Energy Bill (HL Bill 62)

(5) On an appeal under this section against a decision made in relation to an
enforcement notice, the Tribunal may—

(a) confirm or quash the decision, in the case of a decision as mentioned in
subsection (3)(a)(i) (remedial action), or

(b) 5confirm or vary the decision, in the case of a decision as mentioned in
subsection (3)(a)(ii) (period for compliance),

and confirm, vary or cancel the enforcement notice accordingly

(6) On an appeal under this section against a decision made in relation to a
financial penalty notice, the Tribunal may—

(a) 10confirm or quash the decision, in the case of a decision as mentioned in
subsection (3)(b)(i) (imposition of penalty), or

(b) confirm or vary the decision, in the case of a decision as mentioned in
subsection (3)(b)(ii) (amount of penalty),

and confirm, vary or cancel the financial penalty notice accordingly.

(7) 15The Tribunal must have regard to any guidance issued by the OGA under
section 44(2)(a) when deciding whether to confirm or vary a decision as to the
amount of a financial penalty under subsection (6)(b).

(8) On an appeal under this section against a decision—

(a) to revoke a licence, or

(b) 20to require the removal of an operator,

the Tribunal may confirm, vary or quash the decision, and confirm, vary or
cancel the sanction notice in question accordingly.

(9) Where a decision is quashed under subsection (5)(a), (6)(a) or (8), the Tribunal
may remit the decision to the OGA for reconsideration with such directions (if
25any) as the Tribunal considers appropriate.

Supplementary

52 Publication of details of sanctions

(1) The OGA may publish details of any sanction notice given in accordance with
this Chapter.

(2) 30But the OGA may not publish anything that, in the OGA’s opinion—

(a) is commercially sensitive,

(b) is not in the public interest to publish, or

(c) is otherwise not appropriate for publication.

(3) If, after details of a sanction notice are published by the OGA, the sanction
35notice is—

(a) cancelled on appeal, or

(b) withdrawn under section 54,

the OGA must publish details of the cancellation or withdrawal.

53 Subsequent sanction notices

(1) 40This section applies where the OGA gives a sanction notice in respect of a
particular failure to comply with a petroleum-related requirement (whether
the notice is given alone or at the same time as another type of sanction notice).

(2) If the sanction notice given is a revocation notice or an operator removal notice,
no further sanction notices may be given in respect of the failure to comply.

(3) Subsection (4) applies if the sanction notice given is an enforcement notice or a
financial penalty notice.

(4) 5No further sanction notices may be given in respect of the failure to comply
before the end of the period specified under section 42(2)(c) or 43(2)(c)(i), as the
case may be (period for compliance with petroleum-related requirement).

54 Withdrawal of sanction notices

(1) The OGA may, at any time after giving a sanction notice, withdraw the
10sanction notice.

(2) If a sanction notice is withdrawn by the OGA—

(a) the notice ceases to have effect, and

(b) the OGA must notify the following persons of the withdrawal of the
notice—

(i) 15the person or persons to whom the notice was given,

(ii) in the case of a revocation notice, the persons who were
required to be informed of the giving of the revocation notice
under section 46(8), and

(iii) in the case of an operator removal notice, the licensee under
20whose licence the operator operates.

55 Alternative means of enforcement

(1) Where the OGA gives a sanction notice to an offshore licensee in respect of a
failure to comply with a petroleum-related requirement, the matter is to be
dealt with in accordance with this Chapter.

(2) 25Any requirement under the licensee’s licence to deal with the matter in a
certain way (including by arbitration) does not apply in respect of that failure
to comply.

Information

56 Sanctions: information powers

(1) 30This section applies for the purposes of an investigation by the OGA which—

(a) concerns whether a person has failed to comply with a petroleum-
related requirement, and

(b) is carried out for the purpose of enabling the OGA to decide whether to
give the person a sanction notice, or on what terms a sanction notice
35should be given to the person.

(2) The OGA may by notice in writing, for the purposes of that investigation,
require the person to provide specified documents or other information.

