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(1) | Subject to the rest of this section, this Act extends to England and Wales and |
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(2) | The following also extend to Northern Ireland— |
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(i) | Chapter 1 (general considerations), |
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(ii) | Chapter 2 (contracts for difference), |
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(iii) | Chapter 4 (investment contracts), |
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(iv) | Chapter 7 (the renewables obligation: transitional |
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(v) | Chapter 8 (emissions performance standard), and |
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(vi) | section 47 (exemption from liability in damages); |
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(b) | subject to subsections (4) and (5), Part 3 (nuclear regulation); |
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(3) | Section 129 extends to England and Wales and Northern Ireland only. |
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(4) | Part 2 of Schedule 8 extends to England and Wales and Scotland only. |
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(5) | The amendments made by Schedule 12 have the same extent as the provisions |
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(a) | paragraphs 16(3), 18(6), 19(6), 20(2)(b) and (3) and 21 (amendments of |
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certain provisions of the Nuclear Installations Act 1965) extend to |
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England and Wales and Scotland only; |
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(b) | the other amendments in that Schedule of the Nuclear Installations Act |
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1965 extend to England and Wales, Scotland and Northern Ireland |
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(c) | paragraphs 29 to 39 (amendments of the Nuclear Safeguards and |
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Electricity (Finance) Act 1978 and Nuclear Safeguards Act 2000) extend |
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to England and Wales, Scotland and Northern Ireland only; |
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(d) | paragraphs 40 to 42 (amendments of the Radioactive Substances Act |
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1993) extend to Scotland only. |
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(1) | The provisions of this Act come into force on such day as the Secretary of State |
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may by order made by statutory instrument appoint, subject to subsections (2) |
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(2) | The following provisions come into force at the end of the period of 2 months |
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beginning with the day on which this Act is passed— |
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(a) | Chapter 5 of Part 2 (conflicts of interest and contingency |
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(b) | Chapter 6 of Part 2 (access to markets); |
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(c) | Chapter 7 of Part 2 (renewables obligation: transitional arrangements); |
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(d) | Chapter 8 of Part 2 (emissions performance standard); |
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(e) | Part 5 (strategy and policy statement), other than section 120(1) |
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(f) | sections 121 to 124 (domestic tariffs: modifications of energy supply |
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(g) | section 125 (powers to alter activities requiring licences: activities |
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related to supply contracts); |
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(h) | section 126 (consumer redress orders); |
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(i) | section 127 (offshore transmission systems); |
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(j) | section 129 (fees in respect of decommissioning and clean-up of nuclear |
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(3) | The following provisions come into force on the day on which this Act is |
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(a) | Chapter 1 of Part 2 (general considerations); |
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(b) | Chapter 2 of Part 2 (contracts for difference); |
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(c) | Chapter 3 of Part 2 (capacity market); |
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(d) | Chapter 4 of Part 2 (investment contracts); |
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(e) | Chapter 9 of Part 2 (miscellaneous); |
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(f) | section 95 (subordinate legislation under Part 3); |
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(g) | section 96(1) (power to make transitional provision in relation to Part |
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(h) | section 97 (transfer of staff etc for purposes of Part 3); |
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(i) | section 98(2) (power to make consequential amendments in relation to |
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(j) | section 100 (review of Part 3); |
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(k) | section 130 (review of certain provisions of Part 6); |
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(l) | the provisions of this Part (including this section). |
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(4) | An order under subsection (1) may— |
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(a) | appoint different days for different purposes; |
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(b) | make transitional provision and savings. |
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This Act may be cited as the Energy Act 2013. |
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CFD counterparties: transfer schemes |
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Power to make transfer schemes |
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1 (1) | The Secretary of State may make one or more schemes for the transfer of |
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designated property, rights or liabilities of a person who has ceased to be a |
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CFD counterparty (“the transferor”) to a person who is a CFD counterparty |
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(2) | On the transfer date, the designated property, rights and liabilities are |
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transferred and vest in accordance with the scheme. |
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(3) | The rights and liabilities that may be transferred by a scheme include those |
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arising under or in connection with a contract of employment. |
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(4) | A certificate by the Secretary of State that anything specified in the certificate |
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has vested in any person by virtue of a scheme is conclusive evidence for all |
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“designated”, in relation to a scheme, means specified in or determined |
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in accordance with the scheme; |
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“property” includes interests of any description; |
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“the transfer date” means a date specified by a scheme as the date on |
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which the scheme is to have effect. |
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2 (1) | A scheme may make provision— |
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(a) | for anything done by or in relation to the transferor in connection |
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with any property, rights or liabilities transferred by the scheme to |
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be treated as done, or to be continued, by or in relation to the |
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(b) | for references to the transferor in any agreement (whether written or |
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not), instrument or other document relating to any property, rights |
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or liabilities transferred by the scheme to be treated as references to |
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(c) | about the continuation of legal proceedings; |
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(d) | for transferring property, rights or liabilities which could not |
