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Energy Act 2004

Type Public General Act

Publication 2004-07-22

Last updated 2025-09-18

State In force

Department Statute Law Database

Source legislation.gov.uk

articles Not indexed

Reform history JSON API

(1) This section applies where an energy administration order has been made in relation to a company.

(2) The Secretary of State may agree to indemnify persons in respect of one or both of the following—

(a) liabilities incurred in connection with the exercise and performance by the energy administrator of his powers and duties; and

(b) loss or damage sustained in that connection.

(3) The agreement may be made in whatever manner, and on whatever terms, the Secretary of State considers appropriate.

(3A) As soon as practicable after agreeing to indemnify persons under this section, the Secretary of State must lay a statement of the agreement before Parliament.

(4) If sums are paid by the Secretary of State in consequence of an indemnity agreed to under this section, the company must pay him—

(a) such amounts in or towards the repayment to him of those sums as he may direct; and

(b) interest, at such rates as he may direct, on amounts outstanding under this subsection.

(5) Payments to the Secretary of State under subsection (4) must be made at such times and in such manner as he may determine.

(6) Subsection (4) does not apply in the case of a sum paid by the Secretary of State for indemnifying a person in respect of a liability to the company in relation to which the energy administration order was made.

(6A) Where a sum has been paid out by the Secretary of State in consequence of an indemnity agreed to under this section, the Secretary of State must lay a statement relating to that sum before Parliament—

(a) as soon as practicable after the end of the financial year in which that sum is paid out; and

(b) (except where subsection (4) does not apply in the case of the sum) as soon as practicable after the end of each subsequent relevant financial year.

(6B) In relation to a sum paid out in consequence of an indemnity, a financial year is a relevant financial year for the purposes of subsection (6A) unless—

(a) before the beginning of that year, the whole of that sum has been repaid to the Secretary of State under subsection (4); and

(b) the company in question is not at any time during that year subject to liability to pay interest on amounts that became due under that subsection in respect of that sum.

(7) The consent of the Treasury is required—

(a) for the doing of anything by the Secretary of State under subsection (2);

(b) for the giving by him of any direction under subsection (4); and

(8) The power of the Secretary of State to agree to indemnify persons—

(a) is confined to a power to agree to indemnify persons in respect of liabilities, loss and damage incurred or sustained by them as relevant persons; but

(b) includes power to agree to indemnify persons (whether or not they are identified or identifiable at the time of the agreement) who subsequently become relevant persons.

(9) A person is a relevant person for the purposes of this section if he is—

(a) the energy administrator;

(b) an employee of the energy administrator;

(d) a member or employee of a firm of which the energy administrator is an employee;

(e) a member of a firm of which the energy administrator was an employee or member at a time when the order was in force;

(f) a body corporate which is the employer of the energy administrator;

(g) an officer, employee or member of such a body corporate.

(10) For the purposes of subsection (9)—

(a) the references to the energy administrator are to be construed, where two or more persons are appointed to act as the energy administrator, as references to any one or more of them; and

(b) the references to a firm of which a person was a member or employee at a particular time include references to a firm which holds itself out to be the successor of a firm of which he was a member or employee at that time.

(11) The Secretary of State must pay sums received by him by virtue of subsection (4) into the Consolidated Fund.

Guarantees where energy administration order is made

167

(1) This section applies where an energy administration order has been made in relation to a company.

(2) The Secretary of State may guarantee—

(a) the repayment of any sum borrowed by the company while the energy administration order is in force;

(b) the payment of interest on such a sum; and

(3) The Secretary of State may give a guarantee under this section in such manner, and on such terms, as he thinks fit.

(4) As soon as practicable after giving a guarantee under this section, the Secretary of State must lay a statement of the guarantee before Parliament.

(5) If sums are paid out by the Secretary of State under a guarantee given under this section, the company must pay him—

(a) such amounts in or towards the repayment to him of those sums as he may direct; and

(b) interest, at such rates as he may direct, on amounts outstanding under this subsection.

(6) Payments to the Secretary of State under subsection (5) must be made at such times, and in such manner, as he may from time to time direct.

(7) Where a sum has been paid out by the Secretary of State under a guarantee given under this section, he must lay a statement relating to that sum before Parliament—

(a) as soon as practicable after the end of the financial year in which that sum is paid out; and

(b) as soon as practicable after the end of each subsequent relevant financial year.

(8) In relation to a sum paid out under a guarantee, a financial year is a relevant financial year for the purposes of subsection (7) unless—

(a) before the beginning of that year, the whole of that sum has been repaid to the Secretary of State under subsection (5); and

(b) the company in question is not at any time during that year subject to liability to pay interest on amounts that became due under that subsection in respect of that sum.

(9) The consent of the Treasury is required—

(a) for the giving of a guarantee under this section; and

(b) for the giving by the Secretary of State of a direction under subsection (5) or (6).

(10) The Secretary of State must pay sums received by him by virtue of subsection (5) into the Consolidated Fund.

Licence modifications relating to energy administration

Modifications of particular or standard conditions

168

(1) Where the Secretary of State considers it appropriate to do so in connection with the provision made by this Chapter, he may make—

(a) modifications of the conditions of a gas or electricity licence held by a particular person;

(b) modifications of the standard conditions of such licences of any type.

(2) The power to make modifications under this section includes power to make incidental, consequential or transitional modifications.

(3) Before making a modification under this section, the Secretary of State must consult—

(a) the holder of any licence being modified; and

(b) such other persons as he considers appropriate.

(4) Subsection (3) may be satisfied by consultation that took place wholly or partly before the commencement of this section.

(5) The Secretary of State must publish every modification made by him under this section.

(6) The publication must be in such manner as the Secretary of State considers appropriate.

(7) A modification under subsection (1)(a) of part of a standard condition of a licence does not prevent any other part of the condition from continuing to be regarded as a standard condition for the purposes of Part 1 of the 1989 Act or Part 1 of the Gas Act 1986 (c. 44).

(8) Where the Secretary of State makes modifications under subsection (1)(b) of the standard conditions of licences of any type, GEMA must—

(a) make (as nearly as may be) the same modifications of those standard conditions for the purposes of their incorporation in licences of that type granted after that time; and

(b) publish the modifications in such manner as it considers appropriate.

(9) The Secretary of State’s powers under this section are exercisable only during the eighteen months beginning with the commencement of this section.

(10) In section 81(2) of the Utilities Act 2000 (c. 27) (standard conditions of licences under Part 1 of the Gas Act), for “such modifications of the conditions made under Part I of the 1986 Act” substitute “ any modifications made under Part 1 of the 1986 Act or under the Energy Act 2004 ”.

(11) In this section “gas or electricity licence” means a licence for the purposes of section 5 of the Gas Act 1986 (c. 44) or section 4 of the 1989 Act (prohibition on unlicensed activities).

Licence conditions to secure funding of energy administration

169

(1) The modifications that may be made under section 168 include, in particular, modifications imposing conditions requiring the holder of the licence—

(a) so to modify the charges imposed by him for anything done by him in the carrying on of the licensed activities as to raise such amounts as may be determined by or under the conditions; and

(b) to pay the amounts so raised to such persons as may be so determined for the purpose of—

(i) their applying those amounts in making good any shortfall in the property available for meeting the expenses of an energy administration; or

(ii) enabling those persons to secure that those amounts are so applied.

(2) Those modifications may include modifications imposing on the licence holder an obligation to apply amounts paid to him in pursuance of conditions falling within subsection (1)(a) or (b) in making good any such shortfall.