(3) A requirement under subsection (2) only applies to the extent that the
documents or information requested are—

(a) 40documents that are in the person’s possession or control, or

(b) other information that is in the person’s possession or control.

(4) A requirement imposed by a notice under subsection (2) is sanctionable in
accordance with this Chapter.

(5) The documents or information requested—

(a) may include documents or information held in any form (including in
5electronic form);

(b) may include documents or information that may be regarded as
commercially sensitive;

(c) may not include items that are subject to legal privilege.

(6) The notice must specify—

(a) 10to whom the information is to be provided;

(b) where it is to be provided;

(c) when it is to be provided;

(d) the form and manner in which it is to be provided.

(7) In this section, “specified” in a notice, means specified, or of a description
15specified, in the notice.

57 Appeals against information requests

(1) A person to whom a notice is given under section 56 may appeal against it to
the Tribunal on the grounds that—

(a) the giving of the notice is not within the powers of the OGA, or

(b) 20the length of time given to comply with the notice is unreasonable.

(2) On an appeal under this section the Tribunal may—

(a) confirm, vary or cancel the notice, or

(b) remit the matter under appeal to the OGA for reconsideration with
such directions (if any) as the Tribunal considers appropriate.

58 25Sanctions: disclosure

The OGA may disclose any information obtained by it under this Chapter only
if—

(a) the person by whom or on whose behalf the information was provided
consents to the disclosure,

(b) 30the disclosure is required by virtue of an obligation imposed on the
OGA by or under any Act, or

(c) the disclosure is made in the exercise of the OGA’s powers under
section 52 (publication of details of sanctions).

The OGA’s procedures

59 35Procedure for enforcement decisions

(1) The OGA must determine the procedure that it proposes to follow in relation
to enforcement decisions.

(2) That procedure must be designed to secure, among other things, that an
enforcement decision is taken—

(a) 40by a person falling within subsection (3), or

(b) by two or more persons, each of whom falls within subsection (3).

(3) A person falls within this subsection if the person was not directly involved in
establishing the evidence on which the enforcement decision is based.

(4) The OGA must issue a statement of its proposals.

(5) The statement must be published in a way appearing to the OGA to be best
5calculated to bring the statement to the attention of the public.

(6) When the OGA takes an enforcement decision, the OGA must follow its stated
procedure.

(7) If the OGA changes its procedure in a material way, it must publish a revised
statement.

(8) 10A failure of the OGA in a particular case to follow its procedure as set out in
the latest published statement does not affect the validity of an enforcement
decision taken in that case.

(9) But subsection (8) does not prevent the Tribunal from taking into account any
such failure in considering an appeal under section 50 or 51 in relation to a
15sanction notice.

(10) In this section “enforcement decision” means either of the following—

(a) a decision to give a sanction notice in respect of a failure to comply with
a petroleum-related requirement;

(b) a decision as to the details of the sanction to be imposed by the notice.

20Interpretation

60 Sanctions: interpretation

In this Chapter—

• “operator under a petroleum licence” has the meaning given in section
  47(8);

• 25“petroleum-related requirement” has the meaning given in section 41(3);

• “sanction notice” has the meaning given in section 41(4).

Part 3 Infrastructure

61 Requirements to provide information

(1) 30The Energy Act 2011 is amended as follows.

(2) In section 87 (powers to require information), after subsection (5) insert—

“(5A) A notice under subsection (1), (2) or (3) that imposes a requirement on
a person must specify when the requirement is to be complied with.””

(3) After that section insert—

“87A 35Appeals against requirements to provide information

(1) Any person on whom a requirement is imposed by a notice under
section 87(1), (2) or (3) may appeal against the notice to the Tribunal on
the grounds that—

(a) the information required by the notice is not relevant to the
exercise by the OGA of its functions under this Chapter, or

(b) the length of time given to comply with the notice is
unreasonable.

(2) 5On an appeal under this section the Tribunal may—

(a) confirm, vary or cancel the notice, or

(b) remit the matter under appeal to the OGA for reconsideration
with such directions (if any) as the Tribunal considers
appropriate.

