Law

Energy Act 2004

United Kingdom · statute

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In force since 2025-09-18, as the publisher states.

Copy read on 2026-11-08. The page it was read from

Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.

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Contents: 238 provisions
  1. Title and introductory text
  2. 1 The Nuclear Decommissioning Authority
  3. 2 Constitution of NDA
  4. 3 Designated responsibilities
  5. 4 Additional responsibilities under designating directions
  6. 5 Supplemental provisions of designating directions
  7. 6 Designations relating to Scotland
  8. 7 Supplemental functions
  9. 8 Special functions in relation to pensions etc.
  10. 9 General duties when carrying out functions
  11. 10 Powers for carrying out functions
  12. 11 Strategy for carrying out functions
  13. 12 Contents of strategy
  14. 13 Annual plans
  15. 14 Annual reports
  16. 15 Duty to decommission and clean up installations and sites
  17. 16 Duties to operate installations and to provide treatment etc.
  18. 17 Duty to use installations etc. for purposes of NDA
  19. 18 Directions by NDA to the person with control
  20. 19 Designation as a related site for the purposes of s. 18
  21. 20 Duty to comply with directions under s. 18
  22. 21 Financial responsibilities of NDA
  23. 22 Expenditure and receipts of NDA
  24. 23 Borrowing by the NDA
  25. 24 Limit on NDA borrowing
  26. 25 Government guarantees for NDA borrowing
  27. 26 Accounts of NDA
  28. 27 Tax exemption for NDA activities
  29. 28 Taxation of NDA activities chargeable under miscellaneous provisions
  30. 29 Disregard for tax purposes of cancellation etc. of provisions
  31. 30 Disregard for tax purposes of provisions recognised by NDA
  32. 31 Establishment and maintenance of the Account
  33. 32 Examination of the Account
  34. 33 Validity of transactions
  35. 34 Amendment of Schedule 12 to the 1989 Act
  36. 35 Power to modify Chapter 1 of Part 1
  37. 36 Meaning of “nuclear site” etc. and “person with control”
  38. 37 General interpretation of Chapter 1 of Part 1
  39. 38 Nuclear transfer schemes
  40. 39 Transfers of publicly owned assets
  41. 40 Transfers with the consent of the transferor
  42. 41 Recovery of property from private ownership
  43. 42 Transfer of Nuclear Liabilities Investment Portfolio
  44. 43 Undertakings given by the Secretary of State
  45. 44 Extinguishment of BNFL losses for tax purposes
  46. 45 Further provision applying to transferee companies
  47. 46 Pensions
  48. 47 Taxation
  49. 48 Supplementary powers of the Secretary of State, the NDA and the UKAEA
  50. 49 Duty to assist the Secretary of State
  51. 50 Interpretation of Chapter 2 of Part 1
  52. 51 The Civil Nuclear Police Authority
  53. 52 The Civil Nuclear Constabulary
  54. 53 Chief constable and other senior officers
  55. 54 Functions of senior officers
  56. 55 Members of the Constabulary
  57. 55A Provision of additional police services
  58. 55B Provision of assistance to other forces
  59. 56 Jurisdiction of Constabulary
  60. 56A Exercise of powers and privileges in Scotland
  61. 56B Exercise of functions in relation to children under the Scottish age of criminal responsibility
  62. 57 Stop and search under Terrorism Act 2000
  63. 58 Government, administration and conditions of service
  64. 59 Members of Constabulary serving with other forces
  65. 59A Constables serving with National Crime Agency
  66. 60 Charges
  67. 61 Planning and reports
  68. 62 Inspection
  69. 63 Supervision by Secretary of State
  70. 64 Civil Nuclear Police Federation
  71. 65 Rank-related associations
  72. 66 Representation at certain disciplinary proceedings
  73. 67 Trade union membership
  74. 68 Application of offences etc. applying to constables
  75. 69 Minor amendments relating to the Constabulary
  76. 70 Nuclear transfer scheme for UKAEA Constabulary
  77. 71 Interpretation of Chapter 3 of Part 1
  78. 72 Transfer of authorisations
  79. 73 Applications for variation of authorisations
  80. 74 Periodic reviews of authorisations
  81. 75 Consequential amendments of the 1993 Act
  82. 76 Amendments for giving effect to international obligations
  83. 77 Regulation of equipment, software and information
  84. 78 Application of the 1965 Act to Northern Ireland
  85. 79 Expenditure on nuclear related matters
  86. 80 Additional functions of UKAEA
  87. 81 Reports under section 1 of Sustainable Energy Act 2003
  88. 82 Microgeneration
  89. 83 Sustainable development
  90. 84 Exploitation of areas outside the territorial sea for energy production
  91. 85 Application of criminal law to renewable energy installations etc.
  92. 86 Prosecutions
  93. 87 Application of civil law to renewable energy installations etc.
  94. 88 Orders in Council under ss. 85 and 87
  95. 89 Activities offshore requiring 1989 Act licences
  96. 90 Modification of licence conditions for offshore transmission and distribution
  97. 91 Extension of transmission licences offshore
  98. 92 Competitive tenders for offshore transmission licences
  99. 93 Consents for generating stations offshore
  100. 94 Application of regulations under 1989 Act offshore
  101. 95 Safety zones around renewable energy installations
  102. 96 Prohibited activities in safety zones
  103. 97 Offences relating to safety zones
  104. 98 Supplementary provisions relating to offences under s. 97
  105. 99 Navigation
  106. 100 Further provision relating to public rights of navigation
  107. 101 Application of civil aviation regulations to renewable energy installations
  108. 102 Amendments of 1989 Act consequential on Chapter 2 of Part 2
  109. 103 Other amendments consequential on Chapter 2 of Part 2
  110. 104 Interpretation of Chapter 2 of Part 2
  111. 105 Requirement to prepare decommissioning programmes
  112. 105A Section 105 notices: supplemental
  113. 106 Approval of decommissioning programmes
  114. 107 Failure to submit or rejection of decommissioning programmes
  115. 108 Reviews and revisions of decommissioning programmes
  116. 109 Carrying out of decommissioning programmes
  117. 110 Default in carrying out decommissioning programmes
  118. 110A Protection of funds held for purposes of decommissioning
  119. 110B Section 110A: supplemental
  120. 111 Regulations about decommissioning
  121. 112 Duty to inform appropriate Minister
  122. 112A Power of appropriate Minister to require information and documents
  123. 113 Offences relating to decommissioning programmes
  124. 114 Interpretation of Chapter 3 of Part 2
  125. 115 Discharge of renewables obligation in Great Britain by payment
  126. 116 Issue of green certificates in Great Britain
  127. 117 Use of green certificates issued in Northern Ireland
  128. 118 Distributions to Northern Ireland suppliers
  129. 119 Supplementary provision relating to renewables obligation in Great Britain
  130. 120 Issue of green certificates in Northern Ireland
  131. 121 GEMA’s power to act on behalf of Northern Ireland regulator
  132. 121A GEMA’s power to act on behalf of Northern Ireland regulator in issuing guarantees of origin of renewables electricity
  133. 122 Consultation in relation to Northern Ireland renewables orders
  134. 123 Modification of conditions of Northern Ireland electricity licences
  135. 124 Imposition of renewable transport fuel obligations
  136. 125 Appointment of the Administrator
  137. 125A General functions of the Administrator
  138. 125B Functions of the Administrator: supplementary
  139. 125C Transfer of functions to new Administrator
  140. 126 Determinations of amounts of transport fuel
  141. 127 Renewable transport fuel certificates
  142. 128 Discharge of obligation by payment
  143. 129 Imposition of civil penalties
  144. 130 Objections to civil penalties
  145. 131 Appeals against civil penalties
  146. 131A Disclosure of information held by Revenue and Customs
  147. 131B Further disclosure of information
  148. 131C Wrongful disclosure
  149. 131D Recycled carbon fuel and nuclear-derived fuel
  150. 132 Interpretation of Chapter 5 of Part 2
  151. 133 “New trading and transmission arrangements”
  152. 134 Power to modify licence conditions
  153. 135 Alteration of transmission activities requiring licence
  154. 136 Transmission licences
  155. 137 New standard conditions for transmission licences
  156. 138 Conversion of existing transmission licences
  157. 140 Duties to provide information etc. to Secretary of State
  158. 141 Property arrangements schemes
  159. 142 Interpretation of Chapter 1 of Part 3
  160. 143 Amendments consequential on Chapter 1 of Part 3
  161. 144 Transition
  162. 145 Operators of electricity interconnectors to be licensed
  163. 146 Standard conditions for electricity interconnectors
  164. 147 Consequential amendments of the 1989 Act
  165. 148 Grant of electricity interconnector licences to existing operators
  166. 149 Operators of gas interconnectors to be licensed
  167. 150 Standard conditions for gas interconnectors
  168. 151 Disapplication of existing regimes
  169. 152 Grant of gas interconnector licences to existing operators
  170. 153 Extraterritorial application of Gas Act 1986
  171. 154 Energy administration orders
  172. 155 Objective of an energy administration
  173. 156 Applications for energy administration orders
  174. 157 Powers of court
  175. 158 Energy administrators
  176. 159 Conduct of administration, transfer schemes etc.
  177. 160 Restrictions on winding-up orders
  178. 161 Restrictions on voluntary winding up
  179. 162 Restrictions on making of ordinary administration orders
  180. 163 Restrictions on administrator appointments by creditors etc.
  181. 164 Restrictions on enforcement of security
  182. 165 Grants and loans
  183. 166 Indemnities
  184. 167 Guarantees where energy administration order is made
  185. 168 Modifications of particular or standard conditions
  186. 169 Licence conditions to secure funding of energy administration
  187. 170 Modification of Chapter 3 of Part 3 under Enterprise Act 2002
  188. 171 Interpretation of Chapter 3 of Part 3
  189. 172 Annual report on security of energy supplies
  190. 173 Appeals to the CMA
  191. 174 Procedure on appeals
  192. 175 Determination of appeals
  193. 176 Specialist members of Competition Commission
  194. 177 Modifications of standard conditions for funding appeals and references
  195. 178 Duty to have regard to best regulatory practice
  196. 179 Meaning of electricity supply
  197. 180 Meaning of “high voltage line”
  198. 181 Prepayment meters
  199. 182 Additional inspectors
  200. 183 Exclusion of confidential information from registers
  201. 184 Assistance for areas with high distribution costs
  202. 185 Adjustment of transmission charges
  203. 186 Restrictions on disclosure of information
  204. 187 Payments of sums raised by fossil fuel levy
  205. 188 Power to impose charges to fund energy functions
  206. 189 Power to modify Petroleum Act 1998
  207. 190 Application of general duties to Part 3 functions etc.
  208. 191 Supplementary provision about licence condition powers
  209. 192 Powers exercisable by statutory instrument
  210. 193 Service of notifications and other documents
  211. 194 Notifications and documents in electronic form
  212. 195 Timing and location of things done electronically
  213. 196 General interpretation
  214. 197 Repeals etc.
  215. 198 Short title, commencement and extent
  216. SCHEDULE 1 The Nuclear Decommissioning Authority
  217. SCHEDULE 2 Procedural requirements applicable to NDA’s strategy
  218. SCHEDULE 3 Procedural requirements applicable to NDA’s annual plans
  219. SCHEDULE 4 Supplemental taxation provisions for exempt activities
  220. SCHEDULE 5 Supplementary provisions about nuclear transfer schemes
  221. SCHEDULE 6 Structure etc. of transferee companies
  222. SCHEDULE 7 Finances and accounts of transferee companies
  223. SCHEDULE 8 Pensions
  224. SCHEDULE 9 Taxation provisions relating to nuclear transfer schemes
  225. SCHEDULE 10 The Civil Nuclear Police Authority
  226. SCHEDULE 11 Removal and suspension of senior officers of Constabulary
  227. SCHEDULE 12 Planning and reports about Constabulary
  228. SCHEDULE 13 Directions by Secretary of State about Constabulary
  229. SCHEDULE 14 Minor amendments relating to Constabulary
  230. SCHEDULE 15 Amendments of 1993 Act
  231. SCHEDULE 16 Applications and proposals for notices under section 95
  232. SCHEDULE 17 Conversion of existing transmission licences: licensing scheme
  233. SCHEDULE 18 Property arrangements schemes
  234. SCHEDULE 19 Consequential amendments relating to Chapter 1 of Part 3
  235. SCHEDULE 20 Conduct of energy administration
  236. SCHEDULE 21 Energy transfer schemes
  237. SCHEDULE 22 Procedure for appeals under section 173
  238. SCHEDULE 23 Repeals

