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Session 1999-2000
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Arrangement of Clauses (Contents)

Utilities Bill
 
 

 
 
A

B I L L

TO

Provide for the establishment and functions of the Gas and Electricity Markets Authority, the Gas and Electricity Consumer Council, the Telecommunications Authority, the Telecommunications Consumer Council, the Water Advisory Panel and the Consumer Council for Water; to amend the legislation regulating the telecommunications, gas, electricity and water industries; and for connected purposes.

BE IT ENACTED by the Queen's most Excellent Majesty, by and with the advice and consent of the Lords Spiritual and Temporal, and Commons, in this present Parliament assembled, and by the authority of the same, as follows:-
 

  PART I
  GAS AND ELECTRICITY
  CHAPTER I
  NEW REGULATORY ARRANGEMENTS
Gas and Electricity Markets Authority.     1. - (1) There shall be a body corporate to be known as the Gas and Electricity Markets Authority (in this Part referred to as "the Authority") for the purpose of carrying out-
 
 
    (a) functions transferred to the Authority from the Director General of Gas Supply and the Director General of Electricity Supply; and
 
    (b) the other functions of the Authority under this Act.
      (2) The functions of the Authority are performed on behalf of the Crown.
 
      (3) The offices of Director General of Gas Supply and Director General of Electricity Supply are abolished.
 
      (4) Schedule 1 has effect with respect to the Authority.
 
Gas and Electricity Consumer Council.     2. - (1) There shall be a body corporate to be known as the Gas and Electricity Consumer Council (in this Part referred to as "the Council") for the purpose of carrying out the functions of the Council under this Act.
 
      (2) The Council shall not be regarded as a servant or agent of the Crown or as enjoying any status, immunity or privilege of the Crown.
 
      (3) The Gas Consumers Council established under section 2 of the Gas Act 1986 (in this Act referred to as "the 1986 Act") and the consumers committees established under section 2 of the Electricity Act 1989 (in this Act referred to as "the 1989 Act") are abolished.
 
      (4) Schedule 2 has effect with respect to the Council.
 
Transfer to Authority and Council of functions, property etc.     3. - (1) The functions of the Director General of Gas Supply and the Director General of Electricity Supply ("the Directors"), other than functions to be transferred by any provision of this Part to the Council, are transferred to the Authority.
 
      (2) Any enactment which-
 
 
    (a) relates to a function of either of the Directors; and
 
    (b) is in force immediately before the transfer by subsection (1) of that function,
  shall have effect after the transfer, so far as necessary for the purposes of or in consequence of the transfer, as if references to the Director were references to the Authority.
 
      (3) The Secretary of State may make one or more schemes ("transfer schemes") for the transfer of the property, rights and liabilities of the Directors to the Authority or to the Council.
 
      (4) A transfer scheme may provide for the transfer to the Council of rights and liabilities relating to persons employed in the civil service of the state.
 
      (5) On the day appointed by a transfer scheme, the property, rights and liabilities which are the subject of the scheme shall, by virtue of this subsection, be transferred in accordance with the provisions of the scheme.
 
      (6) The property, rights and liabilities of the Gas Consumers Council (including rights and obligations in relation to contracts of employment) are, by virtue of this subsection, transferred to the Council.
 
      (7) Schedule 3 has effect in relation to transfer schemes and transfers by any provision of this Part of functions, property, rights and liabilities to the Authority or Council.
 
Forward work programmes.     4. - (1) The Authority and the Council shall, before each financial year, each publish a document (the "forward work programme") containing a general description of the projects, other than those comprising routine activities in the exercise of its functions, which it plans to undertake during the year.
 
      (2) That description shall include in particular-
 
 
    (a) the objectives of each project; and
 
    (b) an estimate of the overall expenditure the Authority or the Council expects to incur during the year in undertaking the projects.
      (3) Before publishing the forward work programme for any year, the Authority or the Council shall give notice-
 
 
    (a) containing a draft of the forward work programme, and
 
    (b) specifying the time within which representations or objections to the proposals contained in it may be made,
  and shall consider any representations or objections which are duly made and not withdrawn.
 
