shall be actionable at the suit or instance of that person.
(6) In any proceedings brought against a regulated person in pursuance of subsection (5) above, it shall be a defence for him to prove that he took all reasonable steps and exercised all due diligence to avoid contravening the order.
(7) Without prejudice to any right which any person may have by virtue of subsection (5) above to bring civil proceedings in respect of any contravention or apprehended contravention of a final or provisional order, compliance with any such order shall be enforceable by civil proceedings by the Director for an injunction or for interdict or for any other appropriate relief.
(8) In this section and section 28 below “the court” means the High Court in relation to England and Wales and the Court of Session in relation to Scotland.
(9) Subsections (1) to (3) do not apply in the case of a final or provisional order that relates to a relevant condition imposed by the exercise of the power in section 18(1) of the Energy Act 2010 (prevention of exploitation of electricity trading and transmission arrangements).
(10) For provision about appeals relating to such orders, see section 20 of the Energy Act 2010.
(1) Where the Authority is satisfied that a regulated person—
(a) has contravened or is contravening any relevant condition or requirement; or
(b) has failed or is failing to achieve any standard of performance prescribed under section 39 or 39A,
the Authority may, subject to section 27C, impose on the regulated person a penalty of such amount as is reasonable in all the circumstances of the case.
(2) Before imposing a penalty on a regulated person under subsection (1), the Authority shall consider whether it would be more appropriate to proceed under the Competition Act 1998.
(2A) The Authority shall not impose a penalty on a regulated person under subsection (1) if it considers that it would be more appropriate to proceed under the Competition Act 1998.
(3) Before imposing a penalty on a regulated person under subsection (1) the Authority shall give notice—
(a) stating that it proposes to impose a penalty and the amount of the penalty proposed to be imposed;
(b) setting out the relevant condition or requirement or the standard of performance in question;
(c) specifying the acts or omissions which, in the opinion of the Authority, constitute the contravention or failure in question and the other facts which, in the opinion of the Authority, justify the imposition of a penalty and the amount of the penalty proposed; and
(d) specifying the period (not being less than 21 days from the date of publication of the notice) within which representations or objections with respect to the proposed penalty may be made,
and shall consider any representations or objections which are duly made and not withdrawn.
(4) Before varying any proposal stated in a notice under subsection (3)(a) the Authority shall give notice—
(a) setting out the proposed variation and the reasons for it; and
(b) specifying the period (not being less than 21 days from the date of publication of the notice) within which representations or objections with respect to the proposed variation may be made,
and shall consider any representations or objections which are duly made and not withdrawn.
(5) As soon as practicable after imposing a penalty, the Authority shall give notice—
(a) stating that it has imposed a penalty on the regulated person and its amount;
(b) setting out the relevant condition or requirement or the standard of performance in question;
(c) specifying the acts or omissions which, in the opinion of the Authority, constitute the contravention or failure in question and the other facts which, in the opinion of the Authority, justify the imposition of the penalty and its amount; and
(d) specifying a date, no earlier than the end of the period of 42 days from the date of service of the notice on the regulated person, by which the penalty is required to be paid.
(6) The regulated person may, within 21 days of the date of service on him of a notice under subsection (5), make an application to the Authority for it to specify different dates by which different portions of the penalty are to be paid.
(7) Any notice required to be given under this section shall be given—
(a) by publishing the notice in such manner as the Authority considers appropriate for the purpose of bringing the matters to which the notice relates to the attention of persons likely to be affected by them;
(b) by serving a copy of the notice on the regulated person; ...
(c) by serving a copy of the notice on Citizens Advice; and
(d) by serving a copy of the notice on Consumer Scotland.
(8A) This section is subject to section 27O (maximum amount of penalty or compensation that may be imposed).
(10) Any sums received by the Authority by way of penalty under this section shall be paid into the Consolidated Fund.
(11) The power of the Authority under subsection (1) is not exercisable in respect of any contravention or failure before the commencement of section 59 of the Utilities Act 2000.
27B Statement of policy with respect to penalties.
(1) The Authority shall prepare and publish a statement of policy with respect to the imposition of penalties and the determination of their amount.
(2) In deciding whether to impose a penalty, and in determining the amount of any penalty, in respect of a contravention or failure the Authority shall have regard to its statement of policy most recently published at the time when the contravention or failure occurred.
(3) The Authority may revise its statement of policy and where it does so shall publish the revised statement.
(4) Publication under this section shall be in such manner as the Authority considers appropriate for the purpose of bringing the matters contained in the statement of policy to the attention of persons likely to be affected by them.
(5) The Authority shall undertake such consultation as it considers appropriate when preparing or revising its statement of policy.
27C Time limits on the imposition of financial penalties.
(1) Where no final or provisional order has been made in relation to a contravention or failure, the Authority may not impose a penalty in respect of the contravention or failure later than the end of the period of five years from the time of the contravention or failure, unless before the end of that period—
(a) the notice under section 27A(3) relating to the penalty is served on the regulated person under section 27A(7), or
(b) a notice relating to the contravention or failure is served on the regulated person under section 28(2).
(2) Where a final or provisional order has been made in relation to a contravention or failure, the Authority may not impose a penalty in respect of the contravention or failure unless the notice relating to the penalty under section 27A(3) was served on the regulated person under section 27A(7)—
(a) within three months from the confirmation of the provisional order or the making of the final order, or
(b) where the provisional order is not confirmed, within six months from the making of the provisional order.
(1) If the whole or any part of a penalty is not paid by the date by which it is required to be paid, the unpaid balance from time to time shall carry interest at the rate for the time being specified in section 17 of the Judgments Act 1838.
(2) If an application is made under subsection (6) of section 27A in relation to a penalty, the penalty is not required to be paid until the application has been determined.
(3) If the Authority grants an application under that subsection in relation to a penalty but any portion of the penalty is not paid by the date specified in relation to it by the Authority under that subsection, the Authority may where it considers it appropriate require so much of the penalty as has not already been paid to be paid immediately.
(1) If the regulated person on whom a penalty is imposed is aggrieved by—
(a) the imposition of the penalty;
(b) the amount of the penalty; or
(c) the date by which the penalty is required to be paid, or the different dates by which different portions of the penalty are required to be paid,
the regulated person may make an application to the court under this section.
(2) An application under subsection (1) must be made—
(a) within 42 days from the date of service on the regulated person of a notice under section 27A(5), or
(b) where the application relates to a decision of the Authority on an application by the regulated person under section 27A(6), within 42 days from the date the regulated person is notified of the decision.
(3) On any such application, where the court considers it appropriate to do so in all the circumstances of the case and is satisfied of one or more of the grounds falling within subsection (4), the court—
(a) may quash the penalty;
(b) may substitute a penalty of such lesser amount as the court considers appropriate in all the circumstances of the case; or
(c) in the case of an application under subsection (1)(c), may substitute for the date or dates imposed by the Authority an alternative date or dates.