(3) For the purposes of this section—

(a) there is a shortfall in the property available for meeting the costs of an energy administration if, in a case where a company is or has been subject to an energy administration order, the property available (apart from conditions falling within subsection (1) or (2)) for meeting relevant debts is insufficient for meeting them; and

(b) amounts are applied in making good that shortfall if they are paid in or towards discharging so much of a relevant debt as cannot be met out of the property otherwise available for meeting relevant debts.

(4) In this section “relevant debt”, in relation to a case in which a company is or has been subject to an energy administration order, means an obligation—

(a) to make payments in respect of the expenses or remuneration of any person as the energy administrator of that company;

(b) to make a payment in discharge of a debt or liability of that company arising out of a contract entered into at a time when the order was in force by the person who at that time was the energy administrator of that company;

(d) to repay a loan made to the company under that section, or to pay interest on such a loan;

(e) to make a payment under section 166(4); or

(f) to make a payment under section 167(5).

Supplemental provision of Chapter 3 of Part 3

Modification of Chapter 3 of Part 3 under Enterprise Act 2002

170

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

(2) Those sections are—

(a) sections 248 and 277 (amendments consequential on that Act); and

(b) section 254 (power to apply insolvency law to foreign companies).

Interpretation of Chapter 3 of Part 3

171

(1) In this Chapter—

“the 1986 Act” means the Insolvency Act 1986 (c. 45);

“business”, “member”, “property” and “security” have the same meanings as in the 1986 Act;

“company” means—a company registered under the Companies Act 2006, oran unregistered company;

“court”, in relation to a company, means the court—having jurisdiction to wind up the company, orthat would have such jurisdiction apart from section 221(2) or 441(2) of the Insolvency Act 1986 (exclusion of winding up jurisdiction in case of companies having principal place of business in, or incorporated in, Northern Ireland);

“energy administration order” has the meaning given by section 154(1);

“energy administration rules” means rules made under section 411 of the 1986 Act by virtue of section 159(3) of this Act;

“energy administrator” has the meaning given by section 154(2) and is to be construed in accordance with subsection (2) of this section;

“non-GB company” means a company incorporated outside Great Britain;

“objective of the energy administration” is to be construed in accordance with section 155;

“protected energy company” has the meaning given by section 154(5);

“relevant licence” has the meaning given by section 154(5);

“unregistered company” means a company that is not registered under the Companies Act 2006.

(2) In this Chapter references to the energy administrator of a company—

(a) include references to a person appointed under paragraph 91 or 103 of Schedule B1 to the 1986 Act, as applied by Part 1 of Schedule 20 to this Act, to be the energy administrator of that company; and

(b) where two or more persons are appointed to be the energy administrator of that company, are to be construed in accordance with the provision made under section 158(5).

(3) References in this Chapter to a person qualified to act as an insolvency practitioner in relation to a company are to be construed in accordance with Part 13 of the 1986 Act (insolvency practitioners and their qualifications); but as if references in that Part to a company included references to a Northern Ireland company.

(4) For the purposes of this Chapter an application made to the court is outstanding if it—

(a) has not yet been granted or dismissed; and

(b) has not been withdrawn.

(5) For the purposes of subsection (4) an application is not to be taken as having been dismissed if an appeal against the dismissal of the application, or a subsequent appeal, is pending.

(6) An appeal shall be treated as pending for the purposes of subsection (5) if—

(a) such an appeal has been brought and has been neither determined nor withdrawn;

(b) an application for permission to appeal has been made but has not been determined or withdrawn; or

(7) References in this Chapter to Schedule B1 to the 1986 Act, or to a provision of that Schedule (except the references in subsection (2) of this section), are references to that Schedule or that provision without the modifications made by Part 1 of Schedule 20 to this Act.

(8) In this section “Northern Ireland company” means a company registered under the Companies Act 2006 in Northern Ireland.

Chapter 4 — Further provisions about regulation

Security of supply

Annual report on security of energy supplies

172

(1) The Secretary of State must, in 2005 and in every subsequent calendar year—

(a) publish a report dealing, as regards both the short term and the long term, with the availability of electricity and gas for meeting the reasonable demands of consumers in Great Britain; and

(b) lay that report before Parliament.

(2) The report must include, in particular, overall assessments, as regards both the short term and the long term, of each of the following—

(a) generating capacity in Great Britain and its offshore waters so far as it will be utilised for generating electricity for introduction into transmission systems in Great Britain;

(b) the availability of capacity in those systems and in distribution systems in Great Britain for transmitting and distributing electricity for supply to consumers in Great Britain;

(c) the availability of capacity in infrastructure in Great Britain for use in connection with the introduction of gas into licensed pipe-line systems in Great Britain; and

(d) the availability of capacity in those systems for conveying gas to consumers in Great Britain.

(2A) In 2012 and in every subsequent calendar year the report must also include, in particular, as regards each of the assessment periods, an assessment by the Secretary of State of what electricity supply capacity is required.

(2B) For the purposes of subsection (2A) the electricity supply capacity required is the capacity required for the purpose of meeting the demands of consumers for the supply of electricity in Great Britain, including spare capacity to allow for unexpected demands or unexpected loss of capacity.

(2C) The assessment periods, in relation to a report under subsection (1), are—

(a) each of the four calendar years immediately following the year of the report; or

(b) any other periods that the Secretary of State specifies by order.

(2D) An assessment by virtue of subsection (2A) must take into account, in particular—

(a) the generation of electricity;

(b) the operation of electricity interconnectors;

(d) the extent to which the available capacity of a generating station is likely to be lower than its maximum possible capacity due to routine maintenance, weather conditions or any other expected limitation on its operation;

(e) demand side response.

(3) The report , other than the assessment by virtue of subsection (2A), must be prepared jointly by the Secretary of State and GEMA.

(3A) An order under this section is subject to the negative resolution procedure.

(4) In this section—

“consumers” includes both existing and future consumers;

“demand side response” means the cessation of, or a reduction in, the provision of electricity to a person at times of high demand, by agreement with the person;

“distributing”, “distribution system”, “electricity interconnector”, “generating station”, “generation”, “supply,” “transmission system” and “transmitting” have the same meanings as in Part 1 of the 1989 Act;

“gas” and “gas transporter” have the same meanings as in Part 1 of the Gas Act 1986 (c. 44);

“infrastructure” includes pipe-line systems, terminals and other facilities but does not include licensed pipe-line systems;

“licensed pipe-line system” means a pipe-line system that is operated by a gas transporter for the conveyance of gas to any premises or another pipe-line system as authorised by his licence under section 7 of that Act;

“offshore waters” means, in relation to Great Britain—so much of the territorial sea of the United Kingdom as is adjacent to Great Britain; andwaters in a Renewable Energy Zone (within the meaning of Chapter 2 of Part 2 of this Act).

Appeals from GEMA decisions

Appeals to the Competition Commission

173

(1) An appeal ... from a decision by GEMA to which this section applies shall lie to the Competition and Markets Authority (in this Chapter referred to as “the CMA”).

(2) This section applies to a decision by GEMA if—

(a) it is a decision relating to a document by reference to which provision is made by a condition of a gas or electricity licence;

(b) that document is designated for the purposes of this section by an order made by the Secretary of State;

(c) the decision consists in the giving or refusal of a consent by virtue of which the document has effect, or would have had effect, for the purposes of the licence with modifications or as reissued; and

(d) the decision is not of a description of decisions for the time being excluded from the right of appeal under this section by an order made by the Secretary of State.

(2A) This section also applies to a decision by GEMA to give a direction under section 36C of the Gas Act 1986 (power to direct a modification of the Uniform Network Code).

(2B) But subsection (2A) does not have effect in relation to such a decision if it falls within a description of decisions for the time being excluded from the right of appeal under this section by an order made by the Secretary of State.

