Legalize / United Kingdom / Public General Act

Energy Act 2023

Type Public General Act

Publication 2023-10-26

Last updated 2026-04-06

State In force

Department Statute Law Database

Source legislation.gov.uk

articles Not indexed

Reform history JSON API

“relevant heating appliance” has the meaning given by section 143 (3);

“scheme participant” has the meaning given by section 144 (2);

“scheme regulations” has the meaning given by section 143 (6).

Chapter 2 — Hydrogen grid conversion trials

Modifications of the gas code

153

(1) For the purposes of this section, “hydrogen grid conversion trial” means a scheme designated by the Secretary of State that—

(a) relates to a particular place or area (the “trial location”),

(b) is designed to gather evidence for the purpose of enabling assessments to be made about the feasibility, costs and benefits of using hydrogen for heating or cooking,

(c) requires the network for supplying gas to the trial location to be modified so as to enable the supply of hydrogen, and

(d) is intended to have effect for a definite period.

(2) Schedule 2B to the Gas Act 1986 (the gas code) applies in relation to a hydrogen grid conversion trial—

(a) as if references to a gas transporter included a person (other than a gas transporter) who is conducting the trial, and

(b) as if it were modified in accordance with subsections (3) to (5).

(3) Paragraph 16 (alterations etc of burners on change of calorific value) applies as if—

(a) in sub-paragraph (1), the words “at a rate not exceeding 75,000 therms a year” were omitted, and

(b) in sub-paragraph (2), the steps required to be taken in respect of premises in the trial location also included any works required in respect of the premises (other than works already mentioned in sub-paragraph (2)) for the purposes or in consequence of the trial.

(4) Paragraph 23 (entry of premises during supply) applies as if the power conferred by sub-paragraph (1)(a) included power to enter premises in the trial location for the purpose of inspecting anything on the premises, or carrying out any tests on the premises, in preparation for or otherwise in connection with the trial.

(5) Paragraph 24 (entry of premises to discontinue supply) applies as if the power conferred by sub-paragraph (2) were exercisable for the purposes of the trial—

(a) in relation to any premises in the trial location, and

(b) notwithstanding sub-paragraph (1).

(6) For the purposes of the application of the Rights of Entry (Gas and Electricity Boards) Act 1954 in relation to a relevant power of entry (see paragraph 28(5) of Schedule 2B to the Gas Act 1986), the reference in section 1(2) of the 1954 Act to a gas operator includes a reference to a person (other than a gas transporter) who is conducting a hydrogen grid conversion trial.

(7) In subsection (6), “relevant power of entry” means a power of entry conferred by Schedule 2B to the Gas Act 1986, as it applies by virtue of this section in relation to a hydrogen grid conversion trial.

Regulations for protection of consumers

154

(1) The Secretary of State may by regulations make provision—

(a) requiring a gas transporter to take specified steps to secure that consumers in a trial location are properly informed about a hydrogen grid conversion trial being conducted in the trial location;

(b) requiring a gas transporter to take specified steps to secure that consumers are given adequate warning of the need for their premises to be disconnected for the purposes of a hydrogen grid conversion trial;

(2) Regulations under subsection (1) may confer functions on gas transporters in connection with the discharge of requirements imposed by the regulations.

(3) The provision that may be made by virtue of subsection (1)(c) includes provision for the imposition of civil penalties in respect of a failure to comply with a requirement imposed by the regulations (but does not include provision for the creation of a criminal offence).

(4) The Secretary of State may by regulations make provision designed to secure protection for consumers and other people who are affected, or likely to be affected, by a hydrogen grid conversion trial.

(5) The provision that may be made by regulations under subsection (4) includes, for example, provision—

(a) about the making of complaints about the exercise by a gas transporter of a power conferred by a relevant statutory provision;

(b) about the award of redress in specified circumstances;

(d) for securing that consumers and others are not required to incur expenditure, or are not otherwise financially disadvantaged, as a result of a hydrogen grid conversion trial;

(e) for securing fair treatment of consumers and others before, during and after a hydrogen grid conversion trial;

(f) about the quality of products provided to consumers and others and the quality of works carried out on premises owned by consumers and others;

(g) about the enforcement of requirements imposed by the regulations on gas transporters or other persons.

(6) The provision that may be made by virtue of subsection (5)(g) includes provision for the imposition of civil penalties in respect of a failure to comply with a requirement imposed by the regulations (but does not include provision for the creation of a criminal offence).

(7) Where regulations under this section make provision for a civil penalty, they must also include provision for a right of appeal to a court or tribunal against the imposition of the penalty.

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

(9) In this section—

“consumer” and “disconnected” have the same meaning as in Schedule 2B to the Gas Act 1986 (see paragraph 1(1) of that Schedule);

“gas transporter” means— a gas transporter within the meaning of Part 1 of the Gas Act 1986 (see section 7 of that Act), or any other person who— is conducting a hydrogen grid conversion trial, and does not require a licence under section 7 of the Gas Act 1986 as a result of an exemption under section 6A of that Act;

“hydrogen grid conversion trial” and “trial location” have the same meaning as in section 153;

“specified” means specified by regulations.

Chapter 3 — Miscellaneous

Hydrogen

Power to modify Gas Act 1986 in relation to hydrogen

155

(1) The Secretary of State may by regulations provide for any provision of the Gas Act 1986—

(a) not to apply, or

(b) to apply with modifications specified in the regulations,

in relation to the production, transportation, storage or use of hydrogen.

(2) The power under subsection (1) may be exercised by amending the Gas Act 1986.

(3) The power under subsection (1) may be exercised only for the purpose of facilitating or promoting the production, transportation, storage or use of hydrogen.

(4) Before exercising the power under subsection (1), the Secretary of State must consult—

(a) the GEMA, and

(b) such other persons as the Secretary of State considers appropriate.

(5) Regulations under subsection (1) are subject to the affirmative procedure.

Fusion energy

Fusion energy facilities: nuclear site licence not required

156

(1) Section 1 of the Nuclear Installations Act 1965 (restriction of certain nuclear installations to licensed sites) is amended as follows.

(2) After subsection (2) insert—

(2A) Subsection (1) does not apply to a fusion energy facility. (2B) In subsection (2A), “fusion energy facility” means a site that is— (a) used for the purpose of installing or operating any plant designed or adapted for the production of electrical energy or heat by fusion, and (b) not also used for the purpose of installing or operating a nuclear reactor.

