ukpga/2000/27 — Utilities Act 2000

Utilities Act 2000 2000 c. 27 An Act to provide for the establishment and functions of the Gas and Electricity Markets Authority and the Gas and Electricity Consumer Council; to amend the legislation regulating the gas and electricity industries; and for connected purposes. [28th July 2000] 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 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 Act 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 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Transfer to Authority ... of functions, property etc. 3 1 The functions of the Director General of Gas Supply and the Director General of Electricity Supply (“ the Directors ”) 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 .... 4 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 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 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 Subsection (6) has effect in relation to property, rights or liabilities to which it applies in spite of any provision (of whatever nature) which would prevent or restrict the transfer of the property, rights or liabilities otherwise than by that subsection. 8 Schedule 3 has effect in relation to transfer schemes and transfers by any provision of this Act of functions, property, rights and liabilities to the Authority .... Exercise of designated regulatory functions etc 3A 1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 The Authority must ensure that members of its staff do not— a seek or take any instructions that might compromise, or might reasonably be seen to compromise, the Authority ’s independence in relation to its designated regulatory functions ; or b carry out any other activity, or have any financial or other interest, that might compromise, or might reasonably be seen to compromise, the impartiality of those members of staff. 3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Forward work programmes. 4 1 The Authority ... shall, before each financial year, ... 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 must include the objectives of each project. 3 The forward work programme for any year shall also include an estimate of the overall expenditure which the Authority ... expects to incur during the year in the exercise of its functions. 4 Before publishing the forward work programme for any year, the Authority ... 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. 5 The notice under subsection (4) must be published by the Authority ... 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. 6 The Authority must send a copy of any notice given by it under subsection (4) to Citizens Advice and Consumer Scotland . 7 In this section— a references to functions do not include functions under Part 1 of the Energy Act 2023, and b references to projects do not include projects with regard to the exercise of such functions. Information in relation to strategy and policy statement 4A 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 statement. 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 published 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 statement (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 priorities 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 when 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 financial 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 published 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 is 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 In 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 4(1); “ policy outcomes ”, “ strategic priorities ” and “ strategy and policy statement ” have the same meaning as in Part 5 of the Energy Act 2013. Annual and other reports of 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 and Markets Authority 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, including in particular developments in competition between persons engaged in, or in commercial activities connected with— i the shipping, transportation or supply of gas conveyed through pipes; ... ii the generation, transmission, distribution or supply of electricity; or iii the operation or maintenance of, or the supply of heating, cooling or hot water by means of, relevant heat networks (as defined in section 216 of the Energy Act 2023); 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; ... ca a summary of final notices given by the Authority under the Electricity and Gas (Market Integrity and Transparency) (Enforcement etc. ) Regulations 2013; and d a report on such other matters as the Secretary of State may from time to time require. 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 132(1) and (2) of the Energy Act 2013 in relation to the strategy and policy statement (so far as the statement's designation 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 that 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 functions 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 the Authority proposes to take to remedy it. 2C In subsections (2A) and (2B)— “ forward work programme ” has the meaning given by section 4(1); “ policy outcomes ” and “ strategy and policy statement ” have the same meaning as in Part 5 of the Energy Act 2013. 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. 3A The annual report for each year must also include an overview of— a developments relating to documents designated for the purposes of Part 6 of the Energy Act 2023 (governance of gas and electricity industry codes); b decisions made by the Authority during the year in relation to such documents, including details of any modifications made under section 192 of the Energy Act 2023. 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; ... aa send a copy of the report to the Scottish Ministers and the Welsh Ministers , and b arrange for the report to be published in such manner as he considers appropriate. 5A The Scottish Ministers shall lay a copy of each annual report before the Scottish Parliament. 5B The Welsh Ministers shall lay a copy of each annual report before the National Assembly for Wales. 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 Citizens Advice and Consumer Scotland . 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 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10 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. 