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Energy Act 2008

Type Public General Act

Publication 2008-11-26

Last updated 2025-06-19

State In force

Department Statute Law Database

Source legislation.gov.uk

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(7) Where a nuclear site licence has been applied for, but not yet granted, in respect of a site, references in this section to the site operator include references to the person who has applied for a nuclear site licence in respect of the site.

Continuity of obligations

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(1) This section applies where a person (“the former site operator”) ceases to hold a nuclear site licence in respect of a site.

(2) This Chapter continues to apply to the former site operator as if it were the site operator in relation to the site.

(3) But the Secretary of State may give notice to the former site operator releasing it from its obligations under—

(a) this Chapter, and

(b) an approved funded decommissioning programme in respect of the site.

(4) A notice under subsection (3)—

(a) may relate to all the former site operator's obligations or only to specified obligations;

(b) may relate to the whole or part of a site;

(d) may be unconditional or subject to conditions.

(5) The power conferred by subsection (3) applies in relation to any other person with obligations under a programme within subsection (3)(b) as it applies in relation to the site operator.

(6) This section is without prejudice to the operation of this Chapter in relation to another person who applies for or is granted a nuclear site licence in respect of the site.

Amendment of Nuclear Installations Act 1965

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Disposal of hazardous material

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(1) Where the Secretary of State enters an agreement for, or in connection with, the disposal of relevant hazardous material by or on behalf of the Secretary of State, the agreement may provide for a fee to be paid to the Secretary of State.

(2) The Secretary of State may not enter an agreement which provides for the payment of a fee unless the consent of the Treasury has been obtained in relation to the amount of the proposed fee.

(3) The fee for which such an agreement provides may include—

(a) such amount as the Secretary of State considers prudent by reason of any uncertainty which exists about the relevant expenditure which will or may be incurred in connection with the Secretary of State's obligations under the agreement in relation to the relevant hazardous material;

(b) an amount in respect of such proportion as the Secretary of State considers appropriate of the aggregate of—

(i) the relevant expenditure which has been, will or may be, incurred in connection with the design and construction of a repository in which material (including any hazardous material to which the agreement relates) is to be disposed of, and

(ii) such amount as the Secretary of State considers it prudent to make allowance for by reason of any uncertainty which exists about the relevant expenditure which will or may be incurred as mentioned in sub-paragraph (i).

(3A) The Secretary of State may make regulations providing for a person who makes a proposal to the Secretary of State to enter an agreement of the kind mentioned in subsection (1), or proposes an amendment to such an agreement, to pay a fee to the Secretary of State in respect of the costs incurred in relation to the consideration of the proposal, including, in particular, the costs of obtaining advice in relation to it.

(3B) The regulations may, in particular, make provision about—

(a) when the fee is to be paid;

(b) how the amount of the fee is to be determined.

(4) In this section—

“hazardous material” has the meaning given by section 37 of the Energy Act 2004 (c. 20);

“relevant expenditure” means expenditure incurred by the Secretary of State, the Nuclear Decommissioning Authority or any other person;

“relevant hazardous material” means hazardous material which is, or is required to be, the subject of a funded decommissioning programme.

General

Meaning of “associated”

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(1) For the purposes of this Chapter, one body corporate is associated with another if one of them has a significant interest in the other or a third body corporate has a significant interest in both of them; and subsections (2) to (5) set out the circumstances in which one body corporate (“A”) has a significant interest in another (“B”).

(2) Where B is a company, A has a significant interest in B if A possesses or is entitled to acquire—

(a) 20% or more of the issued share capital of B,

(b) such rights as would entitle A to exercise 20% or more of the votes exercisable in general meetings of B,

(c) such part of the issued share capital of B as would entitle A to 20% or more of the amount distributed if the whole of the income of B were in fact distributed among the shareholders, or

(d) such rights as would, in the event of the winding up of B or in any other circumstances, entitle it to receive 20% or more of the assets of B which would then be available for distribution among the shareholders.

(3) Where B is a limited liability partnership, A has a significant interest in B if A—

(a) holds 20% or more of the voting rights in B,

(b) is a member of B and has a right to appoint or remove 20% or more of other members, or

(c) is a member of B and controls alone, or pursuant to an agreement with other members, 20% or more of the voting rights in B.

(4) In subsection (3)(a) and (c) the references to “voting rights” are to the rights conferred on members in respect of their interest in a limited liability partnership to vote on those matters which are to be decided on by a vote of the members of the limited liability partnership.

(5) In any case, A has a significant interest in B if A has the power, directly or indirectly, to secure that the affairs of B are conducted in accordance with A's wishes.

(6) In determining whether, by virtue of this section, A has a significant interest in B, A shall be taken to possess—

(a) any rights and powers possessed by a person as nominee for A, and

(b) any rights and powers possessed by a body corporate which A controls (including rights and powers which such a body corporate would be taken to possess by virtue of this paragraph).

(7) In order to determine whether one body corporate controls another for the purposes of subsection (6)(b), subsections (2) to (5) and (6)(a) are to be applied, but as if—

(a) for “has a significant interest in” in each place there were substituted “ controls ”, and

(b) for “20%” in each place there were substituted “ 50% ”.

(8) This section is subject to section 67A.

Interpretation

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In this Chapter—

“approved funded decommissioning programme” means a funded decommissioning programme approved under section 46;

“cleaning-up” and “decommissioning”, in relation to a site or installation, include the treatment, storage, transportation and disposal of hazardous material (within the meaning of section 37 of the Energy Act 2004) and of other matter and substances that need to be dealt with or removed in or towards making the site or installation suitable to be used for other purposes;

“the designated technical matters” has the meaning given by section 45;

“document” includes anything in which information is recorded in any form;

“enactment” includes an enactment comprised in, or in an instrument made under, an Act of the Scottish Parliament or Northern Ireland legislation;

“funded decommissioning programme” is to be construed in accordance with section 45;

“nuclear installation” has the meaning given by section 26 of the Nuclear Installations Act 1965 (c. 57);

“nuclear site licence” has the meaning given by that section;

“relevant nuclear installation”, in relation to a site, means a nuclear installation which is or is intended to be established on the site;

“site operator” means a person who holds a nuclear site licence in respect of a site;

“the technical matters” has the meaning given by section 45.

Chapter 2 — Offshore renewables installations

Decommissioning notices relating to offshore renewable energy installations

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(1) The Energy Act 2004 (c. 20) is amended as follows.

(2) In section 105(2) (notices), for “that person” substitute

— (a) a person falling within subsection (1)(a), (b) or (c), or (b) if a person to whom paragraph (a) applies is a body corporate, a body corporate associated with that person (subject to section 105A),

(3) In section 105(3) (consents) for the words from the beginning to “proposals—” substitute—

(3) Before requiring a person to submit a decommissioning programme in respect of proposals made by a person within paragraph (a) or (b) of subsection (1), the Secretary of State must be satisfied that at least one of the statutory consents required for giving effect to those proposals—

(4) After section 105 (requirement to prepare decommissioning programme) insert—

(105A) (1) The Secretary of State may not give a notice under section 105(2)(b) to a body corporate associated with a person (“the responsible person”) within section 105(1)(a), (b) or (c) unless the Secretary of State— (a) has given a notice to the responsible person under section 105(2)(a), and (b) is not satisfied that adequate arrangements (including financial arrangements) have been made by the responsible person to ensure that a satisfactory decommissioning programme will be carried out. (2) Subsection (1) does not apply if— (a) there has been a failure to comply with a notice under section 105(2), or (b) the Secretary of State has rejected a programme submitted in compliance with such a notice. (3) For the purposes of this section and section 105, one body corporate is associated with another if one of them controls the other or a third body corporate controls both of them, and subsections (4) to (8) set out the circumstances in which one body corporate (“A”) controls another (“B”). (4) Where B is a company, A controls B if A possesses or is entitled to acquire— (a) one half or more of the issued share capital of B, (b) such rights as would entitle A to exercise one half or more of the votes exercisable in general meetings of B, (c) such part of the issued share capital of B as would entitle A to one half or more of the amount distributed if the whole of the income of B were in fact distributed among the shareholders, or (d) such rights as would, in the event of the winding up of B or in any other circumstances, entitle it to receive one half or more of the assets of B which would then be available for distribution among the shareholders. (5) Where B is a limited liability partnership, A controls B if A— (a) holds a majority of the voting rights in B, (b) is a member of B and has a right to appoint or remove a majority of other members, or (c) is a member of B and controls alone, or pursuant to an agreement with other members, a majority of the voting rights in B. (6) In subsection (5)(a) and (c) the references to “voting rights” are to the rights conferred on members in respect of their interest in a limited liability partnership to vote on those matters which are to be decided on by a vote of the members of the limited liability partnership. (7) In any case, A controls B if A has the power, directly or indirectly, to secure that the affairs of B are conducted in accordance with A's wishes. (8) In determining whether, by virtue of subsections (4) to (7), A controls B, A is to be taken to possess— (a) any rights and powers possessed by a person as nominee for it, and (b) any rights and powers possessed by a body corporate which it controls (including rights and powers which such a body corporate would be taken to possess by virtue of this paragraph).