Proposed changes to this act

No one has proposed a change to this act yet.

238 provisions

144 Transition

The Secretary of State may by order make in connection with the coming into force of any provision of this Chapter such transitional provision or saving as he considers necessary or expedient.

Propose a change

145 Operators of electricity interconnectors to be licensed

(1) The 1989 Act is amended as follows. (2) In subsection (1) of section 4 (licensable activities), at the end of paragraph (c) insert or (d) participates in the operation of an electricity interconnector, . (3) Before subsection (4) of that section insert— (3C) A reference in this Part to participating in the operation of an electricity interconnector is a reference to— (a) co-ordinating and directing the flow of electricity into or through an electricity interconnector; or (b) making such an interconnector available for use for the conveyance of electricity; and a person is not to be regarded as participating in the transmission of electricity by reason only of activities constituting participation in the operation of an electricity interconnector. (3D) For the purposes of subsection (3C)(b), a person shall not be regarded as making something available just because he consents to its being made available by another. (3E) In this Part “electricity interconnector” means so much of an electric line or other electrical plant as— (a) is situated at a place within the jurisdiction of Great Britain; and (b) subsists wholly or primarily for the purposes of the conveyance of electricity (whether in both directions or in only one) between Great Britain and a place within the jurisdiction of another country or territory. (3F) For the purposes of this section— (a) a place is within the jurisdiction of Great Britain if it is in Great Britain, in the territorial sea adjacent to Great Britain or in an area designated under section 1(7) of the Continental Shelf Act 1964; and (b) a place is within the jurisdiction of another country or territory if it is in that country or territory or in waters in relation to which authorities of that country or territory exercise jurisdiction. (4) In section 5(1) (power of the Secretary of State to grant exemptions from licensing), for “or (c)” substitute “ , (c) or (d) ”. (5) In section 6 (power to grant licences), after subsection (1)(d) insert or (e) a licence authorising a person to participate in the operation of an electricity interconnector (“an interconnector licence”). (6) After subsection (2) of that section insert— (2A) The same person may not be the holder of an interconnector licence and the holder of a licence falling within any of paragraphs (a) to (d) of subsection (1). (7) Before subsection (7) of that section insert— (6C) An interconnector licence authorising participation in the operation of an electricity interconnector— (a) must specify the interconnector or interconnectors in relation to which participation is authorised; and (b) may limit the forms of participation in the operation of an interconnector which are authorised by the licence.

Propose a change

146 Standard conditions for electricity interconnectors

(1) The Secretary of State must, before the commencement of subsection (6), determine standard conditions for electricity interconnector licences. (2) Those standard conditions may contain provision— (a) for a standard condition included in an electricity interconnector licence not to have effect until brought into operation in such manner, and in such circumstances, as may be specified in or determined under the standard conditions; (b) for the effect of a standard condition included in such a licence to be suspended in such manner, and in such circumstances, as may be so specified or determined; or (c) for a standard condition included in such a licence the effect of which is for the time being suspended to be brought back into operation in such manner, and in such circumstances, as may be so specified or determined. (3) The Secretary of State must publish the standard conditions determined by him under this section. (4) The publication must be in such manner as the Secretary of State considers appropriate. (5) The standard conditions determined by the Secretary of State have effect subject to any modifications made... under Part 1 of the 1989 Act , under this Act , under section 98 of the Energy Act 2011 or under section 37 or 45 of the Energy Act 2013. (6) Before subsection (2) of section 8A of the 1989 Act (standard conditions) insert— (1B) Subject to subsection (2), each condition which by virtue of section 146 of the Energy Act 2004 is a standard condition for the purposes of interconnector licences shall be incorporated, by reference, in each interconnector licence granted on or after the commencement of subsection (6) of that section. (7) In this section “electricity interconnector licence” means an interconnector licence under section 6(1)(e) of the 1989 Act.

Propose a change

147 Consequential amendments of the 1989 Act

(1) The 1989 Act is amended as follows. (2) In section 3A— (a) in subsection (1) (principal objective of GEMA in relation to electricity), at the end insert “ or the provision or use of electricity interconnectors ”; and (b) in subsection (5)(a) (duty as to carrying out of functions), after “electricity”, where first occurring, insert “ or to participate in the operation of electricity interconnectors ”. (3) In section 29 (regulations)— (a) in subsection (1)(b), after “electricity”, where first occurring, insert “ from the use of electricity interconnectors, ”; (b) in subsection (2)(b), after “electricity” insert “ or in the use of electricity interconnectors ”; (c) in subsection (2)(c), after “electricity” insert “ or to participate in the operation of an electricity interconnector ”. (4) In section 30(2)(a) (duty of inspector to inspect apparatus belonging to licence holders), after “electricity” insert “ or to participate in the operation of electricity interconnectors ”. (5) In section 43 (concurrent functions of GEMA and the OFT under the Enterprise Act 2002), in each of subsections (2A) and (3), after “electricity” insert “ or the use of electricity interconnectors ”. (6) In section 58(2) (information protected by directions), after “electricity” insert “ or to participate in the operation of electricity interconnectors ”. (7) In section 64(1) (interpretation), after the definitions of “electricity distributor” and “electricity supplier” insert— “electricity interconnector” has the meaning given by section 4(3E); . (8) In section 98(1) (statistical information)— (a) after “electricity”, where first occurring, insert “ or the use of electricity interconnectors ”; and (b) at the end insert “ or to participate in the operation of electricity interconnectors ”.

