In this Part—
“central system” and “designated central system” have the meaning given by section 184;
“code manager”, in relation to a designated document, has the meaning given by section 183(1);
“code manager licence” has the meaning given by section 183(2);
“designated document” has the meaning given by section 182(1);
“the Independent System Operator and Planner” means the person for the time being designated under section 162(1);
“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);
“responsible body”, in relation to a designated central system, has the meaning given by section 184(4).
200 Transitional provision and pension arrangements
(1) Schedule 12 contains transitional provision in connection with this Part.
(2) Schedule 13 contains provision about pension arrangements in connection with this Part.
202 Principal objectives of Secretary of State and GEMA
(1) Section 4AA of the Gas Act 1986 (principal objective and general duties of Secretary of State and GEMA) is amended as set out in subsections (2) and (3).
(2) In subsection (1A)(a), for “the reduction of gas-supply emissions of targeted greenhouse gases” substitute “the Secretary of State’s compliance with the duties in sections 1 and 4(1)(b) of the Climate Change Act 2008 (net zero target for 2050 and five-year carbon budgets)”.
(3) In subsection (5B), omit the definitions of “emissions”, “gas-supply emissions” and “targeted greenhouse gases”.
(4) Section 3A of the Electricity Act 1989 (principal objective and general duties of Secretary of State and GEMA) is amended as set out in subsections (5) and (6).
(5) In subsection (1A)(a), for “the reduction of electricity-supply emissions of targeted greenhouse gases” substitute “the Secretary of State’s compliance with the duties in sections 1 and 4(1)(b) of the Climate Change Act 2008 (net zero target for 2050 and five-year carbon budgets)”.
(6) In subsection (5B), omit the definitions of “emissions”, “electricity-supply emissions” and “targeted greenhouse gases”.
(1) Schedule 15 contains amendments of the Electricity Act 1989 in connection with enabling competitive tendering for electricity projects.
(2) The power conferred by section 330(1) (consequential provision) includes, in particular, power to amend provision inserted in the Electricity Act 1989 by Schedule 15 where the amendment is consequential on the coming into force of paragraph 4 of Schedule 11.
(1) Schedule 16 makes provision about mergers of energy network enterprises.
(2) The Secretary of State must carry out a review of the operation of sections 68A to 68F of, and Schedule 5A to, the Enterprise Act 2002 (inserted by Schedule 16) before the end of the period of 5 years beginning with the day on which paragraph 2 of Schedule 16 to this Act comes into force.
(3) The Secretary of State must set out the conclusions of the review in a report.
(4) The report must, in particular—
(a) set out the objectives of the provisions subject to review,
(b) assess the extent to which those objectives have been achieved, and
(c) assess whether those objectives remain appropriate and, if so, the extent to which those objectives could be achieved in a way that imposes less regulation.
(5) The Secretary of State must lay the report before Parliament.
(1) The Secretary of State may by regulations make consequential, supplementary, incidental, transitional or saving provision in connection with sections 205 to 208.
(2) The provision that may be made by virtue of subsection (1) includes provision amending, repealing or revoking an Act of Parliament or retained direct EU legislation.
(3) Before making regulations under subsection (1), the Secretary of State must consult—
(a) the GEMA, and
(b) such other persons as the Secretary of State considers appropriate.
(4) Regulations under subsection (1) are subject to the affirmative procedure.
211 Electricity support payments for energy-intensive industries
(1) The Secretary of State may make regulations requiring payments (“electricity support payments”) to be made to a person who carries out an energy-intensive activity, for the purpose of alleviating the impact on the person of electricity costs.
(2) In subsection (1), “energy-intensive activity” means an activity (or description of activity) that is designated as such in the regulations.
(3) The regulations may make provision—
(a) about the circumstances in which a person is eligible for electricity support payments;
(b) about how eligibility is to be considered and determined;
(c) setting out a process for applying for electricity support payments, including provision about the form and content of applications;
(d) about the calculation of electricity support payments;
(e) requiring a person to provide information that is relevant to their eligibility for electricity support payments or to the calculation of any such payments;
(f) requiring a person who supplies electricity to another person to provide information that is relevant to the matters mentioned in paragraph (e) (whether to the person to whom the information relates or to another person specified in the regulations);
(g) about the sharing of information provided by virtue of paragraph (e) or (f);
(h) requiring past electricity support payments to be repaid (with or without interest) in circumstances specified in the regulations;
(i) about how amounts repaid by virtue of paragraph (h) are to be applied (including provision for amounts to be held in reserve or paid into the Consolidated Fund);
(j) for the enforcement of obligations imposed by or under the regulations (including provision about interest on late payments and imposing financial penalties);
(k) about the resolution of disputes, including provision about arbitration or appeals (which may in particular include provision for the person conducting an arbitration or determining an appeal to order the payment of costs or expenses or compensation).
(4) Where by virtue of subsection (3)(j) the regulations provide for the imposition of a financial penalty, they must also provide for a right of appeal against the imposition of the penalty.
(5) The regulations may—
(a) appoint a person, with the person’s consent, to carry out functions in connection with electricity support payments (a “support payment administrator”);
(b) confer functions on the support payment administrator;
(c) require the support payment administrator to provide information or assistance to the Secretary of State, or to another person specified in the regulations, in relation to any functions so conferred.
(6) Where—
(a) the regulations impose a requirement on a regulated person (as defined by section 25(8) of the Electricity Act 1989),
(b) the requirement is enforceable by a support payment administrator, and
(c) the support payment administrator is the GEMA,
the regulations may provide for the requirement to be enforceable by the GEMA as if it were a relevant requirement imposed on the person for the purposes of section 25 of that Act.
(7) The regulations may provide for any sum—
(a) that a person is required under the regulations to pay to the Secretary of State or to a support payment administrator, and
(b) that has not been paid by the date required,
to be recoverable from the person as a civil debt due to the Secretary of State or to the support payment administrator (as the case may be).
(8) The regulations may make provision about the terms of a support payment administrator’s appointment, including provision—
(a) for the support payment administrator to be remunerated, or compensated for costs that they incur;
(b) about how an appointment may be terminated by the Secretary of State or by the support payment administrator, and when termination takes effect.
(9) If functions of a support payment administrator (“the outgoing administrator”) are to be taken on by another support payment administrator or by the Secretary of State (“the successor”), the regulations may—
(a) require the outgoing administrator to take steps specified in the regulations to enable or facilitate the carrying out of those functions by the successor;
(b) provide for the transfer of any property, rights or liabilities from the outgoing administrator to the successor;
(c) provide for anything done by or in relation to the outgoing administrator in connection with any property, rights or liabilities to be treated as done, or to be continued, by or in relation to the successor.
“Property” in this subsection includes interests of any description.
(10) Regulations under this section may confer a discretion on the Secretary of State or on a support payment administrator.
(11) Regulations under this section are subject to the affirmative procedure.
(1) The Secretary of State may make regulations requiring the payment of a levy by electricity suppliers for the purpose of funding—
(a) the making of electricity support payments by virtue of section 211 (including expected future payments);
(b) any other costs arising by virtue of section 211 or this section (including expected future costs).