(5) In section 108 (reviews of decommissioning programmes), after subsection (3) insert—

(3A) A proposal under subsection (3)(b) may, in particular, be made in relation to a body corporate associated with a person who has a duty under section 109(1) (and for this purpose “associated” is to be construed in accordance with section 105A(3) to (8)).

Security for decommissioning obligations

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(1) After section 110 of the Energy Act 2004 (c. 20) (failure to carry out decommissioning programme) insert—

(110A) (1) This section applies where any security in relation to the carrying out of an approved decommissioning programme, or for compliance with the conditions of its approval, has been provided by a person (“the security provider”) by way of a trust or other arrangements. (2) In this section a reference to “the protected assets” is a reference to the security and any property or rights in which it consists. (3) The manner in which, and purposes for which, the protected assets are to be applied and enforceable (whether in the event of the security provider's insolvency or otherwise) is to be determined in accordance with the trust or other arrangements. (4) For the purposes of subsection (3), no regard is to be had to so much of the Insolvency Act 1986, the Insolvency (Northern Ireland) Order 1989 or any other enactment or rule of law as, in its operation in relation to the security provider or any conduct of the security provider, would— (a) prevent or restrict the protected assets from being applied in accordance with the trust or other arrangement, or (b) prevent or restrict their enforcement for the purposes of being so applied. (5) In subsection (4) “enactment” includes an instrument made under an enactment. (110B) (1) The Secretary of State may direct a security provider to publish specified information about the protected assets. (2) A direction under this section may specify— (a) the time when the information must be published, and (b) the manner of publication. (3) If a security provider fails to comply with a direction, the Secretary of State or a creditor of the security provider may make an application to the court under this section. (4) If, on an application under this section, the court decides that the security provider has failed to comply with the direction, it may order the security provider to take such steps as the court directs for securing that the direction is complied with. (5) In this section— - “the protected assets” has the same meaning as in section 110A; - “security provider” means a person who has provided security in relation to which that section applies. (6) In subsections (3) and (4) references to “the court” are references— (a) to the High Court, in relation to an application in England and Wales or Northern Ireland, or (b) to the Court of Session, in relation to an application in Scotland.

(2) In section 114(2) of that Act (interpretation), in the definition of “security” after paragraph (c) insert—

(ca) an insurance policy;

Provision of information to Secretary of State

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After section 112 of the Energy Act 2004 (c. 20) (duty to inform Secretary of State) insert—

(112A) (1) The Secretary of State may by notice require a person within subsection (2) to provide the Secretary of State with such relevant information or documents as the Secretary of State may require in connection with the exercise of functions under this Chapter. (2) Those persons are— (a) a person who has been, or may be, given a notice under section 105(2)(a) in relation to a relevant object, (b) where a person falling within paragraph (a) is a body corporate, a body corporate associated with that person, (c) a person not within paragraph (a) or (b) who by virtue of provision made under section 108(3)(b) is subject to the duty under section 109(1) in relation to a decommissioning programme relating to a relevant object. (3) Information or a document is “relevant” if it relates to— (a) the place where the relevant object is or is to be situated, (b) the relevant object, (c) where the recipient of the notice is a body corporate falling within subsection (2)(c) or section 105(2)(a), details of an associated body corporate, (d) the financial affairs of the recipient of the notice or, where the recipient is a body corporate falling within subsection (2)(c) or section 105(1)(a), (b) or (c), an associated body corporate, (e) the security that the recipient proposes to provide in relation to the carrying out of a decommissioning programme relating to the relevant object or for the recipient's compliance with any conditions of the programme's approval, or (f) where the recipient of the notice (“R”) is a body corporate falling within subsection (2)(c) or section 105(1)(a), (b) or (c), the name or address of any person whom R believes to be an associated body corporate. (4) But if a notice under subsection (1) requires information in connection with a function of the Secretary of State under section 107(1) or (4), the notice may require the provision of information or documents which the Secretary of State considers are necessary or expedient for the purpose of exercising those functions (whether or not they are of a kind specified in subsection (3)). (5) A notice under subsection (1) must specify the documents or information, or the description of documents or information, to which it relates. (6) Information or documents required to be provided under this section must be provided within such period as is specified in the notice under subsection (1). (7) In this section, “associated”, in relation to a body corporate, is to be construed in accordance with section 105A(3) to (8). (8) A person who fails, without reasonable excuse, to comply with a notice under subsection (1) is guilty of an offence. (9) A person who discloses information obtained by virtue of a notice under this section is guilty of an offence unless the disclosure— (a) is made with the consent of the person by or on behalf of whom the information was provided, (b) is for the purpose of the exercise of the Secretary of State's functions under this Chapter, the Electricity Act 1989 or Part 4 of the Petroleum Act 1998, or (c) is required by or under an enactment.

Chapter 3 — Oil and gas installations

Persons who may be required to submit abandonment programmes

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(1) Section 30 of the Petroleum Act 1998 (c. 17) (persons who may be required to submit programmes) is amended as follows.

(2) In subsection (1)—

(a) after paragraph (b) insert—

(ba) a person to whom subsection (5)(a) and (b) applied in relation to the installation, but who— (i) transferred the right mentioned in that subsection to another person, and (ii) has not obtained a consent required under the licence in relation to the transfer;

, and

(b) in paragraph (e) for “company” in each place substitute “ body corporate ”.

(3) In subsection (2)(c) for “company” in each place substitute “ body corporate ”.

(4) For subsection (5)(b) substitute—

(b) either— (i) any activity mentioned in subsection (6) is carried on from, by means of or on the installation, or (ii) the person intends to carry on an activity mentioned in that subsection from, by means of or on the installation,

(5) For subsection (8) substitute—

(8) For the purposes of this section, one body corporate is associated with another if one of them controls the other or a third body corporate controls both of them; and subsections (8A) to (8D) set out the circumstances in which one body corporate (“A”) controls another (“B”). (8A) Where B is a company, A controls B if A possesses or is entitled to acquire— (a) one half or more of the issued share capital of B, (b) such rights as would entitle A to exercise one half or more of the votes exercisable in general meetings of B, (c) such part of the issued share capital of B as would entitle A to one half or more of the amount distributed if the whole of the income of B were in fact distributed among the shareholders, or (d) such rights as would, in the event of the winding up of B or in any other circumstances, entitle it to receive one half or more of the assets of B which would then be available for distribution among the shareholders. (8B) Where B is a limited liability partnership, A controls B if A— (a) holds a majority of the voting rights in B, (b) is a member of B and has a right to appoint or remove a majority of other members, or (c) is a member of B and controls alone, or pursuant to an agreement with other members, a majority of the voting rights in B. (8C) In subsection (8B)(a) and (c) the references to “voting rights” are to the rights conferred on members in respect of their interest in a limited liability partnership to vote on those matters which are to be decided on by a vote of the members of the limited liability partnership. (8D) In any case, A controls B if A has the power, directly or indirectly, to secure that the affairs of B are conducted in accordance with A's wishes.

(6) In subsection (9)—

(a) for “subsection (8)” substitute “ subsections (8) to (8D) ”, and

(b) for “company” in each place substitute “ body corporate ”.

