Legalize / United Kingdom / Public General Act

Gas Act 1986

Type Public General Act

Publication 1986-07-25

Last updated 2025-11-13

State In force

Department Statute Law Database

Source legislation.gov.uk

articles Not indexed

Reform history JSON API

(4) Where the Authority has received a notice under sub-paragraph (1), it must, as soon as is reasonably practicable, either—

(a) revoke the classification; or

(b) confirm the classification if—

(i) the notice includes an application made under sub-paragraph (2);

(ii) the Authority has received any further information or documents requested by it; and

(iii) the Authority considers that the criteria set out in paragraph 12(2) continue to be met.

(5) The Authority must notify the applicant of its decision under sub-paragraph (4) as soon as is reasonably practicable after the decision has been made.

Interpretation

16

(1) In this Schedule—

“charging statement” (in relation to a distribution exemption holder who proposes to impose a use of system charge) is to be construed in accordance with paragraph 5(2)(b);

“closed distribution system” means a system classified as a closed distribution system by the Authority under paragraph 12(2);

“customer” means a person who purchases gas for the person’s own consumption;

“distribution system” means a pipe-line system by means of which the person who operates or has control of the system conveys gas in circumstances such that—that person is thereby carrying on an activity such as is mentioned in section 5(1)(a); andthe whole or part of that activity is also an activity of distribution within the meaning given by Article 2(5) of the Gas Directive;

“expression of interest” has the meaning given by paragraph 1(2);

“household customer” means a customer who purchases gas for consumption by the customer’s own household;

“pipe-line system” includes the pipes and any associated apparatus comprised in that system;

“system user” in relation to a distribution system, means—a person supplying gas that is being conveyed by means of that distribution system; ora customer who owns or occupies premises that are connected to that distribution system;

“third party supplier”, in relation to a distribution exemption holder, means any authorised supplier that is not related to the distribution exemption holder;

“use of system charge”, in relation to a distribution exemption holder, means a charge which—is levied by the distribution exemption holder on a third party supplier identified in an expression of interest that has been served on the distribution exemption holder; andis for use of the exempt distribution system to which the expression of interest relates.

(2) For the purposes of this Schedule, a person (“A”) is related to another person (“B”) where A is—

(a) an undertaking in which B has a participating interest within the meaning of section 421A of the Financial Services and Markets Act 2000;

(b) a holding company of B;

(d) a subsidiary of a holding company of B.

(3) For the purposes of sub-paragraph (2) “holding company” and “subsidiary” are to be construed in accordance with section 1159 of the Companies Act 2006.

SCHEDULE 2AB

Change of supplier

1

(1) This paragraph applies if a supply exemption holder enters into a contract with a customer to start supplying gas to any premises.

(2) The supply exemption holder must, within 7 days beginning with the day on which the contract is entered into, give any person who is currently supplying gas to the premises a notice stating—

(a) that the contract has been entered into, and

(b) when the supply exemption holder will start supplying gas to the premises.

(3) Subject to sub-paragraphs (4) and (7), the supply exemption holder must start supplying gas to the premises within 21 days of the relevant date.

(4) The supply exemption holder need not comply with sub-paragraph (3) if—

(a) the customer requests that the supply start on a later date;

(b) the customer terminates, or gives notice to terminate, the contract; or

(5) The reasons in this sub-paragraph are—

(a) that the supply exemption holder—

(i) does not have all of the information it requires in order to start supplying gas to the premises, despite having taken all reasonable steps to obtain the missing information from the customer; and

(ii) cannot readily obtain that information from another source;

(b) that the customer is taking a supply of gas through an exempt distribution system and the supply exemption holder is unable to start supplying gas to the premises because—

(i) a connection which the customer or supply exemption holder requires to be made in pursuance of paragraph 7(2) of Schedule 2AA has not yet been made; or

(ii) the distribution exemption holder has specified, in a notice under paragraph 1(6)(a)(i) of Schedule 2AA, a metering arrangement which it considers would be required for access to be given to a third party supplier (within the meaning of that Schedule) and that metering arrangement is not yet in place;

(c) that any other circumstance which is outside the control of the supply exemption holder and which it has taken all reasonably practicable steps to resolve prevents it from starting to supply gas to the premises.

(6) If, because of a reason in sub-paragraph (5), a supply exemption holder is not required to start supplying gas to the premises within 21 days of the relevant date, it must start supplying gas to the premises as soon as is reasonably practicable after the reason ceases to apply, and in any event within 21 days of the date on which the reason ceases to apply (but if there is more than one reason, references in this sub-paragraph to a reason’s ceasing to apply are to all the reasons’ having ceased to apply).

(7) If another supply exemption holder is currently supplying gas to the premises and has objected to the change of supplier under paragraph 2, then the supply exemption holder mentioned in sub-paragraph (1) above—

(a) must not start supplying gas to the premises before that objection is resolved; but

(b) must start supplying gas to the premises as soon as is reasonably practicable after the objection is resolved, and in any event within 21 days of the date on which the objection is resolved.

(8) For the purposes of sub-paragraph (7) an objection made under paragraph 2 is taken to be resolved—

(a) in the case of an objection based on the reason in paragraph 2(5)(a) alone—

(i) when the customer, or the supply exemption holder who made the objection, informs the supply exemption holder mentioned in sub-paragraph (1) above that the debt has been paid off in full; or

(ii) when an arrangement such as is mentioned in paragraph 2(5)(a)(iii) is made with respect to the debt;

(b) in the case of an objection based on the reason in paragraph 2(5)(b) alone, when the period mentioned in that paragraph expires;

(c) in the case of an objection based on both those reasons, when the objection has been resolved in relation to each reason in accordance with paragraphs (a) and (b) above; or

(d) in any case, when the objection is withdrawn.

(9) In this paragraph “the relevant date” means—

(a) the day after the day on which the supply exemption holder enters into the contract mentioned in sub-paragraph (1); or

(b) if, after the contract is entered into, there is a period within which the customer may decide not to proceed with it, the earlier of—

(i) the day after the day on which that period ends; or

(ii) the 14th day after the day on which the contract was entered into.

2

(1) This paragraph applies if—

(a) a person (“the new supplier”) has entered into a contract with a customer to start supplying electricity to any premises; and

(b) a supply exemption holder is currently supplying electricity to the premises under a contract with that customer.

(2) If one or more of the reasons in sub-paragraph (5) applies, the supply exemption holder may object to the change of supplier by sending notice of the objection and the reason (or reasons) for it to—

(a) the new supplier; and

(b) the customer.

(3) A notice under sub-paragraph (2) must be sent—

(a) as soon as reasonably practicable; and

(b) if the supply exemption holder is notified under paragraph 1(2), or in accordance with a condition in a licence, that the contract has been entered into, not later than the end of the 14th day after the day on which it receives that notification.

(4) If the supply exemption holder objects to a change of supplier because of the reason in sub-paragraph (5)(b), the notice of this objection must also state when the period mentioned in that sub-paragraph will expire.

(5) The reasons in this sub-paragraph are that—

(a) the customer owes money (“the debt”) to the supply exemption holder in respect of gas supplied to the customer and—

(i) the supply exemption holder has demanded payment of the debt;

(ii) at least 28 days have passed since the date on which the demand was sent to the customer and any date for payment stated in the demand has also passed; and

(iii) the new supplier and the supply exemption holder have not agreed to an arrangement under which some or all of the debt will be assigned to the new supplier; or

(b) a contract between the supply exemption holder and the customer includes a term which prevents the customer from terminating that contract within a specified period which has not expired.

