117 Application of the Pipe-lines Act 1962

(1) Subsection (3) applies in relation to any part of the government pipe-line and
storage system which is for the time being owned otherwise than by the
Secretary of State.

(2) 5In subsection (1) “owned” is to be construed in accordance with the definition
of “owner” in section 66(1) of the Pipe-lines Act 1962.

(3) The following sections of that Act, namely—

(a) section 10 (provisions for securing that a pipe-line is so used as to
reduce necessity for construction of others),

(b) 10section 36 (notification of abandonment, cesser of use and resumption
of use of pipe-lines or lengths thereof),

apply in relation to any such part as if it were a pipe-line constructed pursuant
to a pipe-line construction authorisation.

(4) Section 40(2) of that Act (application of the electronic communications code)
15applies—

(a) for the purposes of GPSS works as it applies for the purposes of works
in pursuance of a compulsory rights order,

(b) to a person executing GPSS works as it applies to a person authorised
to execute works in pursuance of such an order.

(5) 20In subsection (4) “GPSS works” means—

(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) 25works 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) 30To 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 4 of the
Energy Act 2013”.

118 35Rights apart from Part 4

(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) 40For the purposes of sections 111, 112 and 116, 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.

119 Repeals

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

(2) The 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-
5lines);

(c) section 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) 10section 12 of the Land Powers (Defence) Act 1958 (extension of
provisions of Requisitioned Land and War Works Acts).

120 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) 15the dissolution of the Oil and Pipelines Agency.

(2) If 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
20subsection (2).

(4) An order under this section may—

(a) include incidental, supplementary and consequential provision;

(b) make transitory or transitional provision or savings;

(c) make different provision for different cases or circumstances or for
25different purposes;

(d) make provision subject to exceptions.

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

121 30Crown application: Part 4

(1) This Part binds the Crown.

(2) No contravention by the Crown of section 113(4) makes the Crown criminally
liable; 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
35contravention.

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

Part 5 Strategy and Policy Statement

122 Designation of statement

(1) The Secretary of State may designate a statement as the strategy and policy
5statement for the purposes of this Part if the requirements set out in section 126
are 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
10government in formulating its energy policy for Great Britain
(“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,
15the Authority or other persons) who are involved in implementing that
policy 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 125) in
such manner as the Secretary of State considers appropriate.

(4) 20For the purposes of this section, energy policy “for Great Britain” includes such
policy 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—

• 25“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);

• “the strategy and policy statement” means the statement for the time
  being designated under subsection (1) as the strategy and policy
  30statement for the purposes of this Part.

123 Duties in relation to statement

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

(2) The Secretary of State and the Authority must carry out their respective
35regulatory 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) Subsection (2) is subject to the application of the principal objective duty in the
carrying out of any such function.

(4) 40“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) other 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
51989;

(b) other 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) 10section 4AA(1B) and (1C) of the 1986 Act;

(b) section 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) 15A notice under subsection (7) must include—

(a) the 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) 20In this section “enactment” includes—

(a) an enactment contained in this Act, and

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

124 Exceptions from section 123 duties

(1) Section 123(1) and (2) do not apply in relation to functions of the Secretary of
25State under sections 36 to 37 of EA 1989.

(2) Section 123(1) and (2) do not apply in relation to anything done by the
Authority—

(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
30section 43(3) of EA 1989.

(3) The duties imposed by section 123(1) and (2) do not affect the obligation of the
Authority 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).

125 35Review

(1) The Secretary of State must review the strategy and policy statement if a period
of 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) 40if later, the time when a review of the statement under this section last
took place.

(3) A 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) the Authority has given notice to the Secretary of State under section
5123(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
statement was not met on the last review (see subsection (12)).

(5) 10The 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) if the change had been so anticipated, it appears to the Secretary of State
15likely 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) leave the statement as it is, or

(c) 20withdraw 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 122 the amended statement as the
strategy and policy statement (and the procedural requirements under section
25126 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) The designation of a statement as the strategy and policy statement ceases to
have effect upon a subsequent designation of an amended statement as the
30strategy 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) the Authority,

(b) the Scottish Ministers,

(c) 35the 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) in the case of a decision on the review to amend the statement under
subsection (6)(a)—

(i) 40at the time when the amended statement is designated as the
strategy and policy statement under section 122, or

(ii) if the amended statement is not so designated, at the time when
the amended statement was laid before Parliament for approval
under section 126(8);

(b) 45in 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
in 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
5approval under section 126(8), but

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

126 Procedural requirements

(1) This section sets out the requirements that must be satisfied in relation to a
10statement before the Secretary of State may designate it as the strategy and
policy statement.

(2) In this section references to a statement include references to a statement as
amended following a review under section 125(6)(a).