(7) In section 31 of that Act (notices: supplementary provision), before subsection (1) insert—

(A1) The Secretary of State may not give a notice under section 29(1) in relation to an offshore installation to a person (“P”) who, in relation to the installation, falls within paragraph (b) or (c) of section 30(1), if— (a) P is not entitled to derive, and never has been entitled to derive, any financial or other benefit from any activity within section 30(6)— (i) which has been or is carried on (or is intended to be carried on) from, by means of or on the installation, and (ii) is an activity to which subsection (B1) applies, and (b) P is not, and never has been, a person within section 30(1)(a), (ba), (d) or (e) in relation to the installation. (B1) This subsection applies to an activity if— (a) where the activity is the exploitation or exploration of mineral resources, it relates to an oil field for which the installation is or is to be established or maintained; (b) where the activity is the conveyance of minerals, the minerals are got, or to be got, from such an oil field; (c) where the activity is the unloading, storage or recovery of gas, it relates to a controlled place (within the meaning of Chapter 2 or 3 of Part 1 of the Energy Act 2008) for which the installation is or is to be established or maintained; (d) where the activity is the conveyance of gas being stored or recovered, the storage or recovery of the gas relates to such a controlled place; (e) where the activity is within section 30(6)(c)— (i) the installation is in an oil field in respect of which P has an interest, or (ii) the installation is in a controlled place in respect of which P has a licence under Part 1 of the Energy Act 2008. (C1) For the purposes of subsection (B1)— (a) “oil field” means an area which the appropriate authority (within the meaning of paragraph 1(2) of Schedule 1 to the Oil Taxation Act 1975) has determined to be an oil field for the purposes of Part 1 of that Act, (b) P has an interest in an oil field if P is entitled to derive, or has at any time been entitled to derive, any financial or other benefit from activities within section 30(6) (other than paragraph (c)) carried on in the field. (D1) The Secretary of State may not give a notice under section 29(1) in relation to an offshore installation to a body corporate if— (a) the body corporate falls within paragraph (e) of section 30(1) (and no other paragraph of that section), and (b) the body corporate falls within that paragraph by reason only that it is associated (within the meaning given by section 30(8)) with a person to whom the Secretary of State may not give a notice in relation to the installation by virtue of subsection (A1).

(8) In section 34 of that Act (revision of programmes), after subsection (3) insert—

(3A) A proposal that a person who is or has been within paragraph (b) or (c) of section 30(1) is to have a duty to secure that a programme is carried out may not be made if the Secretary of State would be prevented from giving a notice under section 29(1) to the person by virtue of section 31(A1) if the programme had not already been approved under this section.

Financial resources etc

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(1) Section 38 of the Petroleum Act 1998 (c. 17) (information and notices) is amended as follows.

(2) For subsection (1) substitute—

(1) The Secretary of State may, for a purpose specified in subsection (1A), give a notice to a person within subsection (1B) requiring the person, within a time specified in the notice— (a) to provide specified information relating to the person's financial affairs; (b) to supply copies of specified documents, or documents of a specified description, relating to those affairs. (1A) Those purposes are— (a) determining whether to give a notice under section 29 to a person in respect of an installation or pipeline; (b) determining whether to make a proposal under section 34(1) to impose a duty on a person under section 36; (c) where a person has made such a proposal, determining whether to impose the duty on the person proposed. (1B) A person falls within this subsection if— (a) a notice under section 29(1) may be given to the person, (b) the person falls within section 34(2)(a) or (b) and the Secretary of State is considering proposing, in accordance with section 34(1)(b), that the person should have a duty under section 36, or (c) the person falls within section 34(2)(a) or (b) and the Secretary of State is considering whether to impose a duty on the person under section 36 in accordance with a proposal made under section 34(1)(b).

(3) In subsection (2)—

(a) for the words from “who has” to “that duty” substitute “ falling within subsection (2A) will be capable of carrying out any abandonment programme which has been submitted (whether or not it is approved) or may be submitted in relation to an installation or pipeline ”, and

(b) in paragraph (a) after “information” insert “ (which may relate to the estimated costs of abandonment of the installation or pipeline or to any other financial or other matter) ”.

(4) After that subsection insert—

(2A) A person falls within this subsection if— (a) a notice under section 29(1) has been given to the person, or (b) the person has a duty under section 36 to secure that an abandonment programme is carried out.

(5) For subsection (4) substitute—

(4) The Secretary of State may, after consulting the Treasury, give written notice to a person to whom subsection (4A) applies, requiring the person to take such action as may be specified in the notice within such time as may be so specified. (4A) This subsection applies to a person if— (a) the person falls within subsection (2A), and (b) the Secretary of State is not satisfied that the person will be capable of carrying out any duty which has been, or is likely to be, imposed on the person by section 36.

(6) After subsection (6) add—

(7) It is an offence for a person to disclose information obtained by virtue of a notice under subsection (1) or (2) unless the disclosure— (a) is made with the consent of the person by or on behalf of whom the information was provided, (b) is for the purpose of the exercise of the Secretary of State's functions under this Part, Chapter 3 of Part 2 of the Energy Act 2004 or Part 1 of the Energy Act 2008, or (c) is required by or under an enactment.

Protection of abandonment funds from creditors

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(1) After section 38 of the Petroleum Act 1998 (c. 17) insert—

(38A) (1) This section applies where any security for the performance of obligations under an approved abandonment programme has been provided by a person (“the security provider”) by way of a trust or other arrangements. (2) Subsection (1) applies whether the security is provided before or after the programme is approved. (3) In this section a reference to “the protected assets” is a reference to the security and any property or rights in which it consists. (4) In this section “security” includes— (a) a charge over a bank account or any other asset; (b) a deposit of money; (c) a performance bond or guarantee; (d) an insurance policy; (e) a letter of credit. (5) The manner in which, and purposes for which, the protected assets are to be applied and enforceable (whether in the event of the security provider's insolvency or otherwise) is to be determined in accordance with the trust or other arrangements. (6) For the purposes of subsection (5), no regard is to be had to so much of the Insolvency Act 1986, the Insolvency (Northern Ireland) Order 1989 or any other enactment or rule of law as, in its operation in relation to the security provider or any conduct of the security provider, would— (a) prevent or restrict the protected assets from being applied in accordance with the trust or other arrangement, or (b) prevent or restrict their enforcement for the purposes of being so applied. (7) In subsection (6) “enactment” includes an enactment comprised in, or in an instrument made under, an Act of the Scottish Parliament or Northern Ireland legislation. (38B) (1) The Secretary of State may direct a security provider to publish specified information about the protected assets. (2) A direction under this section may specify— (a) the time when the information must be published, and (b) the manner of publication. (3) If a security provider fails to comply with a direction, the Secretary of State, or a creditor of the security provider, may make an application to the court under this section. (4) If, on an application under this section, the court decides that the security provider has failed to comply with the direction, it may order the security provider to take such steps as the court directs for securing that the direction is complied with. (5) In this section— - “court”— 1. in relation to an application in England and Wales or Northern Ireland, means the High Court, and 2. in relation to an application in Scotland, means the Court of Session; - “security provider” means a person who has provided security in relation to which section 38A applies; - “the protected assets”, in relation to a security provider, means the security, and any property or rights in which it consists.

(2) This section has effect in relation to a trust or other arrangements established on or after 1st December 2007.

Chapter 4 — Wells

Information about decommissioning of wells

75

(1) In Part 5 of the Petroleum Act 1998 (c. 17), before section 46 (Northern Ireland and Isle of Man shares of petroleum revenue) insert—

(45A) (1) This section applies in relation to a person who has drilled, or commenced drilling, a well in pursuance of a petroleum licence or a licence under section 4 of the Energy Act 2008 (gas storage and unloading licences). (2) The Secretary of State may give a notice requiring the person— (a) to provide specified information relating to the person's financial affairs, or (b) to supply copies of specified documents, or documents of a specified description, relating to those affairs. (3) A notice under subsection (2) must specify the time within which the information or documents must be provided. (4) Subsection (5) applies if— (a) the person fails to provide information or documents required by such a notice within the period specified in the notice, or (b) on receiving information or documents required by a notice under subsection (2) the Secretary of State is not satisfied that the person will be capable of plugging and abandoning the well. (5) Where this subsection applies the Secretary of State may give the person a notice, after consulting the Treasury, requiring the person to take the action specified in the notice within the time so specified. (6) The Secretary of State may not give a notice to a person under subsection (5) without first giving the person an opportunity to make written representations as to whether the notice should be given. (7) It is an offence for a person to fail to comply with a notice under subsection (2) or (5) unless it is proved that the person exercised due diligence to avoid the failure. (8) A person guilty of an offence under this section is liable— (a) on summary conviction, to a fine not exceeding the statutory maximum, or (b) on conviction on indictment, to imprisonment for a term not exceeding 2 years or to a fine, or both. (9) Section 41 (other than subsection (5)) applies in relation to prosecutions for offences under this section as it applies in relation to prosecutions for offences under Part 4. (10) In this section— - “petroleum licence” means a licence under section 2 of the Petroleum (Production) Act 1934 or section 3 above; - “well” includes a borehole.

(2) This section applies in relation to any well the drilling of which commences on or after the date on which this section comes into force.