(6) The supply exemption holder must comply with any reasonable request from the new supplier to provide any information, or take any other steps, required to enable the new supplier to start supplying gas to the customer’s premises.

3

(1) A supply exemption holder must not require a household customer to pay any sum in respect of a change of supplier by that household customer.

(2) Sub-paragraph (1) does not prevent a supply exemption holder from requiring payment of any termination fee payable under any contract between it and the household customer.

(3) A supply exemption holder must take all reasonable steps to ensure that a final bill in respect of any unpaid charges for gas supplied to a household customer’s premises is sent to that customer within 6 weeks of the date on which the supply exemption holder stops supplying gas to the premises.

Customer contracts

4

(1) Where a supply exemption holder enters into a contract with a household customer for the supply of gas it must provide the customer with a copy of the contract.

(2) The contract must specify—

(a) the identity and address of the supply exemption holder;

(b) the services provided, including any maintenance services provided;

(d) if a connection is required, when that connection will take place;

(e) the means by which up-to-date information may be obtained about—

(i) any applicable tariffs and maintenance charges; and

(ii) the supply exemption holder’s standard terms and conditions;

(f) the duration of the contract;

(g) any conditions for renewal of the contract;

(h) any conditions for termination of the contract or of any services provided under it, and whether the customer can terminate the contract if the supply exemption holder increases the applicable tariffs or charges, or changes one or more of the main contractual conditions;

(i) any charges for early termination of the contract;

(j) any compensation and refund arrangements which apply if any service quality levels specified in the contract are not met, including any arrangements which apply in the event of inaccurate or delayed billing;

(k) the methods of dispute resolution available to the customer in the event of a dispute with the supply exemption holder, including how such dispute resolution procedures can be initiated; and

(l) where further information on the customer’s rights as a consumer of gas can be found.

(3) If a supply exemption holder intends to increase the applicable tariffs or charges payable under a contract with a household customer it must inform that customer of the change and of any applicable termination rights as soon as practicable and no later than the date on which the customer is first charged for electricity at the increased rate.

(4) If a supply exemption holder intends to change any of the main contractual conditions of a contract with a household customer it must inform that customer of the change and of any applicable termination rights at least one month before the change is to come into effect.

(5) Any charge made under the contract for offering a particular payment method, including any charge for use of a pre-payment meter, must reflect the cost to the supply exemption holder of making that payment method available.

(6) A supply exemption holder must not treat a household customer or groups of household customers differently without good reason when offering different payment methods to customers.

(7) In this paragraph, “main contractual conditions” means any conditions of the contract which relate to a matter mentioned in any of paragraphs (b), (c) and (f) to (j) of sub-paragraph (2).

Customer information

5

(1) No later than 12 months after entering into a contract with a customer to start supplying gas to any premises, and at intervals of not less than 12 months thereafter, a supply exemption holder must send the customer the information specified in sub-paragraph (3), (4) or (5) (whichever is applicable).

(2) But the supply exemption holder is required to specify the matters mentioned in sub-paragraphs (3)(b) and (4)(b) only so far as it is reasonably practicable to do so.

(3) If the customer is charged for its supply wholly or partly by reference to the quantity of gas supplied and a meter records the quantity supplied to that customer separately from the quantity supplied to other customers, the information in question is—

(a) the number of that meter if it has one;

(b) the amount of gas recorded by that meter as having been consumed by that customer in the 12 months immediately preceding the date on which the information is sent (or in the part of that period during which the supply exemption holder supplied electricity to those premises under the contract with the customer); and

(4) If the customer is charged for its supply wholly or partly by reference to the quantity of gas supplied and that quantity is not recorded using a separate meter, the information in question is—

(a) the number of any meter that recorded the total gas consumed by that customer and other customers in the 12 months immediately preceding the date on which the information is sent (or in any part of that period during which the supply exemption holder supplied gas to those premises under the contract with the customer);

(b) the amount of gas recorded by that meter; and

(5) If the customer is not charged for its supply by reference to the quantity of gas supplied, the information in question is the total cost that the customer has been charged for that gas in the 12 months immediately preceding the date on which the information is sent.

(6) A supply exemption holder who is supplying electricity to any premises under a contract with a customer must comply with any written request by the customer to send relevant information—

(a) to the customer, or

(b) to a person who is not currently supplying electricity to the premises under a contract with the customer but has expressed an interest in doing so.

(7) In sub-paragraph (6) “relevant information” means—

(a) if information has been sent to a customer in accordance with sub-paragraph (1) in the previous 12 months, a copy of that information;

(b) in any other case, so much of the information referred to in sub-paragraph (1) as can be readily provided by the supply exemption holder.

(8) A supply exemption holder must not require a customer to pay for any costs associated with preparing or sending information to the customer, or to any other person at the customer’s request, in accordance with this paragraph.

6

(1) A supply exemption holder must—

(a) with each bill inform each customer what methods of dispute resolution are available to the customer in the event of a dispute with the supply exemption holder; and

(b) with each bill inform each household customer—

(i) where the energy consumer guidance and the concise guidance can be found; and

(ii) that the household customer has a right to request a copy of the concise guidance from the supply exemption holder.

(2) At the end of any period of 12 months during which a supply exemption holder has supplied a customer with gas but has not sent a bill (nor provided the customer with information under this sub-paragraph) the supply exemption holder must inform the customer of—

(a) the matters mentioned in sub-paragraph (1)(a), and

(b) if the customer is a household customer, the matters mentioned in sub-paragraph (1)(b).

(3) A supply exemption holder must send a household customer a copy of the concise guidance within one month of receiving a request for it from or on behalf of that customer.

(4) A supply exemption holder must not require a customer to pay for any costs associated with preparing or sending information to the customer in accordance with this paragraph.

(5) In this paragraph—

(a) “the energy consumer guidance” means any guidance such as in mentioned in section 19A(1)(a) of the Consumers, Estate Agents and Redress Act 2007 which is published under that section; and

(b) “the concise guidance” means any summary such as is mentioned in section 19A(1)(b) of that Act which is so published.

Determination of disputes

7

(1) Sections 27C and 27D apply in relation to an exempt supply dispute as they apply in relation to a section 27B dispute such as is mentioned in section 27B(1), but as if in section 27C(8) the words “against whom a complaint is made as mentioned in section 27B(1)(a), and” were omitted.

(2) A dispute is an “exempt supply dispute” if—

(a) it is wholly or mainly a dispute—

(i) regarding an obligation of a supply exemption holder under this Schedule; or

(ii) as to whether a supply exemption holder who has objected to a change of supplier because of a reason in paragraph 2(5) of this Schedule was entitled to object on that basis;

(b) it arises from a written complaint made against the supply exemption holder; and

Interpretation

8

In this Schedule, unless the context otherwise requires—

“customer” means a person who purchases gas for the person’s own consumption;

“household customer” means a customer who purchases gas for consumption by the customer’s own household.

SCHEDULE 4A

Application for permission to bring appeal

1

(1) An application for permission to bring an appeal may be made only by sending a notice to the CMA requesting the permission.

(2) Only a person entitled under section 23B to bring the appeal if permission is granted may apply for permission.

(3) Where the Authority publishes a decision to modify the conditions of any licence under section 23(7), any application for permission to appeal is not to be made after the end of 20 working days beginning with the first working day after the day on which the decision is published.