(3) 10In this section “the Tribunal” means the First-tier Tribunal.

87B Sanctions for failure to provide information

(1) A requirement imposed by a notice under section 87(1), (2) or (3) is to
be treated for the purposes of Chapter 5 of Part 2 of the Energy Act 2016
(power of the OGA to impose sanctions) as a petroleum-related
15requirement.

(2) But the OGA may not give a revocation notice or an operator removal
notice under that Chapter by virtue of this section.””

62 Applications to use infrastructure: changes of applicant and owner

(1) The Energy Act 2011 is amended as follows.

(2) 20In section 82(13) (contents of notice securing rights to use infrastructure), omit
paragraph (b).

(3) In section 87(6) (circumstances in which information may be disclosed)—

(a) omit the “or” at the end of paragraph (a), and

(b) after paragraph (b) insert “or

(c) 25the disclosure is made under section 89A or 89B.””

(4) After section 89 insert—

“89A Assignments and assignations of applications

(1) This section applies where—

(a) there is an assignment or assignation of an application made
30under section 82 from one person (“A”) to another (“B”), and

(b) the following are notified of the assignment or assignation—

(i) the owner of the pipeline or facility that is the subject of
the application, and

(ii) the OGA.

(2) 35A notice under subsection (1)(b) must—

(a) be in writing, and

(b) specify the date of the assignment or assignation.

(3) For the purposes of this Chapter, anything done (or treated as done) by
or in relation to A in connection with the application is treated after the
40assignment or assignation as having been done by or in relation to B.

This subsection is subject to subsections (4) and (5) and does not apply
for the purposes of subsections (6) and (7).

(4) Any provision of this Chapter that requires the OGA to give the
applicant an opportunity to be heard has effect after the assignment or
assignation as requiring the OGA to give B an opportunity to be heard
(whether or not the applicant was heard under that provision before
5the assignment or assignation).

(5) Subsection (3) does not apply in relation to any notice given under
section 87 before the assignment or assignation (and, accordingly, the
person to whom the notice was given remains under an obligation to
comply with it).

(6) 10Any information relating to the application obtained by the OGA
before the assignment or assignation from any person who at the time
was the applicant may be disclosed to B.

(7) Before disclosing any such information to B, the OGA must remove any
information which the OGA considers may prejudice the commercial
15interests of the person from whom the information was obtained.

89B Transfers of ownership

(1) This section applies where the ownership of a pipeline or facility that is
the subject of an application under section 82, or to which a notice
under subsection (11) of that section relates, is transferred from one
20person (“C”) to another (“D”).

(2) For the purposes of this Chapter—

(a) anything done (or treated as done) by or in relation to C in
connection with C’s ownership of the pipeline or facility is
treated after the transfer as having been done by or in relation
25to D, and

(b) any obligations imposed or rights conferred (or treated as
imposed or conferred) by or under this Chapter on C in
connection with C’s ownership of the pipeline or facility are
treated after the transfer as imposed or conferred on D.

30This subsection is subject to subsections (3) and (4) and does not apply
for the purposes of subsections (5) and (6).

(3) Any provision of this Chapter that requires the OGA to give the owner
of the pipeline or facility an opportunity to be heard has effect after the
transfer as requiring the OGA to give D an opportunity to be heard
35(whether or not the owner was heard under that provision before the
transfer).

(4) Subsection (2) does not affect the obligation to comply with any notice
given under section 87 before the transfer (and, accordingly, the person
to whom the notice was given remains under an obligation to comply
40with it).

(5) Any information relating to the application obtained by the OGA
before the transfer from any person who at the time was the owner may
be disclosed to D.

(6) Before disclosing any such information to D, the OGA must remove
45any information which the OGA considers may prejudice the
commercial interests of the person from whom the information was
obtained.””

Part 4 Fees

63 Powers to charge fees

(1) In Part 4A of the Energy Act 2008 (works detrimental to navigation: oil, gas,
5carbon dioxide and pipelines), before section 82P insert—

“82OA Fees

(1) The Secretary of State may charge fees in connection with carrying out
functions under this Part.

