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In force since 2026-09-30, as the publisher states.
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Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.
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In section 29(1)(b) of the Climate Change Act 2008 (UK emissions and removals of greenhouse gases), for “land use, land-use change or forestry” substitute “processes, mechanisms or”.
Propose a change(1) This Part contains provision about the Independent System Operator and Planner (referred to in this Part as “the ISOP”). (2) The functions of the ISOP include— (a) functions conferred by or by virtue of this Act, which include functions relating to the matters mentioned in subsection (3), and (b) whatever other functions are conferred on the ISOP by or by virtue of any enactment other than one contained in this Act. (3) The matters referred to in subsection (2)(a) are— (a) co-ordinating and directing the flow of electricity onto and over transmission systems; (b) making and administering arrangements for the provision of services for the purpose of facilitating the co-ordination of the flow of electricity onto and over transmission systems; (c) carrying out strategic planning and forecasting in connection with— (i) the development of transmission systems, (ii) the provision of services referred to in paragraph (b), and (iii) other arrangements relating to the conveyance or supply of electricity; (d) carrying out strategic planning and forecasting in connection with— (i) the development of pipe-line systems for the conveyance of gas, and (ii) other arrangements relating to the conveyance or supply of gas; (e) providing advice, analysis or information in relation to the matters mentioned in section 171(1).
Propose a change(1) The Secretary of State may by notice designate a person as the ISOP. (2) A notice under subsection (1)— (a) must specify the time from which the designation has effect; (b) must be published by the Secretary of State as soon as reasonably practicable after the notice is given. (3) The Secretary of State must ensure that a person is designated under subsection (1) at all times after a person is first designated (but at any time not more than one person may be designated). (4) The Secretary of State may by notice revoke a person’s designation under subsection (1). (5) A notice under subsection (4)— (a) must specify the time from which the revocation has effect; (b) must be published by the Secretary of State as soon as reasonably practicable after the notice is given.
Propose a change(1) The ISOP must carry out its functions in the way that it considers is best calculated to promote— (a) the net zero objective; (b) the security of supply objective; (c) the efficiency and economy objective. (2) The net zero objective is the objective of enabling the Secretary of State to meet the duties imposed by— (a) section 1 of the Climate Change Act 2008 (net UK carbon account target for 2050), and (b) section 4(1)(b) of that Act (UK carbon account not to exceed carbon budget). (3) The security of supply objective is the objective of ensuring the security of supply, to existing and future consumers, of— (a) electricity conveyed by distribution systems or transmission systems, and (b) gas conveyed through pipes. (4) The efficiency and economy objective is the objective of promoting— (a) efficient, co-ordinated and economical systems for the distribution and transmission of electricity and the conveyance of gas; (b) efficiency (including the efficient use of energy) and economy on the part of persons who carry out relevant activities within subsection (5)(a), (b) or (c). (5) In this Part, “relevant activity” means any of the following, so far as carried out in the course of a business— (a) an activity mentioned in section 5(1) of the Gas Act 1986 (gas transportation, interconnection, supply, shipping, system planning, smart meter communication, code management); (b) an activity mentioned in section 4(1) of the Electricity Act 1989 (electricity generation, transmission, distribution, supply, interconnection, multi-purpose interconnection, system operation, smart meter communication, code management); (c) an activity, other than an activity within paragraph (a) or (b), in respect of which the ISOP has functions; (d) an activity, other than an activity within paragraph (a), (b) or (c), that is connected with— (i) the production, conveyance, storage or supply of energy, (ii) the reduction of UK emissions of targeted greenhouse gases arising from the production, conveyance, storage, supply or consumption of energy, or (iii) data relating to any matter within sub-paragraph (i) or (ii), or to demand for or consumption of energy. (6) For the purposes of subsection (5)(d)— (a) “energy” means energy in any form and includes fuel or other substances used to produce energy; (b) references to the production of energy include references to the conversion of energy from one form to another; (c) references to the supply of energy include references to adjusting consumption of energy (whether generally, at particular times, or by particular persons); (d) an activity referred to in paragraph (d)(i) is not a relevant activity when carried out in relation to products for human or animal consumption; (e) “UK emissions of targeted greenhouse gases” are emissions of such gases as are, or are treated for the purposes of Part 1 of the Climate Change Act 2008 as, emissions from sources in the United Kingdom. (7) In this section, “targeted greenhouse gas” has the same meaning as in Part 1 of the Climate Change Act 2008 (see section 24 of that Act).
Propose a change(1) The ISOP must, when carrying out its functions, have regard to— (a) the need to facilitate competition between persons who carry out a relevant activity (except to the extent that such persons are, in accordance with or by virtue of an enactment, not subject to competition in relation to the activity); (b) the consumer impact of a relevant activity; (c) the whole-system impact of a relevant activity; (d) the desirability of facilitating innovation in relation to the carrying out of relevant activities. (2) The reference in subsection (1)(b) to the consumer impact of a relevant activity is a reference to the impact (or likely impact) of— (a) the behaviour of persons who carry out the activity on existing and future consumers, and (b) the behaviour of existing and future consumers on the carrying out of the activity. (3) The reference in subsection (1)(c) to the whole-system impact of a relevant activity is a reference to the impact (or likely impact) of— (a) the carrying out of the activity, and (b) the behaviour of existing and future consumers in relation to the carrying out of the activity, in relation to the carrying out of other relevant activities.
