Energy Bill (HL Bill 30)

(l) if the TUPE regulations do not apply in relation to the transfer, make
provision which is the same or similar.

(2) Sub-paragraph (1)(b) does not apply to references in primary legislation or
in subordinate legislation.

3 5For the purposes of this Schedule—

(a) an individual who holds employment in the civil service is to be
treated as employed by virtue of a contract of employment, and

(b) the terms of the individual’s employment in the civil service are to be
regarded as constituting the terms of the contract of employment.

Section 132

10SCHEDULE 14 Consumer redress orders

Part 1 Gas consumers

1 (1) The Gas Act 1986 is amended as set out in sub-paragraphs (2) to (7).

(2) 15After section 30F insert—

“30G Consumer redress orders

(1) This section applies where the Authority is satisfied that—

(a) a regulated person has contravened, or is contravening, any
relevant condition or requirement, and

(b) 20as a result of the contravention, one or more consumers have
suffered loss or damage or been caused inconvenience.

(2) The Authority may make an order (a “consumer redress order”)
requiring the regulated person to do such things as appear to the
Authority necessary for the purposes of—

(a) 25remedying the consequences of the contravention, or

(b) preventing a contravention of the same or a similar kind from
being repeated.

(3) A consumer redress order must specify the following—

(a) the regulated person to whom the order applies;

(b) 30the contravention in respect of which the order is made;

(c) the affected consumers, or a description of such consumers;

(d) the requirements imposed by the order;

(e) the date by which the regulated person must comply with
such requirements.

(4) 35As soon as practicable after making a consumer redress order, the
Authority must—

(a) serve a copy of the order on the regulated person to whom
the order applies, and

(b) either—

(i) serve a copy of the order on each affected consumer,
or

(ii) publish the order in such manner as the Authority
considers appropriate for the purpose of bringing it to
5the attention of affected consumers.

(5) The date specified in a consumer redress order under subsection
(3)(e) may not be earlier than the end of the period of 7 days from the
date of the service of a copy of the order on the regulated person.

(6) Different dates may be specified under subsection (3)(e) in relation to
10different requirements imposed by the order.

(7) This section is subject to sections 30H to 30O.

(8) In this section and in sections 30H to 30O—

• “affected consumers”, in relation to a consumer redress order
  (or proposed order), are those consumers that the Authority
  15is satisfied have suffered loss or damage, or been caused
  inconvenience, as a result of the contravention in respect of
  which the order is (or would be) made;

• “consumers” means consumers in relation to gas conveyed
  through pipes;

• 20“consumer redress order” means an order under subsection (2).

30H Remedial action under a consumer redress order

(1) The things mentioned in section 30G(2) that a regulated person may
be required to do under a consumer redress order (“the required
remedial action”) include, in particular—

(a) 25paying an amount to each affected consumer by way of
compensation for the loss or damage suffered, or for the
inconvenience caused, as a result of the contravention;

(b) preparing and distributing a written statement setting out the
contravention and its consequences;

(c) 30terminating or varying any contracts entered into between
the regulated person and affected consumers.

(2) Where the required remedial action includes the payment of
compensation, the order must specify—

(a) the amount of compensation to be paid, and

(b) 35the affected consumers, or a description of such consumers,
to whom it is to be paid.

(3) Where the required remedial action includes the preparation and
distribution of a statement, the order may specify the information to
be contained in the statement and the form and manner in which it is
40to be distributed.

(4) The manner so specified may in particular include—

(a) sending a copy of the statement to each affected consumer;

(b) publishing the statement in such manner as the Authority
considers appropriate for the purpose of bringing the
45statement to the attention of those consumers.

(5) Where the required remedial action includes the termination or
variation of a contract with an affected consumer—

(a) the order may specify the terms on which the contract is to be
terminated or the way in which it is to be varied,

(b) the requirement has effect only if, and to the extent that, the
affected consumer consents to the termination of the contract
5on those terms or to its variation in that way, and

(c) the order may specify the steps to be taken by the regulated
person for the purpose of enabling the affected consumer to
give such consent.

30I Other procedural requirements in relation to consumer redress orders

(1) 10Before making a consumer redress order the Authority must give
notice stating that it proposes to make the order.

(2) A notice under subsection (1) must specify—

(a) the regulated person to whom the order will apply,

(b) the contravention in respect of which the order is to be made,

(c) 15the affected consumers, or a description of such consumers,

(d) the requirements to be imposed by the order and the period
within which such requirements are to be complied with, and

(e) the time (not being less than 21 days from the relevant date)
by which representations or objections with respect to the
20proposed order may be made,

and the Authority must consider any representations or objections
which are duly made and not withdrawn.

