Energy Bill (HC Bill 135)

(c) the ways in which the Authority has had regard to the strategic
priorities 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) 5the Authority does not think it reasonably practicable to publish
the document mentioned in that subsection before the time
when the Authority is next required to publish a forward work
programme, and

(b) the Authority includes the required information in that forward
10work programme.

(5) The duty under subsection (2) does not apply in relation to the first
financial 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
15that year, and

(b) the Authority includes the required information in a document
published 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
20subsection that the statement’s designation—

(a) will be withdrawn before the beginning of the year, or

(b) is expected to have been withdrawn before the beginning of the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

(7) Subsections (4) to (6) of section 4 (notice requirements) apply to a
25document published under subsection (1) as they apply to a forward
work programme.

(8) In this section—

• “designation”, in relation to a strategy and policy statement,
  means designation of the statement by the Secretary of State
  30under Part 5 of the Energy Act 2013;

• “forward work programme” has the meaning given by section
  4(1);

• “policy outcomes”, “strategic priorities” and “strategy and policy
  statement” have the same meaning as in Part 5 of the Energy Act
  352013.”

(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
40section 114(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
45under 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) The 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,
5and

(b) if 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)—

• 10“forward work programme” has the meaning given by section
  4(1);

• “policy outcomes” and “strategy and policy statement” have the
  same meaning as in Part 5 of the Energy Act 2013.”

120 Consequential provision

(1) 15The following provisions are repealed (guidance about the making by the
Authority 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) 20In section 4AA(5) of the 1986 Act, after “(2),” insert “and to section 114(2) of the
Energy 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 114(2) of the
Energy Act 2013 (duty to carry out functions in manner best calculated to
25further delivery of policy outcomes)”.

Part 6 Consumer Protection and Miscellaneous

CHAPTER 1 Consumer Protection

Domestic tariffs

121 30Power to modify energy supply licences: domestic supply contracts

(1) The Secretary of State may modify—

(a) a condition of a particular licence under section 7A(1) of the Gas Act
1986 (supply licences);

(b) the standard conditions incorporated in licences under that provision
35by virtue of section 8 of that Act;

(c) a condition of a particular licence under section 6(1)(d) of EA 1989
(supply licences);

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

(2) 40The power under subsection (1) may be exercised for the purpose only of—

(a) promoting competition in domestic supplies of gas and electricity; or

(b) requiring licence holders to change the domestic tariffs or other terms
of domestic supply contracts so as to reduce the costs to their domestic
customers for supplies of gas or electricity.

(3) 5A modification under subsection (1) may, in particular, make provision—

(a) requiring a licence holder to adopt one or more standard domestic
tariffs;

(b) for specifying a limit on the number of domestic tariffs, or domestic
tariffs of a particular category, a licence holder may adopt;

(c) 10about discretionary terms (and may in particular require the same
discretionary terms to be offered in connection with, or incorporated
into, all domestic supply contracts of any particular category);

(d) for requiring a licence holder to provide information about its domestic
tariffs and other supply contract terms, including information for
15enabling or facilitating the comparison—

(i) of different domestic tariffs or supply contract terms of the
licence holder;

(ii) of domestic tariffs and supply contract terms of different licence
holders;

(e) 20for requiring a licence holder to change the domestic tariff or other
supply contract terms on which it supplies gas or electricity to a
domestic customer by—

(i) switching to a different domestic tariff or different supply
contract terms, unless the customer objects, or

(ii) 25offering the customer, or inviting the customer to switch to, a
different domestic tariff or different supply contract terms.

(4) Provision that may be included in a licence by virtue of subsection (3)(d) may
in particular—

(a) require a licence holder to provide each domestic customer with
30information—

(i) about the customer’s existing domestic tariffs and supply
contract terms;

(ii) about the expected cost to the customer of supplies under the
customer’s existing domestic supply contract and on one or
35more other domestic tariffs (including the lowest domestic tariff
for the customer) or other supply contract terms of the licence
holder;

(iii) about how to switch to different supply contract terms;

(b) make provision about the format in which information is to be
40provided, which may in particular require information to be
provided—

(i) in the form of a code or otherwise in a format readable by an
electronic device, or which facilitates processing of the
information by means of an electronic device, or

(ii) 45in the case of information about a domestic tariff or supply
contract terms, in the form of a single figure or set of figures.