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otherwise be transferred or assigned; |
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(e) | for transferring property, rights and liabilities irrespective of any |
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requirement for consent which would otherwise apply; |
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(f) | for preventing a right of pre-emption, right of reverter, right of |
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forfeiture, right to compensation or other similar right from arising |
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or becoming exercisable as a result of the transfer of property, rights |
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(g) | for dispensing with any formality in relation to the transfer of |
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property, rights or liabilities by the scheme; |
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(h) | for transferring property acquired, or rights or liabilities arising, |
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after the scheme is made but before it takes effect; |
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(i) | for apportioning property, rights or liabilities; |
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(j) | for creating rights, or imposing liabilities, in connection with |
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property, rights or liabilities transferred by the scheme; |
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(k) | for requiring the transferee to enter into any agreement of any kind, |
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or for a purpose, specified in or determined in accordance with the |
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(2) | Sub-paragraph (1)(b) does not apply to references in primary legislation or |
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in subordinate legislation. |
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3 | A scheme may contain provision for the payment of compensation by the |
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Secretary of State to any person whose interests are adversely affected by it. |
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Meaning of “investment contract” |
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1 (1) | In this Schedule an “investment contract” means a contract with an |
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electricity generator which— |
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(a) | is entered into by the Secretary of State, whether before or after this |
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Schedule comes into force, on or before the earlier of 31st December |
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2015 and the date on which a definition of an “eligible generator” |
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first comes into force by virtue of section 10(3), |
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(b) | if it relates to an electricity generating station in Northern Ireland, is |
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entered into with the consent of the Department of Enterprise, Trade |
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(c) | includes an obligation for the parties to make payments under the |
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contract based on the difference between a strike price and a |
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reference price in relation to electricity generated, |
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(d) | is laid before Parliament in accordance with sub-paragraph (4). |
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(2) | If the contract is entered into before the coming into force of this Schedule, |
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the obligation referred to in sub-paragraph (1)(c) must be conditional on the |
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being in force of this Schedule. |
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(3) | In sub-paragraph (1)— |
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“electricity generator” means— |
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(a) | a person who intends to establish an electricity generating |
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station or alter an existing station; |
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(b) | a person who intends to operate or participate in the |
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operation of an electricity generating station that is to be |
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(c) | a person who has an interest in a company falling within |
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“reference price” means the sum that is specified in, or determined |
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under, the contract as the reference price in respect of electricity |
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generated in the period specified in, or determined under, the |
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“Northern Ireland” includes so much of the internal waters and |
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territorial sea of the United Kingdom as are adjacent to Northern |
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“strike price” means the sum that is specified in, or determined under, |
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the contract as the strike price in respect of electricity generated in |
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the period specified in, or determined under, the contract. |
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(4) | A contract is laid before Parliament in accordance with this sub-paragraph |
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if it is laid by the Secretary of State at any time after the introduction into |
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Parliament of the Bill that becomes this Act— |
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(a) | with a statement falling within sub-paragraph (5), and |
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(b) | after the Secretary of State has excluded from the contract— |
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(i) | any confidential information (see paragraph 3), or |
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(ii) | if the investment contract does not contain any confidential |
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information, any information to which paragraph 3(3) |
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applies and which the Secretary of State considers it |
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(5) | A statement falls within this sub-paragraph if it is a statement— |
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(a) | that the Secretary of State considers that payments falling within |
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paragraph 1(1)(c) which would be made under the contract would |
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encourage low carbon electricity generation, |
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(b) | that the Secretary of State considers that without the contract there is |
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a significant risk that the electricity generation to which the contract |
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relates will not occur or will be significantly delayed, and |
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(c) | summarising the regard that the Secretary of State has had, in |
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deciding to enter the contract, to the matters set out in subsection (2) |
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(6) | In sub-paragraph (5) “low carbon electricity generation” means electricity |
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generation which in the opinion of the Secretary of State will contribute to a |
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reduction in emissions of greenhouse gases; and “greenhouse gas” has the |
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meaning given by section 92(1) of the Climate Change Act 2008. |
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(7) | The Secretary of State must publish an investment contract in the form in |
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which it was laid before Parliament as soon as reasonably practicable after it |
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Varied investment contract |
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2 (1) | An investment contract is a “varied investment contract” for the purposes of |
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this paragraph if the variation— |
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(a) | is agreed at any time before or after this Schedule comes into force, |
