(a) works for inspecting, maintaining, adjusting, repairing, altering or
renewing the government pipe-line and storage system or any part of
it;

(b) works for changing the position of the system or any part of it;

(c) 5works for removing the system or any part of it;

(d) breaking up or opening land for the purpose of works falling within
paragraph (a), (b) or (c), or tunnelling or boring for that purpose;

(e) other works incidental to anything falling within paragraph (a), (b), (c)
or (d).

(6) 10To the extent that anything done under or by virtue of this Part constitutes the
execution of pipe-line works for the purposes of section 45 of the Pipe-lines Act
1962 (obligation to restore agricultural land), subsection (3) of that section has
effect as if after “this Act” there were inserted “or any provision of Part 3 of the
Energy Act 2013”.

105 15Rights apart from Part 3

(1) Nothing in this Part affects any other rights of the Secretary of State in relation
to the government pipe-line and storage system (whether conferred under
another enactment, by agreement or otherwise, and whether or not existing
upon the coming into force of this section).

(2) 20For the purposes of sections 98, 99 and 103, it is immaterial whether a right
corresponding to a right conferred by the section was exercisable by the
Secretary of State before the coming into force of the section.

106 Repeals

(1) The provisions mentioned in subsection (2) cease to have effect.

(2) 25The provisions are—

(a) section 12 of the Requisitioned Land and War Works Act 1948
(permanent power to maintain government oil pipe-lines);

(b) section 13 of that Act (compensation in respect of government oil pipe-
lines);

(c) 30section 14 of that Act (registration of rights as to government oil pipe-
lines);

(d) section 15 of that Act (supplementary provisions as to government oil
pipe-lines);

(e) section 12 of the Land Powers (Defence) Act 1958 (extension of
35provisions of Requisitioned Land and War Works Acts).

107 Power to dissolve the Oil and Pipelines Agency by order

(1) The Secretary of State may provide by order for—

(a) the repeal of the Oil and Pipelines Act 1985;

(b) the dissolution of the Oil and Pipelines Agency.

(2) 40If the Oil and Pipelines Agency is dissolved under subsection (1), the Secretary
of State may make one or more schemes for the transfer to the Secretary of State
of property, rights and liabilities (a “transfer scheme”).

(3) Schedule 13 makes further provision about any transfer scheme under
subsection (2).

(4) An order under this section may—

(a) include incidental, supplementary and consequential provision;

(b) 5make transitory or transitional provision or savings;

(c) make different provision for different cases or circumstances or for
different purposes;

(d) make provision subject to exceptions.

(5) An order under this section is to be made by statutory instrument which is
10subject to annulment in pursuance of a resolution of either House of
Parliament.

108 Crown application: Part 3

(1) This Part binds the Crown.

(2) No contravention by the Crown of section 100(4) makes the Crown criminally
15liable; but the High Court or, in Scotland, the Court of Session may declare
unlawful any act or omission of the Crown which constitutes such a
contravention.

(3) But subsection (2) does not affect the criminal liability of persons in the service
of the Crown.

20Part 4 Strategy and Policy Statement

109 Designation of statement

(1) The Secretary of State may designate a statement as the strategy and policy
statement for the purposes of this Part if the requirements set out in section 113
25are satisfied (consultation and Parliamentary procedural requirements).

(2) The strategy and policy statement is a statement prepared by the Secretary of
State that sets out—

(a) the strategic priorities, and other main considerations, of Her Majesty’s
government in formulating its energy policy for Great Britain
30(“strategic priorities”),

(b) the particular outcomes to be achieved as a result of the
implementation of that policy (“policy outcomes”), and

(c) the roles and responsibilities of persons (whether the Secretary of State,
the Authority or other persons) who are involved in implementing that
35policy or who have other functions that are affected by it.

(3) The Secretary of State must publish the strategy and policy statement
(including any amended statement following a review under section 112) in
such manner as the Secretary of State considers appropriate.