(4) The grounds falling within this subsection are—
(a) that the imposition of the penalty was not within the power of the Authority under section 27A;
(b) that any of the requirements of subsections (3) to (5) or (7) of section 27A have not been complied with in relation to the imposition of the penalty and the interests of the regulated person have been substantially prejudiced by the non-compliance; or
(c) that it was unreasonable of the Authority to require the penalty imposed, or any portion of it, to be paid by the date or dates by which it was required to be paid.
(5) If an application is made under this section in relation to a penalty, the penalty is not required to be paid until the application has been determined.
(6) Where the court substitutes a penalty of a lesser amount it may require the payment of interest on the substituted penalty at such rate, and from such date, as it considers just and equitable.
(7) Where the court specifies as a date by which the penalty, or a portion of the penalty, is to be paid a date before the determination of the application under this section it may require the payment of interest on the penalty, or portion, from that date at such rate as it considers just and equitable.
(8) Except as provided by this section, the validity of a penalty shall not be questioned by any legal proceedings whatever.
(9) In this section “the court” means—
(a) in relation to England and Wales, the High Court; and
(b) in relation to Scotland, the Court of Session.
(10) This section does not apply in the case of a penalty that relates to a relevant condition imposed by the exercise of the power in section 18(1) of the Energy Act 2010 (prevention of exploitation of electricity trading and transmission arrangements).
(11) For provision about appeals relating to such penalties, see section 21 of the Energy Act 2010.
Where a penalty imposed under section 27A(1), or any portion of it, has not been paid by the date on which it is required to be paid and—
(a) no application relating to the penalty has been made under section 27E during the period within which such an application can be made, or
(b) an application has been made under that section and determined,
the Authority may recover from the regulated person, as a civil debt due to it, any of the penalty and any interest which has not been paid.
(1) This section applies where the Authority is satisfied that—
(a) a regulated person has contravened, or is contravening, any relevant condition or requirement, and
(b) as a result of the contravention, one or more consumers have suffered loss or damage or been caused inconvenience.
(2) The Authority may make an order (a “consumer redress order”) requiring the regulated person to do such things as appear to the Authority necessary for the purposes of—
(a) remedying the consequences of the contravention, or
(b) preventing a contravention of the same or a similar kind from being repeated.
(3) A consumer redress order must specify the following—
(a) the regulated person to whom the order applies;
(b) the contravention in respect of which the order is made;
(c) the affected consumers, or a description of such consumers;
(d) the requirements imposed by the order;
(e) the date by which the regulated person must comply with such requirements.
(4) As soon as practicable after making a consumer redress order, the Authority must—
(a) serve a copy of the order on the regulated person to whom the order applies, and
(b) either—
(i) serve a copy of the order on each affected consumer, or
(ii) publish the order in such manner as the Authority considers appropriate for the purpose of bringing it to the attention of affected consumers.
(5) The date specified in a consumer redress order under subsection (3)(e) may not be earlier than the end of the period of 7 days from the date of the service of a copy of the order on the regulated person.
(6) Different dates may be specified under subsection (3)(e) in relation to different requirements imposed by the order.
(7) This section is subject to sections 27H to 27O.
(8) In this section and in sections 27H to 27O—
“affected consumers”, in relation to a consumer redress order (or proposed order), are those consumers that the Authority is satisfied have suffered loss or damage, or been caused inconvenience, as a result of the contravention in respect of which the order is (or would be) made;
“consumers” means consumers in relation to electricity conveyed by distribution systems or transmission systems;
“consumer redress order” means an order under subsection (2).
27H Remedial action under a consumer redress order
(1) The things mentioned in section 27G(2) that a regulated person may be required to do under a consumer redress order (“the required remedial action”) include, in particular—
(a) paying an amount to each affected consumer by way of compensation for the loss or damage suffered, or for the inconvenience caused, as a result of the contravention;
(b) preparing and distributing a written statement setting out the contravention and its consequences;
(c) terminating or varying any contracts entered into between the regulated person and affected consumers.
(2) Where the required remedial action includes the payment of compensation, the order must specify—
(a) the amount of compensation to be paid, and
(b) the affected consumers, or a description of such consumers, to whom it is to be paid.
(3) Where the required remedial action includes the preparation and distribution of a statement, the order may specify the information to be contained in the statement and the form and manner in which it is to be distributed.
(4) The manner so specified may in particular include—
(a) sending a copy of the statement to each affected consumer;
(b) publishing the statement in such manner as the Authority considers appropriate for the purpose of bringing the statement to the attention of those consumers.
(5) Where the required remedial action includes the termination or variation of a contract with an affected consumer—
(a) the order may specify the terms on which the contract is to be terminated or the way in which it is to be varied,
(b) the requirement has effect only if, and to the extent that, the affected consumer consents to the termination of the contract on those terms or to its variation in that way, and
(c) the order may specify the steps to be taken by the regulated person for the purpose of enabling the affected consumer to give such consent.
27I Other procedural requirements in relation to consumer redress orders
(1) Before making a consumer redress order the Authority must give notice stating that it proposes to make the order.
(2) A notice under subsection (1) must specify—
(a) the regulated person to whom the order will apply,
(b) the contravention in respect of which the order is to be made,
(c) the affected consumers, or a description of such consumers,
(d) the requirements to be imposed by the order and the period within which such requirements are to be complied with, and
(e) the time (not being less than 21 days from the relevant date) by which representations or objections with respect to the proposed order may be made,
and the Authority must consider any representations or objections which are duly made and not withdrawn.
(3) Before varying any proposal stated in a notice under subsection (1) the Authority must give notice specifying—
(a) the proposed variation and the reasons for it, and
(b) the time (not being less than 21 days from the relevant date) by which representations or objections with respect to the proposed variation may be made,
and the Authority must consider any representations or objections which are duly made and not withdrawn.
(4) Before revoking a consumer redress order the Authority must give notice—
(a) stating that it proposes to revoke the order and the reasons for doing so, and
(b) specifying the time (not being less than 21 days from the relevant date) within which representations or objections to the proposed revocation may be made,
and the Authority must consider any representations or objections which are duly made and not withdrawn.
(5) A notice required to be given under this section is to be given—
(a) by serving a copy of the notice on the regulated person, and
(b) either—
(i) by serving a copy of the notice on each affected consumer, or
(ii) by publishing the notice in such manner as the Authority considers appropriate for the purpose of bringing the matters to which the notice relates to the attention of affected consumers.
(6) The “relevant date”, in relation to a notice under this section, is—
(a) in a case where the notice is published in accordance with subsection (5)(b)(ii), the date on which it is published;
(b) in any other case, the latest date on which a copy of the notice is served in accordance with subsection (5)(a) and (b)(i).
27J Statement of policy with respect to consumer redress orders
(1) The Authority must prepare and publish a statement of policy with respect to—
(a) the making of consumer redress orders, and
(b) the determination of the requirements to be imposed by such orders (including, in particular, the considerations the Authority will have regard to in determining such requirements).