Propose a change(1) The ISOP must, when carrying out its functions, have regard to the strategic priorities set out in the current strategy and policy statement. (2) The ISOP must give notice to the Secretary of State if at any time the ISOP concludes that a policy outcome contained in the current strategy and policy statement is not realistically achievable. (3) A notice under subsection (2) must include— (a) the grounds on which the conclusion was reached; (b) what (if anything) the ISOP is doing or proposes to do for the purpose of furthering the delivery of the outcome so far as reasonably practicable. (4) In this section— “the current strategy and policy statement” means the statement for the time being designated under section 131(1) of the Energy Act 2013; “policy outcome” and “strategic priorities” have the same meaning as in Part 5 of the Energy Act 2013 (see section 131(5) of that Act). (5) Part 5 of the Energy Act 2013 is amended as follows. (6) In section 131 (designation of strategy and policy statement)— (a) in subsection (2)(c), after “Authority” insert “, the Independent System Operator and Planner”; (b) in subsection (5), after the definition of “the 1986 Act” insert— “Independent System Operator and Planner” means the person for the time being designated under section 162(1) of the Energy Act 2023; . (7) Section 134 (review of strategy and policy statement) is amended as follows. (8) In subsection (4), after paragraph (b) insert— (ba) the Independent System Operator and Planner has given notice to the Secretary of State under section 165(2) of the Energy Act 2023 since the relevant time, . (9) After subsection (5) insert— (5A) The Secretary of State may also review the strategy and policy statement at any other time if the Secretary of State considers it appropriate to do so in preparation for or in connection with the designation of a person under section 162(1) of the Energy Act 2023 (Independent System Operator and Planner). (10) In subsection (10), after paragraph (a) insert— (aa) the Independent System Operator and Planner, . (11) In section 135(4) (procedural requirements in relation to strategy and policy statement), after paragraph (a) insert— (aa) the Independent System Operator and Planner, .
Propose a change(1) The ISOP must, when carrying out any of its functions relating to the management of connections to the transmission system, have regard to the designated strategic plans. (2) The Secretary of State may by regulations designate plans or documents for the purposes of this section. (3) In subsection (1), the reference to “the designated strategic plans” is a reference to those plans or documents designated by regulations under subsection (2) as they have effect at the time when the regulations are made.
Propose a change(1) Part 1 of the Electricity Act 1989 is amended as follows. (2) In section 4(1) (prohibition on unlicensed supply, transmission etc of electricity), after paragraph (c) insert— (ca) co-ordinates and directs the flow of electricity onto and over transmission systems by means of which the transmission of electricity takes place; . (3) Section 6 (licences authorising supply, etc) is amended as follows. (4) In subsection (1), after paragraph (d) insert— (da) subject to subsections (1ZB) and (2ZA), a licence authorising a person to co-ordinate and direct the flow of electricity onto and over transmission systems by means of which the transmission of electricity takes place (“an electricity system operator licence”); . (5) After subsection (1) insert— (1ZA) Subject to subsection (2ZA), the Secretary of State may grant an electricity system operator licence. (1ZB) The first electricity system operator licence may only be granted by the Secretary of State. (1ZC) For the purposes of this section, references to the grant of an electricity system operator licence include the giving of a direction under section 167 of the Energy Act 2023 in respect of a transmission licence. (6) After subsection (2) insert— (2ZA) A person may not be granted an electricity system operator licence unless the same person— (a) already holds a licence granted under section 7AA of the Gas Act 1986, or (b) is granted such a licence at the same time as the person is granted an electricity system operator licence. (7) In subsection (2A), for “(d)” substitute “(da)”. (8) In subsection (8), after “term of the licence” insert “and subject to”. (9) After subsection (8) insert— (8A) If a person who holds an electricity system operator licence ceases at any time to hold a licence under section 7AA of the Gas Act 1986, the person is to be treated as ceasing to hold the electricity system operator licence at the same time. (10) In section 7A (transfer of licences), after subsection (11) insert— (11ZA) An electricity system operator licence may not be transferred to a person unless a licence granted under section 7AA of the Gas Act 1986 is also transferred to the same person at the same time.
Propose a change(1) The Secretary of State may (instead of granting an electricity system operator licence) direct that a pre-commencement transmission licence is to have effect as an electricity system operator licence. (2) A direction under this section may provide that a licence that has effect by virtue of the direction includes such terms and conditions as are specified, or of a description specified, in the direction (regardless of whether or the extent to which those terms and conditions were included in the pre-commencement transmission licence). (3) A direction under this section may provide for the continued effect (in accordance with the direction) of rights, liabilities and obligations that have effect immediately before the relevant date in connection with— (a) a pre-commencement transmission licence, (b) a document maintained in accordance with the conditions of such a licence, or (c) an agreement that gives effect to such a document. (4) In subsection (3), “the relevant date” means the date on which the direction takes effect. (5) A direction under this section may make— (a) incidental, consequential, supplementary and transitional provision; (b) such amendments relating to the revocation of a pre-commencement transmission licence as the Secretary of State considers appropriate; (c) different provision for different purposes. (6) Before giving a direction under this section, the Secretary of State must consult— (a) the GEMA, and (b) such other persons as the Secretary of State considers appropriate. (7) Subsection (6) may be satisfied by consultation before the passing of this Act (as well as by consultation after that time). (8) In this Part— “electricity system operator licence” means a licence under section 6(1)(da) of the Electricity Act 1989 (as inserted by section 166); “pre-commencement transmission licence” means a licence under section 6(1)(b) of the Electricity Act 1989 that is in force immediately before this section comes into force.