(2C) This section also applies to a decision by GEMA to modify a designated document (within the meaning of Part 6 of the Energy Act 2023) under section 192 of that Act.

(3) An appeal against a decision may be brought under this section only by—

(a) a person whose interests are materially affected by it; or

(b) a body or association whose functions are or include representing persons in respect of interests of theirs that are so affected.

(4) The permission of the CMA is required for the bringing of an appeal under this section.

(5) The CMA may refuse permission only on one of the following grounds—

(a) that the appeal is brought for reasons that are trivial or vexatious;

(b) that the appeal has no reasonable prospect of success.

(6) Before making an order under this section, the Secretary of State must consult—

(a) GEMA; and

(b) such other persons as he considers appropriate.

(7) An order excluding decisions from the right of appeal under this section may provide—

(a) for the exclusion to apply only in such cases as may be determined in accordance with the order; and

(b) for a determination in accordance with the order to be made by such persons, in accordance with such procedures, and by reference to such matters and the opinions of such persons (including GEMA), as may be provided for in the order.

(8) An order made by the Secretary of State under this section is subject to the negative resolution procedure.

(9) In this section—

“consent” includes an approval or direction;

“gas or electricity licence” means a licence for the purposes of section 5 of the Gas Act 1986 (c. 44) or section 4 of the 1989 Act (prohibition on unlicensed activities).

Procedure on appeals

174

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

(2) ... Schedule 22 (procedure on appeals) has effect.

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

Determination of appeals

175

(1) This section applies to every appeal brought under section 173 of this Act.

(2) In determining the appeal the CMA must have regard, to the same extent as is required of GEMA, to the matters to which GEMA must have regard—

(a) in the carrying out of its principal objectives under section 4AA of the Gas Act 1986 (c. 44) and section 3A of the 1989 Act (principal objectives and general duties);

(b) in the performance of its duties under those sections; and

(c) in the performance of its duties under sections 4AB and 4A of that Act of 1986 and sections 3B and 3C of the 1989 Act (environmental and health and safety considerations).

(3) In determining the appeal the CMA—

(a) may have regard to any matter to which GEMA was not able to have regard in the case of the decision appealed against; but

(b) must not, in the exercise of that power, have regard to any matter to which GEMA would not have been entitled to have regard in that case had it had the opportunity of doing so.

(4) The CMA may allow the appeal only if it is satisfied that the decision appealed against was wrong on one or more of the following grounds—

(a) that GEMA failed properly to have regard to the matters mentioned in subsection (2);

(b) that GEMA failed properly to have regard to —

(i) the purposes for which the relevant condition has effect (in the case of an appeal by virtue of section 173(2)), or

(ii) the purposes of the power to give a direction under section 36C of the Gas Act 1986 or the purposes of Standard Special Condition A11 of licences granted under section 7 of that Act (in the case of an appeal by virtue of section 173(2A));

(d) that the decision was based, wholly or partly, on an error of fact;

(e) that the decision was wrong in law.

(5) Where the CMA does not allow the appeal, it must confirm the decision appealed against.

(6) Where it allows the appeal, it must do one or more of the following—

(a) quash the decision appealed against;

(b) remit the matter to GEMA for reconsideration and determination in accordance with the directions given by the CMA;

(c) where it quashes the refusal of a consent, give directions to GEMA, and to such other persons as it considers appropriate, for securing that the relevant condition has effect as if the consent had been given.

(7) A person shall not be directed under subsection (6) to do anything that he would not have power to do apart from the direction.

(8) A person to whom a direction is given under subsection (6) must comply with it; and such a direction given to a person other than GEMA shall be enforceable as if it were an order of the High Court or (in Scotland) of the Court of Session.

(9) The decision of the CMA on the appeal—

(a) must be contained in an order made by the CMA;

(b) must set out the reasons for the decision;

(d) must be notified by the CMA to the persons who (within the meaning of Schedule 22) were parties to the appeal; and

(e) must be published by the CMA in such manner as it considers appropriate for bringing it to the attention of other persons likely to be affected by it.

(10) The CMA may exclude from what it publishes under subsection (9)(e) any information which it is satisfied is—

(a) commercial information the disclosure of which would, or might, significantly harm the legitimate business interests of an undertaking to which it relates;

(b) information relating to the private affairs of an individual the disclosure of which would, or might, in its opinion, significantly harm his interests.

(11) In this section—

“consent” includes an approval or direction; and

“the relevant condition”, in relation to a decision, means the licence condition the provisions of which have effect by reference to the document to which the decision relates.

Specialist members of Competition Commission

176

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Funding of appeals and references

Modifications of standard conditions for funding appeals and references

177

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Best practice

Duty to have regard to best regulatory practice

178

In each of section 4AA of the Gas Act 1986 (c. 44) and section 3A of the 1989 Act (principal objective and general duties), after subsection (5) insert—

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

Meaning of electricity supply and high voltage lines

Meaning of electricity supply

179

(1) For the definition of “supply” in section 4(4) of the 1989 Act, substitute—

“supply”, in relation to electricity, means its supply to premises in cases where— (a) it is conveyed to the premises wholly or partly by means of a distribution system, or (b) (without being so conveyed) it is supplied to the premises from a substation to which it has been conveyed by means of a transmission system, but does not include its supply to premises occupied by a licence holder for the purpose of carrying on activities which he is authorised by his licence to carry on;

(2) In each of the provisions specified in subsection (3) (which all refer to electricity conveyed by distribution systems), after “distribution systems” insert “ or transmission systems ”.

(3) Those provisions are—

(a) section 3A(1), (5)(a) and (7) of the 1989 Act (principal objectives and general duties applying to electricity regulation);

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

(d) section 4AA(4)(a) of the Gas Act 1986 (principal objectives and general duties applying to gas regulation); and

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

(4) An order under section 198 for bringing into force provisions of this section may contain any such transitional provision in connection with bringing those provisions into force as the Secretary of State thinks appropriate.

(5) The transitional provision that may be included in an order under subsection (4) includes provision which has effect by reference to determinations made in accordance with that provision by a person specified in the order.

Meaning of “high voltage line”

180

(1) In subsection (1) of section 64 of the 1989 Act (interpretation of Part 1), for the definitions of “high voltage line” and “low voltage line” substitute—

“high voltage line” means an electric line which— (a) if it is in Scotland or is a relevant offshore line (as defined in subsection (1A)), is of a nominal voltage of 132 kilovolts or more; and (b) in any other case, is of a nominal voltage of more than 132 kilovolts, and “low voltage line” shall be construed accordingly;

(2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Metering

Prepayment meters

181

(1) In Schedule 2B to the Gas Act 1986 (c. 44) (which sets out the gas code), for paragraph 6A substitute—

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

(2) In paragraph 12 of Schedule 7 to the 1989 Act (use of pre-payment meters), for sub-paragraph (2) substitute—

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

Inquiries under ss. 36 and 37 of the 1989 Act

Additional inspectors

182

(1) In Schedule 8 to the 1989 Act (procedure for consents under sections 36 and 37 relating to the installation of generating stations and electric lines), after paragraph 5 insert—

(5A) (1) This paragraph applies in the case of— (a) a public inquiry in England and Wales by virtue of paragraph 2(2) or 3(2); or (b) a public inquiry in England and Wales which is a combination under section 62 of this Act into one inquiry— (i) of two or more such inquiries; or (ii) of one or more such inquiries and one or more other inquiries. (2) At any time after appointing a person to hold the inquiry (“the lead inspector”), the Secretary of State may direct him— (a) to consider such matters relating to the conduct of the inquiry as are specified in the direction; and (b) to make recommendations to the Secretary of State about those matters. (3) After considering the recommendations of the lead inspector, the Secretary of State may— (a) appoint for the purposes of the inquiry such number of additional inspectors as he thinks appropriate; and (b) direct that each additional inspector must consider such of the matters to which the inquiry relates as are allocated to him by the lead inspector. (4) An additional inspector must— (a) comply with every direction as to procedural matters given to him by the lead inspector; and (b) report to the lead inspector on every matter allocated to him. (5) It is to be for the lead inspector to report to the Secretary of State on the consideration of both— (a) the matters which he considered himself; and (b) the matters the consideration of which was allocated to additional inspectors. (6) The power of the Secretary of State to give directions to the lead inspector may be exercised on one or more different occasions after the appointment of the lead inspector. (7) Accordingly— (a) the recommendations that may be made by the lead inspector following such a direction include, in particular, a recommendation for varying the number of additional inspectors; and (b) the power of the Secretary of State to appoint an additional inspector includes power to revoke such an appointment. (8) A direction by any person under this paragraph may be varied or revoked by a subsequent direction by that person.