      (4) The notice under subsection (3) must be published by the Authority or the Council in such manner as it considers appropriate for the purpose of bringing the matters contained in it to the attention of persons likely to be affected by them.
 
      (5) The Council must send a copy of the notice under subsection (3) to the Authority and the Secretary of State.
 
Annual and other reports of the Authority.     5. - (1) The Authority shall, as soon as practicable after the end of each financial year, make to the Secretary of State a report (the "annual report" for that year) on-
 
 
    (a) its activities during that year, and
 
    (b) the activities of the Competition Commission during that year in respect of any references made by the Authority.
      (2) The annual report for each year shall include-
 
 
    (a) a general survey of developments in respect of matters falling within the scope of the Authority's functions under the 1986 Act and the 1989 Act, including in particular developments in the promotion of effective competition in furtherance of its principal objective in the carrying out of those functions;
 
    (b) a report on the progress of the projects described in the forward work programme for that year;
 
    (c) a summary of final and provisional orders made and penalties imposed, by the Authority during the year; and
 
    (d) a report on such other matters as the Secretary of State may from time to time require.
      (3) The annual report for each year shall set out any general directions given by the Secretary of State under section 34(3) of the 1986 Act or section 47(2) of the 1989 Act.
 
      (4) The Secretary of State shall consult the Authority before exercising the power under subsection (2)(d) in relation to any matter.
 
      (5) The Secretary of State shall-
 
 
    (a) lay a copy of each annual report before each House of Parliament; and
 
    (b) arrange for the report to be published in such manner as he considers appropriate.
      (6) The Authority may also prepare other reports with respect to any matter falling within the scope of its functions and may arrange for any such report to be published in such manner as it considers appropriate.
 
      (7) The Authority shall send a copy of each annual or other report published under this section to the Council.
 
      (8) In making or preparing any report under this section the Authority shall have regard to the need for excluding, so far as that is practicable, any matter which relates to the affairs of a particular individual or body of persons (corporate or unincorporate), where publication of that matter would or might, in the opinion of the Authority, seriously and prejudicially affect the interests of that individual or body.
 
      (9) Section 39 of the 1986 Act (annual and other reports of the Director General of Gas Supply) and section 50 of the 1989 Act (annual and other reports of the Director General of Electricity Supply) shall cease to have effect.
 
Co-operation between Authority and Council.     6. - (1) The Authority and the Council shall make arrangements with a view to securing-
 
 
    (a) co-operation and the exchange of information between them; and
 
    (b) consistent treatment of matters which affect both of them.
      (2) As soon as practicable after agreement is reached on those arrangements, the Authority and the Council shall prepare a memorandum setting them out and send a copy of it to the Secretary of State.
 
      (3) Arrangements under this section shall be kept under review by the Authority and the Council.
 
      (4) As soon as practicable after agreement is reached on any changes to those arrangements, the Authority and the Council shall revise their memorandum and send a copy of the revised memorandum to the Secretary of State.
 
      (5) The Secretary of State shall lay a copy of any document received by him under this section before each House of Parliament.
 
Payments by licence holders relating to new arrangements.     7. - (1) Conditions included in a licence by virtue of-
 
 
    (a) paragraph (c) of section 7B(4) of the 1986 Act; or
 
    (b) paragraph (b) of section 7(1) of the 1989 Act,
  may, without prejudice to the generality of those paragraphs, require the payment of sums relating to any of the expenses mentioned in subsection (2).
 
      (2) Those expenses are-
 
 
    (a) the expenses of the Council; and
 
    (b) the expenses of the Secretary of State in relation to the establishment of the Council or Authority.
      (3) The Secretary of State may give the Authority directions as to the exercise of-
 
 
    (a) the power of the Authority to include licence conditions in a licence by virtue of the provisions mentioned in subsection (1) (and any power to modify those conditions);
 
    (b) any power of the Authority to determine anything falling to be determined under conditions included in licences by virtue of those provisions;
  and the Authority shall comply with any such direction.
 
 
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