Propose a change(1) The Gas Act 1986 is amended as follows. (2) In section 5 (prohibition on unlicensed activities), in subsection (1)— (a) omit the “or” at the end of paragraph (c); (b) after that paragraph insert— (ca) carries out planning and forecasting functions of the Independent System Operator and Planner; ; (c) after subsection (10) insert— (10A) In subsection (5)(1)(ca), “planning and forecasting functions of the Independent System Operator and Planner” means functions that— (a) are conferred by or by virtue of an enactment on a person who is designated under section 162(1) of the Energy Act 2023, and (b) relate to strategic planning and forecasting in connection with the development of pipe-line systems operated by gas transporters for the conveyance of gas. (3) After section 7A insert— Licensing of a person carrying out gas system planner functions 7AA (1) Subject to subsections (3) and (4), the Authority may grant a licence authorising a person to carry out planning and forecasting functions of the Independent System Operator and Planner (“a gas system planner licence”). (2) Subject to subsection (4), the Secretary of State may grant a gas system planner licence. (3) The first gas system planner licence may only be granted by the Secretary of State. (4) A person may not be granted a gas system planner licence unless either of the following paragraphs applies to the person— (a) the person— (i) already holds an electricity system operator licence, or (ii) is treated as holding such a licence by virtue of a direction under section 167 of the Energy Act 2023; (b) the person is granted an electricity system operator licence, or is treated by virtue of a direction under section 167 of the Energy Act 2023 as having been granted such a licence, at the same time as the person is granted a gas system planner licence. (5) In this section— “electricity system operator licence” means a licence under section 6(1)(da) of the Electricity Act 1989; “planning and forecasting functions of the Independent System Operator and Planner” has the meaning given by section 5(10A). (4) In section 7B (licences: general)— (a) in subsection (3), after “contained in it” insert “and subject to subsection (3A)”; (b) after subsection (3) insert— (3A) If a person who holds a gas system planner licence ceases at any time to hold a licence under section 6(1)(da) of the Electricity Act 1989, the person is to be treated as ceasing to hold the gas system planner licence at the same time. (5) In section 8AA (transfer of licences), after subsection (11) insert— (11ZA) A gas system planner licence may not be transferred to a person unless a licence granted under section 6(1)(da) of the Electricity Act 1989 is also transferred to the same person at the same time.
Propose a change(1) A relevant authority may modify— (a) the conditions of a particular relevant licence; (b) the standard conditions of relevant licences of a particular type; (c) a relevant document. (2) A relevant authority may revoke a pre-commencement transmission licence where— (a) the licence authorises the holder to co-ordinate and direct the flow of electricity onto and over a transmission system by means of which the transmission of electricity takes place, and (b) the first electricity system operator licence has been granted to a person. (3) A relevant authority may exercise the power under subsection (1) or (2) only— (a) in preparation for the designation of a person under section 162(1), or (b) in connection with or in consequence of the designation of a person under that provision. (4) A relevant authority may also exercise the power under subsection (1) where— (a) the operation or management of a relevant document is affected by steps taken in connection with the designation of a person under section 162(1) or by the preparation for such a designation, and (b) the authority considers it appropriate to exercise the power in connection with the operation or management of a relevant document. (5) The Secretary of State may direct the GEMA to exercise the power under subsection (1) or (2) if the Secretary of State considers it appropriate for the GEMA to exercise that power. (6) A relevant authority may not exercise the power under subsection (1) or (2) after the end of the period of 3 years beginning with the day on which the first designation under section 162(1) has effect. (7) In this section— “pre-commencement transmission licence” has the same meaning as in section 167; “relevant authority” means the Secretary of State or the GEMA; “relevant document” means a document maintained in accordance with the conditions of a relevant licence.
Propose a change(1) Before making a modification under section 169, a relevant authority must— (a) publish a notice about the proposed modification, (b) send a copy of the notice to the persons listed in subsection (2), and (c) consider any representations made within the period specified in the notice about the proposed modification or the date from which it would take effect. (2) The persons mentioned in subsection (1)(b) are— (a) each relevant licence holder; (b) the GEMA (where the relevant authority is the Secretary of State) or the Secretary of State (where the relevant authority is the GEMA); (c) the National Association of Citizens Advice Bureaux; (d) the Scottish Association of Citizens Advice Bureaux; (e) Consumer Scotland; (f) the General Consumer Council for Northern Ireland, unless the relevant authority does not consider it appropriate for the Council to be sent a copy of the notice in a particular case; (g) where the proposed modification relates to a licence for the purposes of section 5 of the Gas Act 1986, the Health and Safety Executive; (h) such other persons as the relevant authority considers appropriate. (3) A notice under subsection (1) must— (a) state that the relevant authority proposes to make a modification; (b) set out the proposed modification and its effect; (c) specify the date from which the relevant authority proposes that the modification will have effect; (d) state the reasons why the relevant authority proposes to make the modification. (4) If, after complying with subsections (1) to (3) in relation to a modification, the relevant authority decides to make the modification, it must publish a notice about the decision. (5) A notice under subsection (4) must— (a) state that the relevant authority has decided to make the modification; (b) set out the modification and its effect; (c) specify the date from which the modification has effect; (d) state how the relevant authority has taken account of any representations made in the period specified in the notice under subsection (1); (e) state the reason for any differences between the modification set out in the notice and the proposed modification. (6) A notice under this section about a modification or decision must be published in such manner as the relevant authority considers appropriate for bringing it to the attention of those likely to be affected by the making of the modification or decision. (7) References in this section to the making of a modification, in relation to a relevant licence, include references to the revocation of the licence. (8) In this section, “relevant licence holder”— (a) in relation to the modification of standard conditions of relevant licences of any type, means the holder of a licence of that type— (i) that is to be modified by the inclusion of a new standard condition, or (ii) that includes any standard conditions to which the modification relates that are in effect at the end of the period specified by virtue of subsection (1)(c); (b) in relation to the modification of a condition of a particular relevant licence (other than a standard condition), means the holder of that licence; (c) in relation to the modification of a document maintained in accordance with the conditions of a relevant licence of a particular type, means the holder of a relevant licence of that type; (d) in relation to the revocation of a relevant licence, means the holder of that licence. (9) In this section, “relevant authority” means the Secretary of State or the GEMA.