Part 4 — Provisions relating to oil and gas

Petroleum licences

76

After section 5 of the Petroleum Act 1998 (c. 17) (existing licences) insert—

(5A) (1) This section applies if— (a) a person is (or two or more persons are) the licensee in respect of a licence under section 2 of the Petroleum (Production) Act 1934 or section 3 above (“the transferor”), (b) the transferor transfers a right granted by the licence, or derived from a right so granted, to another person (“the transferee”) after commencement in circumstances where the consent of the Secretary of State is required for the transfer, and (c) that consent is not obtained. (2) The Secretary of State may, by notice given to the transferor and the transferee, direct that the right is to revert to the transferor from a date specified in the notice. (3) The date specified must not be earlier than the date on which the notice is given. (4) Before giving a notice to a person under subsection (2), the Secretary of State must— (a) notify the person of the proposal to give the notice, and (b) give the person a reasonable period within which to make written representations. (5) The Secretary of State may not give a notice under subsection (2) after the end of the period of 3 months beginning with the date on which the Secretary of State learns of the transfer. (6) In this section— - “commencement” means the time when this section comes into force; - “transfer” does not include a transfer by way of security for a loan. (5B) (1) The Commissioners for Her Majesty's Revenue and Customs may disclose to the Secretary of State information relating to the transfer of a right granted by a licence under section 2 of the Petroleum (Production) Act 1934 or section 3 above, or derived from a right so granted, for the purpose of enabling the Secretary of State to determine whether a transfer to which section 5A applies has taken place. (2) This section applies despite any statutory or other restriction on the disclosure of information. (3) Information disclosed under this section must not be further disclosed except— (a) for the purpose mentioned in subsection (1), with the consent (which may be general or specific) of the Commissioners, (b) in pursuance of an order of a court, or (c) with the consent of each person to whom the information relates. (4) A person who discloses information contrary to subsection (3) commits an offence if the identity of the person to whom the information relates— (a) is specified in the disclosure, or (b) can be deduced from it. (5) It is a defence for a person charged with an offence under this section to prove that the person reasonably believed that— (a) the disclosure was lawful, or (b) the information had already and lawfully been made available to the public. (6) A person guilty of an offence under this section is liable— (a) on summary conviction, to imprisonment for a term not exceeding 12 months or to a fine not exceeding the statutory maximum, or both, and (b) on conviction on indictment, to imprisonment for a term not exceeding 2 years or to a fine, or both. (5C) (1) No proceedings for an offence under section 5B may be instituted in England and Wales except— (a) by the Director of Revenue and Customs Prosecutions, or (b) with the consent of the Director of Public Prosecutions. (2) No proceedings for an offence under section 5B may be instituted in Northern Ireland except— (a) by the Commissioners for Her Majesty's Revenue and Customs, or (b) with the consent of the Director of Public Prosecutions for Northern Ireland. (3) In the application of section 5B to Northern Ireland the reference in section 5B(6)(a) to 12 months is to be read as a reference to 6 months. (4) In the application of section 5B to England and Wales in relation to an offence committed before the commencement of section 282 of the Criminal Justice Act 2003 (c. 44) (short sentences) the reference in section 5B(6)(a) to 12 months is to be read as a reference to 6 months.

Model clauses of petroleum licences

77

(1) Schedule 3 amends the model clauses contained in the instruments specified in that Schedule.

(2) Where a licence granted under the Petroleum (Production) Act 1934 (c. 36) or the Petroleum Act 1998 (c. 17), and in force immediately before commencement, incorporates model clauses amended by a paragraph of Schedule 3, the licence has effect with the amendments provided for by that paragraph of that Schedule.

(3) The reference in subsection (2) to model clauses includes model clauses subject to any amendment or modification or with the omission of any model clause.

(4) Where an amendment made by a paragraph of Schedule 3 confers a power to give a notice requiring the plugging and abandonment of a well, the power may not be exercised in relation to a well the drilling of which began before commencement.

(5) Where an amendment made by a paragraph of Schedule 3 confers a power of revocation or partial revocation of a licence, that power may not be exercised by reason of an event which takes place before commencement.

(6) A reference in any document to provisions of a licence which are amended by Schedule 3 is to be construed, unless the nature of the document or the context otherwise requires, as a reference to those provisions as amended.

(7) A provision inserted in a licence by virtue of Schedule 3 may be altered or deleted by deed executed by the Secretary of State and the licensee or, as respects Scotland, by an instrument subscribed or authenticated by the Secretary of State and the licensee in accordance with the Requirements of Writing (Scotland) Act 1995 (c. 7).

(8) In this section “commencement”, in relation to a paragraph of Schedule 3, means the time when that paragraph comes into force.

Third party access

Third party access to infrastructure

78

(1) In section 66(1) of the Pipe-lines Act 1962 (c. 58) (interpretation)—

(a) in the definition of “gas processing operation”, omit “and” after paragraph (b) and after paragraph (c) insert—

(d) separating, purifying, blending, odorising or compressing gas, for the purpose of— (i) converting it into a form in which a purchaser is willing to accept delivery from a seller, or (ii) enabling it to be loaded for conveyance to another place (whether inside or outside Great Britain); and (e) loading gas— (i) at a facility which carries out operations of a kind mentioned in paragraph (d), or (ii) piped from such a facility, for the purpose of enabling the gas to be conveyed to another place (whether inside or outside Great Britain);

(b) in the definition of “terminal”, omit “and” after paragraph (b) and after paragraph (c) insert

; and (d) oil processing facilities (within the meaning given by section 81(8) of the Energy Act 2008);

, and

(c) in the definition of “upstream petroleum pipe-line” after paragraph (c) insert— “ including all apparatus, works and services associated with the operation of such a pipe-line or network. ”

(2) In section 12 of the Gas Act 1995 (c. 45) (rights to use gas processing facilities)—

(a) in subsection (6), in the definition of “gas processing operation”, omit “and” at the end of paragraph (b) and after paragraph (c) insert—

(d) separating, purifying, blending, odorising or compressing gas for the purpose of— (i) converting it into a form in which a purchaser is willing to accept delivery from a seller, or (ii) enabling it to be loaded for conveyance to another place (whether inside or outside Great Britain); and (e) loading gas— (i) at a facility which carries out operations of a kind mentioned in paragraph (d), or (ii) piped from such a facility, for the purpose of enabling the gas to be conveyed to another place (whether inside or outside Great Britain);

, and

(b) for subsection (7) substitute—

(7) For the purposes of this section “associate”, in relation to the owner of a gas processing facility, is to be construed in accordance with section 82 of the Energy Act 2008 (and for this purpose the reference in subsection (1) of that section to the owner of an oil processing facility is to be read as a reference to the owner of a gas processing facility).

(3) In section 26 of the Petroleum Act 1998 (c. 17) (meaning of “pipeline”)—

(a) in subsection (1) for “any apparatus and works associated with such a pipe or system” substitute “ all apparatus, works and services associated with the operation of such a pipe or system ”, and

(b) omit subsection (2).

(4) In section 28 of that Act (interpretation of Part 3)—

(a) in the definition of “gas processing operation”, omit “and” after paragraph (b) and after paragraph (c) insert—

(d) separating, purifying, blending, odorising or compressing gas, for the purpose of— (i) converting it into a form in which a purchaser is willing to accept delivery from a seller, or (ii) enabling it to be loaded for conveyance to another place (whether inside or outside Great Britain); and (e) loading gas— (i) at a facility which carries out operations of a kind mentioned in paragraph (d), or (ii) piped from such a facility, for the purpose of enabling the gas to be conveyed to another place (whether inside or outside Great Britain);

(b) after the definition of “notice” insert—

“oil processing facility” means any facility in Great Britain, the territorial sea adjacent to the United Kingdom or the sea in any area designated under section 1(7) of the Continental Shelf Act 1964 which carries out oil processing operations; “oil processing operations” means any of the following operations— (a) initial blending and such other treatment of petroleum as may be required to produce stabilised crude oil and other hydrocarbon liquids to the point at which a seller could reasonably make a delivery to a purchaser of such oil and liquids; (b) receiving stabilised crude oil and other hydrocarbon liquids piped from an oil processing facility carrying out operations of a kind mentioned in paragraph (a), or storing oil or other hydrocarbon liquids so received, prior to their conveyance to another place (whether inside or outside Great Britain); (c) loading stabilised crude oil and other hydrocarbon liquids piped from a facility carrying out operations of a kind mentioned in paragraph (a) or (b) for conveyance to another place (whether inside or outside Great Britain);

, and

(aa) oil processing facilities;

Modification of pipelines

79

(1) The Pipe-lines Act 1962 (c. 58) is amended as follows.

