Legalize / United Kingdom / Public General Act

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

articles Not indexed

Reform history JSON API

(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

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Directions under section 80: supplemental

81

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Meaning of “associate”

82

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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

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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);

(e) make different provision for different cases or circumstances or for different purposes.

(3) Subsection (2) applies to—

(a) an Order in Council under this Act,

(b) an order or regulations made by the Secretary of State or the Scottish Ministers under this Act (other than an order which contains provision made under section 110 (commencement) only) , and

(4) The provision which may be made by virtue of subsection (2)(b) or (c) includes provision modifying any provision made by or under an Act or an Act of the Scottish Parliament (whenever passed or made).

Parliamentary control of subordinate legislation

105

(1) A statutory instrument containing an Order in Council, order or regulations under this Act is subject to annulment in pursuance of a resolution of either House of Parliament.

(2) Subsection (1) does not apply to—

(a) an order which contains, or regulations which contain, (whether alone or together with other provision) provision made under—

(i) section 13 (importation and storage of combustible gas: inspectors),

(ii) section 27 (carbon dioxide storage: inspectors),

(iii) section 41(6) (feed-in tariffs for small-scale electricity generation),

(iv) section 45(6)(a) (power to specify matters as designated technical matters),

(v) section 62(1) (power to apply Chapter 1 of Part 3 to other nuclear installations), or

(va) section 82N (power to make regulations in relation to persons appointed as inspectors etc),

(vb) section 82P (power to extend application of Part 4A),

(vi) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(aa) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(ab) regulations which contain (whether alone or together with other provision) affirmative resolution provision made under section 100 (renewable heat incentives);

(b) an order, regulations or Order in Council which contains (whether alone or together with other provision) provision which, by virtue of section 43(3)(b), 86(3), 90(3), 104(4), 107(2)(a) or 109(3)(a) modifies an Act or an Act of the Scottish Parliament;

(3) No order, regulations or recommendation to make an Order in Council, within subsection (2)(a) , (ab) or (b), may be made unless a draft of the order, regulations or Order in Council has been laid before, and approved by a resolution of, each House of Parliament.

(3A) Provision made under section 100 is affirmative resolution provision if—

(a) the provision is made under any of the powers which always attract the affirmative resolution procedure, or

(b) the provision—

(i) is not made under any of those powers, and

(ii) meets condition A, B, C or D.

(3B) The powers which always attract the affirmative resolution procedure are the powers conferred by—

(a) section 100(2)(c), (e), (f), (g), (h) and (k),

(b) section 100(5), and

(3C) Provision meets condition A if—

(a) it is made under the power conferred by section 100(2)(bb), and

(b) it requires a designated fossil fuel supplier to make a payment under an RHI scheme.

(3D) Provision meets condition B if—

(a) it confers an administration function on a person who is not the Secretary of State or the Authority, and

(b) the time when the provision comes into force will be the first time that an administration function under the RHI scheme concerned is exercisable by a person who is not the Secretary of State or the Authority.

(3E) Provision meets condition C if—

(a) it is made under a power conferred by paragraph (ba) or (bb)(ii) of section 100(2),

(b) it is made in relation to an RHI scheme that was in existence immediately before the coming into force of this subsection, and

(3F) Provision meets condition D if—

(a) it is made under a power conferred by paragraph (a), (b), (ba), (bb), (d) or (j) of section 100(2),

(b) it is made in relation to an RHI scheme that was not in existence immediately before the coming into force of this subsection, and

(3G) In deciding whether provision meets condition B, the following matters must be ignored—

(a) for the purposes of subsection (3D)(a): any provision which confers a payment function on designated fossil fuel suppliers;

(b) for the purposes of subsection (3D)(b): any payment function under the RHI scheme concerned which (before the time when the provision comes into force) is, or has been, exercisable by designated fossil fuel suppliers.

(3H) The fact that provision is to some extent made under a power conferred by section 100(1), (1A) or (1B) does not prevent that provision from being taken (for the purposes of subsections (3A) to (3F)) as being made under any other power conferred by section 100.