(5) Provision included in a licence by virtue of the power in subsection (1)—

(a) may make provision for specifying how any domestic tariff (including
a licence holder’s lowest domestic tariff for a customer), or other supply

contract terms, is or are to be identified for the purpose of any relevant
provision;

(b) may make provision about the calculation or estimation of any amount
or figure for the purpose of a relevant provision, which may, in
5particular, include provision—

(i) about assumptions to be made;

(ii) requiring information about a customer’s circumstances or
previous consumption of gas or electricity to be taken into
account;

(c) 10may confer functions on the Secretary of State or the Authority;

(d) may make different provision for different kinds of domestic customers
or different supply contract terms, or otherwise in relation to different
cases;

(e) may make provision generally or only in relation to specified categories
15of domestic customers, domestic tariffs or domestic supply contracts or
otherwise only in relation to specified cases or subject to exceptions;

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

(g) may do any of the things authorised for licences of that type by section
7B(5)(a), (6) or (7) of the Gas Act 1986 or section 7(3), (4), (5) or (6A) of
20EA 1989.

(6) The power in subsection (1)—

(a) 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);

(b) 25may be exercised differently in different cases or circumstances;

(c) includes a power to make consequential modifications.

(7) In this section—

• “discretionary terms”, in relation to a domestic supply contract (or
  proposed domestic supply contract), means the supply contract terms
  30other than the principal terms;

• “domestic customer” means a customer under a domestic supply contract;

• “domestic supply contract” means a contract for the supply of gas or
  electricity at domestic premises wholly or mainly for domestic
  purposes;

• 35“domestic tariff”, in relation to a domestic supply contract (or proposed
  domestic supply contract), means the principal terms of the contract;

• “modify” includes amend, add to or remove, and reference to
  modifications are to be construed accordingly;

• “the principal terms”, in relation to a domestic supply contract, means the
  40terms of the contract of the types specified in an order under subsection
  (10);

• “relevant provision” means any provision included in a licence by virtue
  of subsection (1);

• “standard domestic tariff” means a domestic tariff some or all of whose
  45terms are specified by, or in accordance with, a relevant provision;

• “supply contract terms” means the terms and conditions of a domestic
  supply contract.

(8) For the purposes of the definition of “standard domestic tariff”, the terms that
may be specified by, or in accordance with, a relevant provision—

(a) may include a term providing for a charge or rate to be fixed for a
period specified by, or in accordance with, the provision, but

(b) may not otherwise include any term setting a monetary charge or rate.

(9) For the purposes of this section—

(a) 5gas or electricity is supplied on a tariff if the supply is made under a
contract whose principal terms are the terms of the tariff; and

(b) a licence holder adopts a tariff if it supplies or offers to supply gas or
electricity on that tariff.

(10) The Secretary of State may by order specify types of terms of a domestic supply
10contract (as to charges and other matters) which are the principal terms of such
a contract.

(11) An order under subsection (10) may—

(a) include incidental, supplementary and consequential provision;

(b) make transitory or transitional provision or savings;

(c) 15make different provision for different domestic supply contracts or
otherwise for different purposes;

(d) make provision subject to exceptions.

(12) An order under subsection (10) is to be made by statutory instrument.

122 Section 121: procedure etc

(1) 20Before making modifications of a licence under section 121(1) the Secretary of
State must—

(a) publish the proposed modifications, and

(b) consult—

(i) the holder of any licence being modified,

(ii) 25the Authority, and

(iii) such other persons as the Secretary of State considers it
appropriate to consult.