(2) After section 10F (reducing necessity for constructing additional pipelines) insert—

(10G) (1) In the case of an upstream petroleum pipe-line, the Secretary of State may, on the application of a person other than the owner, give a notice (a “pipe-line modification notice”) to the applicant and the owner. (2) The Secretary of State may give a pipe-line modification notice only if the Secretary of State is satisfied— (a) that the capacity of the pipe-line can and should be increased by modifying the apparatus and works associated with the pipe-line, or (b) that the pipe-line can and should be modified by installing in it a junction through which another pipe-line may be connected to the pipe-line. (3) A pipe-line modification notice must— (a) specify the modifications which the Secretary of State thinks should be made, (b) specify the sums, or the method of determining the sums, which the Secretary of State thinks should be paid to the owner by the applicant for the purpose of defraying the cost of the modifications, (c) require the applicant to make such arrangements as the Secretary of State thinks appropriate to secure that those sums will be paid to the owner if the owner carries out the modifications or satisfies the Secretary of State that they will be carried out, (d) specify the period within which the applicant must make the arrangements mentioned in paragraph (c), (e) require the owner, if the applicant makes the arrangements mentioned in paragraph (c) within the period specified under paragraph (d), to carry out the modifications within a period specified in the notice, and (f) authorise the owner to recover the sums mentioned in paragraph (b) from the applicant if the works are carried out or the Secretary of State is satisfied that they will be carried out. (4) Before giving a pipe-line modification notice, the Secretary of State must give the owner of the pipe-line an opportunity to be heard. (5) References in this section to modifications include, in the case of apparatus and works, references to changes in, substitutions for and additions to the apparatus and works. (6) This section does not apply in relation to a pipe-line if and to the extent that section 14 of the Petroleum Act 1998 applies in relation to it. (10H) (1) It is an offence for the owner of a pipe-line to contravene any provision of a pipe-line modification notice under section 10G in respect of the pipe-line. (2) A person guilty of the offence is liable— (a) on summary conviction, to a fine not exceeding the statutory maximum, and (b) on conviction on indictment, to a fine. (3) It is a defence, in any proceedings for the offence, to prove that the accused exercised due diligence to comply with the provisions of the pipe-line modification notice. (4) Proceedings for the offence may not be instituted in England and Wales except— (a) by the Secretary of State or by a person authorised to do so by the Secretary of State, or (b) by or with the consent of the Director of Public Prosecutions. (5) Where the offence is committed by a body corporate and is proved to have been committed with the consent or connivance of, or to be attributable to neglect on the part of, an officer of the body corporate, that officer (as well as the body corporate) is guilty of the offence and is liable to be proceeded against and dealt with accordingly. (6) Where the affairs of a body corporate are managed by its members, subsection (5) applies in relation to the acts and defaults of a member in connection with the member's functions of management as it applies to an officer of the body corporate. (7) In this section “officer”, in relation to a body corporate, means— (a) any director, secretary or other similar officer of the body corporate, or (b) any person who was purporting to act in any such capacity.

(3) In section 10E (third party access to upstream petroleum pipelines), in subsection (1) after “pipe-lines” insert “ (but does not apply to a pipe-line if and to the extent that section 14 of the Petroleum Act 1998 applies in relation to it) ”.

(4) In section 10F (supplemental provision relating to third party access), after subsection (4) add—

(5) Before giving a notice under section 10G(1), the Secretary of State must give the person who applied for that notice— (a) particulars of the modifications which it is proposed to specify in the notice, and (b) an opportunity to make applications under section 10E in respect of the pipeline; and section 10E and subsections (1) to (4) of this section have effect for this purpose as if references to a pipe-line were references to the pipe-line as it would be with those modifications.

Third party access to oil processing facilities

80

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

Directions under section 80: supplemental

81

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

Meaning of “associate”

82

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

Part 5 — Miscellaneous

Duties of Gas and Electricity Markets Authority

Duties of the Gas and Electricity Markets Authority

83

(1) In section 4AA of the Gas Act 1986 (c. 44) (duties of the Gas and Electricity Markets Authority)—

(a) in subsection (1) after “interests of” insert “ existing and future ”,

(b) after subsection (2)(b) insert

; and (c) the need to contribute to the achievement of sustainable development.

(d) in subsection (6) for “this section “consumers” includes” substitute “ subsections (3) and (4) references to consumers include ”.

(2) In section 3A of the Electricity Act 1989 (c. 29) (duties of the Gas and Electricity Markets Authority)—

(a) in subsection (1) after “interests of” insert “ existing and future ”,

(b) after subsection (2)(b) insert

; and (c) the need to contribute to the achievement of sustainable development.

(d) in subsection (6) for “this section “consumers” includes” substitute “ subsections (3) and (4) references to consumers include ”.

Transmission systems

Power to amend licence conditions etc: transmission systems

84

(1) The Secretary of State may modify—

(a) a condition of a particular licence under section 6(1)(a) to (d) of the Electricity Act 1989 (generation, transmission, distribution and supply licences);

(b) the standard conditions incorporated in licences under those provisions by virtue of section 8A of that Act;

(c) a document maintained in accordance with the conditions of licences under section 6(1)(a) to (d) of that Act, or an agreement that gives effect to a document so maintained.

(2) The Secretary of State may exercise the power conferred by subsection (1) for the purpose only of facilitating—

(a) access to a transmission system in Great Britain or offshore waters;

(b) efficient use of a transmission system in Great Britain or offshore waters.

(3) The power conferred by subsection (1)—

(a) may be exercised to make different provision in relation to different classes of customer;

(b) may be exercised generally, only in relation to specified cases or subject to exceptions (including provision for a case to be excepted only so long as specified conditions are satisfied);

(d) includes a power to make incidental, supplementary, consequential or transitional modifications.

(4) The power conferred by subsection (1) may not be exercised after the end of the period of 2 years beginning with the day on which that subsection comes into force.

(5) Provision included in a licence by virtue of that power—

(a) need not relate to the activities authorised by the licence;

(b) may do any of the things authorised by section 7(2) to (4) of the Electricity Act 1989 (c. 29) (which apply to the Gas and Electricity Markets Authority's power with respect to licence conditions under section 7(1)(a)).

(6) In this section—

“offshore waters” means—waters in or adjacent to Great Britain which are between the low water mark and the seaward limits of the territorial sea, andwaters within an area designated under section 1(7) of the Continental Shelf Act 1964 (c. 29);

“transmission system” has the meaning given by section 4(4) of the Electricity Act 1989.

Section 84: procedure

85

(1) Before making a modification, the Secretary of State must consult—

(a) the holder of any licence being modified,

(b) the Gas and Electricity Markets Authority, and

(2) Subsection (1) may be satisfied by consultation before, as well as by consultation after, the passing of this Act.

(3) The Secretary of State must publish details of any modifications as soon as reasonably practicable after they are made.

(4) In this section “modification” means a modification under section 84.

Section 84: supplemental

86

(1) A modification under section 84 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 Electricity Act 1989 (c. 29).

(2) Where the Secretary of State makes modifications under section 84(1)(b) of the standard conditions of a licence of any type, the Gas and Electricity Markets Authority must—

(a) make the same modification of those standard conditions for the purposes of their incorporation in licences of that type granted after that time, and

(b) publish the modification.

(3) The Secretary of State may by order make such modifications of provisions made by or under an Act or an Act of the Scottish Parliament (whenever passed or made) as the Secretary of State considers appropriate in consequence of provision made under section 84.

Energy reports

87

(1) In section 1 of the Sustainable Energy Act 2003 (c. 30) (annual reports on progress towards sustainable energy aims)—

(a) in subsection (1) for “in each calendar year, beginning with 2004,” substitute “ , for each reporting period, ”,

(b) in subsection (1A) omit paragraphs (a), (b) and (c),

(d) for subsections (2) and (3) substitute—

(2) “Reporting period”, for the purposes of subsections (1) to (1AA), means— (a) the period beginning with 24 February 2008 and ending with 31 December 2008, and (b) each successive calendar year. (3) A sustainable energy report must be published during the period beginning with 1 January and ending with 31 October following the reporting period to which it relates (“the publication period”).

, and

(e) after subsection (4) insert—

(4A) A report or part of a report published under this section must specify the period to which it relates.