Renewable and sustainable fuel

Treatment of recycled carbon fuel and nuclear-derived fuel as renewable transport fuel

157

After section 131C of the Energy Act 2004 insert—

(131D) (1) An RTF order may— (a) designate as recycled carbon fuel a description of liquid or gaseous fuel which is produced wholly from waste derived from a fossil source of energy; (b) designate as nuclear-derived fuel a description of liquid or gaseous fuel which is produced wholly using, or by a process powered wholly by, nuclear fuel. (2) Where a designation under subsection (1) is in force, the recycled carbon fuel or nuclear-derived fuel is to be treated for the purposes of this Chapter and any RTF order as renewable transport fuel.

Revenue certainty scheme for sustainable aviation fuel producers: consultation and report

158

(1) The Secretary of State must carry out a public consultation on the options for designing and implementing a sustainable aviation fuel revenue certainty scheme.

(2) A “sustainable aviation fuel revenue certainty scheme” is a scheme whose purpose is to give producers of sustainable aviation fuel greater certainty than they otherwise would have about the revenue that they will earn from sustainable aviation fuel that they produce.

(3) The Secretary of State must open the consultation within the period of 6 months beginning with the day on which this Act is passed.

(4) The Secretary of State must bring the consultation to the attention of, in particular, such of each of the following as the Secretary of State considers appropriate—

(a) producers of sustainable aviation fuel;

(b) suppliers of sustainable aviation fuel;

(5) The Secretary of State must, within the period of 18 months beginning with the day on which this Act is passed, lay before Parliament a report on progress made towards the development of a sustainable aviation fuel revenue certainty scheme.

(6) In this section, “sustainable aviation fuel” means aviation turbine fuel whose use (as compared with the use of other aviation turbine fuel) will, in the opinion of the Secretary of State, contribute to a reduction in emissions of greenhouse gases; and for this purpose—

“aviation turbine fuel” has the meaning given by article 3(1B) of the Renewable Transport Fuel Obligations Order 2007 (S.I. 2007/3072);

“greenhouse gas” has the meaning given by section 92(1) of the Climate Change Act 2008.

Renewable liquid heating fuel obligations

159

(1) The Secretary of State may by regulations subject off-grid heating fuel suppliers (or off-grid heating fuel suppliers of a particular description) to an obligation in respect of renewable liquid heating fuel that corresponds to or is similar to the obligation mentioned in section 124(2) of the Energy Act 2004 (renewable transport fuel obligation).

(2) The regulations may, for any purpose connected with that obligation, make provision corresponding to or similar to any provision made by, or that may be made under, Chapter 5 of Part 2 of the Energy Act 2004 (powers etc relating to renewable transport fuel obligation).

(3) Before making regulations under this section, the Secretary of State must consult such persons as the Secretary of State considers appropriate.

(4) Regulations under this section are subject to the affirmative procedure.

(5) In this section—

“off-grid heating fuel supplier” means a person who, in the course of business, supplies any— renewable liquid heating fuel, fossil fuel, or other fuel, apart from solid fuel, at or for delivery to places in Great Britain with a view to its being used wholly or mainly for the purpose of heating buildings to which there is no mains gas supply;

“renewable liquid heating fuel” means fuel that is typically supplied or stored in a liquid state and that is— biofuel or blended biofuel, or fuel (other than fossil fuel or nuclear fuel) produced— wholly by energy from a renewable source, or wholly by a process powered wholly by such energy;

and “biofuel”, “blended biofuel”, “fossil fuel” and “renewable source” have the meanings given in section 132 of the Energy Act 2004.

Removals of greenhouse gases

Climate Change Act 2008: meaning of “UK removals”

160

In section 29(1)(b) of the Climate Change Act 2008 (UK emissions and removals of greenhouse gases), for “land use, land-use change or forestry” substitute “processes, mechanisms or”.

Part 5 — Independent System Operator and Planner

Independent System Operator and Planner: functions and designation

The Independent System Operator and Planner (“the ISOP”)

161

(1) This Part contains provision about the Independent System Operator and Planner (referred to in this Part as “the ISOP”).

(2) The functions of the ISOP include—

(a) functions conferred by or by virtue of this Act, which include functions relating to the matters mentioned in subsection (3), and

(b) whatever other functions are conferred on the ISOP by or by virtue of any enactment other than one contained in this Act.

(3) The matters referred to in subsection (2)(a) are—

(a) co-ordinating and directing the flow of electricity onto and over transmission systems;

(b) making and administering arrangements for the provision of services for the purpose of facilitating the co-ordination of the flow of electricity onto and over transmission systems;

(i) the development of transmission systems,

(ii) the provision of services referred to in paragraph (b), and

(iii) other arrangements relating to the conveyance or supply of electricity;

(d) carrying out strategic planning and forecasting in connection with—

(i) the development of pipe-line systems for the conveyance of gas, and

(ii) other arrangements relating to the conveyance or supply of gas;

(e) providing advice, analysis or information in relation to the matters mentioned in section 171 (1).

Designation etc

162

(1) The Secretary of State may by notice designate a person as the ISOP.

(2) A notice under subsection (1)—

(a) must specify the time from which the designation has effect;

(b) must be published by the Secretary of State as soon as reasonably practicable after the notice is given.

(3) The Secretary of State must ensure that a person is designated under subsection (1) at all times after a person is first designated (but at any time not more than one person may be designated).

(4) The Secretary of State may by notice revoke a person’s designation under subsection (1).

(5) A notice under subsection (4)—

(a) must specify the time from which the revocation has effect;

(b) must be published by the Secretary of State as soon as reasonably practicable after the notice is given.

General duties

Duty to promote particular objectives

163

(1) The ISOP must carry out its functions in the way that it considers is best calculated to promote—

(a) the net zero objective;

(b) the security of supply objective;

(2) The net zero objective is the objective of enabling the Secretary of State to meet the duties imposed by—

(a) section 1 of the Climate Change Act 2008 (net UK carbon account target for 2050), and

(b) section 4(1)(b) of that Act (UK carbon account not to exceed carbon budget).

(3) The security of supply objective is the objective of ensuring the security of supply, to existing and future consumers, of—

(a) electricity conveyed by distribution systems or transmission systems, and

(b) gas conveyed through pipes.

(4) The efficiency and economy objective is the objective of promoting—

(a) efficient, co-ordinated and economical systems for the distribution and transmission of electricity and the conveyance of gas;

(b) efficiency (including the efficient use of energy) and economy on the part of persons who carry out relevant activities within subsection (5)(a), (b) or (c).

