Explanatory note

These Regulations make provision in connection with the offering by a carbon dioxide transport and storage counterparty designated under section 59(1) of the Energy Act 2023 (“the Act”) of contracts for carbon dioxide transport and storage (referred to in section 59(2) of the Act as “carbon dioxide transport and storage revenue support contracts”). Such contracts must be offered following a direction from the Secretary of State pursuant to section 60(1) of the Act.

Regulation 2 makes provision as to the form and content of directions made by the Secretary of State pursuant to section 60 of the Act. Regulation 3 makes provision as to when a direction ceases to have effect. Regulation 4 confers a power on the Secretary of State to revoke directions and sets out the procedure to be followed in such a case.

Regulation 5 contains requirements regarding the publication of carbon dioxide transport and storage revenue supports. Regulation 6 and the Schedule make provision for the creation and maintenance of a register of carbon dioxide transport and storage revenue support contracts. Regulation 7 contains requirements for a counterparty to notify the Secretary of State if it is, or is likely to be, unable to perform its obligations under or by virtue of the Act, regulations made under the Act or a carbon dioxide transport and storage revenue support contract.

An impact assessment was prepared for the Energy Act 2023 in relation to carbon dioxide transport and storage, and is available from the Department for Energy Security and Net Zero at 3-8 Whitehall Place, London, SW1A 2EG and is published at https://bills.parliament.uk/publications/47261/documents/2122.