(4) For the purposes of this section, energy policy “for Great Britain” includes such
40policy for—

(a) the territorial sea adjacent to Great Britain, and

(b) areas designated under section 1(7) of the Continental Shelf Act 1964.

(5) In this Part—

• “the 1986 Act” means the Gas Act 1986;

• “policy outcomes” has the meaning given in subsection (2)(b);

• “strategic priorities” has the meaning given in subsection (2)(a);

• 5“the strategy and policy statement” means the statement for the time
  being designated under subsection (1) as the strategy and policy
  statement for the purposes of this Part.

110 Duties in relation to statement

(1) The Authority must have regard to the strategic priorities set out in the strategy
10and policy statement when carrying out regulatory functions.

(2) The Secretary of State and the Authority must carry out their respective
regulatory functions in the manner which the Secretary of State or the
Authority (as the case may be) considers is best calculated to further the
delivery of the policy outcomes.

(3) 15Subsection (2) is subject to the application of the principal objective duty in the
carrying out of any such function.

(4) “Regulatory functions”, in relation to the Secretary of State, means—

(a) functions of the Secretary of State under Part 1 of the 1986 Act or Part 1
of EA 1989;

(b) 20other functions of the Secretary of State to which the principal objective
duty is applied by any enactment.

(5) “Regulatory functions”, in relation to the Authority, means—

(a) functions of the Authority under Part 1 of the 1986 Act or Part 1 of EA
1989;

(b) 25other functions of the Authority to which the principal objective duty is
applied by any enactment.

(6) The “principal objective duty” means the duty of the Secretary of State or the
Authority (as the case may be) imposed by—

(a) section 4AA(1B) and (1C) of the 1986 Act;

(b) 30section 3A(1B) and (1C) of EA 1989.

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

(8) A notice under subsection (7) must include—

(a) 35the grounds on which the conclusion was reached;

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

(9) In this section “enactment” includes—

(a) 40an enactment contained in this Act, and

(b) an enactment passed or made after the passing of this Act.

111 Exceptions from section 110 duties

(1) Section 110(1) and (2) do not apply in relation to functions of the Secretary of
State under sections 36 to 37 of EA 1989.

(2) Section 110(1) and (2) do not apply in relation to anything done by the
5Authority—

(a) in the exercise of functions relating to the determination of disputes;

(b) in the exercise of functions under section 36A(3) of the 1986 Act or
section 43(3) of EA 1989.

(3) The duties imposed by section 110(1) and (2) do not affect the obligation of the
10Authority or the Secretary of State to perform or comply with any other duty
or requirement (whether arising under this Act or another enactment, by virtue
of any EU obligation or otherwise).

112 Review

(1) The Secretary of State must review the strategy and policy statement if a period
15of 5 years has elapsed since the relevant time.

(2) The “relevant time”, in relation to the strategy and policy statement, means—

(a) the time when the statement was first designated under this Part, or

(b) if later, the time when a review of the statement under this section last
took place.

(3) 20A review under subsection (1) must take place as soon as reasonably
practicable after the end of the 5 year period.

(4) The Secretary of State may review the strategy and policy statement at any
other time if—

(a) a Parliamentary general election has taken place since the relevant time,

(b) 25the Authority has given notice to the Secretary of State under section
110(7) since the relevant time,

(c) a significant change in the energy policy of Her Majesty’s government
has occurred since the relevant time, or

(d) the Parliamentary approval requirement in relation to an amended
30statement was not met on the last review (see subsection (12)).

(5) The Secretary of State may determine that a significant change in the
government’s energy policy has occurred for the purposes of subsection (4)(c)
only if—

(a) the change was not anticipated at the relevant time, and

(b) 35if the change had been so anticipated, it appears to the Secretary of State
likely that the statement would have been different in a material way.