11 In this section— a references to functions of the Authority do not include functions under Part 1 of the Energy Act 2023; b references to activities of the Authority do not include activities in the exercise of such functions; c the reference in subsection (1) to “ references made by the Authority ” does not include references made by virtue of section 36(1) of the Energy Act 2023. Laying of accounts before Scottish Parliament , Senedd Cymru or the Northern Ireland Assembly 5XA 1 The Comptroller and Auditor General must send to the Authority, in respect of each of its accounting years, a copy of the certified accounts and report of the Authority no later than 15th January of the financial year following that to which the accounts relate. 2 The Authority must send to the Scottish Ministers and the Welsh Ministers , in respect of each of its accounting years, a copy of the certified accounts and report of the Authority no later than 31st January of the financial year following that to which the accounts relate. 2A The Authority must send to the Department for the Economy in Northern Ireland, in respect of each of its accounting years, a copy of the certified accounts and report of the Authority no later than 31 January of the financial year following that to which the accounts relate. 3 The Scottish Ministers must lay a copy of whatever is sent to them under subsection (2) before the Scottish Parliament. 3A The Welsh Ministers must lay a copy of whatever is sent to them under subsection (2) before the National Assembly for Wales. 3B The Department for the Economy in Northern Ireland must lay a copy of whatever is sent to it under subsection (2A) before the Northern Ireland Assembly. 4 In subsections (1) to (3) “ certified accounts and report ” means those accounts certified under sections 5 and 7 of the Government Resources and Accounts Act 2000, and the report issued by the Comptroller and Auditor General under section 6(3)(a) of that Act. Report on activities as designated regulatory authority 5ZA . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Duty of Authority to carry out impact assessment 5A 1 This section applies where— a the Authority is proposing to do anything for the purposes of, or in connection with, the carrying out of any function exercisable by it under or by virtue of Part 1 of the 1986 Act or Part 1 of the 1989 Act , Part 1 of the 1989 Act or Part 8 of the Energy Act 2023 ; and b it appears to it that the proposal is important; but this section does not apply if it appears to the Authority that the urgency of the matter makes it impracticable or inappropriate for the Authority to comply with the requirements of this section. 2 A proposal is important for the purposes of this section only if its implementation would be likely to do one or more of the following— a involve a major change in the activities carried on by the Authority; b have a significant impact on persons engaged in the shipping, transportation or supply of gas conveyed through pipes or in the generation, transmission, distribution or supply of electricity or in the provision of smart meter communication services (in respect of electricity meters or gas meters) ; c have a significant impact on persons engaged in commercial activities connected with the shipping, transportation or supply of gas conveyed through pipes or with the generation, transmission, distribution or supply of electricity; ca have a significant impact on the carrying out by the Independent System Operator and Planner (within the meaning of Part 5 of the Energy Act 2023) of any of its functions; cb have a significant impact on the carrying out by a code manager (within the meaning of Part 6 of the Energy Act 2023) of its functions— i in relation to a designated gas licence document, or ii in relation to a designated electricity licence document; cc have a significant impact on persons engaged in— i the operation or maintenance of, or the supply of heating, cooling or hot water by means of, relevant heat networks (as defined in section 216 of the Energy Act 2023), or ii commercial activities connected with an activity mentioned in sub-paragraph (i); d have a significant impact on the general public in Great Britain or in a part of Great Britain; or e have significant effects on the environment. 3 Before implementing its proposal, the Authority must either— a carry out and publish an assessment of the likely impact of implementing the proposal; or b publish a statement setting out its reasons for thinking that it is unnecessary for it to carry out an assessment. 4 An assessment carried out under this section must— a include an assessment of the likely effects on the environment of implementing the proposal; and b relate to such other matters as the Authority considers appropriate. 5 In determining the matters to which an assessment under this section should relate, the Authority must have regard to such general guidance relating to the carrying out of impact assessments as it considers appropriate. 6 An assessment carried out under this section may take such form as the Authority considers appropriate. 7 Where the Authority publishes an assessment under this section— a it must provide an opportunity of making representations to the Authority about its proposal to members of the public and other persons who, in the Authority’s opinion, are likely to be affected to a significant extent by the proposal’s implementation; b the published assessment must be accompanied by a statement setting out how representations may be made; and c the Authority must not implement its proposal unless the period for making representations about the proposal has expired and it has considered all the representations that were made in that period. 8 Where the Authority is required (apart from this section)— a to consult about a proposal to which this section applies, or b to give a person an opportunity of making representations about it, the requirements of this section are in addition to, but may be performed contemporaneously with, the other requirements. 9 Every report under section 5(1) must set out— a a list of the assessments under this section carried out during the financial year to which the report relates; and b a summary of the decisions taken during that year in relation to proposals to which assessments carried out in that year or previous financial years relate. 