(4) An application for permission to appeal must be accompanied by all such information as may be required by appeal rules.

(5) Appeal rules may require information contained in an application for permission to appeal to be verified by a statement of truth.

(6) A person who applies for permission to bring an appeal in accordance with this paragraph is referred to in this Schedule as the appellant.

(7) The appellant must send the Authority—

(a) a copy of the application for permission to appeal at the same time as it is sent to the CMA ; and

(b) such other information as may be required by appeal rules.

(8) The CMA's decision whether to grant permission to appeal is to be taken by an authorised member of the CMA .

(9) Before the authorised member decides whether to grant permission under this paragraph, the Authority must be given an opportunity of making representations or observations, in accordance with paragraph 3(2).

(10) The CMA's decision on an application for permission must be made—

(a) where the Authority makes representations or observations in accordance with paragraph 3(2), before the end of 10 working days beginning with the first working day after the day on which those representations or observations are received;

(b) in any other case, before the end of 14 working days beginning with the first working day after the day on which the application for permission is received.

(11) The grant of permission may be made subject to conditions, which may include—

(a) conditions which limit the matters that are to be considered on the appeal in question;

(b) conditions for the purpose of expediting the determination of the appeal; and

(c) conditions requiring that appeal to be considered together with other appeals (including appeals relating to different matters or decisions and appeals brought by different persons).

(12) Where a decision is made to grant or to refuse an application for permission, an authorised member of the CMA must notify the decision, giving reasons—

(a) to the appellant; and

(b) to the Authority.

(13) A decision of the CMA under this paragraph must be published, in such manner as an authorised member of the CMA considers appropriate, as soon as reasonably practicable after it is made.

(14) Section 23G(2) applies to the publication of a decision under sub-paragraph (13) as it does to the publication of a decision under section 23G.

Suspension of decision

2

(1) The CMA may direct that, pending the determination of an appeal against a decision of the Authority—

(a) the decision is not to have effect; or

(b) the decision is not to have effect to such extent as may be specified in the direction.

(2) The power to give a direction under this paragraph is exercisable only where—

(a) an application for its exercise has been made by the appellant at the same time that the appellant made an application in accordance with paragraph 1(3) for permission to bring an appeal against a decision of the Authority;

(b) the Authority has been given an opportunity of making representations or observations, in accordance with paragraph 3(2);

(c) the relevant licence holder, the licence holder or consumers whose interests are materially affected mentioned in section 23B(2) (as the case may be) would incur significant costs if the decision were to have effect before the determination of the appeal; and

(d) the balance of convenience does not otherwise require effect to be given to the decision pending that determination.

(3) The CMA's decision on an application for a direction under this paragraph must be made—

(a) where the Authority makes representations or observations in accordance with paragraph 3(2), before the end of 10 working days beginning with the first working day after the day on which those representations or observations are received;

(b) in any other case, before the end of 14 working days beginning with the first working day following the day on which the application under sub-paragraph (2)(a) is received.

(4) The appellant must send the Authority a copy of the application for a direction under this paragraph at the same time as it is sent to the CMA .

(5) The CMA's decision whether to give a direction is to be taken by an authorised member of the CMA .

(6) A direction under this paragraph must be—

(a) given by an authorised member of the CMA ; and

(b) published, in such manner as an authorised member of the CMA considers appropriate, as soon as reasonably practicable after it is given.

(7) Section 23G(2) applies to the publication of a direction under sub-paragraph (6) as it does to the publication of a decision under section 23G.

Time limit for representations and observations by the Authority

3

(1) Sub-paragraph (2) applies where the Authority wishes to make representations or observations to the CMA in relation to—

(a) an application for permission to bring an appeal under paragraph 1;

(b) an application for a direction under paragraph 2.

(2) The Authority must make the representations or observations in writing before the end of 10 working days beginning with the first working day after the day on which it received a copy of the application under paragraph 1(7) or 2(4) as the case may be.

(3) Sub-paragraph (4) applies where an application for permission to bring an appeal has been granted and the Authority wishes to make representations or observations to the CMA in relation to—

(a) the Authority’s reasons for the decision in relation to which the appeal is being brought;

(b) any grounds on which that appeal is being brought against that decision.

(4) The Authority must make the representations or observations in writing before the end of 15 working days beginning with the first working day after the day on which permission to bring the appeal was granted.

(5) The Authority must send a copy of the representations and observations it makes under this paragraph to the appellant.

Consideration and determination of appeal by group

4

(1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(2) A group constituted by the chair of the CMA under Schedule 4 to the Enterprise and Regulatory Reform Act 2013 for the purpose of carrying out functions of the CMA with respect to an appeal under section 23B must consist of three members of the CMA panel .

(3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(4) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(5) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(6) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(7) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(8) A decision of the group is effective if, and only if—

(a) all the members of the group are present when it is made; and

(b) at least two members of the group are in favour of the decision.

Matters to be considered on appeal

5

(1) The CMA , if it thinks it necessary to do so for the purpose of securing the determination of an appeal within the period provided for by section 23F, may disregard—

(a) any or all matters raised by an appellant that were not raised by that appellant at the time of the relevant application; and

(b) any or all matters raised by the Authority that were not contained in representations or observations made for the purposes of the appeal in accordance with paragraph 3.

(2) In this paragraph “relevant application” means an application under paragraph 1 or 2.

Production of documents etc.

6

(1) For the purposes of this Schedule, the CMA may, by notice, require—

(a) a person to produce to the CMA the documents specified or otherwise identified in the notice;

(b) any person who carries on a business to supply to the CMA such estimates, forecasts, returns or other information as may be specified or described in the notice in relation to that business.

(2) The power to require the production of a document, or the supply of any estimate, forecast, return or other information, is a power to require its production or, as the case may be, supply—

(a) at the time and place specified in the notice; and

(b) in a legible form.

(3) No person is to be compelled under this paragraph to produce a document or supply an estimate, forecast, return or other information that the person could not be compelled to produce in civil proceedings in the High Court or Court of Session.

(4) An authorised member of the CMA may, for the purpose of the exercise of the functions of the CMA, make arrangements for copies to be taken of a document produced or an estimate, forecast, return or other information supplied ... under this paragraph.

(5) A notice for the purposes of this paragraph—

(a) may be issued on the CMA's behalf by an authorised member of the CMA ;

(b) must include information about the possible consequences of not complying with the notice (as set out in paragraph 10).

Oral hearings

7

(1) For the purposes of this Schedule an oral hearing may be held, and evidence may be taken on oath—

(a) by a person considering an application for permission to bring an appeal under paragraph 1;

(b) by a person considering an application for a direction under paragraph 2; or

and, for that purpose, such a person or group may administer oaths.

(2) The CMA may, by notice, require a person—

(a) to attend at a time and place specified in the notice; and

(b) at that time and place, to give evidence to a person or group mentioned in sub-paragraph (1).

(3) At any oral hearing the person or group conducting the hearing may require—

(a) the appellant, or the Authority, if present at the hearing to give evidence or to make representations or observations; or

(b) a person attending the hearing as a representative of the appellant or of the Authority to make representations or observations.

(4) A person who gives oral evidence at the hearing may be cross-examined by or on behalf of any party to the appeal.

(5) If the appellant, the Authority, or the appellant’s or Authority’s representative is not present at a hearing—

(a) there is no requirement to give notice to that person under sub-paragraph (2); and

(b) the person or group conducting the hearing may determine the application or appeal without hearing that person’s evidence, representations or observations.