(2) The regulations may make provision—
(a) about the calculation of the levy;
(b) requiring electricity suppliers to provide financial collateral in respect of their obligations to pay the levy, and about the form and terms of such collateral;
(c) for the issuing of notices to require the payment of the levy or the provision of collateral;
(d) for the provision of copies of such notices to persons specified in the regulations or for the publication of such notices;
(e) about how amounts of levy are to be applied once paid (including provision for amounts to be held in reserve or paid into the Consolidated Fund);
(f) for the recovery of unpaid amounts of levy in the event of the insolvency or default of an electricity supplier (including provision requiring amounts to be borne by other electricity suppliers in accordance with the regulations);
(g) requiring electricity suppliers or the GEMA to provide information that is needed to determine—
(i) what an electricity supplier’s obligations are in relation to the levy, or
(ii) whether an electricity supplier has complied with those obligations;
(h) about the sharing of information provided by virtue of paragraph (g);
(i) for the enforcement of obligations imposed by or under the regulations (including provision about interest on late payments and imposing financial penalties);
(j) about the resolution of disputes, including provision about arbitration or appeals (which may in particular include provision for the person conducting an arbitration or determining an appeal to order the payment of costs or expenses or compensation).
(3) Where by virtue of subsection (2)(i) the regulations provide for the imposition of a financial penalty, they must also provide for a right of appeal against the imposition of the penalty.
(4) The regulations may—
(a) appoint a person, with the person’s consent, to carry out functions in connection with the levy (a “levy administrator”);
(b) confer functions on the levy administrator;
(c) require the levy administrator to provide information or assistance to the Secretary of State, or to another person specified in the regulations, in relation to any functions so conferred.
(5) Where—
(a) the regulations impose a requirement on a regulated person (as defined by section 25(8) of the Electricity Act 1989),
(b) the requirement is enforceable by a levy administrator, and
(c) the levy administrator is the GEMA,
the regulations may provide for the requirement to be enforceable by the GEMA as if it were a relevant requirement imposed on the person for the purposes of section 25 of that Act.
(6) The regulations may provide for any sum—
(a) that a person is required under the regulations to pay to the Secretary of State or to a levy administrator, and
(b) that has not been paid by the date required,
to be recoverable from the person as a civil debt due to the Secretary of State or to the levy administrator (as the case may be).
(7) The regulations may make provision about the terms of a levy administrator’s appointment, including provision—
(a) for the levy administrator to be remunerated, or compensated for costs that they incur;
(b) about how an appointment may be terminated by the Secretary of State or by the levy administrator, and when termination takes effect.
(8) If functions of a levy administrator (“the outgoing administrator”) are to be taken on by another levy administrator or by the Secretary of State (“the successor”), the regulations may—
(a) require the outgoing administrator to take steps specified in the regulations to enable or facilitate the carrying out of those functions by the successor;
(b) provide for the transfer of any property, rights or liabilities from the outgoing administrator to the successor;
(c) provide for anything done by or in relation to the outgoing administrator in connection with any property, rights or liabilities to be treated as done, or to be continued, by or in relation to the successor.
“Property” in this subsection includes interests of any description.
(9) Regulations under this section may confer a discretion on the Secretary of State or on a levy administrator.
(10) Regulations under this section are subject to the affirmative procedure.
(11) In this section, “electricity supplier” means the holder of a licence under section 6(1)(d) of the Electricity Act 1989.
In section 4 of the Electricity Act 1989 (prohibition on unlicensed generation etc of electricity), after subsection (3) insert—
(3ZA) In subsection (1)(a), the reference to a person who generates electricity includes a reference to a person who generates electricity from stored energy.
(3ZB) In subsection (3ZA), “stored energy” means energy that—
(a) was converted from electricity, and
(b) is stored for the purpose of its future reconversion into electricity.
214 Payment as alternative to complying with certain energy company obligations
(1) In section 33BC of the Gas Act 1986 (promotion of reductions in carbon emissions: gas transporters and gas suppliers), after subsection (7B) insert—
(7C) The order may make provision as to circumstances in which a transporter or supplier may meet the whole or any part of a carbon emissions reduction target by making a buy-out payment.
(7D) In this section, “buy-out payment” means a payment—
(a) of an amount (“the buy-out price”) determined by the Secretary of State,
(b) to a person approved by the Administrator (an “approved person”),
(c) for a purpose approved by the Administrator (an “approved purpose”).
(7E) Provision made by virtue of subsection (7C) may include provision about the determination by the Secretary of State of the buy-out price, including provision—
(a) enabling the Secretary of State to set different buy-out prices—
(i) for different parts of the period to which the order relates;
(ii) for different cases (including different buy-out prices for different transporters or suppliers);
(b) requiring the Secretary of State to publish the buy-out price.
(7F) If the order makes provision by virtue of subsection (7C), the order may also make provision—
(a) as to the procedure to be followed by the Administrator in approving a person as an approved person or a purpose as an approved purpose;
(b) specifying criteria by reference to which the Administrator is to determine whether to approve a person or purpose.
(7G) Provision made by virtue of subsection (7C) may include further provision about buy-out payments, including in particular provision—
(a) as to the procedure to be followed by a transporter or supplier who proposes to make a buy-out payment, including provision—
(i) requiring a transporter or supplier to notify the Administrator of specified matters by a specified time;
(ii) as to circumstances in which a transporter or supplier must make the buy-out payment to which notification given to the Administrator relates;
(iii) about the process for seeking approval of a person as an approved person, or of a purpose as an approved purpose;
(b) preventing a transporter or supplier from treating a buy-out payment as a payment pursuant to any other obligation (whether statutory or contractual), or vice versa;
(c) setting out circumstances in which a requirement imposed on a transporter or supplier by provision made by virtue of subsection (5)(ba) or (bb) may be—
(i) met, in whole or in part, by the making of a buy-out payment;
(ii) varied as a result of a buy-out payment;
(d) about the effect of provision included in the order by virtue of subsection (7)(c) to (e) on a person’s ability to meet the whole or any part of a carbon emissions reduction target by making a buy-out payment.
(7H) Where an order includes provision for the making of a buy-out payment, the references in subsections (5)(be) and (7)(b) to action include a reference to the making of a buy-out payment.
(2) In section 33BCA of the Gas Act 1986 (Scottish Ministers’ promotion of reductions in carbon emissions: gas suppliers)—
(a) in subsection (3)—
(i) in paragraph (b), after “(7)(a)” insert “, (7C), (7E)”;
(ii) after paragraph (c) insert—
(ca) in subsection (7F), for “order makes” is substituted “Secretary of State has made”;
(cb) in subsection (7G), for “(7C)” is substituted “(7F)”;
(cc) in subsection (7H), for “an order includes” is substituted “the Secretary of State has made”;
;
(iii) in paragraph (g), after “place” insert “other than in subsection (7D)(a)”;
(b) in subsection (9)(a), for “or (7)(a)” substitute “, (7)(a), (7C) or (7E)”.
(3) In section 33BDA of the Gas Act 1986 (Scottish Ministers’ promotion of reductions in home-heating costs: gas suppliers)—
(a) in subsection (3)—
(i) in paragraph (c), after “(7)(a)” insert “, (7C), (7E)”;
(ii) after paragraph (d) insert—
(da) in section 33BC(7F) as applied by subsection (4), for “order makes” is substituted “Secretary of State has made”;
(db) in section 33BC(7G) as applied by subsection (4), for “(7C)” is substituted “(7F)”;
(dc) in section 33BC(7H) as applied by subsection (4), for “an order includes” is substituted “the Secretary of State has made”;
;
(iii) in paragraph (h), after “subsection (4)” insert “other than in section 33BC(7D)(a)”;
(b) in subsection (9)(b), for “or (7)(a)” substitute “(7)(a), (7C) or (7E)”.