Propose a change(1) The ISOP must, so far as reasonably practicable, comply with a request by a person within subsection (2) for the provision of advice, analysis or information to the person in connection with— (a) any of the ISOP’s functions, (b) any of the objectives listed in section 163(1), or (c) any of the matters listed in section 164(1). (2) The persons within this subsection are— (a) a Minister of the Crown (within the meaning of the Ministers of the Crown Act 1975: see section 8(1) of that Act); (b) the GEMA. (3) The ISOP must, so far as reasonably practicable, comply with a request made under subsection (1) within such period, and in such form and manner, as the person making the request may reasonably require.
Propose a change(1) The ISOP may by notice request from a person within subsection (2) such information as the ISOP reasonably requires in connection with the exercise of any of its functions. (2) A person is within this subsection if— (a) the person carries out a relevant activity, or (b) the ISOP reasonably considers that the person intends to carry out a relevant activity. (3) A person to whom a request is made under subsection (1) must, so far as reasonably practicable, provide the requested information within such period, and in such form and manner, as may be specified in the notice. (4) Where a requirement under subsection (3) is imposed on a regulated person (as defined by section 25(8) of the Electricity Act 1989), it is enforceable by the GEMA as if it were a relevant requirement imposed on the person for the purposes of section 25 of that Act. (5) Where a requirement under subsection (3) is imposed on a regulated person (as defined by section 28(8) of the Gas Act 1986), it is enforceable by the GEMA as if it were a relevant requirement imposed on the person for the purposes of section 28 of that Act. (6) Where neither of subsections (4) and (5) applies, the duty imposed under subsection (3) on a person is enforceable by the ISOP in civil proceedings— (a) for an injunction, (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. (7) Nothing in this section requires a disclosure of information that would contravene the data protection legislation (within the meaning of the Data Protection Act 2018 - see section 3 of that Act). In determining whether a disclosure would do so, the duty imposed by subsection (3) is to be taken into account.
Propose a changeThe ISOP must keep under review developments relating to the energy sector that may be relevant to the carrying out of any of the ISOP’s functions.
Propose a changeSchedule 9 contains— (a) in Part 1, provision about transfer schemes relating to the ISOP; (b) in Part 2, related provision about transfers and other provision in connection with the designation of a person as the ISOP.
Propose a changeSchedule 10 contains provision about pension arrangements in connection with the ISOP.
Propose a change(1) The Secretary of State may provide financial assistance to the ISOP. (2) Financial assistance under this section may be provided in any form and in particular may be provided by way of— (a) grant, (b) loan, (c) guarantee or indemnity, or (d) the acquisition of shares or any other interest in, or securities of, a body corporate. (3) Financial assistance under this section may be provided subject to such conditions as the Secretary of State considers appropriate (which may include conditions about repayment with or without interest or other return).
Propose a change(1) In section 7 of the Electricity Act 1989 (conditions of licences: general), in subsection (3A)— (a) for “or a distribution licence” substitute “, a distribution licence or an electricity system operator licence”; (b) in paragraph (a), for “his charges for the transmission or distribution of electricity” substitute “the charges payable to the holder in connection with the transmission or distribution of electricity, or in connection with the exercise of any other functions under or by virtue of the licence,”; (c) in paragraph (b), for “licence holders” substitute “holders of licences under section 6 or under Part 1 of the Gas Act 1986”. (2) In section 9 of that Act (general duties of licence holders), after subsection (2A) insert— (2B) The conditions of a licence held by a person to which a duty imposed by subsection (1) or (2) applies may include a condition requiring the person, in performing the duty, to have regard to the interests of existing and future consumers in relation to gas conveyed through pipes (within the meaning of the Gas Act 1986). (3) In section 7B of the Gas Act 1986 (licences: general), in subsection (5)(b)— (a) after “section 7” insert “or 7AA”; (b) in sub-paragraph (i), for “his charges for the conveyance of gas” substitute “the charges payable to the holder in connection with the conveyance of gas, or in connection with the exercise of any other functions under or by virtue of the licence,”; (c) in sub-paragraph (ii), for the words from “licences under” to “above” substitute “licences under this Part or under section 6 of the Electricity Act 1989”. (4) In section 9 of that Act (general powers and duties of gas transporters), after subsection (2) insert— (2A) The conditions of a licence held by a gas transporter may include a condition requiring the gas transporter, in performing a duty under subsection (1), (1A) or (2), to have regard to the interests of existing and future consumers in relation to electricity conveyed by distribution systems or transmission systems (within the meaning of the Electricity Act 1989).