(6) No person is to be compelled under this paragraph to give evidence which that person could not be compelled to give in civil proceedings in the High Court or Court of Session.

(7) Where a person is required under this paragraph to attend at a place more than 10 miles from that person’s place of residence, an authorised member of the CMA must arrange for that person to be paid the necessary expenses of attendance.

(8) A notice for the purposes of this paragraph may be issued on the CMA's behalf by an authorised member of the CMA .

Written statements

8

(1) The CMA may, by notice, require a person to produce a written statement with respect to a matter specified in the notice to—

(a) a person who is considering, or is to consider, an application for a direction under paragraph 2; or

(b) a group with the function of determining an appeal.

(2) The power to require the production of a written statement includes power—

(a) to specify the time and place at which it is to be produced; and

(b) to require it to be verified by a statement of truth;

and a statement required to be so verified must be disregarded unless it is so verified.

(3) No person is to be compelled under this paragraph to produce a written statement with respect to any matter about which that person could not be compelled to give evidence in civil proceedings in the High Court or Court of Session.

(4) A notice for the purposes of this paragraph may be issued on the CMA's behalf by an authorised member of the CMA .

Expert advice

9

Where permission to bring an appeal is granted under paragraph 1 the CMA may commission expert advice with respect to any matter raised by a party to that appeal.

Defaults in relation to evidence

10

(1) If a person (“the defaulter”)—

(a) fails to comply with a notice issued or other requirement imposed under paragraph 6, 7 or 8;

(b) in complying with a notice under paragraph 8, makes a statement that is false in any material particular; or

(c) in providing information verified in accordance with a statement of truth required by appeal rules, provides information that is false in a material particular,

an authorised member of the CMA may certify the failure, or the fact that such a false statement has been made or such false information has been given, to the High Court or the Court of Session.

(2) The High Court or Court of Session may inquire into a matter certified to it under this paragraph; and if, after having heard—

(a) any witness against or on behalf of the defaulter; and

(b) any statement in that defaulter’s defence,

it is satisfied that the defaulter did, without reasonable excuse, fail to comply with the notice or other requirement, or made the false statement, or gave the false information, that court may punish that defaulter as if the person had been guilty of contempt of court.

(3) Where the High Court or Court of Session has power under this paragraph to punish a body corporate for contempt of court, it may so punish any director or other officer of that body (either instead of or as well as punishing the body).

(4) A person who wilfully alters, suppresses or destroys a document that that person has been required to produce under paragraph 6 is guilty of an offence and shall be liable—

(a) on summary conviction, to—

(i) in England and Wales, a fine not exceeding the statutory maximum, and

(ii) in Scotland, a fine not exceeding £5,000;

(b) on conviction on indictment, to imprisonment for a term not exceeding two years or to a fine, or to both.

Appeal rules

11

(1) The CMA Board may make rules of procedure regulating the conduct and disposal of appeals under section 23B.

(2) Those rules may include provision supplementing the provisions of this Schedule in relation to any application, notice, hearing, power or requirement for which this Schedule provides; and that provision may, in particular, impose time limits or other restrictions on—

(a) the taking of evidence at an oral hearing; or

(b) the making of representations or observations at such a hearing.

(3) The CMA Board must publish rules made under this paragraph in such manner as it considers appropriate for the purpose of bringing them to the attention of those likely to be affected by them.

(4) Before making rules under this paragraph, the CMA Board must consult such persons as it considers appropriate.

(5) Rules under this paragraph may make different provision for different cases.

Costs

12

(1) A group that determines an appeal must make an order requiring the payment to the CMA of the costs incurred by the CMA in connection with the appeal.

(2) An order under sub-paragraph (1) must require those costs to be paid—

(a) where the appeal is allowed in full, by the Authority;

(b) where the appeal is dismissed in full, by the appellant;

(c) where the appeal is partially allowed, by one or more parties in such proportions as the CMA considers appropriate in all the circumstances.

(3) The group that determines an appeal may also make such order as it thinks fit for requiring a party to the appeal to make payments to another party in respect of costs reasonably incurred by that other party in connection with the appeal.

(4) A person who is required by an order under this paragraph to pay a sum to another person must comply with the order before the end of the period of 28 days beginning with the day after the making of the order.

(5) Sums required to be paid by an order under this paragraph but not paid within the period mentioned in sub-paragraph (4) shall bear interest at such rate as may be determined in accordance with provision contained in the order.

(6) Any costs payable by virtue of an order under this paragraph and any interest that has not been paid may be recovered as a civil debt by the person in whose favour that order is made.

Interpretation of Schedule

13

(1) In this Schedule—

“appeal” means an appeal under section 23B;

“appeal rules” means rules of procedure under paragraph 11;

“ authorised member of the CMA - in relation to a power exercisable in connection with an appeal in respect of which a group has been constituted by the chair of the CMA under Schedule 4 to the Enterprise and Regulatory Reform Act 2013, means a member of that group who has been authorised by the chair of the CMA to exercise that power;in relation to a power exercisable in connection with an application for permission to bring an appeal, or otherwise in connection with an appeal in respect of which a group has not been so constituted by the chair of the CMA, means—(i) any member of the CMA Board who is also a member of the CMA panel, or(ii) any member of the CMA panel authorised by the Secretary of State (whether generally or specifically) to exercise the power in question.

“ CMA Board" and "CMA panel ” have the same meaning as in Schedule 4 to the Enterprise and Regulatory Reform Act 2013;

“statement of truth”, in relation to the production of a statement or provision of information by a person, means a statement that the person believes the facts stated in the statement or information to be true;

“working day” means any day other than—Saturday or Sunday;Christmas Day or Good Friday;a day which is a bank holiday in England and Wales or Scotland under the Banking and Financial Dealings Act 1971.

(2) References in this Schedule to a party to an appeal are references to—

(a) the appellant; or

(b) the Authority.

SCHEDULE 4B

1

The following are relevant provisions in relation to all licence holders (except the holder of a smart meter communication licence) or code manager licence—

(a) section 33DB;

(b) section 33F;

(i) section 25(5) (directions to comply with requirements under section 24 of that Act),

(ii) sections 43, 46 and 47 (complaints);

(d) Article 18(6) of the Gas Regulation (duties to make available information about gas demand and supply).

2

The following are relevant provisions in relation to all holders of a licence under section 7—

(a) section 9(1), (1A) and (2);

(b) section 10(2), (3) and (14);

(d) section 11(2);

(e) section 12(1) and (6);

(f) section 16(10);

(g) section 18(11);

(h) section 22A(1);

(i) section 27A(5);

(j) section 33BA;

(k) section 33C;

(l) section 33D;

(m) paragraphs 3, 6, 15, 16 and 28(2) of Schedule 2B;

(n) sections 26 to 29 of the Energy Act 2010 (adjustment of charges to help disadvantaged groups of customers).