(3I) In subsections (3B) to (3H) and this subsection—

“ administration function ” means a function relating to the administration of an RHI scheme;

“ designated fossil fuel suppliers ” has the same meaning as in section 100;

“ payment function ” means a function of making a payment under an RHI scheme (whether the function authorises or requires the making of the payment);

“ RHI scheme ” means a scheme under section 100 to facilitate and encourage renewable generation of heat.

(4) In the case of a statutory instrument containing an order or regulations made by the Scottish Ministers, this section has effect as if—

(a) in subsection (1) the reference to either House of Parliament were a reference to the Scottish Parliament,

(b) in subsection (2)(b) for “107(2)(a)” there were substituted “ 107(3)(a) ”, and

Interpretation

106

In this Act—

“functions” includes powers and duties;

“modify” includes amend, add to, revoke or repeal (and references to “modifications” are to be construed accordingly);

“territorial sea” means the territorial sea adjacent to the United Kingdom.

Minor and consequential amendments

107

(1) Schedule 5 contains minor and consequential amendments.

(2) The Secretary of State may by order make such modifications of—

(a) an Act, or Act of the Scottish Parliament, passed before the end of the session in which this Act was passed, or

(b) an instrument made before the end of that session,

as the Secretary of State considers appropriate in consequence of this Act.

(3) The Scottish Ministers may by order make such modifications of—

(a) an Act, or Act of the Scottish Parliament, passed before the end of the session in which this Act was passed, or

(b) an instrument made before the end of that session,

as the Scottish Ministers consider appropriate in consequence of Chapter 3 of Part 1 of this Act as that Chapter applies in relation to the territorial sea adjacent to Scotland (within the meaning of that Chapter) or in relation to functions of the Scottish Ministers.

Repeals

108

Schedule 6 contains repeals (including repeals of spent provisions).

Transitional provision etc

109

(1) The Secretary of State may by order make any transitional, transitory or saving provision which appears appropriate in consequence of, or otherwise in connection with, this Act.

(2) The Scottish Ministers may by order make any transitional, transitory or saving provision which appears appropriate in consequence of, or otherwise in connection with, Chapter 3 of Part 1 of this Act as that Chapter applies in relation to the territorial sea adjacent to Scotland (within the meaning of that Chapter) or in relation to functions of the Scottish Ministers.

(3) The provision which may be made by virtue of subsection (1) or (2) includes provision modifying any provision made by—

(a) an Act, or Act of the Scottish Parliament, passed before the end of the session in which this Act was passed, or

(b) an instrument made before the end of that session.

(4) Provision made under this section is additional, and without prejudice, to that made by or under any other provision of this Act.

Commencement

110

(1) The following provisions come into force on the day on which this Act is passed—

(a) section 37, so far as is necessary for enabling the exercise on or after that day of any power to make an order that is conferred by virtue of that section, and section 38(1);

(b) sections 88 to 91 (and sections 104 and 105 in so far as those sections apply in relation to orders made under section 90(3)) and Schedule 4;

(d) this section and sections 106, 111, 112 and 113;

(e) paragraph 5 of Schedule 5 (and section 107(1) so far as it relates to that paragraph).

(2) Subject to that, the provisions of this Act come into force on such day as may be appointed by order of the Secretary of State.

(3) An order under this section may—

(a) include incidental, supplementary and consequential provision;

(b) make transitory or transitional provisions or savings;

Financial provisions

111

The following are to be paid out of money provided by Parliament—

(a) any expenditure incurred by the Secretary of State by virtue of this Act;

(b) any expenditure incurred by the Gas and Electricity Markets Authority by virtue of this Act;

Extent

112

(1) Subject to subsections (2) to (5), this Act extends to England and Wales, Scotland and Northern Ireland.

(2) The following provisions extend to England and Wales and Scotland only—

(a) section 38 (renewables obligation: supplemental provision);

(b) sections 41 to 43 (feed-in tariffs for small-scale electricity generation);

(d) sections 84 to 86 (power to amend licence conditions: transmission systems);

(e) sections 88 to 90 (smart meters);

(f) sections 92 to 97 (gas and electricity meters);

(g) section 99 (electricity safety);

(h) section 100 (renewable heat incentives);

(i) section 102 (general duties of Authority and Secretary of State).