(2) This section does not extend to Scotland.

Confidential information

Exclusion of confidential information from registers

183

(1) In section 36 of the Gas Act 1986 (c. 44) (register to be kept by GEMA), after subsection (2) insert—

(2A) The Authority may enter the provisions of anything in the register in a manner that excludes, so far as practicable, so much of the details of those provisions as it considers it appropriate to exclude for the purpose of maintaining the confidentiality of— (a) matters relating to the affairs of an individual the publication of which would or might, in its opinion, seriously and prejudicially affect the interests of that individual; and (b) matters relating specifically to the affairs of a particular body of persons the publication of which would or might, in the Authority’s opinion, seriously and prejudicially affect the interests of that body.

(2) In subsection (2) of that section, after “Subject to” insert “ subsection (2A) and to ”.

(3) For section 49(3) of 1989 Act (matters needing to be excluded so far as practicable from register to be kept by GEMA) substitute—

(3) The Authority may enter the provisions of anything in the register in a manner that excludes, so far as practicable, so much of the details of those provisions as it considers it appropriate to exclude for the purpose of maintaining the confidentiality of— (a) matters relating to the affairs of an individual the publication of which would or might, in its opinion, seriously and prejudicially affect the interests of that individual; and (b) matters relating specifically to the affairs of a particular body of persons the publication of which would or might, in the Authority’s opinion, seriously and prejudicially affect the interests of that body.

Areas with high distribution or transmission costs

Assistance for areas with high distribution costs

184

(1) If it appears to the Secretary of State—

(a) that the costs of distributing electricity within a particular area of Great Britain are significantly higher (when calculated on a per customer basis) than in other areas of Great Britain, and

(b) that within that area there are at least 100,000 premises that are connected to the same distribution system,

he may make an order under this section.

(2) An order under this section is one that establishes a scheme which—

(a) requires authorised transmitters to make a payment each year to relevant distributors distributing electricity in that area of Great Britain of such amount as may be determined in accordance with provision contained in the scheme;

(b) requires the charges imposed by the authorised transmitters on authorised suppliers to be adjusted in accordance with the scheme for the purpose of enabling the transmitters to make that payment; and

(c) requires relevant distributors in receipt of a payment under the order to secure, in accordance with the order, that the benefit of the payment is passed to the authorised suppliers supplying electricity in the area of Great Britain in question.

(3) An order under this section establishing a scheme in relation to the distribution of electricity within a particular area must specify the area.

(4) For the purpose of facilitating the implementation of a scheme for which an order under this section provides, such an order may make such modifications as the Secretary of State considers appropriate of the conditions of the licences of authorised suppliers, of authorised transmitters and of authorised distributors.

(5) For the purpose of carrying out the functions conferred on him by or under this section the Secretary of State may require—

(a) an authorised supplier,

(b) an authorised distributor, or

to supply him, in a specified form and within a specified time, with information of a specified description.

(6) No person may be required under this section to supply information he could not be compelled to give in evidence in civil proceedings in the High Court or the Court of Session.

(7) Before making an order under this section, the Secretary of State must consult such persons as he considers appropriate.

(8) Subsection (7) may be satisfied by consultation that took place wholly or partly before the commencement of this section.

(9) An order under this section is subject to the negative resolution procedure.

(10) Where a scheme established under this section in relation to the distribution of electricity within a particular area is in force, no scheme shall be established under this section in relation to the distribution of electricity outside that area.

(11) Where a scheme is established under this section, it shall be the duty of the Secretary of State to carry out a review of that scheme—

(a) three years after its establishment; and

(b) thereafter at three yearly intervals.

(12) Part 1 of the 1989 Act shall have effect as if every requirement or other duty imposed on a licence holder under this section were a relevant requirement within the meaning of that Part (see section 25(8) of that Act).

(13) In this section—

“authorised distributor” and “authorised supplier” have the same meanings as in Part 1 of the 1989 Act;

“authorised transmitter” means a person authorised by a licence under section 6(1)(da) (an electricity system operator licence) of that Act;

“distributing”, “distribution” and “distribution system” have the same meanings as in Part 1 of that Act;

“licence” means a licence for the purposes of section 4 of that Act;

“licence holder” has the same meaning as in Part 1 of that Act;

“premises” has the same meaning as in Part 1 of that Act;

“relevant distributor” means an authorised distributor who distributes electricity by means of a distribution system to which at least 100,000 premises are connected.

Adjustment of transmission charges

185

(1) The Secretary of State may make an order under this section if it appears to him—

(a) that a particular area in Great Britain is suitable as a location for the generation of electricity from renewable sources;

(b) that, as a result, that area represents an area of high potential for the development of the generation of electricity from such sources; and

(c) that that development is likely to be deterred, or otherwise hindered in a material respect, by the level of charges that would (apart from the order) be imposed by authorised transmitters on persons generating electricity in that area from renewable sources.

(2) An order under this section is one that establishes a scheme which—

(a) limits the amounts of charges that authorised transmitters may impose on persons so generating electricity in that area to amounts determined in accordance with provision contained in the scheme; and

(b) requires the charges imposed by the authorised transmitters on authorised suppliers to be adjusted in accordance with the scheme for the purpose of making good shortfalls resulting from that limitation.

(3) An order under this section establishing a scheme in relation to the generation of electricity from renewable sources in a particular area must specify the area.

(3A) If subsection (1) is satisfied in the case of two or more separate areas in Great Britain, an order under this section may relate to both, or all, of those areas.

(3B) This section has effect in relation to an order which, by virtue of subsection (3A), relates to two or more areas as if references in subsections (2), (3) and (10) to the area to which the scheme established by the order relates (however expressed) were references to the combined area.

(4) For the purpose of facilitating the implementation of a scheme an order under this section may make such modifications as the Secretary of State considers appropriate of the conditions of the licences of authorised transmitters and of authorised suppliers.

(5) For the purpose of carrying out the functions conferred on him by or under this section the Secretary of State may require—

(a) an authorised supplier,

(b) an authorised distributor, or

to supply him, in a specified form and within a specified time, with information of a specified description.

(6) No person may be required under subsection (5) to supply information he could not be compelled to give in evidence in civil proceedings in the High Court or the Court of Session.

(7) Before making an order under this section the Secretary of State must—

(a) publish a draft of any scheme proposed to be established by the order;

(b) publish an assessment of the costs likely to be incurred by different persons in consequence of the order; and

(8) An assessment published under subsection (7)(b) must set out, in particular, the Secretary of State’s assessment of the likely effect of the order on charges for electricity in Great Britain.

(9) Subsection (7) may be satisfied by publications and consultation taking place wholly or partly before the commencement of this section.