(2) The Authority must have regard to its current statement of policy—
(a) in deciding whether to make a consumer redress order in respect of a contravention, and
(b) in determining the requirements to be imposed by any such order.
(3) The Authority may revise its statement of policy and, where it does so, must publish the revised statement.
(4) Publication under this section is to be in such manner as the Authority considers appropriate for the purpose of bringing the matters contained in the statement of policy to the attention of persons likely to be affected by them.
(5) The Authority must consult such persons as it considers appropriate when preparing or revising its statement of policy.
27K Time limits for making consumer redress orders
(1) Where no final or provisional order has been made in relation to a contravention, the Authority may not give a consumer redress order in respect of the contravention later than the end of the period of 5 years from the time of the contravention.
(2) Subsection (1) does not apply if before the end of that period—
(a) the notice under section 27I(1) relating to the order is served on the regulated person, or
(b) a notice relating to the contravention is served on the regulated person under section 28(2).
(3) Where a final or provisional order has been made in relation to a contravention, the Authority may give a consumer redress order in respect of the contravention only if the notice relating to the consumer redress order under section 27I(1) is served on the regulated person—
(a) within 3 months from the confirmation of the provisional order or the making of the final order, or
(b) where the provisional order is not confirmed, within 6 months from the making of the provisional order.
(1) Compliance with a consumer redress order is enforceable by civil proceedings by the Authority—
(a) for an injunction or interdict,
(b) for specific performance of a statutory duty under section 45 of the Court of Session Act 1988, or
(c) for any other appropriate remedy or relief.
(2) Proceedings under subsection (1) are to be brought—
(a) in England and Wales, in the High Court, or
(b) in Scotland, in the Court of Session.
(3) The obligation of a regulated person to comply with a consumer redress order is a duty owed to any person who may be affected by a contravention of the order.
(4) Without limiting the Authority's right to bring civil proceedings under subsection (1), a duty owed to any person (“P”) by virtue of subsection (3) may be enforced by civil proceedings by P for any appropriate remedy or relief.
(5) For the purposes of subsection (4), the duty owed to P may in particular be enforced by P as if it were contained in a contract between P and the regulated person who owes the duty.
(1) A regulated person in respect of whom a consumer redress order is made may make an application to the court under this section if the person is aggrieved by—
(a) the making of the order, or
(b) any requirement imposed by the order.
(2) An application under subsection (1) must be made within 42 days from the date of service on the regulated person of a copy of the order under section 27G(4)(a).
(3) On an application under subsection (1) the court may—
(a) quash the order or any provision of the order, or
(b) vary any such provision in such manner as the court considers appropriate.
(4) The court may exercise the powers under subsection (3) only if it considers it appropriate to do so in all the circumstances of the case and is satisfied of one or more of the following grounds—
(a) that the making of the order was not within the power of the Authority under section 27G;
(b) that any of the requirements under sections 27G(4) and 27I have not been complied with in relation to the making of the order and the interests of the regulated person have been substantially prejudiced by the non-compliance;
(c) that it was unreasonable of the Authority to require something to be done under the order (whether at all or in accordance with the provisions of the order).
(5) If an application is made under this section in relation to a consumer redress order, a requirement imposed by the order does not need to be carried out in accordance with the order until the application has been determined.
(6) Where the court substitutes a lesser amount of compensation for an amount required by the Authority in a consumer redress order, it may require the payment of interest on the substituted amount at such rate, and from such date, as it considers just and equitable.
(7) Where the court specifies as a date by which any compensation under a consumer redress order is to be paid a date before the determination of the application under this section, it may require the payment of interest on the amount from that date at such rate as it considers just and equitable.
(8) Except as provided by this section, the validity of a consumer redress order is not to be questioned by any legal proceedings whatever.
(9) In this section “the court” means—
(a) in relation to England and Wales, the High Court;
(b) in relation to Scotland, the Court of Session.
(1) If—
(a) compensation is required to be paid under a consumer redress order, and
(b) it is not paid by the date by which it is required to be paid in accordance with the order,
the unpaid balance from time to time carries interest at the rate for the time being specified in section 17 of the Judgments Act 1838.
(2) The Authority may not make a consumer redress order where it is satisfied that the most appropriate way of proceeding is under the Competition Act 1998.
(3) The Authority's power to make a consumer redress order as a result of a contravention of a relevant condition or requirement is not to be taken as limiting the Authority's power to impose a penalty under section 27A in relation to the same contravention (whether instead of, or in addition to, making a consumer redress order).
(4) The power of the Authority to make a consumer redress order is not exercisable in respect of any contravention before the coming into force of Schedule 14 to the Energy Act 2013.
(1) The maximum amount of penalty that may be imposed on a regulated person in respect of a contravention may not exceed 10 per cent of the person's turnover.
(2) The maximum amount of compensation that a regulated person may be required to pay in respect of a contravention may not exceed 10 per cent of the person's turnover.
(3) Subsections (1) and (2) are subject to subsection (4) if, in respect of a contravention, both a penalty is imposed and compensation is required to be paid.
(4) The maximum amount in total of the penalty and compensation combined in respect of the contravention may not exceed 10 per cent of the turnover of the regulated person.
(5) The Secretary of State may by order provide for how a person's turnover is to be determined for the purposes of this section.
(6) An order under subsection (5) may make different provision for penalties and compensation.
(7) An order under subsection (5) shall not be made unless a draft of the instrument containing it has been laid before and approved by a resolution of each House of Parliament.
(8) In this section—
“compensation” means compensation that a regulated person is required to pay by a consumer redress order;
“penalty” means a penalty imposed on a regulated person under section 27A.
(1) Where it appears to the Authority that a regulated person —
(a) may be contravening, or may have contravened, any relevant condition or requirement; or
(b) may be failing, or may have failed, to achieve any standard of performance prescribed under section 39 or 39A,
the Authority may, for any purpose connected with such of its functions under section 25 or 27A to 27O as are exercisable in relation to that matter, serve a notice under subsection (2) below on any person.
(2) A notice under this subsection is a notice signed by the Director and—
(a) requiring the person on whom it is served to produce, at a time and place specified in the notice, to the Director or to any person appointed by the Director for the purpose, any documents which are specified or described in the notice and are in that person’s custody or under his control; or
(b) requiring that person, if he is carrying on a business, to furnish, at a time and place and in the form and manner specified in the notice, to the Director such information as may be specified or described in the notice.
(2A) Where a licence has been or is to be revoked or suspended, or has expired or is about to expire by effluxion of time, and it appears to the Authority, having regard to the duties imposed by section 3A, 3B or 3C, to be requisite or expedient to do so for any purpose connected with the revocation, suspension or expiry, the Authority may, with the consent of the Secretary of State, by notice in writing—
(a) require the licence holder to produce, at a time and place specified in the notice, to the Authority, or to any person so specified, any records which are specified or described in the notice and are in the licence holder’s custody or under his control; or
(b) require the licence holder to furnish to the Authority, or to any person specified in the notice, such information as may be specified or described in the notice, and specify the time, the manner and the form in which any such information is to be furnished.