Propose a change

148 Grant of electricity interconnector licences to existing operators

(1) This section applies where a person is participating in the operation of an electricity interconnector at the time when the power of GEMA to grant electricity interconnector licences comes into force. (2) The Secretary of State shall have power to grant such a licence to that person under section 6 of the 1989 Act. (3) Sections 6A(5), 7 and 8A of the 1989 Act (notice of licence and licence conditions) shall have effect in relation to the grant of licences by the Secretary of State by virtue of this section as if— (a) references in those sections to GEMA included references to the Secretary of State; and (b) in section 8A, the words “the Secretary of State and” in subsection (4)(b) and subsection (5) were omitted. (4) Before granting a licence to a person by virtue of this section, the Secretary of State must consult— (a) that person; (b) GEMA; and (c) such other persons as the Secretary of State considers appropriate. (5) Subsection (4) may be satisfied by consultation that took place wholly or partly before the commencement of this section. (6) In this section— “electricity interconnector licence” means an interconnector licence under section 6(1)(e) of the 1989 Act; and “participating in the operation of an electricity interconnector” has the same meaning as in Part 1 of the 1989 Act.

Propose a change

149 Operators of gas interconnectors to be licensed

(1) The Gas Act 1986 (c. 44) is amended as follows. (2) In subsection (1) of section 5 (prohibition on unlicensed activities)— (a) in paragraph (a), at the beginning insert “ otherwise than by means of a gas interconnector ”; and (b) after that paragraph insert— (aa) participates in the operation of a gas interconnector; . (3) After subsection (5) of that section insert— (6) A reference in this Part to participating in the operation of a gas interconnector is a reference to— (a) co-ordinating and directing the conveyance of gas into or through a gas interconnector; or (b) making such an interconnector available for use for the conveyance of gas. (7) For the purposes of subsection (6)(b) a person shall not be regarded as making something available just because he consents to its being made available by another. (8) In this Part “gas interconnector” means so much of any pipeline system as— (a) is situated at a place within the jurisdiction of Great Britain; and (b) subsists wholly or primarily for the purposes of the conveyance of gas (whether in both directions or in only one) between Great Britain and another country or territory. (9) For the purposes of this section a place is within the jurisdiction of Great Britain if it is in Great Britain, in the territorial sea adjacent to Great Britain or in an area designated under section 1(7) of the Continental Shelf Act 1964. (10) In this section “pipe-line system” includes the pipes and any associated apparatus comprised in that system. (4) In section 6A(1) (power of the Secretary of State to grant exemptions from licensing), after “paragraph (a)” insert “ , (aa) ”. (5) In section 7(3) (no licence may be issued to holder of licence under section 7A), after “under section” insert “ 7ZA or ”. (6) After section 7 insert— Licences for operation of gas interconnectors 7ZA (1) Subject to subsection (2), the Authority may grant a licence authorising any person to participate in the operation of a gas interconnector. (2) A licence shall not be granted under this section to a person who is the holder of a licence under section 7 or 7A. (3) A licence under this section— (a) must specify the interconnector or interconnectors in relation to which participation is authorised; and (b) may limit the forms of participation in the operation of an interconnector which are authorised by the licence. (7) In section 7A(3) (no licence may be issued to holder of licence under section 7), after “section 7” insert “ or 7ZA ”. (8) In— (a) the definitions of “licence” in sections 4AA(8) and 48(1), and (b) section 36(1) and (2)(d), after “section 7” insert “ , 7ZA ”. (9) In section 24(1A)(a) (references to the Competition Commission for licence modifications), after sub-paragraph (i) insert— (ia) licences under section 7ZA above, . (10) In section 41C(4) (addition of activities to prohibited activities), after paragraph (a) insert— (aa) participation in the operation of a gas interconnector; . (11) In section 48(1) (interpretation) after the definition of “gas fittings” insert— “gas interconnector” has the meaning given by section 5(8); .

Propose a change

150 Standard conditions for gas interconnectors

(1) The Secretary of State must, before the commencement of subsection (6) of this section, determine standard conditions for licences under section 7ZA of the Gas Act 1986 (c. 44). (2) Those standard conditions may contain provision— (a) for a standard condition included in a licence under section 7ZA of the Gas Act 1986 not to have effect until brought into operation in such manner, and in such circumstances, as may be specified in or determined under the standard conditions; (b) for the effect of a standard condition included in such a licence to be suspended in such manner, and in such circumstances, as may be so specified or determined; or (c) for a standard condition included in such a licence the effect of which is for the time being suspended to be brought back into operation in such manner, and in such circumstances, as may be so specified or determined. (3) The Secretary of State must publish the standard conditions determined by him under this section. (4) The publication must be in such manner as the Secretary of State considers appropriate. (5) The standard conditions determined by the Secretary of State have effect subject to any modifications made... under Part 1 of the Gas Act 1986 (c. 44) , under this Act or under section 98 of the Energy Act 2011. (6) In subsection (1) of section 8 of that Act (standard conditions)— (a) after “2000” insert “ or section 150 of the Energy Act 2004 ”; and (b) after paragraph (a) insert— (aa) licences under section 7ZA above; . (7) After subsection (6) of that section insert— (6A) The Authority shall not make any modifications under subsection (3) above of a condition of a licence under section 7ZA unless it is of the opinion that the modifications are such that— (a) the licence holder would not be unduly disadvantaged in competing with one or more other holders of licences under that section; and (b) no other holder of a licence under that section would be unduly disadvantaged in competing with the holder of the licence to be modified or with any one or more other holders of licences under that section. (8) In sections 23(1)(b) and (2), 26(1A) and 27(1)(b) and (2) of that Act (which relate to the modification of standard conditions), after “licences under section 7 above” insert “ , licences under section 7ZA above ”. (9) In sections 23(11) and 26(5) of that Act (which require the publication of modifications of standard conditions), after “section 7” insert “ , 7ZA ”. (10) In section 26A(9) of that Act (which also relates to the modification of such conditions), after “section 7” insert “ or section 7ZA ”.

Propose a change

151 Disapplication of existing regimes

(1) In each of sections 9(1A) and 9A(1A) of the Pipe-lines Act 1962 (c. 58) (pipe-lines to which provision for construction of additional pipe-lines do not apply), for “neither upstream petroleum pipe-lines nor gas pipe-lines” substitute “ not an upstream petroleum pipe-line, a gas pipe-line or a gas interconnector ”. (2) In section 10(1)(b)(ii) of that Act (pipe-lines excluded from provisions for securing use of pipelines), for “is not” substitute “ is neither comprised in a gas interconnector nor ”. (3) The following provisions of that Act shall cease to have effect— (a) section 10B (cases to which section 10C applies); (b) in section 10C(1) the words “to which this section applies (a “relevant gas pipe-line”)”; and (c) in section 10C(2) to (11), the word “relevant” wherever occurring. (4) In section 66(1) of that Act (interpretation)— (a) for the definition of “gas pipe-line” substitute— “gas pipe-line” means a pipe-line used to convey gas to premises, or to a pipe-line system operated by a gas transporter (within the meaning of Part 1 of the Gas Act 1986), which— (a) is a pipe-line in respect of which an exemption has been granted by or under that Act from the requirement for a gas transporter’s licence; and (b) is not comprised in an upstream petroleum pipe-line; (b) after the definition of “gas” insert— “gas interconnector” has the same meaning as in Part 1 of the Gas Act 1986; (c) in the definition of “owner”, for “10B” substitute “ 10C ”. (5) In the Petroleum Act 1998 (c. 17)— (a) in section 17(1A) (exceptions to application of provisions for acquisition of rights to use pipelines), for the words from “and” onwards substitute “ or to a gas interconnector (within the meaning of Part 1 of the Gas Act 1986). ”; and (b) sections 17A and 17B (special rules for interconnectors) shall cease to have effect.

