(See end of Document for details) “designated”, in relation to a scheme, means specified in or determined in (b) an Act of the Scottish Parliament, (c) an Act or Measure of Senedd Cymru, or (d) Northern Ireland legislation; “property” includes interests of any description; “the transfer date” means a date specified by a scheme as the date on which I92 S. 86 in force at 26.12.2023, see s. 334(3)(b) 87 Modification of transfer schemes (1) The Secretary of State may modify a transfer scheme made under section 86, subject (2) If a transfer under the scheme has taken effect, any modification under subsection (1) that relates to the transfer may be made only with the agreement of the transferor or transferee affected by the modification (or, where both the transferor and transferee are affected, with the agreement of both of them). (3) A modification takes effect from such date as the Secretary of State may specify (which may be the date when the original scheme came into effect). (4) In this section “transferor” and “transferee” have the same meaning as in section 86. I93 S. 87 in force at 26.12.2023, see s. 334(3)(b) (1) The Secretary of State is not, by virtue of the exercise of a power conferred by or by virtue of this Chapter, to be regarded as— (a) a person occupying the position of director in relation to a Chapter 1 entity; (b) a person in accordance with whose directions or instructions the directors of a Chapter 1 entity are accustomed to act; (c) a person in accordance with whose directions or instructions the members of a Chapter 1 entity which is a limited liability partnership are accustomed to act; (d) exercising any function of management in a Chapter 1 entity; (e) a principal of a Chapter 1 entity. Part 2 – Carbon dioxide capture, storage etc and hydrogen production, transport and storage Chapter 1 – Revenue support contracts Document 2024-10-14 This version of this Act contains provisions that are prospective. Changes to There are currently no known outstanding effects for the Energy Act 2023. (See end of Document for details) (2) An allocation body is not, by virtue of the exercise of a power conferred by or by virtue of this Chapter, to be regarded as— (a) a person occupying the position of director in relation to a revenue support (b) a person in accordance with whose directions or instructions the directors of a revenue support counterparty are accustomed to act; (c) a person in accordance with whose directions or instructions the members of a revenue support counterparty which is a limited liability partnership are (d) exercising any function of management in a revenue support counterparty; (e) a principal of a revenue support counterparty. (3) In this section “Chapter 1 entity” means the following— (a) a revenue support counterparty; (b) a hydrogen levy administrator; I94 S. 88 in force at Royal Assent for specified purposes, see s. 334(3)(a)(vi) I95 S. 88 in force at 26.12.2023 in so far as not already in force, see s. 334(3)(b) 89 Modifications of licences etc for purposes related to levy obligations (1) The Secretary of State may modify— (a) a condition of a particular licence under section 7 [F1or 7AC] of the Gas Act 1986 (licensing of gas transporters [F2or code manager licence]); (b) the standard conditions incorporated in licences under section 7 of the Gas Act 1986 by virtue of section 8 of that Act; (c) a document maintained in accordance with the conditions of licences under section 7 [F3or 7AC] of the Gas Act 1986, or an agreement that gives effect (2) The Secretary of State may modify— (a) a condition of a particular licence under Article 8(1)(a) of the Gas (Northern Ireland) Order 1996 (S.I. 1996/275 (N.I. 2)) (licences to convey gas); (b) the standard conditions of licences under Article 8(1)(a) of that Order; (c) a document maintained in accordance with the conditions of licences under Article 8(1)(a) of that Order, or an agreement that gives effect to a document (3) The powers conferred by subsections (1) and (2) may be exercised only for the purpose of facilitating or supporting enforcement of, and administration in connection with, obligations under regulations within section 70 (including facilitation and support by way of allowing or requiring the provision of services). (4) Provision included in a licence, or in a document or agreement relating to licences, by virtue of any power under subsection (1) or (2) may in particular include provision of a kind that may be included in revenue support regulations. Part 2 – Carbon dioxide capture, storage etc and hydrogen production, transport and storage Chapter 1 – Revenue support contracts Document 2024-10-14 This version of this Act contains provisions that are prospective. Changes to There are currently no known outstanding effects for the Energy Act 2023. (See end of Document for details) (5) Provision included in a licence, or in a document or agreement relating to licences, by virtue of a power conferred by this section may do anything authorised for licences (a) section 7B(5)(a), (6) or (7) of the Gas Act 1986, or (b) Article 10(3)(a) to (d), (4), (5) or (6A) of the Gas (Northern Ireland) Order (6) For the purposes of subsection (5)(b), the provisions referred to in that paragraph are to be read as if references to the Northern Ireland Authority for Utility Regulation included the Secretary of State.
(7) If under subsection (1) the Secretary of State makes modifications of the standard conditions of a licence, the GEMA must— (a) make the same modification of those standard conditions for the purposes of their incorporation in licences of that type granted after that time, and (8) If under subsection (2) the Secretary of State makes modifications of the standard conditions of a licence, the Northern Ireland Authority for Utility Regulation must— (a) make the same modification of those standard conditions for the purposes of their incorporation in licences of that type granted after that time, and (9) Before making a modification under this section, the Secretary of State must consult— (a) the holder of any licence being modified, and (b) such other persons as the Secretary of State considers it appropriate to consult. (10) Subsection (9) may be satisfied by consultation before, as well as by consultation after, F1 Words in s. 89(1)(a) inserted (10.9.2024) by Energy Act 2023 (c. 52), s. 334(1), Sch. 14 para. 12(a)(i); F2 Words in s. 89(1)(a) inserted (10.9.2024) by Energy Act 2023 (c. 52), s. 334(1), Sch. 14 para. 12(a) (ii); S.I. 2024/890, reg. 2(b)(x) F3 Words in s. 89(1)(c) inserted (10.9.2024) by Energy Act 2023 (c. 52), s. 334(1), Sch. 14 para. 12(b); I96 S. 89 in force at 26.12.2023, see s. 334(3)(b) 90 Electricity system operator and gas system planner modifications (1) The Secretary of State may, for the purpose of facilitating or ensuring the effective performance of functions specified in subsection (3), modify— (a) the conditions of a licence under section 6(1)(da) of the Electricity Act 1989 (electricity system operator licence); (b) a document maintained in accordance with the conditions of such a licence, or an agreement that gives effect to a document so maintained. Part 2 – Carbon dioxide capture, storage etc and hydrogen production, transport and storage Chapter 1 – Revenue support contracts Document 2024-10-14 This version of this Act contains provisions that are prospective. Changes to There are currently no known outstanding effects for the Energy Act 2023. (See end of Document for details) (2) The Secretary of State may, for the purpose of facilitating or ensuring the effective performance of functions specified in subsection (3), modify— (a) the conditions of a licence under section 7AA of the Gas Act 1986 (gas system (b) a document maintained in accordance with the conditions of such a licence, or an agreement that gives effect to a document so maintained. (3) The functions referred to in subsections (1) and (2) are— (a) functions of hydrogen production allocation bodies, and (b) other functions under this Chapter which are related to such functions. (4) Modifications under subsections (1) and (2) may only make provision in relation to times when the person holding the licence is a hydrogen production allocation body. (5) The provision referred to in subsection (4) includes consequential or transitional provision in relation to times when it is no longer the case that the person holding the licence is a hydrogen production allocation body. (6) Provision included in a licence, or in a document or agreement relating to licences, by virtue of a power under this section may in particular— (a) include provision of any kind that may be included in revenue support regulations or regulations under section 73; (b) do any of the things authorised for licences of that type by— (i) section 7B(5)(a), (5ZA), (6) or (7) of the Gas Act 1986, or (ii) section 7(3), (4), (5) or (6A) of the Electricity Act 1989. (7) Before making a modification under this section the Secretary of State must consult— (a) the holder of any licence being modified; (c) such other persons as the Secretary of State considers it appropriate to consult. (8) Subsection (7) may be satisfied by consultation before, as well as by consultation after, I97 S. 90 in force at 26.12.2023, see s. 334(3)(b) 91 Sections 89 and 90: supplementary (1) In this section “relevant power” means a power conferred by— (a) subsection (1) or (2) of section 89, or (2) Before making modifications under a relevant power, the Secretary of State must lay a draft of the modifications before Parliament. (3) If, within the 40-day period, either House of Parliament resolves not to approve the draft, the Secretary of State may not take any further steps in relation to the proposed

Part 2 – Carbon dioxide capture, storage etc and hydrogen production, transport and storage Chapter 1 – Revenue support contracts Document 2024-10-14 This version of this Act contains provisions that are prospective. Changes to There are currently no known outstanding effects for the Energy Act 2023. (See end of Document for details) (4) If no such resolution is made within that period, the Secretary of State may make the modifications in the form of the draft. (5) Subsection (3) does not prevent a new draft of proposed modifications being laid (6) In this section “40-day period”, in relation to a draft of proposed modifications, means the period of 40 days beginning with the day on which the draft is laid before Parliament (or, if it is not laid before each House of Parliament on the same day, the later of the 2 days on which it is laid). (7) For the purposes of calculating the 40-day period, no account is to be taken of any period during which Parliament is dissolved or prorogued or during which both Houses are adjourned for more than 4 days.
(a) may be exercised generally, only in relation to specified cases or subject to exceptions (including provision for a case to be excepted only so long as specified conditions are satisfied); (b) may be exercised differently in different cases or circumstances; (c) includes a power to make incidental, supplementary, consequential or (9) Provision included in a licence, or in a document or agreement relating to licences, by virtue of a relevant power— (a) may make different provision for different cases; (b) need not relate to the activities authorised by the licence. (10) The Secretary of State must publish details of any modifications made under a relevant power as soon as reasonably practicable after they are made. (11) A modification made under a relevant power of part of a standard condition of a licence does not prevent any other part of the condition from continuing to be regarded as a standard condition for the purposes of Part 1 of the Gas Act 1986 or the Gas (Northern (12) The power conferred by a relevant power to “modify” (in relation to licence conditions or a document) includes a power to amend, add to or remove, and references to modifications are to be construed accordingly. (13) In section 81 of the Utilities Act 2000 (standard conditions of gas licences), in subsection (2), after “Energy Prices Act 2022” insert “or under section 89 or sections 245 to 247 of the Energy Act 2023”. I98 S. 91 in force at 26.12.2023, see s. 334(3)(b)

Part 2 – Carbon dioxide capture, storage etc and hydrogen production, transport and storage Chapter 2 – Decommissioning of carbon storage installations Document 2024-10-14 This version of this Act contains provisions that are prospective. Changes to There are currently no known outstanding effects for the Energy Act 2023. (See end of Document for details) Financing of costs of decommissioning etc 92 Financing of costs of decommissioning etc (1) The Secretary of State may by regulations make provision for requiring relevant persons to provide security for the performance of obligations relating to the future abandonment or decommissioning of carbon dioxide-related sites, pipelines or (2) For the purposes of subsection (1) an installation, site or pipeline is “carbon dioxide- related” if it is, or is to be, used for a purpose related to the geological storage, or transportation, of carbon dioxide. (3) In this section references to an installation, site or pipeline include one that is located (a) the territorial sea adjacent to the United Kingdom, or (b) waters in a Gas Importation and Storage Zone (within the meaning given by section 1 of the Energy Act 2008). (4) The following provisions of this section are without prejudice to the generality (5) In this section “relevant person” means a person who— (a) holds a licence under section 7, or (b) is a person to whom a notice has been, or may be, given under section 29 of the Petroleum Act 1998 (preparation of abandonment programmes) in respect of a carbon storage installation. (6) Regulations under subsection (1) may— (a) require relevant persons to provide the Secretary of State with estimates of costs that are likely to be incurred in connection with obligations such as are mentioned in subsection (1) (“decommissioning costs”); (b) make provision about the estimation of decommissioning costs and about the manner in which such estimates are to be verified (which may include provision requiring verification by an independent third party); (c) require relevant persons to review estimates of decommissioning costs at times, or at intervals, specified in the regulations; (d) make provision about the approval by the Secretary of State of estimates of (e) provide for information specified, or of a description specified, in the regulations to be supplied to the Secretary of State by relevant persons at such intervals, or on such occasions, as may be prescribed by the regulations; (f) require the Secretary of State to consult the Oil and Gas Authority or any other person specified in the regulations before exercising functions by virtue (7) Regulations under subsection (1) may make provision—

Part 2 – Carbon dioxide capture, storage etc and hydrogen production, transport and storage Chapter 2 – Decommissioning of carbon storage installations Document 2024-10-14 This version of this Act contains provisions that are prospective. Changes to There are currently no known outstanding effects for the Energy Act 2023. (See end of Document for details) (a) requiring that security for the discharge of liabilities in respect of decommissioning costs must be provided by way of a fund (a (b) about the management of decommissioning funds; (c) about payments to a relevant person, or another person, from such funds; (d) providing for payments from such funds to be subject to the approval of the (e) imposing on a relevant authority functions with regard to— (i) the monitoring and oversight of decommissioning funds; (ii) the approval of any matter relating to such a fund. (8) This section is without prejudice to the breadth of subsection (4) of section 30 of the (9) Regulations under subsection (1) may require the Secretary of State to publish (a) estimates of decommissioning costs (including factors which it may be appropriate to consider in deciding whether or not to approve estimates of (b) the structure, accrual and management of decommissioning funds.
(10) Guidance by virtue of this section may make different provision for different cases “carbon storage installation” has the same meaning as in section 30 of the “decommissioning costs” is to be interpreted in accordance with “decommissioning fund” is to be interpreted in accordance with “economic regulator” has the same meaning as in Part 1 (see section 55); “geological storage” has the same meaning as in Part 1 (see section 55); “relevant authority” means the Secretary of State, the economic regulator I99 S. 92 in force at 26.12.2023, see s. 334(3)(b) (1) Regulations under section 92(1) may make provision— (a) enabling a relevant authority to charge fees to relevant persons in order to cover the costs of the exercise of the authority’s functions under the (b) about how fees payable by virtue of the regulations are to be determined; (c) about when fees payable by virtue of the regulations are to be paid. Part 2 – Carbon dioxide capture, storage etc and hydrogen production, transport and storage Chapter 2 – Decommissioning of carbon storage installations Document 2024-10-14 This version of this Act contains provisions that are prospective. Changes to There are currently no known outstanding effects for the Energy Act 2023. (See end of Document for details) (2) Regulations under section 92 (1) may make provision about the supplying of (a) provision for the Secretary of State to require any other person to supply information to the Secretary of State for the purposes of the Secretary of State’s functions under regulations under that section; (b) about the sharing by the Secretary of State with the Oil and Gas Authority or the economic regulator of information about funds established as mentioned (3) Regulations under section 92 (1) may make provision about compliance with requirements imposed by or under the regulations, including— (a) provision imposing civil penalties; (b) provision making it an offence to contravene specified provisions of the (4) Where regulations under section 92(1) provide for the imposition of a civil penalty, they must also provide for a right of appeal against the imposition of the penalty. (5) Where regulations under section 92 (1) create an offence, they must also make provision as to the mode of trial and punishment of offences, but— (a) any provision as to punishment on summary conviction must not authorise imprisonment or, in the case of summary conviction in Scotland or Northern Ireland, a fine exceeding the statutory maximum; (b) any provision as to punishment on conviction on indictment must not authorise imprisonment for a term exceeding 2 years. (6) Regulations under section 92(1) may— (a) make different provision for different purposes; (b) create exceptions to any requirement imposed by the regulations. (7) Regulations under section 92(1) may confer any function on any person. (8) Regulations under section 92(1) may provide for a function conferred on a person to be exercisable on that person’s behalf by another person. “economic regulator” has the same meaning as in Part 1 (see section 55); “relevant authority” means the Secretary of State, the economic regulator “relevant person” has the same meaning as in section 92. (10) Regulations under section 92(1) may make any amendments of— (a) the Storage of Carbon Dioxide (Licensing etc.) Regulations 2010 ( S.I. (b) the Storage of Carbon Dioxide (Licensing etc.) (Scotland) Regulations 2011 (c) the Storage of Carbon Dioxide (Termination of Licences) Regulations 2011 (d) the Storage of Carbon Dioxide (Licensing etc.) Regulations (Northern Ireland) 2015 (S.R. (N.I.) 2015 No. 387), that the Secretary of State considers appropriate in consequence of, or of provision made under, section 92 or this section. Part 2 – Carbon dioxide capture, storage etc and hydrogen production, transport and storage Chapter 2 – Decommissioning of carbon storage installations Document 2024-10-14 This version of this Act contains provisions that are prospective. Changes to There are currently no known outstanding effects for the Energy Act 2023. (See end of Document for details) (11) Regulations under section 92(1) containing any of the following (with or without other provision) are subject to the affirmative procedure— (a) provision creating a criminal offence; (b) provision creating a civil penalty. (12) Any other regulations under section 92(1) are subject to the negative procedure. I100 S. 93 in force at 26.12.2023, see s. 334(3)(b) 94 Regulations under section 92(1): procedure with devolved authorities (1) Before making regulations under section 92(1) that contain provision within devolved competence, the Secretary of State must give notice to each relevant devolved (a) stating that the Secretary of State proposes to make regulations (b) specifying the period (of not less than 28 days from the date on which the notice is given) within which representations may be made with respect to the provision within the relevant devolved competence, and must consider any representations duly made and not withdrawn. (2) In this section, “relevant devolved authority”, in relation to regulations, means— (a) the Scottish Ministers, if the regulations contain provision within Scottish (b) the Welsh Ministers, if the regulations contain provision within Welsh (c) the Department for the Economy in Northern Ireland, if the regulations contain provision within Northern Ireland devolved competence; and “the relevant devolved competence”, in relation to a relevant devolved authority, is to be construed accordingly.
(3) For the purposes of this section, provision— (a) is within Scottish devolved competence if it would be within the legislative competence of the Scottish Parliament if it were contained in an Act of that (b) is within Welsh devolved competence if it would be within the legislative competence of Senedd Cymru if it were contained in an Act of the Senedd (ignoring any requirement for the consent of a Minister of the Crown imposed under Schedule 7B to the Government of Wales Act 2006); (c) is within Northern Ireland devolved competence if it— (i) would be within the legislative competence of the Northern Ireland Assembly if it were contained in an Act of that Assembly, and (ii) would not, if it were contained in a Bill in the Northern Ireland Assembly, result in the Bill requiring the consent of the Secretary of State under section 8 of the Northern Ireland Act 1998; and references to provision being within devolved competence are to provision that is within Scottish, Welsh or Northern Ireland devolved competence. Part 2 – Carbon dioxide capture, storage etc and hydrogen production, transport and storage Chapter 2 – Decommissioning of carbon storage installations Document 2024-10-14 This version of this Act contains provisions that are prospective. Changes to There are currently no known outstanding effects for the Energy Act 2023. (See end of Document for details) I101 S. 94 in force at 26.12.2023, see s. 334(3)(b) Abandonment of carbon storage installations etc 95 Provisions relating to Part 4 of the Petroleum Act 1998 (1) Section 30 of the Energy Act 2008 (abandonment of installations) is amended in accordance with subsections (2) to (6). (2) In subsection (1), for “, (2)” substitute “to (2)”. (3) After subsection (1A) insert— “(1AA) Part 4 of the 1998 Act, in its application in relation to carbon storage installations, has effect with the modifications set out in subsection (1AB). (1AB) The modifications are as follows— (a) in section 30 of the 1998 Act, for subsections (5) and (6) substitute— “(5) This subsection applies to a person in relation to a carbon (i) to use a controlled place for the storage of carbon dioxide (with a view to its permanent disposal, or as an interim measure prior to its (ii) to convert any natural feature in a controlled place for the purpose of storing carbon dioxide (with a view to its permanent disposal, or as an interim measure prior to its (iii) to explore a controlled place with a view to, or in connection with, the carrying on of the activities within sub-paragraph (i) or (ii), and (i) any activity mentioned in subsection (6) is carried on from, by means of or on the (ii) the person intends to carry on an activity mentioned in that subsection from, by means or if the person had such a right when any such activity was (6) The activities referred to in subsection (5) are— (a) the use of a controlled place for the storage of carbon dioxide (with a view to its permanent disposal, or as an interim measure prior to its permanent