(5) In this Part, “relevant activity” means any of the following, so far as carried out in the course of a business—

(a) an activity mentioned in section 5(1) of the Gas Act 1986 (gas transportation, interconnection, supply, shipping, system planning, smart meter communication, code management);

(b) an activity mentioned in section 4(1) of the Electricity Act 1989 (electricity generation, transmission, distribution, supply, interconnection, multi-purpose interconnection, system operation, smart meter communication, code management);

(d) an activity, other than an activity within paragraph (a), (b) or (c), that is connected with—

(i) the production, conveyance, storage or supply of energy,

(ii) the reduction of UK emissions of targeted greenhouse gases arising from the production, conveyance, storage, supply or consumption of energy, or

(iii) data relating to any matter within sub-paragraph (i) or (ii), or to demand for or consumption of energy.

(6) For the purposes of subsection (5)(d)—

(a) “energy” means energy in any form and includes fuel or other substances used to produce energy;

(b) references to the production of energy include references to the conversion of energy from one form to another;

(c) references to the supply of energy include references to adjusting consumption of energy (whether generally, at particular times, or by particular persons);

(d) an activity referred to in paragraph (d)(i) is not a relevant activity when carried out in relation to products for human or animal consumption;

(e) “UK emissions of targeted greenhouse gases” are emissions of such gases as are, or are treated for the purposes of Part 1 of the Climate Change Act 2008 as, emissions from sources in the United Kingdom.

(7) In this section, “targeted greenhouse gas” has the same meaning as in Part 1 of the Climate Change Act 2008 (see section 24 of that Act).

Duty to have regard to particular matters

164

(1) The ISOP must, when carrying out its functions, have regard to—

(a) the need to facilitate competition between persons who carry out a relevant activity (except to the extent that such persons are, in accordance with or by virtue of an enactment, not subject to competition in relation to the activity);

(b) the consumer impact of a relevant activity;

(d) the desirability of facilitating innovation in relation to the carrying out of relevant activities.

(2) The reference in subsection (1)(b) to the consumer impact of a relevant activity is a reference to the impact (or likely impact) of—

(a) the behaviour of persons who carry out the activity on existing and future consumers, and

(b) the behaviour of existing and future consumers on the carrying out of the activity.

(3) The reference in subsection (1)(c) to the whole-system impact of a relevant activity is a reference to the impact (or likely impact) of—

(a) the carrying out of the activity, and

(b) the behaviour of existing and future consumers in relation to the carrying out of the activity,

in relation to the carrying out of other relevant activities.

Principal objective and general duties of Secretary of State and GEMA under Part 6

165

(1) The ISOP must, when carrying out its functions, have regard to the strategic priorities set out in the current strategy and policy statement.

(2) The ISOP must give notice to the Secretary of State if at any time the ISOP concludes that a policy outcome contained in the current strategy and policy statement is not realistically achievable.

(3) A notice under subsection (2) must include—

(a) the grounds on which the conclusion was reached;

(b) what (if anything) the ISOP is doing or proposes to do for the purpose of furthering the delivery of the outcome so far as reasonably practicable.

(4) In this section—

“the current strategy and policy statement” means the statement for the time being designated under section 131(1) of the Energy Act 2013;

“policy outcome” and “strategic priorities” have the same meaning as in Part 5 of the Energy Act 2013 (see section 131(5) of that Act).

(5) Part 5 of the Energy Act 2013 is amended as follows.

(6) In section 131 (designation of strategy and policy statement)—

(a) in subsection (2)(c), after “Authority” insert “, the Independent System Operator and Planner”;

(b) in subsection (5), after the definition of “the 1986 Act” insert—

“Independent System Operator and Planner” means the person for the time being designated under section 162(1) of the Energy Act 2023;

(7) Section 134 (review of strategy and policy statement) is amended as follows.

(8) In subsection (4), after paragraph (b) insert—

(ba) the Independent System Operator and Planner has given notice to the Secretary of State under section 165(2) of the Energy Act 2023 since the relevant time,

(9) After subsection (5) insert—

(5A) The Secretary of State may also review the strategy and policy statement at any other time if the Secretary of State considers it appropriate to do so in preparation for or in connection with the designation of a person under section 162(1) of the Energy Act 2023 (Independent System Operator and Planner).

(10) In subsection (10), after paragraph (a) insert—

(aa) the Independent System Operator and Planner,

(11) In section 135(4) (procedural requirements in relation to strategy and policy statement), after paragraph (a) insert—

(aa) the Independent System Operator and Planner,

Licences

Licensing of electricity system operator activity

166

(1) Part 1 of the Electricity Act 1989 is amended as follows.

(2) In section 4(1) (prohibition on unlicensed supply, transmission etc of electricity), after paragraph (c) insert—

(ca) co-ordinates and directs the flow of electricity onto and over transmission systems by means of which the transmission of electricity takes place;

(3) Section 6 (licences authorising supply, etc) is amended as follows.

(4) In subsection (1), after paragraph (d) insert—

(da) subject to subsections (1ZB) and (2ZA), a licence authorising a person to co-ordinate and direct the flow of electricity onto and over transmission systems by means of which the transmission of electricity takes place (“an electricity system operator licence”);

(5) After subsection (1) insert—

(1ZA) Subject to subsection (2ZA), the Secretary of State may grant an electricity system operator licence. (1ZB) The first electricity system operator licence may only be granted by the Secretary of State. (1ZC) For the purposes of this section, references to the grant of an electricity system operator licence include the giving of a direction under section 167 of the Energy Act 2023 in respect of a transmission licence.

(6) After subsection (2) insert—

(2ZA) A person may not be granted an electricity system operator licence unless the same person— (a) already holds a licence granted under section 7AA of the Gas Act 1986, or (b) is granted such a licence at the same time as the person is granted an electricity system operator licence.

(7) In subsection (2A), for “(d)” substitute “(da)”.

(8) In subsection (8), after “term of the licence” insert “and subject to”.

(9) After subsection (8) insert—

(8A) If a person who holds an electricity system operator licence ceases at any time to hold a licence under section 7AA of the Gas Act 1986, the person is to be treated as ceasing to hold the electricity system operator licence at the same time.

(10) In section 7A (transfer of licences), after subsection (11) insert—

(11ZA) An electricity system operator licence may not be transferred to a person unless a licence granted under section 7AA of the Gas Act 1986 is also transferred to the same person at the same time.

Direction for transmission licence to have effect as electricity system operator licence

167

(1) The Secretary of State may (instead of granting an electricity system operator licence) direct that a pre-commencement transmission licence is to have effect as an electricity system operator licence.