(3) Before varying any proposal stated in a notice under subsection (1)
the Authority must give notice specifying—

(a) 25the proposed variation and the reasons for it, and

(b) the time (not being less than 21 days from the relevant date)
by which representations or objections with respect to the
proposed variation may be made,

and the Authority must consider any representations or objections
30which are duly made and not withdrawn.

(4) Before revoking a consumer redress order the Authority must give
notice—

(a) stating that it proposes to revoke the order and the reasons
for doing so, and

(b) 35specifying the time (not being less than 21 days from the
relevant date) within which representations or objections to
the proposed revocation may be made,

and the Authority must consider any representations or objections
which are duly made and not withdrawn.

(5) 40A notice required to be given under this section is to be given—

(a) by serving a copy of the notice on the regulated person, and

(b) either—

(i) by serving a copy of the notice on each affected
consumer, or

(ii) 45by publishing the notice in such manner as the
Authority considers appropriate for the purpose of
bringing the matters to which the notice relates to the
attention of affected consumers.

(6) The “relevant date”, in relation to a notice under this section, is—

(a) in a case where the notice is published in accordance with
subsection (5)(b)(ii), the date on which it is published;

(b) in any other case, the latest date on which a copy of the notice
5is served in accordance with subsection (5)(a) and (b)(i).

30J Statement of policy with respect to consumer redress orders

(1) The Authority must prepare and publish a statement of policy with
respect to—

(a) the making of consumer redress orders, and

(b) 10the determination of the requirements to be imposed by such
orders (including, in particular, the considerations the
Authority will have regard to in determining such
requirements).

(2) The Authority must have regard to its current statement of policy—

(a) 15in deciding whether to make a consumer redress order in
respect of a contravention, and

(b) in determining the requirements to be imposed by any such
order.

(3) The Authority may revise its statement of policy and, where it does
20so, must publish the revised statement.

(4) Publication under this section is to be in such manner as the
Authority considers appropriate for the purpose of bringing the
matters contained in the statement of policy to the attention of
persons likely to be affected by them.

(5) 25The Authority must consult such persons as it considers appropriate
when preparing or revising its statement of policy.

30K Time limits for making consumer redress orders

(1) Where no final or provisional order has been made in relation to a
contravention, the Authority may not give a consumer redress order
30in respect of the contravention later than the end of the period of 5
years from the time of the contravention.

(2) Subsection (1) does not apply if before the end of that period—

(a) the notice under section 30I(1) relating to the order is served
on the regulated person, or

(b) 35a notice relating to the contravention is served on the
regulated person under section 38(1).

(3) Where a final or provisional order has been made in relation to a
contravention, the Authority may give a consumer redress order in
respect of the contravention only if the notice relating to the
40consumer redress order under section 30I(1) is served on the
regulated person—

(a) within 3 months from the confirmation of the provisional
order or the making of the final order, or

(b) where the provisional order is not confirmed, within 6
45months from the making of the provisional order.

30L Enforcement of consumer redress orders

(1) Compliance with a consumer redress order is enforceable by civil
proceedings by the Authority—

(a) for an injunction or interdict,

(b) 5for specific performance of a statutory duty under section 45
of the Court of Session Act 1988, or

(c) for any other appropriate remedy or relief.

(2) Proceedings under subsection (1) are to be brought—

(a) in England and Wales, in the High Court, or

(b) 10in Scotland, in the Court of Session.

(3) The obligation of a regulated person to comply with a consumer
redress order is a duty owed to any person who may be affected by
a contravention of the order.

(4) Without limiting the Authority’s right to bring civil proceedings
15under subsection (1), a duty owed to any person (“P”) by virtue of
subsection (3) may be enforced by civil proceedings by P for any
appropriate remedy or relief.

(5) For the purposes of subsection (4), the duty owed to P may in
particular be enforced by P as if it were contained in a contract
20between P and the regulated person who owes the duty.

30M Appeals against consumer redress orders

(1) A regulated person in respect of whom a consumer redress order is
made may make an application to the court under this section if the
person is aggrieved by—

(a) 25the making of the order, or

(b) any requirement imposed by the order.

(2) An application under subsection (1) must be made within 42 days
from the date of service on the regulated person of a copy of the
order under section 30G(4)(a).

(3) 30On an application under subsection (1) the court may—

(a) quash the order or any provision of the order, or

(b) vary any such provision in such manner as the court
considers appropriate.

(4) The court may exercise the powers under subsection (3) only if it
35considers it appropriate to do so in all the circumstances of the case
and is satisfied of one or more of the following grounds—

(a) that the making of the order was not within the power of the
Authority under section 30G;

(b) that any of the requirements under section 30G(4) and 30I
40have not been complied with in relation to the making of the
order and the interests of the regulated person have been
substantially prejudiced by the non-compliance;

(c) that it was unreasonable of the Authority to require
something to be done under the order (whether at all or in
45accordance with the provisions of the order).