10 The publication of anything under this section must be in such manner as the Authority considers appropriate for bringing it to the attention of the persons who, in the Authority’s opinion, are likely to be affected if its proposal is implemented. 11 References in sections 4AA, 4AB and 4A of the 1986 Act to functions of the Authority under Part 1 of that Act include references to any functions of the Authority under this section that are exercisable in relation to a proposal to do anything for the purposes of, or in connection with, the carrying out of any function of the Authority under Part 1 of the 1986 Act. 12 References in sections 3A, 3B and 3C of the 1989 Act to functions of the Authority under Part 1 of that Act include references to any functions of the Authority under this section that are exercisable in relation to a proposal to do anything for the purposes of, or in connection with, the carrying out of any function of the Authority under Part 1 of the 1989 Act. Publication of advice and information about consumer matters. 6 1 For section 35 of the 1986 Act (publication by Director of information and advice) there is substituted— Publication of advice and information about consumer matters. 35 1 If it appears to the Authority that the publication of any advice and information would promote the interests of consumers in relation to gas conveyed through pipes, the Authority may publish that advice or information in such manner as it thinks fit. 2 In publishing advice or information 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. 3 Before deciding to publish under this section any advice or information relating to a particular individual or body of persons the Authority shall consult that individual or body. 4 In this section “ consumers ” includes both existing and future consumers. 2 For subsections (1) and (2) of section 48 of the 1989 Act (publication by Director of information and advice) there is substituted— 1 If it appears to the Authority that the publication of any advice and information would promote the interests of consumers in relation to electricity conveyed by distribution systems, the Authority may publish that advice or information in such manner as it thinks fit. 2 In publishing advice or information 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. 2A Before deciding to publish under this section any advice or information relating to a particular individual or body of persons the Authority shall consult that individual or body. 3 After subsection (3) of that section there is inserted— 4 In this section “ consumers ” includes both existing and future consumers. Co-operation between Authority and Council. 7 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Payments by licence holders relating to new arrangements. 8 1 In this section “ payment conditions ” means— a in relation to a gas licence, conditions included in the licence by virtue of section 7B(4)(c) of the 1986 Act; or b in relation to an electricity licence, conditions included in the licence by virtue of section 7(1)(b) of the 1989 Act. 2 The payment conditions of a gas licence or an electricity licence may (without prejudice to the generality of the provisions mentioned in subsection (1)) require the payment by the licence holder of sums — a relating to any of the expenses mentioned in subsection (3) or (3A) , or b relating to such amounts as the Secretary of State considers reasonable in respect of the provision, in or as regards Scotland, of consumer advocacy and advice by, or by agreement with, a public body or the holder of a public office, in relation to gas and electricity consumers 3 The expenses within this subsection are— a the expenses of the Gas and Electricity Consumer Council ; and b . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3A The expenses within this subsection are— a . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . b . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ba the appropriate proportion of the expenses of Citizens Advice (including expenses relating to taking on functions transferred from the National Consumer Council but not including expenses within paragraph (ca)); bb . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . c any expenses of ... the Secretary of State or the Gas and Electricity Consumer Council which relate to a transfer scheme made in respect of the Gas and Electricity Consumer Council under section 35(2)(a) or (7) of the Consumers, Estate Agents and Redress Act 2007; ca the appropriate proportion of the expenses of Citizens Advice which relate to a transfer scheme made in respect of the National Consumer Council under section 23 of the Public Bodies Act 2011; cb . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . d the expenses of the Secretary of State which relate to the abolition of the Gas and Electricity Consumer Council; da the appropriate proportion of the expenses of the Secretary of State which relate to the abolition of the National Consumer Council and the transfer of functions to Citizens Advice and Citizens Advice Scotland ; db the appropriate proportion of the expenses of the Secretary of State which relate to the transfer of functions and the conferring of functions on Citizens Advice and Citizens Advice Scotland by the Public Bodies (Abolition of the National Consumer Council and Transfer of the Office of Fair Trading’s Functions in relation to Estate Agents etc ) Order 2014 ( S.I. 2014/…); dc the appropriate proportion of the expenses of the Secretary of State which relate to a transfer scheme made in respect of the National Consumer Council under section 23 of the Public Bodies Act 2011; e . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . f the appropriate proportion of the expenses of Citizens Advice ... on, or in connection with, the support of any qualifying public consumer advice scheme . 3B The “appropriate proportion” of any expenses means such proportion of the expenses as the Secretary of State considers is reasonable having regard to— a in the case of expenses within subsection (3A)(ba), ... (ca) ... or (db) , the functions exercisable by Citizens Advice or Citizens Advice Scotland , as the case may be, in relation to gas and electricity consumers, ... aa in the case of expenses within subsection (3A)(da) or (dc), the functions exercised by the National Consumer Council in relation to gas and electricity consumers, and b in the case of expenses within subsection (3A)(f), the functions under the qualifying consumer advice scheme which are exercisable in relation to gas and electricity consumers. 