(2) A direction under this section may provide that a licence that has effect by virtue of the direction includes such terms and conditions as are specified, or of a description specified, in the direction (regardless of whether or the extent to which those terms and conditions were included in the pre-commencement transmission licence).

(3) A direction under this section may provide for the continued effect (in accordance with the direction) of rights, liabilities and obligations that have effect immediately before the relevant date in connection with—

(a) a pre-commencement transmission licence,

(b) a document maintained in accordance with the conditions of such a licence, or

(4) In subsection (3), “the relevant date” means the date on which the direction takes effect.

(5) A direction under this section may make—

(a) incidental, consequential, supplementary and transitional provision;

(b) such amendments relating to the revocation of a pre-commencement transmission licence as the Secretary of State considers appropriate;

(6) Before giving a direction under this section, the Secretary of State must consult—

(a) the GEMA, and

(b) such other persons as the Secretary of State considers appropriate.

(7) Subsection (6) may be satisfied by consultation before the passing of this Act (as well as by consultation after that time).

(8) In this Part—

“electricity system operator licence” means a licence under section 6(1)(da) of the Electricity Act 1989 (as inserted by section 166);

“pre-commencement transmission licence” means a licence under section 6(1)(b) of the Electricity Act 1989 that is in force immediately before this section comes into force.

Licensing of gas system planning activity

168

(1) The Gas Act 1986 is amended as follows.

(2) In section 5 (prohibition on unlicensed activities), in subsection (1)—

(a) omit the “or” at the end of paragraph (c);

(b) after that paragraph insert—

(ca) carries out planning and forecasting functions of the Independent System Operator and Planner;

;

(10A) In subsection (5)(1)(ca), “planning and forecasting functions of the Independent System Operator and Planner” means functions that— (a) are conferred by or by virtue of an enactment on a person who is designated under section 162 (1) of the Energy Act 2023, and (b) relate to strategic planning and forecasting in connection with the development of pipe-line systems operated by gas transporters for the conveyance of gas.

(3) After section 7A insert—

(7AA) (1) Subject to subsections (3) and (4), the Authority may grant a licence authorising a person to carry out planning and forecasting functions of the Independent System Operator and Planner (“a gas system planner licence”). (2) Subject to subsection (4), the Secretary of State may grant a gas system planner licence. (3) The first gas system planner licence may only be granted by the Secretary of State. (4) A person may not be granted a gas system planner licence unless either of the following paragraphs applies to the person— (a) the person— (i) already holds an electricity system operator licence, or (ii) is treated as holding such a licence by virtue of a direction under section 167 of the Energy Act 2023; (b) the person is granted an electricity system operator licence, or is treated by virtue of a direction under section 167 of the Energy Act 2023 as having been granted such a licence, at the same time as the person is granted a gas system planner licence. (5) In this section— - “electricity system operator licence” means a licence under section 6(1)(da) of the Electricity Act 1989; - “planning and forecasting functions of the Independent System Operator and Planner” has the meaning given by section 5(10A).

(4) In section 7B (licences: general)—

(a) in subsection (3), after “contained in it” insert “and subject to subsection (3A)”;

(b) after subsection (3) insert—

(3A) If a person who holds a gas system planner licence ceases at any time to hold a licence under section 6(1)(da) of the Electricity Act 1989, the person is to be treated as ceasing to hold the gas system planner licence at the same time.

(5) In section 8AA (transfer of licences), after subsection (11) insert—

(11ZA) A gas system planner licence may not be transferred to a person unless a licence granted under section 6(1)(da) of the Electricity Act 1989 is also transferred to the same person at the same time.

Modification of licences etc

169

(1) A relevant authority may modify—

(a) the conditions of a particular relevant licence;

(b) the standard conditions of relevant licences of a particular type;

(2) A relevant authority may revoke a pre-commencement transmission licence where—

(a) the licence authorises the holder to co-ordinate and direct the flow of electricity onto and over a transmission system by means of which the transmission of electricity takes place, and

(b) the first electricity system operator licence has been granted to a person.

(3) A relevant authority may exercise the power under subsection (1) or (2) only—

(a) in preparation for the designation of a person under section 162 (1), or

(b) in connection with or in consequence of the designation of a person under that provision.

(4) A relevant authority may also exercise the power under subsection (1) where—

(a) the operation or management of a relevant document is affected by steps taken in connection with the designation of a person under section 162 (1) or by the preparation for such a designation, and

(b) the authority considers it appropriate to exercise the power in connection with the operation or management of a relevant document.

(5) The Secretary of State may direct the GEMA to exercise the power under subsection (1) or (2) if the Secretary of State considers it appropriate for the GEMA to exercise that power.

(6) A relevant authority may not exercise the power under subsection (1) or (2) after the end of the period of 3 years beginning with the day on which the first designation under section 162 (1) has effect.

(7) In this section—

“pre-commencement transmission licence” has the same meaning as in section 167;

“relevant authority” means the Secretary of State or the GEMA;

“relevant document” means a document maintained in accordance with the conditions of a relevant licence.

Procedure relating to modifications under section 169

170

(1) Before making a modification under section 169, a relevant authority must—

(a) publish a notice about the proposed modification,

(b) send a copy of the notice to the persons listed in subsection (2), and

(c) consider any representations made within the period specified in the notice about the proposed modification or the date from which it would take effect.

(2) The persons mentioned in subsection (1)(b) are—

(a) each relevant licence holder;

(b) the GEMA (where the relevant authority is the Secretary of State) or the Secretary of State (where the relevant authority is the GEMA);

(d) the Scottish Association of Citizens Advice Bureaux;

(e) Consumer Scotland;

(f) the General Consumer Council for Northern Ireland, unless the relevant authority does not consider it appropriate for the Council to be sent a copy of the notice in a particular case;

(g) where the proposed modification relates to a licence for the purposes of section 5 of the Gas Act 1986, the Health and Safety Executive;

(h) such other persons as the relevant authority considers appropriate.

(3) A notice under subsection (1) must—

(a) state that the relevant authority proposes to make a modification;

(b) set out the proposed modification and its effect;

(d) state the reasons why the relevant authority proposes to make the modification.

(4) If, after complying with subsections (1) to (3) in relation to a modification, the relevant authority decides to make the modification, it must publish a notice about the decision.

(5) A notice under subsection (4) must—

(a) state that the relevant authority has decided to make the modification;

(b) set out the modification and its effect;

(d) state how the relevant authority has taken account of any representations made in the period specified in the notice under subsection (1);

(e) state the reason for any differences between the modification set out in the notice and the proposed modification.