(5) If an application is made under this section in relation to a consumer
redress order, a requirement imposed by the order does not need to
be carried out in accordance with the order until the application has
been determined.

(6) 5Where the court substitutes a lesser amount of compensation for an
amount required by the Authority in a consumer redress order, it
may require the payment of interest on the substituted amount at
such rate, and from such date, as it considers just and equitable.

(7) Where the court specifies as a date by which any compensation
10under a consumer redress order is to be paid a date before the
determination of the application under this section, it may require
the payment of interest on the amount from that date at such rate as
it considers just and equitable.

(8) Except as provided by this section, the validity of a consumer redress
15order is not to be questioned by any legal proceedings whatever.

(9) In this section “the court” means—

(a) in relation to England and Wales, the High Court;

(b) in relation to Scotland, the Court of Session.

30N Consumer redress orders: miscellaneous

(1) 20If—

(a) compensation is required to be paid under a consumer
redress order, and

(b) it is not paid by the date by which it is required to be paid in
accordance with the order,

25the unpaid balance from time to time carries interest at the rate for
the time being specified in section 17 of the Judgments Act 1838.

(2) The Authority may not make a consumer redress order where it is
satisfied that the most appropriate way of proceeding is under the
Competition Act 1998.

(3) 30The Authority’s power to make a consumer redress order as a result
of a contravention of a relevant condition or requirement is not to be
taken as limiting the Authority’s power to impose a penalty under
section 30A in relation to the same contravention (whether instead
of, or in addition to, making a consumer redress order).

(4) 35The power of the Authority to make a consumer redress order is not
exercisable in respect of any contravention before the coming into
force of Schedule 14 to the Energy Act 2013.

30O Maximum amount of penalty or compensation

(1) The maximum amount of penalty that may be imposed on a
40regulated person in respect of a contravention may not exceed 10 per
cent of the person’s turnover.

(2) The maximum amount of compensation that a regulated person may
be required to pay in respect of a contravention may not exceed 10
per cent of the person’s turnover.

(3) Subsections (1) and (2) are subject to subsection (4) if, in respect of a
contravention, both a penalty is imposed and compensation is
required to be paid.

(4) The maximum amount in total of the penalty and compensation
5combined in respect of the contravention may not exceed 10 per cent
of the regulated person’s turnover.

(5) The Secretary of State may by order provide for how a person’s
turnover is to be determined for the purposes of this section.

(6) An order under subsection (5) may make different provision for
10penalties and compensation.

(7) An order under subsection (5) shall not be made unless a draft of the
instrument containing it has been laid before and approved by a
resolution of each House of Parliament.

(8) In this section—

• 15“compensation” means compensation that a regulated person is
  required to pay by a consumer redress order;

• “penalty” means a penalty imposed on a regulated person
  under section 30A.”

(3) In section 28 (orders for securing compliance), in subsection (8) for “30F”
20substitute “30O”.

(4) In section 30A (penalties), for subsections (8) and (9) substitute—

“(8A) This section is subject to section 30O (maximum amount of penalty
or compensation that may be imposed).”

(5) In the title of section 30E, after “Appeals” insert “against penalties”.

(6) 25In section 38 (power to require information), in subsection (1) for “30F”
substitute “30O”.

(7) In section 64 (provisions as to orders), in subsection (2) for “30A” substitute
“30O”.

(8) An order under section 30A(8) of the Gas Act 1986 that is in force
30immediately before the coming into force of this paragraph—

(a) is, on the coming into force of this paragraph, to have effect as if
made in accordance with section 30O(5) of that Act (as inserted by
this paragraph), and

(b) is to be taken as applying in relation to a requirement to pay
35compensation imposed by a consumer redress order made under
section 30G of that Act (as inserted by this paragraph) as it applies in
relation to a penalty imposed under section 30A of that Act.

Part 2 Electricity consumers

2 (1) 40EA 1989 is amended as set out in sub-paragraphs (2) to (6).

(2) After section 27F insert—

“27G Consumer redress orders

(1) This section applies where the Authority is satisfied that—

(a) a regulated person has contravened, or is contravening, any
5relevant condition or requirement, and

(b) as a result of the contravention, one or more consumers have
suffered loss or damage or been caused inconvenience.

(2) The Authority may make an order (a “consumer redress order”)
requiring the regulated person to do such things as appear to the
10Authority necessary for the purposes of—

(a) remedying the consequences of the contravention, or

(b) preventing a contravention of the same or a similar kind from
being repeated.

(3) A consumer redress order must specify the following—

(a) 15the regulated person to whom the order applies;

(b) the contravention in respect of which the order is made;

(c) the affected consumers, or a description of such consumers;

(d) the requirements imposed by the order;

(e) the date by which the regulated person must comply with
20such requirements.