Part 2 – Carbon dioxide capture, storage etc and hydrogen production, transport and storage Chapter 2 – Decommissioning of carbon storage installations Document 2024-10-14 This version of this Act contains provisions that are prospective. Changes to There are currently no known outstanding effects for the Energy Act 2023. (See end of Document for details) disposal) in the exercise of the right mentioned (b) the conversion of any natural feature in a controlled place for the purpose of storing carbon dioxide (with a view to its permanent disposal, or as an interim measure prior to its permanent disposal) in the exercise of the right mentioned in subsection (5)(a); (c) the exploration of a controlled place in the exercise of the right mentioned in subsection (5)(a) with a view to, or in connection with, the carrying on of activities within paragraph (a) or (b) of this subsection; (d) the conveyance in the controlled place mentioned in subsection (5)(a) of carbon dioxide by means of a pipe or system of pipes, in the exercise of the right mentioned in subsection (5)(a); and (e) the provision of accommodation for persons who work on or from an installation which is or has been maintained, or is intended to be established, for the carrying on of an activity falling within any of paragraphs (a) to (d) of this subsection.”; (b) in section 30(7) of that Act, in the words before paragraph (a), for (c) in section 31 of that Act, for subsection (B1) substitute— “(B1) This subsection applies to an activity if— (a) where the activity is within paragraph (a), (b) or (c) of section 30(6), the controlled place mentioned in that paragraph is one for which the installation is, or is to be, established or maintained; (b) where the activity is within paragraph (d) of section 30(6), the conveyance of the carbon dioxide relates to a controlled place for which the installation (c) where the activity is within paragraph (e) of section 30(6), the installation is in a controlled place in respect of which P has a licence under section 18 (d) in section 31 of that Act, omit subsection (C1); (e) in section 45 of that Act, in the appropriate place insert— ““controlled place” has the same meaning as in section 17 of the (4) After subsection (4A) insert— “(4B) The powers in subsections (2)(b) and (4) include power to amend or repeal (5) In subsection (5), for the words from “falling” to the end substitute “which is or has been maintained, or is intended to be established, for the purposes of an activity mentioned in section 17(2)(a), (b) or (c) to which subsection (6) applies.”

Part 2 – Carbon dioxide capture, storage etc and hydrogen production, transport and storage Chapter 2 – Decommissioning of carbon storage installations Document 2024-10-14 This version of this Act contains provisions that are prospective.
Changes to There are currently no known outstanding effects for the Energy Act 2023. (See end of Document for details) (6) In subsection (6), for the words from the beginning to “it” substitute “This subsection applies to any activity which is carried on from, by means of or on an installation (7) The power of the Scottish Ministers under section 30(2)(b) of the Energy Act 2008 to modify Part 4 of the Petroleum Act 1998 in its application to certain carbon storage installations includes power to make any modifications of that Part of that Act (in its application to the installations in question) that the Scottish Ministers consider appropriate in consequence of provision made by or under section 92 or 93. (8) The power of the Secretary of State under section 30(4) of the Energy Act 2008 to modify Part 4 of the Petroleum Act 1998 in its application to certain carbon storage installations includes power to make any modifications of that Part of that Act (in its application to the installations in question) that the Secretary considers appropriate in consequence of provision made by or under section 92 or 93. (9) In section 29 of the Petroleum Act 1998 (preparation of programmes), in subsection (6), for the words from “in question,” to the end substitute “in question if the Secretary of State has under section 32— (a) rejected that programme, or (b) approved it (whether or not the approval has been withdrawn).” (10) Section 38A of the Petroleum Act 1998 (protection of funds set aside for the purposes of abandonment programme) has effect as if the reference in subsection (1) of that section to the performance of obligations under an approved abandonment programme included a reference to the meeting of liabilities in respect of decommissioning costs in relation to carbon storage installations. “carbon storage installation” has the same meaning as in section 30 of the “decommissioning costs” has the meaning given by section 92. I102 S. 95 in force at 26.12.2023, see s. 334(3)(b) 96 Change of use installations (1) Section 30A of the Energy Act 2008 (installations converted for CCS demonstration projects) is amended as follows. (2) For the heading substitute “Change of use relief for certain installations”. (3) In subsection (1), for “by order” insert “, on an application made by a relevant person, (4) Omit subsections (2) and (3). (5) Before subsection (4) insert—

Part 2 – Carbon dioxide capture, storage etc and hydrogen production, transport and storage Chapter 2 – Decommissioning of carbon storage installations Document 2024-10-14 This version of this Act contains provisions that are prospective. Changes to There are currently no known outstanding effects for the Energy Act 2023. (See end of Document for details) “(3A) The Secretary of State must consult the Oil and Gas Authority before (a) whether to designate an installation under subsection (1); (b) whether to make a certification under subsection (5)(b).” (6) For subsection (4) substitute— “(4) An eligible CCS installation qualifies for change of use relief if— (a) the Secretary of State has given a CCS-related abandonment programme notice to a person in relation to the abandonment of the (b) the trigger event has occurred in relation to the installation. (4A) In subsection (4) “CCS-related abandonment programme notice” means an abandonment programme notice given under section 29 of the 1998 Act in that section’s application in relation to carbon storage installations (by virtue (7) For subsection (5) substitute— “(5) The trigger event occurs in relation to an eligible CCS installation when— (a) a decommissioning fund (as defined in section 92(7) of the Energy Act 2023) has been established for providing security for the discharge of liabilities in respect of decommissioning costs in relation (b) the Secretary of State certifies by notice in writing (an “approval notice”) that one or more relevant persons have paid into the fund an amount or amounts the total of which is not less than the required (a) “relevant person” means a person of a description specified in regulations made by the Secretary of State; (b) “the required amount” means an amount determined by the Secretary of State in accordance with regulations made by the Secretary of State. (5B) Where the Secretary of State gives an approval notice in relation to an eligible CCS installation the Secretary of State must— (a) give a copy of the approval notice to every person to whom a notice has been given under section 29(1) of the 1998 Act in relation to the (i) specifies the installation, and (ii) states that the Secretary of State has given an approval notice under subsection (5)(b) in relation to it.” (8) In subsection (11), for “an order made” substitute “a notice given”. (9) After subsection (11) insert— “(11A) The Secretary of State must publish a notice given under subsection (1).”

Part 2 – Carbon dioxide capture, storage etc and hydrogen production, transport and storage Chapter 2 – Decommissioning of carbon storage installations Document 2024-10-14 This version of this Act contains provisions that are prospective. Changes to There are currently no known outstanding effects for the Energy Act 2023. (See end of Document for details) (a) for ““CCS demonstration project” and “commercial electricity generation” have the same meanings” substitute “has the same meaning”; (b) omit the definition of “carbon storage facility”; (c) at the appropriate places insert— ““decommissioning costs” has the meaning given by section 92 of the “““relevant person” means a person to whom a notice may be given under section 29(1) of the 1998 Act in relation to an offshore installation (within the meaning given by section 44 of the 1998 Act);”. I103 S. 96 in force at 26.12.2023, see s. 334(3)(b) 97 Change of use carbon storage network pipelines (1) Section 30B of the Energy Act 2008 (submarine pipelines converted for CCS demonstration projects) is amended as follows. (2) For the heading substitute “Change of use carbon storage network pipelines”.
(3) For “CCS pipeline”, in each place it occurs, substitute “carbon storage network (4) In subsection (1), for “by order” insert “, on an application made by a relevant person, (5) After subsection (1) insert— “(1A) The Secretary of State must consult the Oil and Gas Authority before (a) whether to designate a pipeline under subsection (1); (b) whether to make a certification under subsection (3)(b).” (6) For subsection (2) substitute— “(2) An eligible carbon storage network pipeline qualifies for change of use relief (a) the Secretary of State has given a CCS-related abandonment programme notice to a person in relation to the abandonment of the (b) the trigger event has occurred in relation to the pipeline. (2A) In subsection (2) “CCS-related abandonment programme notice” means an abandonment programme notice under section 29 of the 1998 Act given at a time when the pipeline is used, or is to be used wholly or mainly— (a) for the purpose of disposing of carbon dioxide by way of geological (b) as a licensable means of transportation.” (7) For subsection (3) substitute—

Part 2 – Carbon dioxide capture, storage etc and hydrogen production, transport and storage Chapter 2 – Decommissioning of carbon storage installations Document 2024-10-14 This version of this Act contains provisions that are prospective. Changes to There are currently no known outstanding effects for the Energy Act 2023. (See end of Document for details) “(3) The trigger event occurs in relation to an eligible carbon storage network (a) a decommissioning fund (as defined in section 92(7) of the Energy Act 2023) has been established for providing security for the discharge of liabilities in respect of decommissioning costs in relation (b) the Secretary of State certifies by notice in writing (an “approval notice”) that one or more relevant persons have paid into the fund an amount or amounts the total of which is not less than the required (a) “relevant person” means a person of a description specified in regulations made by the Secretary of State; (b) “the required amount” means an amount determined by the Secretary of State in accordance with regulations made by the Secretary of State. (3B) Where the Secretary of State gives an approval notice in relation to an eligible carbon storage network pipeline, the Secretary of State must— (a) give a copy of the approval notice to every person to whom a notice has been given under section 29(1) of the 1998 Act in relation to the (i) specifies the pipeline, and (ii) states that the Secretary of State has given an approval notice under subsection (3)(b) in relation to it.” (8) In subsection (6), for “an order made” substitute “a notice given”. (9) After subsection (6) insert— “(6A) The Secretary of State must publish a notice given under subsection (1).” (a) for “and “CCS demonstration project” have the same meanings” substitute (b) omit the definition of “carbon storage facility”; (c) at the appropriate places insert— ““decommissioning costs” has the meaning given by section 92 of the “““geological storage”, in relation to carbon dioxide, has the same meaning as in Part 1 of the Energy Act 2023 (see section 55 of that “““licensable means of transportation” has the meaning given by section 2(3) of the Energy Act 2023;”; “““relevant person” means a person to whom a notice may be given under section 29(1) of the 1998 Act in relation to a submarine pipeline;”. I104 S. 97 in force at 26.12.2023, see s. 334(3)(b)

Part 2 – Carbon dioxide capture, storage etc and hydrogen production, transport and storage Chapter 3 – Strategy and policy statement Document 2024-10-14 This version of this Act contains provisions that are prospective. Changes to There are currently no known outstanding effects for the Energy Act 2023. (See end of Document for details) 98 Change of use supplementary (1) In the Energy Act 2008, after section 30B insert— “30C Relief under sections 30A and 30B: supplementary (1) The Secretary of State may by regulations make provision about the obtaining of information required, and sharing of information held, for the purposes of functions of the Secretary of State under sections 30A and 30B, including (a) for the Secretary of State to require the holder of a licence under section 7 of the Energy Act 2023, or a person who qualifies for change of use relief under section 30A or 30B, to provide information (b) authorising His Majesty’s Revenue and Customs (or anyone acting on their behalf) to disclose to the Secretary of State information held as mentioned in section 18(1) of the Commissioners for Revenue and (c) for the enforcement of any requirement imposed by virtue of the (2) For the purposes of subsection (1), a person “qualifies for change of use relief” (a) but for section 30A(6) they would be a person to whom a notice may be given under section 29(1) of the Petroleum Act 1998 in relation to a carbon storage installation, or (b) but for section 30B(4) they would be a person to whom a proposal may be made under section 29(1) of the Petroleum Act 1998 in relation to a submarine pipeline. “carbon storage installation” has the same meaning as in section 30 “submarine pipeline” has the same meaning as in Part 4 of the 1998 Act (see section 45 of that Act).” (2) In section 105 of the Energy Act 2008 (Parliamentary control of subordinate legislation), in subsection (2) omit paragraph (aa). I105 S. 98 in force at 26.12.2023, see s. 334(3)(b) 99 Designation of strategy and policy statement (1) The Secretary of State may designate a statement as the strategy and policy statement for the purposes of this Part (“the CCUS strategy and policy statement”)

Part 2 – Carbon dioxide capture, storage etc and hydrogen production, transport and storage Chapter 3 – Strategy and policy statement Document 2024-10-14 This version of this Act contains provisions that are prospective. Changes to There are currently no known outstanding effects for the Energy Act 2023.
(See end of Document for details) if the requirements set out in section 102 are satisfied (consultation and laying (2) The CCUS strategy and policy statement is a statement prepared by the Secretary of (a) the strategic priorities, and other main considerations, of His Majesty’s government in formulating its carbon dioxide capture, usage and storage policy for the United Kingdom (“strategic priorities”), (b) the particular outcomes to be achieved as a result of the implementation of that policy (“policy outcomes”), and (c) the roles and responsibilities of persons (whether the Secretary of State, the economic regulator or other persons) who are involved in implementing that policy or who have other functions that are affected by it. (3) In preparing a statement for designation under subsection (1) (or undertaking a review under section 101), the Secretary of State must take account of any statement for the time being designated under section 131 of the Energy Act 2013 (strategy and policy statement in respect of energy policy). (4) The Secretary of State must publish the CCUS strategy and policy statement (including any amended statement following a review under section 101) in such manner as the Secretary of State considers appropriate. (5) For the purposes of this section, carbon dioxide capture, usage and storage policy “for the United Kingdom” includes such policy for— (a) the territorial sea adjacent to the United Kingdom, or (b) waters in a Gas Importation and Storage Zone (within the meaning given by section 1 of the Energy Act 2008). “the CCUS strategy and policy statement” means the statement for the time being designated under subsection (1) as the strategy and policy statement for “economic regulator” has the same meaning as in Part 1 (see section 55); “policy outcomes” has the meaning given in subsection (2)(b); “strategic priorities” has the meaning given in subsection (2)(a). I106 S. 99 in force at 26.12.2023, see s. 334(3)(b) 100 Duties with regard to considerations in the statement (1) The economic regulator must have regard to the strategic priorities set out in the CCUS strategy and policy statement when carrying out CCUS-related functions under this (2) The Secretary of State and the economic regulator must carry out their respective CCUS-related functions under Part 1 and this Part in the manner which the Secretary of State or the economic regulator (as the case may be) considers is best calculated to further the delivery of the policy outcomes. Part 2 – Carbon dioxide capture, storage etc and hydrogen production, transport and storage Chapter 3 – Strategy and policy statement Document 2024-10-14 This version of this Act contains provisions that are prospective. Changes to There are currently no known outstanding effects for the Energy Act 2023. (See end of Document for details) (3) Subsection (2) is subject to the application of the principal objectives in the carrying (4) Subsections (1) and (2) do not apply to anything done by the economic regulator— (a) in the exercise of functions relating to the determination of disputes; (b) in the exercise of functions under section 36(1) or 37(1). (5) The duties imposed by subsections (1) and (2) do not affect the obligation of the economic regulator or the Secretary of State to perform or comply with any other duty or requirement (whether arising under this Act or another enactment or otherwise). (6) The economic regulator must give notice to the Secretary of State if at any time the economic regulator concludes that a policy outcome contained in the strategy and policy statement is not realistically achievable. (7) A notice under subsection (6) must include— (a) the grounds on which the conclusion was reached; (b) what (if anything) the economic regulator is doing, or proposes to do, for the purpose of furthering the delivery of the outcome so far as reasonably “CCUS-related functions” means functions to which the strategic priorities are relevant (not including functions under sections 69 to 72, 84(1) or (2) or 89, or other functions so far as carried out in connection with those functions); “principal objectives” means the principal objectives of the Secretary of State and the economic regulator set out in section 1(1). I107 S. 100 in force at 26.12.2023, see s. 334(3)(b) (1) The Secretary of State must review the CCUS strategy and policy statement if a period of 5 years has elapsed since the relevant time. (2) In this section “relevant time”, in relation to the CCUS strategy and policy statement, (a) the time when the statement was first designated under section 99, or (b) if later, the time when a review of the statement under this section last took (3) A review under subsection (1) must take place as soon as reasonably practicable after (4) The Secretary of State may review the CCUS strategy and policy statement at any (a) a Parliamentary general election has taken place since the relevant time, (b) the economic regulator has given notice to the Secretary of State under section 100(6) since the relevant time,

Part 2 – Carbon dioxide capture, storage etc and hydrogen production, transport and storage Chapter 3 – Strategy and policy statement Document 2024-10-14 This version of this Act contains provisions that are prospective. Changes to There are currently no known outstanding effects for the Energy Act 2023. (See end of Document for details) (c) a significant change in the policy of His Majesty’s government with regard to carbon dioxide capture, usage and storage has occurred since the relevant (d) the Secretary of State has commenced a review under section 134 of the Energy Act 2013 since the relevant time, (e) the Parliamentary approval requirement in relation to an amended statement was not met on the last review (see subsection (13)).
(5) The Secretary of State may determine that a significant change in the government’s policy with regard to carbon dioxide capture, usage and storage has occurred for the purposes of subsection (4)(c) only if— (a) the change was not anticipated at the relevant time, and (b) if the change had been so anticipated, it appears to the Secretary of State likely that the statement would have been different in a material way. (6) On a review under this section the Secretary of State may— (a) amend the statement (including by replacing the whole or part of the statement (b) leave the statement as it is, or (c) withdraw the statement’s designation as the strategy and policy statement. (7) The amendment of a statement under subsection (6)(a) has effect only if the Secretary of State designates under section 99 the amended statement as the strategy and policy statement (and the procedural requirements under section 102 apply in relation to any (8) For the purposes of this section, corrections of clerical or typographical errors are not to be treated as amendments made to the statement. (9) The designation of a statement as the strategy and policy statement ceases to have effect upon a subsequent designation of an amended statement as the strategy and policy statement in accordance with subsection (7). (10) Before proceeding under subsection (6) (b) or (c) the Secretary of State must give notice to the appropriate consultees— (a) setting out the Secretary of State’s proposed decision, and (b) specifying the period (of not less than 28 days from the date on which the notice is given) within which representations must be made, and the Secretary of State must consider any representations which are duly made and (11) For the purposes of subsection (10), the “appropriate consultees” are— (b) so far as the decision as to whether or not to proceed relates to Scottish devolved matters, the Scottish Ministers; (c) so far as that decision relates to Welsh devolved matters, the Welsh Ministers; (d) so far as that decision relates to Northern Ireland devolved matters, the Department for the Economy in Northern Ireland. (12) For the purposes of subsection (2)(b), a review of a statement takes place— (a) where the decision on the review is to amend the statement