Propose a change(1) Sections 3A to 3D of the Electricity Act 1989 and sections 4AA to 4B of the Gas Act 1986 (principal objective and general duties) apply in relation to the functions of the Secretary of State under sections 162 and 167 as they apply in relation to functions under Part 1 of the Act in question. (2) Where the Secretary of State or the GEMA has functions under section 169, 170 or 172 in relation to a licence under section 6(1) of the Electricity Act 1989, sections 3A to 3D of that Act apply in relation to those functions as they apply in relation to functions under Part 1 of that Act. (3) Where the Secretary of State or the GEMA has functions under section 169, 170 or 172 in relation to a licence under section 7, 7ZA, 7A, 7AA, 7AB or 7AC of the Gas Act 1986, sections 4AA to 4B of that Act apply in relation to those functions as they apply in relation to functions under Part 1 of that Act.
Propose a changeSchedule 11 contains further amendments to the Electricity Act 1989 and the Gas Act 1986.
Propose a change(1) In this Part— “distribution system” has the same meaning as in Part 1 of the Electricity Act 1989 (see section 4(4) of that Act); “electricity system operator licence” has the meaning given by section 167(8); “gas” has the same meaning as in Part 1 of the Gas Act 1986 (see section 48(1) of that Act); “relevant activity” has the meaning given by section 163(5); “relevant licence” means a licence for the purposes of section 4 of the Electricity Act 1989 or section 5 of the Gas Act 1986 (prohibitions on unlicensed activities); “transmission system” has the same meaning as in Part 1 of the Electricity Act 1989 (see section 4(4) of that Act). (2) References in this Part to the distribution, generation, supply or transmission of electricity are to be construed in accordance with section 4(4) of the Electricity Act 1989. (3) For the purposes of this Part, references to the ISOP’s functions are to any functions that are exercisable by the person for the time being designated as the ISOP (whether they are exercisable in the person’s capacity as the ISOP or in another capacity).
Propose a change(1) Regulations under this Part are subject to the negative procedure. (2) Subsection (1) does not apply to regulations under paragraph 9 of Schedule 9.
Propose a change(1) In this Part, “designated document” means a document that— (a) is maintained in accordance with the conditions of a relevant licence, and (b) is designated for the purposes of this Part by notice given by the Secretary of State. (2) The designation of a document has effect from the time specified in the notice under subsection (1)(b). (3) A notice under subsection (1)(b) must be published in such manner as the Secretary of State considers appropriate for bringing it to the attention of those likely to be affected by the designation. (4) The Secretary of State may revoke the designation of a document under this section. (5) The Secretary of State may not designate a document, or revoke the designation of a document, except so as to give effect to a recommendation of the GEMA. (6) Before making a recommendation to the Secretary of State for the purposes of subsection (5), the GEMA must consult such persons as it considers appropriate. (7) Subsection (6) does not apply in relation to the designation of a document where, immediately before being designated, the document is (or is treated as) a qualifying document within the meaning of Schedule 12.
Propose a change(1) In this Part, “code manager”, in relation to a designated document, means the holder of a code manager licence in respect of the document. (2) In this Part, “code manager licence” means a licence under section 7AC of the Gas Act 1986 or section 6(1)(g) of the Electricity Act 1989. (3) See sections 185 and 186, which contain amendments to the Gas Act 1986 and the Electricity Act 1989 in relation to the licences mentioned in subsection (2).
Propose a change(1) In this Part, “designated central system” means a central system that is designated for the purposes of this Part by notice given by the Secretary of State. (2) “Central system” means an information technology system which has one or both of the following functions— (a) to support the operation of the provisions of one or more designated documents; (b) to process, transmit or store data in connection with the operation of the provisions of one or more designated documents. (3) The designation of a central system has effect from the time specified in the notice under subsection (1). (4) A notice under subsection (1) in relation to a central system must also specify the person (referred to in this Part as the “responsible body”) who is responsible, for the purposes of this Part, for operating or procuring the operation of the central system. (5) A notice under subsection (1) must be published in such manner as the Secretary of State considers appropriate for bringing it to the attention of those likely to be affected by the designation. (6) The Secretary of State may revoke the designation of a central system under this section. (7) The Secretary of State may not designate a central system, or revoke the designation of a central system, except so as to give effect to a recommendation of the GEMA. (8) Before making a recommendation to the Secretary of State for the purposes of subsection (7), the GEMA must consult such persons as it considers appropriate. (9) Subsection (8) does not apply in relation to the designation of a central system where— (a) immediately before being designated, the central system is a qualifying central system within the meaning of Schedule 12, and (b) the designation does not involve any change to the responsible body in relation to the central system. (10) The Secretary of State may by notice provide— (a) that the person who is the responsible body in relation to a designated central system is to cease to be the responsible body in relation to that system, and (b) that a person specified in a notice under this paragraph is instead to be the responsible body in relation to the designated central system. (11) The Secretary of State may not give a notice under subsection (10) except so as to give effect to a recommendation of the GEMA.