Propose a change

152 Grant of gas interconnector licences to existing operators

(1) This section applies where a person is participating in the operation of a gas interconnector at the time when the power of GEMA to grant licences under section 7ZA of the Gas Act 1986 (c. 44) comes into force. (2) The Secretary of State shall have power to grant a licence to that person under section 7ZA of the Gas Act 1986. (3) Sections 7B and 8 of the Gas Act 1986 (general provisions relating to licences and licence conditions) shall have effect in relation to the grant of licences by the Secretary of State by virtue of this section as if— (a) references in those sections to GEMA included references to the Secretary of State; (b) sections 7B(1), (2) and (2A) were omitted; and (c) in section 8, the words “the Secretary of State, to” in subsection (5)(b) and subsection (6) were omitted. (4) Before granting a licence to a person by virtue of this section, the Secretary of State must consult— (a) that person; (b) GEMA; and (c) such other persons as the Secretary of State considers appropriate. (5) Subsection (4) may be satisfied by consultation that took place wholly or partly before the commencement of this section. (6) In this section “participating in the operation of a gas interconnector” has the same meaning as in Part 1 of the Gas Act 1986.

Propose a change

153 Extraterritorial application of Gas Act 1986

After section 64 of the Gas Act 1986 (c. 44) insert— Extraterritorial operation of Act 64A (1) Where by virtue of this Act an act or omission taking place outside Great Britain constitutes an offence, proceedings for the offence may be taken, and the offence may for all incidental purposes be treated as having been committed, in any place in Great Britain. (2) Provision made by or under this Act in relation to places outside Great Britain— (a) so far as it applies to individuals, applies to them whether or not they are British citizens; and (b) so far as it applies to bodies corporate, applies to them whether or not they are incorporated under the law of a part of the United Kingdom.

Propose a change

154 Energy administration orders

(1) In this Chapter “energy administration order” means an order which— (a) is made by the court in relation to a protected energy company; and (b) directs that, while the order is in force, the affairs, business and property of the company are to be managed by a person appointed by the court. (2) The person appointed in relation to a company for the purposes of an energy administration order is referred to in this Chapter as the energy administrator of the company. (3) The energy administrator of a company must manage its affairs, business and property, and exercise and perform all his powers and duties as such, so as to achieve the objective set out in — (a) section 155(1), and (b) section 155(9) (if and to the extent that section 155(9) applies in relation to the company). (4) In relation to an energy administration order applying to a non-GB company, references in this section to the affairs, business and property of the company are references only to its affairs and business so far as carried on in Great Britain and to its property in Great Britain. (5) In this Chapter— “protected energy company” means a company which is the holder of a relevant licence; and “relevant licence” means— a licence granted under section 6(1)(b) or (c) of the 1989 Act (transmission and distribution licences for electricity); or a licence granted under section 7 of the Gas Act 1986 (licensing of gas transporters).

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155 Objective of an energy administration

(1) The objective of an energy administration is to secure— (a) that the company’s system is and continues to be maintained and developed as an efficient and economical system; and (b) that it becomes unnecessary, by one or both of the following means, for the energy administration order to remain in force for that purpose. (2) Those means are— (a) the rescue as a going concern of the company subject to the energy administration order; and (b) transfers falling within subsection (3). (3) A transfer falls within this subsection if it is a transfer as a going concern— (a) to another company, or (b) as respects different parts of the undertaking of the company subject to the energy administration order, to two or more different companies, of so much of that undertaking as it is appropriate to transfer for the purpose of achieving the objective of the energy administration. (4) The means by which transfers falling within subsection (3) may be effected include, in particular— (a) a transfer of the undertaking of the company subject to the energy administration order, or of a part of its undertaking, to a wholly-owned subsidiary of that company; and (b) a transfer to a company of securities of a wholly-owned subsidiary to which there has been a transfer falling within paragraph (a). (5) The objective of an energy administration may be achieved by transfers falling within subsection (3) to the extent only that— (a) the rescue as a going concern of the company subject to the energy administration order is not reasonably practicable or is not reasonably practicable without such transfers; (b) the rescue of that company as a going concern will not achieve that objective or will not do so without such transfers; (c) such transfers would produce a result for the company’s creditors as a whole that is better than the result that would be produced without them; or (d) such transfers would, without prejudicing the interests of those creditors as a whole, produce a result for the company’s members as a whole that is better than the result that would be produced without them. (6) In this section “the company’s system”, in relation to an energy administration, means— (a) the system of electricity distribution or of electricity transmission, or (b) the pipe-line system for the conveyance of gas, which the company subject to the energy administration order has been maintaining as the holder of a relevant licence. (7) In this section “efficient and economical”, in relation to a system for electricity distribution or electricity transmission, includes co-ordinated. (8) Subsection (9) applies if the company in relation to which an energy administration order is made has functions conferred by or by virtue of— (a) Chapter 2, 3 or 4 of Part 2 of the Energy Act 2013, or (b) an order made under section 46 of that Act (power of Secretary of State to transfer certain functions). (9) The objective of an energy administration (in addition to the objective mentioned in subsection (1)) is to secure— (a) that those functions are and continue to be carried out in an efficient and effective manner; and (b) that it becomes unnecessary, by one or both of the means mentioned in subsection (2), for the energy administration order to remain in force for that purpose. (10) The duty under section 154(3), so far as it relates to the objective mentioned in subsection (9)— (a) applies only to the extent that securing that objective is not inconsistent with securing the objective mentioned in subsection (1); (b) ceases to apply in respect of any function of a company if an order is made under section 46 of the Energy Act 2013 as a result of which the function is transferred from that company to another person.

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156 Applications for energy administration orders

(1) An application for an energy administration order in relation to a company may be made only— (a) by the Secretary of State; or (b) with the consent of the Secretary of State, by GEMA. (2) The applicant for an energy administration order in relation to a company must give notice of the application to— (a) every person who has appointed an administrative receiver of the company; (b) every person who is or may be entitled to appoint an administrative receiver of the company; (c) every person who is or may be entitled to make an appointment in relation to the company under paragraph 14 of Schedule B1 to the 1986 Act (appointment of administrators by holders of floating charges); and (d) such other persons as may be prescribed by energy administration rules. (3) The notice must be given as soon as reasonably practicable after the making of the application. (4) In this section “administrative receiver” means— (a) an administrative receiver within the meaning given by section 251 of the 1986 Act for the purposes of Parts 1 to 7 of that Act; or (b) a person whose functions in relation to a non-GB company— (i) are equivalent to those of an administrative receiver; and (ii) relate only to the affairs and business of the company so far as carried on in Great Britain and to its property in Great Britain.

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157 Powers of court

(1) On hearing an application for an energy administration order, the court has the following powers— (a) it may make the order; (b) it may dismiss the application; (c) it may adjourn the hearing conditionally or unconditionally; (d) it may make an interim order; (e) it may treat the application as a winding-up petition and make any order the court could make under section 125 of the 1986 Act (power of court on hearing winding-up petition); (f) it may make any other order which the court thinks appropriate. (2) The court may make an energy administration order in relation to a company only if it is satisfied— (a) that the company is unable to pay its debts; (b) that it is likely to be unable to pay its debts; or (c) that, on a petition by the Secretary of State under section 124A of the 1986 Act (petition for winding up on grounds of public interest), it would be just and equitable (disregarding the objective of the energy administration) to wind up the company in the public interest. (3) The court must not make an energy administration order in relation to a company on the ground set out in subsection (2)(c) unless the Secretary of State has certified to the court that the case is one in which he considers (disregarding the objective of the energy administration) that it would be appropriate for him to petition under section 124A of the 1986 Act. (4) The court has no power to make an energy administration order in relation to a company which— (a) is in administration under Schedule B1 to the 1986 Act; or (b) has gone into liquidation (within the meaning of section 247(2) of that Act). (5) An energy administration order comes into force— (a) at the time appointed by the court; or (b) if no time is so appointed, when the order is made. (6) An interim order under subsection (1)(d) may, in particular— (a) restrict the exercise of a power of the company or of its directors; or (b) make provision conferring a discretion on a person qualified to act as an insolvency practitioner in relation to the company. (7) Where the company in relation to which an application is made is a non-GB company, the reference in subsection (6)(a) to restricting the exercise of a power of the company or of its directors is a reference only to restricting the exercise of such a power— (a) within Great Britain; or (b) in relation to the company’s affairs or business so far as carried on in Great Britain, or to its property in Great Britain. (8) For the purposes of this section a company is unable to pay its debts if— (a) it is a company which is deemed to be so unable under section 123 of the 1986 Act (definition of inability to pay debts); or (b) it is an unregistered company which is deemed, by virtue of any of sections 222 to 224 of that Act, to be so unable for the purposes of section 221 of that Act (winding-up of unregistered companies), or which would be so deemed if it were an unregistered company for the purposes of those sections.