(3) No person shall be required under this section to produce any documents or records which he could not be compelled to produce in civil proceedings in the court or, in complying with any requirement for the furnishing of information, to give any information which he could not be compelled to give in evidence in any such proceedings.
(4) A person who without reasonable excuse fails to do anything required of him by notice under subsection (2) or (2A) above shall be liable on summary conviction to a fine not exceeding level 5 on the standard scale.
(5) A person who intentionally alters, suppresses or destroys any document or record which he has been required by any notice under subsection (2) or (2A) above to produce shall be liable—
(a) on summary conviction, to a fine not exceeding the statutory maximum;
(b) on conviction on indictment, to a fine.
(6) If a person makes default in complying with a notice under subsection (2) or (2A) above, the court may, on the application of the Director, make such order as the court thinks fit for requiring the default to be made good; and any such order may provide that all the costs or expenses of and incidental to the application shall be borne by the person in default or by any officers of a company or other association who are responsible for its default.
(1) The Secretary of State may make such regulations as he thinks fit for the purpose of—
(a) securing that supplies of electricity are regular and efficient;
(b) protecting the public from dangers arising from the generation, transmission, distribution or supply of electricity, from the use of electricity interconnectors, from the use of electricity supplied or from the installation, maintenance or use of any electric line or electrical plant; and
(c) without prejudice to the generality of paragraph (b) above, eliminating or reducing the risks of personal injury, or damage to property or interference with its use, arising as mentioned in that paragraph.
(1A) Regulations under this section may include provision for securing the purposes mentioned in subsection (1) in relation to the territorial sea adjacent to Great Britain or any Renewable Energy Zone.
(2) Without prejudice to the generality of subsection (1) above, regulations under this section may—
(a) prohibit the distribution or transmission of electricity except by means of a system approved by the Secretary of State;
(b) make provision requiring notice in the prescribed form to be given to the Secretary of State, in such cases as may be specified in the regulations, of accidents and of failures in the distribution or transmission of electricity or in the use of electricity interconnectors;
(c) make provision as to the keeping, by persons authorised by a licence or exemption to distribute or participate in the transmission of electricity or to participate in the operation of an electricity interconnector, of maps, plans and sections and as to their production (on payment, if so required, of a reasonable fee) for inspection or copying;
(d) make provision for relieving electricity distributors from any duty under section 16 or authorising them to disconnect any premises or distribution system in such cases as may be prescribed;
(e) make provision requiring compliance with notices given by the Secretary of State specifying action to be taken in relation to any electric line or electrical plant, or any electrical appliance under the control of a consumer, for the purpose of—
(i) preventing or ending a breach of regulations under this section; or
(ii) eliminating or reducing a risk of personal injury or damage to property or interference with its use;
(f) provide for particular requirements of the regulations to be deemed to be complied with in the case of any electric line or electrical plant complying with specified standards or requirements;
(g) provide for the granting of exemptions from any requirement of the regulations for such periods as may be determined by or under the regulations.
(3) Regulations under this section may provide that any person—
(a) who contravenes any specified provision of the regulations; or
(b) who does so in specified circumstances,
shall be liable on summary conviction to a fine not exceeding level 5 on the standard scale; but nothing in this subsection shall affect any liability of any such person to pay compensation in respect of any damage or injury which may have been caused by the contravention.
(4) No proceedings shall be instituted in England and Wales in respect of an offence under this section except by or on behalf of the Secretary of State or the Director of Public Prosecutions.
(1) The Secretary of State may appoint competent and impartial persons to be electrical inspectors under this Part.
(2) The duties of an electrical inspector under this Part shall be as follows—
(a) to inspect and test, periodically and in special cases, electric lines and electrical plant belonging to persons authorised by a licence or exemption to generate, distribute or participate in the transmission of electricity or to participate in the operation of electricity interconnectors;
(b) to examine, periodically and in special cases, the generation, transmission, distribution or supply of electricity by such persons;
(c) to inspect and test, if and when required by any consumer, any such lines and plant on the consumer’s premises, for the purpose of determining whether any requirement imposed by or under this Part in respect of the lines or plant or the conveyance of electricity through them has been complied with; and
(d) such other duties as may be imposed by regulations under this section or as the Secretary of State may determine.
(3) The Secretary of State may by regulations—
(a) prescribe the manner in which and the times at which any duties are to be performed by electrical inspectors;
(b) require persons authorised by a licence or exemption to carry on licensable activities—
(i) to furnish electrical inspectors with records or other information; and
(ii) to allow such inspectors access to premises and the use of electrical plant and other facilities;
(c) make provision for relieving electricity distributors from any duty under section 16 or authorising them to disconnect any premises or distribution system in such cases as may be prescribed; and
(d) prescribe the amount of the fees which are to be payable to such inspectors.
(3A) The regulations that may be made under this section include regulations—
(a) imposing duties on electrical inspectors in relation to anything in the territorial sea adjacent to Great Britain or a Renewable Energy Zone; or
(b) making any other provision authorised by this section in relation to activities carried on there.
(4) Any fees received by electrical inspectors shall be paid to the Secretary of State; and any sums received by him under this subsection shall be paid into the Consolidated Fund.
(1) The relevant minister may make a renewables obligation order.
(2) “The relevant minister” means—
(a) in the case of Scotland, the Scottish Ministers,
(b) in any other case, the Secretary of State.
(3) In subsection (2) “Scotland” includes—
(a) so much of the internal waters and territorial sea of the United Kingdom as are adjacent to Scotland, and
(b) a Renewable Energy Zone, or any part of such a Zone, which is designated by order under section 84(5) of the Energy Act 2004 (areas in relation to which Scottish Ministers have functions).
(4) A renewables obligation order is an order which imposes the renewables obligation on each electricity supplier falling within a specified description (a “designated electricity supplier”).
(5) The descriptions of electricity supplier upon which a renewables obligation order may impose the renewables obligation are those supplying electricity to customers in the relevant part of Great Britain, excluding such categories of supplier (if any) as are specified.
(6) The renewables obligation is that the designated electricity supplier must, by each specified day, have produced to the Authority the required number of renewables obligation certificates in respect of the amount of electricity supplied by it during a specified period to customers in the relevant part of Great Britain.
(7) Subsection (6) is subject to sections 32A to 32M.
32A Further provision about the renewables obligation
(1) A renewables obligation order may make provision generally in relation to the renewables obligation.