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

(3) 30Subsection (4) applies where, after the consultation, the Secretary of State
decides to make the modifications (whether in the form published under
subsection (1)(a) or in a modified form).

(4) The Secretary of State must publish a statement of the decision, which must—

(a) contain details of the modifications to be made under section 121(1);

(b) 35state when the modifications are to take effect.

(5) Where the Secretary of State makes a modification of the standard conditions
of a licence of any type, the Authority must—

(a) make the same modification of those standard conditions for the
purposes of their incorporation in licences of that type granted after
40that time, and

(b) publish the modification.

(6) A modification of part of a standard condition of a particular 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 or Part 1 of
EA 1989.

(7) The power in section 121(1) may not be exercised after 31 December 2018.

123 General duties of Secretary of State

(1) 5Sections 4AA to 4B of the Gas Act 1986 (principal objective and general duties)
apply in relation to functions of the Secretary of State under section 121 or 122
of this Act with respect to holders of licences under section 7A(1) of that Act as
they apply in relation to functions of the Secretary of State under Part 1 of that
Act.

(2) 10Sections 3A to 3D of EA 1989 (principal objective and general duties) apply in
relation to functions of the Secretary of State under section 121 or 122 of this Act
with respect to holders of licences under section 6(1)(d) of that Act as they
apply in relation to functions of the Secretary of State under Part 1 of that Act.

124 Consequential provision

(1) 15The Utilities Act 2000 is amended as follows.

(2) In section 33 (standard conditions of electricity licences), in subsection (1)(f),
omit “76 or”.

(3) In section 81 (standard conditions of gas licences), in subsection (2), for “or
under Chapter 1 of Part 1 or section 76 or 98 of the Energy Act 2011” substitute
20“, under Chapter 1 of Part 1 or section 98 of the Energy Act 2011 or under
section 121 of the Energy Act 2013”.

(4) In the Energy Act 2011, sections 76 to 78 (power to modify energy supply
licences: information about tariffs) are repealed.

Licensable activities

125 25Powers to alter activities requiring licence: activities related to supply
contracts

(1) In section 41C of the Gas Act 1986 (power to alter activities requiring licence),
after subsection (4) insert—

“(4A) For the purposes of subsection (4), activities connected with the supply
30of gas include the following activities, whether or not carried on by a
person supplying gas—

(a) giving advice, information or assistance in relation to contracts
for the supply of gas to persons who are or may become
customers under such contracts, and

(b) 35the provision of any other services to such persons in
connection with such contracts.”

(2) In section 56A of EA 1989 (power to alter activities requiring licence), after
subsection (4) insert—

“(4A) For the purposes of subsection (4), activities connected with the supply
40of electricity include the following activities, whether or not carried on
by a person supplying electricity—

(a) giving advice, information or assistance in relation to contracts
for the supply of electricity to persons who are or may become
customers under such contracts, and

(b) providing any other services to such persons in connection with
5such contracts.”

Consumer redress orders

126 Consumer redress orders

Schedule 14 (which enables the Authority to impose requirements on a
regulated person to take remedial action in respect of loss, damage or
10inconvenience caused to consumers of gas or electricity) has effect.

CHAPTER 2 Miscellaneous

Offshore transmission

127 Offshore transmission systems

(1) EA 1989 is amended as follows.

(2) 15In 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 Offshore transmission during commissioning period

(1) 20For 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
transmission system (“the system”) or anything forming part of it.

(3) 25The 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
tender regulations for a tender exercise to be held for the
30granting 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) the system, or anything forming part of it, has not been
35transferred 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) the construction or installation of the system is being or has
been carried out by or on behalf of, or by or on behalf of a
5combination of, any of the following—

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

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

(iii) a previous developer;

(iv) 10a body corporate associated with a previous developer
at any time during the period of construction or
installation.