3

The following are relevant provisions in relation to a person who holds a licence under section 7 or 7ZA and is required to be certified under section 8F—

(a) section 8C;

(b) section 8D(4) and (6);

(d) in the Gas Regulation—

(i) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(ii) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(iii) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(iv) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(v) Article 13 (duties relating to tariffs for access to networks),

(vi) Article 14 (duties relating to third-party access services),

(vii) Article 16 (duties relating to capacity allocation and congestion management),

(viii) Article 18(1), (2), (3) and (5) (transparency requirements concerning transmission system operators),

(ix) Article 19(4) (publication requirements concerning storage facilities and LNG facilities),

(x) Article 20 (duty to keep records),

(xi) Article 21 (duties relating to balancing rules and imbalance charges),

(xii) Article 22 (duties relating to trading of capacity rights);

(e) in Annex 1 to the Gas Regulation (guidelines)—

(i) points 1 to 10 under heading 1 (duties relating to third-party access services),

(ii) points 1 to 6 under sub-heading 2.1 (duties relating to capacity allocation and congestion management),

(iii) points 2.2.1(3), 2.2.2, 2.2.3, 2.2.4 and 2.2.5 under sub-heading 2.2 (duties relating to congestion management procedures in the event of contractual congestion),

(iv) points 3.1.1 and 3.1.2 under sub-heading 3.1 (duties concerning publication of technical information necessary for access to the system),

(v) points 2 and 3 under sub-heading 3.2 (duties concerning publication of information for certain relevant points of the network),

(vi) points 1 to 5 under sub-heading 3.3 (duties concerning publication of information at all relevant points of the network),

(vii) points 1 to 7 under sub-heading 3.4 (duties concerning publication of information about the transmission system).

4

The following are relevant provisions in relation to the holder of a licence under section 7A—

(a) section 27A(6);

(b) sections 33Band 33C;

(d) paragraphs 3, 6 and 28(2) of Schedule 2B;

(e) in the Energy Act 2010—

(i) sections 9 and 11 (schemes for reducing fuel poverty),

(ii) sections 26 to 29 (adjustment of charges to help disadvantaged groups of customers).

(f) section 3(2), (3) or (4) of the Energy Prices Act 2022, except section 3(2)(c) or (4)(b) insofar as non-compliance with the terms of the designated scheme involves the amounts payable by or to the Secretary of State under the scheme;

(g) section 22 of the Energy Prices Act 2022.

5

The following paragraphs of Schedule 2AA are relevant provisions in relation to a distribution exemption holder—

(a) paragraph 1(3), (4) and (6) to (8);

(b) paragraph 2(2) to (4), (6) and (9);

(d) paragraph 5(1) to (4), (6), (8) and (9);

(e) paragraph 6(2);

(f) paragraph 7(3) and (4);

(g) paragraph 8(3) and (8);

(h) paragraph 9;

(i) paragraph 13(2);

(j) paragraph 14(5), (6), (9) and (12);

(k) paragraph 15(1).

6

The following are relevant provisions in relation to a supply exemption holder—

(a) paragraph 3(4) of Schedule 2AA;

(b) the following paragraphs of Schedule 2AB—

(i) paragraph 1(2), (3), (6) and (7),

(ii) paragraph 2(6),

(iii) paragraph 3(1) and (3),

(iv) paragraph 4,

(v) paragraph 5(1), (6) and (8),

(vi) paragraph 6.

7

The following are relevant provisions in relation to an owner of a storage facility—

(a) section 8R(2), (3), (4), (6) and (7);

(b) section 11A(2);

(d) section 19B(1), (3), (3A), (3B), (7) and (11);

(e) section 19E(2) and (3);

(f) in the Gas Regulation—

(i) Article 15 (duties relating to third-party access services),

(ii) Article 17 (duties relating to capacity allocation and congestion management),

(iii) Article 19 (transparency requirements concerning storage facilities),

(iv) Article 20 (duty to keep records),

(v) Article 22 (duties relating to trading of capacity rights).

8

The following are relevant provisions in relation to an owner of an LNG import or export facility—

(a) section 11A(2);

(b) section 11B;

(d) section 19D(1), (2A), (2B), (3), (7) and (11);

(e) section 19E(2) and (3);

(f) in the Gas Regulation—

(i) Article 15(1) and (3) to (5) (duties relating to third-party access services),

(ii) Article 17 (duties relating to capacity allocation and congestion management),

(iii) Article 19 (transparency requirements concerning LNG facilities),

(iv) Article 20 (duty to keep records),

(v) Article 22 (duties relating to trading of capacity rights).

9

The following are relevant provisions in relation to a gas undertaking which is a relevant producer or supplier—

(a) section 8D(5) and (6);

(b) section 8L(3) and (4);

(c) section 10B(5) and (6) of the Electricity Act 1989 (duties concerning supply of information for application for certification as to independence);

(d) section 10J(3) and (4) of that Act (duties concerning supply of information for review of certification as to independence);

(e) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(f) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

10

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

33BD

(1) The Secretary of State may by order impose—

(a) on each gas transporter (or each gas transporter of a specified description); and

(b) on each gas supplier (or each gas supplier of a specified description),

an obligation to achieve, within a specified period and in accordance with the order, the home-heating cost reduction target to be determined by the Administrator under the order for that transporter or supplier (and that obligation is referred to in this section as a “home-heating cost reduction obligation”).

(2) In this section—

(a) “the Administrator” means—

(i) the Authority; or

(ii) if the order so provides, the Secretary of State or a specified body other than the Authority;

(b) “home-heating cost reduction target” means a target for the promotion of measures for reducing the cost to individuals of heating their homes;

(3) The power to make orders under this section may be exercised so as to impose more than one home-heating cost reduction obligation on a person in relation to the same period or to periods that overlap to any extent.

(4) Subsections (3), (5) to (8), (9A) and (10A) to (12B) of section 33BC apply to an order under this section as they apply to an order under that section, with the following modifications—

(a) for “carbon emissions reduction obligation” (in each place) substitute “ home-heating cost reduction obligation ”;

(b) for “carbon emissions reduction obligations” (in each place) substitute “ home-heating cost reduction obligations ”;

(c) for “carbon emissions reduction target” (in each place other than in paragraph (be) of subsection (5)) substitute “ home-heating cost reduction target ”;

(d) for “carbon emissions reduction targets” (in each place) substitute “ home-heating cost reduction targets ”; and

(e) omit paragraph (a) of subsection (10A).

(5) Subsections (4) and (9B) of section 33BC apply to the carrying out by the Secretary of State and the Administrator of their respective functions under this section as they apply to the carrying out by those persons of their functions under that section.

(6) No person shall be required by virtue of this section to provide any information which he could not be compelled to give in evidence in civil proceedings in the High Court or, in Scotland, the Court of Session.

Application by Authority for order excluding activities.

Scottish Ministers' promotion of reductions in home-heating costs: gas suppliers

Application by Authority for order excluding activities.

7AB

(1) Subject to subsections (4) and (5), the Authority may grant a licence authorising a person to provide a smart meter communication service (“a smart meter communication licence”).

(2) Subject to subsections (3) and (5), the Secretary of State may grant a smart meter communication licence.

(3) The Secretary of State may not grant a smart meter communication licence after 1 November 2018.

(4) The first smart meter communication licence may only be granted by the Secretary of State.

(5) A person may not be granted a smart meter communication licence unless the same person is at the same time granted a licence under section 6(1)(f) of the Electricity Act 1989.

9A

The following are relevant provisions in relation to the holder of a smart meter communication licence or a code manager licence—

(a) section 33F; and

(b) section 25(5) of the Consumers, Estate Agents and Redress Act 2007 (directions to comply with requirements under section 24 of that Act).

30G

(1) This section applies where the Authority is satisfied that—

(a) a regulated person has contravened, or is contravening, any relevant condition or requirement, and

(b) as a result of the contravention, one or more consumers have suffered loss or damage or been caused inconvenience.