Part 2 – Carbon dioxide capture, storage etc and hydrogen production, transport and storage Chapter 3 – Strategy and policy statement Document 2024-10-14 This version of this Act contains provisions that are prospective. Changes to There are currently no known outstanding effects for the Energy Act 2023. (See end of Document for details) (i) at the time when the amended statement is designated as the CCUS strategy and policy statement under section 99, or (ii) if the amended statement is not so designated, at the time when the amended statement was laid before Parliament for approval (b) where the decision on the review is to leave the statement as it is under subsection (6)(b), at the time when that decision is taken. (13) For the purposes of subsection (4) (e), the Parliamentary approval requirement in relation to an amended statement was not met on the last review if— (a) on the last review of the strategy and policy statement to be held under this section, an amended statement was laid before Parliament for approval (b) the amended statement was not designated because such approval was not (14) For the purposes of this section— (a) something relates to Welsh devolved matters so far as it relates to any matter provision about which would be within the legislative competence of Senedd Cymru if it were contained in an Act of the Senedd (ignoring any requirement for the consent of a Minister of the Crown imposed under Schedule 7B to the Government of Wales Act 2006); (b) something relates to Scottish devolved matters so far as it relates to any matter provision about which would be within the legislative competence of the Scottish Parliament if it were contained in an Act of that Parliament; (c) something relates to Northern Ireland devolved matters so far as it relates to any matter provision about which— (i) would be within the legislative competence of the Northern Ireland Assembly if it were contained in an Act of that Assembly, and (ii) would not, if it were contained in a Bill in the Northern Ireland Assembly, result in the Bill requiring the consent of the Secretary of State under section 8 of the Northern Ireland Act 1998. I108 S. 101 in force at 26.12.2023, see s. 334(3)(b) (1) This section sets out the requirements that must be satisfied in relation to a statement before the Secretary of State may designate it as the CCUS strategy and policy (2) In this section references to a statement include references to a statement as amended following a review under section 101(6)(a). (3) The Secretary of State must first— (a) prepare a draft of the statement, and (b) issue the draft to the required consultees for the purpose of consulting them

Part 2 – Carbon dioxide capture, storage etc and hydrogen production, transport and storage Chapter 3 – Strategy and policy statement Document 2024-10-14 This version of this Act contains provisions that are prospective. Changes to There are currently no known outstanding effects for the Energy Act 2023.
(See end of Document for details) (4) The “required consultees” are— (c) the Department for the Economy in Northern Ireland, and (5) The Secretary of State must then— (a) make such revisions to the draft as the Secretary of State considers appropriate as a result of responses to the consultation under subsection (3)(b), and (b) issue the revised draft for the purposes of further consultation about it to the required consultees and to such other persons as the Secretary of State (6) The Secretary of State must then— (a) make any further revisions to the draft that the Secretary of State considers appropriate as a result of responses to the consultation under subsection (5)(b), (b) prepare a report summarising those responses and the changes (if any) that the Secretary of State has made to the draft as a result. (7) In relation to required consultees within subsection (4) (b) to (d), references in subsections (3)(b) and (5)(b) to consultation about a draft are to consultation about the draft so far as it relates— (a) in the case of the Scottish Ministers, to Scottish devolved matters; (b) in the case of the Department for the Economy in Northern Ireland, to Northern Ireland devolved matters; (c) in the case of the Welsh Ministers, to Welsh devolved matters. (8) References in this section to relating to Scottish devolved matters, Northern Ireland devolved matters or Welsh devolved matters are to be interpreted in accordance (9) The Secretary of State must lay before Parliament— (a) the statement as revised under subsection (6)(a), and (b) the report prepared under subsection (6)(b). (10) The statement as laid under subsection (9)(a) must have been approved by a resolution of each House of Parliament before the Secretary of State may designate it as the strategy and policy statement under section 99. (11) The requirement under subsection (3) (a) to prepare a draft of a statement may be satisfied by preparation carried out before, as well as preparation carried out after, the I109 S. 102 in force at 26.12.2023, see s. 334(3)(b)

Part 2 – Carbon dioxide capture, storage etc and hydrogen production, transport and storage Chapter 4 – Carbon dioxide storage licences Document 2024-10-14 This version of this Act contains provisions that are prospective. Changes to There are currently no known outstanding effects for the Energy Act 2023. (See end of Document for details) 103 Specified provisions in carbon dioxide storage licences (1) Schedule 6 amends Schedule 1 to the Storage of Carbon Dioxide (Licensing etc.) Regulations 2010 (S.I. 2010/2221) (“the 2010 Regulations”). (2) Subsections (3) to (5) apply in relation to a licence granted (or having effect as if granted) by the Oil and Gas Authority under section 18(1) of the Energy Act 2008 which is in force immediately before the commencement of Schedule 6. (3) The licence has effect with the addition of provision having the same legal effect as paragraph 6 of Schedule 1 to the 2010 Regulations (as inserted by Schedule 6 to this (4) If the licence confers power on the Oil and Gas Authority to revoke a licence in connection with a change in control of a licence holder which is a company, the licence (a) with the omission of such provision, and (b) with the replacement of such provision by provision having the same legal effect as paragraph 7 of Schedule 1 to the 2010 Regulations (as inserted (5) If the licence confers power on the Oil and Gas Authority to partially revoke a licence in connection with a change in control of a licence holder which is a company, the (a) with the omission of such provision, and (b) with the replacement of such provision by provision having the same legal effect as paragraph 8 of Schedule 1 to the 2010 Regulations (as inserted (6) A reference in any document to provisions of a licence which are to have effect with amendments as provided for by Schedule 6 is to be construed, unless the nature of the document or the context otherwise requires, as a reference to those provisions as (7) A provision inserted in a licence by virtue of Schedule 6 may be altered or deleted by deed executed by the Secretary of State and the licence holder or, as respects Scotland, by an instrument subscribed or authenticated by the Secretary of State and the licence holder in accordance with the Requirements of Writing (Scotland) Act 1995. I110 S. 103 not in force at Royal Assent, see s. 334(1) I111 S. 103 in force at 11.1.2024 by S.I. 2024/32, reg. 2(a)(i) 104 Content of storage permits under carbon dioxide storage licences (1) In the Storage of Carbon Dioxide (Licensing etc.) Regulations 2010 (S.I. 2010/2221) (“the 2010 Regulations”), regulation 8 (content of storage permits) is amended as

Part 2 – Carbon dioxide capture, storage etc and hydrogen production, transport and storage Chapter 4 – Carbon dioxide storage licences Document 2024-10-14 This version of this Act contains provisions that are prospective. Changes to There are currently no known outstanding effects for the Energy Act 2023. (See end of Document for details) (a) after paragraph (1) insert— “(1A) If the operator is a company, a storage permit must also include the provisions contained in paragraph 6(2) to (11) of Schedule 1, read as (a) any reference to a company were to the operator, (b) the reference in paragraph 6(8)(b) to the licence were to the (c) paragraph 6(10)(c) were omitted.”; (b) in paragraph (2), for “In this” substitute “In paragraph (1) of this”. (2) Subsection (4) applies in relation to a storage permit granted under an existing licence. (3) “Existing licence” means a licence granted (or having effect as if granted) by the Oil and Gas Authority under section 18(1) of the Energy Act 2008 which is in force immediately before the commencement of subsection (1).
(4) The storage permit has effect with the addition of provision having the same legal effect as provision required to be included in the permit by reason of paragraph (1A) of regulation 8 of the 2010 Regulations (as inserted by subsection (1)(a)). I112 S. 104 not in force at Royal Assent, see s. 334(1) I113 S. 104 in force at 11.1.2024 by S.I. 2024/32, reg. 2(a)(ii) 105 Offences relating to carbon dioxide storage licences In section 23 of the Energy Act 2008 (offences relating to carbon dioxide storage licences), after subsection (1) insert— “(1A) But a licence holder does not commit an offence under subsection (1)(a) or (b) (a) the licence holder is a company, or, where there are joint licence holders, any of them is a company, and (b) the thing mentioned in subsection (1)(a) or (b) is a change in the control I114 S. 105 not in force at Royal Assent, see s. 334(1) I115 S. 105 in force at 11.1.2024 by S.I. 2024/32, reg. 2(a)(iii) 106 Power of OGA to require information about change in control of licence holder After section 29 of the Energy Act 2008 insert—

Part 2 – Carbon dioxide capture, storage etc and hydrogen production, transport and storage Chapter 5 – Carbon storage information and samples Document 2024-10-14 This version of this Act contains provisions that are prospective. Changes to There are currently no known outstanding effects for the Energy Act 2023. (See end of Document for details) “Information about change in control of licence holder 29A OGA’s power to require information about change in control of (1) This section applies in relation to a licence granted (or having effect as if granted) by the OGA which includes provisions prohibiting a change in control of a licence holder which is a company without the OGA’s consent. (2) The OGA may by notice in writing require a person within subsection (3) to provide the OGA with any information that it requires for the purpose of exercising its functions in relation to a change or potential change in control of a licence holder which is a company. (3) The persons within this subsection are— (b) the person who (if consent were granted) would take control of the (c) if the company is a joint licence holder with another person or other persons, that other person or those other persons; (d) any person not within any of paragraphs (a) to (c) who appears to the OGA to have information that it requires as mentioned in (4) The power conferred by this section does not include power to require the provision of any information that would be protected from disclosure or production in legal proceedings on grounds of legal professional privilege or, in Scotland, confidentiality of communications. (5) Nothing in this section limits any power of the OGA to require information (a) regulations under this Chapter, (b) the terms of a licence, or (c) the terms of a permit granted under a licence.” I116 S. 106 not in force at Royal Assent, see s. 334(1) I117 S. 106 in force at 11.1.2024 by S.I. 2024/32, reg. 2(a)(iv) 107 Chapter 5: key definitions (1) This section applies for the purposes of this Chapter. Part 2 – Carbon dioxide capture, storage etc and hydrogen production, transport and storage Chapter 5 – Carbon storage information and samples Document 2024-10-14 This version of this Act contains provisions that are prospective. Changes to There are currently no known outstanding effects for the Energy Act 2023. (See end of Document for details) (2) “Carbon storage licence” means a licence granted, or having effect as if granted, by the OGA under section 18(1) of the Energy Act 2008 (and references to a “licensee” are to a person who holds such a licence). (3) “Exploration operator”, in relation to a carbon storage licence, means a person who is responsible for organising or supervising— (a) the carrying on of exploration, within the area within which activities are authorised under the licence, with a view to, or in connection with, the carrying on of activities within section 17(2)(a) or (b) of the Energy Act 2008, or (b) the establishment or maintenance in a controlled place (as defined in section 17 of the Energy Act 2008) of an installation for the purposes of such (4) “Carbon storage information” means information acquired or created by or on behalf of a licensee in the course of carrying out activities under the licensee’s carbon storage (5) “Carbon storage samples” means samples of substances acquired by or on behalf of a licensee in the course of carrying out activities under the licensee’s carbon storage (6) “Sanctionable requirement” means a requirement imposed on a person by or under a provision of this Chapter which, by virtue of the provision, is sanctionable in I118 S. 107 in force at 26.12.2023, see s. 334(3)(b) Requirements relating to information and samples 108 Retention of information and samples (1) Regulations made by the Secretary of State may require— (a) specified licensees to retain specified carbon storage information; (b) specified licensees to retain specified carbon storage samples. (2) “Specified” means specified, or of a description specified, in regulations under this (3) Regulations under this section may include provision about— (a) the form or manner in which information or samples are to be retained; (b) the period for which information or samples are to be retained; (c) the event that triggers the commencement of that period. (4) Regulations under this section may provide for requirements imposed by the regulations to continue following a termination of rights under the licensee’s carbon storage licence (whether by transfer, surrender, expiry or revocation and whether in relation to all or only part of the licence).
(5) Regulations under this section may not impose requirements which have effect in relation to particular carbon storage information or particular carbon storage samples

Part 2 – Carbon dioxide capture, storage etc and hydrogen production, transport and storage Chapter 5 – Carbon storage information and samples Document 2024-10-14 This version of this Act contains provisions that are prospective. Changes to There are currently no known outstanding effects for the Energy Act 2023. (See end of Document for details) at any time when an information and samples plan dealing with the information or (6) Requirements imposed by regulations under this section are sanctionable in (7) Before making regulations under this section, the Secretary of State must consult each licensing authority that may under section 18(1) of the Energy Act 2008 grant a licence in respect of the carrying on, in a place to which the regulations would apply, of activities within section 17(2) of that Act. (8) Regulations under this section are subject to the negative procedure. I119 S. 108 in force at 26.12.2023, see s. 334(3)(b) 109 Preparation and agreement of information and samples plans (1) The responsible person must prepare an information and samples plan in connection with any of the following (each “a licence event”)— (a) where a licensee is a company, a change in control of the company within the meaning of paragraph 6 of Schedule 1 to the Carbon Dioxide (Licensing etc.) Regulations 2010 (S.I. 2010/2221) (inserted by Schedule 6 to this Act); (b) a change in the identity of— (i) the exploration operator under a carbon storage licence, or (ii) where a storage permit has been granted under a carbon storage licence, the operator in relation to the storage permit (within the meaning of regulation 1(3) of the Carbon Dioxide (Licensing etc.) (c) a transfer of rights under a carbon storage licence, whether in relation to all or part of the area in respect of which the licence was granted; (d) a surrender of rights under a carbon storage licence in relation to all of the area in respect of which the licence was granted, or in relation to so much of that area in respect of which the licence continues to have effect; (e) the expiry of a carbon storage licence; (f) the termination of a carbon storage licence; (g) the revocation of a storage permit. (2) “Responsible person”, in relation to a licence event, means the person who is or was, or the persons who are or were, the licensee in respect of the relevant licence immediately (3) “Relevant licence”, in relation to a licence event, means the carbon storage licence in respect of which the licence event occurs. (4) “Information and samples plan”, in relation to a licence event, means a plan dealing with what is to happen, following the event, to— (a) carbon storage information held by the responsible person before the event, (b) carbon storage samples held by that person before the event. Part 2 – Carbon dioxide capture, storage etc and hydrogen production, transport and storage Chapter 5 – Carbon storage information and samples Document 2024-10-14 This version of this Act contains provisions that are prospective. Changes to There are currently no known outstanding effects for the Energy Act 2023. (See end of Document for details) (5) The responsible person must agree the information and samples plan with the OGA— (a) in the case of a licence event mentioned in subsection (1)(a), (b), (c), (d) or (e), before the licence event takes place, or (b) in the case of a licence event mentioned in subsection (1)(f) or (g), within a reasonable period after the termination of the carbon storage licence or revocation of the storage permit. (6) An information and samples plan has effect once it is agreed with the OGA. (7) If an information and samples plan is not agreed with the OGA as mentioned in subsection (5)(a) or (b), the OGA— (a) may itself prepare an information and samples plan in connection with the (b) may require the responsible person to provide it with such information as the OGA may require to enable it to do so. (8) The OGA must inform the responsible person of the terms of any information and samples plan it prepares in connection with a licence event. (a) prepares an information and samples plan in connection with a licence event, (b) informs the responsible person of the terms of the plan, the plan has effect as if it had been prepared by the responsible person and agreed (10) Where an information and samples plan has effect in connection with a licence event, the responsible person must comply with the plan. (11) The requirements imposed by subsection (5) and (10), or under subsection (7)(b), are sanctionable in accordance with this Chapter. I120 S. 109 in force at 26.12.2023, see s. 334(3)(b) 110 Information and samples supplementary (1) Where an information and samples plan has effect in relation to a licence event, the OGA and the responsible person may agree changes to the plan. (2) Once changes are agreed, the plan has effect subject to those changes. (a) two or more persons are the responsible person in relation to a licence event, (b) those persons include a company that has, since the licence event, been the reference to the responsible person in subsection (1) does not include that company. (4) An information and samples plan, in relation to a licence event, may provide as

Part 2 – Carbon dioxide capture, storage etc and hydrogen production, transport and storage Chapter 5 – Carbon storage information and samples Document 2024-10-14 This version of this Act contains provisions that are prospective. Changes to There are currently no known outstanding effects for the Energy Act 2023.
(See end of Document for details) (a) the retention, by the responsible person, of any carbon storage information or carbon storage samples held by or on behalf of that person before the licence (b) the transfer of any such information or samples to a new licensee, or (c) appropriate storage of such information or samples. (5) Where an information and samples plan makes provision under subsection (4) for a person, other than the responsible person, to hold information or samples in (a) the plan may, with the consent of that other person, impose requirements on that person in connection with the information and samples, and (b) any such requirements are sanctionable in accordance with this Chapter. (6) An information and samples plan prepared by the OGA under section 109 may not include provision under subsection (4)(b) for the transfer of information or samples to another person without the consent of the responsible person. (7) An information and samples plan may provide for the storage of information or samples as mentioned in subsection (4)(c) to be the responsibility of the OGA. (8) Where a transfer of rights under a carbon storage licence relates to only part of the area in relation to which the licence was granted, the information and samples plan prepared in connection with the transfer is to relate to all carbon storage information and carbon storage samples held by the responsible person before the licence event, and not only information and samples in respect of that part of the area. (9) In this section, “licence event” and “responsible person” have the same meaning as I121 S. 110 in force at 26.12.2023, see s. 334(3)(b) 111 Information and samples coordinators (1) A person within subsection (2) (a “relevant person”) must— (a) appoint an individual to act as an information and samples coordinator, and (b) notify the OGA of that individual’s name and contact details. (2) The following persons are within this subsection— (b) an exploration operator under a carbon storage licence. (3) The information and samples coordinator is to be responsible for monitoring the relevant person’s compliance with its obligations under this Chapter. (4) A relevant person must comply with subsection (1) within a reasonable period after— (a) the date on which this section comes into force, if the person is a relevant (b) becoming a relevant person, in any other case. Part 2 – Carbon dioxide capture, storage etc and hydrogen production, transport and storage Chapter 5 – Carbon storage information and samples Document 2024-10-14 This version of this Act contains provisions that are prospective. Changes to There are currently no known outstanding effects for the Energy Act 2023. (See end of Document for details) (5) The relevant person must notify the OGA of any change in the identity or contact details of the information and samples coordinator within a reasonable period of the (6) The requirements imposed by this section are sanctionable in accordance with this I122 S. 111 in force at 26.12.2023, see s. 334(3)(b) 112 Power of OGA to require information and samples (1) The OGA may by notice in writing, for the purpose of carrying out any of its functions under Chapter 3 of Part 1 of the Energy Act 2008 (storage of carbon dioxide), require— (a) a licensee to provide it with any carbon storage information, or a portion of any carbon storage sample, held by or on behalf of the licensee; (b) a person who holds information or samples in accordance with an information and samples plan to provide it with any such information or a portion of any (a) the form or manner in which the information or the portion of a sample must (b) the time at which, or period within which, the information or the portion of (3) Information requested under subsection (1) may not include items subject to legal (4) Requirements imposed by a notice under this section are sanctionable in accordance (5) Where a person provides information or a portion of a sample to the OGA in accordance with a notice under this section, any requirements imposed on the person in respect of that information or sample by regulations under section 108 are unaffected. I123 S. 112 in force at 26.12.2023, see s. 334(3)(b) 113 Prohibition on disclosure of information or samples by OGA (1) Protected material must not be disclosed— except in accordance with section 114 or Schedule 7. (2) In this section and in Schedule 7— “protected material” means information or samples which have been obtained by the OGA under section 112 or 124;