(4) In section 41A of the Electricity Act 1989 (promotion of reductions in carbon emissions: electricity distributors and electricity suppliers), after subsection (7B) insert—
(7C) The order may make provision as to circumstances in which a distributor or supplier may meet the whole or any part of a carbon emissions reduction target by making a buy-out payment.
(7D) In this section, “buy-out payment” means a payment—
(a) of an amount (“the buy-out price”) determined by the Secretary of State,
(b) to a person approved by the Administrator (an “approved person”),
(c) for a purpose approved by the Administrator (an “approved purpose”).
(7E) Provision made by virtue of subsection (7C) may include provision about the determination by the Secretary of State of the buy-out price, including provision—
(a) enabling the Secretary of State to set different buy-out prices—
(i) for different parts of the period to which the order relates;
(ii) for different cases (including different buy-out prices for different distributors or suppliers);
(b) requiring the Secretary of State to publish the buy-out price.
(7F) If the order makes provision by virtue of subsection (7C), the order may also make provision—
(a) as to the procedure to be followed by the Administrator in approving a person as an approved person or a purpose as an approved purpose;
(b) specifying criteria by reference to which the Administrator is to determine whether to approve a person or purpose.
(7G) Provision made by virtue of subsection (7C) may include further provision about buy-out payments, including in particular provision—
(a) as to the procedure to be followed by a distributor or supplier who proposes to make a buy-out payment, including provision—
(i) requiring a distributor or supplier to notify the Administrator of specified matters by a specified time;
(ii) as to circumstances in which a distributor or supplier must make the buy-out payment to which notification given to the Administrator relates;
(iii) about the process for seeking approval of a person as an approved person, or of a purpose as an approved purpose;
(b) preventing a distributor or supplier from treating a buy-out payment as a payment pursuant to any other obligation (whether statutory or contractual), or vice versa;
(c) setting out circumstances in which a requirement imposed on a distributor or supplier by provision made by virtue of subsection (5)(ba) or (bb) may be—
(i) met, in whole or in part, by the making of a buy-out payment;
(ii) varied as a result of a buy-out payment;
(d) about the effect of provision included in the order by virtue of subsection (7)(c) to (e) on a person’s ability to meet the whole or any part of a carbon emissions reduction target by making a buy-out payment.
(7H) Where an order includes provision for the making of a buy-out payment, the references in subsections (5)(be) and (7)(b) to action include a reference to the making of a buy-out payment.
(5) In section 41AA of the Electricity Act 1989 (Scottish Ministers’ promotion of reductions in carbon emissions: electricity suppliers)—
(a) in subsection (3)—
(i) in paragraph (b), after “(7)(a)” insert “, (7C), (7E)”;
(ii) after paragraph (c) insert—
(ca) in subsection (7F), for “order makes” is substituted “Secretary of State has made”;
(cb) in subsection (7G), for “(7C)” is substituted “(7F)”;
(cc) in subsection (7H), for “an order includes” is substituted “the Secretary of State has made”;
;
(iii) in paragraph (g), after “place” insert “other than in subsection (7D)(a)”;
(b) in subsection (9)(a), for “or (7)(a)” substitute “, (7)(a), (7C) or (7E)”.
(6) In subsection 41BA of the Electricity Act 1989 (Scottish Ministers’ promotion of reductions in home-heating costs: electricity suppliers)—
(a) in subsection (3)—
(i) in paragraph (c), after “(7)(a)” insert “, (7C), (7E)”;
(ii) after paragraph (d) insert—
(da) in section 41A(7F) as applied by subsection (4), for “order makes” is substituted “Secretary of State has made”;
(db) in section 41A(7G) as applied by subsection (4), for “(7C)” is substituted “(7F)”;
(dc) in section 41A(7H) as applied by subsection (4), for “an order includes” is substituted “the Secretary of State has made”;
;
(iii) in paragraph (h), after “subsection (4)” insert “other than in section 41A(7D)(a)”;
(b) in subsection (9)(b), for “or (7)(a)” substitute “, (7)(a), (7C) or (7E)”.
215 Smart meters: extension of time for exercise of powers
(1) In section 88(5) of the Energy Act 2008 (expiry of power to amend licence conditions etc: smart meters), for “1 November 2023” substitute “1 November 2028”.
(2) In the Gas Act 1986—
(a) in section 8AA(10D) (expiry of provisions requiring proposed transfer of smart meter communication licence to be notified to Secretary of State), for “1 November 2023” substitute “1 November 2028”;
(b) in section 41HB(2) (time limit for exercise of power to provide for activities connected with smart meters to be licensable activities), for “1 November 2023” substitute “1 November 2028”.
(3) In the Electricity Act 1989—
(a) in section 7A(10D) (expiry of provisions requiring proposed transfer of smart meter communication licence to be notified to Secretary of State), for “1 November 2023” substitute “1 November 2028”;
(b) in section 56FB(2) (time limit for exercise of power to provide for activities connected with smart meters to be licensable activities), for “1 November 2023” substitute “1 November 2028”.
(4) Subsections (5) and (6) apply if this section comes into force after 1 November 2023.
(5) Section 89(1) of the Energy Act 2008 (duty to consult on modifications) may be satisfied by consultation before, as well as by consultation after, 1 November 2023.
(6) Where—
(a) on or before 1 November 2023 the Secretary of State has, in accordance with section 89(3) of the Energy Act 2008, laid before Parliament a draft of proposed modifications under section 88 of that Act, and
(b) on that date the 40-day period referred to in section 89(4) of that Act has not expired,
in calculating that 40-day period no account is to be taken of the period beginning with 2 November 2023 and ending immediately before the day on which this section comes into force.
(7) In the Smart Meters Act 2018, omit section 1.
(1) In this Chapter, “relevant heat network” means—
(a) a district heat network, or
(b) a communal heat network.
(2) In this section—
“communal heat network” means a heat network by means of which heating, cooling or hot water is supplied only to a single building divided into separate premises or persons in those premises;
“district heat network” means a heat network by means of which heating, cooling or hot water is supplied to two or more buildings or persons in those buildings;
“heat network” means a network that, by distributing a liquid or a gas, enables the transfer of thermal energy for the purpose of supplying heating, cooling or hot water to a building or persons in that building (and includes any appliance the main purpose of which is to heat or cool the liquid or gas).
(3) For the purposes of subsection (2), a network is not excluded from being a heat network only by reason of its being designed to rely wholly or in part on heat pumps particular to the buildings or premises served by the network.
(4) The Secretary of State may by regulations amend this section for the purposes of changing the definitions of “relevant heat network”, “district heat network”, “communal heat network” and “heat network”.
(5) Regulations under this section are subject to the affirmative procedure.
(1) In this Chapter, “the Regulator” means—
(a) in relation to England and Wales and Scotland, the GEMA, and
(b) in relation to Northern Ireland, the NIAUR.
(2) The Secretary of State may by regulations provide for functions of the Regulator in relation to England and Wales and Scotland to be carried out, to the extent specified in the regulations, by a person or body other than the GEMA.
(3) The Department may by regulations provide for functions of the Regulator in relation to Northern Ireland to be carried out, to the extent specified in the regulations, by a person or body other than the NIAUR.
(4) The Secretary of State may by regulations make such amendments of this Part as appear to the Secretary of State to be appropriate in consequence of provision made by virtue of subsection (2) or (3).
(5) The Department may by regulations make such amendments of this Part as appear to the Department to be appropriate in consequence of provision made by virtue of subsection (3).