(6) On a review under this section the Secretary of State may—

(a) amend the statement (including by replacing the whole or part of the
statement with new content),

(b) 40leave the statement as it is, or

(c) withdraw the statement’s designation as the strategy and policy
statement.

(7) The amendment of a statement under subsection (6)(a) has effect only if the
Secretary of State designates under section 109 the amended statement as the

strategy and policy statement (and the procedural requirements under section
113 apply in relation to any such designation).

(8) For the purposes of this section, corrections of clerical or typographical errors
are not to be treated as amendments made to the statement.

(9) 5The designation of a statement as the strategy and policy statement ceases to
have effect upon a subsequent designation of an amended statement as the
strategy and policy statement in accordance with subsection (7).

(10) The Secretary of State must consult the following persons before proceeding
under subsection (6)(b) or (c)—

(a) 10the Authority,

(b) the Scottish Ministers,

(c) the Welsh Ministers, and

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

(11) For the purposes of subsection (2)(b), a review of a statement takes place—

(a) 15in the case of a decision on the review to amend the statement under
subsection (6)(a)—

(i) at the time when the amended statement is designated as the
strategy and policy statement under section 109, or

(ii) if the amended statement is not so designated, at the time when
20the amended statement was laid before Parliament for approval
under section 113(8);

(b) in the case of a decision on the review to leave the statement as it is
under subsection (6)(b), at the time when that decision is taken.

(12) For the purposes of subsection (4)(d), the Parliamentary approval requirement
25in relation to an amended statement was not met on the last review if—

(a) on the last review of the strategy and policy statement to be held under
this section, an amended statement was laid before Parliament for
approval under section 113(8), but

(b) the amended statement was not designated because such approval was
30not given.

113 Procedural requirements

(1) This section sets out the requirements that must be satisfied in relation to a
statement before the Secretary of State may designate it as the strategy and
policy statement.

(2) 35In this section references to a statement include references to a statement as
amended following a review under section 112(6)(a).

(3) The Secretary of State must first—

(a) prepare a draft of the statement, and

(b) issue the draft to the required consultees for the purpose of consulting
40them about it.

(4) The “required consultees” are—

(a) the Authority,

(b) the Scottish Ministers, and

(c) the Welsh Ministers.

(5) The Secretary of State must then—

(a) make such revisions to the draft as the Secretary of State considers
appropriate as a result of responses to the consultation under
subsection (3)(b), and

(b) 5issue the revised draft for the purposes of further consultation about it
to the required consultees and to such other persons as the Secretary of
State considers appropriate.

(6) The Secretary of State must then—

(a) make any further revisions to the draft that the Secretary of State
10considers appropriate as a result of responses to the consultation under
subsection (5)(b), and

(b) prepare a report summarising those responses and the changes (if any)
that the Secretary of State has made to the draft as a result.

(7) The Secretary of State must lay before Parliament—

(a) 15the statement as revised under subsection (6)(a), and

(b) the report prepared under subsection (6)(b).

(8) The statement as laid under subsection (7)(a) must have been approved by a
resolution of each House of Parliament before the Secretary of State may
designate it as the strategy and policy statement under section 109.

(9) 20The requirement under subsection (3)(a) to prepare a draft of a statement may
be satisfied by preparation carried out before, as well as preparation carried
out after, the passing of this Act.

114 Principal objective and general duties in preparation of statement

(1) Sections 4AA to 4B of the 1986 Act (principal objective and general duties)
25apply in relation to the relevant function of the Secretary of State under this
Part as they apply in relation to functions of the Secretary of State under Part 1
of that Act.

(2) Sections 3A to 3D of EA 1989 (principal objective and general duties) apply in
relation to the relevant function of the Secretary of State under this Part as they
30apply in relation to functions of the Secretary of State under Part 1 of that Act.

(3) The “relevant function” is the Secretary of State’s function of determining the
policy outcomes to be set out in the strategy and policy statement (whether
when the statement is first prepared under this Part or when it is reviewed
under section 112).