Part 2 – Carbon dioxide capture, storage etc and hydrogen production, transport and storage Chapter 5 – Carbon storage information and samples Document 2024-10-14 This version of this Act contains provisions that are prospective. Changes to There are currently no known outstanding effects for the Energy Act 2023. (See end of Document for details) “subsequent holder”, in relation to protected material, means a person holding protected material who has received it directly or indirectly from the OGA by virtue of a disclosure, or disclosures, in accordance with Schedule 7. (3) References to disclosing protected material include references to making the protected material available to other persons (where the protected material includes samples). I124 S. 113 in force at 26.12.2023, see s. 334(3)(b) 114 Power of Secretary of State to require information and samples (1) The Secretary of State may require the OGA to provide the Secretary of State with such information or samples held by or on behalf of the OGA as the Secretary of State may require for the purpose of— (a) carrying out any function conferred by or under any Act, (b) monitoring the OGA's performance of its functions, or (c) any Parliamentary proceedings. (2) The Secretary of State may use information or samples acquired under subsection (1) (“acquired material”) only for the purpose for which it is provided. (3) Acquired material must not be disclosed— (a) by the Secretary of State, or except in accordance with this section.
(4) For the purposes of subsection (3)(b), “subsequent holder”, in relation to acquired material, means a person who receives acquired material directly or indirectly from the Secretary of State by virtue of a disclosure, or disclosures, in accordance with this (5) Subsection (3) does not prohibit the Secretary of State from disclosing acquired material so far as necessary for the purpose for which it was provided. (6) Subsection (3) does not prohibit a disclosure of acquired material if— (a) the disclosure is required by virtue of an obligation imposed by or under any (b) the OGA consents to the disclosure and, where the acquired material in question was provided to the OGA by or on behalf of another person, confirms that that person also consents to the disclosure. (7) References in this section to disclosing acquired material include references to making the acquired material available to other persons (where the acquired material includes I125 S. 114 in force at 26.12.2023, see s. 334(3)(b)

Part 2 – Carbon dioxide capture, storage etc and hydrogen production, transport and storage Chapter 5 – Carbon storage information and samples Document 2024-10-14 This version of this Act contains provisions that are prospective. Changes to There are currently no known outstanding effects for the Energy Act 2023. (See end of Document for details) Enforcement of sanctionable requirements 115 Power of OGA to give sanction notices (1) If the OGA considers that a person has failed to comply with a sanctionable requirement imposed on the person, it may give the person a sanction notice in respect (2) If the OGA considers that there has a been a failure to comply with a sanctionable requirement imposed jointly on two or more persons, it may give a sanction notice in (a) to one only of those persons (subject to section 118(2)), (b) jointly to two or more of them, or but it may not give separate sanction notices to each of them in respect of the failure. (3) In this Chapter “sanction notice” means— (a) an enforcement notice (see section 116), (b) a financial penalty notice (see section 117), (c) a revocation notice (see section 118), or (d) an operator removal notice (see section 119). (4) Sanction notices, other than enforcement notices, may be given in respect of a failure to comply with a sanctionable requirement even if, at the time the notice is given, the failure to comply has already been remedied. (5) Where the OGA gives a sanction notice to a person in respect of a particular failure to comply with a sanctionable requirement— (a) it may, at the same time, give another type of sanction notice to the person in respect of that failure to comply; (b) it may give subsequent sanction notices in respect of that failure only in accordance with section 122 (subsequent sanction notices). (6) The OGA’s power to give sanction notices under this section is subject to section 120 (duty of OGA to give sanction warning notices). (7) Where the OGA gives a sanction notice to a licensee in respect of a failure to comply with a sanctionable requirement— (a) the matter is to be dealt with in accordance with this Chapter, and (b) any requirement under the licensee’s carbon storage licence to deal with the matter in a certain way (including by arbitration) does not apply in respect of I126 S. 115 in force at 26.12.2023, see s. 334(3)(b) (1) An enforcement notice is a notice which— (a) specifies the sanctionable requirement in question,

Part 2 – Carbon dioxide capture, storage etc and hydrogen production, transport and storage Chapter 5 – Carbon storage information and samples Document 2024-10-14 This version of this Act contains provisions that are prospective. Changes to There are currently no known outstanding effects for the Energy Act 2023. (See end of Document for details) (b) gives details of the failure to comply with the requirement, and (c) informs the person or persons to whom the notice is given that the person or (i) the sanctionable requirement, and (ii) any directions included in the notice as mentioned in subsection (2), before the end of the period specified in the notice. (2) The notice may include directions as to the measures to be taken for the purposes of compliance with the sanctionable requirement. (3) Requirements imposed by directions included in an enforcement notice as mentioned in subsection (2) are sanctionable in accordance with this Chapter. I127 S. 116 in force at 26.12.2023, see s. 334(3)(b) (1) A financial penalty notice is a notice which— (a) specifies the sanctionable requirement in question, (b) gives details of the failure to comply with the requirement, and (c) informs the person or persons to whom the notice is given that the person or (i) comply with the sanctionable requirement before the end of a period specified in the notice, where it is appropriate to require such compliance and the failure to comply with the requirement has not already been remedied at the time the notice is given, and (ii) pay the OGA a financial penalty of the amount specified in the notice before the end of a period specified in the notice. (2) The period specified under subsection (1)(c)(ii) must not end earlier than the end of the period of 28 days beginning with the day on which the financial penalty notice (3) The financial penalty payable under a financial penalty notice in respect of a failure to comply with a sanctionable requirement (whether payable by one person, or jointly by two or more persons) must not exceed £1 million. (4) If a financial penalty notice is given jointly to two or more persons, those persons are jointly and severally liable to pay the financial penalty under it.
(5) A financial penalty payable under a financial penalty notice is to be recoverable as a civil debt if it is not paid before the end of the period specified (a) issue guidance as to the matters to which it will have regard when determining the amount of the financial penalty to be imposed by a financial penalty notice, (b) have regard to the guidance when determining the amount of the penalty in

Part 2 – Carbon dioxide capture, storage etc and hydrogen production, transport and storage Chapter 5 – Carbon storage information and samples Document 2024-10-14 This version of this Act contains provisions that are prospective. Changes to There are currently no known outstanding effects for the Energy Act 2023. (See end of Document for details) (7) The OGA may from time to time review guidance issued under subsection (6)(a) and, if it considers appropriate, revise it. (8) Before issuing or revising guidance under this section, the OGA must consult such persons as it considers appropriate. (a) lay any guidance issued under this section, and any revision of it, before each (b) publish any guidance issued under this section, and any revision of it, in such manner as the OGA considers appropriate. (10) The Secretary of State may by regulations subject to the affirmative procedure amend subsection (3) to change the amount specified to an amount not exceeding £5 (11) Money received by the OGA under a financial penalty notice must be paid into the I128 S. 117 in force at 26.12.2023, see s. 334(3)(b) (1) A revocation notice may be given only in respect of a failure to comply with a sanctionable requirement imposed on a licensee in that capacity. (2) Where two or more persons are the licensee in respect of a carbon storage licence, the revocation notice must be given jointly to all of those persons. (3) A revocation notice is a notice which— (a) specifies the sanctionable requirement in question, (b) gives details of the failure to comply with the requirement, (c) informs the person or persons to whom the notice is given that— (i) where no storage permit has been granted under the carbon storage licence, the licence is to be terminated, or (ii) where a storage permit has been granted under the carbon storage licence, the permit is to be revoked, on the date specified in the notice (“the revocation date”). (4) The revocation date must not be earlier than the end of the period of 28 days beginning with the day on which the revocation notice is given. (5) A revocation notice may not be given in circumstances where the carbon storage licence to be terminated, or the storage permit to be revoked, in accordance with the notice is one which, on the date the notice is given, the OGA would not have the power (6) Where a carbon storage licence is terminated in accordance with a revocation notice— (a) the rights granted to the licensee by the licence cease on the revocation date;

Part 2 – Carbon dioxide capture, storage etc and hydrogen production, transport and storage Chapter 5 – Carbon storage information and samples Document 2024-10-14 This version of this Act contains provisions that are prospective. Changes to There are currently no known outstanding effects for the Energy Act 2023. (See end of Document for details) (b) the revocation does not affect any obligation or liability imposed on or incurred by the licensee under the terms and conditions of the licence; (c) the terms and conditions of the licence apply as if the licence had been terminated in accordance with those terms and conditions, subject (7) Where a storage permit is revoked in accordance with a revocation notice— (a) the authorisation granted by the storage permit ceases on the revocation date; (b) the revocation does not affect any obligation or liability imposed or incurred under the terms and conditions of the storage permit; (c) the terms and conditions of the carbon storage licence apply as if the storage permit had been revoked in accordance with those terms and conditions, I129 S. 118 in force at 26.12.2023, see s. 334(3)(b) (1) An operator removal notice may be given only in respect of a failure to comply with a sanctionable requirement imposed on an exploration operator under a carbon storage (2) An operator removal notice is a notice which— (a) specifies the sanctionable requirement, (b) gives details of the failure to comply with the requirement, and (c) informs the exploration operator to whom it is given that, with effect from a date specified in the notice (“the removal date”), the licensee under whose carbon storage licence the exploration operator operates (“the relevant licensee”) is to be required to remove the exploration operator (a) give a copy of the operator removal notice to the relevant licensee, and (b) require the relevant licensee to remove the exploration operator with effect (4) Where a licensee is required to remove an exploration operator from a specified date, the licensee must ensure that, with effect from that date, the exploration operator does not exercise any function of organising or supervising any of the activities referred to in paragraphs (a) and (b) of section 107(3). (5) The removal date must not be earlier than the end of the period of 28 days beginning with the day on which the operator removal notice is given. (6) An operator removal notice may not be given in circumstances where the carbon storage licence under which the exploration operator operates is one which, on the date the notice is given, the OGA would not have the power to grant. (7) A requirement imposed on a licensee under subsection (3) (b) is sanctionable in

Part 2 – Carbon dioxide capture, storage etc and hydrogen production, transport and storage Chapter 5 – Carbon storage information and samples Document 2024-10-14 This version of this Act contains provisions that are prospective. Changes to There are currently no known outstanding effects for the Energy Act 2023.
(See end of Document for details) I130 S. 119 in force at 26.12.2023, see s. 334(3)(b) 120 Duty of OGA to give sanction warning notices (1) This section applies where the OGA proposes to give a sanction notice in respect of a failure to comply with a sanctionable requirement. (2) The OGA must give a sanction warning notice in respect of the sanctionable (a) the person or persons to whom it proposes to give a sanction notice, and (b) where it proposes to give an operator removal notice, the relevant licensee (3) A sanction warning notice, in respect of a sanctionable requirement, is a notice (a) specifies the sanctionable requirement, (b) informs the person or persons to whom it is given that the OGA proposes to give a sanction notice in respect of a failure to comply with the requirement, (c) gives details of the failure to comply with the sanctionable requirement, and (d) informs the person or persons to whom it is given that the person or persons may, within the period specified in the notice (“the representations period”), make representations to the OGA in relation to the matters dealt with in the (4) The representations period must be such period as the OGA considers appropriate in (5) Subsections (6) and (7) apply where the OGA gives a sanction warning notice to a person or persons in respect of a sanctionable requirement. (6) The OGA must not give a sanction notice to the person or persons in respect of a failure to comply with the requirement until after the end of the representations period specified in the sanction warning notice. (7) Having regard to representations made during the representations period specified in the sanction warning notice, the OGA may decide— (a) to give the person or persons a sanction notice in respect of the failure to comply with the requirement detailed in the sanction warning notice (b) to give the person or persons a sanction notice in respect of a failure to comply with the requirement which differs from the failure detailed in the sanction warning notice under subsection (3)(c), or (c) not to give the person or persons a sanction notice in respect of a failure to I131 S. 120 in force at 26.12.2023, see s. 334(3)(b)

Part 2 – Carbon dioxide capture, storage etc and hydrogen production, transport and storage Chapter 5 – Carbon storage information and samples Document 2024-10-14 This version of this Act contains provisions that are prospective. Changes to There are currently no known outstanding effects for the Energy Act 2023. (See end of Document for details) 121 Publication of details of sanctions (1) The OGA may publish details of any sanction notice given in accordance with this (2) But the OGA may not publish anything that, in its 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 notice is— (b) withdrawn under section 123, the OGA must publish details of the cancellation or withdrawal. I132 S. 121 in force at 26.12.2023, see s. 334(3)(b) 122 Subsequent sanction notices (1) This section applies where the OGA gives a sanction notice in respect of a particular failure to comply with a sanctionable 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) If the sanction notice given is a financial penalty notice which does not require compliance with the sanctionable requirement, no further sanction notices may be given in respect of the failure to comply. (4) Subsection (5) applies if the sanction notice given is— (b) a financial penalty notice which requires compliance with the sanctionable (5) No further sanction notices may be given in respect of the failure to comply before the end of the period specified under section 116(1)(c) or 117(1)(c)(i), as the case may be (period for compliance with sanctionable requirement). I133 S. 122 in force at 26.12.2023, see s. 334(3)(b) 123 Withdrawal of sanction notices (1) The OGA may, at any time after giving a sanction notice, withdraw the sanction 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—

Part 2 – Carbon dioxide capture, storage etc and hydrogen production, transport and storage Chapter 5 – Carbon storage information and samples Document 2024-10-14 This version of this Act contains provisions that are prospective. Changes to There are currently no known outstanding effects for the Energy Act 2023. (See end of Document for details) (i) the person or persons to whom the notice was given; (ii) in the case of an operator removal notice, the licensee under whose carbon storage licence the exploration operator operates. I134 S. 123 in force at 26.12.2023, see s. 334(3)(b) 124 information powers (1) This section applies for the purposes of an investigation which— (a) concerns whether a person has failed to comply with a sanctionable (b) is carried out by the OGA for the purpose of enabling it to decide whether to give the person a sanction notice, or on what terms a sanction notice should (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) “Specified” means specified, or of a description specified, in a notice under this (4) A requirement under subsection (2) applies only to the extent— (a) that the documents requested are documents in the person’s possession or (b) that the information requested is information in the person’s possession or (5) A requirement imposed by a notice under subsection (2) is sanctionable in accordance (6) The documents or information requested— (a) may include documents or information held in any form (including in (b) may include documents or information that may be regarded as commercially (c) may not include items that are subject to legal privilege. (a) to 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. I135 S. 124 in force at 26.12.2023, see s. 334(3)(b)

Part 2 – Carbon dioxide capture, storage etc and hydrogen production, transport and storage Chapter 5 – Carbon storage information and samples Document 2024-10-14 This version of this Act contains provisions that are prospective. Changes to There are currently no known outstanding effects for the Energy Act 2023. (See end of Document for details) (a) Part 1 contains provision about appeals against decisions by the OGA relating to the preparation of an information and samples plan and appeals against the giving of a notice under section 112, and (b) Part 2 contains provision about appeals against the imposition of sanction notices and appeals against the giving of a notice under section 124. I136 S. 125 in force at 26.12.2023, see s. 334(3)(b) 126 Procedure for enforcement decisions (a) must determine the procedure that it proposes to follow in relation to (b) must issue a statement of its proposals. (2) The procedure mentioned in subsection (1)(a) must be designed to secure, among other things, that an enforcement decision is taken— (a) by 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 statement mentioned in subsection (1) (b) must be published in whatever way appears to the OGA to be best calculated to bring the statement to the attention of (5) When the OGA takes an enforcement decision, the OGA must follow its stated (6) If the OGA changes its procedure in a material way, it must publish a revised statement. (7) A 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 (8) But subsection (7) does not prevent the Tribunal from taking into account any such failure in considering an appeal under paragraph 4 or 5 of Schedule 8 in relation to (9) In this section, “enforcement decision” means— (a) a decision to give a sanction notice in respect of a failure to comply with a (b) a decision as to the details of the sanction to be imposed by the notice. Part 2 – Carbon dioxide capture, storage etc and hydrogen production, transport and storage Document 2024-10-14 This version of this Act contains provisions that are prospective. Changes to There are currently no known outstanding effects for the Energy Act 2023. (See end of Document for details) I137 S. 126 in force at 26.12.2023, see s. 334(3)(b) 127 Interpretation of Chapter 5 “information and samples plan” has the meaning given in section 109; “items subject to legal privilege”— (a) in England and Wales, has the same meaning as in the Police and Criminal Evidence Act 1984 (see section 10 of that Act); (b) in Scotland, has the meaning given by section 412 of the Proceeds of (c) in Northern Ireland, has the same meaning as in the Police and Criminal Evidence (Northern Ireland) Order 1989 (S.I. 1989/1341 (NI 12)); “OGA” means the Oil and Gas Authority; “protected material” has the meaning given in section 113; “sanction notice” has the meaning given in section 115; “storage permit” has the same meaning as in the Storage of Carbon Dioxide (Licensing etc) Regulations 2010 (S.I. 2010/2221) (see regulation 1(3) of those “subsequent holder” has the meaning given in section 113; “Tribunal” means the First-tier Tribunal. I138 S. 127 in force at 26.12.2023, see s. 334(3)(b) (1) The Secretary of State may by regulations make provision about the acquisition of rights to use relevant infrastructure (whether existing or proposed). (2) In exercising the power under subsection (1) the Secretary of State must have regard to the need to ensure that the process for acquiring such rights operates in a transparent and non-discriminatory manner. (3) Without prejudice to the generality of subsection (1), regulations under that subsection may amend, revoke or replace or make provision similar or corresponding to— (a) the Storage of Carbon Dioxide (Access to Infrastructure) Regulations 2011 (b) the Storage of Carbon Dioxide (Access to Infrastructure) Regulations (Northern Ireland) 2015 (S.R. (N.I.) 2015 No. 388). Part 2 – Carbon dioxide capture, storage etc and hydrogen production, transport and storage Document 2024-10-14 This version of this Act contains provisions that are prospective. Changes to There are currently no known outstanding effects for the Energy Act 2023. (See end of Document for details) (4) Regulations under subsection (1)— (a) may confer functions (including discretions) on any person; (b) may confer jurisdiction on a court or tribunal; (c) may create criminal offences or impose civil penalties; (d) may make other provision about enforcement; (e) must provide for any offences created by the regulations to be triable— (ii) either summarily or on indictment. (5) Where regulations under subsection (1) impose a civil penalty, they must also provide for a right of appeal against the imposition of the penalty.
(6) Before making regulations under subsection (1) the Secretary of State must give to the appropriate consultees a notice— (a) stating that the Secretary of State proposes to make regulations under (b) specifying the period (of not less than 28 days from the date on which the notice is given) within which representations must be made with respect to and must consider any representations duly made and not withdrawn. (7) For the purposes of this section the “appropriate consultees” are— (b) the Scottish Ministers, if the regulations contain provision that would be within the legislative competence of the Scottish Parliament if it were contained in an Act of that Parliament; (c) the Welsh Ministers, if the regulations contain provision that would be within the legislative competence of Senedd Cymru if it were contained in an Act of the Senedd (ignoring any requirement for the consent of a Minister of the Crown imposed under Schedule 7B to the Government of Wales Act 2006); (d) the Department for the Economy in Northern Ireland, if the regulations contain (i) would be within the legislative competence of the Northern Ireland Assembly if it were contained in an Act of that Assembly, and (ii) would not, if it were contained in a Bill in the Northern Ireland Assembly, result in the Bill requiring the consent of the Secretary of State under section 8 of the Northern Ireland Act 1998; (e) the Oil and Gas Authority. (8) Regulations under subsection (1) are subject to the affirmative procedure. (9) In this section “relevant infrastructure” means— (a) a site for the geological storage of carbon dioxide that is situated in a regulated (b) a pipeline, situated in a regulated place, which is used or intended to be used to convey carbon dioxide to a site falling within paragraph (a), and any associated installations, apparatus or works. (10) For the purposes of this section a site or pipeline is situated in a “regulated place” if