(3) Chapter 1 of Part 3 ...(nuclear decommissioning) extends to England and Wales and Northern Ireland only.

(4) Section 40(2) to (4) (the Northern Ireland renewables obligation) extend to Northern Ireland only.

(5) An amendment or repeal contained in this Act has the same extent as the enactment or relevant part of the enactment to which the amendment or repeal relates.

Short title

113

This Act may be cited as the Energy Act 2008.

SCHEDULE 1

Food and Environment Protection Act 1985 (c. 48)

1

The Food and Environment Protection Act 1985 is amended as follows.

2

In section 7A (regulation of deposits made in the sea: exclusion of certain oil and gas activities)—

(a) the existing provision becomes subsection (1), and

(b) after that subsection insert—

(2) Nothing in this Part of this Act applies to anything done in the course of carrying on an activity for which a licence under section 4 or 18 of the Energy Act 2008 is required (gas unloading, storage and recovery, and carbon dioxide storage). (3) For this purpose, activities are to be regarded as activities for which such a licence is required if, by virtue of such a licence, they are activities which may be carried on only with the consent of the Secretary of State or another person. (4) Subsection (2) does not apply in relation to anything done in the course of carrying out an activity for which a licence under section 4 of the Energy Act 2008 is required in, under or over— (a) the territorial sea adjacent to Scotland, Wales or Northern Ireland, or (b) waters in a Gas Importation and Storage Zone which are United Kingdom controlled waters adjacent to Scotland. (5) Subsection (2) does not apply in relation to anything done in, under or over the territorial sea adjacent to Wales or Northern Ireland in the course of carrying on an activity for which a licence under section 18 of the Energy Act 2008 is required.

3

In section 24 (interpretation)—

(a) in subsection (1), after the definition of “Convention State” insert—

“Gas Importation and Storage Zone” has the meaning given by section 1 of the Energy Act 2008;

, and

(b) after subsection (2) insert—

(2A) An order or Order in Council made under or by virtue of section 158(3) or (4) of the Government of Wales Act 2006 (apportionment of sea areas) has effect for the purposes of Part 2 of this Act if, or to the extent that, the order or Order in Council is expressed to apply— (a) by virtue of this subsection, for the purposes of Part 2 of this Act, or (b) if no provision has been made by virtue of paragraph (a), for the general or residual purposes of that Act.

Petroleum Act 1987 (c. 12)

4

(1) Section 21 of the Petroleum Act 1987 (automatic establishment of safety zones) is amended as follows.

(2) In subsection (2)—

(a) after paragraph (a) insert—

(aa) the exploration of any place in, under or over such waters with a view to the storage of gas in such a place; (ab) the conversion of any place in, under or over such waters for the purpose of storing gas;

(b) in paragraph (b), for “in or under the shore or bed of” substitute “ in, under or over ”,

(ba) the unloading of gas at any place in, under or over such waters;

, and

(d) in paragraph (d) for “paragraph (a), (b) or (c)” substitute “ any of paragraphs (a) to (c) ”.

(3) After subsection (7) insert—

(8) In this section “gas” means gas within the meaning of section 2(4) of the Energy Act 2008.

Gas (Northern Ireland) Order 1996 (S.I. 1996/275 (N.I.2))

5

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

Petroleum Act 1998 (c. 17)

6

The Petroleum Act 1998 is amended as follows.

7

In section 11 (application of civil law)—

(a) in subsection (1), after “Order in Council” insert “ , subject to subsection (4A) ”,

(b) in subsection (3), after paragraph (a) insert—

(aa) the exploration of any place in, under or over such waters with a view to the storage of gas in such a place; (ab) the conversion of any place in, under or over waters to which this section applies for the purpose of storing gas;

(d) after that paragraph insert—

(ba) the unloading of gas at any place in, under or over such waters;

(e) in paragraph (d) of that subsection, for “paragraph (a), (b) or (c)” substitute “ any of paragraphs (a) to (c) ”,

(f) after that subsection insert—

(3A) In subsection (3) references (in whatever form) to storing gas include storing gas with a view to its permanent disposal.