(2) A renewables obligation order may, in particular, specify—
(a) how the number of renewables obligation certificates required to be produced by an electricity supplier in respect of the amount of electricity supplied by it to customers in the relevant part of Great Britain during a specified period is to be calculated;
(b) different obligations for successive periods of time;
(c) that renewables obligation certificates issued in respect of electricity generated—
(i) using specified descriptions of renewable sources,
(ii) by specified descriptions of generating stations,
(iii) in specified ways, or
(iv) in other specified cases or circumstances,
are to count towards discharging an electricity supplier's obligation only up to a specified number, or a specified proportion, of the certificates required to be produced to discharge the obligation;
(d) that a specified number, or a specified proportion, of the renewables obligation certificates produced by an electricity supplier when discharging its renewables obligation must be certificates in respect of electricity generated—
(i) using specified descriptions of renewable sources,
(ii) by specified descriptions of generating station,
(iii) in specified ways, or
(iv) in other specified cases or circumstances;
(e) how the amount of electricity supplied by an electricity supplier to customers in the relevant part of Great Britain during a specified period is to be calculated;
(f) that specified information, or information of a specified nature, is to be given to the Authority;
(g) the form in which such information is to be given and the time by which it is to be given.
(3) A renewables obligation certificate may count once only towards the discharge of the renewables obligation.
(4) Except as provided by a renewables obligation order, a renewables obligation certificate counts towards discharging the renewables obligation regardless of whether the order under which it is issued is made by the Secretary of State or the Scottish Ministers.
(5) A renewables obligation order may specify that the only renewables obligation certificates which count towards discharging the renewables obligation are certificates which are issued—
(a) in respect of electricity supplied to customers in the relevant part of Great Britain, or
(b) in respect of electricity used in a permitted way (within the meaning of section 32B(9) and (10)) in that part of Great Britain.
(6) A renewables obligation order may, in relation to any specified period (“the current period”)—
(a) provide that renewables obligation certificates in respect of electricity supplied in a later period may, when available, be counted towards discharging the renewables obligation for the current period;
(b) provide that renewables obligation certificates in respect of electricity supplied in the current period may, in a later period, be counted towards discharging the renewables obligation for that period;
(c) specify how much later the later period referred to in paragraph (a) or (b) may be;
(d) specify a maximum proportion of the renewables obligation for any period which may be discharged as mentioned in paragraph (a) or (b);
(e) specify a maximum proportion, or maximum number of, the renewables obligation certificates issued in respect of electricity supplied in any period which may be counted towards discharging the renewables obligation for a different period.
(7) For the purposes of subsection (6) a certificate which certifies that electricity has been used in a permitted way (within the meaning of section 32B(9) and (10)) in a particular period is to be treated as if it were a certificate which certifies that electricity has been supplied in that period.
(1) A renewables obligation order may provide for the Authority to issue from time to time, in accordance with such criteria (if any) as are specified in the order, a certificate (“a renewables obligation certificate”) to—
(a) the operator of a generating station,
(b) an electricity supplier or a Northern Ireland supplier, or
(c) if the order so provides, a person of any other description specified in the order.
(2) A renewables obligation certificate is to certify—
(a) the matters within subsection (3) or (4), or
(b) if the order provides that a certificate may certify the matters within subsection (5), (6), (7) or (8), the matters within that subsection.
(3) The matters within this subsection are—
(a) that the generating station, or, in the case of a certificate issued otherwise than to the operator of a generating station, a generating station specified in the certificate, has generated from renewable sources the amount of electricity stated in the certificate, and
(b) that it has been supplied by an electricity supplier to customers in Great Britain (or the part of Great Britain stated in the certificate).
(4) The matters within this subsection are—
(a) that the generating station, or, in the case of a certificate issued otherwise than to the operator of a generating station, a generating station specified in the certificate, has generated from renewable sources the amount of electricity stated in the certificate,
(b) that the generating station in question is not a generating station mentioned in Article 54(1) of the Energy (Northern Ireland) Order 2003, and
(c) that the electricity has been supplied by a Northern Ireland supplier to customers in Northern Ireland.
(5) The matters within this subsection are—
(a) that two or more generating stations have, between them, generated from renewable sources the amount of electricity stated in the certificate, and
(b) that it has been supplied by an electricity supplier to customers in Great Britain (or the part of Great Britain stated in the certificate).
(6) The matters within this subsection are—
(a) that two or more generating stations have, between them, generated from renewable sources the amount of electricity stated in the certificate,
(b) that none of them is a generating station mentioned in Article 54(1) of the Energy (Northern Ireland) Order 2003, and
(c) that the electricity has been supplied by a Northern Ireland supplier to customers in Northern Ireland.
(7) The matters within this subsection are—
(a) that the generating station, or, in the case of a certificate issued otherwise than to the operator of a generating station, a generating station specified in the certificate, has generated from renewable sources the amount of electricity stated in the certificate, and
(b) that the electricity has been used in a permitted way.
(8) The matters within this subsection are—
(a) that two or more generating stations have, between them, generated from renewable sources the amount of electricity stated in the certificate, and
(b) that the electricity has been used in a permitted way.
(9) For the purposes of subsections (7) and (8), electricity generated by a generating station, or generating stations, of any description is used in a permitted way if—
(a) it is used in one of the ways mentioned in subsection (10), and
(b) that way is specified in the order as a permitted way—
(i) in relation to all generating stations, or
(ii) in relation to generating stations of that description.
(10) Those ways are—
(a) being consumed by the operator of the generating station or generating stations by which it was generated;
(b) being supplied to customers in Great Britain through a private wire network;
(c) being provided to a distribution system or a transmission system in circumstances in which its supply to customers cannot be demonstrated;
(d) being used, as respects part, as mentioned in one of paragraph (a), (b) or (c) and as respects the remainder—
(i) as mentioned in one of the other paragraphs, or
(ii) as respects part, as mentioned in one of the other paragraphs and as respects the remainder as mentioned in the other;
(e) being used, as respects part, as mentioned in paragraph (a), (b), (c) or (d) and as respects the remainder by being supplied by an electricity supplier to customers in Great Britain or by a Northern Ireland supplier to customers in Northern Ireland, or both.
(11) For the purposes of subsection (10)(b) electricity is supplied through a private wire network if it is conveyed to premises by a system which is used for conveying electricity from a generating station in circumstances where—
(a) the operator of the generating station is exempt from section 4(1)(c) and does not hold a supply licence, and
(b) the electricity is supplied to one or more customers—
(i) by the operator directly, or
(ii) by a person to whom the operator supplies the electricity, being a person who is exempt from section 4(1)(c) and does not hold a supply licence.
(12) In this section “generating station”—
(a) in the case of an order made by the Scottish Ministers, means a generating station which is situated in Scotland;
(b) in the case of an order made by the Secretary of State, means a generating station which is not situated in Scotland.
(13) For this purpose “Scotland” is to be construed in accordance with section 32(3).
(1) A renewables obligation order may provide—
(a) that no renewables obligation certificates are to be issued in respect of electricity generated in specified cases or circumstances, or
(b) that renewables obligation certificates are to be issued in respect of a proportion only of the electricity generated in specified cases or circumstances.
