Explanatory note

These Regulations are made further to the powers contained in Chapter 2 (contracts for difference) of Part 2 (electricity market reform) of the Energy Act 2013 (c. 32)(“the Act”).

These Regulations amend the Electricity Market Reform (General) Regulations 2014 (S.I. 2014/2013)(“the General Regulations”).

Regulation 2 inserts new definitions into regulation 2 of the General Regulations which set out the matters to which arrangements under regulation 16 relate. Regulation 2 also inserts a Part 5 in the General Regulations. Part 5 inserts new regulation 16 and 17 into the General Regulations. New regulation 16 enables the Authority and a CFD counterparty (or the Secretary of State in the case of an investment contract which has not been transferred to a CFD counterparty) to enter into arrangements for advice (including information and analysis) in respect of sustainability and fuel measuring and sampling provisions in CFDs and retained investment contracts. By new regulation 17, investment contracts which have been transferred to a CFD counterparty by virtue of paragraph 16(1) of Schedule 2 to the Act to be treated as CFDs.

A full impact assessment of the effect the CFD regime will have on the costs of business and the voluntary sector is available from the Department of Energy and Climate Change at 3 Whitehall Place, London, SW1A 2AW and is published with the Explanatory Memorandum alongside this instrument on www.legislation.gov.uk.