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

Smart meters : modification of licence conditions etc by Secretary of State

Power to amend licence conditions etc: smart meters

88

(1) The Secretary of State may modify—

(a) a condition of a particular licence under section 6(1)(b), (c) , (d) or (da) of the Electricity Act 1989 (c. 29) (transmission, distribution, supply and electricity system operator licence);

(b) the standard conditions incorporated in licences under those provisions by virtue of section 8A of that Act;

(c) a condition of a particular licence under section 7 or 7A of the Gas Act 1986 (c. 44) (transporter, supply and shipping licences);

(d) the standard conditions incorporated in licences under those provisions by virtue of section 8 of that Act;

(da) a condition of a particular licence under section 6(1)(f) of the Electricity Act 1989, or under section 7AB of the Gas Act 1986 (smart meter communication licences);

(e) a document maintained in accordance with the conditions of licences under section 6(1) of the Electricity Act 1989 or section 7 , 7A , 7AA or 7AB of the Gas Act 1986, or an agreement that gives effect to a document so maintained.

(2) The Secretary of State may exercise the power in subsection (1) for the purpose only of—

(a) requiring the holder of a licence to provide or install, or facilitate the provision, installation or operation of, meters of a particular kind, or

(b) requiring the holder of a licence to make arrangements related to the matters mentioned in paragraph (a).

(3) Modifications made by virtue of subsection (1) may include—

(a) technical specifications for meters (including specifications in respect of matters relevant to the ability to obtain remote access to meters);

(b) a prohibition on the supply of gas or electricity through a meter other than a meter which complies with a technical specification under paragraph (a);

(c) provision about the installation of meters which comply with a technical specification under paragraph (a) (including provision about the replacement of existing meters);

(d) provision about electricity generated by a customer;

(e) provision about the circumstances in which any pre-payment facilities of a meter may be utilised;

(f) provision about the use of a meter remotely to disconnect a customer's premises;

(g) provision about the protection of consumers;

(h) provision about access to, and the use of, an electricity distribution system or part of an electricity distribution system for communication in connection with a meter;

(i) provision about access to information from meters (including provision enabling a customer, or a person acting on a customer's behalf, to have access to information about the customer's consumption of gas or electricity);

(j) provision about communication of information by or to meters (including provision about its onward communication) and about the use of such information;

(ja) provision requiring the holder of a licence to supply information to the Secretary of State or the Authority (or both) so as to enable them to assess any matter relating to the provision, installation, or operation of meters;

(k) provision requiring the holder of the licence to enter (or refrain from entering) into an agreement of a specified kind, or with a specified person;

(l) provision specifying, or enabling the determination of, a date from which a modification is to take effect.

(4) The power conferred by subsection (1)—

(a) may be exercised to make different provision in relation to different areas or different classes of customer;

(b) may be exercised generally, only in relation to specified cases or subject to exceptions (including provision for a case to be excepted only so long as specified conditions are satisfied);

(d) includes a power to make incidental, supplementary, consequential or transitional modifications.

(5) The power conferred by subsection (1) may not be exercised after the end of 1 November 2028.

(6) Provision included in a licence by virtue of that power—

(a) need not relate to the activities authorised by the licence;

(b) in the case of a licence under section 7, 7A , 7AA or 7AB of the Gas Act 1986 (c. 44), may do any of the things authorised by section 7B(5) of that Act (which apply to the Gas and Electricity Markets Authority's power with respect to licence conditions under section 7B(4)(a));

(c) in the case of a licence under section 6(1)(b), (c), (d) , (da) or (f) of the Electricity Act 1989 (c. 29), may do any of the things authorised by section 7(2) to (4) of that Act (which apply to that Authority's power with respect to licence conditions under section 7(1)(a)).

(7) In this section a reference to a meter includes a reference to a visual display unit, or any other device, associated with or ancillary to a meter.

Power to amend licence conditions etc: procedure

89

(1) Before making a modification, the Secretary of State must consult—

(a) the holder of any licence being modified,

(b) the Gas and Electricity Markets Authority, and

(2) Subsection (1) may be satisfied by consultation before, as well as by consultation after, the passing of this Act.

(3) Before making modifications, the Secretary of State must lay a draft of the modifications before Parliament.

(4) If, within the 40-day period, either House of Parliament resolves not to approve the draft, the Secretary of State may not take any further steps in relation to the proposed modifications.

(5) If no such resolution is made within that period, the Secretary of State may make the modifications in the form of the draft.

(6) Subsection (4) does not prevent a new draft of proposed modifications being laid before Parliament.

(7) The Secretary of State must publish details of any modifications as soon as reasonably practicable after they are made.

(8) In this section “40-day period”, in relation to a draft of proposed modifications, means the period of 40 days beginning with the day on which the draft is laid before Parliament (or, if it is not laid before each House of Parliament on the same day, the later of the 2 days on which it is laid).

(9) For the purposes of calculating the 40-day period, no account is to be taken of any period during which Parliament is dissolved or prorogued or during which both Houses are adjourned for more than 4 days.

(10) In this section “modification” means a modification under section 88.

Smart meters: supplemental

90

(1) A modification under section 88 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 Gas Act 1986 (c. 44) or Part 1 of the Electricity Act 1989 (c. 29).

(2) Where the Secretary of State makes modifications under section 88(1)(b) or (d) of the standard conditions of a licence of any type, the Gas and Electricity Markets Authority must—

(a) make the same modification of those standard conditions for the purposes of their incorporation in licences of that type granted after that time, and

(b) publish the modification.

(3) The Secretary of State may by order make such modifications of provision made by or under an Act or an Act of the Scottish Parliament (whenever passed or made) as the Secretary of State considers appropriate in consequence of provision made under section 88.

Licensing of activities relating to smart meters

91

Schedule 4 contains amendments to the Gas Act 1986 and the Electricity Act 1989.

Gas meters

92

(1) The functions of the Gas and Electricity Markets Authority (“the Authority”) under gas meter legislation are transferred to the Secretary of State.

(2) References in gas meter legislation to the Authority (including references in that legislation which, by virtue of section 3(2) of the Utilities Act 2000 (c. 27), are treated as references to the Authority) are to be treated, so far as necessary for the purposes or in consequence of the transfer, as if they were references to the Secretary of State.

(3) Regulations made, or treated as made, by the Authority under section 17 of the Gas Act 1986 (gas meter testing and stamping) and in force immediately before commencement have effect on and after commencement as if they had been made by the Secretary of State.

(4) Anything else done by the Authority under gas meter legislation which has effect immediately before commencement has effect on and after commencement as if it had been done by the Secretary of State.

(5) In this section—

“commencement” means the day on which this section comes into force;

“gas meter legislation” means—section 17 of the Gas Act 1986 (c. 44), andgas meter regulations;

“gas meter regulations” means—the Measuring Instruments (EEC Requirements) Regulations 1988 (S.I. 1988/186);the Measuring Instruments (EEC Requirements) (Gas Volume Meters) Regulations 1988 (S.I. 1988/296);the Measuring Instruments (Non-Prescribed Instruments) Regulations 2006 (S.I. 2006/1270);the Measuring Instruments (Gas Meters) Regulations 2006 (S.I. 2006/2647);any regulations made, or treated as made, under section 17 of the Gas Act 1986.

Section 92: consequential amendments

93

(1) Section 17 of the Gas Act 1986 is amended as follows.

(2) In subsection (2) for the words “a member of the Director's staff” (which, by virtue of section 3(2) of the Utilities Act 2000 (c. 27), are treated as a reference to a member of the staff of the Gas and Electricity Markets Authority) substitute “ employed in the civil service of the State ”.

(3) In subsections (7), (8) and (10) for the words “members of the Director's staff” (which, by virtue of section 3(2) of the Utilities Act 2000, are treated as references to members of the Authority's staff) substitute “ employed in the civil service of the State ”.

(4) After subsection (7) insert—

(7A) The Secretary of State may pay, out of money provided by Parliament, to meter examiners who are not employed in the civil service of the State or to any employer of such examiners— (a) sums in connection with the performance by such examiners of functions conferred by or under this section or gas meter regulations (within the meaning of section 92 of the Energy Act 2008), and (b) sums in respect of any pension payable to or in respect of such examiners.

(5) In subsection (9) omit “with the consent of the Secretary of State”.

Power to amend licence conditions: gas

94

(1) The Secretary of State may modify—

(a) the conditions of a particular licence under section 7 of the Gas Act 1986;

(b) the standard conditions incorporated in licences under that section by virtue of section 8 of that Act.

(2) The Secretary of State may exercise the power in subsection (1) for the purpose only of enabling the Gas and Electricity Markets Authority (“the Authority”) to recover and pay into the Consolidated Fund amounts in respect of—

(a) payments made by the Secretary of State by virtue of section 17(7) or (7A) of the Gas Act 1986 (c. 44);

(b) other costs incurred by the Secretary of State in performing a function conferred by section 17 of the Gas Act 1986 or by gas meter regulations (within the meaning of section 92).