(10) Where a scheme in relation to the generation of electricity from renewable sources within a particular area is in force, no scheme shall be established in relation to the generation of electricity from renewable sources outside that area.

(11) A scheme shall not be applied in relation to a time later than 4 October 2034.

(12) A scheme—

(a) shall not be applied for a period of more than five years; but

(b) subject to subsection (11), may be renewed at any time by a further order under this section for a period of no more than five years from the coming into force of the further order.

(13) Part 1 of the 1989 Act shall have effect as if every requirement or other duty imposed on a licence holder under this section were a relevant requirement within the meaning of that Part (see section 25(8) of that Act).

(14) In this section—

“authorised distributor” and “authorised supplier” have the same meanings as in Part 1 of the 1989 Act;

“authorised transmitter” means a person authorised by a licence under section 6(1)(b) of that Act to participate in the transmission of electricity;

“licence” means a licence for the purposes of section 4 of that Act;

“licence holder” has the same meaning as in Part 1 of that Act;

“renewable sources” means sources of energy in relation to which the following condition is satisfied, namely, that the production of renewables obligation certificates (within the meaning of section 32B of that Act) in respect of electricity generated from those sources is capable of satisfying a renewables obligation imposed by a renewables obligation order (within the meaning of section 32 of that Act);

“scheme” means a scheme established by an order under this section.

(15) The power to make an order containing provision authorised by this section is subject to the affirmative resolution procedure.

Restrictions on disclosure of information

186

In section 105 of the Utilities Act 2000 (c. 27) (general restrictions on disclosure of information)—

(a) in subsection (1)(a) for “or Part I of the 1989 Act” substitute “ , Part 1 of the 1989 Act or section 184(5) or 185(5) of the Energy Act 2004 ”; and

(b) in subsection (3)(a) after “1989 Act” insert “ , section 184 or 185 of the Energy Act 2004 ”.

Payments into Scottish Consolidated Fund

Payments of sums raised by fossil fuel levy

187

(1) If the Scottish Ministers so direct, the person prescribed under section 33(1)(b) of the 1989 Act (collection of fossil fuel levy) must pay an amount into the Scottish Consolidated Fund out of money that has been paid under section 33(5A) of that Act.

(2) The Scottish Ministers shall, in making budget proposals to the Scottish Parliament, include provision that the required amount for the financial year to which the proposals relate be used for the purpose of promoting the use of energy from renewable sources.

(3) In subsection (2)—

“budget proposals” means proposals made, in relation to each Bill for a Budget Act, for the use of resources;

“the required amount” means an amount of money equal to the total of the amounts paid into the Scottish Consolidated Fund under subsection (1) in the financial year in question; and

“renewable sources” means sources of energy other than fossil fuel or nuclear fuel.

(4) In subsection (3), “fossil fuel” means coal, substances produced directly or indirectly from coal, lignite, natural gas, crude liquid petroleum, or petroleum products (and “natural gas” and “petroleum products” have the same meanings as in the Energy Act 1976 (c. 76)).

(5) The Scottish Ministers' duty under subsection (2) is without prejudice to any power or duty of theirs apart from this section to spend money for the purpose mentioned in that subsection.

(6) In this section references to section 33 of the 1989 Act are references to that section as it has effect in Scotland.

Part 4 — Miscellaneous and Supplemental

Imposition of charges

Power to impose charges to fund energy functions

188

(1) The Secretary of State may by regulations make provision requiring the payment to him of charges in respect of any of the following—

(a) services or facilities provided or made available by him in the carrying out of his relevant energy functions;

(b) the consideration or supervision by him, for purposes connected with the carrying out of any of those functions, of any matter;

(d) the doing of anything else which is done by him—

(i) in the carrying out of any of those functions; or

(ii) for purposes which are incidental to, or otherwise connected with, the carrying out of any of those functions.

(2) The matters in respect of which charges may be imposed under this section include—

(a) the performance of a duty imposed on the Secretary of State; and

(b) things done in relation to, or to activities carried on in, the territorial sea adjacent to the United Kingdom or an area designated under section 1(7) of the Continental Shelf Act 1964 (c. 29).

(3) The persons who may be made liable for charges imposed by regulations under this section are—

(a) any of the persons to whom, or on whose application, the service or facility in question is provided or made available;

(b) any of the persons on whose application the matter in question is considered, or to whom that matter relates;

(d) any of the persons to whom, or on whose application, the licence in question is issued;

(e) any of the persons on whose application the other thing is done.

(4) In exercising his powers under this section to fix the amount of the charge to be paid by a person of a particular description, the Secretary of State may fix any amount that appears to him to be appropriate having regard to the costs that the Secretary of State is likely to incur in the carrying out—

(a) in relation to persons of that description, or

(b) in a manner that benefits persons of that description,

of the relevant energy functions in respect of which the charge is imposed.

(5) The provision that may be made by regulations under this section includes—

(a) provision specifying the times at which charges imposed under such regulations become due;

(b) provision specifying the manner in which they are to be paid; and

(6) Regulations under this section are subject to the negative resolution procedure.

(7) The references in this section to the Secretary of State’s relevant energy functions are references to the powers and duties of the Secretary of State by or under any of the following—

(a) the Pipe-lines Act 1962 (c. 58);

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

(d) so much of Part 2 of the Food and Environment Protection Act 1985 (c. 48) as has effect in connection with anything specified in subsection (8);

(e) the Gas Act 1986 (c. 44);

(f) the 1989 Act;

(g) the Gas Act 1995 (c. 45);

(h) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(i) so much of the Pollution Prevention and Control Act 1999 (c. 24) as has effect in connection with anything specified in subsection (8);

(j) Chapters 2 and 3 of Part 2 of this Act;

(k) Chapters 2 to 4 of Part 3 of this Act;

(l) so much of any EU instrument as has effect in connection with anything specified in subsection (8).

(m) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(n) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(8) The matters mentioned in subsection (7) are—

(a) the carrying out of exploration for petroleum;

(b) the winning or production of petroleum;

(d) the conveyance, supply, storage or processing of gas;

(da) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(db) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(e) pipelines for the conveyance of petroleum that are situated in Great Britain;

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

(g) Renewable Energy Zones and renewable energy installations;

(h) the protection of the environment from activities carried on in connection with anything mentioned in the preceding paragraphs.

(9) In this section—

“application” includes a requirement, and cognate expressions are to be construed accordingly;

“gas” has the same meaning as in the Gas Act 1986 (c. 44);

“issue”, in relation to a licence, includes grant and serve, and also refuse, modify, revoke and renew, and cognate expressions are to be construed accordingly;

“licence” includes an authorisation, consent, approval, exemption, certificate or notice;

“offshore installation” has the same meaning as in Part 4 of the Petroleum Act 1998 (c. 17);

“petroleum” has the same meaning as in Part 1 of that Act;

“pipeline” means a pipeline within the meaning of Part 3 of that Act or a pipe-line within the meaning of the Pipe-lines Act 1962 (c. 58);

“Renewable Energy Zone” and “renewable energy installation” have the same meanings as in Chapter 2 of Part 2 of this Act;

“supervision”, in relation to activities, includes the carrying out of an inspection of any premises or thing used or apparently used in connection with those activities.

(10) The power to make regulations under this section—

(a) is in addition to every other power to impose charges in connection with the carrying out by the Secretary of State of his relevant energy functions; and

(b) is to be disregarded in construing those other powers.

(11) The Secretary of State must pay sums received by him by virtue of regulations under this section into the Consolidated Fund.