Part 2 – Carbon dioxide capture, storage etc and hydrogen production, transport and storage Document 2024-10-14 This version of this Act contains provisions that are prospective. Changes to There are currently no known outstanding effects for the Energy Act 2023. (See end of Document for details) (i) the internal waters of the United Kingdom, (ii) the territorial sea adjacent to United Kingdom, or (iii) waters in a Gas Importation and Storage Zone (within the meaning given by section 1 of the Energy Act 2008). (11) In this section “geological storage” has the same meaning as in Part 1 (see section 55). I139 S. 128 in force at 26.12.2023, see s. 334(3)(b) (1) The Secretary of State may provide financial assistance to any person for the purpose of encouraging, supporting or facilitating— (a) transportation of carbon dioxide; (b) storage of carbon dioxide; (c) carbon dioxide capture facilities which operate (or are to operate) in association with facilities for any activity mentioned in paragraph (a) or (b); (d) low carbon hydrogen production; (e) transportation of hydrogen; (2) The financial assistance referred to in subsection (1) includes expenditure incurred by the Secretary of State for the purposes of, or in connection with— (a) the establishment of a revenue support counterparty, a hydrogen levy administrator or an allocation body; (b) making payments to a revenue support counterparty. (3) Financial assistance under this section— (a) may be provided in any form and in particular by way of grants, loans, guarantees or indemnities or by the provision of insurance; (b) may be provided subject to conditions (which may include conditions about repayment with or without interest or other return); (c) may be provided pursuant to a contract; (d) may be provided to an investment fund for onward investment or for administrative costs relating to onward investment; (e) may be provided by incurring expenditure for the benefit of the person (f) may be provided by the acquisition of shares or any other interest in, or securities of, a body corporate; (g) may be provided by the acquisition of any undertaking or of any assets. (4) The Secretary of State is not authorised by this section to give financial assistance in the way described in subsection (3)(f) without the consent of the body corporate

Part 3 – Licensing of hydrogen pipeline projects Document 2024-10-14 This version of this Act contains provisions that are prospective. Changes to There are currently no known outstanding effects for the Energy Act 2023.
(See end of Document for details) (5) The power to provide financial assistance under this section is in addition to (and does not limit or replace) any other power of a Minister of the Crown to provide financial “allocation body” has the same meaning as in Chapter 1 (see section 73(6)); “greenhouse gas” has the meaning given by section 92(1) of the Climate “hydrogen levy administrator” has the same meaning as in Chapter 1 “low carbon hydrogen production” means production of hydrogen by a method which in the opinion of the Secretary of State will contribute to a reduction in emissions of greenhouse gases; “revenue support counterparty” has the same meaning as in Chapter 1 “storage”, in relation to carbon dioxide, means any storage with a view to the permanent containment of carbon dioxide; “undertaking” means any trade or business or any other activity providing I140 S. 129 in force at Royal Assent, see s. 334(2)(b) 130 Key definitions for Part 3 “designated person” means a person in relation to whom a designation under section 131(1) has effect (and any reference to designation, in relation to a person, is to be construed accordingly); “designated project”, in relation to a person, means a hydrogen pipeline project in relation to which the person is designated; “gas transporter licence” means a licence under section 7 of the Gas Act “hydrogen” means any gas that consists wholly or mainly of hydrogen; “hydrogen pipeline project” means a project involving the construction, alteration or operation of a pipeline for the purpose of the conveyance of (2) References in this Part to the extension or restriction of a licence are to the giving of a direction in respect of the licence under (respectively) section 7(4) or (4A) of the

Part 3 – Licensing of hydrogen pipeline projects Document 2024-10-14 This version of this Act contains provisions that are prospective. Changes to There are currently no known outstanding effects for the Energy Act 2023. (See end of Document for details) I141 S. 130 in force at 26.12.2023, see s. 334(3)(c) Designation in relation to hydrogen pipeline projects (1) The Secretary of State may by notice given to a person designate the person in relation to a hydrogen pipeline project. (2) The Secretary of State may designate a person in relation to a hydrogen pipeline project only if the Secretary of State is of the opinion— (a) that it is likely to be appropriate for conditions described in section 137(1)(a) and (b) to be included in any gas transporter licence held by the person for the purposes of the project (whether or not the person already holds such a (b) that the project is likely to result in value for money. (3) A person may be designated only with the person’s consent. (4) A designation may not relate to more than one hydrogen pipeline project (but a person who is designated in relation to one project may be designated separately in relation I142 S. 131 in force at 26.12.2023, see s. 334(3)(c) (1) The Secretary of State must publish a statement setting out— (a) the procedure that the Secretary of State expects to follow in determining whether to exercise the power under section 131(1), and (b) how the Secretary of State expects to determine whether the conditions (2) A duty imposed by subsection (1) may be satisfied by things done before the passing of this Act (as well as by things done after that time). (3) A designation notice must include— (a) a description of the hydrogen pipeline project to which the designation relates, (b) the Secretary of State’s reasons for the designation, (c) details of any conditions to which the designation is subject, and (4) The Secretary of State must give the GEMA a copy of a designation notice. (5) The Secretary of State must publish a designation notice, but may exclude from publication any material the disclosure or publication of which the Secretary of State

Part 3 – Licensing of hydrogen pipeline projects Document 2024-10-14 This version of this Act contains provisions that are prospective. Changes to There are currently no known outstanding effects for the Energy Act 2023. (See end of Document for details) (a) would be likely to prejudice the commercial interests of any person, or (b) would be contrary to the interests of national security. (6) In this section, “designation notice” means a notice under section 131(1). I143 S. 132 in force at 26.12.2023, see s. 334(3)(c) (1) The Secretary of State may by notice given to a designated person revoke the person’s designation in relation to a hydrogen pipeline project if— (a) either of the conditions in section 131(2) ceases to be met in relation to the (b) the Secretary of State determines that a condition to which the designation is (c) the person consents to the designation being revoked. (2) Section 132(3)(a), (b) and (d), (4) and (5) applies (with necessary modifications) in relation to the revocation of a person’s designation as it applies in relation to the (3) Where the Secretary of State gives a notice to a person under subsection (1), the person’s designation in relation to the hydrogen pipeline project in question ceases to have effect at the end of the day on which the notice is given to the person. (4) The revocation of a person’s designation in relation to a hydrogen pipeline project does not affect anything done in relation to the licence by the Secretary of State under or by virtue of this Part while the person was designated in relation to the project. I144 S. 133 in force at 26.12.2023, see s. 334(3)(c) Grant etc of gas transporter licence 134 Grant, extension or restriction of gas transporter licence by Secretary of State (1) The Secretary of State may exercise the power under section 7(2) of the Gas Act 1986 (grant of gas transporter licences) so as to grant a gas transporter licence to a designated person, subject to subsection (2).
(2) The Secretary of State may only grant a gas transporter licence which authorises the conveyance of hydrogen through pipes for the purposes of the person’s designated (3) The Secretary of State may exercise the power under section 7(4) of the Gas Act 1986 (direction to extend licence) so as to extend a gas transporter licence where— (a) the licence is held by a designated person, and

Part 3 – Licensing of hydrogen pipeline projects Document 2024-10-14 This version of this Act contains provisions that are prospective. Changes to There are currently no known outstanding effects for the Energy Act 2023. (See end of Document for details) (b) the extension authorises the conveyance of hydrogen through pipes for the purposes of the person’s designated project. (4) The Secretary of State may exercise the power under section 7(4A) of the Gas Act 1986 (direction to restrict licence) so as to restrict a gas transporter licence where— (a) the licence is or was held by a designated person, and (b) the restriction is in connection with the revocation of the person’s designation in relation to a hydrogen pipeline project. (5) In its application for the purposes of subsections (1), (3) and (4), the Gas Act 1986 (a) in the following provisions, references to the GEMA were to the Secretary (iii) section 8(3), (4) and (5)(a); (b) in sections 7(6)(b) and 8(5)(b), references to the Secretary of State were to (c) in section 7B(4)(c), the reference to the GEMA included a reference to the Secretary of State, but only for the purpose of enabling the inclusion of conditions requiring the rendering of a payment on the grant of a licence; (d) section 7B(9) also required a copy of the licence to be sent to the GEMA. (6) When granting or extending a gas transporter licence by virtue of this section, the Secretary of State must have regard to— (a) costs, expenditure or liabilities of any description that the designated person may reasonably be expected to incur in carrying out its activities; (b) the need to secure that the designated person is able to finance its activities; (c) the need to secure that the designated person has appropriate incentives in relation to the carrying on of its activities; (d) such other matters as the Secretary of State considers appropriate. (7) References in subsection (6) to a designated person’s activities are to the person’s activities for the purposes of— (a) the designated project to which the grant or extension relates, and (b) in the case of an extension, any other designated project already authorised by the person’s gas transporter licence. (8) A gas transporter licence granted, extended or restricted by the Secretary of State by virtue of this section has effect for all purposes as if it had been granted, extended or I145 S. 134 in force at 26.12.2023, see s. 334(3)(c) 135 Applications for grant etc of gas transporter licence (1) The Secretary of State may by regulations make provision about the making, consideration and determination of relevant applications, including provision— (a) about the person to whom a relevant application must be made;

Part 3 – Licensing of hydrogen pipeline projects Document 2024-10-14 This version of this Act contains provisions that are prospective. Changes to There are currently no known outstanding effects for the Energy Act 2023. (See end of Document for details) (b) about the form and manner in which a relevant application must be made; (c) imposing timing requirements in relation to the making of a relevant (d) requiring a relevant application to be accompanied by such information and documents as may be specified in the regulations; (e) requiring a relevant application to be accompanied by such fee (if any) as may (i) specified in the regulations, or (ii) determined, by the person to whom the application is made, in accordance with the regulations; (f) about the matters to be taken into account in determining a relevant (g) requiring a determination to be accompanied by reasons; (h) requiring determinations to be published; (i) conferring functions on the Secretary of State or the GEMA (including functions involving the exercise of a discretion); (j) for anything falling to be determined under the regulations to be determined— (i) by the Secretary of State, the GEMA or another person specified in (ii) in accordance with such procedure and by reference to such matters and to the opinion of such persons as may be so specified. (2) “Relevant application” means an application within any of the following paragraphs (whether made to the Secretary of State or the GEMA)— (a) an application by a designated person for the grant of a gas transporter licence that authorises the conveyance of hydrogen through pipes for the purposes of the person’s designated project; (b) an application by a designated person for the extension of a gas transporter licence held by the person so that it authorises the conveyance of hydrogen through pipes for the purposes of the person’s designated project; (c) an application by a person who is or has been designated for the restriction of a gas transporter licence held by the person, in connection with the person’s designation in relation to a hydrogen pipeline project ceasing to have effect. (3) Provision made by virtue of subsection (1)(j)(ii) may in particular be made by reference to a document as amended from time to time. (4) Regulations under this section— (a) may provide for cases in which an application is not required; (b) may provide for a relevant application that has been rejected by one person to be dealt with afresh by another person. (5) Before making regulations under this section, the Secretary of State must consult the (6) Section 7B(1) to (2A) of the Gas Act 1986 does not apply to an application for the grant, extension or restriction of a gas transporter licence so far as the application is one to which regulations under this section apply.
(7) Any sums received by the Secretary of State or the GEMA by virtue of this section are to be paid into the Consolidated Fund. Part 3 – Licensing of hydrogen pipeline projects Document 2024-10-14 This version of this Act contains provisions that are prospective. Changes to There are currently no known outstanding effects for the Energy Act 2023. (See end of Document for details) (8) Regulations under this section are subject to the negative procedure. (9) For the purposes of section 5A(1) to (10) of the Utilities Act 2000 (duty of the GEMA to carry out impact assessment), a function exercisable by the GEMA by virtue of regulations under this section is to be treated as if it were a function exercisable by it under or by virtue of Part 1 of the Gas Act 1986. I146 S. 135 in force at 26.12.2023, see s. 334(3)(c) Modification of gas transporter licence 136 Modification of gas transporter licence by Secretary of State (1) The Secretary of State may modify— (a) the conditions of a designated person’s gas transporter licence; (b) the terms of a designated person’s gas transporter licence; (c) the standard conditions incorporated in gas transporter licences by virtue of section 8 of the Gas Act 1986; (d) a document maintained in accordance with the conditions of licences of a relevant type or an agreement that gives effect to a document so maintained. (2) The Secretary of State may exercise the power under subsection (1) only for the (a) facilitating or supporting the financing of the design, construction, commissioning or operation of a hydrogen pipeline project (or of hydrogen pipeline projects generally), or (b) promoting value for money in connection with a hydrogen pipeline project (or in connection with hydrogen pipeline projects generally). (3) When making modifications under subsection (1)(a) or (b), the Secretary of State must (a) the duties in sections 1 and 4(1)(b) of the Climate Change Act 2008 (carbon (b) the interests of existing and future consumers of gas conveyed through pipes, including their interests in relation to the cost and security of supply of gas; (c) costs, expenditure or liabilities of any description that the designated person may reasonably be expected to incur in carrying out its activities; (d) the need to secure that the designated person is able to finance its activities; (e) the need to secure that the designated person has appropriate incentives in relation to the carrying on of its activities; (f) such other matters as the Secretary of State considers appropriate. In paragraph (b), “gas” has the same meaning as in Part 1 of the Gas Act 1986 (see (4) The Secretary of State may modify the conditions or terms of a gas transporter licence held by a person who is or was a designated person in connection with the revocation of the person’s designation in relation to a hydrogen pipeline project. Part 3 – Licensing of hydrogen pipeline projects Document 2024-10-14 This version of this Act contains provisions that are prospective. Changes to There are currently no known outstanding effects for the Energy Act 2023. (See end of Document for details) (5) For the purposes of subsection (1), each of the following is a relevant type of licence— (a) a gas transporter licence; (b) a licence under section 7A(1) of the Gas Act 1986 (gas supply licence); (c) a licence under section 7AA of that Act (gas system planner licence); (d) a licence under section 7AC of that Act (code manager licence). (6) References in this section to a designated person’s activities are to the person’s activities for the purposes of— (a) the designated project to which the modification relates, and (b) any other designated project authorised by the person’s gas transporter licence. I147 S. 136 in force at 26.12.2023, see s. 334(3)(c) 137 Scope of modification powers under section 136 (1) Modifications made under section 136(1)(a) may include, for example, provision— (a) about the revenue that the designated person may receive in respect of its activities (its “allowed revenue”); (b) about how the designated person’s allowed revenue is to be calculated; (c) about the amounts that the designated person is entitled to receive, or is required to pay, under any hydrogen transport revenue support contract (within the meaning of Chapter 1 of Part 2) to which it is a party; (d) about activities that the designated person must, may or may not carry on; (e) about the management of the designated person’s activities, including the manner in which they are carried out; (f) conferring functions on the GEMA, including provision enabling or requiring the designated person to refer for determination, decision or approval by the GEMA matters specified, or of a description specified, in the licence; (g) for the amendment of the licence for the purpose of implementing a determination or decision of the GEMA or the Competition and Markets (h) requiring the designated person to comply with any direction or instruction, or to have regard to any guidance, given by the GEMA in relation to matters specified, or of a description specified, in the licence; (i) requiring the designated person to co-operate with the GEMA and to provide such information and assistance to the GEMA as it may require for the purposes of carrying out any of its functions; (j) about the payment by the designated person, to the GEMA or to the Competition and Markets Authority, of such amounts as may be determined by or in accordance with the licence; (k) about the disclosure or publication of information by the designated person. (2) Modifications made under section 136 (1)(b) may include, for example, provision about the circumstances in which a licence may be revoked or suspended. Part 3 – Licensing of hydrogen pipeline projects Document 2024-10-14 This version of this Act contains provisions that are prospective. Changes to There are currently no known outstanding effects for the Energy Act 2023.
(See end of Document for details) (3) The powers under section 136(1) and (4) to “modify” include the power to amend, add to or remove; and references to modification in section 136 , this section and section 138 are to be construed accordingly. (4) The powers conferred by section 136(1) and (4)— (a) may be exercised generally, only in relation to specified cases, or subject to exceptions (including by making provision for a case to be excepted only so long as specified conditions are satisfied); (b) may be exercised differently for different purposes or areas; (c) include power to make incidental, supplementary, consequential or (5) Provision included in a gas transporter licence, or in a document or agreement described in section 136(1)(d), by virtue of section 136— (a) need not relate to the activities authorised by the licence; (b) may do anything authorised for gas transporter licences by section 7B(4A), (5)(a), (6) or (7) of the Gas Act 1986. (6) The modification under section 136(1) or (4) of part of a standard condition of a gas transporter licence does not prevent any other part of the condition from continuing to be regarded as a standard condition for the purposes of Part 1 of the Gas Act 1986. (7) In section 81(2) of the Utilities Act 2000 (standard conditions of gas licences), after “section 89” (as inserted by section 91(13) of this Act) insert “, section 136(1) or (4)”. (8) References in this section to a designated person’s activities are to the person’s activities for the purposes of— (a) the designated project to which the modification relates, and (b) any other designated project authorised by the person’s gas transporter licence. I148 S. 137 in force at 26.12.2023, see s. 334(3)(c) 138 Procedure etc relating to modifications under section 136 (1) Before making a modification under section 136(1) or (4), the Secretary of State must (a) the holder of any licence being modified, (c) such other persons as the Secretary of State considers appropriate. (2) If under section 136(1) the Secretary of State modifies the standard conditions of a gas transporter licence, the GEMA must— (a) make the same modification of those standard conditions for the purposes of their incorporation in gas transporter licences granted after that time, and (3) The Secretary of State must publish details of any modifications made under section 136(1) and (4) as soon as reasonably practicable after they are made. Part 3 – Licensing of hydrogen pipeline projects Document 2024-10-14 This version of this Act contains provisions that are prospective. Changes to There are currently no known outstanding effects for the Energy Act 2023. (See end of Document for details) (4) The Secretary of State may exclude from publication under subsection (3) any material the disclosure or publication of which the Secretary of State considers— (a) would be likely to prejudice the commercial interests of any person, or (b) would be contrary to the interests of national security. I149 S. 138 in force at 26.12.2023, see s. 334(3)(c) (1) The Secretary of State may by regulations make provision about the provision and publication of information and advice in connection with the carrying out of functions of any person under or by virtue of this Part. (2) The provision that may be made by virtue of subsection (1) includes provision— (a) for the Secretary of State to require the GEMA to provide information to a hydrogen transport counterparty or any other specified person; (b) for a hydrogen transport counterparty to require the GEMA to provide (c) for the Secretary of State to require a designated person, a hydrogen transport counterparty or any other specified person to provide information to the (d) for the GEMA to require a designated person, a hydrogen transport counterparty or any other specified person to provide information to the (e) for the Secretary of State to require a designated person, a hydrogen transport counterparty, the GEMA or any other specified person to provide information or advice to the Secretary of State or any other specified person; (f) for the classification and protection of confidential or sensitive information; (g) for the enforcement of any requirement imposed by virtue of any of (3) Section 105(1) of the Utilities Act 2000 (general restrictions on disclosure of information) does not apply to a disclosure required by virtue of this section. (4) The first regulations under this section are subject to the affirmative procedure. (5) Any other regulations under this section are subject to the negative procedure. “designated person” includes a person who has been a designated person; “hydrogen transport counterparty” has the same meaning as in Chapter 1 “specified person” means a person specified, or of a description specified, in regulations under this section. Part 3 – Licensing of hydrogen pipeline projects Document 2024-10-14 This version of this Act contains provisions that are prospective. Changes to There are currently no known outstanding effects for the Energy Act 2023. (See end of Document for details) (7) See also section 34(4) of the Gas Act 1986 (general duty for the GEMA to give information, advice and assistance to the Secretary of State or the Competition and I150 S. 139 in force at 26.12.2023, see s. 334(3)(c) Conditions of gas transporter licences 140 Conditions of gas transporter licences for conveyance of hydrogen (1) For the purposes of this section, “relevant licence” means a gas transporter licence so far as it authorises a person to convey hydrogen through pipes in connection with the carrying on of a hydrogen pipeline project. (2) Without prejudice to the generality of section 7B(4)(a) of the Gas Act 1986 (conditions of licences), conditions described in subsection (3) may be included in a relevant licence in respect of circumstances where a person other than the licence holder (“the (a) has applied for, or is considering whether to apply for, a relevant licence, or (b) is considering whether to apply for financial support for activities relating to the production, transportation, storage or use of hydrogen.
(3) The conditions referred to in subsection (2) are conditions that require the licence holder to comply with a direction given by the Secretary of State or the GEMA requiring the holder to provide to the candidate— (a) information in relation to the activities authorised by the licence, and (b) any other assistance that the candidate may reasonably require for the purpose (i) apply for a relevant licence, or (ii) apply for financial support as mentioned in subsection (2)(b). (4) A person (“P”) may not under section 8(3) of the Gas Act 1986 modify a condition of a relevant licence unless P is of the opinion that the modification is such that— (a) the licence holder would not be unduly disadvantaged in competing with one or more other holders of relevant licences, and (b) no other holder of a relevant licence would be unduly disadvantaged in competing with other holders of such licences (including the holder of the relevant licence to be modified). I151 S. 140 in force at 26.12.2023, see s. 334(3)(c)