(6) For 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
15tender 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) the person does not fall within subsection (5)(a), but

(b) at any time during the period of construction or installation, the
20person 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
  accordance with paragraph 37 of Schedule 2A;

• “developer”, in relation to a tender exercise, means any person
  25within 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));

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

• “offshore transmission licence” has the meaning given by section
  306C(5);

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

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

  (a)

  35by a generation licence granted under section 6(1)(a), or

  (b)

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

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

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

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

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

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

(1) For 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) 5before a completion notice is given in respect of the system, or

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

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

(a) 10is given to the Authority by the relevant co-ordination licence
holder in accordance with the co-ordination licence, and

(b) states that it would be possible to carry on an activity to which
section 4(1)(b) applies by making available for use that system.

(3) The Secretary of State may by order amend subsection (1) so as to
15specify a period of 12 months in place of the period of 18 months.

(4) An order under subsection (3) may be made only so as to come into
force during the period—

(a) beginning 2 years after the day on which section 127 of the
Energy Act 2013 comes into force, and

(b) 20ending 5 years after that day.

(5) An amendment made by an order under subsection (3) does not apply
in relation to any transmission of electricity over a transmission system
if—

(a) but for the making of the order, the person participating in the
25transmission would, by virtue of section 6F, have been regarded
as not participating in the transmission, and

(b) the determination mentioned in subsection (4)(b) of that section
in relation to the system was made on or before the day on
which the order is made.

(6) 30In this section—

• “co-ordination licence” has the same meaning as in Schedule 2A
  (see paragraph 38(1) of that Schedule);

• “relevant co-ordination licence-holder” has the meaning given by
  paragraph 13(4) of Schedule 2A.

6H 35Sections 6F and 6G: modification of codes or agreements

(1) The Authority may—

(a) modify a code maintained in accordance with the conditions of
a transmission licence or a distribution licence;

(b) modify an agreement that gives effect to a code so maintained.

(2) 40The Authority may make a modification under subsection (1) only if it
considers it necessary or desirable for the purpose of implementing or
facilitating the operation of section 6F or 6G.

(3) The power to make modifications under subsection (1) includes a
power to make incidental, supplemental, consequential or transitional
45modifications.

(4) The Authority must consult such persons as the Authority considers
appropriate before making a modification under subsection (1).

(5) Subsection (4) may be satisfied by consultation before, as well as
consultation after, the passing of the Energy Act 2013.

(6) 5As soon as reasonably practicable after making a modification under
subsection (1), the Authority must publish a notice stating its reasons
for making it.

(7) A notice under subsection (6) is to be published in such manner as the
Authority considers appropriate for the purpose of bringing the
10matters to which the notice relates to the attention of persons likely to
be affected by it.

(8) A modification under subsection (1) may not be made after the end of
the period of 7 years beginning with the day on which section 127 of the
Energy Act 2013 comes into force.”

(4) 15In section 64 (interpretation of Part 1), in subsection (1B) at the end insert “and
section 6F”.

Fees

128 Fees for services provided for energy resilience purposes

(1) The Secretary of State may require fees to be paid for services or facilities
20provided or made available by the Secretary of State in the exercise of energy
resilience powers.

(2) “Energy resilience powers” are any powers exercised by the Secretary of State
for the purposes of, or in connection with, preventing or minimising disruption
to the energy sector in Great Britain (including disruption to the supply of fuel
25in Great Britain).

(3) The amount of any fee charged under this section is—

(a) such amount as may be specified in, or determined by or in accordance
with, regulations made by the Secretary of State, or

(b) if no such regulations are made, an amount specified in, or determined
30by or in accordance with, a direction given by the Secretary of State for
the purposes of this section.

(4) Regulations or a direction under this section may provide for the amounts of
fees to be different in different cases and, in particular, for fees in respect of the
exercise of the same power to be of different amounts in different
35circumstances.

(5) Regulations under subsection (3)(a) must be made by statutory instrument and
any such instrument is subject to annulment in pursuance of a resolution of
either House of Parliament.

(6) The Secretary of State must lay before Parliament a statement of any fees
40specified in, or determined by or in accordance with, a direction given under
subsection (3)(b).