Propose a change(1) Part 1 of the Gas Act 1986 is amended as follows. (2) Section 5 (prohibition on unlicensed activities) is amended as follows. (3) After subsection (1)(d) insert ; or (e) performs the function of code manager in relation to a designated gas licence document (see further subsections (11A) and (11B)), . (4) After subsection (11) insert— (11A) A reference in this Part to a person (“P”) performing the function of code manager in relation to a designated gas licence document is a reference to making arrangements, with the persons to whom subsection (11B) applies, under which P is responsible for the governance of the document. (11B) This subsection applies to the holder of a licence for the purposes of section 5 where a condition of the licence— (a) requires the holder to comply with, or to enter into arrangements that conform with, the designated gas licence document in question, or (b) imposes obligations on the holder that do not apply to the holder where the holder complies with that document. (5) In subsection (12)— (a) omit the “and” after the definition of “relevant information”; (b) at the appropriate place insert— “designated gas licence document” means a document that is— maintained in accordance with the conditions of a licence for the purposes of section 5, and designated under section 182 of the Energy Act 2023; . (6) After section 7AB insert— Licensing of a person performing code manager function 7AC (1) The Authority may grant a licence (“a code manager licence”) authorising a person to perform the function of code manager in respect of a designated gas licence document. (2) Where a designated gas licence document is also a designated electricity licence document, a person may not be granted a code manager licence in respect of the document unless the same person is at the same time granted a licence under section 6(1)(g) of the Electricity Act 1989. (3) In this section— “designated electricity licence document” has the same meaning as in section 4 of the Electricity Act 1989; “designated gas licence document” has the same meaning as in section 5. (7) Section 7B (licences: general) is amended as follows. (8) In subsection (5A)— (a) after “smart meter communication licence” (in the first place it occurs) insert “or in a code manager licence”; (b) for “smart meter communication licence” (in the second place it occurs) substitute “a licence of the same type”. (9) In subsection (5B)— (a) for “Secretary of State or the Authority” substitute “relevant authority”; (b) in paragraph (b)(ii), after “licence” insert “or (in the case of an application for a code manager licence) apply for a licence otherwise than as part of a competition”. (10) In subsection (5C), after “smart meter communication licence” insert “or in a code manager licence”. (11) In subsection (5D), for “the Secretary of State or the Authority” substitute “the relevant authority”. (12) In subsection (5E)— (a) in paragraph (a), for “Secretary of State or the Authority (as appropriate)” substitute “relevant authority”; (b) in paragraph (b), for “Secretary of State or the Authority (as appropriate)” substitute “relevant authority”. (13) After subsection (5F) insert— (5FA) In subsections (5B) to (5E), “the relevant authority” means— (a) in relation to a smart meter communication licence, the Secretary of State or the Authority; (b) in relation to a code manager licence, the Authority. (14) In section 8AA (transfer of licences), after subsection (11A) insert— (11B) Where the holder of a code manager licence is also the holder of a licence under section 6(1)(g) of the Electricity Act 1989, the code manager licence may not be transferred to a person unless the licence under section 6(1)(g) of that Act is transferred to the same person at the same time.
Propose a change(1) Part 1 of the Electricity Act 1989 is amended as follows. (2) Section 4 (prohibition on unlicensed supply, etc) is amended as follows. (3) In subsection (1)— (a) omit the “or” after paragraph (d); (b) after paragraph (e) insert or (f) performs the function of code manager in relation to a designated electricity licence document (see further subsections (3H) and (3I)), . (4) After subsection (3G) insert— (3H) A reference in this Part to a person (“P”) performing the function of code manager in relation to a designated electricity licence document is a reference to making arrangements, with the persons to whom subsection (3I) applies, under which P is responsible for the governance of the document. (3I) This subsection applies to the holder of a licence for the purposes of section 4 where a condition of the licence requires the holder to comply with the designated electricity licence document in question. (5) In subsection (6), at the appropriate place insert— “designated electricity licence document” means a document that is— maintained in accordance with the conditions of a licence for the purposes of section 4, and designated under section 182 of the Energy Act 2023; . (6) Section 6 (licences authorising supply, etc) is amended as follows. (7) In subsection (1)— (a) omit the “or” after paragraph (e); (b) after paragraph (f) insert , or (g) a licence authorising a person to perform the function of code manager in relation to a designated electricity licence document (“a code manager licence”). (8) After subsection (2B) insert— (2C) Where a designated electricity licence document is also a designated gas licence document, a person may not be granted a code manager licence in relation to the document unless the same person is at the same time granted a licence under section 7AC of the Gas Act 1986. (9) For subsection (10) substitute— (10) In this section— “designated electricity licence document” has the same meaning as in section 4; “designated gas licence document” has the same meaning as in section 5 of the Gas Act 1986; “premises” has the same meaning as in section 4. (10) Section 7 (conditions of licences: general) is amended as follows. (11) In subsection (3B)— (a) after “smart meter communication licence” (in the first place it occurs) insert “or in a code manager licence”; (b) for “smart meter communication licence” (in the second place it occurs) substitute “a licence of the same type”. (12) In subsection (3C)— (a) for “Secretary of State or the Authority” substitute “relevant authority”; (b) in paragraph (b)(ii), after “licence” insert “or (in the case of an application for a code manager licence) apply for a licence otherwise than as part of a competition”. (13) In subsection (3D), after “smart meter communication licence” insert “or in a code manager licence”. (14) In subsection (3E), for “the Secretary of State or the Authority” substitute “the relevant authority”. (15) In subsection (3F)— (a) in paragraph (a), for “Secretary of State or the Authority (as appropriate)” substitute “relevant authority”; (b) in paragraph (b), for “Secretary of State or the Authority (as appropriate)” substitute “relevant authority”. (16) In subsection (3G)(a), after “licence” insert “or (as the case may be) code manager licence”. (17) After subsection (3G) insert— (3GA) In subsections (3C) to (3F), “the relevant authority” means— (a) in relation to a smart meter communication licence, the Secretary of State or the Authority; (b) in relation to a code manager licence, the Authority. (18) In section 7A (transfer of licences), after subsection (11A) insert— (11B) Where the holder of a code manager licence is also the holder of a licence under section 7AC of the Gas Act 1986, the code manager licence may not be transferred to a person unless the licence under section 7AC of that Act is transferred to the same person at the same time.