(2) In particular, provision made by virtue of subsection (1) may specify—
(a) electricity generated using specified descriptions of renewable sources,
(b) electricity generated by specified descriptions of generating station, or
(c) electricity generated in specified ways.
(3) Provision made by virtue of subsection (1)(b) may include—
(a) provision about how the proportion is to be determined;
(b) provision about what, subject to such exceptions as may be specified, constitutes sufficient evidence of any matter required to be established for the purpose of determining that proportion;
(c) provision authorising the Authority, in specified circumstances, to require an operator of a generating station to arrange—
(i) for samples of any fuel used (or to be used) in the generating station, or of any gas or other substance produced as a result of the use of such fuel, to be taken by a person, and analysed in a manner, approved by the Authority, and
(ii) for the results of that analysis to be made available to the Authority.
(4) In the case of electricity generated by a generating station fuelled or driven—
(a) partly by renewable sources, and
(b) partly by fossil fuel (other than waste which constitutes a renewable source),
only the proportion attributable to the renewable sources is to be regarded as generated from such sources.
(5) A renewables obligation order may specify—
(a) how the proportion referred to in subsection (4) is to be determined, and
(b) the consequences for the issuing of renewables obligation certificates if a generating station of the type mentioned in that subsection uses more than a specified proportion of fossil fuel during a specified period.
(6) Those consequences may include the consequence that no certificates are to be issued in respect of any of the electricity generated by that generating station during that period.
(7) A renewables obligation order may specify circumstances in which the Authority may revoke a renewables obligation certificate before its production for the purposes of the renewables obligation.
(8) A renewables obligation order must—
(a) prohibit the issue of a renewables obligation certificate certifying matters within section 32B(4) or (6) where the Northern Ireland authority has notified the Authority that it is not satisfied that the electricity in question has been supplied to customers in Northern Ireland, and
(b) require the revocation of such a certificate if the Northern Ireland authority so notifies the Authority at a time between the issue of the certificate and its production for the purposes of the renewables obligation.
(9) References in section 32B and this section to the supply of electricity to customers in Northern Ireland are to be construed in accordance with the definition of “supply” in Article 3 of the Electricity (Northern Ireland) Order 1992.
32D Amounts of electricity specified in certificates
(1) A renewables obligation order may specify the amount of electricity to be stated in each renewables obligation certificate, and different amounts may be specified in relation to different cases or circumstances.
(2) In particular, different amounts may be specified in relation to—
(a) electricity generated from different renewable sources;
(b) electricity generated by different descriptions of generating station;
(c) electricity generated in different ways.
(3) In this section “banding provision” means provision made in a renewables obligation order by virtue of subsection (1).
(4) Before making any banding provision, the relevant minister must have regard to the following matters—
(a) the costs (including capital costs) associated with generating electricity from each of the renewable sources or with transmitting or distributing electricity so generated;
(b) the income of operators of generating stations in respect of electricity generated from each of those sources or associated with the generation of such electricity;
(c) the effect of paragraph 19 of Schedule 6 to the Finance Act 2000 (c. 17) (supplies of electricity from renewable sources exempted from climate change levy) in relation to electricity generated from each of those sources;
(d) the desirability of securing the long term growth, and economic viability, of the industries associated with the generation of electricity from renewable sources;
(e) the likely effect of the proposed banding provision on the number of renewables obligation certificates issued by the Authority, and the impact this will have on the market for such certificates and on consumers;
(f) the potential contribution of electricity generated from each renewable source to the attainment of any target which relates to the generation of electricity or the production of energy and is imposed by, or results from or arises out of, an EU obligation.
(5) For the purposes of subsection (4)(a), the costs associated with generating electricity from a renewable source include any costs associated with the production or supply of heat produced in connection with that generation.
(6) For the purposes of subsection (4)(b), an operator's income associated with the generation of electricity from a renewable source includes any income connected with—
(a) the acquisition of the renewable source;
(b) the supply of heat produced in connection with the generation;
(c) the disposal of any by-product of the generation process.
(7) After the first order containing banding provision is made by the relevant minister, no subsequent order containing such provision may be made by that minister except following a review held by virtue of subsection (8).
(8) A renewables obligation order—
(a) may authorise the relevant minister to review the banding provision at such intervals as are specified in or determined in accordance with the order, and
(b) may authorise the relevant minister to review the whole or any part of the banding provision at any time when that minister is satisfied that one or more of the specified conditions is satisfied.
32E Section 32D: transitional provision and savings
(1) This section applies where a renewables obligation order contains banding provision.
(2) The order may provide for the effect of any banding provision made in an earlier order, or of any provision of a pre-commencement order, to continue, in such circumstances as may be specified, in relation to—
(a) the electricity generated by generating stations of such a description as may be specified, or
(b) so much of that electricity as may be determined in accordance with the order.
(3) For the purposes of subsection (2) “pre-commencement order” means an order made under section 32 before the coming into force of this section.
(4) Subsection (6) applies to a generating station in respect of which a statutory grant has been awarded if—
(a) the generating station is of a specified description, or
(b) the circumstances of the case meet specified requirements.
(5) The requirements specified under subsection (4)(b) may relate to the time when the grant was awarded (whether a time before or after the coming into force of this section).
(6) A renewables obligation order which contains banding provision may provide for the operation of that provision in relation to electricity generated by a generating station to which this subsection applies to be conditional upon the operator of the station agreeing—
(a) if the grant or any part of it has been paid, to repay to the Secretary of State the whole or a specified part of the grant or part before the repayment date,
(b) to pay to the Secretary of State interest on an amount repayable under paragraph (a) for such period, and at such rate, as may be determined by the Secretary of State, and
(c) if the grant or any part of it has not yet been paid, to consent to the cancellation of the award of the grant or part.
(7) If the grant in respect of which an amount falls to be paid under paragraph (a) or (b) of subsection (6) was paid by the Scottish Ministers, the references in those paragraphs to the Secretary of State are to be read as references to those Ministers.
(8) For the purposes of subsection (6)—
(a) “the repayment date” means the date specified in or determined in accordance with the order, and
(b) the period for which interest is payable must not begin before the grant was paid or, if the repayment relates to an instalment of the grant, before the instalment was paid;
and, for the purposes of provision made under that subsection, a renewables obligation order may make provision about the cancellation of an award of a statutory grant or an instalment of such a grant.
(9) In this section “statutory grant” means—
(a) a grant awarded under section 5(1) of the Science and Technology Act 1965 (grants to carry on or support scientific research), or
(b) any other grant which is payable out of public funds and awarded under or by virtue of an Act.
(10) This section is without prejudice to section 32K(1)(b) (power for renewables obligation order to include transitional provision and savings).