115 35Reporting requirements

(1) The Utilities Act 2000 is amended as follows.

(2) After section 4 insert—

“4A Information in relation to strategy and policy statement

(1) As soon as reasonably practicable after the designation of a statement
40as the strategy and policy statement, the Authority must publish a
document setting out the required information in relation to the
statement.

(2) The Authority must include the required information in relation to a
strategy and policy statement in the forward work programme for each
financial year, subject to making such modifications to the information
as the Authority considers appropriate from the version as last
5published under this subsection.

(3) The required information in relation to a strategy and policy statement
to be set out in a document or forward work programme is—

(a) the strategy the Authority intends to adopt for the purpose of
furthering the delivery of the policy outcomes contained in the
10statement (both in respect of the year in or for which the
document or programme is issued and beyond);

(b) the things the Authority proposes to do in implementing that
strategy (including when the Authority proposes to do them);

(c) the ways in which the Authority has had regard to the strategic
15priorities contained in the statement in setting out the
information required under paragraphs (a) and (b).

(4) The duty under subsection (1) does not apply if—

(a) the Authority does not think it reasonably practicable to publish
the document mentioned in that subsection before the time
20when the Authority is next required to publish a forward work
programme, and

(b) the Authority includes the required information in that forward
work programme.

(5) The duty under subsection (2) does not apply in relation to the first
25financial year beginning after the designation of the statement if—

(a) the Authority does not think it reasonably practicable to include
the required information in the forward work programme for
that year, and

(b) the Authority includes the required information in a document
30published under subsection (1).

(6) The duty under subsection (2) does not apply in relation to a financial
year if the Secretary of State gives notice to the Authority under this
subsection that the statement’s designation—

(a) will be withdrawn before the beginning of the year, or

(b) 35is expected to have been withdrawn before the beginning of the
year.

(7) Subsections (4) to (6) of section 4 (notice requirements) apply to a
document published under subsection (1) as they apply to a forward
work programme.

(8) 40In this section—

• “designation”, in relation to a strategy and policy statement,
  means designation of the statement by the Secretary of State
  under Part 4 of the Energy Act 2013;

• “forward work programme” has the meaning given by section
  454(1);

• “policy outcomes”, “strategic priorities” and “strategy and policy
  statement” have the same meaning as in Part 4 of the Energy Act
  2013.”

(3) In section 5 (annual and other reports of Authority), after subsection (2)
insert—

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

(a) the ways in which the Authority has carried out its duties under
5section 110(1) and (2) of the Energy Act 2013 in relation to the
strategy and policy statement (so far as the statement’s
designation was in effect during the whole or any part of the
year), and

(b) the extent to which the Authority has done the things set out
10under section 4A in a forward work programme or other
document as the things the Authority proposed to do during
that year in implementing its strategy for furthering the
delivery of the policy outcomes contained in the statement (see
subsection (3)(b) of that section).

(2B) 15The report mentioned in subsection (2A) must, in particular, include—

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

(b) 20if the Authority has failed to do any of the things mentioned in
subsection (2A)(b), an explanation for the failure and the actions
the Authority proposes to take to remedy it.

(2C) In subsections (2A) and (2B)—

• “forward work programme” has the meaning given by section
  254(1);

• “policy outcomes” and “strategy and policy statement” have the
  same meaning as in Part 4 of the Energy Act 2013.”

116 Consequential provision

(1) The following provisions are repealed (guidance about the making by the
30Authority of a contribution towards the attainment of social or environmental
policies)—

(a) sections 4AB and 4B(1) of the 1986 Act, and

(b) sections 3B and 3D(1) of EA 1989.

(2) In section 4AA(5) of the 1986 Act, after “(2),” insert “and to section 110(2) of the
35Energy Act 2013 (duty to carry out functions in manner best calculated to
further delivery of policy outcomes)”.