(4) As soon as practicable after making a consumer redress order, the
Authority must—

(a) serve a copy of the order on the regulated person to whom
the order applies, and

(b) 25either—

(i) serve a copy of the order on each affected consumer,
or

(ii) publish the order in such manner as the Authority
considers appropriate for the purpose of bringing it to
30the attention of affected consumers.

(5) The date specified in a consumer redress order under subsection
(3)(e) may not be earlier than the end of the period of 7 days from the
date of the service of a copy of the order on the regulated person.

(6) Different dates may be specified under subsection (3)(e) in relation to
35different requirements imposed by the order.

(7) This section is subject to sections 27H to 27O.

(8) In this section and in sections 27H to 27O—

• “affected consumers”, in relation to a consumer redress order
  (or proposed order), are those consumers that the Authority
  40is satisfied have suffered loss or damage, or been caused
  inconvenience, as a result of the contravention in respect of
  which the order is (or would be) made;

• “consumers” means consumers in relation to electricity
  conveyed by distribution systems or transmission systems;

• 45“consumer redress order” means an order under subsection (2).

27H Remedial action under a consumer redress order

(1) The things mentioned in section 27G(2) that a regulated person may
be required to do under a consumer redress order (“the required
remedial action”) include, in particular—

(a) 5paying an amount to each affected consumer by way of
compensation for the loss or damage suffered, or for the
inconvenience caused, as a result of the contravention;

(b) preparing and distributing a written statement setting out the
contravention and its consequences;

(c) 10terminating or varying any contracts entered into between
the regulated person and affected consumers.

(2) Where the required remedial action includes the payment of
compensation, the order must specify—

(a) the amount of compensation to be paid, and

(b) 15the affected consumers, or a description of such consumers,
to whom it is to be paid.

(3) Where the required remedial action includes the preparation and
distribution of a statement, the order may specify the information to
be contained in the statement and the form and manner in which it is
20to be distributed.

(4) The manner so specified may in particular include—

(a) sending a copy of the statement to each affected consumer;

(b) publishing the statement in such manner as the Authority
considers appropriate for the purpose of bringing the
25statement to the attention of those consumers.

(5) Where the required remedial action includes the termination or
variation of a contract with an affected consumer—

(a) the order may specify the terms on which the contract is to be
terminated or the way in which it is to be varied,

(b) 30the requirement has effect only if, and to the extent that, the
affected consumer consents to the termination of the contract
on those terms or to its variation in that way, and

(c) the order may specify the steps to be taken by the regulated
person for the purpose of enabling the affected consumer to
35give such consent.

27I Other procedural requirements in relation to consumer redress orders

(1) Before making a consumer redress order the Authority must give
notice stating that it proposes to make the order.

(2) A notice under subsection (1) must specify—

(a) 40the regulated person to whom the order will apply,

(b) the contravention in respect of which the order is to be made,

(c) the affected consumers, or a description of such consumers,

(d) the requirements to be imposed by the order and the period
within which such requirements are to be complied with, and

(e) 45the time (not being less than 21 days from the relevant date)
by which representations or objections with respect to the
proposed order may be made,

and the Authority must consider any representations or objections
which are duly made and not withdrawn.

(3) Before varying any proposal stated in a notice under subsection (1)
the Authority must give notice specifying—

(a) 5the proposed variation and the reasons for it, and

(b) the time (not being less than 21 days from the relevant date)
by which representations or objections with respect to the
proposed variation may be made,

and the Authority must consider any representations or objections
10which are duly made and not withdrawn.

(4) Before revoking a consumer redress order the Authority must give
notice—

(a) stating that it proposes to revoke the order and the reasons
for doing so, and

(b) 15specifying the time (not being less than 21 days from the
relevant date) within which representations or objections to
the proposed revocation may be made,

and the Authority must consider any representations or objections
which are duly made and not withdrawn.

(5) 20A notice required to be given under this section is to be given—

(a) by serving a copy of the notice on the regulated person, and

(b) either—

(i) by serving a copy of the notice on each affected
consumer, or

(ii) 25by publishing the notice in such manner as the
Authority considers appropriate for the purpose of
bringing the matters to which the notice relates to the
attention of affected consumers.

(6) The “relevant date”, in relation to a notice under this section, is—

(a) 30in a case where the notice is published in accordance with
subsection (5)(b)(ii), the date on which it is published;

(b) in any other case, the latest date on which a copy of the notice
is served in accordance with subsection (5)(a) and (b)(i).

27J Statement of policy with respect to consumer redress orders

(1) 35The Authority must prepare and publish a statement of policy with
respect to—

(a) the making of consumer redress orders, and

(b) the determination of the requirements to be imposed by such
orders (including, in particular, the considerations the
40Authority will have regard to in determining such
requirements).

(2) The Authority must have regard to its current statement of policy—

(a) in deciding whether to make a consumer redress order in
respect of a contravention, and

(b) 45in determining the requirements to be imposed by any such
order.