(6) Regulations made by the Secretary of State under this section are subject to the affirmative procedure.
(7) The power of the Department to make regulations under this section is exercisable by statutory rule for the purposes of the Statutory Rules (Northern Ireland) Order 1979 (S.I. 1979/1573 (N.I. 12)).
(8) Regulations made by the Department under this section may not be made unless a draft of the regulations has been laid before and approved by a resolution of the Northern Ireland Assembly.
(1) The appropriate authority may by regulations make provision for the purposes of—
(a) regulating relevant heat networks, or
(b) conferring powers in relation to the development or maintenance of relevant heat networks.
(2) Schedule 18 contains further provision about the power to make regulations under this section.
(3) The provision made in Schedule 18 is without prejudice to the generality of subsection (1).
(4) Regulations under this section may—
(a) contain such consequential, incidental, supplementary, transitional or saving provisions as the appropriate authority considers appropriate;
(b) make different provision for different purposes;
(c) provide for a person to exercise discretion in dealing with any matter.
(5) Regulations made by the Secretary of State by virtue of subsection (4)(a) may include—
(a) provisions amending or repealing an Act of Parliament, an Act or Measure of Senedd Cymru or Northern Ireland legislation;
(b) provisions amending the Heat Networks (Scotland) Act 2021 (asp 9).
(6) Regulations made by the Department by virtue of subsection (4)(a) may include provisions amending or repealing Northern Ireland legislation.
(7) Before making any regulations under this section, the appropriate authority is to consult such persons or bodies as it may consider appropriate.
(8) It is immaterial for the purposes of subsection (7) whether consultation is carried out before or after the coming into force of this section.
(9) In this section “the appropriate authority” means—
(a) in relation to England and Wales and Scotland, the Secretary of State;
(b) in relation to Northern Ireland, the Department.
220 Regulations made by Secretary of State: consultation with devolved authorities
(1) This section applies where—
(a) the Secretary of State proposes to make regulations under section 219 by virtue of any of Parts 3, 4, 5, 7, 8, 10, 11 and 12 of Schedule 18, and
(b) the regulations contain—
(i) in the case of regulations made by virtue of Part 3, 4, 7, 8, 10, 11 or 12 of Schedule 18, provision within Scottish devolved competence;
(ii) in the case of regulations made by virtue of Part 5 of Schedule 18, provision within Welsh devolved competence.
(2) Before making the regulations, the Secretary of State must give notice—
(a) stating that the Secretary of State proposes to make the regulations,
(b) setting out or describing—
(i) so far as the regulations are made as mentioned in subsection (1)(b)(i), the provision within Scottish devolved competence,
(ii) so far as the regulations are made as mentioned in subsection (1)(b)(ii), the provision within Welsh devolved competence, and
(c) specifying the period (of not less than 28 days from the date on which the notice is given) within which representations may be made with respect to those provisions,
and must consider any representations duly made and not withdrawn.
(3) A notice under subsection (2) must be given to each relevant devolved authority, that is to say—
(a) the Scottish Ministers, if the regulations are made as mentioned in subsection (1)(b)(i) and contain provision within Scottish devolved competence;
(b) the Welsh Ministers, if the regulations are made as mentioned in subsection (1)(b)(ii) and contain provision within Welsh devolved competence.
(4) The Secretary of State need not wait until the end of the period specified under subsection (2)(c) before making regulations if, before the end of that period, each relevant devolved authority to which the notice was given has confirmed that it has made any representations it intends to make with respect to the provision referred to in subsection (2)(b)(i) or (ii) (as the case may be).
(5) The Secretary of State must, if requested to do so by a relevant devolved authority, give the authority a statement setting out whether and how representations made by the authority with respect to the provision referred to in subsection (2)(b)(i) or (ii) (as the case may be) have been taken into account in the regulations.
(6) For the purposes of this section, provision—
(a) is within Scottish devolved competence if it would be within the legislative competence of the Scottish Parliament if it were contained in an Act of that Parliament;
(b) is within Welsh devolved competence if it would be within the legislative competence of Senedd Cymru if it were contained in an Act of the Senedd (ignoring any requirement for the consent of a Minister of the Crown imposed under Schedule 7B to the Government of Wales Act 2006).
221 Heat networks regulations: other provision about procedure
(1) The first regulations to be made by the Secretary of State under section 219 are subject to the affirmative procedure.
(2) The following regulations made by the Secretary of State are also subject to the affirmative procedure—
(a) regulations under section 219 which are made by virtue of—
(i) paragraph 12(1) of Schedule 18,
(ii) paragraph 23(1) of Schedule 18,
(iii) paragraph 32 of Schedule 18,
(iv) any provision of Part 8 or 9 of Schedule 18, or
(v) paragraph 56 of Schedule 18;
(b) regulations under section 219 which create an offence or provide for an increase in the penalty for an existing offence;
(c) regulations under section 219 which amend or repeal any provision of legislation mentioned in section 219(5).
(3) Any other regulations made by the Secretary of State under section 219 are subject to the negative procedure.
(4) The power of the Department to make regulations under section 219 is exercisable by statutory rule for the purposes of the Statutory Rules (Northern Ireland) Order 1979 (S.I. 1979/1573 (N.I. 12)).
(5) The first regulations to be made by the Department under section 219 may not be made unless a draft of the regulations has been laid before and approved by a resolution of the Northern Ireland Assembly.
(6) Regulations made by the Department under section 219 containing any of the following regulations (whether alone or with other regulations) may not be made unless a draft of the regulations has been laid before and approved by a resolution of the Northern Ireland Assembly—
(a) regulations under section 219 which are made by virtue of—
(i) paragraph 12(1) of Schedule 18,
(ii) paragraph 32 of Schedule 18,
(iii) any provision of Part 8 or 9 of Schedule 18, or
(iv) paragraph 56 of Schedule 18;
(b) regulations under section 219 which create an offence or provide for an increase in the penalty for an existing offence;
(c) regulations under section 219 which amend or repeal any provision of Northern Ireland legislation.
(7) Any other regulations made by the Department under section 219 are subject to negative resolution within the meaning of section 41(6) of the Interpretation Act (Northern Ireland) 1954 (c. 33 (N.I.)).
(1) The conditions of a licence under section 7, 7ZA, 7A or 7AB of the Gas Act 1986 or section 6 of the Electricity Act 1989 may require payment by the licence holder of sums relating to costs within subsection (2).
(2) The costs within this subsection are—
(a) costs of the GEMA—
(i) under regulations made under section 219, or
(ii) in its capacity as the licensing authority for the purposes of the Heat Networks (Scotland) Act 2021 (asp 9), if the GEMA is designated as such under section 223(1) of this Act,
(b) costs of a person other than the GEMA in carrying out, by virtue of section 217(2) or paragraph 5 of Schedule 18, functions of the Regulator,
(c) costs of holders of licences issued under Part 4 of Schedule 18 (code manager licences),
(d) costs incurred by the Secretary of State in giving financial assistance under regulations made by virtue of paragraph 50 of Schedule 18 (special administration regime),
(e) costs incurred by a person or body in providing, or arranging for the provision of, consumer advocacy and advice in relation to heat network consumers, and
(f) costs not within any of paragraphs (a) to (e) incurred by a person in exercising a function in relation to heat networks in England, Wales or Scotland (whether by virtue of regulations under section 219 or otherwise).
(3) The conditions of a licence under Article 8 of the Gas (Northern Ireland) Order 1996 (S.I. 1996/275 (N.I. 2)) or Article 10 of the Electricity (Northern Ireland) Order 1992 (S.I. 1992/231 (N.I. 1)) may require payment by the licence holder of sums relating to costs within subsection (4).