3C A qualifying public consumer advice scheme is a scheme that is supported by Citizens Advice ... in a manner that the Competition and Markets Authority is prohibited from using by section 8A of the Enterprise Act 2002. 4 The Authority may, in accordance with this section, modify any payment conditions of a gas licence or an electricity licence where the Authority considers it necessary or expedient to do so in consequence of, or of preparations for— a . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . b the abolition of the Gas and Electricity Consumer Council. c the abolition of the National Consumer Council, or d the conferring of functions which are exercisable in relation to gas and electricity consumers on Citizens Advice or Citizens Advice Scotland by the Public Bodies (Abolition of the National Consumer Council and Transfer of the Office of Fair Trading’s Functions in relation to Estate Agents etc ) Order 2014 ( S.I. 2014/...). 5 The Authority may, in accordance with this section, make such incidental or consequential modifications of— a the other conditions of a gas licence or an electricity licence, or b any code or agreement relevant to the conditions of such a licence, as it considers necessary or expedient in consequence of, or of preparations for, an event mentioned in subsection (4)(a) or (b). 6 Before modifying the conditions of a licence or any code or agreement under subsection (4) or (5) the Authority shall consult the licence holder. 7 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 The powers of the Authority under subsection (4) (as amended by paragraph 29 of Schedule 1 to the Consumers, Estate Agents and Redress Act 2007), and subsection (5) as it applies in relation to that subsection, may not be exercised after the end of the period of 2 years beginning with the commencement of that paragraph. 9 The Secretary of State may give directions to the Authority for the purpose of securing that sums relating to any of the expenses mentioned in subsection (3) or (3A) or to amounts mentioned in subsection (2)(b) are included in the sums payable by virtue of payment conditions in gas licences and electricity licences; and the Authority shall comply with any such direction. 10 For the purposes of this section— ... ... “ consumer ” has the same meaning as in Part 1 of the Consumers, Estate Agents and Redress Act 2007 (see section 3 of that Act); “ gas and electricity consumers ” means consumers in relation to gas conveyed through pipes or electricity conveyed by distribution systems or transmission systems; “ OFT scheme ” means any public consumer advice scheme supported by the Office of Fair Trading. Part II Objectives of regulation of gas and electricity Gas Objectives and duties under 1986 Act. 9 For section 4 of the 1986 Act (general duties of Secretary of State and Director) there is substituted— The principal objective and general duties of the Secretary of State and the Authority. 4AA 1 The principal objective of the Secretary of State and the Gas and Electricity Markets Authority (in this Act referred to as “ the Authority ”) in carrying out their respective functions under this Part is to protect the interests of consumers in relation to gas conveyed through pipes, wherever appropriate by promoting effective competition between persons engaged in, or in commercial activities connected with, the shipping, transportation or supply of gas so conveyed. 2 The Secretary of State and the Authority shall carry out those functions in the manner which he or it considers is best calculated to further the principal objective, having regard to— a the need to secure that, so far as it is economical to meet them, all reasonable demands in Great Britain for gas conveyed through pipes are met; and b the need to secure that licence holders are able to finance the activities which are the subject of obligations imposed by or under this Part or the Utilities Act 2000. 3 In performing that duty, the Secretary of State or the Authority shall have regard to the interests of— a individuals who are disabled or chronically sick; b individuals of pensionable age; c individuals with low incomes; and d individuals residing in rural areas; but that is not to be taken as implying that regard may not be had to the interests of other descriptions of consumer. 4 The Secretary of State and the Authority may, in carrying out any function under this Part, have regard to— a the interests of consumers in relation to electricity conveyed by distribution systems (within the meaning of the Electricity Act 1989); and b any interests of consumers in relation to— i telecommunication services and telecommunication apparatus (within the meaning of the Telecommunications Act 1984); or ii water services or sewerage services (within the meaning of the Water Industry Act 1991), which are affected by the carrying out of that function. 5 Subject to subsection (2), the Secretary of State and the Authority shall carry out their respective functions under this Part in the manner which he or it considers is best calculated— a to promote efficiency and economy on the part of persons authorised by licences or exemptions to carry on any activity, and the efficient use of gas conveyed through pipes; b to protect the public from dangers arising from the conveyance of gas through pipes or from the use of gas conveyed through pipes; and c to secure a diverse and viable long-term energy supply, and shall have regard, in carrying out those functions, to the effect on the environment of activities connected with the conveyance of gas through pipes. 6 In this section “ consumers ” includes both existing and future consumers. 7 In this section and sections 4AB and 4A, references to functions of the Secretary of State or the Authority under this Part include a reference to functions under the Utilities Act 2000 which relate to gas conveyed through pipes. 8 In this Part, unless the context otherwise requires,— “ exemption ” means an exemption granted under section 6A; “ licence ” means a licence under section 7 or 7A and “ licence holder ” shall be construed accordingly. Guidance on social and environmental matters in relation to gas. 10 After section 4AA of the 1986 Act (which is inserted by section 9 above) there is inserted— Guidance on social and environmental matters. 