(6) A notice under this section about a modification or decision must be published in such manner as the relevant authority considers appropriate for bringing it to the attention of those likely to be affected by the making of the modification or decision.

(7) References in this section to the making of a modification, in relation to a relevant licence, include references to the revocation of the licence.

(8) In this section, “relevant licence holder”—

(a) in relation to the modification of standard conditions of relevant licences of any type, means the holder of a licence of that type—

(i) that is to be modified by the inclusion of a new standard condition, or

(ii) that includes any standard conditions to which the modification relates that are in effect at the end of the period specified by virtue of subsection (1)(c);

(b) in relation to the modification of a condition of a particular relevant licence (other than a standard condition), means the holder of that licence;

(c) in relation to the modification of a document maintained in accordance with the conditions of a relevant licence of a particular type, means the holder of a relevant licence of that type;

(d) in relation to the revocation of a relevant licence, means the holder of that licence.

(9) In this section, “relevant authority” means the Secretary of State or the GEMA.

Advice, analysis and information

Provision of advice, analysis or information

171

(1) The ISOP must, so far as reasonably practicable, comply with a request by a person within subsection (2) for the provision of advice, analysis or information to the person in connection with—

(a) any of the ISOP’s functions,

(b) any of the objectives listed in section 163 (1), or

(2) The persons within this subsection are—

(a) a Minister of the Crown (within the meaning of the Ministers of the Crown Act 1975: see section 8(1) of that Act);

(b) the GEMA.

(3) The ISOP must, so far as reasonably practicable, comply with a request made under subsection (1) within such period, and in such form and manner, as the person making the request may reasonably require.

Power to require information from regulated persons etc

172

(1) The ISOP may by notice request from a person within subsection (2) such information as the ISOP reasonably requires in connection with the exercise of any of its functions.

(2) A person is within this subsection if—

(a) the person carries out a relevant activity, or

(b) the ISOP reasonably considers that the person intends to carry out a relevant activity.

(3) A person to whom a request is made under subsection (1) must, so far as reasonably practicable, provide the requested information within such period, and in such form and manner, as may be specified in the notice.

(4) Where a requirement under subsection (3) is imposed on a regulated person (as defined by section 25(8) of the Electricity Act 1989), it is enforceable by the GEMA as if it were a relevant requirement imposed on the person for the purposes of section 25 of that Act.

(5) Where a requirement under subsection (3) is imposed on a regulated person (as defined by section 28(8) of the Gas Act 1986), it is enforceable by the GEMA as if it were a relevant requirement imposed on the person for the purposes of section 28 of that Act.

(6) Where neither of subsections (4) and (5) applies, the duty imposed under subsection (3) on a person is enforceable by the ISOP in civil proceedings—

(a) for an injunction,

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

(7) Nothing in this section requires a disclosure of information that would contravene the data protection legislation (within the meaning of the Data Protection Act 2018 - see section 3 of that Act).

In determining whether a disclosure would do so, the duty imposed by subsection (3) is to be taken into account.

Duty to keep developments in energy sector under review

173

The ISOP must keep under review developments relating to the energy sector that may be relevant to the carrying out of any of the ISOP’s functions.

Transfers, pensions and financial assistance

Transfers

174

Schedule 9 contains—

(a) in Part 1, provision about transfer schemes relating to the ISOP;

(b) in Part 2, related provision about transfers and other provision in connection with the designation of a person as the ISOP.

Pension arrangements

175

Schedule 10 contains provision about pension arrangements in connection with the ISOP.

Financial assistance for the ISOP

176

(1) The Secretary of State may provide financial assistance to the ISOP.

(2) Financial assistance under this section may be provided in any form and in particular may be provided by way of—

(a) grant,

(b) loan,

(d) the acquisition of shares or any other interest in, or securities of, a body corporate.

(3) Financial assistance under this section may be provided subject to such conditions as the Secretary of State considers appropriate (which may include conditions about repayment with or without interest or other return).

Competitive tenders for electricity projects

177

(1) In section 7 of the Electricity Act 1989 (conditions of licences: general), in subsection (3A)—

(a) for “or a distribution licence” substitute “, a distribution licence or an electricity system operator licence”;

(b) in paragraph (a), for “his charges for the transmission or distribution of electricity” substitute “the charges payable to the holder in connection with the transmission or distribution of electricity, or in connection with the exercise of any other functions under or by virtue of the licence,”;

(c) in paragraph (b), for “licence holders” substitute “holders of licences under section 6 or under Part 1 of the Gas Act 1986”.

(2) In section 9 of that Act (general duties of licence holders), after subsection (2A) insert—

(2B) The conditions of a licence held by a person to which a duty imposed by subsection (1) or (2) applies may include a condition requiring the person, in performing the duty, to have regard to the interests of existing and future consumers in relation to gas conveyed through pipes (within the meaning of the Gas Act 1986).

(3) In section 7B of the Gas Act 1986 (licences: general), in subsection (5)(b)—

(a) after “section 7” insert “or 7AA”;

(b) in sub-paragraph (i), for “his charges for the conveyance of gas” substitute “the charges payable to the holder in connection with the conveyance of gas, or in connection with the exercise of any other functions under or by virtue of the licence,”;

(c) in sub-paragraph (ii), for the words from “licences under” to “above” substitute “licences under this Part or under section 6 of the Electricity Act 1989”.

(4) In section 9 of that Act (general powers and duties of gas transporters), after subsection (2) insert—

(2A) The conditions of a licence held by a gas transporter may include a condition requiring the gas transporter, in performing a duty under subsection (1), (1A) or (2), to have regard to the interests of existing and future consumers in relation to electricity conveyed by distribution systems or transmission systems (within the meaning of the Electricity Act 1989).

Other

Principal objective and general duties of Secretary of State and GEMA under Part 5

178

(1) Sections 3A to 3D of the Electricity Act 1989 and sections 4AA to 4B of the Gas Act 1986 (principal objective and general duties) apply in relation to the functions of the Secretary of State under sections 162 and 167 as they apply in relation to functions under Part 1 of the Act in question.

(2) Where the Secretary of State or the GEMA has functions under section 169, 170 or 172 in relation to a licence under section 6(1) of the Electricity Act 1989, sections 3A to 3D of that Act apply in relation to those functions as they apply in relation to functions under Part 1 of that Act.

(3) Where the Secretary of State or the GEMA has functions under section 169, 170 or 172 in relation to a licence under section 7, 7ZA, 7A, 7AA, 7AB or 7AC of the Gas Act 1986, sections 4AA to 4B of that Act apply in relation to those functions as they apply in relation to functions under Part 1 of that Act.