Chapter 1 – Low-carbon heat schemes Document 2024-10-14 This version of this Act contains provisions that are prospective. Changes to There are currently no known outstanding effects for the Energy Act 2023. (See end of Document for details) 141 Secretary of State directions to the GEMA (1) In exercising any functions it has in relation to relevant gas transporter licences, the GEMA must comply with general or particular directions given to it by the Secretary of State for the purpose of promoting value for money in connection with a hydrogen pipeline project (or in connection with hydrogen pipeline projects generally). (2) In subsection (1), “relevant gas transporter licence” means a gas transporter licence, held by a designated person, that authorises the conveyance of hydrogen through pipes in connection with the person’s designated project. I152 S. 141 in force at 26.12.2023, see s. 334(3)(c) (1) The Secretary of State may by regulations repeal any of the preceding provisions of (2) So far as any of those provisions is still in force on a relevant date, the Secretary of (a) consider whether it is appropriate to repeal that provision, and (b) if satisfied that it is not appropriate to do so, publish a statement no later than 3 months after that date explaining why not. (3) “Relevant date” in subsection (2) means 31 December 2040 and each five-year (4) Regulations under this section are subject to the affirmative procedure. I153 S. 142 in force at 26.12.2023, see s. 334(3)(c) (1) The Secretary of State may by regulations make provision for the establishment and operation of one or more low-carbon heat schemes. Chapter 1 – Low-carbon heat schemes Document 2024-10-14 This version of this Act contains provisions that are prospective. Changes to There are currently no known outstanding effects for the Energy Act 2023. (See end of Document for details) (2) A “low-carbon heat scheme” is a scheme for encouraging the supply or installation in the United Kingdom of relevant heating appliances through the imposition of low- carbon heat targets on persons to whom the scheme applies. “low-carbon heat target” means a target imposed by or under scheme “relevant heating appliance” means— (a) a heating appliance that generates heat but is incapable of burning fossil (b) a heating appliance that generates heat by burning fossil fuels or peat, but does so only as part of a wider system to supplement heat from air, (4) In the definition of “relevant heating appliance” in subsection (3) , “fossil fuel” (c) natural gas (within the meaning of the Energy Act 1976), (e) petroleum products (within the meaning of that Act), or (f) any substance produced directly or indirectly from a substance mentioned in (5) The provision made by sections 144 to 150 is without prejudice to the generality of (6) In this Chapter, “scheme regulations” means regulations under subsection (1). I154 S. 143 in force at Royal Assent, see s. 334(2)(c) (1) Scheme regulations that provide for the establishment of a low-carbon heat scheme (a) the descriptions of person to whom the scheme applies; (b) the kinds of relevant heating appliance to which the scheme applies. (2) A person within a description identified by virtue of subsection (1)(a) is referred to in this Chapter as a “scheme participant”. (a) set low-carbon heat targets, or (b) provide for low-carbon heat targets to be set in accordance with provision Section 145 contains further provision about the setting of targets. Chapter 1 – Low-carbon heat schemes Document 2024-10-14 This version of this Act contains provisions that are prospective. Changes to There are currently no known outstanding effects for the Energy Act 2023. (See end of Document for details) (4) Scheme regulations must make provision about the period or periods in relation to which low-carbon heat targets have effect.
(5) The provision that may be made by virtue of subsection (4) includes— (a) provision authorising things done by a scheme participant before the first period in relation to which a low-carbon heat target has effect to be treated as done by the scheme participant during that period; (b) provision authorising things done by a scheme participant during one period in relation to which a low-carbon-heat target has effect to be treated instead as done by the scheme participant during a different period in relation to which I155 S. 144 in force at Royal Assent, see s. 334(2)(c) (1) A low-carbon heat target may be set in whatever way, and by reference to whatever criteria, the Secretary of State considers appropriate, and may for example be set— (a) by reference to the carrying on of specified activities; (b) as a proportion of the activities of a scheme participant that must relate to (c) by reference to the average level of energy efficiency (determined in accordance with scheme regulations) to be achieved in relation to heating appliances, or specified descriptions of heating appliances, supplied or installed by a scheme participant; (d) by reference to the average carbon intensity of heat generation (determined in accordance with scheme regulations) of heating appliances, or specified descriptions of heating appliances, supplied or installed by a scheme (e) where a scheme participant manufactures heating appliances, by specifying what proportion of those heating appliances, or of specified heating appliances, that are supplied or installed (whether or not by the scheme participant) must be relevant heating appliances. (2) The power to specify an activity by virtue of subsection (1) (a) includes power to specify circumstances or conditions relating to the carrying out of the activity. (3) In the case of a low-carbon heat target that is imposed by virtue of subsection (1)(c) or (d) on a scheme participant who manufactures heating appliances, the target may be set by reference to heating appliances that are supplied or installed (whether or not (4) Scheme regulations may confer a discretion on the Secretary of State or any other person in connection with the setting of low-carbon heat targets. (5) The reference in subsection (1)(d) to the carbon intensity of heat generation, in relation to an appliance, is a reference to the level of greenhouse gas emissions per unit of heat

Chapter 1 – Low-carbon heat schemes Document 2024-10-14 This version of this Act contains provisions that are prospective. Changes to There are currently no known outstanding effects for the Energy Act 2023. (See end of Document for details) “Greenhouse gas emissions” means emissions of any greenhouse gas within the meaning of section 92(1) of the Climate Change Act 2008. (6) Scheme regulations may provide— (a) for different weight to be given to different kinds of appliance or different (b) for low-carbon heat targets to be set at different levels for different kinds of appliance or different activities. (7) Scheme regulations may provide for specified activities to count towards the meeting (8) In this section, “specified” means specified in scheme regulations. I156 S. 145 in force at Royal Assent, see s. 334(2)(c) 146 Further provision about scheme regulations (1) Scheme regulations must provide for the making of determinations as to whether a scheme participant has met a low-carbon heat target imposed on the scheme (2) Scheme regulations may make provision for monitoring the operation of a low-carbon heat scheme, and may in particular make provision about— (a) the keeping of records by scheme participants and others; (b) the provision of information by scheme participants and others; (c) the audit and verification of information provided by scheme participants and (3) Scheme regulations may make provision— (a) enabling scheme participants to pool or transfer low-carbon heat targets (b) for the issuing of certificates representing activities or appliances to which a low-carbon heat target relates; (c) enabling scheme participants to acquire certificates mentioned in paragraph (b) for the purpose of meeting a low-carbon heat target; (d) about the keeping of records in relation to— (i) the pooling or transfer of low-carbon heat targets; (ii) the acquisition of certificates. (4) Scheme regulations may make provision— (a) requiring a scheme participant who fails to meet a low-carbon heat target to make a payment, before a specified deadline, of an amount specified by or determined in accordance with the regulations; (b) for a payment mentioned in paragraph (a) to be made to the administrator (see section 147) or to such other person as the regulations may specify; (c) for a person who fails to meet a low-carbon heat target to be subject to such consequences (instead of or in addition to a requirement mentioned in paragraph (a)) as may be specified;

Chapter 1 – Low-carbon heat schemes Document 2024-10-14 This version of this Act contains provisions that are prospective. Changes to There are currently no known outstanding effects for the Energy Act 2023. (See end of Document for details) (d) about how liability to make a payment, or to other consequences, is to be determined where low-carbon heat targets have been pooled or transferred by virtue of provision made under subsection (3)(a). (5) In subsection (4), “specified” means specified in scheme regulations. I157 S. 146 in force at Royal Assent, see s. 334(2)(c) (1) Scheme regulations may provide for the appointment of a person as the administrator (a) may confer functions on the administrator for the purposes of the scheme; (b) may authorise the administrator to arrange for another person to carry out any functions of the administrator. (3) The functions that may be conferred on the administrator by virtue of subsection (2) include, for example, functions in connection with— (a) setting low-carbon heat targets; (b) determining whether low-carbon heat targets have been met; (e) requiring scheme participants to make payments to the administrator in connection with the costs of operating the scheme.
(4) Only the following may be appointed as the administrator of a low-carbon heat (d) the Department for the Economy in Northern Ireland; (e) a public authority (other than a person within any of paragraphs (a) to (d)); (f) any combination of the above. (5) More than one person may be appointed as the administrator of a low-carbon heat (6) Scheme regulations that appoint a public authority as the administrator of a low-carbon heat scheme may make such amendments to primary legislation as the Secretary of State considers appropriate for the purpose of enabling the authority to carry out the functions conferred on it by the regulations. (7) In this section, “public authority” means a person with functions of a public nature. I158 S. 147 in force at Royal Assent, see s. 334(2)(c)

Chapter 1 – Low-carbon heat schemes Document 2024-10-14 This version of this Act contains provisions that are prospective. Changes to There are currently no known outstanding effects for the Energy Act 2023. (See end of Document for details) 148 Enforcement, penalties and offences (1) Scheme regulations may authorise the administrator of a low-carbon heat scheme— (a) to require the production of documents or the provision of information; (b) to question the officers of a company or other individuals; (c) to enter premises with a warrant; (d) to seize documents or records. (2) Scheme regulations may authorise the administrator of a low-carbon heat scheme, in circumstances specified in the regulations— (a) to treat activities of a person (A) as activities of a different person (B) for the (b) to treat a low-carbon heat target imposed on A as if it had been imposed on B. (3) Scheme regulations may provide that a person is liable to one or more penalties in respect of a failure to comply with a requirement imposed on the person by or under (4) Where by virtue of subsection (3) scheme regulations provide that a person is liable to a financial penalty, the regulations— (a) may specify the amount of the penalty or provide for the amount of the penalty to be determined in accordance with the regulations; (b) must provide for the penalty to be paid to the administrator or to such other person as the regulations may specify. (5) Scheme regulations may create offences for failure to comply with a requirement imposed by or under a low-carbon heat scheme. (6) Scheme regulations made by virtue of subsection (5) may provide for an offence created by the regulations to be triable— (b) either summarily or on indictment. (7) Scheme regulations made by virtue of subsection (5) may provide for an offence created by the regulations to be punishable with a fine. I159 S. 148 in force at Royal Assent, see s. 334(2)(c) 149 Application of sums paid by virtue of section 146(4) or 148(3) (1) Scheme regulations may make provision about the application of amounts paid by virtue of section 146(4)(a) or 148(3). (2) Provision made by virtue of subsection (1) may require the payment of amounts into I160 S. 149 in force at Royal Assent, see s. 334(2)(c)

Chapter 1 – Low-carbon heat schemes Document 2024-10-14 This version of this Act contains provisions that are prospective. Changes to There are currently no known outstanding effects for the Energy Act 2023. (See end of Document for details) (1) Scheme regulations that, by virtue of section 148(3), provide that a person is liable to a financial penalty must also provide for a person to have a right of appeal to a court or tribunal against the imposition of the penalty. (2) Scheme regulations may make provision about appeals against— (a) decisions made by the administrator of a low-carbon heat scheme, and (b) penalties imposed (other than financial penalties) or enforcement action taken for failure to comply with a requirement imposed by or under a low-carbon (3) Scheme regulations that make provision by virtue of subsection (2) must specify the court, tribunal or person who is to hear and determine an appeal made by virtue of I161 S. 150 in force at Royal Assent, see s. 334(2)(c) 151 Scheme procedure etc (1) Scheme regulations are subject to the negative procedure unless subsection (2) applies, in which case they are subject to the affirmative procedure. (2) This subsection applies if scheme regulations— (a) establish a low-carbon heat scheme; (b) extend the descriptions of person, or the kinds of relevant heating appliance, to which a low-carbon heat scheme applies; (c) provide for new penalties; (d) increase the amount of existing financial penalties by more than is necessary to reflect changes in the value of money; (e) create an offence or increase the fine for an existing offence; (f) confer new powers to enforce requirements imposed by or under a low-carbon (g) amend primary legislation. (3) Scheme regulations may create exceptions to any requirement imposed by the (4) Before making scheme regulations that apply in relation to Scotland, Wales or Northern Ireland, the Secretary of State must give notice— (a) stating that the Secretary of State proposes to make scheme regulations, (b) setting out or describing the provisions of the regulations that apply in relation to Scotland, Wales or Northern Ireland, and (c) specifying the period (of not less than 28 days from the date on which the notice is given) within which representations may be made with respect to and must consider any representations duly made and not withdrawn. (5) A notice under subsection (4) must be given to each relevant devolved authority, that

Chapter 2 – Hydrogen grid conversion trials Document 2024-10-14 This version of this Act contains provisions that are prospective. Changes to There are currently no known outstanding effects for the Energy Act 2023.
(See end of Document for details) (a) the Scottish Ministers, so far as the regulations apply in relation to Scotland; (b) the Welsh Ministers, so far as the regulations apply in relation to Wales; (c) the Department for the Economy in Northern Ireland, so far as the regulations apply in relation to Northern Ireland. (6) The Secretary of State need not wait until the end of the period specified under subsection (4)(c) before making regulations if, before the end of that period, each relevant devolved authority to which the notice was given has confirmed that it has made any representations it intends to make with respect to the provisions referred (7) The Secretary of State must, if requested to do so by a relevant devolved authority, give the authority a statement setting out whether and how representations made by the authority with respect to the provisions referred to in subsection (4)(b) have been taken into account in the regulations. I162 S. 151 in force at Royal Assent, see s. 334(2)(c) 152 Interpretation of Chapter 1 “low-carbon heat scheme” has the meaning given by section 143(2); “low-carbon heat target” has the meaning given by section 143(3); (b) an Act of the Scottish Parliament, (c) a Measure or Act of Senedd Cymru, or (d) Northern Ireland legislation; “relevant heating appliance” has the meaning given by section 143(3); “scheme participant” has the meaning given by section 144(2); “scheme regulations” has the meaning given by section 143(6). I163 S. 152 in force at Royal Assent, see s. 334(2)(c) 153 Modifications of the gas code (1) For the purposes of this section, “hydrogen grid conversion trial” means a scheme designated by the Secretary of State that— (a) relates to a particular place or area (the “trial location”),

Chapter 2 – Hydrogen grid conversion trials Document 2024-10-14 This version of this Act contains provisions that are prospective. Changes to There are currently no known outstanding effects for the Energy Act 2023. (See end of Document for details) (b) is designed to gather evidence for the purpose of enabling assessments to be made about the feasibility, costs and benefits of using hydrogen for heating (c) requires the network for supplying gas to the trial location to be modified so as to enable the supply of hydrogen, and (d) is intended to have effect for a definite period. (2) Schedule 2B to the Gas Act 1986 (the gas code) applies in relation to a hydrogen grid (a) as if references to a gas transporter included a person (other than a gas transporter) who is conducting the trial, and (b) as if it were modified in accordance with subsections (3) to (5). (3) Paragraph 16 (alterations etc of burners on change of calorific value) applies as if— (a) in sub-paragraph (1), the words “at a rate not exceeding 75,000 therms a year” (b) in sub-paragraph (2), the steps required to be taken in respect of premises in the trial location also included any works required in respect of the premises (other than works already mentioned in sub-paragraph (2)) for the purposes or in consequence of the trial. (4) Paragraph 23 (entry of premises during supply) applies as if the power conferred by sub-paragraph (1)(a) included power to enter premises in the trial location for the purpose of inspecting anything on the premises, or carrying out any tests on the premises, in preparation for or otherwise in connection with the trial. (5) Paragraph 24 (entry of premises to discontinue supply) applies as if the power conferred by sub-paragraph (2) were exercisable for the purposes of the trial— (a) in relation to any premises in the trial location, and (b) notwithstanding sub-paragraph (1). (6) For the purposes of the application of the Rights of Entry (Gas and Electricity Boards) Act 1954 in relation to a relevant power of entry (see paragraph 28(5) of Schedule 2B to the Gas Act 1986), the reference in section 1(2) of the 1954 Act to a gas operator includes a reference to a person (other than a gas transporter) who is conducting a hydrogen grid conversion trial. (7) In subsection (6), “relevant power of entry” means a power of entry conferred by Schedule 2B to the Gas Act 1986, as it applies by virtue of this section in relation to a hydrogen grid conversion trial. I164 S. 153 in force at 26.12.2023, see s. 334(3)(d) 154 Regulations for protection of consumers (1) The Secretary of State may by regulations make provision— (a) requiring a gas transporter to take specified steps to secure that consumers in a trial location are properly informed about a hydrogen grid conversion trial being conducted in the trial location;