(g) after subsection (4) insert—

(4A) An Order in Council may not make provision under subsection (1) in relation to questions arising out of acts or omissions taking place in connection with any activity carried on in, under or over relevant Scottish waters with a view to, or in connection with, the storage of carbon dioxide. (4B) In subsection (4A)— (a) “relevant Scottish waters” means tidal waters, and parts of the sea, in or adjacent to Scotland up to the seaward limits of the territorial sea, and (b) references to the storage of carbon dioxide do not include the use of carbon dioxide for a purpose ancillary to getting petroleum (within the meaning of section 1).

, and

(h) after subsection (8) insert—

(9) In this section “gas” means— (a) gas within the meaning of section 2(4) of the Energy Act 2008, or (b) carbon dioxide.

8

In section 13 (interpretation of Part 2), after the existing provision (which becomes subsection (1)) insert—

(2) An Order in Council under section 126(2) of the Scotland Act 1998 (apportionment of sea areas) has effect for the purposes of this Part if, or to the extent that, the Order is expressed to apply— (a) by virtue of this subsection, for the purposes of this Part, or (b) if no provision has been made by virtue of paragraph (a), for the general or residual purposes of that Act.

9

In section 28 (interpretation of Part 3), in the definition of “gas”—

(a) in paragraph (a), for “or carbon monoxide” substitute “ , carbon monoxide or a substance designated under paragraph (e) of the definition of “gas” in section 2(4) of the Energy Act 2008 ”,

(b) in paragraph (b) for “gases” substitute “ substances ”, and

10

In section 30 (persons who may be required to submit programmes)—

(a) for subsection (5)(a) substitute—

(a) the person has the right— (i) to exploit or explore mineral resources in any area, (ii) to unload, store or recover gas in any area or to convert any natural feature in any area for the purpose of storing gas, or (iii) to explore any area with a view to, or in connection with, the exercise of a right within sub-paragraph (i) or (ii), and

(b) in subsection (6), for paragraph (a) substitute—

(a) the exploitation or exploration of mineral resources in the exercise of the right mentioned in subsection (5)(a); (aa) the unloading, storage or recovery of gas in the exercise of that right; (ab) the conversion, in the exercise of that right, of any natural feature for the purpose of storing gas; (ac) the exploration in exercise of that right with a view to, or in connection with, the exercise of a right within subsection (5)(a)(ii);

, and

11

In section 44 (offshore installations)—

(a) in subsection (3), after paragraph (a) insert—

(aa) the exploration of any place in, under or over relevant waters with a view to the storage of gas in such an place; (ab) the conversion of any place in, under or over relevant waters for the purpose of storing gas;

(b) in paragraph (b) of that subsection, for “in or under the shore or bed of” substitute “ in, under or over ”,

(ba) the unloading of gas at any place in, under or over relevant waters;

(d) in paragraph (d) of that subsection, for “paragraph (a), (b) or (c)” substitute “ any of paragraphs (a) to (c) ”, and

(e) in subsection (5), after “section—” insert—

“gas” means gas within the meaning of section 2(4) of the Energy Act 2008;

12

In section 47A (factors for the Secretary of State to take into account when performing functions under the Petroleum Act 1998)—

(a) in subsection (1), after paragraph (a) insert—

(aa) activities which are authorised by a licence under Chapter 2 or 3 of Part 1 of the Energy Act 2008 (gas importation and storage);

(b) in paragraph (b) of that subsection for “such activities” substitute “ activities within paragraph (a) or (aa) ”, and

(2A) For the purposes of subsection (1)(aa), activities are to be regarded as activities authorised by a licence under Chapter 2 or 3 of Part 1 of the Energy Act 2008 if, by virtue of such a licence, they are activities which may be carried on only with the consent of the Secretary of State or another person.

Energy Act 2004 (c. 20)

13

In section 188 of the Energy Act 2004 (power to impose charges to fund energy functions)—

(a) in subsection (7), after paragraph (l) insert—

(m) Chapter 2 of Part 1 of the Energy Act 2008.