Minor and consequential amendments

179

Schedule 11 contains further amendments to the Electricity Act 1989 and the Gas Act 1986.

Interpretation of Part 5

180

(1) In this Part—

“distribution system” has the same meaning as in Part 1 of the Electricity Act 1989 (see section 4(4) of that Act);

“electricity system operator licence” has the meaning given by section 167 (8);

“gas” has the same meaning as in Part 1 of the Gas Act 1986 (see section 48(1) of that Act);

“relevant activity” has the meaning given by section 163 (5);

“relevant licence” means a licence for the purposes of section 4 of the Electricity Act 1989 or section 5 of the Gas Act 1986 (prohibitions on unlicensed activities);

“transmission system” has the same meaning as in Part 1 of the Electricity Act 1989 (see section 4(4) of that Act).

(2) References in this Part to the distribution, generation, supply or transmission of electricity are to be construed in accordance with section 4(4) of the Electricity Act 1989.

(3) For the purposes of this Part, references to the ISOP’s functions are to any functions that are exercisable by the person for the time being designated as the ISOP (whether they are exercisable in the person’s capacity as the ISOP or in another capacity).

Regulations under Part 5

181

(1) Regulations under this Part are subject to the negative procedure.

(2) Subsection (1) does not apply to regulations under paragraph 9 of Schedule 9.

Part 6 — Governance of gas and electricity industry codes

Key definitions for Part 6

Designation of codes etc

182

(1) In this Part, “designated document” means a document that—

(a) is maintained in accordance with the conditions of a relevant licence, and

(b) is designated for the purposes of this Part by notice given by the Secretary of State.

(2) The designation of a document has effect from the time specified in the notice under subsection (1)(b).

(3) A notice under subsection (1)(b) must be published in such manner as the Secretary of State considers appropriate for bringing it to the attention of those likely to be affected by the designation.

(4) The Secretary of State may revoke the designation of a document under this section.

(5) The Secretary of State may not designate a document, or revoke the designation of a document, except so as to give effect to a recommendation of the GEMA.

(6) Before making a recommendation to the Secretary of State for the purposes of subsection (5), the GEMA must consult such persons as it considers appropriate.

(7) Subsection (6) does not apply in relation to the designation of a document where, immediately before being designated, the document is (or is treated as) a qualifying document within the meaning of Schedule 12.

Meaning of “code manager” and “code manager licence”

183

(1) In this Part, “code manager”, in relation to a designated document, means the holder of a code manager licence in respect of the document.

(2) In this Part, “code manager licence” means a licence under section 7AC of the Gas Act 1986 or section 6(1)(g) of the Electricity Act 1989.

(3) See sections 185 and 186, which contain amendments to the Gas Act 1986 and the Electricity Act 1989 in relation to the licences mentioned in subsection (2).

Designation of central systems

184

(1) In this Part, “designated central system” means a central system that is designated for the purposes of this Part by notice given by the Secretary of State.

(2) “Central system” means an information technology system which has one or both of the following functions—

(a) to support the operation of the provisions of one or more designated documents;

(b) to process, transmit or store data in connection with the operation of the provisions of one or more designated documents.

(3) The designation of a central system has effect from the time specified in the notice under subsection (1).

(4) A notice under subsection (1) in relation to a central system must also specify the person (referred to in this Part as the “responsible body”) who is responsible, for the purposes of this Part, for operating or procuring the operation of the central system.

(5) A notice under subsection (1) must be published in such manner as the Secretary of State considers appropriate for bringing it to the attention of those likely to be affected by the designation.

(6) The Secretary of State may revoke the designation of a central system under this section.

(7) The Secretary of State may not designate a central system, or revoke the designation of a central system, except so as to give effect to a recommendation of the GEMA.

(8) Before making a recommendation to the Secretary of State for the purposes of subsection (7), the GEMA must consult such persons as it considers appropriate.

(9) Subsection (8) does not apply in relation to the designation of a central system where—

(a) immediately before being designated, the central system is a qualifying central system within the meaning of Schedule 12, and

(b) the designation does not involve any change to the responsible body in relation to the central system.

(10) The Secretary of State may by notice provide—

(a) that the person who is the responsible body in relation to a designated central system is to cease to be the responsible body in relation to that system, and

(b) that a person specified in a notice under this paragraph is instead to be the responsible body in relation to the designated central system.

(11) The Secretary of State may not give a notice under subsection (10) except so as to give effect to a recommendation of the GEMA.

Licensing and selection of code manager

Licence under Gas Act 1986 for performance of code management function

185

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

(2) Section 5 (prohibition on unlicensed activities) is amended as follows.

(3) After subsection (1)(d) insert

; or (e) performs the function of code manager in relation to a designated gas licence document (see further subsections (11A) and (11B)),

(4) After subsection (11) insert—

(11A) A reference in this Part to a person (“P”) performing the function of code manager in relation to a designated gas licence document is a reference to making arrangements, with the persons to whom subsection (11B) applies, under which P is responsible for the governance of the document. (11B) This subsection applies to the holder of a licence for the purposes of section 5 where a condition of the licence— (a) requires the holder to comply with, or to enter into arrangements that conform with, the designated gas licence document in question, or (b) imposes obligations on the holder that do not apply to the holder where the holder complies with that document.

(5) In subsection (12)—

(a) omit the “and” after the definition of “relevant information”;

(b) at the appropriate place insert—

“designated gas licence document” means a document that is— maintained in accordance with the conditions of a licence for the purposes of section 5, and designated under section 182 of the Energy Act 2023;

(6) After section 7AB insert—

(7AC) (1) The Authority may grant a licence (“a code manager licence”) authorising a person to perform the function of code manager in respect of a designated gas licence document. (2) Where a designated gas licence document is also a designated electricity licence document, a person may not be granted a code manager licence in respect of the document unless the same person is at the same time granted a licence under section 6(1)(g) of the Electricity Act 1989. (3) In this section— - “designated electricity licence document” has the same meaning as in section 4 of the Electricity Act 1989; - “designated gas licence document” has the same meaning as in section 5.

(7) Section 7B (licences: general) is amended as follows.

(8) In subsection (5A)—

(a) after “smart meter communication licence” (in the first place it occurs) insert “or in a code manager licence”;

(b) for “smart meter communication licence” (in the second place it occurs) substitute “a licence of the same type”.

(9) In subsection (5B)—

(a) for “Secretary of State or the Authority” substitute “relevant authority”;

(b) in paragraph (b)(ii), after “licence” insert “or (in the case of an application for a code manager licence) apply for a licence otherwise than as part of a competition”.