Chapter 2 – Hydrogen grid conversion trials Document 2024-10-14 This version of this Act contains provisions that are prospective. Changes to There are currently no known outstanding effects for the Energy Act 2023. (See end of Document for details) (b) requiring a gas transporter to take specified steps to secure that consumers are given adequate warning of the need for their premises to be disconnected for the purposes of a hydrogen grid conversion trial; (c) about the enforcement of requirements imposed by virtue of paragraph (a) (2) Regulations under subsection (1) may confer functions on gas transporters in connection with the discharge of requirements imposed by the regulations. (3) The provision that may be made by virtue of subsection (1)(c) includes provision for the imposition of civil penalties in respect of a failure to comply with a requirement imposed by the regulations (but does not include provision for the creation of a (4) The Secretary of State may by regulations make provision designed to secure protection for consumers and other people who are affected, or likely to be affected, by a hydrogen grid conversion trial.
(5) The provision that may be made by regulations under subsection (4) includes, for (a) about the making of complaints about the exercise by a gas transporter of a power conferred by a relevant statutory provision; (b) about the award of redress in specified circumstances; (c) imposing requirements on gas transporters or other persons to provide information to consumers and others; (d) for securing that consumers and others are not required to incur expenditure, or are not otherwise financially disadvantaged, as a result of a hydrogen grid (e) for securing fair treatment of consumers and others before, during and after a hydrogen grid conversion trial; (f) about the quality of products provided to consumers and others and the quality of works carried out on premises owned by consumers and others; (g) about the enforcement of requirements imposed by the regulations on gas transporters or other persons. (6) The provision that may be made by virtue of subsection (5)(g) includes provision for the imposition of civil penalties in respect of a failure to comply with a requirement imposed by the regulations (but does not include provision for the creation of a (7) Where regulations under this section make provision for a civil penalty, they must also include provision for a right of appeal to a court or tribunal against the imposition of (8) Regulations under this section are subject to the negative procedure. “consumer” and “disconnected” have the same meaning as in Schedule 2B to the Gas Act 1986 (see paragraph 1(1) of that Schedule); (a) a gas transporter within the meaning of Part 1 of the Gas Act 1986 (see

Document 2024-10-14 This version of this Act contains provisions that are prospective. Changes to There are currently no known outstanding effects for the Energy Act 2023. (See end of Document for details) (i) is conducting a hydrogen grid conversion trial, and (ii) does not require a licence under section 7 of the Gas Act 1986 as a result of an exemption under section 6A of that Act; “hydrogen grid conversion trial” and “trial location” have the same “specified” means specified by regulations. I165 S. 154 in force at Royal Assent, see s. 334(2)(d) 155 Power to modify Gas Act 1986 in relation to hydrogen (1) The Secretary of State may by regulations provide for any provision of the Gas Act (b) to apply with modifications specified in the regulations, in relation to the production, transportation, storage or use of hydrogen. (2) The power under subsection (1) may be exercised by amending the Gas Act 1986. (3) The power under subsection (1) may be exercised only for the purpose of facilitating or promoting the production, transportation, storage or use of hydrogen. (4) Before exercising the power under subsection (1) , the Secretary of State must (b) such other persons as the Secretary of State considers appropriate. (5) Regulations under subsection (1) are subject to the affirmative procedure. I166 S. 155 in force at 26.12.2023, see s. 334(3)(e) 156 Fusion energy nuclear site licence not required (1) Section 1 of the Nuclear Installations Act 1965 (restriction of certain nuclear installations to licensed sites) is amended as follows. (2) After subsection (2) insert—

Document 2024-10-14 This version of this Act contains provisions that are prospective. Changes to There are currently no known outstanding effects for the Energy Act 2023. (See end of Document for details) “(2A) Subsection (1) does not apply to a fusion energy facility. (2B) In subsection (2A), “fusion energy facility” means a site that is— (a) used for the purpose of installing or operating any plant designed or adapted for the production of electrical energy or heat by fusion, and (b) not also used for the purpose of installing or operating a nuclear I167 S. 156 not in force at Royal Assent, see s. 334(1) I168 S. 156 in force at 10.9.2024 by S.I. 2024/890, reg. 2(a) Renewable and sustainable fuel 157 Treatment of recycled carbon fuel and nuclear-derived fuel as renewable After section 131C of the Energy Act 2004 insert— “131D Recycled carbon fuel and nuclear-derived fuel (a) designate as recycled carbon fuel a description of liquid or gaseous fuel which is produced wholly from waste derived from a fossil source of (b) designate as nuclear-derived fuel a description of liquid or gaseous fuel which is produced wholly using, or by a process powered wholly by, (2) Where a designation under subsection (1) is in force, the recycled carbon fuel or nuclear-derived fuel is to be treated for the purposes of this Chapter and any RTF order as renewable transport fuel.” I169 S. 157 in force at Royal Assent, see s. 334(2)(e) 158 Revenue certainty scheme for sustainable aviation fuel consultation (1) The Secretary of State must carry out a public consultation on the options for designing and implementing a sustainable aviation fuel revenue certainty scheme. (2) A “sustainable aviation fuel revenue certainty scheme” is a scheme whose purpose is to give producers of sustainable aviation fuel greater certainty than they otherwise would have about the revenue that they will earn from sustainable aviation fuel that

Document 2024-10-14 This version of this Act contains provisions that are prospective. Changes to There are currently no known outstanding effects for the Energy Act 2023. (See end of Document for details) (3) The Secretary of State must open the consultation within the period of 6 months beginning with the day on which this Act is passed. (4) The Secretary of State must bring the consultation to the attention of, in particular, such of each of the following as the Secretary of State considers appropriate— (a) producers of sustainable aviation fuel; (b) suppliers of sustainable aviation fuel; (5) The Secretary of State must, within the period of 18 months beginning with the day on which this Act is passed, lay before Parliament a report on progress made towards the development of a sustainable aviation fuel revenue certainty scheme.
(6) In this section, “sustainable aviation fuel” means aviation turbine fuel whose use (as compared with the use of other aviation turbine fuel) will, in the opinion of the Secretary of State, contribute to a reduction in emissions of greenhouse gases; and for “aviation turbine fuel” has the meaning given by article 3(1B) of the Renewable Transport Fuel Obligations Order 2007 (S.I. 2007/3072); “greenhouse gas” has the meaning given by section 92(1) of the Climate I170 S. 158 in force at Royal Assent, see s. 334(2)(f) 159 Renewable liquid heating fuel obligations (1) The Secretary of State may by regulations subject off-grid heating fuel suppliers (or off-grid heating fuel suppliers of a particular description) to an obligation in respect of renewable liquid heating fuel that corresponds to or is similar to the obligation mentioned in section 124(2) of the Energy Act 2004 (renewable transport (2) The regulations may, for any purpose connected with that obligation, make provision corresponding to or similar to any provision made by, or that may be made under, Chapter 5 of Part 2 of the Energy Act 2004 (powers etc relating to renewable transport (3) Before making regulations under this section, the Secretary of State must consult such persons as the Secretary of State considers appropriate. (4) Regulations under this section are subject to the affirmative procedure. “off-grid heating fuel supplier” means a person who, in the course of (a) renewable liquid heating fuel, (c) other fuel, apart from solid fuel,

Part 5 – Independent System Operator and Planner Document 2024-10-14 This version of this Act contains provisions that are prospective. Changes to There are currently no known outstanding effects for the Energy Act 2023. (See end of Document for details) at or for delivery to places in Great Britain with a view to its being used wholly or mainly for the purpose of heating buildings to which there is no mains gas “renewable liquid heating fuel” means fuel that is typically supplied or stored in a liquid state and that is— (a) biofuel or blended biofuel, or (b) fuel (other than fossil fuel or nuclear fuel) produced— (i) wholly by energy from a renewable source, or (ii) wholly by a process powered wholly by such energy; and “biofuel”, “blended biofuel”, “fossil fuel” and “renewable source” have the meanings given in section 132 of the Energy Act 2004. I171 S. 159 in force at Royal Assent, see s. 334(2)(g) 160 Climate Change Act 2008: meaning of “UK removals” In section 29(1)(b) of the Climate Change Act 2008 (UK emissions and removals of greenhouse gases), for “land use, land-use change or forestry” substitute “processes, I172 S. 160 in force at 26.12.2023, see s. 334(3)(f) Independent System Operator and functions and designation 161 The Independent System Operator and Planner (“the ISOP”) (1) This Part contains provision about the Independent System Operator and Planner (referred to in this Part as “the ISOP”). (2) The functions of the ISOP include— (a) functions conferred by or by virtue of this Act, which include functions relating to the matters mentioned in subsection (3), and (b) whatever other functions are conferred on the ISOP by or by virtue of any enactment other than one contained in this Act. (3) The matters referred to in subsection (2)(a) are— (a) co-ordinating and directing the flow of electricity onto and over transmission

Part 5 – Independent System Operator and Planner Document 2024-10-14 This version of this Act contains provisions that are prospective. Changes to There are currently no known outstanding effects for the Energy Act 2023. (See end of Document for details) (b) making and administering arrangements for the provision of services for the purpose of facilitating the co-ordination of the flow of electricity onto and (c) carrying out strategic planning and forecasting in connection with— (i) the development of transmission systems, (ii) the provision of services referred to in paragraph (b), and (iii) other arrangements relating to the conveyance or supply of electricity; (d) carrying out strategic planning and forecasting in connection with— (i) the development of pipe-line systems for the conveyance of gas, and (ii) other arrangements relating to the conveyance or supply of gas; (e) providing advice, analysis or information in relation to the matters mentioned I173 S. 161 not in force at Royal Assent, see s. 334(1) I174 S. 161 in force at 31.1.2024 by S.I. 2024/32, reg. 3(a)(i) (1) The Secretary of State may by notice designate a person as the ISOP. (2) A notice under subsection (1)— (a) must specify the time from which the designation has effect; (b) must be published by the Secretary of State as soon as reasonably practicable (3) The Secretary of State must ensure that a person is designated under subsection (1) at all times after a person is first designated (but at any time not more than one person (4) The Secretary of State may by notice revoke a person’s designation (5) A notice under subsection (4)— (a) must specify the time from which the revocation has effect; (b) must be published by the Secretary of State as soon as reasonably practicable I175 S. 162 not in force at Royal Assent, see s. 334(1) I176 S. 162 in force at 31.1.2024 by S.I. 2024/32, reg. 3(a)(i)

Part 5 – Independent System Operator and Planner Document 2024-10-14 This version of this Act contains provisions that are prospective. Changes to There are currently no known outstanding effects for the Energy Act 2023. (See end of Document for details) 163 Duty to promote particular objectives (1) The ISOP must carry out its functions in the way that it considers is best calculated (b) the security of supply objective; (c) the efficiency and economy objective. (2) The net zero objective is the objective of enabling the Secretary of State to meet the (a) section 1 of the Climate Change Act 2008 (net UK carbon account target for (b) section 4(1)(b) of that Act (UK carbon account not to exceed carbon budget).
(3) The security of supply objective is the objective of ensuring the security of supply, to existing and future consumers, of— (a) electricity conveyed by distribution systems or transmission systems, and (b) gas conveyed through pipes. (4) The efficiency and economy objective is the objective of promoting— (a) efficient, co-ordinated and economical systems for the distribution and transmission of electricity and the conveyance of gas; (b) efficiency (including the efficient use of energy) and economy on the part of persons who carry out relevant activities within subsection (5)(a), (b) or (c). (5) In this Part, “relevant activity” means any of the following, so far as carried out in (a) an activity mentioned in section 5(1) of the Gas Act 1986 (gas transportation, interconnection, supply, shipping, system planning, smart meter communication, code management); (b) an activity mentioned in section 4(1) of the Electricity Act 1989 (electricity generation, transmission, distribution, supply, interconnection, multi-purpose interconnection, system operation, smart meter communication, code (c) an activity, other than an activity within paragraph (a) or (b), in respect of (d) an activity, other than an activity within paragraph (a), (b) or (c), that is (i) the production, conveyance, storage or supply of energy, (ii) the reduction of UK emissions of targeted greenhouse gases arising from the production, conveyance, storage, supply or consumption of (iii) data relating to any matter within sub-paragraph (i) or (ii), or to demand for or consumption of energy. (6) For the purposes of subsection (5)(d)— (a) “energy” means energy in any form and includes fuel or other substances used

Part 5 – Independent System Operator and Planner Document 2024-10-14 This version of this Act contains provisions that are prospective. Changes to There are currently no known outstanding effects for the Energy Act 2023. (See end of Document for details) (b) references to the production of energy include references to the conversion of energy from one form to another; (c) references to the supply of energy include references to adjusting consumption of energy (whether generally, at particular times, or by particular persons); (d) an activity referred to in paragraph (d)(i) is not a relevant activity when carried out in relation to products for human or animal consumption; (e) “UK emissions of targeted greenhouse gases” are emissions of such gases as are, or are treated for the purposes of Part 1 of the Climate Change Act 2008 as, emissions from sources in the United Kingdom. (7) In this section, “targeted greenhouse gas” has the same meaning as in Part 1 of the Climate Change Act 2008 (see section 24 of that Act). I177 S. 163 not in force at Royal Assent, see s. 334(1) I178 S. 163 in force at 31.1.2024 by S.I. 2024/32, reg. 3(a)(ii) 164 Duty to have regard to particular matters (1) The ISOP must, when carrying out its functions, have regard to— (a) the need to facilitate competition between persons who carry out a relevant activity (except to the extent that such persons are, in accordance with or by virtue of an enactment, not subject to competition in relation to the activity); (b) the consumer impact of a relevant activity; (c) the whole-system impact of a relevant activity; (d) the desirability of facilitating innovation in relation to the carrying out of (2) The reference in subsection (1)(b) to the consumer impact of a relevant activity is a reference to the impact (or likely impact) of— (a) the behaviour of persons who carry out the activity on existing and future (b) the behaviour of existing and future consumers on the carrying out of the (3) The reference in subsection (1)(c) to the whole-system impact of a relevant activity is a reference to the impact (or likely impact) of— (a) the carrying out of the activity, and (b) the behaviour of existing and future consumers in relation to the carrying out in relation to the carrying out of other relevant activities. I179 S. 164 not in force at Royal Assent, see s. 334(1) I180 S. 164 in force at 31.1.2024 by S.I. 2024/32, reg. 3(a)(ii)

Part 5 – Independent System Operator and Planner Document 2024-10-14 This version of this Act contains provisions that are prospective. Changes to There are currently no known outstanding effects for the Energy Act 2023. (See end of Document for details) 165 Duty to have regard to strategy and policy statement (1) The ISOP must, when carrying out its functions, have regard to the strategic priorities set out in the current strategy and policy statement. (2) The ISOP must give notice to the Secretary of State if at any time the ISOP concludes that a policy outcome contained in the current strategy and policy statement is not (3) A notice under subsection (2) must include— (a) the grounds on which the conclusion was reached; (b) what (if anything) the ISOP is doing or proposes to do for the purpose of furthering the delivery of the outcome so far as reasonably practicable. “the current strategy and policy statement” means the statement for the time being designated under section 131(1) of the Energy Act 2013; “policy outcome” and “strategic priorities” have the same meaning as in Part 5 of the Energy Act 2013 (see section 131(5) of that Act). (5) Part 5 of the Energy Act 2013 is amended as follows. (6) In section 131 (designation of strategy and policy statement)— (a) in subsection (2)(c), after “Authority” insert “, the Independent System (b) in subsection (5), after the definition of “the 1986 Act” insert— ““Independent System Operator and Planner” means the person for the time being designated under section 162(1) of the Energy Act 2023;”. (7) Section 134 (review of strategy and policy statement) is amended as follows.
(8) In subsection (4), after paragraph (b) insert— “(ba) the Independent System Operator and Planner has given notice to the Secretary of State under section 165(2) of the Energy Act 2023 since (9) After subsection (5) insert— “(5A) The Secretary of State may also review the strategy and policy statement at any other time if the Secretary of State considers it appropriate to do so in preparation for or in connection with the designation of a person under section 162(1) of the Energy Act 2023 (Independent System Operator (10) In subsection (10), after paragraph (a) insert— “(aa) the Independent System Operator and Planner,”. (11) In section 135(4) (procedural requirements in relation to strategy and policy statement), after paragraph (a) insert— “(aa) the Independent System Operator and Planner,”. I181 S. 165 not in force at Royal Assent, see s. 334(1)

Part 5 – Independent System Operator and Planner Document 2024-10-14 This version of this Act contains provisions that are prospective. Changes to There are currently no known outstanding effects for the Energy Act 2023. (See end of Document for details) I182 S. 165 in force at 31.1.2024 by S.I. 2024/32, reg. 3(a)(ii) 166 Licensing of electricity system operator activity (1) Part 1 of the Electricity Act 1989 is amended as follows. (2) In section 4(1) (prohibition on unlicensed supply, transmission etc of electricity), after “(ca) co-ordinates and directs the flow of electricity onto and over transmission systems by means of which the transmission of (3) Section 6 (licences authorising supply, etc) is amended as follows. (4) In subsection (1), after paragraph (d) insert— “(da) subject to subsections (1ZB) and (2ZA), a licence authorising a person to co-ordinate and direct the flow of electricity onto and over transmission systems by means of which the transmission of electricity takes place (“an electricity system operator licence”);”. (5) After subsection (1) insert— “(1ZA) Subject to subsection (2ZA), the Secretary of State may grant an electricity (1ZB) The first electricity system operator licence may only be granted by the (1ZC) For the purposes of this section, references to the grant of an electricity system operator licence include the giving of a direction under section 167 of the Energy Act 2023 in respect of a transmission licence.” (6) After subsection (2) insert— “(2ZA) A person may not be granted an electricity system operator licence unless the (a) already holds a licence granted under section 7AA of the Gas Act (b) is granted such a licence at the same time as the person is granted an electricity system operator licence.” (7) In subsection (2A), for “(d)” substitute “(da)”. (8) In subsection (8), after “term of the licence” insert “and subject to”. (9) After subsection (8) insert— “(8A) If a person who holds an electricity system operator licence ceases at any time to hold a licence under section 7AA of the Gas Act 1986, the person is to be treated as ceasing to hold the electricity system operator licence at the same (10) In section 7A (transfer of licences), after subsection (11) insert—