4AB 1 The Secretary of State shall from time to time issue guidance about the making by the Authority of a contribution towards the attainment of any social or environmental policies set out or referred to in the guidance. 2 The Authority shall, in carrying out its functions under this Part, have regard to any guidance issued under this section. 3 Before issuing guidance under this section the Secretary of State shall consult— a the Authority; b the Gas and Electricity Consumer Council (in this Act referred to as “ the Council ”); c licence holders; and d such other persons as the Secretary of State considers it appropriate to consult in relation to the guidance. 4 A draft of any guidance proposed to be issued under this section shall be laid before each House of Parliament. 5 Guidance shall not be issued under this section until after the period of forty days beginning with— a the day on which the draft is laid before each House of Parliament; or b if the draft is laid before the House of Lords on one day and the House of Commons on another, the later of those two days. 6 If, before the end of that period, either House resolves that the guidance should not be issued, the Secretary of State must not issue it. 7 In reckoning any period of forty days for the purposes of subsection (5) or (6), no account shall be taken of any time during which— a Parliament is dissolved or prorogued; or b both Houses are adjourned for more than four days. 8 The Secretary of State shall arrange for any guidance issued under this section to be published in such manner as he considers appropriate. Health and safety in relation to gas. 11 For section 4A of the 1986 Act (duties with respect to safety) there is substituted— Health and safety. 4A 1 The Secretary of State and the Authority shall consult the Health and Safety Commission about all gas safety issues which may be relevant to the carrying out of any of their respective functions under this Part. 2 The Secretary of State and the Authority shall, in carrying out their respective functions under this Part, take into account any advice given by the Health and Safety Commission about any gas safety issue (whether or not in response to consultation under subsection (1)). 3 For the purposes of this section a gas safety issue is anything concerning the conveyance of gas through pipes, or the use of gas conveyed through pipes, which may affect the health and safety of— a members of the public; or b persons employed in connection with the conveyance of gas through pipes or the supply of gas conveyed through pipes. Exceptions from the general duties under 1986 Act. 12 After section 4A of the 1986 Act there is inserted— Exceptions from sections 4AA to 4A. 4B 1 Section 4AA does not apply in relation to the issuing by the Secretary of State of guidance under section 4AB. 2 Sections 4AA to 4A do not apply in relation to anything done by the Authority— a in the exercise of functions relating to the determination of disputes; or b in the exercise of functions under section 36A(3). 3 The Authority may nevertheless, when exercising any function under section 36A(3), have regard to any matter in respect of which a duty is imposed by sections 4AA to 4A if it is a matter to which the Director General of Fair Trading could have regard when exercising that function. 4 The duties imposed by sections 4AA to 4A 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). Electricity Objectives and duties under 1989 Act. 13 For section 3 of the 1989 Act (general duties of Secretary of State and Director) there is substituted— The principal objective and general duties of the Secretary of State and the Authority. 3A 1 The principal objective of the Secretary of State and the Gas and Electricity Markets Authority (in this Act referred to as “ the Authority ”) in carrying out their respective functions under this Part is to protect the interests of consumers in relation to electricity conveyed by distribution systems, wherever appropriate by promoting effective competition between persons engaged in, or in commercial activities connected with, the generation, transmission, distribution or supply of electricity. 2 The Secretary of State and the Authority shall carry out those functions in the manner which he or it considers is best calculated to further the principal objective, having regard to— a the need to secure that all reasonable demands for electricity are met; and b the need to secure that licence holders are able to finance the activities which are the subject of obligations imposed by or under this Part or the Utilities Act 2000. 3 In performing that duty, the Secretary of State or the Authority shall have regard to the interests of— a individuals who are disabled or chronically sick; b individuals of pensionable age; c individuals with low incomes; and d individuals residing in rural areas; but that is not to be taken as implying that regard may not be had to the interests of other descriptions of consumer. 4 The Secretary of State and the Authority may, in carrying out any function under this Part, have regard to— a the interests of consumers in relation to gas conveyed through pipes (within the meaning of the Gas Act 1986); and b any interests of consumers in relation to— i telecommunication services and telecommunication apparatus (within the meaning of the Telecommunications Act 1984); or ii water services or sewerage services (within the meaning of the Water Industry Act 1991), which are affected by the carrying out of that function. 5 Subject to subsection (2), the Secretary of State and the Authority shall carry out their respective functions under this Part in the manner which he or it considers is best calculated— a to promote efficiency and economy on the part of persons authorised by licences or exemptions to transmit, distribute or supply electricity and the efficient use of electricity conveyed by distribution systems; b to protect the public from dangers arising from the generation, transmission, distribution or supply of electricity; and c to secure a diverse and viable long-term energy supply, and shall, in carrying out those functions, have regard to the effect on the environment of activities connected with the generation, transmission, distribution or supply of electricity. 