(2) The Authority may make an order (a “consumer redress order”) requiring the regulated person to do such things as appear to the Authority necessary for the purposes of—

(a) remedying the consequences of the contravention, or

(b) preventing a contravention of the same or a similar kind from being repeated.

(3) A consumer redress order must specify the following—

(a) the regulated person to whom the order applies;

(b) the contravention in respect of which the order is made;

(d) the requirements imposed by the order;

(e) the date by which the regulated person must comply with such requirements.

(4) As soon as practicable after making a consumer redress order, the Authority must—

(a) serve a copy of the order on the regulated person to whom the order applies, and

(b) either—

(i) serve a copy of the order on each affected consumer, or

(ii) publish the order in such manner as the Authority considers appropriate for the purpose of bringing it to the attention of affected consumers.

(5) The date specified in a consumer redress order under subsection (3)(e) may not be earlier than the end of the period of 7 days from the date of the service of a copy of the order on the regulated person.

(6) Different dates may be specified under subsection (3)(e) in relation to different requirements imposed by the order.

(7) This section is subject to sections 30H to 30O.

(8) In this section and in sections 30H to 30O—

“affected consumers”, in relation to a consumer redress order (or proposed order), are those consumers that the Authority is satisfied have suffered loss or damage, or been caused inconvenience, as a result of the contravention in respect of which the order is (or would be) made;

“consumers” means consumers in relation to gas conveyed through pipes;

“consumer redress order” means an order under subsection (2).

30H

(1) The things mentioned in section 30G(2) that a regulated person may be required to do under a consumer redress order (“the required remedial action”) include, in particular—

(a) paying an amount to each affected consumer by way of compensation for the loss or damage suffered, or for the inconvenience caused, as a result of the contravention;

(b) preparing and distributing a written statement setting out the contravention and its consequences;

(2) Where the required remedial action includes the payment of compensation, the order must specify—

(a) the amount of compensation to be paid, and

(b) the affected consumers, or a description of such consumers, to whom it is to be paid.

(3) Where the required remedial action includes the preparation and distribution of a statement, the order may specify the information to be contained in the statement and the form and manner in which it is to be distributed.

(4) The manner so specified may in particular include—

(a) sending a copy of the statement to each affected consumer;

(b) publishing the statement in such manner as the Authority considers appropriate for the purpose of bringing the statement to the attention of those consumers.

(5) Where the required remedial action includes the termination or variation of a contract with an affected consumer—

(a) the order may specify the terms on which the contract is to be terminated or the way in which it is to be varied,

(b) the requirement has effect only if, and to the extent that, the affected consumer consents to the termination of the contract on those terms or to its variation in that way, and

(c) the order may specify the steps to be taken by the regulated person for the purpose of enabling the affected consumer to give such consent.

30I

(1) Before making a consumer redress order the Authority must give notice stating that it proposes to make the order.

(2) A notice under subsection (1) must specify—

(a) the regulated person to whom the order will apply,

(b) the contravention in respect of which the order is to be made,

(d) the requirements to be imposed by the order and the period within which such requirements are to be complied with, and

(e) the time (not being less than 21 days from the relevant date) by which representations or objections with respect to the proposed order may be made,

and the Authority must consider any representations or objections which are duly made and not withdrawn.

(3) Before varying any proposal stated in a notice under subsection (1) the Authority must give notice specifying—

(a) the proposed variation and the reasons for it, and

(b) the time (not being less than 21 days from the relevant date) by which representations or objections with respect to the proposed variation may be made,

and the Authority must consider any representations or objections which are duly made and not withdrawn.

(4) Before revoking a consumer redress order the Authority must give notice—

(a) stating that it proposes to revoke the order and the reasons for doing so, and

(b) specifying the time (not being less than 21 days from the relevant date) within which representations or objections to the proposed revocation may be made,

and the Authority must consider any representations or objections which are duly made and not withdrawn.

(5) A notice required to be given under this section is to be given—

(a) by serving a copy of the notice on the regulated person, and

(b) either—

(i) by serving a copy of the notice on each affected consumer, or

(ii) by publishing the notice in such manner as the Authority considers appropriate for the purpose of bringing the matters to which the notice relates to the attention of affected consumers.

(6) The “relevant date”, in relation to a notice under this section, is—

(a) in a case where the notice is published in accordance with subsection (5)(b)(ii), the date on which it is published;

(b) in any other case, the latest date on which a copy of the notice is served in accordance with subsection (5)(a) and (b)(i).

30J

(1) The Authority must prepare and publish a statement of policy with respect to—

(a) the making of consumer redress orders, and

(b) the determination of the requirements to be imposed by such orders (including, in particular, the considerations the Authority will have regard to in determining such requirements).

(2) The Authority must have regard to its current statement of policy—

(a) in deciding whether to make a consumer redress order in respect of a contravention, and

(b) in determining the requirements to be imposed by any such order.

(3) The Authority may revise its statement of policy and, where it does so, must publish the revised statement.

(4) Publication under this section is to be in such manner as the Authority considers appropriate for the purpose of bringing the matters contained in the statement of policy to the attention of persons likely to be affected by them.

(5) The Authority must consult such persons as it considers appropriate when preparing or revising its statement of policy.

30K

(1) Where no final or provisional order has been made in relation to a contravention, the Authority may not give a consumer redress order in respect of the contravention later than the end of the period of 5 years from the time of the contravention.

(2) Subsection (1) does not apply if before the end of that period—

(a) the notice under section 30I(1) relating to the order is served on the regulated person, or

(b) a notice relating to the contravention is served on the regulated person under section 38(1).

(3) Where a final or provisional order has been made in relation to a contravention, the Authority may give a consumer redress order in respect of the contravention only if the notice relating to the consumer redress order under section 30I(1) is served on the regulated person—

(a) within 3 months from the confirmation of the provisional order or the making of the final order, or

(b) where the provisional order is not confirmed, within 6 months from the making of the provisional order.

30L

(1) Compliance with a consumer redress order is enforceable by civil proceedings by the Authority—

(a) for an injunction or interdict,

(b) for specific performance of a statutory duty under section 45 of the Court of Session Act 1988, or

(2) Proceedings under subsection (1) are to be brought—

(a) in England and Wales, in the High Court, or

(b) in Scotland, in the Court of Session.

(3) The obligation of a regulated person to comply with a consumer redress order is a duty owed to any person who may be affected by a contravention of the order.

(4) Without limiting the Authority's right to bring civil proceedings under subsection (1), a duty owed to any person (“P”) by virtue of subsection (3) may be enforced by civil proceedings by P for any appropriate remedy or relief.

(5) For the purposes of subsection (4), the duty owed to P may in particular be enforced by P as if it were contained in a contract between P and the regulated person who owes the duty.

30M

(1) A regulated person in respect of whom a consumer redress order is made may make an application to the court under this section if the person is aggrieved by—

(a) the making of the order, or

(b) any requirement imposed by the order.

(2) An application under subsection (1) must be made within 42 days from the date of service on the regulated person of a copy of the order under section 30G(4)(a).

(3) On an application under subsection (1) the court may—

(a) quash the order or any provision of the order, or

(b) vary any such provision in such manner as the court considers appropriate.