(b) in that subsection, after paragraph (m) (inserted by paragraph (a)) insert—

(n) Chapter 3 of Part 1 of the Energy Act 2008.

(da) any activity for which a licence under Chapter 2 of Part 1 of the Energy Act 2008 is required;

, and

(d) in that subsection, after paragraph (da) (inserted by paragraph (c)) insert—

(db) any activity for which a licence under Chapter 3 of Part 1 of the Energy Act 2008 is required;

(e) after subsection (11) insert—

(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— (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 mentioned in subsection (8)(db), or (ii) any activity mentioned in subsection (8)(h) to the extent that the activity is carried on in connection with an activity mentioned in subsection (8)(db). and as if the reference in subsection (11) to the Consolidated Fund were a reference to the Scottish Consolidated Fund.

SCHEDULE 2

SCHEDULE 3

Part 1 — Petroleum (Production) (Landward Areas) Regulations 1995

1

(1) Schedule 3 to the Petroleum (Production) (Landward Areas) Regulations 1995 (S.I. 1995/1436) is amended as follows.

(2) After clause 8 (consequences of determination or surrender) insert—

(8A) (1) A notice, direction or other document authorised or required (in whatever terms) to be given to the Licensee by virtue of this licence is treated as given to the Licensee if it is given to the person specified by the Licensee under paragraph (2) at the address so specified. (2) The Licensee must supply the Minister with the name and address of a person to whom notices, directions and other documents are to be given. (3) The Licensee must ensure that, where there is a change in the person to whom, or the address to which, documents should be sent in accordance with paragraph (2), the Minister is notified of the change as soon as is reasonably practicable. (4) If the Licensee fails to comply with paragraph (2) the Minister may give the Licensee a notice which— (a) requires the Licensee to comply with paragraph (2) within the period of one month beginning with the date of the notice, and (b) states that, if the Licensee fails to do so, the Licensee will be treated as having supplied under paragraph (2) the name and address specified by the Minister in the notice.

(3) In clause 17 (abandonment and plugging of wells)—

(a) in paragraph (2) for “The” substitute “ Subject to paragraph (5B), the ”,

(b) after paragraph (5) insert—

(5A) The Minister may at any time give the Licensee a notice requiring a well drilled pursuant to this licence to be plugged and abandoned in accordance with paragraph (5) within the period specified in the notice (but this paragraph is subject to paragraphs (5C) and (5D)). (5B) The Licensee shall comply with any notice under paragraph (5A). (5C) A notice under paragraph (5A) may not be given less than one month before the expiry or determination of the Licensee's rights under this licence in relation to the area, or the part of the area, in which the well is drilled. (5D) A notice under paragraph (5A) may be given only in relation to a well from which the Licensee has not extracted any petroleum within the period of one month ending with the day on which the notice is given.

, and

(c) in paragraph (6) after “the Minister” (in the first place) insert “ , or in accordance with a notice under paragraph (5A), ”.

(4) In clause 38(4) (power of revocation: change of control) after “when this licence was granted” insert “ (or, if there has been an assignment or assignation of rights conferred by this licence, when those rights were assigned to the Licensee) ”.

(5) After clause 38 insert—

(38A) (1) This clause applies in a case where two or more persons are the Licensee and— (a) an event mentioned in clause 38(2)(c), (d), (e) or (g) occurs in relation to one of those persons, or (b) the conditions specified in clause 38(3) are satisfied in relation to one of those persons. (2) Where this clause applies, the Minister may exercise the power of revocation in clause 38 to revoke the licence in so far as it applies to the person mentioned in paragraph (1)(a) or (b). (3) If the Minister exercises the power in paragraph (2), the rights granted to the person under this licence cease, but without prejudice to any obligation or liability incurred by the person or imposed under the terms and conditions of this licence. (4) Where this licence is revoked in relation to one person under this clause, it continues to have effect in respect of the other person who constitutes, or persons who together constitute, the Licensee and in relation to whom it is not revoked.

Part 2 — Petroleum (Current Model Clauses) Order 1999

2

This Part of this Schedule contains amendments to the Petroleum (Current Model Clauses) Order 1999 (S.I. 1999/160).