32F Use of renewables obligation certificates issued in Northern Ireland
(1) A renewables obligation order may provide that—
(a) in such cases as may be specified in the order, and
(b) subject to such conditions as may be so specified,
an electricity supplier may (to the extent provided for in accordance with the order) discharge its renewables obligation (or its obligation in relation to a particular period) by the production to the Authority of a Northern Ireland certificate.
(2) In this section “Northern Ireland certificate” means a certificate issued by the Northern Ireland authority in accordance with provision included, by virtue of Articles 54 to 54D of the Energy (Northern Ireland) Order 2003, in an order under Article 52 of that Order (renewables obligations for Northern Ireland suppliers).
32G Payment as alternative to complying with renewables obligation order
(1) A renewables obligation order may provide—
(a) that an electricity supplier may (in whole or in part) discharge its renewables obligation by making a payment to the Authority before the last discharge day, and
(b) that an electricity supplier's renewables obligation that was not discharged in whole or in part before the last discharge day is to be treated as having been discharged to the extent specified in the order where the payment for which the order provides is made to the Authority before the end of the late payment period.
(2) The order may make provision—
(a) as to the sum which for the purposes of subsection (1) is to correspond to a renewables obligation certificate,
(b) for the sums that must be paid in order for an obligation to be treated as having been discharged to increase at a rate specified in the order for each day after the last discharge day;
(c) for different sums or rates falling within paragraph (a) or (b) in relation to different periods;
(d) for different such sums or rates in relation to electricity generated in different cases or circumstances specified in the order (including those of a kind referred to in section 32A(2)(c));
(e) for any such sum or rate to be adjusted from time to time for inflation by a method specified in the order.
(3) The method specified under subsection (2)(e) may, in particular, refer to a specified scale or index (as it may have effect from time to time) or to other specified data of any description.
(4) A renewables obligation order may provide that, where—
(a) a renewables obligation is one in relation to which provision made by virtue of subsection (1)(b) applies in the case of the electricity supplier who is subject to the obligation, and
(b) the period ending with such day (after the last discharge day) as may be specified in or determined under the order has not expired,
the taking of steps under section 27A in respect of a contravention by that supplier of that obligation is prohibited or otherwise restricted to the extent specified in the order.
(5) A renewables obligation order may provide that, in a case in which the amount received by the Authority, or by the Northern Ireland authority, by way of discharge payments for a period falls short of the amount due in respect of that period, every person who—
(a) was subject to a renewables obligation for the relevant period or for a subsequent period specified in or determined under the order, and
(b) is of a description so specified or determined,
must by the time and in the circumstances so specified or determined make a payment (or further payment) to the Authority of an amount calculated in the manner so specified or determined.
(6) A renewables obligation order may not by virtue of subsection (5) confer an entitlement on the Authority to receive a payment in respect of the shortfall for any period—
(a) in the case of a shortfall in the amount received by the Authority, if the receipt of the payment is to be while a prohibition or restriction by virtue of subsection (4) applies, in one or more cases, to the taking of steps in relation to contraventions of renewables obligations for that period, or
(b) in the case of a shortfall in the amount received by the Northern Ireland authority, if the receipt of the payment is to be while a prohibition or restriction by virtue of a corresponding provision having effect in Northern Ireland applies, in one or more cases, to the taking of steps in relation to contraventions of Northern Ireland obligations for that period.
(7) The provision that may be made by virtue of subsection (5) includes—
(a) provision for the making of adjustments and repayments at times after a requirement to make payments in respect of a shortfall for a period has already arisen, and
(b) provision that sections 25 to 28 are to apply in relation to a requirement imposed by virtue of that subsection on a person who is not a licence holder as if the person were a licence holder.
(8) References in this section to an electricity supplier's renewables obligation include references to its renewables obligation in relation to a particular period.
(9) For the purposes of this section, the amount received by the Authority by way of discharge payments for a period falls short of the amount due in respect of that period if, and to the extent that, the Authority would have received more by way of discharge payments if every renewables obligation for that period, so far as it was not otherwise discharged, had been discharged by payment.
(10) For the purposes of this section the amount received by the Northern Ireland authority by way of discharge payments for a period falls short of the amount due in respect of that period if, and to the extent that, that authority would have received more by way of discharge payments if every Northern Ireland obligation for that period, so far as not otherwise discharged, had been discharged by payment.
(11) In this section—
“discharge payment”, in relation to a period, means—
a payment by virtue of subsection (1)(a) for discharging (in whole or in part) an electricity supplier's renewables obligation for that period,
so much of a payment by virtue of subsection (1)(b) for securing that such an obligation is treated as discharged to any extent as does not exceed the payment that would have discharged that obligation to the same extent if it had been made before the last discharge day, or
so much of any payment to the Northern Ireland authority as corresponds in relation to a Northern Ireland obligation for that period, to anything falling within paragraph (a) or (b) above;
“last discharge day” means the day specified as the day by which renewables obligation certificates must be produced for the purposes of section 32(6);
“late payment period” means such period beginning with the last discharge day as may be specified;
“Northern Ireland obligation” means a renewables obligation of a Northern Ireland supplier under Article 52 of the Energy (Northern Ireland) Order 2003;
“the relevant period”—
in relation to a shortfall in amounts received by the Authority by way of discharge payments for a period, means that period, and
in relation to a shortfall in amounts received by the Northern Ireland authority by way of discharge payments for a period, means any period that includes the whole or a part of that period.
32H Allocation of amounts to electricity suppliers
(1) The amounts received by the Authority by virtue of section 32G must be paid by it to electricity suppliers in accordance with a system of allocation specified in a renewables obligation order.
(2) Subsection (1) does not apply to those amounts to the extent that they are used by the Authority under section 32I.
(3) The system of allocation specified in the order may provide for payments to specified categories of electricity supplier only.
(4) That system may also provide for the postponement of a requirement to make payments to electricity suppliers of amounts received by the Authority under section 32G(1)(b) if, at the time the payments would otherwise fall to be made, the aggregate of the amounts so received (and not used under section 32I or already paid under subsection (1)) is less than an amount specified in the order.
(5) The references in this section to electricity suppliers include references to Northern Ireland suppliers.
32I Costs of the Authority and the Northern Ireland authority
(1) A renewables obligation order may provide for amounts received by the Authority by virtue of section 32G to be used by the Authority—
(a) to make payments into the Consolidated Fund in respect of costs (or a proportion of costs) which have been or are expected to be incurred by the Authority in connection with the performance of its functions conferred by or under sections 32 to 32M, or
(b) to make payments to the Northern Ireland authority in respect of costs (or a proportion of costs) which have been or are expected to be incurred by that authority in connection with the performance of its functions conferred by or under Articles 52 to 55F of the Energy (Northern Ireland) Order 2003.
(2) A renewables obligation order—
(a) may exclude amounts of a specified description from being used as mentioned in subsection (1);
(b) may prevent the Authority using amounts to make payments in respect of costs of a specified description.