(4) The court may exercise the powers under subsection (3) only if it considers it appropriate to do so in all the circumstances of the case and is satisfied of one or more of the following grounds—

(a) that the making of the order was not within the power of the Authority under section 30G;

(b) that any of the requirements under section 30G(4) and 30I have not been complied with in relation to the making of the order and the interests of the regulated person have been substantially prejudiced by the non-compliance;

(c) that it was unreasonable of the Authority to require something to be done under the order (whether at all or in accordance with the provisions of the order).

(5) If an application is made under this section in relation to a consumer redress order, a requirement imposed by the order does not need to be carried out in accordance with the order until the application has been determined.

(6) Where the court substitutes a lesser amount of compensation for an amount required by the Authority in a consumer redress order, it may require the payment of interest on the substituted amount at such rate, and from such date, as it considers just and equitable.

(7) Where the court specifies as a date by which any compensation under a consumer redress order is to be paid a date before the determination of the application under this section, it may require the payment of interest on the amount from that date at such rate as it considers just and equitable.

(8) Except as provided by this section, the validity of a consumer redress order is not to be questioned by any legal proceedings whatever.

(9) In this section “the court” means—

(a) in relation to England and Wales, the High Court;

(b) in relation to Scotland, the Court of Session.

30N

(1) If—

(a) compensation is required to be paid under a consumer redress order, and

(b) it is not paid by the date by which it is required to be paid in accordance with the order,

the unpaid balance from time to time carries interest at the rate for the time being specified in section 17 of the Judgments Act 1838.

(2) The Authority may not make a consumer redress order where it is satisfied that the most appropriate way of proceeding is under the Competition Act 1998.

(3) The Authority's power to make a consumer redress order as a result of a contravention of a relevant condition or requirement is not to be taken as limiting the Authority's power to impose a penalty under section 30A in relation to the same contravention (whether instead of, or in addition to, making a consumer redress order).

(4) The power of the Authority to make a consumer redress order is not exercisable in respect of any contravention before the coming into force of Schedule 14 to the Energy Act 2013.

30O

(1) The maximum amount of penalty that may be imposed on a regulated person in respect of a contravention may not exceed 10 per cent of the person's turnover.

(2) The maximum amount of compensation that a regulated person may be required to pay in respect of a contravention may not exceed 10 per cent of the person's turnover.

(3) Subsections (1) and (2) are subject to subsection (4) if, in respect of a contravention, both a penalty is imposed and compensation is required to be paid.

(4) The maximum amount in total of the penalty and compensation combined in respect of the contravention may not exceed 10 per cent of the regulated person's turnover.

(5) The Secretary of State may by order provide for how a person's turnover is to be determined for the purposes of this section.

(6) An order under subsection (5) may make different provision for penalties and compensation.

(7) An order under subsection (5) shall not be made unless a draft of the instrument containing it has been laid before and approved by a resolution of each House of Parliament.

(8) In this section—

“compensation” means compensation that a regulated person is required to pay by a consumer redress order;

“penalty” means a penalty imposed on a regulated person under section 30A.

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

33BCA

(1) Where the Secretary of State under section 33BC imposes on gas suppliers obligations to achieve a target within a specified period, the power to make orders under that section is exercisable by the Scottish Ministers for the purposes of those obligations imposed in relation to Scotland and not, except as provided by subsections (9) and (10), by the Secretary of State.

(2) An obligation is imposed in relation to Scotland to the extent that measures to meet that obligation may be carried out in Scotland (disregarding any power to elect under section 103 of the Utilities Act 2000).

(3) For the purposes of the exercise by the Scottish Ministers of the power to make an order under section 33BC, that section applies with the following modifications—

(a) for subsection (1) there is substituted a power by order to specify how gas suppliers may meet their obligations to achieve the carbon emissions reduction target through measures carried out in Scotland;

(b) subsections (1A), (3), (5)(a), (7)(a) , (7C), (7E) and (10A) are omitted;

(c) in subsection (2A) at the beginning of paragraph (b) there is inserted “where the Secretary of State has apportioned the overall carbon emissions reduction target under section 103(2A) of the Utilities Act 2000, and”;

(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”;

(d) in subsection (11) “Citizens Advice” and “gas transporters” are omitted;

(e) in subsection (12), for the words from “shall not be made” to the end is substituted “ is subject to the affirmative procedure ”;

(f) in subsection (12A) for the words from “shall be subject to” to the end is substituted “ is subject to the negative procedure ”;

(g) for “Secretary of State” in each place other than in subsection (7D)(a) is substituted “ Scottish Ministers ”.

(4) The power of the Scottish Ministers under section 33BC does not include power to make provision in relation to the subject-matter of sections 88 to 90 of the Energy Act 2008 (smart meters).

(5) Where an overall carbon emissions reduction target has been apportioned under section 103(2A) of the Utilities Act 2000, the Scottish Ministers must—

(a) when making any order under section 33BC, comply with the duty in subsection (6), and

(b) if the Secretary of State amends any order under that section, make any provision they think necessary, in consequence of the amendment, to comply with that duty.

(6) The duty of the Scottish Ministers where subsection (5)(a) or (b) applies is to exercise their powers under section 33BC (subject to subsection (8)) in the way they think most likely to secure that the proportion of compliance costs that is represented by costs relating to Scotland is no greater than the proportion of the overall carbon emissions reduction target that is represented by the part of it apportioned to measures carried out in Scotland.

(7) In subsection (6)—

(a) “compliance costs” means the total costs to gas suppliers of complying with carbon emissions reduction obligations that, in relation to any period, are imposed by order under section 33BC, and

(b) “costs relating to Scotland” means the total costs to gas suppliers of complying with obligations that, in relation to the same period, are imposed in relation to Scotland.

(8) The Scottish Ministers may not make an order under section 33BC unless—

(a) they have consulted the Secretary of State about the proposed order, and

(b) the Secretary of State has agreed to the order being made.

(9) Subsection (1) does not prevent the Secretary of State from making provision under—

(a) section 33BC(1A), (3), (5)(a) , (7)(a), (7C) or (7E), or

(b) section 33BC(2A) where an overall carbon emissions reduction target has not been apportioned under section 103(2A) of the Utilities Act 2000.

(10) Subsection (1) does not prevent the Secretary of State from making any other provision under section 33BC or from varying or revoking an order made by the Scottish Ministers under that section—

(a) with the agreement of the Scottish Ministers, or

(b) without their agreement, if subsection (11) applies.

(11) This subsection applies if it appears to the Secretary of State, in the case of obligations imposed in relation to Scotland (the “Scottish obligations”), taking into account any provision made by the Scottish Ministers, that the Scottish obligations are, alone or in conjunction with obligations imposed or to be imposed in relation to England and Wales, likely to—

(a) cause detriment to the United Kingdom,

(b) adversely affect the ability of the United Kingdom to comply with an international agreement or arrangement in relation to climate change or energy efficiency, or

(c) result in costs incurred by suppliers that are not broadly equivalent in relation to England and Wales and in relation to Scotland,

and the Scottish Ministers have failed to comply with a request made to them by the Secretary of State to make modifications specified by the Secretary of State.

(12) In determining for the purposes of subsection (11), whether detriment is likely to be caused to the United Kingdom, considerations that the Secretary of State may take into account include the costs imposed on suppliers by virtue of obligations imposed or to be imposed by the Secretary of State under section 33BC or any provision made by the Scottish Ministers under that section.

(13) A request by the Secretary of State to the Scottish Ministers for the purposes of subsection (11)—

(a) must be in writing;

(b) must specify only modifications that appear to the Secretary of State to be necessary to prevent the effect mentioned in subsection (11)(a), (b) or (c);

(c) must specify the time within which the modifications are to be made, which must not be less than 2 months from the date of the request.

