Utilities Act 2000

Part I — New regulatory arrangements

Gas and Electricity Markets Authority

1

• (1) There shall be a body corporate to be known as the Gas and Electricity Markets Authority (in this Act referred to as “the Authority”) for the purpose of carrying out—

• (a) functions transferred to the Authority from the Director General of Gas Supply and the Director General of Electricity Supply; and

• (b) the other functions of the Authority under this Act.

• (2) The functions of the Authority are performed on behalf of the Crown.

• (3) The offices of Director General of Gas Supply and Director General of Electricity Supply are abolished.

• (4) Schedule 1 has effect with respect to the Authority.

Guidance on social and environmental matters in relation to gas.

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Gas transporters’ duty to make a connection.

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• (1) The functions of the Director General of Gas Supply and the Director General of Electricity Supply (“the Directors”) are transferred to the Authority.

• (2) Any enactment which—

• (a) relates to a function of either of the Directors; and

• (b) is in force immediately before the transfer by subsection (1) of that function,

shall have effect after the transfer, so far as necessary for the purposes of or in consequence of the transfer, as if references to the Director were references to the Authority.

• (3) The Secretary of State may make one or more schemes (“transfer schemes”) for the transfer of the property, rights and liabilities of the Directors to the Authority ....

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

• (5) On the day appointed by a transfer scheme, the property, rights and liabilities which are the subject of the scheme shall, by virtue of this subsection, be transferred in accordance with the provisions of the scheme.

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

• (7) Subsection (6) has effect in relation to property, rights or liabilities to which it applies in spite of any provision (of whatever nature) which would prevent or restrict the transfer of the property, rights or liabilities otherwise than by that subsection.

• (8) Schedule 3 has effect in relation to transfer schemes and transfers by any provision of this Act of functions, property, rights and liabilities to the Authority ....

Standards of performance in individual cases.

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• (1) The Authority ... shall, before each financial year, ... publish a document (the “forward work programme”) containing a general description of the projects, other than those comprising routine activities in the exercise of its functions, which it plans to undertake during the year.

• (2) That description must include the objectives of each project.

• (3) The forward work programme for any year shall also include an estimate of the overall expenditure which the Authority ... expects to incur during the year in the exercise of its functions.

• (4) Before publishing the forward work programme for any year, the Authority ... shall give notice—

• (a) containing a draft of the forward work programme, and

• (b) specifying the time within which representations or objections to the proposals contained in it may be made,

and shall consider any representations or objections which are duly made and not withdrawn.

• (5) The notice under subsection (4) must be published by the Authority ... in such manner as it considers appropriate for the purpose of bringing the matters contained in it to the attention of persons likely to be affected by them.

• (6) The Authority must send a copy of any notice given by it under subsection (4) to Citizens Advice and Consumer Scotland.

• (7) In this section—

• (a) references to functions do not include functions under Part 1 of the Energy Act 2023, and

• (b) references to projects do not include projects with regard to the exercise of such functions.

Licence enforcement.

5

• (1) The Authority shall, as soon as practicable after the end of each financial year, make to the Secretary of State a report (the “annual report” for that year) on—

• (a) its activities during that year, and

• (b) the activities of the Competition and Markets Authority during that year in respect of any references made by the Authority.

• (2) The annual report for each year shall include—

• (a) a general survey of developments in respect of matters falling within the scope of the Authority’s functions, including in particular developments in competition between persons engaged in, or in commercial activities connected with—

• (i) the shipping, transportation or supply of gas conveyed through pipes; ...

• (ii) the generation, transmission, distribution or supply of electricity; or

• (iii) the operation or maintenance of, or the supply of heating, cooling or hot water by means of, relevant heat networks (as defined in section 216 of the Energy Act 2023);

• (b) a report on the progress of the projects described in the forward work programme for that year;

• (c) a summary of final and provisional orders made and penalties imposed by the Authority during the year; ...

• (ca) a summary of final notices given by the Authority under the Electricity and Gas (Market Integrity and Transparency) (Enforcement etc.) Regulations 2013; and

• (d) a report on such other matters as the Secretary of State may from time to time require.

• (2A) The annual report for each year shall also include a report on—

• (a) the ways in which the Authority has carried out its duties under section 132(1) and (2) of the Energy Act 2013 in relation to the strategy and policy statement (so far as the statement's designation was in effect during the whole or any part of the year), and

• (b) the extent to which the Authority has done the things set out under section 4A in a forward work programme or other document as the things the Authority proposed to do during that year in implementing its strategy for furthering the delivery of the policy outcomes contained in the statement (see subsection (3)(b) of that section).