Part 5 – Independent System Operator and Planner Document 2024-10-14 This version of this Act contains provisions that are prospective. Changes to There are currently no known outstanding effects for the Energy Act 2023. (See end of Document for details) “(11ZA) An electricity system operator licence may not be transferred to a person unless a licence granted under section 7AA of the Gas Act 1986 is also transferred to the same person at the same time.” I183 S. 166 not in force at Royal Assent, see s. 334(1) I184 S. 166(1)(3)-(10) in force at 31.1.2024 by S.I. 2024/32, reg. 3(a)(iii) I185 S. 166(2) in force at 1.10.2024 by S.I. 2024/957, reg. 2(a) 167 Direction for transmission licence to have effect as electricity system operator (1) The Secretary of State may (instead of granting an electricity system operator licence) direct that a pre-commencement transmission licence is to have effect as an electricity (2) A direction under this section may provide that a licence that has effect by virtue of the direction includes such terms and conditions as are specified, or of a description specified, in the direction (regardless of whether or the extent to which those terms and conditions were included in the pre-commencement transmission licence). (3) A direction under this section may provide for the continued effect (in accordance with the direction) of rights, liabilities and obligations that have effect immediately before the relevant date in connection with— (a) a pre-commencement transmission licence, (b) a document maintained in accordance with the conditions of such a licence, or (c) an agreement that gives effect to such a document. (4) In subsection (3), “the relevant date” means the date on which the direction takes (5) A direction under this section may make— (a) incidental, consequential, supplementary and transitional provision; (b) such amendments relating to the revocation of a pre-commencement transmission licence as the Secretary of State considers appropriate; (c) different provision for different purposes. (6) Before giving a direction under this section, the Secretary of State must consult— (b) such other persons as the Secretary of State considers appropriate. (7) Subsection (6) may be satisfied by consultation before the passing of this Act (as well as by consultation after that time). “electricity system operator licence” means a licence under section 6(1) (da) of the Electricity Act 1989 (as inserted by section 166); “pre-commencement transmission licence” means a licence under section 6(1)(b) of the Electricity Act 1989 that is in force immediately before this section comes into force. Part 5 – Independent System Operator and Planner Document 2024-10-14 This version of this Act contains provisions that are prospective. Changes to There are currently no known outstanding effects for the Energy Act 2023. (See end of Document for details) I186 S. 167 not in force at Royal Assent, see s. 334(1) I187 S. 167 in force at 31.1.2024 by S.I. 2024/32, reg. 3(a)(iv) 168 Licensing of gas system planning activity (1) The Gas Act 1986 is amended as follows.
(2) In section 5 (prohibition on unlicensed activities), in subsection (1)— (a) omit the “or” at the end of paragraph (c); (b) after that paragraph insert— “(ca) carries out planning and forecasting functions of the Independent System Operator and Planner;”; (c) after subsection (10) insert— “(10A) In subsection (5)(1)(ca), “planning and forecasting functions of the Independent System Operator and Planner” means functions that— (a) are conferred by or by virtue of an enactment on a person who is designated under section 162(1) of the Energy Act 2023, (b) relate to strategic planning and forecasting in connection with the development of pipe-line systems operated by gas transporters for the conveyance of gas.” “7AA Licensing of a person carrying out gas system planner functions (1) Subject to subsections (3) and (4), the Authority may grant a licence authorising a person to carry out planning and forecasting functions of the Independent System Operator and Planner (“a gas system planner licence”). (2) Subject to subsection (4), the Secretary of State may grant a gas system (3) The first gas system planner licence may only be granted by the Secretary of (4) A person may not be granted a gas system planner licence unless either of the following paragraphs applies to the person— (i) already holds an electricity system operator licence, or (ii) is treated as holding such a licence by virtue of a direction under section 167 of the Energy Act 2023; (b) the person is granted an electricity system operator licence, or is treated by virtue of a direction under section 167 of the Energy Act 2023 as having been granted such a licence, at the same time as the person is granted a gas system planner licence. Part 5 – Independent System Operator and Planner Document 2024-10-14 This version of this Act contains provisions that are prospective. Changes to There are currently no known outstanding effects for the Energy Act 2023. (See end of Document for details) “electricity system operator licence” means a licence under section 6(1)(da) of the Electricity Act 1989; “planning and forecasting functions of the Independent System Operator and Planner” has the meaning given by section 5(10A).” (4) In section 7B (licences: general)— (a) in subsection (3), after “contained in it” insert “and subject to (b) after subsection (3) insert— “(3A) If a person who holds a gas system planner licence ceases at any time to hold a licence under section 6(1)(da) of the Electricity Act 1989, the person is to be treated as ceasing to hold the gas system planner (5) In section 8AA (transfer of licences), after subsection (11) insert— “(11ZA) A gas system planner licence may not be transferred to a person unless a licence granted under section 6(1)(da) of the Electricity Act 1989 is also transferred to the same person at the same time.” I188 S. 168 not in force at Royal Assent, see s. 334(1) I189 S. 168(1)(3)-(5) in force at 31.1.2024 by S.I. 2024/32, reg. 3(a)(v) I190 S. 168(2) in force at 1.10.2024 by S.I. 2024/957, reg. 2(b) 169 Modification of licences etc (1) A relevant authority may modify— (a) the conditions of a particular relevant licence; (b) the standard conditions of relevant licences of a particular type; (2) A relevant authority may revoke a pre-commencement transmission licence where— (a) the licence authorises the holder to co-ordinate and direct the flow of electricity onto and over a transmission system by means of which the transmission of electricity takes place, and (b) the first electricity system operator licence has been granted to a person. (3) A relevant authority may exercise the power under subsection (1) or (2) only— (a) in preparation for the designation of a person under section 162(1), or (b) in connection with or in consequence of the designation of a person under that (4) A relevant authority may also exercise the power under subsection (1) where— (a) the operation or management of a relevant document is affected by steps taken in connection with the designation of a person under section 162(1) or by the preparation for such a designation, and (b) the authority considers it appropriate to exercise the power in connection with the operation or management of a relevant document. Part 5 – Independent System Operator and Planner Document 2024-10-14 This version of this Act contains provisions that are prospective. Changes to There are currently no known outstanding effects for the Energy Act 2023. (See end of Document for details) (5) The Secretary of State may direct the GEMA to exercise the power under subsection (1) or (2) if the Secretary of State considers it appropriate for the (6) A relevant authority may not exercise the power under subsection (1) or (2) after the end of the period of 3 years beginning with the day on which the first designation under section 162(1) has effect. “pre-commencement transmission licence” has the same meaning as in “relevant authority” means the Secretary of State or the GEMA; “relevant document” means a document maintained in accordance with the conditions of a relevant licence. I191 S. 169 in force at Royal Assent, see s. 334(2)(h)(i) 170 Procedure relating to modifications under section 169 (1) Before making a modification under section 169, a relevant authority must— (a) publish a notice about the proposed modification, (b) send a copy of the notice to the persons listed in subsection (2), and (c) consider any representations made within the period specified in the notice about the proposed modification or the date from which it would take effect.
(2) The persons mentioned in subsection (1)(b) are— (a) each relevant licence holder; (b) the GEMA (where the relevant authority is the Secretary of State) or the Secretary of State (where the relevant authority is the GEMA); (c) the National Association of Citizens Advice Bureaux; (d) the Scottish Association of Citizens Advice Bureaux; (f) the General Consumer Council for Northern Ireland, unless the relevant authority does not consider it appropriate for the Council to be sent a copy of the notice in a particular case; (g) where the proposed modification relates to a licence for the purposes of section 5 of the Gas Act 1986, the Health and Safety Executive; (h) such other persons as the relevant authority considers appropriate. (3) A notice under subsection (1) must— (a) state that the relevant authority proposes to make a modification; (b) set out the proposed modification and its effect; (c) specify the date from which the relevant authority proposes that the modification will have effect; (d) state the reasons why the relevant authority proposes to make the

Part 5 – Independent System Operator and Planner Document 2024-10-14 This version of this Act contains provisions that are prospective. Changes to There are currently no known outstanding effects for the Energy Act 2023. (See end of Document for details) (4) If, after complying with subsections (1) to (3) in relation to a modification, the relevant authority decides to make the modification, it must publish a notice about the decision. (5) A notice under subsection (4) must— (a) state that the relevant authority has decided to make the modification; (b) set out the modification and its effect; (c) specify the date from which the modification has effect; (d) state how the relevant authority has taken account of any representations made in the period specified in the notice under subsection (1); (e) state the reason for any differences between the modification set out in the notice and the proposed modification. (6) A notice under this section about a modification or decision must be published in such manner as the relevant authority considers appropriate for bringing it to the attention of those likely to be affected by the making of the modification or decision. (7) References in this section to the making of a modification, in relation to a relevant licence, include references to the revocation of the licence. (8) In this section, “relevant licence holder”— (a) in relation to the modification of standard conditions of relevant licences of any type, means the holder of a licence of that type— (i) that is to be modified by the inclusion of a new standard condition, or (ii) that includes any standard conditions to which the modification relates that are in effect at the end of the period specified by virtue (b) in relation to the modification of a condition of a particular relevant licence (other than a standard condition), means the holder of that licence; (c) in relation to the modification of a document maintained in accordance with the conditions of a relevant licence of a particular type, means the holder of a relevant licence of that type; (d) in relation to the revocation of a relevant licence, means the holder of that (9) In this section, “relevant authority” means the Secretary of State or the GEMA. I192 S. 170 in force at Royal Assent, see s. 334(2)(h)(i) Advice, analysis and information 171 Provision of advice, analysis or information (1) The ISOP must, so far as reasonably practicable, comply with a request by a person within subsection (2) for the provision of advice, analysis or information to the person (a) any of the ISOP’s functions, (b) any of the objectives listed in section 163(1), or (c) any of the matters listed in section 164(1). Part 5 – Independent System Operator and Planner Document 2024-10-14 This version of this Act contains provisions that are prospective. Changes to There are currently no known outstanding effects for the Energy Act 2023. (See end of Document for details) (2) The persons within this subsection are— (a) a Minister of the Crown (within the meaning of the Ministers of the Crown Act 1975: see section 8(1) of that Act); (3) The ISOP must, so far as reasonably practicable, comply with a request made under subsection (1) within such period, and in such form and manner, as the person making the request may reasonably require. I193 S. 171 not in force at Royal Assent, see s. 334(1) I194 S. 171 in force at 31.1.2024 by S.I. 2024/32, reg. 3(a)(vi) 172 Power to require information from regulated persons etc (1) The ISOP may by notice request from a person within subsection (2) such information as the ISOP reasonably requires in connection with the exercise of any of its functions. (2) A person is within this subsection if— (a) the person carries out a relevant activity, or (b) the ISOP reasonably considers that the person intends to carry out a relevant (3) A person to whom a request is made under subsection (1) must, so far as reasonably practicable, provide the requested information within such period, and in such form and manner, as may be specified in the notice. (4) Where a requirement under subsection (3) is imposed on a regulated person (as defined by section 25(8) of the Electricity Act 1989), it is enforceable by the GEMA as if it were a relevant requirement imposed on the person for the purposes of section 25 of (5) Where a requirement under subsection (3) is imposed on a regulated person (as defined by section 28(8) of the Gas Act 1986), it is enforceable by the GEMA as if it were a relevant requirement imposed on the person for the purposes of section 28 of that Act.
(6) Where neither of subsections (4) and (5) applies, the duty imposed under subsection (3) on a person is enforceable by the ISOP in civil proceedings— (b) for specific performance of a statutory duty under section 45 of the Court of (c) for any other appropriate remedy or relief. (7) Nothing in this section requires a disclosure of information that would contravene the data protection legislation (within the meaning of the Data Protection Act 2018 - see In determining whether a disclosure would do so, the duty imposed by subsection (3)

Part 5 – Independent System Operator and Planner Document 2024-10-14 This version of this Act contains provisions that are prospective. Changes to There are currently no known outstanding effects for the Energy Act 2023. (See end of Document for details) I195 S. 172 not in force at Royal Assent, see s. 334(1) I196 S. 172 in force at 31.1.2024 by S.I. 2024/32, reg. 3(a)(vi) 173 Duty to keep developments in energy sector under review The ISOP must keep under review developments relating to the energy sector that may be relevant to the carrying out of any of the ISOP’s functions. I197 S. 173 not in force at Royal Assent, see s. 334(1) I198 S. 173 in force at 31.1.2024 by S.I. 2024/32, reg. 3(a)(vi) Transfers, pensions and financial assistance (a) in Part 1, provision about transfer schemes relating to the ISOP; (b) in Part 2, related provision about transfers and other provision in connection with the designation of a person as the ISOP. I199 S. 174 in force at Royal Assent, see s. 334(2)(h)(ii) Schedule 10 contains provision about pension arrangements in connection with the I200 S. 175 in force at Royal Assent, see s. 334(2)(h)(ii) 176 Financial assistance for the ISOP (1) The Secretary of State may provide financial assistance to the ISOP. (2) Financial assistance under this section may be provided in any form and in particular (c) guarantee or indemnity, or

Part 5 – Independent System Operator and Planner Document 2024-10-14 This version of this Act contains provisions that are prospective. Changes to There are currently no known outstanding effects for the Energy Act 2023. (See end of Document for details) (d) the acquisition of shares or any other interest in, or securities of, a body (3) Financial assistance under this section may be provided subject to such conditions as the Secretary of State considers appropriate (which may include conditions about repayment with or without interest or other return). I201 S. 176 not in force at Royal Assent, see s. 334(1) I202 S. 176 in force at 31.1.2024 by S.I. 2024/32, reg. 3(a)(vii) (1) In section 7 of the Electricity Act 1989 (conditions of general), in (a) for “or a distribution licence” substitute “, a distribution licence or an electricity system operator licence”; (b) in paragraph (a), for “his charges for the transmission or distribution of electricity” substitute “the charges payable to the holder in connection with the transmission or distribution of electricity, or in connection with the exercise of any other functions under or by virtue of the licence,”; (c) in paragraph (b), for “licence holders” substitute “holders of licences under section 6 or under Part 1 of the Gas Act 1986”. (2) In section 9 of that Act (general duties of licence holders), after subsection (2A) “(2B) The conditions of a licence held by a person to which a duty imposed by subsection (1) or (2) applies may include a condition requiring the person, in performing the duty, to have regard to the interests of existing and future consumers in relation to gas conveyed through pipes (within the meaning of (3) In section 7B of the Gas Act 1986 (licences: general), in subsection (5)(b)— (a) after “section 7” insert “or 7AA”; (b) in sub-paragraph (i), for “his charges for the conveyance of gas” substitute “the charges payable to the holder in connection with the conveyance of gas, or in connection with the exercise of any other functions under or by virtue (c) in sub-paragraph (ii), for the words from “licences under” to “above” substitute “licences under this Part or under section 6 of the Electricity Act (4) In section 9 of that Act (general powers and duties of gas transporters), after “(2A) The conditions of a licence held by a gas transporter may include a condition requiring the gas transporter, in performing a duty under subsection (1), (1A) or (2), to have regard to the interests of existing and future consumers in relation to electricity conveyed by distribution systems or transmission systems (within the meaning of the Electricity Act 1989).”

Part 5 – Independent System Operator and Planner Document 2024-10-14 This version of this Act contains provisions that are prospective. Changes to There are currently no known outstanding effects for the Energy Act 2023. (See end of Document for details) I203 S. 177 not in force at Royal Assent, see s. 334(1) I204 S. 177 in force at 31.1.2024 by S.I. 2024/32, reg. 3(a)(vii) 178 Principal objective and general duties of Secretary of State and GEMA under (1) Sections 3A to 3D of the Electricity Act 1989 and sections 4AA to 4B of the Gas Act 1986 (principal objective and general duties) apply in relation to the functions of the Secretary of State under sections 162 and 167 as they apply in relation to functions under Part 1 of the Act in question.
(2) Where the Secretary of State or the GEMA has functions under section 169, 170 or 172 in relation to a licence under section 6(1) of the Electricity Act 1989, sections 3A to 3D of that Act apply in relation to those functions as they apply in relation to functions (3) Where the Secretary of State or the GEMA has functions under section 169, 170 or 172 in relation to a licence under section 7, 7ZA, 7A, 7AA, 7AB or 7AC of the Gas Act 1986, sections 4AA to 4B of that Act apply in relation to those functions as they apply in relation to functions under Part 1 of that Act. I205 S. 178(2)(3) in force at Royal Assent for specified purposes, see s. 334(2)(h)(iii) I206 S. 178(1) in force at 31.1.2024 by S.I. 2024/32, reg. 3(a)(viii) I207 S. 178(2)(3) in force at 31.1.2024 in so far as not already in force by S.I. 2024/32, reg. 3(a)(viii) 179 Minor and consequential amendments Schedule 11 contains further amendments to the Electricity Act 1989 and the Gas Act I208 S. 179 not in force at Royal Assent, see s. 334(1) I209 S. 179 in force at 31.1.2024 by S.I. 2024/32, reg. 3(a)(ix) “distribution system” has the same meaning as in Part 1 of the Electricity Act 1989 (see section 4(4) of that Act); “electricity system operator licence” has the meaning given by

Part 6 – Governance of gas and electricity industry codes Document 2024-10-14 This version of this Act contains provisions that are prospective. Changes to There are currently no known outstanding effects for the Energy Act 2023. (See end of Document for details) “gas” has the same meaning as in Part 1 of the Gas Act 1986 (see “relevant activity” has the meaning given by section 163(5); “relevant licence” means a licence for the purposes of section 4 of the Electricity Act 1989 or section 5 of the Gas Act 1986 (prohibitions on “transmission system” has the same meaning as in Part 1 of the Electricity Act 1989 (see section 4(4) of that Act). (2) References in this Part to the distribution, generation, supply or transmission of electricity are to be construed in accordance with section 4(4) of the Electricity Act (3) For the purposes of this Part, references to the ISOP’s functions are to any functions that are exercisable by the person for the time being designated as the ISOP (whether they are exercisable in the person’s capacity as the ISOP or in another capacity). I210 S. 180 in force at Royal Assent, see s. 334(2)(h)(iv) (1) Regulations under this Part are subject to the negative procedure. (2) Subsection (1) does not apply to regulations under paragraph 9 of Schedule 9. I211 S. 181 in force at Royal Assent, see s. 334(2)(h)(iv) (1) In this Part, “designated document” means a document that— (a) is maintained in accordance with the conditions of a relevant licence, and (b) is designated for the purposes of this Part by notice given by the Secretary (2) The designation of a document has effect from the time specified in the notice under (3) A notice under subsection (1)(b) must be published in such manner as the Secretary of State considers appropriate for bringing it to the attention of those likely to be affected

Part 6 – Governance of gas and electricity industry codes Document 2024-10-14 This version of this Act contains provisions that are prospective. Changes to There are currently no known outstanding effects for the Energy Act 2023. (See end of Document for details) (4) The Secretary of State may revoke the designation of a document under this section. (5) The Secretary of State may not designate a document, or revoke the designation of a document, except so as to give effect to a recommendation of the GEMA. (6) Before making a recommendation to the Secretary of State for the purposes of subsection (5), the GEMA must consult such persons as it considers appropriate. (7) Subsection (6) does not apply in relation to the designation of a document where, immediately before being designated, the document is (or is treated as) a qualifying document within the meaning of Schedule 12. I212 S. 182 not in force at Royal Assent, see s. 334(1) I213 S. 182 in force at 10.9.2024 by S.I. 2024/890, reg. 2(b)(i) 183 Meaning of “code manager” and “code manager licence” (1) In this Part, “code manager”, in relation to a designated document, means the holder of a code manager licence in respect of the document. (2) In this Part, “code manager licence” means a licence under section 7AC of the Gas Act 1986 or section 6(1)(g) of the Electricity Act 1989. (3) See sections 185 and 186, which contain amendments to the Gas Act 1986 and the Electricity Act 1989 in relation to the licences mentioned in subsection (2). I214 S. 183 not in force at Royal Assent, see s. 334(1) I215 S. 183 in force at 10.9.2024 by S.I. 2024/890, reg. 2(b)(i) 184 Designation of central systems (1) In this Part, “designated central system” means a central system that is designated for the purposes of this Part by notice given by the Secretary of State. (2) “Central system” means an information technology system which has one or both of (a) to support the operation of the provisions of one or more designated (b) to process, transmit or store data in connection with the operation of the provisions of one or more designated documents. (3) The designation of a central system has effect from the time specified in the notice (4) A notice under subsection (1) in relation to a central system must also specify the person (referred to in this Part as the “responsible body”) who is responsible, for the purposes of this Part, for operating or procuring the operation of the central system. Part 6 – Governance of gas and electricity industry codes Document 2024-10-14 This version of this Act contains provisions that are prospective.