(4) The costs within this subsection are—
(a) costs of the NIAUR under regulations made under section 219,
(b) costs of a person other than the NIAUR in carrying out, by virtue of section 217(3) or paragraph 5 of Schedule 18, functions of the Regulator,
(c) costs incurred by the Department in giving financial assistance under regulations made by virtue of paragraph 50 of Schedule 18 (special administration regime),
(d) costs incurred by a person or body in providing, or arranging for the provision of, consumer advocacy and advice in relation to heat network consumers, and
(e) costs not within any of paragraphs (a) to (d) incurred by a person in exercising a function in relation to heat networks in Northern Ireland (whether by virtue of regulations under section 219 or otherwise).
223 Heat networks: licensing authority in Scotland
(1) The Secretary of State may by regulations designate the GEMA as the licensing authority for the purposes of the Heat Networks (Scotland) Act 2021 (asp 9).
(2) Regulations under subsection (1) are subject to the affirmative procedure.
(3) In section 4 of the Heat Networks (Scotland) Act 2021 (meaning of “licensing authority”)—
(a) at the beginning insert “(1)”;
(b) after the subsection (1) so formed insert—
(2) Subsection (1) is subject to subsection (3).
(3) If the Secretary of State designates the Gas and Electricity Markets Authority as the licensing authority for the purposes of this Act by regulations under section 223(1) of the Energy Act 2023, references in this Act to the licensing authority are references to the Gas and Electricity Markets Authority.
(1) The Secretary of State may by regulations amend the Heat Networks (Scotland) Act 2021 for the purpose of making provision about monitoring compliance with, or enforcement of, conditions of heat networks licences issued under section 5(5) of that Act.
(2) Regulations under this section may, in particular, make provision corresponding to the provision described in paragraphs 6 to 10, 37 to 40, 43, 72 and 73 of Schedule 18.
(3) Regulations under this section must provide for an offence created by the regulations—
(a) to be triable only summarily, and
(b) to be punishable on conviction with imprisonment for a period not exceeding 3 months or a fine not exceeding level 1 on the standard scale (or both).
(4) The Secretary of State may make regulations under this section only if the Secretary of State has also made regulations under section 223(1) (and those regulations are still in force).
(5) Regulations under this section are subject to the affirmative procedure.
In this Chapter—
“the Department” means the Department for the Economy in Northern Ireland;
“heat network” has the meaning given by section 216;
“the NIAUR” means the Northern Ireland Authority for Utility Regulation;
“the Regulator” has the meaning given by section 217;
“relevant heat network” has the meaning given by section 216.
(1) The Secretary of State may by regulations make provision about heat network zones (“zones regulations”).
(2) A heat network zone is an area in England that is designated as such under zones regulations by virtue of being appropriate for the construction and operation of one or more district heat networks.
(3) The provision made by this Chapter is without prejudice to the generality of subsection (1).
(4) Subject to subsection (5), zones regulations are subject to the affirmative procedure.
(5) Zones regulations which make provision of the kind described in section 229(1)(c) or (4)(c) or 230(2)(c) or (4) (and no other provision) are subject to the negative procedure.
(6) If, apart from this section, a draft of an instrument containing zones regulations would be treated for the purposes of the standing orders of either House of Parliament as a hybrid instrument, it is to proceed in that House as if it were not such an instrument.
(1) Zones regulations may designate a person to act as the Heat Network Zones Authority (referred to in this Chapter as “the Authority”).
(2) The purpose of the Authority is to carry out functions in relation to heat network zones conferred on it by zones regulations.
(3) The Secretary of State may, but need not, be designated for the purposes of subsection (1).
(4) Zones regulations may provide for the Authority to delegate any of its functions to persons specified in the regulations.
(1) Zones regulations may make provision about zone coordinators.
(2) The purpose of zone coordinators is to carry out functions conferred on them by zones regulations in relation to particular heat network zones.
(3) Regulations made by virtue of subsection (1) may—
(a) make provision for, or in connection with, the designation of a person as a zone coordinator by a local authority for its area, or a part or parts of its area (including the local authority designating itself);
(b) make provision for, or in connection with, the designation of a person as a zone coordinator by two or more local authorities for their areas or parts of their areas (including the local authorities designating one of themselves);
(c) make provision for, or in connection with, the establishment of a body by one or more local authorities which is intended to be designated as a zone coordinator in accordance with regulations made by virtue of paragraph (a) or (b);
(d) make provision about the funding of zone coordinators;
(e) make provision about the governance of zone coordinators;
(f) make provision about zone coordinators cooperating with the Regulator in relation to zone coordinators’ functions or the Regulator’s functions;
(g) make provision for the Authority to perform any function of a zone coordinator in circumstances, and subject to requirements, specified by the regulations;
(h) make provision for the Authority to direct a zone coordinator to perform any of its functions in the manner the Authority considers appropriate in circumstances, and subject to requirements, specified by the regulations.
(4) Regulations made by virtue of subsection (3)(a) and (b) may make provision for the Authority—
(a) to require a local authority, or two or more local authorities, to designate a person as a zone coordinator in circumstances, and subject to requirements, specified by the regulations;
(b) to designate a person as a zone coordinator where a local authority (or local authorities) fail to comply with a requirement imposed by virtue of paragraph (a).
(5) In this section, “local authority” means—
(a) a county, district or parish council in England;
(b) a London borough council;
(c) the Common Council of the City of London;
(d) the Council of the Isles of Scilly;
(e) a combined authority established under section 103 of the Local Democracy, Economic Development and Construction Act 2009;
(f) another body or person specified by zones regulations.
229 Identification, designation and review of zones
(1) Zones regulations may make provision for, or in connection with—
(a) the identification by the Authority and zone coordinators of areas which are appropriate for the construction and operation of one or more district heat networks,
(b) the designation of those areas as heat network zones by zone coordinators or the Authority, and
(c) the review by zone coordinators, or the Authority, of the designation of areas as heat network zones.
(2) Regulations made by virtue of subsection (1)(a) must require the identification of areas to be carried out in accordance with the zoning methodology established under section 230.
(3) Regulations made by virtue of subsection (1)(b) may—
(a) make provision about the variation or revocation of designations by zone coordinators or the Authority;
(b) make provision about procedure;
(c) make provision about the publication of designations (and the variation or revocation of designations);
(d) require zone coordinators to notify the Authority of designations (and the variation or revocation of designations);
(e) make provision for, or in connection with, the maintenance by the Authority of a register of areas designated as heat network zones.
(4) Regulations made by virtue of subsection (3)(a) may, in particular—
(a) specify the circumstances in which a zone coordinator or the Authority may vary or revoke a designation;
(b) specify the factors a zone coordinator or the Authority may or must take into consideration in determining whether to vary or revoke a designation;
(c) impose on zone coordinators or the Authority requirements as to consultation.
(5) Regulations made by virtue of subsection (1)(c) may—
(a) make provision about the circumstances in which reviews must be carried out and the frequency of reviews;
(b) set out the criteria against which the designation of areas as heat network zones is to be reviewed;
(c) impose on zone coordinators or the Authority requirements as to consultation;
(d) make provision requiring reports of reviews to be published.
(1) Zones regulations may make provision for a methodology (to be known as “the zoning methodology”) for the Authority and zone coordinators to identify areas which are appropriate for the construction and operation of one or more district heat networks.