6 In this section “ consumers ” includes both existing and future consumers. 7 In this section and sections 3B and 3C, references to functions of the Secretary of State or the Authority under this Part include a reference to functions under the Utilities Act 2000 which relate to electricity conveyed by distribution systems. 8 In this Part, unless the context otherwise requires— “ exemption ” means an exemption granted under section 5; “ licence ” means a licence under section 6 and “ licence holder ” shall be construed accordingly. Guidance on social and environmental matters in relation to electricity. 14 After section 3A of the 1989 Act (which is inserted by section 13 above) there is inserted— Guidance on social and environmental matters. 3B 1 The Secretary of State shall from time to time issue guidance about the making by the Authority of a contribution towards the attainment of any social or environmental policies set out or referred to in the guidance. 2 The Authority shall, in carrying out its functions under this Part, have regard to any guidance issued under this section. 3 Before issuing guidance under this section the Secretary of State shall consult— a the Authority; b the Gas and Electricity Consumer Council (in this Act referred to as “ the Council ”); c licence holders; and d such other persons as the Secretary of State considers it appropriate to consult in relation to the guidance. 4 A draft of any guidance proposed to be issued under this section shall be laid before each House of Parliament. 5 Guidance shall not be issued under this section until after the period of forty days beginning with— a the day on which the draft is laid before each House of Parliament; or b if the draft is laid before the House of Lords on one day and the House of Commons on another, the later of those two days. 6 If, before the end of that period, either House resolves that the guidance should not be issued, the Secretary of State must not issue it. 7 In reckoning any period of forty days for the purposes of subsection (5) or (6), no account shall be taken of any time during which— a Parliament is dissolved or prorogued; or b both Houses are adjourned for more than four days. 8 The Secretary of State shall arrange for any guidance issued under this section to be published in such manner as he considers appropriate. Health and safety in relation to electricity. 15 After section 3B of the 1989 Act (which is inserted by section 14 above) there is inserted— Health and safety. 3C 1 The Secretary of State and the Authority shall consult the Health and Safety Commission about all electricity safety issues which may be relevant to the carrying out of any of their respective functions under this Part. 2 The Secretary of State may require the Authority also to consult him about electricity safety issues of particular descriptions. 3 The Secretary of State and the Authority shall, in carrying out their respective functions under this Part, take into account any advice given by the Health and Safety Commission about any electricity safety issue (whether or not in response to consultation under subsection (1)). 4 The Authority shall, in carrying out its functions under this Part, take into account any advice given by the Secretary of State about any electricity safety issue (whether or not in response to consultation under subsection (2)). 5 For the purposes of this section an electricity safety issue is anything concerning the generation, transmission, distribution or supply of electricity which may affect the health and safety of— a members of the public; or b persons employed in connection with any of those activities. Exceptions from the general duties under 1989 Act. 16 After section 3C of the 1989 Act (which is inserted by section 15 above) there is inserted— Exceptions from sections 3A to 3C. 3D 1 Section 3A does not apply in relation to the issuing by the Secretary of State of guidance under section 3B. 2 Sections 3A to 3C do not apply in relation to functions of the Secretary of State under section 36 or 37. 3 Sections 3A to 3C 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 43(3). 4 The Authority may nevertheless, when exercising any function under section 43(3), have regard to any matter in respect of which a duty is imposed by sections 3A to 3C (“ a general matter ”), if it is a matter to which the Director General of Fair Trading could have regard when exercising that function (but that is not to be taken as implying that, in relation to functions mentioned in subsection (2), regard may not be had to any general matter). 5 The duties imposed by sections 3A to 3C 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 Community obligation or otherwise). Part III Functions of the Council Preliminary. 17 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Acquisition and review of information. 18 1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 After section 41H of the 1986 Act (which is inserted by section 88 below) there is inserted— Service by Authority of certain notices on Council. 41I Where the Authority is required by any provision of this Part to publish a notice or any other document, the Authority shall send a copy of the document to the Council. 6 Before section 57 of the 1989 Act (restriction on disclosure of information) there is inserted— Service by Authority of certain notices on Council. 56G Where the Authority is required by any provision of this Part to publish a notice or any other document, the Authority shall send a copy of the document to the Council. 7 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Provision of advice and information to public authorities and other persons. 19 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Provision of information to consumers. 20 1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 After section 33D of the 1986 Act there is inserted— Publication of statistical information about standards of performance. 33DA 1 It shall be the duty of the Council to publish, in such form and manner and with such frequency as it thinks appropriate, such statistical information as it considers appropriate in relation to— a the levels of performance achieved by gas suppliers and gas transporters in respect of— i standards of performance prescribed or determined under sections 33A, 33AA, 33B and 33BA; and ii energy efficiency obligations imposed by order under section 33BC; and b complaints made by consumers about any matter relating to the activities of such suppliers or transporters and the handling of such complaints. 