(12) This section applies in relation to the Scottish Ministers as it applies in relation to the Secretary of State, and in its application to the Scottish Ministers it is to be read as if for subsections (6) and (7) there were substituted—

(6) Regulations under this section must be made by statutory instrument and are subject to annulment in pursuance of a resolution of the Scottish Parliament. (7) Section 192(4) applies in relation to the power of the Scottish Ministers to make regulations under subsection (6) as it applies in relation to an order or regulations made by the Secretary of State or the Treasury. (7A) The references in this section to relevant energy functions are references to the functions of the Scottish Ministers under— (za) Part 1 of the Petroleum Act 1998, (a) Chapter 3 of Part 1 of the Energy Act 2008, or (b) so much of any EU instrument as has effect in connection with— (i) any activity for which a licence under Chapter 3 of Part 1 of the Energy Act 2008 is required, or (ii) any activity mentioned in subsection (8)(h) to the extent that the activity is carried on in connection with an activity for which a licence under Chapter 3 of Part 1 of the Energy Act 2008 is required.

and as if the reference in subsection (11) to the Consolidated Fund were a reference to the Scottish Consolidated Fund.

(13) This section applies in relation to the Welsh Ministers as it applies in relation to the Secretary of State, and in its application to the Welsh Ministers it is to be read as if—

(a) for subsections (6) and (7) there were substituted—

(6) Regulations under this section must be made by statutory instrument and are subject to annulment in pursuance of a resolution of the National Assembly for Wales. (7) Section 192(4) applies in relation to the power of the Welsh Ministers to make regulations under subsection (6) as it applies in relation to an order or regulations made by the Secretary of State or the Treasury. (7A) The references in this section to relevant energy functions are references to the functions of the Welsh Ministers under Part 1 of the Petroleum Act 1998.

, and

(b) the reference in subsection (11) to the Consolidated Fund were a reference to the Welsh Consolidated Fund.

International agreements relating to pipelines and offshore installations

Power to modify Petroleum Act 1998

189

(1) Her Majesty may by Order in Council make any modifications of the Petroleum Act 1998 (c. 17) that Her Majesty considers appropriate for the purpose of securing that effect is given to an international agreement to which this section applies.

(2) This section applies to an international agreement (whether entered into before or after the passing of this Act) which relates in whole or in part to the construction, operation, use, decommissioning or abandonment of a pipeline or offshore installation.

(3) The power under this section to modify the Petroleum Act 1998 includes—

(a) power to provide for provision made by or under that Act to have effect (with or without modifications) in relation to a foreign area;

(b) power to provide for provisions of that Act having effect (with or without modifications) in relation to a foreign area, so far as they apply to individuals, to apply to them whether or not they are British citizens;

(c) power to provide for provisions of that Act having effect (with or without modifications) in relation to a foreign area, so far as they apply to bodies corporate, to apply to them whether or not they are incorporated under the law of a part of the United Kingdom; and

(d) power to provide for modifications of that Act to come into force before the coming into force of the international agreement to which they relate.

(4) An Order in Council under this section may—

(a) modify powers under the Petroleum Act 1998 to make subordinate legislation;

(b) make provision for a reference in a modification made by the Order to a specified document to operate as a reference to that document as revised or re-issued from time to time; and

(5) The power to make an Order in Council containing provision authorised by this section is subject to the affirmative resolution procedure.

(6) In this section—

“construction” and “pipeline” have the same meanings as in Part 3 of the Petroleum Act 1998;

“foreign area” means an area which is not within any of the following—the United Kingdom;the territorial sea adjacent to the United Kingdom; oran area designated under section 1(7) of the Continental Shelf Act 1964 (c. 29);

“international agreement” means—any international treaty, convention or protocol to which the United Kingdom is a party; orany other agreement between the United Kingdom and another country or territory;

“offshore installation” has the same meaning as in Part 4 of the Petroleum Act 1998 (c. 17).

Supplementary provision relating to functions of Secretary of State and GEMA

Application of general duties to Part 3 functions etc.

190

(1) Sections 4AA to 4B of the Gas Act 1986 (c. 44) (principal objectives and general duties) apply to the carrying out as respects—

(a) activities required to be authorised by gas licences,

(b) such licences and the conditions of such licences, or

of functions conferred on the Secretary of State or GEMA by or under Chapters 2 to 4 of Part 3 of this Act as they apply in relation to the carrying out of functions conferred on him, or on it, by or under Part 1 of that Act.

(2) Sections 3A to 3D of the 1989 Act (principal objectives and general duties) apply to the carrying out as respects—

(a) activities required to be authorised by electricity licences,

(b) such licences and the conditions of such licences, or

of functions conferred on the Secretary of State or GEMA by or under section 90 or 91 or Part 3 of this Act (other than section 179(4)) as they apply in relation to the carrying out of functions conferred on him, or on it, by or under Part 1 of that Act.

(3) In section 3A(2)(b) of the 1989 Act (duty to have regard to ability of licence holders to finance obligations under Part 1 or the Utilities Act 2000), for “or the Utilities Act 2000” substitute “ , the Utilities Act 2000 or Part 2 or 3 of the Energy Act 2004 ”.

(4) In this section—

“electricity licence” means a licence for the purposes of section 4 of the 1989 Act (prohibition on unlicensed electricity activities); and

“gas licence” means a licence for the purposes of section 5 of the Gas Act 1986 (prohibition on unlicensed gas activities).

Supplementary provision about licence condition powers

191

(1) This section applies to—

(a) the Secretary of State’s powers under Chapters 2 to 4 of Part 3 of this Act with respect to the conditions of gas licences; and

(b) his powers under sections 90 and 91 and Part 3 of this Act with respect to the conditions of electricity licences;

and this section is to be disregarded in determining the generality of those or any other powers conferred on the Secretary of State by this Act or otherwise.

(2) Conditions included in a gas licence, or in an electricity licence, by virtue of a power to which this section applies need not relate to the activities authorised by the licence.

(3) Conditions included in a gas licence by virtue of a power to which this section applies may do any of the things authorised by section 7B(4A) or (5) of the Gas Act 1986 (which apply to GEMA’s power with respect to licence conditions under section 7B(4)(a)).

(4) Conditions included in an electricity licence by virtue of a power to which this section applies may do any of the things authorised by section 7(2) to (4) of the 1989 Act (which apply to GEMA’s power with respect to licence conditions under section 7(1)(a)).

(5) In this section—

“electricity licence” means a licence for the purposes of section 4 of the 1989 Act (prohibition on unlicensed electricity activities); and

“gas licence” means a licence for the purposes of section 5 of the Gas Act 1986 (c. 44) (prohibition on unlicensed gas activities).

Supplemental

Powers exercisable by statutory instrument

192

(1) Every power conferred by this Act on the Secretary of State, the Welsh Ministers or the Treasury to make an order or regulations is a power exercisable by statutory instrument.

(2) Where—

(a) this Act provides for an Order in Council, order or regulations made by the Secretary of State or the Treasury to be subject to the negative resolution procedure, and

(b) a draft of the Order in Council, order or regulations has not been required, in accordance with subsection (3) or any other enactment, to be laid before Parliament and approved by a resolution of each House, or by a resolution of the House of Commons,

the statutory instrument containing the Order in Council, order or regulations shall be subject to annulment in pursuance of a resolution of either House of Parliament.

(2A) Where —

(a) this Act provides for an order or regulations made by the Welsh Ministers to be subject to the negative resolution procedure, and

(b) a draft of the order or regulations has not been required, in accordance with this or any other enactment, to be laid before and approved by a resolution of the National Assembly for Wales,

the statutory instrument containing the order or regulations shall be subject to annulment in pursuance of a resolution of the National Assembly for Wales.