3

(1) Part 2 of Schedule 2 (seaward production licences) is amended as follows.

(2) After clause 7 (area surrendered) insert—

(7A) (1) A notice, direction or other document authorised or required (in whatever terms) to be given to the Licensee by virtue of this licence is treated as given to the Licensee if it is given to the person specified by the Licensee under paragraph (2) at the address so specified. (2) The Licensee must supply the Minister with the name and address of a person to whom notices, directions and other documents are to be given. (3) The Licensee must ensure that, where there is a change in the person to whom, or the address to which, information should be sent in accordance with paragraph (2), the Minister is notified of the change as soon as is reasonably practicable. (4) If the Licensee fails to comply with paragraph (2) the Minister may give the Licensee a notice which— (a) requires the Licensee to comply with paragraph (2) within the period of one month beginning with the date of the notice, and (b) states that, if the Licensee fails to do so, the Licensee will be treated as having supplied under paragraph (2) the name and address specified by the Minister in the notice.

(3) In clause 17 (abandonment and plugging of wells)—

(a) in paragraph (2) for “The” substitute “ Subject to paragraph (5B), the ”,

(b) after paragraph (5) insert—

(5A) The Minister may at any time give the Licensee a notice requiring a well drilled pursuant to this licence to be plugged and abandoned in accordance with paragraph (5) within the period specified in the notice (but this paragraph is subject to paragraphs (5C) and (5D)). (5B) The Licensee shall comply with any notice under paragraph (5A). (5C) A notice under paragraph (5A) may not be given less than one month before the expiry or determination of the Licensee's rights under this licence in relation to the area, or the part of the area, in which the well is drilled. (5D) A notice under paragraph (5A) may be given only in relation to a well from which the Licensee has not extracted any petroleum within the period of one month ending with the day on which the notice is given.

, and

(c) in paragraph (6) after “the Minister” (in the first place) insert “ , or in accordance with a notice under paragraph (5A), ”.

(4) In clause 39(4) (power of revocation: change of control) after “when this licence was granted” insert “ (or, if there has been an assignment or assignation of rights conferred by this licence, when those rights were assigned to the Licensee) ”.

(5) After clause 39 insert—

(39A) (1) This clause applies in a case where two or more persons are the Licensee and— (a) an event mentioned in clause 39(2)(c), (d), (e) or (g) occurs in relation to one of those persons, or (b) the conditions specified in clause 39(3) are satisfied in relation to one of those persons. (2) Where this clause applies, the Minister may exercise the power of revocation in clause 39 to revoke the licence in so far as it applies to the person mentioned in paragraph (1)(a) or (b). (3) If the Minister exercises the power in paragraph (2), the rights granted to the person under this licence cease, but without prejudice to any obligation or liability incurred by the person or imposed under the terms and conditions of this licence. (4) Where this licence is revoked in relation to one person under this clause, it continues to have effect in respect of the other person who constitutes, or persons who together constitute, the Licensee and in relation to whom it is not revoked.

4

(1) Part 2 of Schedule 3 (landward production licences) is amended as follows.

(2) After clause 7 (areas surrendered) insert—

(7A) (1) A notice, direction or other document authorised or required (in whatever terms) to be given to the Licensee by virtue of this licence is treated as given to the Licensee if it is given to the person specified by the Licensee under paragraph (2) at the address so specified. (2) The Licensee must supply the Minister with the name and address of a person to whom notices, directions and other documents are to be given. (3) The Licensee must ensure that, where there is a change in the person to whom, or the address to which, information should be sent in accordance with paragraph (2), the Minister is notified of the change as soon as is reasonably practicable. (4) If the Licensee fails to comply with paragraph (2) the Minister may give the Licensee a notice which— (a) requires the Licensee to comply with paragraph (2) within the period of one month beginning with the date of the notice, and (b) states that, if the Licensee fails to do so, the Licensee will be treated as having supplied under paragraph (2) the name and address specified by the Minister in the notice.

(3) In clause 17 (abandonment and plugging of wells)—

(a) in paragraph (2) for “The” substitute “ Subject to paragraph (5B), the ”,

(b) after paragraph (5) insert—

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