(3) The power in subsection (1) includes a power to make incidental, consequential or transitional modifications.

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

(a) the holder of any licence being modified,

(b) the Authority, and

(5) Subsection (4) may be satisfied by consultation before, as well as by consultation after, the time when this section comes into force.

(6) The Secretary of State must publish modifications under this section.

(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 Gas Act 1986.

(8) Where the Secretary of State modifies the standard conditions under subsection (1)(b), the Authority must—

(a) make the same modifications of those standard conditions for the purposes of their incorporation in licences granted after that time, and

(b) publish the modifications.

(9) The power under subsection (1) may not be exercised after the end of the period of 6 months beginning with the day on which that subsection comes into force.

Electricity meters

95

(1) The functions of the Gas and Electricity Markets Authority (“the Authority”) under electricity meter legislation are transferred to the Secretary of State.

(2) References in electricity meter legislation to the Authority (including references in that legislation which, by virtue of section 3(2) of the Utilities Act 2000 (c. 27), are treated as references to the Authority) are to be treated, so far as necessary for the purposes or in consequence of the transfer, as if they were references to the Secretary of State.

(3) Regulations made, or treated as made, by the Authority under Schedule 7 (other than paragraph 12 of that Schedule) to the Electricity Act 1989 (c. 29) (electricity meters) and in force immediately before commencement have effect on and after commencement as if they had been made by the Secretary of State.

(4) Anything else done by the Authority under electricity meter legislation which has effect immediately before commencement is treated on and after commencement as if it had been done by the Secretary of State.

(5) In this section—

“commencement” means the day on which this section comes into force;

“electricity meter legislation” means—Schedule 7 (other than paragraph 12 of that Schedule) to the Electricity Act 1989 (c. 29), andelectricity meter regulations;

“electricity meter regulations” means—the Measuring Instruments (EC Requirements) (Electrical Energy Meters) Regulations 1995 (S.I. 1995/2607);the Electromagnetic Compatibility Regulations 2006 (S.I. 2006/3418);the Measuring Instruments (Active Electrical Energy Meters) Regulations 2006 (S.I. 2006/1679);any regulations made under Schedule 7 (other than paragraph 12 of that Schedule) to the Electricity Act 1989.

Section 95: consequential amendments

96

(1) The Electricity Act 1989 is amended as follows.

(2) In section 106 (regulations and orders), in subsection (1) after “conferred by” insert “ section 23, ”.

(3) In paragraph 1 of Schedule 7 (consumption to be monitored by appropriate meters)—

(a) for sub-paragraph (7) substitute—

(7) In relation to a dispute arising under this paragraph between an electricity supplier and a customer, section 23 of this Act applies with the substitution, for references to the Authority (and references treated as references to the Authority) of references to the Secretary of State.

, and

(b) in sub-paragraphs (8) and (9), after “section 23 of this Act” insert “ (as modified by sub-paragraph (7)) ”.

(4) In paragraph 4 of that Schedule (appointment of meter examiners)—

(a) in sub-paragraph (2) after “examiners” insert “ employed in the civil service of the State ”,

(b) after that sub-paragraph insert—

(2A) The Secretary of State may pay, out of money provided by Parliament, to meter examiners who are not employed in the civil service of the State or to any employer of such examiners— (a) sums in connection with the performance by such examiners of functions conferred by or under this Schedule or electricity meter regulations (within the meaning of section 95 of the Energy Act 2008), and (b) sums in respect of any pension payable to or in respect of such examiners.

, and

(5) In paragraph 5 of that Schedule (certification of meters), in sub-paragraph (4)(b) after “paid” (in the first place) insert “ to meter examiners employed in the civil service of the State ”.

(6) In paragraph 6 of that Schedule (apparatus for testing etc of meters), in sub-paragraph (2) for “their functions under” substitute “ functions conferred by or under ”.

(7) In paragraph 7 of that Schedule (testing etc of meters)—

(a) in sub-paragraph (1) after “examiner” insert “ employed in the civil service of the State ”, and

(b) in sub-paragraph (3) after “paid” (in the first place) insert “ to meter examiners employed in the civil service of the State ”.

(8) For paragraph 10 of that Schedule (meters to be kept in proper order), for sub-paragraph (2A) substitute—

(2A) In relation to a dispute arising under this paragraph between an electricity supplier and a customer, section 23 of this Act applies, with the substitution for references to the Authority (and references treated as references to the Authority) of references to the Secretary of State.

(9) In paragraph 13 of that Schedule (interpretation) for the definition of “regulations” substitute—

“regulations” means— (a) in paragraph 12, regulations made by the Authority with the consent of the Secretary of State, and (b) in every other case, regulations made by the Secretary of State.

Power to amend licence conditions: electricity

97

(1) The Secretary of State may modify—

(a) a condition of a particular licence under section 6(1)(b) or (c) of the Electricity Act 1989 (c. 29) (transmission and distribution licences);

(b) the standard conditions incorporated in licences under those provisions by virtue of section 8A of that Act.

(2) The Secretary of State may exercise the power in subsection (1) for the purpose only of enabling the Gas and Electricity Markets Authority (“the Authority”) to recover and pay into the Consolidated Fund amounts in respect of—

(a) payments made by the Secretary of State by virtue of paragraph 4(2) or (2A) of Schedule 7 to the Electricity Act 1989 (payments relating to meter examiners);

(b) other costs incurred by the Secretary of State in performing a function conferred by Schedule 7 to the Electricity Act 1989 or by electricity meter regulations (within the meaning of section 95).

(3) The power in subsection (1) includes a power to make incidental, consequential or transitional modifications.

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

(a) the holder of any licence being modified,

(b) the Authority, and

(5) Subsection (4) may be satisfied by consultation before, as well as by consultation after, the time when this section comes into force.

(6) The Secretary of State must publish modifications under this section.

(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 Electricity Act 1989 (c. 29).

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

(a) make 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.

(9) The power under subsection (1) may not be exercised after the end of the period of 6 months beginning with the day on which that subsection comes into force.

Connection offer expenses

Costs connected with making an offer of connection

98

(1) Section 16A of the Electricity Act 1989 (procedure for requiring a connection) is amended as follows.

(2) After subsection (4) insert—

(4A) The Secretary of State may, after consulting the Authority, make provision by regulations for the purpose of entitling an electricity distributor to require a person requiring a connection in pursuance of section 16(1) to pay connection offer expenses to such extent as is reasonable in all the circumstances. (4B) In this section “connection offer expenses” means expenses which— (a) are of a kind specified by the regulations, and (b) have been reasonably incurred by the electricity distributor. (4C) Regulations under subsection (4A) may specify— (a) circumstances in which an electricity distributor may not require the payment of connection offer expenses by virtue of the regulations; (b) the manner in which expenses reasonably incurred by an electricity distributor are to be calculated for the purposes of subsection (4B)(b).

(3) In subsection (5) for “and any information” to “connection” substitute “ , any information requested under subsection (3) and any amount payable by virtue of subsection (4A) to the distributor by the person requiring the connection, the distributor shall give to that person ”.

Electricity safety

99

(1) Part 1 of the Health and Safety at Work etc. Act 1974 (c. 37) has effect as if section 29 of the Electricity Act 1989 (c. 29) (security of supply, safety and inspections), and regulations made under that section, in so far as they relate to the protection of the public from dangers relating to electricity and to eliminating or reducing the risks of personal injury, were existing statutory provisions within the meaning of that Part.

(2) Without prejudice to the generality of section 15(1) of the 1974 Act (health and safety regulations), regulations under that section may—

(a) repeal or modify a provision mentioned in subsection (1),

(b) make any provision which, but for a repeal or modification under paragraph (a), could be made by regulations made under section 29 of the Electricity Act 1989.

Renewable heat incentives

100

(1) The Secretary of State may make regulations—

(a) establishing a scheme to facilitate and encourage renewable generation of heat, and

(b) about the administration and financing of the scheme.

(1A) Regulations under this section may confer any function on any person.

(1B) Regulations under this section may provide for a function conferred on a person to be exercisable on behalf of another person.