(3) Where this Act specifies that a power of the Secretary of State or the Treasury to make any provision by Order in Council or other order is subject to the affirmative resolution procedure, no order under this Act containing that provision (with or without other provision) shall be made unless a draft of the Order in Council or other order has been—

(a) laid before Parliament; and

(b) approved by a resolution of each House.

(4) Subject to subsection (5), every power under this Act to make an Order in Council and every power conferred by this Act on the Secretary of State, the Welsh Ministers, the Scottish Ministers or the Treasury to make an order or regulations includes power—

(a) to make different provision for different cases (including different provision in respect of different areas);

(b) to make provision subject to such exemptions and exceptions as the person exercising the power thinks fit; and

(5) Subsection (4) does not apply to—

(a) the Secretary of State’s power to make an order under section 39(3);

(b) the power to make an Order in Council under section 84(4); or

(c) so much of the Secretary of State’s power to make an order under section 198 as is exercisable otherwise than by virtue of section 179(4) and (5).

Service of notifications and other documents

193

(1) This section applies where provision made (in whatever terms) by or under this Act (other than sections 129 to 131 or Chapter 3 of Part 3) authorises or requires—

(a) a notification to be given to a person; or

(b) a document of any other description (including a copy of a document) to be sent to a person.

(2) The notification or document may be given or sent to the person in question—

(a) by delivering it to him;

(b) by leaving it at his proper address; or

(3) The notification or document may be given or sent to a body corporate by being given or sent to the secretary or clerk of that body.

(4) The notification or document may be given or sent to a firm by being given or sent to—

(a) a partner in the firm; or

(b) a person having the control or management of the partnership business.

(5) The notification or document may be given or sent to an unincorporated body or association by being given or sent to a member of the governing body of the body or association.

(6) For the purposes of this section and section 7 of the Interpretation Act 1978 (c. 30) (service of documents by post) in its application to this section, the proper address of a person is—

(a) in the case of a body corporate, the address of the registered or principal office of the body;

(b) in the case of a firm, or an unincorporated body or association, the address of the principal office of the firm, body or association;

(c) in the case of a person to whom the notification or other document is given or sent in reliance on any of subsections (3) to (5), the proper address of the body corporate, firm or (as the case may be) other body or association in question; and

(d) in any other case, the last known address of the person in question.

(7) In the case of—

(a) a company registered outside the United Kingdom,

(b) a firm carrying on business outside the United Kingdom, or

the references in subsection (6) to its principal office include references to its principal office within the United Kingdom (if any).

(8) In this section “notification” includes notice; and references in this section to sending a document to a person include references to making an application to him.

(9) This section has effect subject to section 194.

Notifications and documents in electronic form

194

(1) This section applies where—

(a) section 193 authorises the giving or sending of a notification or other document by its delivery to a particular person (“the recipient”); and

(b) the notification or other document is transmitted to the recipient—

(i) by means of an electronic communications network; or

(ii) by other means but in a form that nevertheless requires the use of apparatus by the recipient to render it intelligible.

(2) The transmission has effect for the purposes of this Act as a delivery of the notification or other document to the recipient, but only if the requirements imposed by or under this section are complied with.

(3) Where the recipient is the NDA—

(a) it must have indicated its willingness to receive the notification or other document in a manner mentioned in subsection (1)(b);

(b) the transmission must be made in such manner, and satisfy such other conditions, as it may require; and

(4) Where the person making the transmission is the NDA, it may (subject to subsection (5)) determine—

(a) the manner in which the transmission is made; and

(b) the form in which the notification or other document is transmitted.

(5) Where the recipient is a person other than the NDA—

(a) the recipient, or

(b) the person on whose behalf the recipient receives the notification or other document,

must have indicated to the person making the transmission the recipient’s willingness to receive notifications or documents transmitted in the form and manner used.

(6) An indication to any person for the purposes of subsection (5)—

(a) must be given to that person in such manner as he may require;

(b) may be a general indication or one that is limited to notifications or documents of a particular description;

(c) must state the address to be used and must be accompanied by such other information as that person requires for the making of the transmission; and

(d) may be modified or withdrawn at any time by a notice given to that person in such manner as he may require.

(7) An indication, requirement or determination given, imposed or made by the NDA for the purposes of this section is to be given, imposed or made by being published in such manner as it considers appropriate for bringing it to the attention of the persons who, in its opinion, are likely to be affected by it.

(8) Subsection (8) of section 193 applies for the purposes of this section as it applies for the purposes of that section.

Timing and location of things done electronically

195

(1) The Secretary of State may, by order, make provision specifying, for the purposes of any enactment or subordinate legislation contained in or made under this Act, the manner of determining—

(a) the times at which things done under that enactment or subordinate legislation by means of electronic communications networks are done; and

(b) the places at which such things are so done, and at which things transmitted by means of such networks are received.

(2) The provision made by subsection (1) may include provision as to the country or territory in which an electronic address is to be treated as located.

(3) An order made by the Secretary of State may also make provision about the manner of proving in any legal proceedings—

(a) that something done by means of an electronic communications network satisfies the requirements of an enactment or subordinate legislation contained in or made under this Act for the doing of that thing; and

(b) the matters mentioned in subsection (1)(a) and (b).

(4) An order under this section may provide for such presumptions to apply (whether conclusive or not) as the Secretary of State considers appropriate.

(5) An order under this section is subject to the negative resolution procedure.

General interpretation

196

(1) In this Act—

“the 1965 Act” means the Nuclear Installations Act 1965 (c. 57);

“the 1989 Act” means the Electricity Act 1989 (c. 29);

“the 1993 Act” means the Radioactive Substances Act 1993 (c. 12);

“affirmative resolution procedure” is to be construed in accordance with section 192(3);

“BNFL” means the Nuclear Fuels Company (within the meaning of the Atomic Energy Authority Act 1971 (c. 11));

“contravention” includes a failure to comply, and cognate expressions are to be construed accordingly;

“documents” includes accounts, drawings, written representations and records of any description;

“electronic communications network” has the same meaning as in the Communications Act 2003 (c. 21);

“enactment” (except in Chapter 5 of Part 2) includes Acts of the Scottish Parliament and Northern Ireland legislation;

“financial year” means a period of twelve months ending with 31st March;

“GEMA” means the Gas and Electricity Markets Authority;

“modification” includes omission, addition or alteration, and cognate expressions are to be construed accordingly;

“the NDA” means the Nuclear Decommissioning Authority established by section 1;

“negative resolution procedure” is to be construed in accordance with section 192(2);

“nuclear site licence” has the same meaning as in the 1965 Act;

“nuclear transfer scheme” means a scheme under section 38;

“pensions, allowances or gratuities” is to be construed in accordance with subsection (2);

“securities”, in relation to a body corporate, includes shares, debentures, debenture stock, bonds and other securities of the body corporate, whether or not constituting a charge on the assets of the body corporate;

“shares” includes stock;

“subordinate legislation” has the same meaning as in the Interpretation Act 1978 (c. 30);

“subsidiary” and “wholly-owned subsidiary” have the meanings given by section 1159 of the Companies Act 2006;

“the UKAEA” means the United Kingdom Atomic Energy Authority.

(2) In this Act—

(a) references to pensions, allowances or gratuities include references to any similar benefits provided on death or retirement; and

(b) references to the payment of pensions, allowances or gratuities to or in respect of a person include references to the making of payments towards the provision of the payment of pensions, allowances or gratuities to or in respect of that person.

Repeals etc.

197

(1) In the Atomic Energy Authority Act 1971 (c. 11), the following provisions shall cease to have effect—

(a) section 4(1) (BNFL to make property etc. available to the UKAEA); and

(b) section 11(1) to (3) (provisions as to shares in BNFL and the Radiochemical Company).

(2) In section 11(4) of that Act (subscription for shares by the Secretary of State), for “either of the companies” substitute “ the Nuclear Fuels Company ”.