(2) Regulations made by virtue of subsection (1) may include in the zoning methodology—
(a) the criteria for determining whether an area is appropriate;
(b) the roles of the Authority and zone coordinators;
(c) requirements as to consultation;
(d) provision about how the identification of areas is to be recorded, including provision about the use of maps;
(e) requirements as to publication of areas which have been identified.
(3) Zones regulations may make provision for the Authority to issue guidance in relation to the zoning methodology.
(4) Zones regulations may make provision about the Secretary of State carrying out reviews of the zoning methodology.
(5) Regulations made by virtue of subsection (4) may—
(a) make provision about the circumstances in which reviews must be carried out and the frequency of reviews;
(b) set out the criteria against which the zoning methodology is to be reviewed;
(c) impose on the Secretary of State requirements as to consultation;
(d) make provision for the Authority or zone coordinators to consult persons on behalf of the Secretary of State;
(e) make provision requiring reports of reviews to be published.
231 Requests for information in connection with section 229 or 230
(1) Zones regulations may make provision about the Authority and zone coordinators requesting information in connection with their functions under regulations made by virtue of section 229 or 230.
(2) Regulations made by virtue of subsection (1) may provide for—
(a) the Authority or a zone coordinator to request information by notice from a person of a description specified in the regulations;
(b) the requested information to be provided within the period, and in the form and manner, specified in the notice;
(c) the Authority or zone coordinator to impose a penalty on a person for not complying with the notice;
(d) the disclosing of information requested by the zone coordinator not to breach any obligation of confidence owed by the person making the disclosure or any other restriction on the disclosure of information (however imposed);
(e) a request for information not to require a disclosure of information if disclosure would contravene the data protection legislation (but for a requirement imposed by virtue of regulations made by virtue of subsection (1) to be taken into account in determining whether a disclosure would do so);
(f) zone coordinators to delegate functions conferred on them by regulations made by virtue of subsection (1) to a description of person, and in the circumstances and subject to the conditions, specified by the regulations.
(1) Zones regulations may make provision about heat networks within heat network zones.
(2) Regulations made by virtue of subsection (1) may, in particular—
(a) make provision imposing requirements on persons of a description specified in the regulations for the purpose of securing that buildings of types specified by the regulations situated within a heat network zone are connected to a district heat network within the zone—
(i) in circumstances specified by the regulations, and
(ii) within a time specified by, or determined in accordance with, the regulations;
(b) make provision about zone coordinators giving notice of requirements imposed by regulations made by virtue of paragraph (a) to persons on whom requirements are imposed;
(c) make provision about the grant by zone coordinators of exemptions from requirements imposed by regulations made by virtue of paragraph (a);
(d) make provision imposing requirements on persons of a description specified in the regulations for the purpose of securing that buildings of types specified by the regulations situated within a heat network zone are installed with communal heat networks—
(i) in circumstances specified by the regulations,
(ii) within a time specified by, or determined in accordance with, the regulations, and
(iii) in a manner that would allow the communal heat networks to be connected to a district heat network;
(e) make provision for, or in connection with, the requesting of information from a person, by notice given by a zone coordinator, about a source of thermal energy located on the person’s premises that may be suitable to supply a district heat network within a heat network zone;
(f) make provision for, or in connection with, the imposition of a requirement on a person, by notice given by a zone coordinator, to allow the installation of equipment on the person’s premises, and the connection of that equipment to a district heat network, to enable a source of thermal energy located on the premises to supply a district heat network within a heat network zone;
(g) make provision imposing requirements on persons of a description specified in the regulations for the purpose of securing that machinery and other equipment of types specified by the regulations are designed, and installed on premises, in a manner which would enable thermal energy generated by the machinery or other equipment to be supplied to a district heat network within a heat network zone;
(h) make provision about the terms on which thermal energy is supplied to a district heat network in pursuance of regulations made by virtue of paragraph (f) or (g) (including in particular provision about the amount that may be charged);
(i) make provision for, or in connection with, the setting by zone coordinators of limits on emissions of targeted greenhouse gases resulting from district heat networks within heat network zones;
(j) make provision about zone coordinators affording a grace period to a person who is required to comply with a limit imposed under regulations made by virtue of paragraph (i).
(3) Regulations made by virtue of subsection (2)(c) may—
(a) specify the criteria in accordance with which a zone coordinator is to determine an application for an exemption;
(b) make provision about procedure;
(c) specify how, and on what grounds, a refusal to grant an exemption may be appealed.
(4) Regulations made by virtue of subsection (2)(e) may—
(a) specify the information about the source of thermal energy that may be requested;
(b) require the requested information to be provided within the period, and in the form and manner, specified in the notice;
(c) provide for the disclosing of information requested by the zone coordinator not to breach any obligation of confidence owed by the person making the disclosure or any other restriction on the disclosure of information (however imposed);
(d) provide for a request for information not to require a disclosure of information if disclosure would contravene the data protection legislation (but for a requirement imposed by virtue of regulations made by virtue of subsection (2)(e) to be taken into account in determining whether a disclosure would do so);
(e) provide for zone coordinators to delegate functions conferred on them by regulations made by virtue of subsection (2)(e) to a description of person, and in circumstances and subject to conditions, specified by the regulations.
(5) Regulations made by virtue of subsection (2)(f) may—
(a) specify the types of sources of thermal energy in respect of which a zone coordinator may or must impose a requirement on a person and in what circumstances;
(b) make provision about the period within which a person must comply with a requirement;
(c) specify how, and on what grounds, a requirement imposed on a person in respect of a source of thermal energy may be appealed.
(6) Regulations made by virtue of subsection (2)(i) may—
(a) specify the manner and form in which the limits are to be set;
(b) require zone coordinators to obtain the consent of the Authority before setting a limit.
(7) Regulations made by virtue of subsection (2)(j) may—
(a) specify the circumstances in which a zone coordinator may or must afford a person a grace period;
(b) make provision for the Authority to issue guidance about grace periods;
(c) make provision about procedure;
(d) specify how, and on what grounds, a refusal to grant a grace period may be appealed.
(8) In subsection (2)(d), “communal heat network” has the meaning given by section 217(2).
(9) In subsection (2)(i), “emissions” and “targeted greenhouse gas” have the same meaning as in the Climate Change Act 2008 (see sections 24 and 97 of that Act).
(10) In subsections (2)(j) and (7), “grace period” means a period to comply before enforcement action is taken.
233 Delivery of district heat networks within zones
(1) Zones regulations may make provision about the delivery of district heat networks within heat network zones.
(2) Regulations made by virtue of subsection (1) may, in particular—
(a) make provision about zone coordinators deciding—
(i) what district heat networks may be constructed and operated within a heat network zone;
(ii) who will design, construct, operate and maintain district heat networks within heat network zones;
(b) make provision about zone coordinators designing, constructing, operating or maintaining district heat networks within heat network zones, or arranging for their design, construction, operation or maintenance;
(c) make provision about the giving of advice by the Authority to zone coordinators about the delivery of district heat networks within heat network zones.
(3) Regulations made by virtue of subsection (2)(a)(ii) may—
(a) make provision for the construction, operation or maintenance of district heat networks within heat network zones to be subject to the consent of zone coordinators;
(b) make provision for the grant by zone coordinators of an exclusive right to design, construct, operate or maintain district heat networks within heat network zones or parts of heat network zones.