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158 Energy administrators

(1) The energy administrator of a company— (a) is an officer of the court; and (b) in exercising and performing his powers and duties in relation to the company, is the company’s agent. (2) The management by the energy administrator of a company of any affairs, business or property of the company must be carried out for the purpose of achieving the objective of the energy administration as quickly and as efficiently as is reasonably practicable. (3) The energy administrator of a company must exercise and perform his powers and duties in the manner which, so far as it is consistent with the objective of the energy administration to do so, best protects— (a) the interests of the creditors of the company as a whole; and (b) subject to those interests, the interests of the members of the company as a whole. (4) A person is not to be the energy administrator of a company unless he is a person qualified to act as an insolvency practitioner in relation to the company. (5) Where the court makes an appointment in a case in which two or more persons will be the energy administrator of a company after the appointment, the appointment must set out— (a) which (if any) of the powers and duties of an energy administrator are to be exercisable or performed only by those persons acting jointly; (b) the circumstances (if any) in which powers and duties of an energy administrator are to be exercisable, or may be performed, by one of the persons appointed to be the energy administrator, or by particular appointees, acting alone; and (c) the circumstances (if any) in which things done in relation to one of the persons appointed to be the energy administrator, or in relation to particular appointees, are to be treated as done in relation to all of them.

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159 Conduct of administration, transfer schemes etc.

(1) Schedule 20 (which applies the provisions of Schedule B1 to the 1986 Act about ordinary administration orders and certain other enactments to energy administration orders) has effect. (2) Schedule 21 (which makes provision for transfer schemes to achieve the objective of an energy administration) has effect. (3) The power to make rules conferred by section 411 of the 1986 Act (company insolvency rules) shall apply for the purpose of giving effect to this Chapter as it applies for the purpose of giving effect to Parts 1 to 7 of that Act and, accordingly, as if references in that section to those Parts included references to this Chapter (including this Chapter as applied by section 96 of the Energy Act 2011 , section 4 of the Smart Meters Act 2018 , section 33 of the Nuclear Energy (Financing) Act 2022 or section 44 of the Energy Act 2023).

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160 Restrictions on winding-up orders

(1) This section applies where a petition for the winding-up of a protected energy company is presented by a person other than the Secretary of State. (2) The court is not to exercise its powers on a winding-up petition unless— (a) notice of the petition has been served both on the Secretary of State and on GEMA; and (b) a period of at least fourteen days has elapsed since the service of the last of those notices to be served. (3) If an application for an energy administration order in relation to the company is made to the court in accordance with section 156(1) before a winding-up order is made on the petition, the court may exercise its powers under section 157, instead of exercising its powers on a winding-up petition. (4) References in this section to the court’s powers on a winding-up petition are references to— (a) its powers under section 125 of the 1986 Act (other than its power of adjournment); and (b) its powers under section 135 of that Act.

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161 Restrictions on voluntary winding up

(1) A protected energy company has no power to pass a resolution for voluntary winding up without the permission of the court. (2) Such permission may be granted only on an application made by the company. (3) The court is not to grant permission on such an application unless— (a) notice of the application has been served both on the Secretary of State and on GEMA; and (b) a period of at least fourteen days has elapsed since the service of the last of those notices to be served. (4) If an application for an energy administration order in relation to the company is made to the court in accordance with section 156(1) after an application for permission under this section has been made and before it is granted, the court may exercise its powers under section 157, instead of granting permission. (5) In this section “a resolution for voluntary winding up” has the same meaning as in the 1986 Act.

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162 Restrictions on making of ordinary administration orders

(1) This section applies where an ordinary administration application is made in relation to a protected energy company by a person other than the Secretary of State. (2) The court must dismiss the application if— (a) an energy administration order is in force in relation to the company; or (b) an energy administration order has been made in relation to the company but is not yet in force. (3) Where subsection (2) does not apply, the court, on hearing the application, must not exercise its powers under paragraph 13 of Schedule B1 to the 1986 Act (other than its power of adjournment) unless— (a) notice of the application has been served both on the Secretary of State and on GEMA; (b) a period of at least fourteen days has elapsed since the service of the last of those notices to be served; and (c) there is no application for an energy administration order that is outstanding. (4) Paragraph 44 of Schedule B1 to the 1986 Act (interim moratorium) does not prevent, or require the permission of the court for, the making of an application for an energy administration order. (5) Upon the making of an energy administration order in relation to a protected energy company, the court must dismiss any ordinary administration application made in relation to that company which is outstanding. (6) In this section “ordinary administration application” means an application in accordance with paragraph 12 of Schedule B1 to the 1986 Act.

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163 Restrictions on administrator appointments by creditors etc.

(1) No step is to be taken by any person to make an appointment in relation to a company under paragraph 14 or 22 of Schedule B1 to the 1986 Act (powers of holder of floating charge and of the company itself and of its directors to appoint administrators) if— (a) an energy administration order is in force in relation to the company; (b) an energy administration order has been made in relation to the company but is not yet in force; or (c) an application for such an order is outstanding. (2) In the case of a protected energy company to which subsection (1) does not apply, an appointment in relation to that company under paragraph 14 or 22 of Schedule B1 to the 1986 Act takes effect only if each of the conditions mentioned in subsection (3) is met. (3) Those conditions are— (a) that a copy of every document in relation to the appointment that is filed or lodged with the court in accordance with paragraph 18 or 29 of Schedule B1 to the 1986 Act (documents to be filed or lodged for appointment of administrator) has been served both on the Secretary of State and on GEMA; (b) that a period of fourteen days has elapsed since the service of the last of those copies to be served; (c) that there is no outstanding application to the court for an energy administration order in relation to the company in question; and (d) that the making of an application for such an order has not resulted in the making of an energy administration order which is in force or is still to come into force. (4) Paragraph 44 of Schedule B1 to the 1986 Act (interim moratorium) does not prevent, or require the permission of the court for, the making of an application for an energy administration order at any time before the appointment takes effect.

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164 Restrictions on enforcement of security

(1) No step to enforce a security over property of a protected energy company is to be taken by any person, unless— (a) notice of his intention to do so has been served both on the Secretary of State and on GEMA; and (b) a period of at least fourteen days has elapsed since the service of the last of those notices to be served. (2) In the case of a protected energy company which is a non-GB company, the reference in subsection (1) to the property of the company is a reference only to its property in Great Britain.

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165 Grants and loans

(1) This section applies where an energy administration order has been made in relation to a company. (2) The Secretary of State may make grants or loans to the company of such amounts as it appears to him appropriate to pay or lend for achieving the objective of the energy administration. (3) A grant or loan under this section may be made in whatever manner, and on whatever terms, the Secretary of State considers appropriate. (4) The terms on which a grant may be made under this section include, in particular, terms requiring the whole or a part of the grant to be repaid to the Secretary of State if there is a contravention of the other terms on which the grant is made. (5) The terms on which a loan may be made under this section include, in particular, terms requiring— (a) the loan to be repaid at such times and by such methods, and (b) interest to be paid on the loan at such rates and at such times, as the Secretary of State may from time to time direct. (6) The consent of the Treasury is required— (a) for the making of a grant or loan under this section; and (b) for the giving by the Secretary of State of a direction under subsection (5). (7) The Secretary of State must pay sums received by him by virtue of this section into the Consolidated Fund.

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166 Indemnities

(1) This section applies where an energy administration order has been made in relation to a company. (2) The Secretary of State may agree to indemnify persons in respect of one or both of the following— (a) liabilities incurred in connection with the exercise and performance by the energy administrator of his powers and duties; and (b) loss or damage sustained in that connection. (3) The agreement may be made in whatever manner, and on whatever terms, the Secretary of State considers appropriate. (3A) As soon as practicable after agreeing to indemnify persons under this section, the Secretary of State must lay a statement of the agreement before Parliament. (4) If sums are paid by the Secretary of State in consequence of an indemnity agreed to under this section, the company must pay him— (a) such amounts in or towards the repayment to him of those sums as he may direct; and (b) interest, at such rates as he may direct, on amounts outstanding under this subsection. (5) Payments to the Secretary of State under subsection (4) must be made at such times and in such manner as he may determine. (6) Subsection (4) does not apply in the case of a sum paid by the Secretary of State for indemnifying a person in respect of a liability to the company in relation to which the energy administration order was made. (6A) Where a sum has been paid out by the Secretary of State in consequence of an indemnity agreed to under this section, the Secretary of State must lay a statement relating to that sum before Parliament— (a) as soon as practicable after the end of the financial year in which that sum is paid out; and (b) (except where subsection (4) does not apply in the case of the sum) as soon as practicable after the end of each subsequent relevant financial year. (6B) In relation to a sum paid out in consequence of an indemnity, a financial year is a relevant financial year for the purposes of subsection (6A) unless— (a) before the beginning of that year, the whole of that sum has been repaid to the Secretary of State under subsection (4); and (b) the company in question is not at any time during that year subject to liability to pay interest on amounts that became due under that subsection in respect of that sum. (7) The consent of the Treasury is required— (a) for the doing of anything by the Secretary of State under subsection (2); (b) for the giving by him of any direction under subsection (4); and (c) for the making of a determination under subsection (5). (8) The power of the Secretary of State to agree to indemnify persons— (a) is confined to a power to agree to indemnify persons in respect of liabilities, loss and damage incurred or sustained by them as relevant persons; but (b) includes power to agree to indemnify persons (whether or not they are identified or identifiable at the time of the agreement) who subsequently become relevant persons. (9) A person is a relevant person for the purposes of this section if he is— (a) the energy administrator; (b) an employee of the energy administrator; (c) a member or employee of a firm of which the energy administrator is a member; (d) a member or employee of a firm of which the energy administrator is an employee; (e) a member of a firm of which the energy administrator was an employee or member at a time when the order was in force; (f) a body corporate which is the employer of the energy administrator; (g) an officer, employee or member of such a body corporate. (10) For the purposes of subsection (9)— (a) the references to the energy administrator are to be construed, where two or more persons are appointed to act as the energy administrator, as references to any one or more of them; and (b) the references to a firm of which a person was a member or employee at a particular time include references to a firm which holds itself out to be the successor of a firm of which he was a member or employee at that time. (11) The Secretary of State must pay sums received by him by virtue of subsection (4) into the Consolidated Fund.