(10) In subsection (5C), after “smart meter communication licence” insert “or in a code manager licence”.

(11) In subsection (5D), for “the Secretary of State or the Authority” substitute “the relevant authority”.

(12) In subsection (5E)—

(a) in paragraph (a), for “Secretary of State or the Authority (as appropriate)” substitute “relevant authority”;

(b) in paragraph (b), for “Secretary of State or the Authority (as appropriate)” substitute “relevant authority”.

(13) After subsection (5F) insert—

(5FA) In subsections (5B) to (5E), “the relevant authority” means— (a) in relation to a smart meter communication licence, the Secretary of State or the Authority; (b) in relation to a code manager licence, the Authority.

(14) In section 8AA (transfer of licences), after subsection (11A) insert—

(11B) Where the holder of a code manager licence is also the holder of a licence under section 6(1)(g) of the Electricity Act 1989, the code manager licence may not be transferred to a person unless the licence under section 6(1)(g) of that Act is transferred to the same person at the same time.

Licence under Electricity Act 1989 for performance of code management function

186

(1) Part 1 of the Electricity Act 1989 is amended as follows.

(2) Section 4 (prohibition on unlicensed supply, etc) is amended as follows.

(3) In subsection (1)—

(a) omit the “or” after paragraph (d);

(b) after paragraph (e) insert

or (f) performs the function of code manager in relation to a designated electricity licence document (see further subsections (3H) and (3I)),

(4) After subsection (3G) insert—

(3H) A reference in this Part to a person (“P”) performing the function of code manager in relation to a designated electricity licence document is a reference to making arrangements, with the persons to whom subsection (3I) applies, under which P is responsible for the governance of the document. (3I) This subsection applies to the holder of a licence for the purposes of section 4 where a condition of the licence requires the holder to comply with the designated electricity licence document in question.

(5) In subsection (6), at the appropriate place insert—

“designated electricity licence document” means a document that is— maintained in accordance with the conditions of a licence for the purposes of section 4, and designated under section 182 of the Energy Act 2023;

(6) Section 6 (licences authorising supply, etc) is amended as follows.

(7) In subsection (1)—

(a) omit the “or” after paragraph (e);

(b) after paragraph (f) insert

, or (g) a licence authorising a person to perform the function of code manager in relation to a designated electricity licence document (“a code manager licence”).

(8) After subsection (2B) insert—

(2C) Where a designated electricity licence document is also a designated gas licence document, a person may not be granted a code manager licence in relation to the document unless the same person is at the same time granted a licence under section 7AC of the Gas Act 1986.

(9) For subsection (10) substitute—

(10) In this section— - “designated electricity licence document” has the same meaning as in section 4; - “designated gas licence document” has the same meaning as in section 5 of the Gas Act 1986; - “premises” has the same meaning as in section 4.

(10) Section 7 (conditions of licences: general) is amended as follows.

(11) In subsection (3B)—

(a) after “smart meter communication licence” (in the first place it occurs) insert “or in a code manager licence”;

(b) for “smart meter communication licence” (in the second place it occurs) substitute “a licence of the same type”.

(12) In subsection (3C)—

(a) for “Secretary of State or the Authority” substitute “relevant authority”;

(b) in paragraph (b)(ii), after “licence” insert “or (in the case of an application for a code manager licence) apply for a licence otherwise than as part of a competition”.

(13) In subsection (3D), after “smart meter communication licence” insert “or in a code manager licence”.

(14) In subsection (3E), for “the Secretary of State or the Authority” substitute “the relevant authority”.

(15) In subsection (3F)—

(a) in paragraph (a), for “Secretary of State or the Authority (as appropriate)” substitute “relevant authority”;

(b) in paragraph (b), for “Secretary of State or the Authority (as appropriate)” substitute “relevant authority”.

(16) In subsection (3G)(a), after “licence” insert “or (as the case may be) code manager licence”.

(17) After subsection (3G) insert—

(3GA) In subsections (3C) to (3F), “the relevant authority” means— (a) in relation to a smart meter communication licence, the Secretary of State or the Authority; (b) in relation to a code manager licence, the Authority.

(18) In section 7A (transfer of licences), after subsection (11A) insert—

(11B) Where the holder of a code manager licence is also the holder of a licence under section 7AC of the Gas Act 1986, the code manager licence may not be transferred to a person unless the licence under section 7AC of that Act is transferred to the same person at the same time.

Selection of code manager

187

(1) The GEMA must determine whether the selection of the person who is to be the code manager in relation to a designated document is to be made—

(a) on a non-competitive basis, in accordance with regulations made by the Secretary of State under section 188, or

(b) on a competitive basis, in accordance with regulations made by the GEMA under section 189.

(2) The Secretary of State may by regulations make—

(a) provision about the making of determinations under subsection (1) by the GEMA (which may include provision specifying criteria to be applied by the GEMA in making determinations);

(b) provision enabling the GEMA, in circumstances specified in the regulations, to change the basis on which the selection of a code manager is to be made.

(3) The Secretary of State may by regulations—

(a) specify requirements to be met by or in relation to a person in order for the person to be selected as the code manager in relation to a designated document;

(b) specify persons, or persons of a particular description, who may or may not be selected to be a code manager in relation to a designated document.

Selection on a non-competitive basis

188

(1) The Secretary of State may by regulations make provision about the selection by the GEMA, otherwise than on a competitive basis, of the person who is to be the code manager in relation to a designated document.

(2) Regulations under this section may make provision by reference to a determination by the GEMA or to the opinion of the GEMA as to any matter.

(3) Regulations under this section must make provision so as to ensure that a person (“P”) may not be selected to be the code manager in relation to a designated document unless the GEMA is satisfied that P would not, if selected, have a financial or other interest likely to prejudice the discharge by P of the functions of code manager.

(4) The provision that may be made by virtue of subsection (1) includes provision for the selection by the GEMA of a person (other than an individual) formed by the GEMA.

Selection on a competitive basis

189

(1) The GEMA may by regulations make provision for a determination by the GEMA on a competitive basis of the person who is to be selected to be the code manager in relation to a designated document.

(2) Regulations under this section may make provision about the procedure relating to the making of such a determination, which may include provision—

(a) in prescribed cases, for the publication of a proposal to select a code manager in relation to a designated document;

(b) for the inclusion in such a proposal of an invitation to apply for selection;

(c) imposing conditions in relation to the making of applications (whether in pursuance of a proposal published as mentioned in paragraph (a) or otherwise);

(d) restricting the making of applications and imposing requirements as to the period within which they must be made;

(e) for regulating the manner in which applications are considered or determined;

(f) authorising or requiring the GEMA, when determining whom to select, to have regard to the person’s suitability for being selected.