(3) In section 12(1) of that Act (loans to BNFL and the Radiochemical Company), for “either of the companies” and “the company to which the loan is made” substitute, respectively, “ the Nuclear Fuels Company ” and “ that Company ”.

(4) In section 20 of that Act, subsection (4) (powers to exclude employees of BNFL and Amersham from the UKAEA pension scheme) shall cease to have effect.

(5) In section 1(1) of the Nuclear Industry (Finance) Act 1977 (c. 7) (Government guarantees for BNFL and the Radiochemical Company), the words “or The Radiochemical Centre Limited (“T.R.C.L.”)” shall cease to have effect.

(6) In subsection (1) of section 2 of that Act (financial limits)—

(a) for the words from “financial limits” to “B.N.F.L.,” substitute “ financial limit applicable to B.N.F.L. is ”;

(b) paragraph (b) and the word “and” immediately preceding it shall cease to have effect; and

(7) In subsection (2) of that section for “either of the two companies” substitute “ B.N.F.L. ”.

(8) In section 11A(10) of the 1989 Act, in paragraph (b) of the definition of “relevant licence holder”, the words “(by virtue of anything done under section 33(2) of the Utilities Act 2000)” shall cease to have effect.

(9) The enactments in Part 1 of Schedule 23 (which include some that are spent) are repealed to the extent shown in the second column of that Part of that Schedule.

(10) Those repeals have effect subject to the provisions set out in Part 2 of that Schedule.

Short title, commencement and extent

198

(1) This Act may be cited as the Energy Act 2004.

(2) This Act (apart from this section) shall come into force on such day as the Secretary of State may by order appoint; and different days may be appointed for different purposes.

(3) Subject to subsection (4) of this section, this Act extends to Northern Ireland.

(4) The following provisions of this Act do not extend to Northern Ireland—

(a) Chapter 3 of Part 1 (with the exception of section 59 and paragraphs 1, 5, 6, 8, 10(1) and (2) and 11 of Schedule 14);

(b) so much of Part 2 as amends the 1989 Act;

(d) Part 3 (with the exception of section 151(5)).

SCHEDULE 1

Part 1 — Members and staff of NDA

Tenure of office by non-executive members

1

(1) Subject to what follows, the chairman and each of the other non-executive members is to hold and vacate office in accordance with the terms of his appointment.

(2) Each appointment must state the period for which it is made.

(3) That period must not exceed five years; but a person is eligible for re-appointment (on any number of occasions) from the end of a term of office.

(4) A non-executive member is not eligible to hold office as chief executive or otherwise to be a member of the staff of the NDA.

(5) A non-executive member may at any time resign his office as the chairman or as a member of the NDA (or both) by giving notice of his resignation to the Secretary of State.

(6) If the Secretary of State is satisfied that sub-paragraph (7) applies to the chairman or another non-executive member, the Secretary of State may, by giving him notice to that effect, remove him from office.

(7) This sub-paragraph applies to a person if—

(a) he is an undischarged bankrupt or has had his estate sequestrated without being discharged or a moratorium period under a debt relief order applies in relation to him (under Part 7A of the Insolvency Act 1986);

(b) he is subject to a bankruptcy restrictions order or an interim bankruptcy restrictions order or a debt relief restrictions order or an interim debt relief restrictions order (under Schedule 4ZB of the Insolvency Act 1986);

(c) he has made an arrangement with his creditors, or has entered into a trust deed for creditors, or has made a composition contract with his creditors;

(d) he has such a financial or other interest as is likely to affect prejudicially the carrying out by him of his functions as a member of the NDA;

(e) he is unfit for office by reason of misbehaviour; or

(f) he is otherwise incapable of carrying out, or unfit to carry out, the functions of his office.

(8) Before exercising his power under sub-paragraph (6), the Secretary of State must consult the Scottish Ministers.

(9) Oral notice is ineffective for the purposes of sub-paragraph (5) or (6).

Remuneration and pensions of non-executive members

2

(1) The NDA may pay—

(a) to the chairman, and

(b) to each of the other non-executive members,

such remuneration and allowances as the Secretary of State may determine.

(2) The NDA may pay, or make provision for paying—

(a) to or in respect of the chairman, and

(b) to or in respect of each of the other non-executive members,

such sums by way of pensions, allowances or gratuities as the Secretary of State may determine.

(3) Where—

(a) a person ceases, otherwise than on the expiry of his term of office, to be a non-executive member, and

(b) it appears to the Secretary of State that there are special circumstances which make it right for him to receive compensation,

the NDA may make a payment to him of such amount as the Secretary of State may determine.

Terms and conditions of executive members of the NDA

3

(1) The chief executive is to hold office on such terms and conditions (including terms and conditions as to remuneration) as the non-executive members determine.

(2) Each of the other executive members (if any) is to hold office as a member, on such terms and conditions (including terms and conditions as to remuneration) as the non-executive members may determine in his case.

(3) The terms and conditions on which an executive member other than the chief executive becomes or remains an employee of the NDA, or (without being an employee) a member of its staff, are also to be determined by the non-executive members.

(4) If the non-executive members so determine in the case of the chief executive or any of the other executive members, the NDA must—

(a) pay such pensions, allowances or gratuities to or in respect of the chief executive and each of those other members, or

(b) provide and maintain for the chief executive and those other members such pension schemes (whether contributory or not),

as the non-executive members mey determine.

(5) If an executive member—

(a) is a participant in a pension scheme applicable to his membership of the NDA, and

(b) ceases to be an executive member without ceasing to be a member of the NDA’s staff,

he may, if the Secretary of State so determines, be treated for the purposes of the pension scheme as if any service of his (after ceasing to be an executive member) as an employee of the NDA were service as an executive member.

Constitution of NDA for initial period

4

(1) Until the end of the initial period the NDA is to consist of just those members who have been appointed.

(2) As soon as practicable after his own appointment takes effect, the chairman must exercise the power to appoint a chief executive.

(3) Appointments of members other than the chairman and chief executive may be made during the initial period only after the appointment of the chief executive has taken effect.

(4) During the initial period the requirements of paragraph 9(1)—

(a) do not apply to a decision to which the chairman is a party if it is made when the chairman is the only non-executive member; but

(b) are not to be capable of being satisfied in relation to a decision made at any other time unless at least two non-executive members are parties to the decision.

(5) The chairman must ensure that proper records are kept of everything he does, while he is the only non-executive member, in the exercise or performance of powers or duties conferred or imposed on the non-executive members.

(6) In this paragraph “the initial period” means the period which begins with the commencement of so much of this Act as provides for the establishment of the NDA and ends with whichever of the following first occurs—

(a) the time when an appointment takes effect that brings the number of members of the NDA up to seven;

(b) the time specified as the end of the initial period in a notice given during that period by the Secretary of State to the NDA for the purposes of this paragraph.

Staffing of the NDA

5

(1) The NDA—

(a) may appoint such employees, in addition to those who are its members, as it may determine; and

(b) may make such other arrangements for the staffing of the NDA as it thinks fit.

(2) The employees of the NDA who are not its members are to be employed on such terms and conditions, including terms and conditions as to remuneration, as it determines.

(3) The NDA may, in the case of any of its employees who are not its members—

(a) pay to or in respect of those employees such pensions, allowances or gratuities, or

(b) provide and maintain for them such pension schemes (whether contributory or not),

as it determines.

(4) If an employee of the NDA—

(a) is a participant in a pension scheme applicable to his employment, and

(b) becomes an executive member,

he may, if the Secretary of State so determines, be treated for the purposes of the pension scheme as if his service as a member were service as an employee of the NDA.

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