Propose a change(1) The GEMA must determine whether the selection of the person who is to be the code manager in relation to a designated document is to be made— (a) on a non-competitive basis, in accordance with regulations made by the Secretary of State under section 188, or (b) on a competitive basis, in accordance with regulations made by the GEMA under section 189. (2) The Secretary of State may by regulations make— (a) provision about the making of determinations under subsection (1) by the GEMA (which may include provision specifying criteria to be applied by the GEMA in making determinations); (b) provision enabling the GEMA, in circumstances specified in the regulations, to change the basis on which the selection of a code manager is to be made. (3) The Secretary of State may by regulations— (a) specify requirements to be met by or in relation to a person in order for the person to be selected as the code manager in relation to a designated document; (b) specify persons, or persons of a particular description, who may or may not be selected to be a code manager in relation to a designated document.
Propose a change(1) The Secretary of State may by regulations make provision about the selection by the GEMA, otherwise than on a competitive basis, of the person who is to be the code manager in relation to a designated document. (2) Regulations under this section may make provision by reference to a determination by the GEMA or to the opinion of the GEMA as to any matter. (3) Regulations under this section must make provision so as to ensure that a person (“P”) may not be selected to be the code manager in relation to a designated document unless the GEMA is satisfied that P would not, if selected, have a financial or other interest likely to prejudice the discharge by P of the functions of code manager. (4) The provision that may be made by virtue of subsection (1) includes provision for the selection by the GEMA of a person (other than an individual) formed by the GEMA.
Propose a change(1) The GEMA may by regulations make provision for a determination by the GEMA on a competitive basis of the person who is to be selected to be the code manager in relation to a designated document. (2) Regulations under this section may make provision about the procedure relating to the making of such a determination, which may include provision— (a) in prescribed cases, for the publication of a proposal to select a code manager in relation to a designated document; (b) for the inclusion in such a proposal of an invitation to apply for selection; (c) imposing conditions in relation to the making of applications (whether in pursuance of a proposal published as mentioned in paragraph (a) or otherwise); (d) restricting the making of applications and imposing requirements as to the period within which they must be made; (e) for regulating the manner in which applications are considered or determined; (f) authorising or requiring the GEMA, when determining whom to select, to have regard to the person’s suitability for being selected. (3) Regulations under this section may make provision by reference to a determination by the GEMA or to the opinion of the GEMA as to any matter. (4) Regulations under this section must make provision so as to ensure that a person (“P”) may not be selected to be the code manager in relation to a designated document unless the GEMA is satisfied that P would not, if selected, have a financial or other interest likely to prejudice the discharge by P of the functions of code manager. (5) The approval of the Secretary of State is required for the making of regulations under this section. (6) In this section, “prescribed” means prescribed by or determined in accordance with regulations made by the GEMA.
Propose a change(1) The GEMA must, each year, prepare and publish a statement setting out a strategic direction for designated documents. (2) A statement prepared and published under subsection (1) is referred to in this Part as a “strategic direction statement”. (3) A strategic direction statement must in particular— (a) contain a strategic assessment of government policies, and of developments relating to the energy sector, that the GEMA considers will or may require the making of modifications to designated documents; (b) cover such other matters relating to designated documents as the Secretary of State may specify in regulations. (4) In preparing a strategic direction statement, the GEMA must have regard to any advice given to it by the Independent System Operator and Planner so far as relevant to the matters referred to in subsection (3). (5) Before publishing a strategic direction statement in any year, the GEMA must— (a) publish a notice containing a draft of the document, (b) send a copy of the notice to the persons listed in subsection (6), and (c) consider any representations about the draft made within the period specified in the notice. (6) The persons referred to in subsection (5)(b) are— (a) the Secretary of State; (b) the National Association of Citizens Advice Bureaux; (c) the Scottish Association of Citizens Advice Bureaux; (d) Consumer Scotland. (7) A notice under subsection (5) must be published by the GEMA in whatever way it considers appropriate for the purpose of bringing the matters contained in it to the attention of persons likely to be affected by them.
Propose a change(1) The Secretary of State may by regulations amend section 190 so as to provide for functions under that section to be exercisable by the Independent System Operator and Planner (instead of by the GEMA). (2) Before making regulations under this section, the Secretary of State must consult— (a) the GEMA, (b) the Independent System Operator and Planner, and (c) any other persons whose interests are likely to be affected by the proposal. (3) Regulations under this section— (a) must repeal section 190(4); (b) must add the GEMA to the list of persons in section 190(6); (c) may make such other amendments to section 190 as the Secretary of State considers appropriate.