(3) Regulations under this section may make provision by reference to a determination by the GEMA or to the opinion of the GEMA as to any matter.

(4) Regulations under this section must make provision so as to ensure that a person (“P”) may not be selected to be the code manager in relation to a designated document unless the GEMA is satisfied that P would not, if selected, have a financial or other interest likely to prejudice the discharge by P of the functions of code manager.

(5) The approval of the Secretary of State is required for the making of regulations under this section.

(6) In this section, “prescribed” means prescribed by or determined in accordance with regulations made by the GEMA.

Strategic direction statement for designated documents

Strategic direction statement

190

(1) The GEMA must, each year, prepare and publish a statement setting out a strategic direction for designated documents.

(2) A statement prepared and published under subsection (1) is referred to in this Part as a “strategic direction statement”.

(3) A strategic direction statement must in particular—

(a) contain a strategic assessment of government policies, and of developments relating to the energy sector, that the GEMA considers will or may require the making of modifications to designated documents;

(b) cover such other matters relating to designated documents as the Secretary of State may specify in regulations.

(4) In preparing a strategic direction statement, the GEMA must have regard to any advice given to it by the Independent System Operator and Planner so far as relevant to the matters referred to in subsection (3).

(5) Before publishing a strategic direction statement in any year, the GEMA must—

(a) publish a notice containing a draft of the document,

(b) send a copy of the notice to the persons listed in subsection (6), and

(6) The persons referred to in subsection (5)(b) are—

(a) the Secretary of State;

(b) the National Association of Citizens Advice Bureaux;

(d) Consumer Scotland.

(7) A notice under subsection (5) must be published by the GEMA in whatever way it considers appropriate for the purpose of bringing the matters contained in it to the attention of persons likely to be affected by them.

Transfer of functions under section 190 to Independent System Operator and Planner

191

(1) The Secretary of State may by regulations amend section 190 so as to provide for functions under that section to be exercisable by the Independent System Operator and Planner (instead of by the GEMA).

(2) Before making regulations under this section, the Secretary of State must consult—

(a) the GEMA,

(b) the Independent System Operator and Planner, and

(3) Regulations under this section—

(a) must repeal section 190 (4);

(b) must add the GEMA to the list of persons in section 190 (6);

Modifications and directions

Modification of designated documents by GEMA

192

(1) The GEMA may modify a designated document if any of subsections (2) to (6) applies.

(2) This subsection applies where the GEMA considers that—

(a) the designated document needs to be modified as a matter of urgency,

(b) the making of the modification is likely to be delayed if done in accordance with the normal modification procedures for the document, and

(i) consumers, or

(ii) any person with rights or obligations under the document, other than the GEMA.

(3) This subsection applies where the GEMA considers that a financial or other interest of the code manager in respect of the matter to which the modification relates is likely to prejudice the making of the modification if done in accordance with the normal modification procedures for the document.

(4) This subsection applies where the GEMA considers that—

(a) the modification is required for the purpose of implementing a strategic direction statement under section 190, and

(b) the nature of the modification (for example, its complexity) is such that it needs to be made under this section rather than in accordance with the normal modification procedures for the designated document.

(5) This subsection applies where the GEMA considers that the modification is required in connection with the incorporation of the whole or part of the provision made by the designated document into another document (whether or not a designated document).

(6) This subsection applies where the GEMA considers that the modification is required in consequence of the exercise of any power conferred by Schedule 12 (transitional provisions) in relation to a different document.

(7) The Secretary of State may by regulations make—

(a) provision specifying requirements to be met in relation to the exercise of the power under subsection (1);

(b) provision supplementing subsections (2) to (6).

(8) References in this section to the normal modification procedures for a designated document are to provision, relating to the procedure for modifying the document, that—

(a) is contained in the document, or

(b) applies pursuant to any condition of a licence in accordance with which the document is maintained.

Modification under section 192

193

(1) Before making a modification under section 192, the GEMA must—

(a) publish a notice about the proposed modification,

(b) send a copy of the notice to the persons listed in subsection (2), and

(c) consider any representations made within the period specified in the notice about the proposed modification or the date from which it would take effect.

(2) The persons mentioned in subsection (1)(b) are—

(a) the Secretary of State,

(b) the code manager in relation to the designated document to which the proposed modification relates, and

(3) A notice under subsection (1) must—

(a) state that the GEMA proposes to make a modification;

(b) set out the proposed modification and its effect;

(d) state—

(i) why the GEMA is seeking to make the modification under section 192 (by reference to whichever of subsections (2) to (6) of section 192 applies), and

(ii) the reasons for the proposed modification.

(4) If, within the period specified by virtue of subsection (1)(c), the Secretary of State directs the GEMA not to make the proposed modification, the GEMA must comply with the direction.

(5) If, after complying with subsections (1) to (3) in relation to a proposed modification, the GEMA decides to make a modification, it must publish a notice about the decision.

(6) A notice under subsection (5) must—

(a) state that the GEMA has decided to make the modification;

(b) set out the modification and its effect;

(d) state how the GEMA has taken account of any representations made in the period specified in the notice under subsection (1);

(e) state the reason for any differences between the modification set out in the notice and the proposed modification.

(7) A notice under this section about a proposed modification or a decision must be published in such manner as the GEMA considers appropriate for bringing it to the attention of those likely to be affected by the making of the modification or decision.

Directions relating to designated central systems

194

(1) The GEMA may give a direction to the responsible body in relation to a designated central system for the purpose of ensuring that the body—

(a) complies with its obligations under a relevant designated document, or

(b) takes such steps as the GEMA considers may be necessary for the efficient operation or implementation of the provisions of a relevant designated document.

(2) When determining whether to give a direction under this section, the GEMA must have regard to the ability of the responsible body to whom the direction would be given—

(a) to recover any costs reasonably incurred by the body in complying with the direction, and

(b) to comply with the direction without contravening any obligations of the body under a relevant designated document or in relation to the operation of the designated central system.

(3) A responsible body must comply with a direction given to it under this section.

(4) In this section and section 195, “relevant designated document”, in relation to a designated central system, means a designated document in respect of which the central system has a function mentioned in section 184 (2).

Directions under section 194

195

(1) Before giving a direction under section 194, the GEMA must—

(a) publish a notice about the proposed direction,

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