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(b) | will, in the opinion of the Secretary of State, materially increase the |
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likely cost to consumers of electricity. |
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(2) | A varied investment contract is an “investment contract” for the purposes of |
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this Schedule only if it is laid before Parliament (at any time after the |
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introduction into Parliament of the Bill that becomes this Act)— |
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(a) | with a statement of why, having regard to the likely cost to |
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consumers of electricity, the Secretary of State believes that the |
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variation is appropriate, and |
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(b) | after the Secretary of State has excluded from it— |
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(i) | any confidential information (see paragraph 3), or |
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(ii) | if the varied investment contract does not contain any |
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confidential information, any information to which |
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paragraph 3(3) applies and which the Secretary of State |
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considers it appropriate to exclude. |
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(3) | The Secretary of State must publish a varied investment contract in the form |
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in which it was laid before Parliament as soon as reasonably practicable after |
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(4) | This paragraph does not apply in respect of a variation which is made in |
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accordance with the terms of an investment contract. |
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3 (1) | For the purposes of paragraphs 1 and 2, “confidential information” means |
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specified information to which sub-paragraph (3) applies and in relation to |
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which it is an initial term of the contract that it should not be disclosed. |
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(2) | For the purposes of sub-paragraph (1)— |
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(a) | a term is an initial term if it is agreed at the time the investment |
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contract is entered into or, in relation to a varied investment contract, |
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at the time the variation is agreed; |
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(b) | “specified” means specified in the initial term. |
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(3) | This sub-paragraph applies to information if it is— |
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(a) | not the strike price or the reference price; |
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(b) | information which, in the opinion of the Secretary of State at the time |
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the initial term is agreed, constitutes a trade secret; |
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(c) | information the disclosure of which, in the opinion of the Secretary |
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of State at that time, would or would be likely to prejudice the |
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commercial interests of any person; |
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(d) | information the disclosure of which would, in the opinion of the |
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Secretary of State at that time, constitute a breach of confidence |
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actionable by any person. |
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Interpretation for the purposes of this Schedule |
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“CFD” is to be construed in accordance with section 6(2); |
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“CFD counterparty” is to be construed in accordance with section 7(2); |
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“electricity supplier”, subject to any provision made by regulations, |
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means a person who is a holder of a licence to supply electricity |
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(a) | section 6(1)(d) of EA 1989, or |
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(b) | Article 10(1)(c) of the Electricity (Northern Ireland) Order |
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1992 (S.I. 1992/231 (N.I.1)); |
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“investment contract counterparty” is to be construed in accordance |
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“national system operator” means the person operating the national |
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transmission system for Great Britain (and for this purpose |
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“transmission system” has the same meaning as in EA 1989 - see |
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section 4(4) of that Act); |
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“regulations” means regulations made under paragraph 6. |
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(2) | References in this Schedule to a CFD counterparty (apart from the reference |
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in paragraph 9(1)(c), 9(1)(d) and 16) are to a CFD counterparty acting as a |
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counterparty in relation to an investment contract (where any property, |
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rights or liabilities under the contract have been transferred to the CFD |
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counterparty by a scheme under paragraph 16). |
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Investment contract counterparty |
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5 (1) | The Secretary of State may by order made by statutory instrument designate |
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an eligible person to be a counterparty for investment contracts. |
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(2) | A person may be designated if the person is— |
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(a) | a company formed and registered under the Companies Act 2006, or |
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(b) | a public authority, including any person any of whose functions are |
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(3) | A designation may be made only with the consent of the person designated. |
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(4) | More than one designation may have effect under this paragraph. |
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(5) | A designation ceases to have effect if— |
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(a) | the Secretary of State by order made by statutory instrument revokes |
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(b) | the person withdraws consent to the designation by giving not less |
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than 28 days’ notice in writing to the Secretary of State. |
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(6) | As soon as reasonably practicable after a designation ceases to have effect |
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the Secretary of State must make a transfer scheme under paragraph 16 to |
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ensure the transfer of all rights and obligations under any investment |
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contract to which the person who has ceased to be an investment contract |
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counterparty was a party. |
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(7) | If necessary for the purposes of a transfer scheme required to be made by |
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virtue of sub-paragraph (6), the Secretary of State must, so far as reasonably |
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practicable, exercise the power to designate so as to ensure that at least one |
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designation has effect under this paragraph. |
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(8) | Regulations may include provision about the period of time for which, and |
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the circumstances in which, a person who has ceased to be an investment |
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|