(2) The fees are to be determined by or in accordance with regulations
10made by the Secretary of State.

(3) The regulations may authorise the fees to be determined by or in
accordance with a scheme made by the Secretary of State.””

(2) In Part 4 of the Marine and Coastal Access Act 2009 (marine licences), after
section 110 insert—

15““Fees

110A Fees: oil and gas activities for which marine licence needed

(1) The Secretary of State may charge fees in connection with carrying out
functions under this Part, so far as relating to oil and gas activities for
which a marine licence is needed.

(2) 20The fees are to be determined by or in accordance with regulations
made by the Secretary of State.

(3) The regulations may authorise the fees to be determined by or in
accordance with a scheme made by the Secretary of State.

(4) If the regulations provide for determining fees in connection with
25functions of the Secretary of State under section 67, the fees are to be
those provided for by the regulations, and not those (if any) provided
for by regulations under section 67(2) or determined under section
67(5).

(5) “Oil and gas activities” are activities which relate to operations
30regulated under any of the provisions listed in subsection (6).

(6) The provisions are—

(a) section 2 of the Petroleum (Production) Act 1934 (searching and
boring for, and getting, petroleum);

(b) Part 1 of the Petroleum Act 1998 (searching and boring for, and
35getting, petroleum);

(c) Part 3 of the Petroleum Act 1998 (submarine pipelines);

(d) Part 4 of the Petroleum Act 1998 (abandonment of offshore
installations);

(e) Part 1 of the Energy Act 2008 (gas importation and storage);

(f) 40Part 4 of the Energy Act 2008 (oil and gas).

(7) See Chapter 1 for when a marine licence is needed for activities.””

64 Validation of fees charged

(1) A fee charged by the Secretary of State at any time before the date on which this
Act is passed (“the relevant time”) is taken to have been lawfully charged if the
condition in subsection (2) is met.

(2) 5The condition is that the fee was charged in connection with carrying out
functions under any of the provisions listed in subsection (3), as the provision
in question had effect at the relevant time.

(3) The provisions are—

(a) Part 4A of the Energy Act 2008 (works detrimental to navigation: oil,
10gas, carbon dioxide and pipelines);

(b) Part 4 of the Marine and Coastal Access Act 2009 (marine licences), so
far as relating to oil and gas activities for which a marine licence under
that Part is needed;

(c) the Merchant Shipping (Oil Pollution Preparedness, Response and Co-
15operation Convention) Regulations 1998 (S.I. 1998/1056S.I. 1998/1056);

(d) the Offshore Petroleum Production and Pipe-lines (Assessment of
Environmental Effects) Regulations 1999 (S.I. 1999/360S.I. 1999/360);

(e) the Offshore Petroleum Activities (Conservation of Habitats)
Regulations 2001 (S.I. 2001/1754S.I. 2001/1754).

(4) 20“Oil and gas activities” are activities which relate to operations regulated
under any of the provisions listed in subsection (5).

(5) The provisions are—

(a) section 2 of the Petroleum (Production) Act 1934 (searching and boring
for, and getting, petroleum);

(b) 25Part 1 of the Petroleum Act 1998 (searching and boring for, and getting,
petroleum);

(c) Part 3 of the Petroleum Act 1998 (submarine pipelines);

(d) Part 4 of the Petroleum Act 1998 (abandonment of offshore
installations);

(e) 30Part 1 of the Energy Act 2008 (gas importation and storage);

(f) Part 4 of the Energy Act 2008 (oil and gas).

(6) See Chapter 1 of Part 4 of the Marine and Coastal Access Act 2009 for when a
marine licence under that Part is needed for activities.

Part 5 35Wind power

65 Onshore wind generating stations in England and Wales

In section 36 of the Electricity Act 1989 (consent of Secretary of State required
for construction or extension of generating stations), after subsection (1C)
insert—

“(1D) 40Subsection (1) does not apply to an English or Welsh onshore wind
generating station.