(2) Regulations under this section may, in particular—

(a) make provision giving any of the following persons entitlements to payments (“RHI payments”) in specified circumstances—

(i) the owner of plant used or intended to be used for the renewable generation of heat, whether or not the owner is also operating or intending to operate the plant;

(ii) a producer of biogas or biomethane;

(iii) a producer of biofuel for generating heat;

(b) make provision about the calculation of RHI payments;

(ba) make provision about the circumstances in which, and descriptions of persons to whom, the whole or a part of an entitlement to an RHI payment may be assigned (whether the person has the entitlement by virtue of regulations under paragraph (a) or regulations under this paragraph);

(bb) authorise or require the Secretary of State, the Authority, designated fossil fuel suppliers, or any person with any other administration function, to make an RHI payment—

(i) to the person who is entitled to the payment by virtue of regulations under paragraph (a), or

(ii) where that entitlement has been wholly or partly assigned in accordance with regulations under this section, to the person or persons for the time being enjoying the entitlement or any part of it;

(d) authorise or require a person to provide specified information;

(e) require the payment of a levy by designated fossil fuel suppliers ...;

(f) make provision about the calculation of the levy;

(g) make provision for payments to fossil fuel suppliers in specified circumstances;

(h) make provision about the enforcement of obligations imposed by or by virtue of the regulations (which may include a power ... to impose financial penalties);

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

(j) authorise the Secretary of State to make payments to a person in respect of the exercise by the person of functions under regulations under this section;

(k) make provision about the resolution of disputes relating to the exercise of functions under regulations under this section, including provision about arbitration or appeals (which may, in particular, provide for the person conducting an arbitration or determining an appeal to order the payment of costs or compensation).

(3) In this section—

“Authority” means the Gas and Electricity Markets Authority;

“biofuel” means liquid or gaseous fuel which is produced wholly from biomass;

“biogas” means gas produced by the anaerobic or thermal conversion of biomass;

“biomass” means material, other than fossil fuel or peat, which is, or is derived directly or indirectly from, plant matter, animal matter, fungi or algae;

“biomethane” means biogas which is suitable for conveyance through pipes to premises in accordance with a licence under section 7 of the Gas Act 1986 (c. 44) (gas transporter licences);

“designated fossil fuel suppliers” means—if the regulations so provide, a specified class of fossil fuel suppliers, andin any other case, all fossil fuel suppliers;

“fossil fuel” means—coal;lignite;natural gas (within the meaning of the Energy Act 1976 (c. 76));crude liquid petroleum;petroleum products (within the meaning of that Act);any substance produced directly or indirectly from a substance mentioned in paragraphs (a) to (e);

“fossil fuel supplier” means a person who supplies fossil fuel to consumers for the purpose of generating heat;

“ other administration function ” means a function relating to the administration of a scheme established under this section, other than a function conferred by regulations under subsection (2)(bb);

“owner”, in relation to any plant which is the subject of a hire purchase agreement, a conditional sale agreement or any agreement of a similar nature, means the person in possession of the plant under that agreement;

“plant” includes any equipment, apparatus or appliance;

“renewable generation of heat” means the generation of heat by means of a source of energy or technology mentioned in subsection (4).

(4) The sources of energy and technologies are—

(a) biomass;

(b) biofuels;

(d) water (including waves and tides);

(e) solar power;

(f) geothermal sources;

(g) heat from air, water or the ground;

(h) combined heat and power systems (but only if the system's source of energy is a renewable source within the meaning given by section 32M of the Electricity Act 1989 (c. 29)).

(i) biogas.

(5) Regulations may—

(a) modify the list of sources of energy and technologies in subsection (4);

(b) modify the definition of “biogas” or “biomass” in subsection (3).

(6) Regulations may make provision, for the purposes of subsection (2)(a)(iii) and the definition of “fossil fuel supplier”, specifying that particular activities do or do not constitute generating heat.

(7) Before making regulations under this section which extend to Scotland, the Secretary of State must—

(a) if the regulations contain any provision which would be within the legislative competence of the Scottish Parliament if it were contained in an Act of that Parliament, obtain the consent of the Scottish Ministers;

(b) in any other case, consult the Scottish Ministers.

Nuclear information

Security of sensitive nuclear information

101

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

Application of general duties

Application of general duties to functions relating to licences

102

(1) Sections 4AA to 4B of the Gas Act 1986 (c. 44) (principal objectives and general duties) apply to the carrying out, as respects the matters mentioned in subsection (2), of functions conferred on the Secretary of State or the Authority by or under—

(a) sections 88 to 90;

(b) section 94.

(2) The matters are—

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

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

(c) documents maintained in accordance with the conditions of such licences, or agreements that give effect to documents so maintained, and

(d) companies holding such licences.

(3) In section 4AA(2)(b) of the Gas Act 1986 (c. 44) (duty to have regard to ability of licence holders to finance obligations) for “or the Utilities Act 2000” substitute “ , the Utilities Act 2000 or Part 5 of the Energy Act 2008 ”.

(4) Sections 3A to 3D of the Electricity Act 1989 (c. 29) (principal objectives and general duties) apply to the carrying out, as respects the matters mentioned in subsection (5), of functions conferred on the Secretary of State or the Authority by or under—

(a) sections 41 to 43;

(b) sections 84 to 86;

(d) section 97.

(5) The matters are—

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

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

(c) documents maintained in accordance with the conditions of such licences, or agreements that give effect to documents so maintained, and

(d) companies holding such licences.

(6) In section 3A(2)(b) of the Electricity Act 1989 (duty to have regard to ability of licence holders to finance obligations) for “or Part 2 or 3 of the Energy Act 2004” substitute “ , Part 2 or 3 of the Energy Act 2004 or Part 2 or 5 of the Energy Act 2008 ”.

(7) In this section—

“the Authority” means the Gas and Electricity Markets Authority;

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

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

Part 6 — General

Offences by bodies corporate etc

103

(1) Where an offence is committed by a body corporate and is proved to have been committed with the consent or connivance of, or to be attributable to neglect on the part of, an officer of the body corporate, that officer (as well as the body corporate) is guilty of the offence and is liable to be proceeded against and dealt with accordingly.

(2) Where the affairs of a body corporate are managed by its members, subsection (1) applies in relation to the acts and defaults of a member in connection with the member's functions of management as it applies to an officer of the body corporate.

(3) Where an offence—

(a) is committed by a Scottish firm, and

(b) is proved to have been committed with the consent or connivance of, or to be attributable to any neglect on the part of, a partner of the firm,

the partner (as well as the firm) is guilty of the offence and liable to be proceeded with and dealt with accordingly.

(4) In this section—

“offence” means an offence under this Act;

“officer”, in relation to a body corporate, means—any director, secretary or other similar officer of the body corporate, orany person who was purporting to act in any such capacity.

Subordinate legislation

104

(1) Orders and regulations made by the Secretary of State , the Scottish Ministers or the Gas and Electricity Markets Authority under this Act are to be made by statutory instrument.

(2) An instrument to which this subsection applies may—

(a) provide for a person to exercise a discretion in dealing with any matter;

(b) include incidental, supplementary and consequential provision;

(d) make provision generally, only in relation to specified cases or subject to exceptions (including provision for a case to be excepted only so long as conditions specified in the instrument are satisfied);

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Energy Act 2008

Continuity of obligations

64

Amendment of Nuclear Installations Act 1965

65

Disposal of hazardous material

66

General

Meaning of “associated”

67

Interpretation

68

Chapter 2 — Offshore renewables installations

Decommissioning notices relating to offshore renewable energy installations

69

Security for decommissioning obligations

70

Provision of information to Secretary of State

71

Chapter 3 — Oil and gas installations

Persons who may be required to submit abandonment programmes

72

Financial resources etc

73

Protection of abandonment funds from creditors

74

Chapter 4 — Wells

Information about decommissioning of wells

75

Part 4 — Provisions relating to oil and gas

Petroleum licences

Transfers without the consent of the Secretary of State

76

Model clauses of petroleum licences

77

Third party access

Third party access to infrastructure

78

Modification of pipelines

79

Third party access to oil processing facilities

80

Directions under section 80: supplemental

81

Meaning of “associate”

82

Part 5 — Miscellaneous

Duties of Gas and Electricity Markets Authority

Duties of the Gas and Electricity Markets Authority

83

Transmission systems

Power to amend licence conditions etc: transmission systems

84

Section 84: procedure

85

Section 84: supplemental

86

Energy reports

Energy reports

87

Smart meters : modification of licence conditions etc by Secretary of State

Power to amend licence conditions etc: smart meters

88

Power to amend licence conditions etc: procedure

89

Smart meters: supplemental

90

Licensing of activities relating to smart meters

91

Gas meters

Gas meters

92

Section 92: consequential amendments

93

Power to amend licence conditions: gas

94

Electricity meters

Electricity meters

95

Section 95: consequential amendments