• (2B) The report mentioned in subsection (2A) must, in particular, include—

• (a) the Authority's assessment of how the carrying out of its functions during the year has contributed to the delivery of the policy outcomes contained in the strategy and policy statement, and

• (b) if the Authority has failed to do any of the things mentioned in subsection (2A)(b), an explanation for the failure and the actions the Authority proposes to take to remedy it.

• (2C) In subsections (2A) and (2B)—

• “ forward work programme ” has the meaning given by section 4(1);

• “ policy outcomes ” and “ strategy and policy statement ” have the same meaning as in Part 5 of the Energy Act 2013.

• (3) The annual report for each year shall set out any general directions given by the Secretary of State under section 34(3) of the 1986 Act or section 47(2) of the 1989 Act.

• (3A) The annual report for each year must also include an overview of—

• (a) developments relating to documents designated for the purposes of Part 6 of the Energy Act 2023 (governance of gas and electricity industry codes);

• (b) decisions made by the Authority during the year in relation to such documents, including details of any modifications made under section 192 of the Energy Act 2023.

• (4) The Secretary of State shall consult the Authority before exercising the power under subsection (2)(d) in relation to any matter.

• (5) The Secretary of State shall—

• (a) lay a copy of each annual report before each House of Parliament; ...

• (aa) send a copy of the report to the Scottish Ministers and the Welsh Ministers, and

• (b) arrange for the report to be published in such manner as he considers appropriate.

• (5A) The Scottish Ministers shall lay a copy of each annual report before the Scottish Parliament.

• (5B) The Welsh Ministers shall lay a copy of each annual report before the National Assembly for Wales.

• (6) The Authority may also prepare other reports with respect to any matter falling within the scope of its functions and may arrange for any such report to be published in such manner as it considers appropriate.

• (7) The Authority shall send a copy of each annual or other report published under this section to Citizens Advice and Consumer Scotland.

• (8) In making or preparing any report under this section the Authority shall have regard to the need for excluding, so far as that is practicable, any matter which relates to the affairs of a particular individual or body of persons (corporate or unincorporate), where publication of that matter would or might, in the opinion of the Authority, seriously and prejudicially affect the interests of that individual or body.

• (9) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• (10) Section 39 of the 1986 Act (annual and other reports of the Director General of Gas Supply) and section 50 of the 1989 Act (annual and other reports of the Director General of Electricity Supply) shall cease to have effect.

• (11) In this section—

• (a) references to functions of the Authority do not include functions under Part 1 of the Energy Act 2023;

• (b) references to activities of the Authority do not include activities in the exercise of such functions;

• (c) the reference in subsection (1) to “references made by the Authority” does not include references made by virtue of section 36(1) of the Energy Act 2023.

Restrictions on disclosure in respect of cross-border exchanges of information

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• (1) For section 35 of the 1986 Act (publication by Director of information and advice) there is substituted—

(35) (1) If it appears to the Authority that the publication of any advice and information would promote the interests of consumers in relation to gas conveyed through pipes, the Authority may publish that advice or information in such manner as it thinks fit. (2) In publishing advice or information under this section the Authority shall have regard to the need for excluding, so far as that is practicable, any matter which relates to the affairs of a particular individual or body of persons (corporate or unincorporate), where publication of that matter would or might, in the opinion of the Authority, seriously and prejudicially affect the interests of that individual or body. (3) Before deciding to publish under this section any advice or information relating to a particular individual or body of persons the Authority shall consult that individual or body. (4) In this section “consumers” includes both existing and future consumers.

• (2) For subsections (1) and (2) of section 48 of the 1989 Act (publication by Director of information and advice) there is substituted—

(1) If it appears to the Authority that the publication of any advice and information would promote the interests of consumers in relation to electricity conveyed by distribution systems, the Authority may publish that advice or information in such manner as it thinks fit. (2) In publishing advice or information under this section the Authority shall have regard to the need for excluding, so far as that is practicable, any matter which relates to the affairs of a particular individual or body of persons (corporate or unincorporate), where publication of that matter would or might, in the opinion of the Authority, seriously and prejudicially affect the interests of that individual or body. (2A) Before deciding to publish under this section any advice or information relating to a particular individual or body of persons the Authority shall consult that individual or body.

• (3) After subsection (3) of that section there is inserted—

(4) In this section “consumers” includes both existing and future consumers.