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167 Guarantees where energy administration order is made

(1) This section applies where an energy administration order has been made in relation to a company. (2) The Secretary of State may guarantee— (a) the repayment of any sum borrowed by the company while the energy administration order is in force; (b) the payment of interest on such a sum; and (c) the discharge of any other financial obligation of the company in connection with the borrowing of such a sum. (3) The Secretary of State may give a guarantee under this section in such manner, and on such terms, as he thinks fit. (4) As soon as practicable after giving a guarantee under this section, the Secretary of State must lay a statement of the guarantee before Parliament. (5) If sums are paid out by the Secretary of State under a guarantee given under this section, the company must pay him— (a) such amounts in or towards the repayment to him of those sums as he may direct; and (b) interest, at such rates as he may direct, on amounts outstanding under this subsection. (6) Payments to the Secretary of State under subsection (5) must be made at such times, and in such manner, as he may from time to time direct. (7) Where a sum has been paid out by the Secretary of State under a guarantee given under this section, he must lay a statement relating to that sum before Parliament— (a) as soon as practicable after the end of the financial year in which that sum is paid out; and (b) as soon as practicable after the end of each subsequent relevant financial year. (8) In relation to a sum paid out under a guarantee, a financial year is a relevant financial year for the purposes of subsection (7) unless— (a) before the beginning of that year, the whole of that sum has been repaid to the Secretary of State under subsection (5); and (b) the company in question is not at any time during that year subject to liability to pay interest on amounts that became due under that subsection in respect of that sum. (9) The consent of the Treasury is required— (a) for the giving of a guarantee under this section; and (b) for the giving by the Secretary of State of a direction under subsection (5) or (6). (10) The Secretary of State must pay sums received by him by virtue of subsection (5) into the Consolidated Fund.

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168 Modifications of particular or standard conditions

(1) Where the Secretary of State considers it appropriate to do so in connection with the provision made by this Chapter, he may make— (a) modifications of the conditions of a gas or electricity licence held by a particular person; (b) modifications of the standard conditions of such licences of any type. (2) The power to make modifications under this section includes power to make incidental, consequential or transitional modifications. (3) Before making a modification under this section, the Secretary of State must consult— (a) the holder of any licence being modified; and (b) such other persons as he considers appropriate. (4) Subsection (3) may be satisfied by consultation that took place wholly or partly before the commencement of this section. (5) The Secretary of State must publish every modification made by him under this section. (6) The publication must be in such manner as the Secretary of State considers appropriate. (7) A modification under subsection (1)(a) of part of a standard condition of a licence does not prevent any other part of the condition from continuing to be regarded as a standard condition for the purposes of Part 1 of the 1989 Act or Part 1 of the Gas Act 1986 (c. 44). (8) Where the Secretary of State makes modifications under subsection (1)(b) of the standard conditions of licences of any type, GEMA must— (a) make (as nearly as may be) the same modifications of those standard conditions for the purposes of their incorporation in licences of that type granted after that time; and (b) publish the modifications in such manner as it considers appropriate. (9) The Secretary of State’s powers under this section are exercisable only during the eighteen months beginning with the commencement of this section. (10) In section 81(2) of the Utilities Act 2000 (c. 27) (standard conditions of licences under Part 1 of the Gas Act), for “such modifications of the conditions made under Part I of the 1986 Act” substitute “ any modifications made under Part 1 of the 1986 Act or under the Energy Act 2004 ”. (11) In this section “gas or electricity licence” means a licence for the purposes of section 5 of the Gas Act 1986 (c. 44) or section 4 of the 1989 Act (prohibition on unlicensed activities).

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169 Licence conditions to secure funding of energy administration

(1) The modifications that may be made under section 168 include, in particular, modifications imposing conditions requiring the holder of the licence— (a) so to modify the charges imposed by him for anything done by him in the carrying on of the licensed activities as to raise such amounts as may be determined by or under the conditions; and (b) to pay the amounts so raised to such persons as may be so determined for the purpose of— (i) their applying those amounts in making good any shortfall in the property available for meeting the expenses of an energy administration; or (ii) enabling those persons to secure that those amounts are so applied. (2) Those modifications may include modifications imposing on the licence holder an obligation to apply amounts paid to him in pursuance of conditions falling within subsection (1)(a) or (b) in making good any such shortfall. (3) For the purposes of this section— (a) there is a shortfall in the property available for meeting the costs of an energy administration if, in a case where a company is or has been subject to an energy administration order, the property available (apart from conditions falling within subsection (1) or (2)) for meeting relevant debts is insufficient for meeting them; and (b) amounts are applied in making good that shortfall if they are paid in or towards discharging so much of a relevant debt as cannot be met out of the property otherwise available for meeting relevant debts. (4) In this section “relevant debt”, in relation to a case in which a company is or has been subject to an energy administration order, means an obligation— (a) to make payments in respect of the expenses or remuneration of any person as the energy administrator of that company; (b) to make a payment in discharge of a debt or liability of that company arising out of a contract entered into at a time when the order was in force by the person who at that time was the energy administrator of that company; (c) to repay the whole or a part of a grant made to that company under section 165; (d) to repay a loan made to the company under that section, or to pay interest on such a loan; (e) to make a payment under section 166(4); or (f) to make a payment under section 167(5).

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170 Modification of Chapter 3 of Part 3 under Enterprise Act 2002

(1) The power to modify or apply enactments conferred on the Secretary of State by each of the sections of the Enterprise Act 2002 (c. 40) mentioned in subsection (2) includes power to make such consequential modifications of this Chapter (including this Chapter as applied by section 96 of the Energy Act 2011 , section 4 of the Smart Meters Act 2018 , section 33 of the Nuclear Energy (Finance) Act 2022 or section 44 of the Energy Act 2023) as he considers appropriate in connection with any other provision made under that section. (2) Those sections are— (a) sections 248 and 277 (amendments consequential on that Act); and (b) section 254 (power to apply insolvency law to foreign companies).

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171 Interpretation of Chapter 3 of Part 3

(1) In this Chapter— “the 1986 Act” means the Insolvency Act 1986 (c. 45); “business”, “member”, “property” and “security” have the same meanings as in the 1986 Act; “company” means— a company registered under the Companies Act 2006, or an unregistered company; “court”, in relation to a company, means the court— having jurisdiction to wind up the company, or that would have such jurisdiction apart from section 221(2) or 441(2) of the Insolvency Act 1986 (exclusion of winding up jurisdiction in case of companies having principal place of business in, or incorporated in, Northern Ireland); “energy administration order” has the meaning given by section 154(1); “energy administration rules” means rules made under section 411 of the 1986 Act by virtue of section 159(3) of this Act; “energy administrator” has the meaning given by section 154(2) and is to be construed in accordance with subsection (2) of this section; “non-GB company” means a company incorporated outside Great Britain; “objective of the energy administration” is to be construed in accordance with section 155; “protected energy company” has the meaning given by section 154(5); “relevant licence” has the meaning given by section 154(5); “unregistered company” means a company that is not registered under the Companies Act 2006. (2) In this Chapter references to the energy administrator of a company— (a) include references to a person appointed under paragraph 91 or 103 of Schedule B1 to the 1986 Act, as applied by Part 1 of Schedule 20 to this Act, to be the energy administrator of that company; and (b) where two or more persons are appointed to be the energy administrator of that company, are to be construed in accordance with the provision made under section 158(5). (3) References in this Chapter to a person qualified to act as an insolvency practitioner in relation to a company are to be construed in accordance with Part 13 of the 1986 Act (insolvency practitioners and their qualifications); but as if references in that Part to a company included references to a Northern Ireland company. (4) For the purposes of this Chapter an application made to the court is outstanding if it— (a) has not yet been granted or dismissed; and (b) has not been withdrawn. (5) For the purposes of subsection (4) an application is not to be taken as having been dismissed if an appeal against the dismissal of the application, or a subsequent appeal, is pending. (6) An appeal shall be treated as pending for the purposes of subsection (5) if— (a) such an appeal has been brought and has been neither determined nor withdrawn; (b) an application for permission to appeal has been made but has not been determined or withdrawn; or (c) no such appeal has been brought and the period for bringing an appeal is still running. (7) References in this Chapter to Schedule B1 to the 1986 Act, or to a provision of that Schedule (except the references in subsection (2) of this section), are references to that Schedule or that provision without the modifications made by Part 1 of Schedule 20 to this Act. (8) In this section “Northern Ireland company” means a company registered under the Companies Act 2006 in Northern Ireland.