(3) The Secretary of State must first—

(a) 15prepare a draft of the statement, and

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

(4) The “required consultees” are—

(a) the Authority,

(b) 20the 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
25subsection (3)(b), and

(b) issue 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) 30make any further revisions to the draft that the Secretary of State
considers 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) 35The Secretary of State must lay before Parliament—

(a) the 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
40designate it as the strategy and policy statement under section 122.

(9) The 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.

127 Principal objective and general duties in preparation of statement

(1) Sections 4AA to 4B of the 1986 Act (principal objective and general duties)
apply 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
5of 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
apply 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
10policy 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 125).

128 Reporting requirements

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

(2) 15After section 4 insert—

“4A Information in relation to strategy and policy statement

(1) As soon as reasonably practicable after the designation of a statement
as the strategy and policy statement, the Authority must publish a
document setting out the required information in relation to the
20statement.

(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
25published 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
30statement (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
35priorities 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
40when 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
45financial 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
5published 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) 10is 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) 15In this section—

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

• “forward work programme” has the meaning given by section
  204(1);

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

(3) In section 5 (annual and other reports of Authority), after subsection (2)
25insert—

“(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
section 123(1) and (2) of the Energy Act 2013 in relation to the
strategy and policy statement (so far as the statement’s
30designation 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
under section 4A in a forward work programme or other
document as the things the Authority proposed to do during
35that 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
40functions during the year has contributed to the delivery of the
policy outcomes contained in the strategy and policy statement,
and

(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
45the Authority proposes to take to remedy it.

(2C) In subsections (2A) and (2B)—

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

Energy BillPage 98

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

129 Consequential provision

(1) The following provisions are repealed (guidance about the making by the
5Authority 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 123(2) of the
10Energy 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 123(2) of the
Energy Act 2013 (duty to carry out functions in manner best calculated to
further delivery of policy outcomes)”.

(4) 15In the 1986 Act—

(a) in section 4AA(7), for “sections 4AB and 4A” substitute “section 4A”;

(b) in section 7B(4), in paragraph (a) omit “, 4AB”;

(c) in section 23D(2)—

(i) at the end of paragraph (b) omit “and”,

(ii) 20in paragraph (c) for “sections 4AB and” substitute “section”, and

(iii) at the end of paragraph (c) insert “; and

“(d) in the performance of its duties under section 123(1) and
(2) of the Energy Act 2013.”;

(d) in section 28(5), in paragraph (a) omit “, 4AB”;

(e) 25in section 38(1A), omit “, 4AB”;

(f) in section 41E(6)—

(i) omit paragraph (b), and

(ii) at the end of paragraph (c) insert “; and

“(d) any statement for the time being designated as the
30strategy and policy statement for the purposes of Part 5
of the Energy Act 2013.”

(5) In EA 1989—

(a) in section 3A(7), for “sections 3B and 3C” substitute “section 3C”;

(b) in section 11E(2)—

(i) 35at the end of paragraph (b) omit “and”,

(ii) in paragraph (c) for “sections 3B and 3C” substitute “section
3C”, and

(iii) at the end of paragraph (c) insert “; and

“(d) in the performance of its duties under section 123(1) and
40(2) of the Energy Act 2013.”;

(c) in section 28(2A), omit “, 3B”;

(d) in section 56C(6)—

(i) omit paragraph (b), and

(ii) at the end of paragraph (c) insert “; and

“(d) any statement for the time being designated as the
strategy and policy statement for the purposes of Part 5
of the Energy Act 2013.”

Part 6 5Consumer Protection and Miscellaneous

CHAPTER 1 Consumer Protection

Domestic tariffs

130 Power to modify energy supply licences: domestic supply contracts

(1) The Secretary of State may modify—

(a) 10a 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
by virtue of section 8 of that Act;

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

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

by making provision of any of the kinds specified in subsection (2).

(2) The kinds of provision mentioned in subsection (1) are—

(a) 20provision requiring a licence holder to adopt one or more standard
domestic tariffs;

(b) provision for restricting the number of domestic tariffs, or domestic
tariffs of a particular category, a licence holder may adopt;

(c) provision about discretionary terms (which may in particular require
25the same discretionary terms to be offered in connection with, or
incorporated into, all domestic supply contracts of any particular
category);

(d) provision for requiring a licence holder to provide information about
its domestic tariffs and other supply contract terms, which may include
30information for enabling 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) 35provision for requiring a licence holder to change the domestic tariff on
which it supplies gas or electricity to a domestic customer who is on a
closed tariff by—

(i) switching to a different domestic tariff for the time being
offered by the licence holder, unless the customer objects, or

(ii) 40offering the customer, or inviting the customer to switch to, a
different domestic tariff for the time being offered by the licence
holder.