33BDA

(1) Where the Secretary of State under section 33BD imposes on gas suppliers obligations to achieve a target within a specified period, the power to make orders under that section is exercisable by the Scottish Ministers for the purposes of those obligations imposed in relation to Scotland and not, except as provided by subsections (9) and (10), by the Secretary of State.

(2) An obligation is imposed in relation to Scotland to the extent that measures to meet that obligation may be carried out in Scotland (disregarding any power to elect under section 103A of the Utilities Act 2000).

(3) For the purposes of the exercise by the Scottish Ministers of the power to make an order under section 33BD, that section applies with the following modifications—

(a) for subsection (1) there is substituted a power by order to specify how gas suppliers may meet their obligations to achieve the home-heating cost reduction target through measures carried out in Scotland;

(b) subsection (3) is omitted;

(d) in subsection (2)(a) at the beginning of sub-paragraph (ii) there is inserted “where the Secretary of State has apportioned the overall home-heating cost reduction target under section 103A(3A) of the Utilities Act 2000, and”;

(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”;

(e) in section 33BC(11) as applied by subsection (4) “Citizens Advice” and “gas transporters” are omitted;

(f) in section 33BC(12) as applied by subsection (4) for the words from “shall not be made” to the end is substituted “ is subject to the affirmative procedure ”;

(g) in section 33BC(12A) as applied by subsection (4) for the words from “shall be subject to” to the end is substituted “ is subject to the negative procedure ”;

(h) for “Secretary of State” in each place (including any references in section 33BC that apply by virtue of subsection (4) other than in section 33BC(7D)(a)), is substituted “ Scottish Ministers ”.

(4) The power of the Scottish Ministers under section 33BD does not include power to make provision in relation to the subject-matter of sections 88 to 90 of the Energy Act 2008 (smart meters).

(5) Where an overall home-heating cost reduction target has been apportioned under section 103A(3A) of the Utilities Act 2000, the Scottish Ministers must—

(a) when making any order under section 33BD, comply with the duty in subsection (6), and

(b) if the Secretary of State amends any order under that section, make any provision they think necessary, in consequence of the amendment, to comply with that duty.

(6) The duty of the Scottish Ministers where subsection (5)(a) or (b) applies is to exercise their powers under section 33BD (subject to subsection (8)) in the way they think most likely to secure that the proportion of compliance costs that is represented by costs relating to Scotland is no greater than the proportion of the overall home-heating cost reduction target that is represented by the part of it apportioned to measures carried out in Scotland.

(7) In subsection (6)—

(a) “compliance costs” means the total costs to gas suppliers of complying with home-heating cost reduction obligations that, in relation to any period, are imposed by order under section 33BD, and

(b) “costs relating to Scotland” means the total costs to gas suppliers of complying with obligations that, in relation to the same period, are imposed in relation to Scotland.

(8) The Scottish Ministers may not make an order under section 33BD unless—

(a) they have consulted the Secretary of State about the proposed order, and

(b) the Secretary of State has agreed to the order being made.

(9) Subsection (1) does not prevent the Secretary of State from making provision under—

(a) section 33BD(3),

(b) section 33BC(3), (5)(a) (7)(a), (7C) or (7E) as applied by section 33BD(4), or

(c) section 33BD(2)(a) where an overall home-heating cost reduction target has not been apportioned under section 103A(3A) of the Utilities Act 2000.

(10) Subsection (1) does not prevent the Secretary of State from making any other provision under section 33BD or from varying or revoking an order made by the Scottish Ministers under that section—

(a) with the agreement of the Scottish Ministers, or

(b) without their agreement, if subsection (11) applies.

(11) This subsection applies if it appears to the Secretary of State, in the case of obligations imposed in relation to Scotland (the “Scottish obligations”), taking into account any provision made by the Scottish Ministers, that the Scottish obligations are, alone or in conjunction with obligations imposed or to be imposed in relation to England and Wales, likely to—

(a) cause detriment to the United Kingdom,

(b) adversely affect the ability of the United Kingdom to comply with an international agreement or arrangement in relation to climate change or energy efficiency, or

(c) result in costs incurred by suppliers that are not broadly equivalent in relation to England and Wales and in relation to Scotland,

and the Scottish Ministers have failed to comply with a request made to them by the Secretary of State to make modifications specified by the Secretary of State.

(12) In determining for the purposes of subsection (11), whether detriment is likely to be caused to the United Kingdom, considerations that the Secretary of State may take into account include the costs imposed on suppliers by virtue of obligations imposed or to be imposed by the Secretary of State under section 33BD or any provision made by the Scottish Ministers under that section.

(13) A request by the Secretary of State to the Scottish Ministers for the purposes of subsection (11)—

(a) must be in writing;

(b) must specify only modifications that appear to the Secretary of State to be necessary to prevent the effect mentioned in subsection (11)(a), (b) or (c);

(c) must specify the time within which the modifications are to be made, which must not be less than 2 months from the date of the request.

Application by Authority for order excluding activities.

British Gas Stock.

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Short title, commencement and extent.

4E

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Standards of performance in individual cases: gas transporters.

Modification references to Monopolies Commission.

Financial provisions.

Short title, commencement and extent.

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Gas transporters

Interpretation

7AA

(1) Subject to subsections (3) and (4), the Authority may grant a licence authorising a person to carry out planning and forecasting functions of the Independent System Operator and Planner (“a gas system planner licence”).

(2) Subject to subsection (4), the Secretary of State may grant a gas system planner licence.

(3) The first gas system planner licence may only be granted by the Secretary of State.

(4) A person may not be granted a gas system planner licence unless either of the following paragraphs applies to the person—

(a) the person—

(i) already holds an electricity system operator licence, or

(ii) is treated as holding such a licence by virtue of a direction under section 167 of the Energy Act 2023;

(b) the person is granted an electricity system operator licence, or is treated by virtue of a direction under section 167 of the Energy Act 2023 as having been granted such a licence, at the same time as the person is granted a gas system planner licence.

(5) In this section—

“electricity system operator licence” means a licence under section 6(1)(da) of the Electricity Act 1989;

“planning and forecasting functions of the Independent System Operator and Planner” has the meaning given by section 5(10A).

Application by Authority for order excluding activities.

Gas transporters

7AC

(1) The Authority may grant a licence (“a code manager licence”) authorising a person to perform the function of code manager in respect of a designated gas licence document.

(2) Where a designated gas licence document is also a designated electricity licence document, a person may not be granted a code manager licence in respect of the document unless the same person is at the same time granted a licence under section 6(1)(g) of the Electricity Act 1989.

(3) In this section—

“designated electricity licence document” has the same meaning as in section 4 of the Electricity Act 1989;

“designated gas licence document” has the same meaning as in section 5.

3A

Sections 163 to 165, 171 and 173 of the Energy Act 2023 (ISOP objectives, duties and related functions) are relevant provisions in relation to a person who holds a licence under section 7AA.

9B

(1) Section 194 (3) of the Energy Act 2023 is a relevant provision in relation to a responsible body for a central system.

(2) The reference in sub-paragraph (1) to a responsible body for a central system is a reference to a person for the time being specified in a notice under section 184 (1) of the Energy Act 2023 in relation to a designated central system (within the meaning of Part 6 of that Act).

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