(3) In section 3A(5) of EA 1989, after “(2),” insert “and to section 110(2) of the
Energy Act 2013 (duty to carry out functions in manner best calculated to
further delivery of policy outcomes)”.

Part 5 Miscellaneous

Consumer redress orders

117 Consumer redress orders

5Schedule 14 (which enables the Authority to impose requirements on a
regulated person to take remedial action in respect of loss, damage or
inconvenience caused to consumers of gas or electricity) has effect.

Offshore transmission

118 Offshore transmission systems

(1) 10EA 1989 is amended as follows.

(2) In section 4 (prohibition on unlicensed supply), after subsection (3A) insert—

“(3AA) Subsection (3A) is subject to section 6F (offshore transmission during
commissioning period).”

(3) After section 6E insert—

“6F 15Offshore transmission during commissioning period

(1) For the purposes of this Part a person is not to be regarded as
participating in the transmission of electricity if the following four
conditions are met.

(2) The first condition is that the transmission takes place over an offshore
20transmission system (“the system”) or anything forming part of it.

(3) The second condition is that the transmission takes place during a
commissioning period (see section 6G).

(4) The third condition is that—

(a) a request has been made to the Authority in accordance with the
25tender regulations for a tender exercise to be held for the
granting of an offshore transmission licence in respect of the
system,

(b) the Authority has determined in accordance with those
regulations that the request relates to a qualifying project, and

(c) 30the system, or anything forming part of it, has not been
transferred as a result of the exercise to the successful bidder.

(5) The fourth condition is that—

(a) the person who is the developer in relation to the tender
exercise is also the operator of a relevant generating station, and

(b) 35the construction or installation of the system is being or has
been carried out by, or by a combination of, any of the
following—

(i) the person mentioned in paragraph (a);

(ii) a body corporate associated with that person at any time
40during the period of construction or installation;

(iii) a previous developer;

(iv) a body corporate associated with a previous developer
at any time during the period of construction or
installation.

(6) 5For the purposes of subsection (1), it does not matter whether or not the
person mentioned in that subsection is the developer in relation to the
tender exercise.

(7) For the purposes of subsection (5)(b)(iii) and (iv), a person is a
“previous developer” in relation to the system if—

(a) 10the person does not fall within subsection (5)(a), but

(b) at any time during the period of construction or installation, the
person was the developer in relation to the tender exercise.

(8) In this section—

• “associated”, in relation to a body corporate, is to be construed in
  15accordance with paragraph 37 of Schedule 2A;

• “developer”, in relation to a tender exercise, means any person
  within section 6D(2)(a) (person who makes the connection
  request, including any person who is to be so treated by virtue
  of section 6D(4));

• 20“offshore transmission” has the meaning given by section 6C(6);

• “offshore transmission licence” has the meaning given by section
  6C(5);

• “offshore transmission system” means a transmission system used
  for purposes connected with offshore transmission;

• 25“operator”, in relation to a generating station, means the person
  who is authorised to generate electricity from that station—

  (a)

  by a generation licence granted under section 6(1)(a), or

  (b)

  in accordance with an exemption granted under section
  5(1);

• 30“qualifying project” is to be construed in accordance with the
  tender regulations;

• “successful bidder” and “tender exercise” have the same meanings
  as in section 6D;

• “relevant generating station”, in relation to an offshore
  35transmission system, means a generating station that generates
  electricity transmitted over the system;

• “the tender regulations” means regulations made under section
  6C.

6G Section 6F: meaning of “commissioning period”

(1) 40For the purposes of section 6F(3), transmission over an offshore
transmission system (or anything forming part of it) takes place during
a “commissioning period” if it takes place at any time—

(a) before a completion notice is given in respect of the system, or

(b) during the period of 18 months beginning with the day on
45which such a notice is given.

(2) A “completion notice”, in relation to a transmission system, is a notice
which—