(4) Regulations made by virtue of subsection (3)(b) may—
(a) make provision for the Authority to publish the standard conditions that zone coordinators must use when granting an exclusive right (and for the Authority to amend or replace the standard conditions);
(b) specify the circumstances in which zone coordinators may grant an exclusive right.
(5) Regulations made by virtue of subsection (2)(a) may—
(a) specify the manner and form of zone coordinators’ decisions under regulations made by virtue of subsection (2)(a);
(b) make provision for a zone coordinator to vary or revoke a decision;
(c) specify considerations a zone coordinator may or must take into account when making, varying or revoking a decision;
(d) make provision about procedure;
(e) make provision about the publication of a decision (or the variation or revocation of a decision);
(f) specify how, and on what grounds, a decision, or a variation or revocation of a decision, may be appealed;
(g) make provision for a zone coordinator to lose the power to decide the matters specified in subsection (2)(a)(i) and (ii), and instead for those matters to no longer be subject to the zone coordinator’s control, if the zone coordinator does not take steps specified by the regulations within a time specified by the regulations.
(1) Zones regulations may make provision about the enforcement of heat network zone requirements.
(2) Regulations made by virtue of subsection (1) may, in particular, provide for a zone coordinator—
(a) to issue a notice requiring a person to demonstrate compliance with a heat network zone requirement where the zone coordinator suspects that the person is not complying with the requirement;
(b) to issue a notice specifying steps a person is required to take in order to comply with a heat network zone requirement where the zone coordinator is satisfied that the person is not complying with the requirement;
(c) to impose a penalty on a person for the contravention of—
(i) a heat network zone requirement, or
(ii) a requirement imposed by a notice under regulations made by virtue of paragraph (a) or (b).
(3) Regulations made by virtue of subsection (2)(a) or (b) may—
(a) make provision about the period within which a person must comply with a notice;
(b) make provision about procedure;
(c) specify how, and on what grounds, a notice may be appealed.
(4) In this section, “heat network zone requirement” means a requirement imposed by or by virtue of regulations made by virtue of section 232 or 233.
(1) Zones regulations made by virtue of section 231(2)(c) or 234(2)(c) may—
(a) make provision about the maximum amount that may be imposed by way of penalty;
(b) make provision about procedure;
(c) specify how a penalty may be recovered;
(d) require sums received by way of penalty to be paid into the Consolidated Fund or to persons specified by the regulations.
(2) Zones regulations made by virtue of section 231(2)(c) or 234(2)(c) must include provision for a right of appeal against the imposition of a penalty.
(3) Zones regulations may provide for the publication of guidance by the Authority with respect to—
(a) the imposition of penalties under regulations made by virtue of section 231(2)(c) or 234(2)(c), and
(b) the determination of their amount.
(1) Zones regulations may make provision requiring zone coordinators to collect information specified by the regulations which—
(a) is relevant to identifying areas which are appropriate for the construction and operation of one or more district heat networks, or
(b) relates to areas designated as heat network zones.
(2) Zones regulations may make provision requiring zone coordinators to maintain records of—
(a) information provided to zone coordinators in response to requests for information made by zone coordinators under regulations made by virtue of section 231 or 232(2)(e);
(b) information zone coordinators are required to collect by regulations made by virtue of subsection (1) of this section;
(c) other information provided to, collected by, or otherwise brought into the possession of zone coordinators by virtue of their functions under zones regulations.
(3) Zones regulations may make provision enabling or requiring zone coordinators to provide information specified by the regulations from their records to—
(a) to other zone coordinators;
(b) the Authority;
(c) the Regulator.
(4) Zone regulations may require the Authority to maintain records of—
(a) information provided to the Authority in response to requests for information made by the Authority under regulations made by virtue of section 231;
(b) information provided by zone coordinators to the Authority in accordance with regulations made by virtue of subsection (3) of this section;
(c) other information provided to, collected by, or otherwise brought into the possession of the Authority by virtue of its functions under zones regulations.
(5) Zones regulations may make provision enabling or requiring the Authority to provide information specified by the regulations from its records to—
(a) zone coordinators;
(b) the Regulator.
(6) Zones regulations may make provision—
(a) for the disclosure of information by a zone coordinator or the Authority in accordance with regulations made by virtue of subsection (3) or (5) not to breach any obligation of confidence owed by the zone coordinator or the Authority or any other restriction on the disclosure of information (however imposed);
(b) for regulations made by virtue of subsection (3) or (5) not to authorise or require disclosure of information if disclosure would contravene the data protection legislation (but for a power conferred, or requirement imposed, by regulations made by virtue of subsection (3) or (5) to be taken into account in determining whether a disclosure would do so).
In this Chapter—
“the Authority” means the person designated as the Heat Network Zones Authority by regulations made by virtue of section 227(1);
“the data protection legislation” has the same meaning as in the Data Protection Act 2018 (see section 3 of that Act);
“district heat network” has the meaning given by section 216(2);
“heat network” has the meaning given by section 216(2);
“heat network zone” has the meaning given by section 226(2);
“the Regulator” has the meaning given by section 217(1)(a);
“zone coordinator” means a person designated as such under regulations made by virtue of section 228(3)(a);
“zones regulations” means regulations under section 226;
“the zoning methodology” has the meaning given by section 230(1).
(1) The following definitions apply for the purposes of this Part.
(2) “Energy smart appliance” means an appliance which is capable of adjusting the immediate or future flow of electricity into or out of itself or another appliance in response to a load control signal; and includes any software or other systems which enable or facilitate the adjustment to be made in response to the signal.
(3) The functionality described in subsection (2) is referred to as the “energy smart function”.
(4) “Load control signal” means a digital communication sent via a relevant electronic communications network to an energy smart appliance for the purpose of causing or otherwise facilitating such an adjustment.
(5) For the purposes of subsection (2) an adjustment to the flow of electricity into or out of an appliance is made in response to a load control signal whether it is made in response to—
(a) the sending of the signal, or
(b) the sending of the signal and one or more additional factors.
(6) The sending of a load control signal to an energy smart appliance is referred to as “load control”.
(7) Regulations under section 239, excluding regulations under section 239(6), are referred to as “energy smart regulations”.
(1) The Secretary of State may by regulations make provision about energy smart appliances that are—
(a) capable of being used in connection with any of the purposes specified in subsection (2), or
(b) charge points (for electric vehicles).
(2) The specified purposes are—
(a) refrigeration;
(b) cleaning tableware;
(c) washing or drying textiles;
(d) storing energy that—
(i) was converted from electricity, and
(ii) is stored for the purpose of its future reconversion into electricity;
(e) heating;
(f) air conditioning or ventilation.
(3) In making such regulations, the Secretary of State must, in particular, have regard to the desirability of ensuring that—
(a) the energy smart function or compatibility with that function is incorporated into appliances in a manner that is compliant with the regulations,
(b) the energy smart function does not undermine the delivery of a consistent and stable supply of electricity,
(c) the energy smart function in any energy smart appliance is capable of operating in response to load control signals from any person carrying out load control, and
(d) communications, software, systems and personal and other data used in connection with energy smart appliances are secure or otherwise protected, for purposes including the protection of end-users.
(4) Such regulations may, in particular—
(a) make provision about all energy smart appliances or any description of energy smart appliances;
(b) impose technical or other requirements in relation to such appliances, including requirements to display or otherwise provide information about appliances;
(c) prohibit the placing on the market of, or other activities in connection with, relevant appliances (see section 240(3));
(d) make provision about the recall of appliances to prevent, or in response to, non-compliance with the regulations;
(e) make provision for the Secretary of State to issue guidance about prohibitions or requirements imposed by or under the regulations;
(f) provide for the enforcement of the regulations.