Propose a change(1) The GEMA may modify a designated document if any of subsections (2) to (6) applies. (2) This subsection applies where the GEMA considers that— (a) the designated document needs to be modified as a matter of urgency, (b) the making of the modification is likely to be delayed if done in accordance with the normal modification procedures for the document, and (c) such a delay would have adverse effects on— (i) consumers, or (ii) any person with rights or obligations under the document, other than the GEMA. (3) This subsection applies where the GEMA considers that a financial or other interest of the code manager in respect of the matter to which the modification relates is likely to prejudice the making of the modification if done in accordance with the normal modification procedures for the document. (4) This subsection applies where the GEMA considers that— (a) the modification is required for the purpose of implementing a strategic direction statement under section 190, and (b) the nature of the modification (for example, its complexity) is such that it needs to be made under this section rather than in accordance with the normal modification procedures for the designated document. (5) This subsection applies where the GEMA considers that the modification is required in connection with the incorporation of the whole or part of the provision made by the designated document into another document (whether or not a designated document). (6) This subsection applies where the GEMA considers that the modification is required in consequence of the exercise of any power conferred by Schedule 12 (transitional provisions) in relation to a different document. (7) The Secretary of State may by regulations make— (a) provision specifying requirements to be met in relation to the exercise of the power under subsection (1); (b) provision supplementing subsections (2) to (6). (8) References in this section to the normal modification procedures for a designated document are to provision, relating to the procedure for modifying the document, that— (a) is contained in the document, or (b) applies pursuant to any condition of a licence in accordance with which the document is maintained.
Propose a change(1) Before making a modification under section 192, the GEMA must— (a) publish a notice about the proposed modification, (b) send a copy of the notice to the persons listed in subsection (2), and (c) consider any representations made within the period specified in the notice about the proposed modification or the date from which it would take effect. (2) The persons mentioned in subsection (1)(b) are— (a) the Secretary of State, (b) the code manager in relation to the designated document to which the proposed modification relates, and (c) such other persons as the GEMA considers appropriate. (3) A notice under subsection (1) must— (a) state that the GEMA proposes to make a modification; (b) set out the proposed modification and its effect; (c) specify the date from which the GEMA proposes that the modification will have effect; (d) state— (i) why the GEMA is seeking to make the modification under section 192 (by reference to whichever of subsections (2) to (6) of section 192 applies), and (ii) the reasons for the proposed modification. (4) If, within the period specified by virtue of subsection (1)(c), the Secretary of State directs the GEMA not to make the proposed modification, the GEMA must comply with the direction. (5) If, after complying with subsections (1) to (3) in relation to a proposed modification, the GEMA decides to make a modification, it must publish a notice about the decision. (6) A notice under subsection (5) must— (a) state that the GEMA has decided to make the modification; (b) set out the modification and its effect; (c) specify the date from which the modification has effect; (d) state how the GEMA has taken account of any representations made in the period specified in the notice under subsection (1); (e) state the reason for any differences between the modification set out in the notice and the proposed modification. (7) A notice under this section about a proposed modification or a decision must be published in such manner as the GEMA considers appropriate for bringing it to the attention of those likely to be affected by the making of the modification or decision.
Propose a change(1) The GEMA may give a direction to the responsible body in relation to a designated central system for the purpose of ensuring that the body— (a) complies with its obligations under a relevant designated document, or (b) takes such steps as the GEMA considers may be necessary for the efficient operation or implementation of the provisions of a relevant designated document. (2) When determining whether to give a direction under this section, the GEMA must have regard to the ability of the responsible body to whom the direction would be given— (a) to recover any costs reasonably incurred by the body in complying with the direction, and (b) to comply with the direction without contravening any obligations of the body under a relevant designated document or in relation to the operation of the designated central system. (3) A responsible body must comply with a direction given to it under this section. (4) In this section and section 195, “relevant designated document”, in relation to a designated central system, means a designated document in respect of which the central system has a function mentioned in section 184(2).
Propose a change(1) Before giving a direction under section 194, the GEMA must— (a) publish a notice about the proposed direction, (b) send a copy of the notice to the persons listed in subsection (2), and (c) consider any representations made within the period specified in the notice about the proposed direction or the date from which it would take effect. (2) The persons mentioned in subsection (1)(b) are— (a) the responsible body to whom the direction is proposed to be given, and (b) the code manager in relation to the relevant designated document. (3) A notice under subsection (1) must— (a) state that the GEMA proposes to give a direction; (b) set out the proposed direction and its effect; (c) specify the date from which the GEMA proposes that the direction will have effect; (d) state the reasons why the GEMA proposes to give the direction. (4) If, after complying with subsections (1) to (3) in relation to a direction, the GEMA decides to give a direction, it must publish a notice about the decision. (5) A notice under subsection (4) must— (a) state that the GEMA has decided to give the direction; (b) set out the direction and its effect; (c) specify the date from which the direction has effect; (d) state how the GEMA has taken account of any representations made in the period specified in the notice under subsection (1); (e) state the reason for any differences between the direction set out in the notice and the proposed direction. (6) A notice under this section about a proposed direction or a decision must be published in such manner as the GEMA considers appropriate for bringing it to the attention of those likely to be affected by the making of the direction or decision.
Propose a changeSections 4AA to 4B of the Gas Act 1986 and sections 3A to 3D of the Electricity Act 1989 (principal objective and general duties) apply in relation to the functions under this Part of the Secretary of State and of the GEMA as they apply in relation to functions of the Secretary of State and of the GEMA under Part 1 of that Act.
Propose a change(1) Section 5 of the Utilities Act 2000 (annual and other reports of the GEMA) is amended as follows. (2) After subsection (3) insert— (3A) The annual report for each year must also include an overview of— (a) developments relating to documents designated for the purposes of Part 6 of the Energy Act 2023 (governance of gas and electricity industry codes); (b) decisions made by the Authority during the year in relation to such documents, including details of any modifications made under section 192 of the Energy Act 2023.
Propose a change(1) Regulations under this Part are subject to the negative procedure, subject to subsection (2). (2) Regulations under section 191 are subject to the affirmative procedure.
Propose a change