(1) A renewables obligation order may provide for the Authority to require—
(a) an electricity supplier to provide the Authority with information, or with information of a particular kind, which in the Authority's opinion is relevant to the question whether the supplier is discharging, or has discharged, its renewables obligation;
(b) a person to provide the Authority with information, or with information of a particular kind, which in the Authority's opinion is relevant to the question whether a renewables obligation certificate is, or was or will in future be, required to be issued to the person.
(2) That information must be given to the Authority in whatever form it requires.
(3) A renewables obligation order may—
(a) require operators of generating stations generating electricity (wholly or partly) from biomass to give specified information, or information of a specified kind, to the Authority;
(b) specify what, for this purpose, constitutes “biomass”;
(c) require the information to be given in a specified form and within a specified period;
(d) authorise or require the Authority to postpone the issue of certificates under section 32B to the operator of a generating station who fails to comply with a requirement imposed by virtue of paragraph (a) or (c) until such time as the failure is remedied;
(e) authorise or require the Authority to refuse to issue certificates to such a person or to refuse to issue them unless the failure is remedied within a prescribed period.
(4) The Authority may publish information obtained by virtue of subsection (3).
(5) No person is required by virtue of this section to provide any information which the person could not be compelled to give in evidence in civil proceedings in the High Court or, in Scotland, the Court of Session.
32K Renewables obligation order: general provision
(1) A renewables obligation order may—
(a) make further provision as to the functions of the Authority in relation to the matters dealt with by the order;
(b) make transitional provision and savings;
(c) provide for anything falling to be calculated or otherwise determined under the order to be calculated or determined by such persons, in accordance with such procedure and by reference to such matters and to the opinion of such persons, as may be specified in the order;
(d) make different provision for different cases or circumstances.
(2) Provision made by virtue of subsection (1)(b) may, in particular, include provision about the treatment of certificates issued under section 32B before the substitution of that section by section 37 of the Energy Act 2008 or certificates referred to in section 38(2)(b) of the Energy Act 2008 (Northern Ireland certificates issued under the Energy (Northern Ireland) Order 2003 before 1st April 2009).
(3) Provision made by virtue of subsection (1)(d) may, in particular, make—
(a) different provision in relation to different suppliers;
(b) different provision in relation to generating stations of different descriptions;
(c) different provision in relation to different localities.
(4) In subsection (3) “supplier” means an electricity supplier or a Northern Ireland supplier.
(1) Before making a renewables obligation order, the relevant minister must consult—
(a) the Authority,
(b) Citizens Advice,
(ba) Consumer Scotland,
(c) the electricity suppliers to whom the proposed order would apply,
(d) such generators of electricity from renewable sources as the relevant minister considers appropriate, and
(e) such other persons, if any, as the relevant minister considers appropriate.
(2) A renewables obligation order is not to be made by the Secretary of State unless a draft of the instrument containing it has been laid before and approved by a resolution of each House of Parliament.
(3) A renewables obligation order is not to be made by the Scottish Ministers unless a draft of the instrument containing it has been laid before and approved by a resolution of the Scottish Parliament.
(1) The Secretary of State may make a renewables obligation closure order.
(2) A renewables obligation closure order is an order which provides that no renewables obligation certificates are to be issued under a renewables obligation order in respect of electricity generated after a specified date.
(3) Provision made under subsection (2) may specify different dates in relation to different cases or circumstances.
(4) The cases or circumstances mentioned in subsection (2) may in particular be described by reference to—
(a) accreditation of a generating station, or
(b) the addition of generating capacity to a generating station.
(5) A renewables obligation closure order may include provision about—
(a) the meaning of “accreditation” and “generating capacity” in subsection (4);
(b) when generating capacity is to be treated as added to a generating station for the purposes of that subsection.
(6) References in this section to a renewables obligation order are references to any renewables obligation order made under section 32 (whenever made, and whether or not made by the Secretary of State).
(7) Power to make provision in a renewables obligation order (and any provision contained in such an order) is subject to provision contained in a renewables obligation closure order; but this section is not otherwise to be taken as affecting power to make provision in a renewables obligation order of the kind mentioned in subsection (2).
(8) Section 32K applies in relation to a renewables obligation closure order as it applies in relation to a renewables obligation order (and subsection (3) above is not to be taken as limiting the application of that section).
(1) Before making a renewables obligation closure order, the Secretary of State must consult—
(a) the Authority,
(b) the Council,
(c) such generators of electricity from renewable sources as the Secretary of State considers appropriate, and
(d) such other persons, if any, as the Secretary of State considers appropriate.
(2) The requirement to consult may be satisfied by consultation before, as well as consultation after, the passing of the Energy Act 2013.
(3) A renewables obligation closure order is not to be made unless a draft of the instrument containing it has been laid before and approved by a resolution of each House of Parliament.
32LC Onshore wind generating stations: closure of renewables obligation
(1) No renewables obligation certificates are to be issued under a renewables obligation order in respect of electricity generated after the onshore wind closure date by an onshore wind generating station.
(2) Subsection (1) does not apply to electricity generated in the circumstances set out in any one or more of sections 32LD to 32LL.
(3) In this section and sections 32LD to 32LL—
“the onshore wind closure date” means the date on which the Energy Act 2016 is passed;
“onshore wind generating station” means a generating station that—
generates electricity from wind, and
is situated in England, Wales or Scotland, but not in waters in or adjacent to England, Wales or Scotland up to the seaward limits of the territorial sea.
(4) The reference in subsection (1) to a renewables obligation order is to any renewables obligation order made under section 32 (whenever made, and whether or not made by the Secretary of State).
(5) Power to make provision in a renewables obligation order or a renewables obligation closure order (and any provision contained in such an order) is subject to subsection (1) and sections 32LD to 32LL.
(6) This section is not otherwise to be taken as affecting power to make provision in a renewables obligation order or renewables obligation closure order.
32LD Onshore wind generating stations accredited, or additional capacity added, on or before the onshore wind closure date
The circumstances set out in this section are where the electricity is—
(a) generated by an onshore wind generating station which was accredited on or before the onshore wind closure date, and
(b) generated using—
(i) the original capacity of the station, or
(ii) additional capacity which in the Authority's view first formed part of the station on or before the onshore wind closure date.
32LE Onshore wind generating stations accredited, or additional capacity added, in the year after the onshore wind closure date: grid or radar delay condition met
The circumstances set out in this section are where the electricity is—
(a) generated using the original capacity of an onshore wind generating station—
(i) which was accredited during the period beginning immediately after the onshore wind closure date and ending with the first anniversary of the onshore wind closure date, and
(ii) in respect of which the grid or radar delay condition is met, or
(b) generated using additional capacity of an onshore wind generating station, where—
(i) the station was accredited on or before the onshore wind closure date,
(ii) in the Authority's view, the additional capacity first formed part of the station during the period beginning immediately after the onshore wind closure date and ending with the first anniversary of the onshore wind closure date, and
(iii) the grid or radar delay condition is met in respect of the additional capacity.