(5) Such regulations may impose prohibitions or requirements on any person, including any person making, supplying, importing or distributing energy smart appliances or carrying out load control (but see section 240(6)).
(6) The Secretary of State may by regulations—
(a) make provision about the meaning that “relevant electronic communications network” is to have for the purposes of this Part;
(b) amend the list of purposes in subsection (2).
(7) In this Chapter, “charge point” has the same meaning as in Part 2 of the Automated and Electric Vehicles Act 2018 (see section 9 of that Act).
(1) Requirements imposed by energy smart regulations may, in particular, refer or relate to—
(a) published documents and standards (as they have effect from time to time);
(b) a list, published by the Secretary of State, of such documents and standards;
(c) requirements (however described) imposed by or under any enactment or Act of the Scottish Parliament.
(2) Prohibitions imposed by energy smart regulations may, in particular, relate to—
(a) the providing of load control for appliances that are not compliant with the regulations;
(b) the modification of appliances in a manner that would cause them to cease to be compliant with the regulations.
(3) The following kinds of appliances are “relevant appliances” for the purposes of section 239(4)(c)—
(a) energy smart appliances that are not compliant with requirements or particular requirements of energy smart regulations;
(b) appliances without the energy smart function, or that are not compatible with the energy smart function of another appliance, and are—
(i) charge points (for electric vehicles), or
(ii) electrical heating appliances.
(4) The reference in subsection (3)(b)(ii) to electrical heating appliances includes a reference to heat pumps.
(5) In this Chapter, “modification of appliances” has the meaning given by energy smart regulations.
(6) Energy smart regulations may not provide for a prohibition to be contravened by an end-user of an appliance (in their capacity as such) or for such a person to be enforced against as described in section 241 or 242.
(1) Provision for the enforcement of energy smart regulations may, in particular, include provision of a kind described in this section, section 242 or section 243.
(2) Energy smart regulations may include provision to ensure compliance with any prohibition or requirement imposed by or under the regulations, including provision—
(a) designating authorities to carry out enforcement (referred to in this Chapter as “enforcement authorities”);
(b) requiring persons to—
(i) maintain information;
(ii) monitor compliance and report non-compliance;
(iii) take specified steps to remedy non-compliance;
(c) requiring persons to supply evidence of their compliance to enforcement authorities;
(d) conferring powers of entry, including by reasonable force;
(e) conferring powers of inspection, search and seizure;
(f) conferring powers to require the production of information or things held at, or electronically accessible from, entered premises;
(g) conferring powers to enable the testing of energy smart appliances by enforcement authorities, including powers to require the provision of sample appliances and powers to make test purchases;
(h) conferring functions, including functions involving the exercise of a discretion.
(3) Regulations conferring powers described in subsection (2)(d), (e) or (f) must provide that persons exercising those powers are to produce evidence of their authority if required to do so.
(4) The regulations may not allow entry to premises by reasonable force without a warrant issued by a justice of the peace or, in Scotland, a sheriff or summary sheriff.
(5) Energy smart regulations may allow enforcement authorities to impose requirements by written notice on persons to—
(a) produce information or things;
(b) make appliances compliant with energy smart regulations;
(c) stop or limit—
(i) the placing on the market of, or other activities in connection with, appliances,
(ii) the providing of load control to appliances, or
(iii) the modification of appliances,
for the purpose of preventing or mitigating non-compliance with energy smart regulations;
(d) recall appliances to prevent, or in response to, non-compliance with energy smart regulations.
(6) Regulations that allow an enforcement authority to impose requirements may also provide for—
(a) the authority to apply to a court or tribunal in connection with a failure to comply with a requirement, and
(b) the court or tribunal, if satisfied that such a failure has occurred, to make an order for the purpose of securing compliance with the requirement.
(7) Such an order may require a person to take, or refrain from taking, steps specified in the order (including at, by or until specified times).
(8) Energy smart regulations may make provision to enable an enforcement authority to accept an enforcement undertaking from a person where the authority has reasonable grounds to suspect that the person has failed to comply with any prohibition or requirement imposed by or under the regulations.
(9) An “enforcement undertaking” is an undertaking to take such action to secure compliance with the regulations as may be specified in the undertaking within such period as may be so specified.
(10) Provision made by virtue of subsection (8) must include provision that unless the person from whom the undertaking was accepted has failed to comply with the undertaking or any part of it—
(a) that person may not at any time be convicted of an offence in respect of the act or omission to which the undertaking relates, and
(b) the enforcement authority may not impose on that person any penalty which it would otherwise have power to impose under the regulations in respect of that act or omission.
(11) Provision made by virtue of subsection (8) may include any provision of a kind mentioned in section 50(5) of the Regulatory Enforcement and Sanctions Act 2008.
(12) The Secretary of State may make payments or provide other resources to, or in respect of, enforcement authorities in connection with the exercise of functions under energy smart regulations.
(13) Energy smart regulations may provide for an enforcement authority to issue guidance about the enforcement of the regulations and the exercise by the authority of its functions under the regulations.
(1) Energy smart regulations may provide for sanctions to be imposed on persons in relation to—
(a) non-compliance with a prohibition or requirement imposed by or under such regulations;
(b) providing false or misleading information in relation to any such prohibition or requirement.
(2) The regulations may, in particular, provide for the imposition of civil penalties, including graduated or multiple penalties in connection with a continuous or serious act or omission.
(3) Energy smart regulations may create offences relating to—
(a) contraventions (by act or omission) of requirements imposed by enforcement authorities;
(b) knowingly giving false or misleading information to enforcement authorities;
(c) the obstruction (by act or omission) of persons acting on behalf of enforcement authorities;
(d) the impersonation of persons acting on behalf of enforcement authorities.
(4) Regulations which create an offence must provide for the offence to be triable only summarily.
(5) Regulations may not provide for an offence to be punishable with imprisonment.
(6) Regulations may provide for enforcement authorities to recover costs.
(1) Energy smart regulations that provide for the imposition of a requirement or civil penalty by an enforcement authority must include provision for a right of appeal to a court or tribunal against that requirement or penalty.
(2) Provision falling within subsection (1) includes, in particular, provision—
(a) as to the jurisdiction of the court or tribunal to which an appeal may be made;
(b) as to the grounds on which an appeal may be made;
(c) as to the procedure for making an appeal (including any fee which may be payable);
(d) suspending the imposition of the requirement or penalty, pending determination of the appeal;
(e) as to the powers of the court or tribunal to which an appeal is made;
(f) as to how any sum payable in pursuance of a decision of the court or tribunal is to be recoverable.
(3) In relation to the imposition of a requirement, the regulations may provide for persons other than the person against whom the requirement was imposed to also have a right of appeal.
(4) The provision referred to in subsection (2)(e) includes provision conferring on the court or tribunal to which an appeal is made power—
(a) to confirm or withdraw the requirement or penalty;
(b) to vary or remove a part of the requirement;
(c) to vary the amount of the penalty;
(d) to award costs or, in Scotland, expenses.
(5) If the Secretary of State considers it appropriate for the purpose of, or in consequence of, any provision falling within subsection (2)(a), (c), (e) or (f), the regulations may revoke or amend any subordinate legislation.
(6) In this section “subordinate legislation” has the meaning given in section 21(1) of the Interpretation Act 1978 and includes an instrument made under—
(a) an Act of the Scottish Parliament;
(b) a Measure or Act of the Senedd Cymru.