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172 Annual report on security of energy supplies

(1) The Secretary of State must, in 2005 and in every subsequent calendar year— (a) publish a report dealing, as regards both the short term and the long term, with the availability of electricity and gas for meeting the reasonable demands of consumers in Great Britain; and (b) lay that report before Parliament. (2) The report must include, in particular, overall assessments, as regards both the short term and the long term, of each of the following— (a) generating capacity in Great Britain and its offshore waters so far as it will be utilised for generating electricity for introduction into transmission systems in Great Britain; (b) the availability of capacity in those systems and in distribution systems in Great Britain for transmitting and distributing electricity for supply to consumers in Great Britain; (c) the availability of capacity in infrastructure in Great Britain for use in connection with the introduction of gas into licensed pipe-line systems in Great Britain; and (d) the availability of capacity in those systems for conveying gas to consumers in Great Britain. (2A) In 2012 and in every subsequent calendar year the report must also include, in particular, as regards each of the assessment periods, an assessment by the Secretary of State of what electricity supply capacity is required. (2B) For the purposes of subsection (2A) the electricity supply capacity required is the capacity required for the purpose of meeting the demands of consumers for the supply of electricity in Great Britain, including spare capacity to allow for unexpected demands or unexpected loss of capacity. (2C) The assessment periods, in relation to a report under subsection (1), are— (a) each of the four calendar years immediately following the year of the report; or (b) any other periods that the Secretary of State specifies by order. (2D) An assessment by virtue of subsection (2A) must take into account, in particular— (a) the generation of electricity; (b) the operation of electricity interconnectors; (c) the storage of electricity; (d) the extent to which the available capacity of a generating station is likely to be lower than its maximum possible capacity due to routine maintenance, weather conditions or any other expected limitation on its operation; (e) demand side response. (3) The report , other than the assessment by virtue of subsection (2A), must be prepared jointly by the Secretary of State and GEMA. (3A) An order under this section is subject to the negative resolution procedure. (4) In this section— “consumers” includes both existing and future consumers; “demand side response” means the cessation of, or a reduction in, the provision of electricity to a person at times of high demand, by agreement with the person; “distributing”, “distribution system”, “electricity interconnector”, “generating station”, “generation”, “supply,” “transmission system” and “transmitting” have the same meanings as in Part 1 of the 1989 Act; “gas” and “gas transporter” have the same meanings as in Part 1 of the Gas Act 1986 (c. 44); “infrastructure” includes pipe-line systems, terminals and other facilities but does not include licensed pipe-line systems; “licensed pipe-line system” means a pipe-line system that is operated by a gas transporter for the conveyance of gas to any premises or another pipe-line system as authorised by his licence under section 7 of that Act; “offshore waters” means, in relation to Great Britain— so much of the territorial sea of the United Kingdom as is adjacent to Great Britain; and waters in a Renewable Energy Zone (within the meaning of Chapter 2 of Part 2 of this Act).

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173 Appeals to the CMA

(1) An appeal ... from a decision by GEMA to which this section applies shall lie to the Competition and Markets Authority (in this Chapter referred to as “the CMA”). (2) This section applies to a decision by GEMA if— (a) it is a decision relating to a document by reference to which provision is made by a condition of a gas or electricity licence; (b) that document is designated for the purposes of this section by an order made by the Secretary of State; (c) the decision consists in the giving or refusal of a consent by virtue of which the document has effect, or would have had effect, for the purposes of the licence with modifications or as reissued; and (d) the decision is not of a description of decisions for the time being excluded from the right of appeal under this section by an order made by the Secretary of State. (2A) This section also applies to a decision by GEMA to give a direction under section 36C of the Gas Act 1986 (power to direct a modification of the Uniform Network Code). (2B) But subsection (2A) does not have effect in relation to such a decision if it falls within a description of decisions for the time being excluded from the right of appeal under this section by an order made by the Secretary of State. (2C) This section also applies to a decision by GEMA to modify a designated document (within the meaning of Part 6 of the Energy Act 2023) under section 192 of that Act. (3) An appeal against a decision may be brought under this section only by— (a) a person whose interests are materially affected by it; or (b) a body or association whose functions are or include representing persons in respect of interests of theirs that are so affected. (4) The permission of the CMA is required for the bringing of an appeal under this section. (5) The CMA may refuse permission only on one of the following grounds— (a) that the appeal is brought for reasons that are trivial or vexatious; (b) that the appeal has no reasonable prospect of success. (6) Before making an order under this section, the Secretary of State must consult— (a) GEMA; and (b) such other persons as he considers appropriate. (7) An order excluding decisions from the right of appeal under this section may provide— (a) for the exclusion to apply only in such cases as may be determined in accordance with the order; and (b) for a determination in accordance with the order to be made by such persons, in accordance with such procedures, and by reference to such matters and the opinions of such persons (including GEMA), as may be provided for in the order. (8) An order made by the Secretary of State under this section is subject to the negative resolution procedure. (9) In this section— “consent” includes an approval or direction; “gas or electricity licence” means a licence for the purposes of section 5 of the Gas Act 1986 (c. 44) or section 4 of the 1989 Act (prohibition on unlicensed activities).

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174 Procedure on appeals

(1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (2) ... Schedule 22 (procedure on appeals) has effect. (2A) Except where specified otherwise in Schedule 22, the functions of the CMA with respect to appeals under section 173 are to be carried out on behalf of the CMA by a group constituted for the purpose by the chair of the CMA under Schedule 4 to the Enterprise and Regulatory Reform Act 2013.

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175 Determination of appeals

(1) This section applies to every appeal brought under section 173 of this Act. (2) In determining the appeal the CMA must have regard, to the same extent as is required of GEMA, to the matters to which GEMA must have regard— (a) in the carrying out of its principal objectives under section 4AA of the Gas Act 1986 (c. 44) and section 3A of the 1989 Act (principal objectives and general duties); (b) in the performance of its duties under those sections; and (c) in the performance of its duties under sections 4AB and 4A of that Act of 1986 and sections 3B and 3C of the 1989 Act (environmental and health and safety considerations). (3) In determining the appeal the CMA— (a) may have regard to any matter to which GEMA was not able to have regard in the case of the decision appealed against; but (b) must not, in the exercise of that power, have regard to any matter to which GEMA would not have been entitled to have regard in that case had it had the opportunity of doing so. (4) The CMA may allow the appeal only if it is satisfied that the decision appealed against was wrong on one or more of the following grounds— (a) that GEMA failed properly to have regard to the matters mentioned in subsection (2); (b) that GEMA failed properly to have regard to — (i) the purposes for which the relevant condition has effect (in the case of an appeal by virtue of section 173(2)), or (ii) the purposes of the power to give a direction under section 36C of the Gas Act 1986 or the purposes of Standard Special Condition A11 of licences granted under section 7 of that Act (in the case of an appeal by virtue of section 173(2A)); (c) that GEMA failed to give the appropriate weight to one or more of those matters or purposes; (d) that the decision was based, wholly or partly, on an error of fact; (e) that the decision was wrong in law. (5) Where the CMA does not allow the appeal, it must confirm the decision appealed against. (6) Where it allows the appeal, it must do one or more of the following— (a) quash the decision appealed against; (b) remit the matter to GEMA for reconsideration and determination in accordance with the directions given by the CMA; (c) where it quashes the refusal of a consent, give directions to GEMA, and to such other persons as it considers appropriate, for securing that the relevant condition has effect as if the consent had been given. (7) A person shall not be directed under subsection (6) to do anything that he would not have power to do apart from the direction. (8) A person to whom a direction is given under subsection (6) must comply with it; and such a direction given to a person other than GEMA shall be enforceable as if it were an order of the High Court or (in Scotland) of the Court of Session. (9) The decision of the CMA on the appeal— (a) must be contained in an order made by the CMA; (b) must set out the reasons for the decision; (c) takes effect at the time specified in the order or determined in accordance with provision set out in that order; (d) must be notified by the CMA to the persons who (within the meaning of Schedule 22) were parties to the appeal; and (e) must be published by the CMA in such manner as it considers appropriate for bringing it to the attention of other persons likely to be affected by it. (10) The CMA may exclude from what it publishes under subsection (9)(e) any information which it is satisfied is— (a) commercial information the disclosure of which would, or might, significantly harm the legitimate business interests of an undertaking to which it relates; (b) information relating to the private affairs of an individual the disclosure of which would, or might, in its opinion, significantly harm his interests. (11) In this section— “consent” includes an approval or direction; and “the relevant condition”, in relation to a decision, means the licence condition the provisions of which have effect by reference to the document to which the decision relates.