2 In subsection (1)(b) “ complaints ” includes complaints made directly to gas suppliers and gas transporters (or anyone carrying on activities on their behalf) and complaints to the Authority or the Council. 6 After section 42A of the 1989 Act there is inserted— Publication of statistical information about standards of performance. 42AA 1 It shall be the duty of the Council to publish, in such form and manner and with such frequency as it thinks appropriate, such statistical information as it considers appropriate relating to— a the levels of performance achieved by electricity suppliers and electricity distributors in respect of— i standards of performance prescribed or determined under sections 39, 39A, 40 and 40A; and ii energy efficiency obligations imposed by order under section 41A; and b complaints made by consumers about any matter relating to the activities of such suppliers or distributors and the handling of such complaints. 2 In subsection (1)(b) “ complaints ” includes complaints made directly to electricity suppliers and electricity distributors (or anyone carrying on activities on their behalf) and complaints to the Authority or the Council. 7 In consequence of this section, section 33C(4) and (5) of the 1986 Act and section 42(4) and (5) of the 1989 Act shall cease to have effect. Power to publish advice and information about consumer matters. 21 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Complaints. 22 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Investigations. 23 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Provision of information to Council. 24 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Publication of notice of reasons. 25 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Provision of information by Council to Authority. 26 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Sections 24 to 26: supplementary. 27 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Part IV Amendment of the Electricity Act 1989 Electricity licensing Prohibition on unlicensed distribution of electricity. 28 1 Section 4 of the 1989 Act (prohibition on unlicensed supply etc. of electricity) is amended as follows. 2 In subsection (1), after paragraph (b) there is inserted— bb distributes electricity for that purpose; . 3 In subsection (4)— a before the definition of “supply” there is inserted— “ distribute ”, in relation to electricity, means distribute by means of a distribution system, that is to say, a system which consists (wholly or mainly) of low voltage lines and electrical plant and is used for conveying electricity to any premises or to any other distribution system; b . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Exemptions from electricity licensing. 29 For section 5 of the 1989 Act (exemptions from prohibition) there is substituted— Exemptions from prohibition. 5 1 The Secretary of State may by order grant exemption from paragraph (a), (b), (bb) or (c) of section 4(1)— a either to a person or to persons of a class; b either generally or to such extent as may be specified in the order; and c either unconditionally or subject to such conditions as may be so specified. 2 Before making an order under subsection (1) the Secretary of State shall give notice— a stating that he proposes to make such an order and setting out the terms of the proposed order; b stating the reasons why he proposes to make the order in the terms proposed; and c specifying the time (not being less than 28 days from the date of publication of the notice) within which representations with respect to the proposals may be made, and shall consider any representations which are duly made in respect of the proposals and not withdrawn. 3 The notice required by subsection (2) shall be given— a by serving a copy of it on the Authority and the Council; and b by publishing it in such manner as the Secretary of State considers appropriate for bringing it to the attention of those likely to be affected by the proposed order. 4 Notice of an exemption granted to a person shall be given— a by serving a copy of the exemption on him; and b by publishing the exemption in such manner as the Secretary of State considers appropriate for bringing it to the attention of other persons who may be affected by it. 5 Notice of an exemption granted to persons of a class shall be given by publishing the exemption in such manner as the Secretary of State considers appropriate for bringing it to the attention of— a persons of that class; and b other persons who may be affected by it. 6 An exemption may be granted— a indefinitely; or b for a period specified in, or determined by or under, the exemption. 7 Conditions subject to which an exemption is granted may (in particular) require any person carrying on any activity in pursuance of the exemption— a to comply with any direction given by the Secretary of State or the Authority as to such matters as are specified in the exemption or are of a description so specified; b except in so far as the Secretary of State or the Authority consents to his doing or not doing them, not to do or to do such things as are specified in the exemption or are of a description so specified; and c to refer for determination by the Secretary of State or the Authority such questions arising under the exemption as are specified in the exemption or are of a description so specified. 8 The Secretary of State may by order revoke an order by which an exemption was granted to a person or vary an order by which more than one exemption was so granted so as to terminate any of the exemptions— a at the person’s request; b in accordance with any provision of the order by which the exemption was granted; or c if it appears to the Secretary of State inappropriate that the exemption should continue to have effect. 9 The Secretary of State may by order revoke an order by which an exemption was granted to persons of a class or vary an order by which more than one exemption was so granted so as to terminate any of the exemptions— a in accordance with any provision of the order by which the exemption was granted; or b if it appears to the Secretary of State inappropriate that the exemption should continue to have effect. 