(1E) “English or Welsh onshore wind generating station” means a
generating station that—

(a) generates electricity from wind, and

(b) is situated in England or Wales, but not in waters in or adjacent
to England or Wales up to the seaward limits of the territorial
sea.””

66 Onshore wind power: closure of renewables obligation on 31 March 2016

(1) 5The Electricity Act 1989 is amended as follows.

(2) After section 32LB (renewables obligation closure orders: procedure) insert—

“32LC Onshore wind generating stations: closure of renewables obligation

(1) No renewables obligation certificates are to be issued under a
renewables obligation order in respect of electricity generated after 31
10March 2016 by an onshore wind generating station which is accredited
after that date.

(2) In subsection (1)—

• “accredited” is to be construed in accordance with the definition of
  “accreditation” in article 2 of the Renewables Obligation Order
  152009 (S.I. 2009/785S.I. 2009/785);

• “onshore wind generating station” means a generating station
  that—

  (a)

  generates electricity from wind, and

  (b)

  is situated in England, Wales or Scotland, but not in
  20waters in or adjacent to England, Wales or Scotland up
  to the seaward limits of the territorial sea.

(3) The Secretary of State may by regulations make further provision for
the purposes of giving effect to subsection (1).

(4) The reference in subsection (1) to a renewables obligation order is to
25any renewables obligation order made under section 32 (whenever
made, and whether or not made by the Secretary of State).

(5) Power to make provision in a renewables obligation order or a
renewables obligation closure order (and any provision contained in
such an order) is subject to subsection (1) and regulations under this
30section.

(6) This section is not otherwise to be taken as affecting power to make
provision in a renewables obligation order or renewables obligation
closure order.

(7) Regulations under this section are not to be made unless a draft of the
35the instrument containing them has been laid before and approved by
a resolution of each House of Parliament.””

(3) In section 106(2)(a) (negative procedure for regulations under Act), after
“Secretary of State” insert “(other than regulations under section 32LC)”.

(4) The Renewables Obligation Closure Order 2014 (S.I. 2014/2388S.I. 2014/2388) is amended as
40follows.

(5) In article 2(1) (interpretation), after the definition of “network operator”
insert—

• “““onshore wind generating station” means a generating station
  that—

  Energy BillPage 39

  (a)

  generates electricity from wind, and

  (b)

  is situated in England, Wales or Scotland, but not in
  waters in or adjacent to England, Wales or Scotland up
  to the seaward limits of the territorial sea;”.”

(6) 5In article 3 (closure of renewables obligation on 31st March 2017)—

(a) in the heading, after “not large solar pv stations” insert “or onshore
wind generating stations accredited after 31st March 2016”;

(b) in paragraph (1), after “not a large solar pv station” insert “or an
onshore wind generating station accredited after 31st March 2016”.

10Part 6 Final Provisions

67 Regulations

(1) A power to make regulations under this Act is exercisable by statutory
instrument.

(2) 15A power to make regulations under this Act includes power—

(a) to make different provision for different purposes (including areas);

(b) to make provision generally or in relation to specific cases.

(3) A power to make regulations under this Act (except the power conferred by
section 68) includes power to make incidental, consequential, supplemental,
20transitional or transitory provision or savings.

(4) A statutory instrument containing—

(a) regulations under section 2 which amend or repeal any Act or
provision of an Act,

(b) regulations under section 31(8), or

(c) 25regulations under section 44,

may not be made unless a draft of the instrument has been laid before, and
approved by a resolution of, each House of Parliament.

(5) A statutory instrument containing any other regulations under this Act is
subject to annulment in pursuance of a resolution of either House of
30Parliament.

(6) Subsection (5) does not apply to a statutory instrument containing regulations
under section 68.

68 Commencement

(1) This Part comes into force on the day on which this Act is passed.

(2) 35Part 4 comes into force two months after the day on which this Act is passed.

(3) The remaining provisions of this Act come into force on such day or days as the
Secretary of State may by regulations appoint.

(4) Regulations under subsection (3) may include transitional or transitory
provision or savings.