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176 Specialist members of Competition Commission

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177 Modifications of standard conditions for funding appeals and references

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178 Duty to have regard to best regulatory practice

In each of section 4AA of the Gas Act 1986 (c. 44) and section 3A of the 1989 Act (principal objective and general duties), after subsection (5) insert— (5A) In carrying out their respective functions under this Part in accordance with the preceding provisions of this section the Secretary of State and the Authority must each have regard to— (a) the principles under which regulatory activities should be transparent, accountable, proportionate, consistent and targeted only at cases in which action is needed; and (b) any other principles appearing to him or, as the case may be, it to represent the best regulatory practice.

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179 Meaning of electricity supply

(1) For the definition of “supply” in section 4(4) of the 1989 Act, substitute— “supply”, in relation to electricity, means its supply to premises in cases where— (a) it is conveyed to the premises wholly or partly by means of a distribution system, or (b) (without being so conveyed) it is supplied to the premises from a substation to which it has been conveyed by means of a transmission system, but does not include its supply to premises occupied by a licence holder for the purpose of carrying on activities which he is authorised by his licence to carry on; . (2) In each of the provisions specified in subsection (3) (which all refer to electricity conveyed by distribution systems), after “distribution systems” insert “ or transmission systems ”. (3) Those provisions are— (a) section 3A(1), (5)(a) and (7) of the 1989 Act (principal objectives and general duties applying to electricity regulation); (b) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (c) section 48(1) of that Act (publication of information and advice); (d) section 4AA(4)(a) of the Gas Act 1986 (principal objectives and general duties applying to gas regulation); and (e) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (4) An order under section 198 for bringing into force provisions of this section may contain any such transitional provision in connection with bringing those provisions into force as the Secretary of State thinks appropriate. (5) The transitional provision that may be included in an order under subsection (4) includes provision which has effect by reference to determinations made in accordance with that provision by a person specified in the order.

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180 Meaning of “high voltage line”

(1) In subsection (1) of section 64 of the 1989 Act (interpretation of Part 1), for the definitions of “high voltage line” and “low voltage line” substitute— “high voltage line” means an electric line which— (a) if it is in Scotland or is a relevant offshore line (as defined in subsection (1A)), is of a nominal voltage of 132 kilovolts or more; and (b) in any other case, is of a nominal voltage of more than 132 kilovolts, and “low voltage line” shall be construed accordingly; . (2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

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181 Prepayment meters

(1) In Schedule 2B to the Gas Act 1986 (c. 44) (which sets out the gas code), for paragraph 6A substitute— 6A (1) A pre-payment meter installed by an authorised supplier through which a consumer takes his supply of gas shall not be used to recover a sum unless— (a) the sum is owed to an authorised supplier in respect of the supply of gas to the premises on which the meter is installed or in respect of the provision of the meter; or (b) the recovery of the sum in that manner is permitted by both— (i) regulations made by the Authority; and (ii) an agreement falling within sub-paragraph (2) below between the consumer and the person to whom the sum is owed. (2) An agreement falls within this sub-paragraph if— (a) the person to whom the sum is owed is a person who is authorised by regulations made by the Authority to enter into agreements falling within this sub-paragraph; (b) the agreement permits that person to use the meter in question to recover such sums as may be specified in or determined under the agreement; and (c) the agreement complies with the requirements specified for the purposes of this sub-paragraph by regulations made by the Authority. (3) The sums that regulations under this paragraph may permit the recovery of through a pre-payment meter include— (a) sums owed to a person other than an authorised supplier; (b) sums owed in respect of premises other than the premises on which the meter is installed; (c) sums owed in respect of matters other than the supply of gas. (4) Before making regulations under this paragraph the Authority must consult— (a) the Council; (b) all authorised suppliers; (c) such other persons as the Authority considers appropriate. (5) The approval of the Secretary of State is required for the making of regulations under this paragraph. (2) In paragraph 12 of Schedule 7 to the 1989 Act (use of pre-payment meters), for sub-paragraph (2) substitute— (2) A pre-payment meter installed by an authorised supplier through which a customer of such a supplier takes his supply of electricity shall not be used to recover a sum unless— (a) the sum is owed to an authorised supplier in respect of the supply of electricity to the premises on which the meter is installed or in respect of the provision of the meter; or (b) the recovery of the sum in that manner is permitted by both— (i) regulations; and (ii) an agreement falling within sub-paragraph (3) below between the customer and the person to whom the sum is owed. (3) An agreement falls within this sub-paragraph if— (a) the person to whom the sum is owed is a person who is authorised by regulations to enter into agreements falling within this sub-paragraph; (b) the agreement permits that person to use the meter in question to recover such sums as may be specified in or determined under the agreement; and (c) the agreement complies with the requirements specified for the purposes of this sub-paragraph by regulations. (4) The sums that regulations under this paragraph may permit the recovery of through a pre-payment meter include— (a) sums owed to a person other than an authorised supplier; (b) sums owed in respect of premises other than the premises on which the meter is installed; (c) sums owed in respect of matters other than the supply of electricity. (5) Before making regulations under this paragraph the Authority must consult— (a) the Council; (b) all authorised suppliers; (c) such other persons as the Authority considers appropriate.

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182 Additional inspectors

(1) In Schedule 8 to the 1989 Act (procedure for consents under sections 36 and 37 relating to the installation of generating stations and electric lines), after paragraph 5 insert— Additional inspectors 5A (1) This paragraph applies in the case of— (a) a public inquiry in England and Wales by virtue of paragraph 2(2) or 3(2); or (b) a public inquiry in England and Wales which is a combination under section 62 of this Act into one inquiry— (i) of two or more such inquiries; or (ii) of one or more such inquiries and one or more other inquiries. (2) At any time after appointing a person to hold the inquiry (“the lead inspector”), the Secretary of State may direct him— (a) to consider such matters relating to the conduct of the inquiry as are specified in the direction; and (b) to make recommendations to the Secretary of State about those matters. (3) After considering the recommendations of the lead inspector, the Secretary of State may— (a) appoint for the purposes of the inquiry such number of additional inspectors as he thinks appropriate; and (b) direct that each additional inspector must consider such of the matters to which the inquiry relates as are allocated to him by the lead inspector. (4) An additional inspector must— (a) comply with every direction as to procedural matters given to him by the lead inspector; and (b) report to the lead inspector on every matter allocated to him. (5) It is to be for the lead inspector to report to the Secretary of State on the consideration of both— (a) the matters which he considered himself; and (b) the matters the consideration of which was allocated to additional inspectors. (6) The power of the Secretary of State to give directions to the lead inspector may be exercised on one or more different occasions after the appointment of the lead inspector. (7) Accordingly— (a) the recommendations that may be made by the lead inspector following such a direction include, in particular, a recommendation for varying the number of additional inspectors; and (b) the power of the Secretary of State to appoint an additional inspector includes power to revoke such an appointment. (8) A direction by any person under this paragraph may be varied or revoked by a subsequent direction by that person. (2) This section does not extend to Scotland.

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183 Exclusion of confidential information from registers

(1) In section 36 of the Gas Act 1986 (c. 44) (register to be kept by GEMA), after subsection (2) insert— (2A) The Authority may enter the provisions of anything in the register in a manner that excludes, so far as practicable, so much of the details of those provisions as it considers it appropriate to exclude for the purpose of maintaining the confidentiality of— (a) matters relating to the affairs of an individual the publication of which would or might, in its opinion, seriously and prejudicially affect the interests of that individual; and (b) matters relating specifically to the affairs of a particular body of persons the publication of which would or might, in the Authority’s opinion, seriously and prejudicially affect the interests of that body. (2) In subsection (2) of that section, after “Subject to” insert “ subsection (2A) and to ”. (3) For section 49(3) of 1989 Act (matters needing to be excluded so far as practicable from register to be kept by GEMA) substitute— (3) The Authority may enter the provisions of anything in the register in a manner that excludes, so far as practicable, so much of the details of those provisions as it considers it appropriate to exclude for the purpose of maintaining the confidentiality of— (a) matters relating to the affairs of an individual the publication of which would or might, in its opinion, seriously and prejudicially affect the interests of that individual; and (b) matters relating specifically to the affairs of a particular body of persons the publication of which would or might, in the Authority’s opinion, seriously and prejudicially affect the interests of that body.

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