10 The Secretary of State may by direction withdraw an exemption granted to persons of a class from any person of that class— a at the person’s request; b in accordance with any provision of the order by which the exemption was granted; or c if it appears to the Secretary of State inappropriate that the exemption should continue to have effect in the case of the person. 11 Before— a making an order under subsection (8)(b) or (c) or (9); or b giving a direction under subsection (10)(b) or (c), the Secretary of State shall consult the Authority and give notice of his proposal to do so (with reasons) and of a period within which representations may be made to him. 12 The notice under subsection (11) shall be given— a where the Secretary of State is proposing to make an order under subsection (8)(b) or (c), by serving a copy of it on the person to whom the exemption was granted; b where he is proposing to make an order under subsection (9), by publishing it in such manner as the Secretary of State considers appropriate for bringing it to the attention of persons of the class of persons to whom the exemption was granted; and c where he is proposing to give a direction under subsection (10)(b) or (c), by serving a copy of it on the person from whom he proposes to withdraw the exemption. Licences authorising supply etc. of electricity. 30 For section 6 of the 1989 Act there is substituted— Licences authorising supply, etc. 6 1 The Authority may grant any of the following licences— a a licence authorising a person to generate electricity for the purpose of giving a supply to any premises or enabling a supply to be so given (“ a generation licence ”); b a licence authorising a person to transmit electricity for that purpose in that person’s authorised area (“ a transmission licence ”); c a licence authorising a person to distribute electricity for that purpose (“ a distribution licence ”); or d a licence authorising a person to supply electricity to premises (“ a supply licence ”). 2 The same person may not be the holder of both a distribution licence and a supply licence. 3 A supply licence may authorise the holder to supply electricity— a to any premises; b only to premises specified in the licence, or to premises of a description so specified; or c only to any premises situated in a specified area, or to premises of a specified description which are so situated. 4 The Authority may, with the consent of the holder of a supply licence, modify terms included in the licence in pursuance of subsection (3) so as to extend or restrict the premises to which the licence holder may give a supply of electricity. 5 A distribution licence may authorise the holder to distribute electricity in any area, or only in an area specified in the licence. 6 The Authority may, with the consent of the holder of a distribution licence, modify terms included in the licence in pursuance of subsection (5) so as to extend or restrict the area within which the licence holder may distribute electricity. 7 A licence and any extension or restriction of a licence under subsection (4) or (6) shall be in writing. 8 A licence shall, unless previously revoked in accordance with any term of the licence, continue in force for such period as may be specified in or determined by or under the licence. 9 In this Part— “ authorised area ”, in relation to the holder of a transmission licence, means so much of the area designated as such in the licence as is not for the time being designated in a subsequent transmission licence; “ electricity distributor ” means any person who is authorised by a distribution licence to distribute electricity except where he is acting otherwise than for purposes connected with the carrying on of activities authorised by the licence; “ electricity supplier ” means any person who is authorised by a supply licence to supply electricity except where he is acting otherwise than for purposes connected with the carrying on of activities authorised by the licence. Procedure for licence applications. 6A 1 This section applies to any application— a for a licence; or b for the extension or restriction of a licence under section 6(4) or (6). 2 The application shall be made in such form and manner, and shall contain, or be accompanied by, such information and documents and such fee (if any), as may be prescribed. 3 Within the prescribed period after the making of the application the applicant shall publish a notice of the application in the prescribed manner. 4 Where the Authority proposes to refuse the application, it shall give to the applicant a notice— a stating that it proposes to refuse the application; b stating the reasons why it proposes to refuse the application; and c specifying the time within which representations with respect to the proposed refusal may be made, and shall consider any representations which are duly made and not withdrawn. 5 Where the Authority grants the licence, extension or restriction applied for, it shall as soon as practicable thereafter send a notice of the grant to any person who holds a licence and whose interests may, in the opinion of the Authority, be affected by the grant. 6 In this section “ prescribed ” means prescribed in regulations made by the Authority. 7 Any sums received by the Authority under this section shall be paid into the Consolidated Fund. Applications for transmission licences. 6B 1 This section applies to applications for a transmission licence (in addition to the requirements of section 6A). 2 The applicant shall give notice of the application to any person who holds a transmission licence and whose authorised area includes the whole or any part of the area to which the application relates. 3 Before granting the transmission licence applied for, the Authority shall give notice— a stating that it proposes to grant the licence; b stating the reasons why it proposes to grant the licence; and c specifying the time (not being less than 28 days from the date of publication of the notice) within which representations or objections with respect to the proposed licence may be made, and shall consider any representations or objections which are duly made and not withdrawn. 4 A notice under subsection (3) shall be given by publication in such manner as the Authority considers appropriate for the purpose of bringing the matters to which the notice relates to the attention of persons likely to be affected by them. 5 The Authority s