Co-operation between Authority and Council

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Payments by licence holders relating to new arrangements

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• (1) In this section “payment conditions” means—

• (a) in relation to a gas licence, conditions included in the licence by virtue of section 7B(4)(c) of the 1986 Act; or

• (b) in relation to an electricity licence, conditions included in the licence by virtue of section 7(1)(b) of the 1989 Act.

• (2) The payment conditions of a gas licence or an electricity licence may (without prejudice to the generality of the provisions mentioned in subsection (1)) require the payment by the licence holder of sums—

• (a) relating to any of the expenses mentioned in subsection (3) or (3A), or

• (b) relating to such amounts as the Secretary of State considers reasonable in respect of the provision, in or as regards Scotland, of consumer advocacy and advice by, or by agreement with, a public body or the holder of a public office, in relation to gas and electricity consumers

• (3) The expenses within this subsection are—

• (a) the expenses of the Gas and Electricity Consumer Council; and

• (b) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• (3A) The expenses within this subsection are—

• (a) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• (b) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• (ba) the appropriate proportion of the expenses of Citizens Advice (including expenses relating to taking on functions transferred from the National Consumer Council but not including expenses within paragraph (ca));

• (bb) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• (c) any expenses of ... the Secretary of State or the Gas and Electricity Consumer Council which relate to a transfer scheme made in respect of the Gas and Electricity Consumer Council under section 35(2)(a) or (7) of the Consumers, Estate Agents and Redress Act 2007;

• (ca) the appropriate proportion of the expenses of Citizens Advice which relate to a transfer scheme made in respect of the National Consumer Council under section 23 of the Public Bodies Act 2011;

• (cb) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• (d) the expenses of the Secretary of State which relate to the abolition of the Gas and Electricity Consumer Council;

• (da) the appropriate proportion of the expenses of the Secretary of State which relate to the abolition of the National Consumer Council and the transfer of functions to Citizens Advice and Citizens Advice Scotland;

• (db) the appropriate proportion of the expenses of the Secretary of State which relate to the transfer of functions and the conferring of functions on Citizens Advice and Citizens Advice Scotland by the Public Bodies (Abolition of the National Consumer Council and Transfer of the Office of Fair Trading’s Functions in relation to Estate Agents etc) Order 2014 (S.I. 2014/…);

• (dc) the appropriate proportion of the expenses of the Secretary of State which relate to a transfer scheme made in respect of the National Consumer Council under section 23 of the Public Bodies Act 2011;

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

• (f) the appropriate proportion of the expenses of Citizens Advice ... on, or in connection with, the support of any qualifying public consumer advice scheme.

• (3B) The “appropriate proportion” of any expenses means such proportion of the expenses as the Secretary of State considers is reasonable having regard to—

• (a) in the case of expenses within subsection (3A)(ba), ... (ca)... or (db), the functions exercisable by Citizens Advice or Citizens Advice Scotland, as the case may be, in relation to gas and electricity consumers, ...

• (aa) in the case of expenses within subsection (3A)(da) or (dc), the functions exercised by the National Consumer Council in relation to gas and electricity consumers, and

• (b) in the case of expenses within subsection (3A)(f), the functions under the qualifying consumer advice scheme which are exercisable in relation to gas and electricity consumers.

• (3C) A qualifying public consumer advice scheme is a scheme that is supported by Citizens Advice ... in a manner that the Competition and Markets Authority is prohibited from using by section 8A of the Enterprise Act 2002.

• (4) The Authority may, in accordance with this section, modify any payment conditions of a gas licence or an electricity licence where the Authority considers it necessary or expedient to do so in consequence of, or of preparations for—

• (a) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• (b) the abolition of the Gas and Electricity Consumer Council.

• (c) the abolition of the National Consumer Council, or

• (d) the conferring of functions which are exercisable in relation to gas and electricity consumers on Citizens Advice or Citizens Advice Scotland by the Public Bodies (Abolition of the National Consumer Council and Transfer of the Office of Fair Trading’s Functions in relation to Estate Agents etc) Order 2014 (S.I. 2014/...).

• (5) The Authority may, in accordance with this section, make such incidental or consequential modifications of—

• (a) the other conditions of a gas licence or an electricity licence, or

• (b) any code or agreement relevant to the conditions of such a licence,

as it considers necessary or expedient in consequence of, or of preparations for, an event mentioned in subsection (4)(a) or (b).

• (6) Before modifying the conditions of a licence or any code or agreement under subsection (4) or (5) the Authority shall consult the licence holder.

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