{
  "url": "https://openlegislation.uk/energy-act-2023/section-214",
  "json_url": "https://openlegislation.uk/energy-act-2023/section-214.json",
  "legislation": "ukpga/2023/52",
  "legislation_title": "Energy Act 2023",
  "legislation_url": "https://openlegislation.uk/energy-act-2023",
  "path": "section/214",
  "kind": "section",
  "number": "214",
  "heading": "Payment as alternative to complying with certain energy company obligations",
  "text": "(1) In section 33BC of the Gas Act 1986 (promotion of reductions in carbon emissions: gas transporters and gas suppliers), after subsection (7B) insert—\n“(7C) The order may make provision as to circumstances in which a transporter or supplier may meet the whole or any part of a carbon emissions reduction target by making a buy-out payment.\n(7D) In this section, “buy-out payment” means a payment—\n(a) of an amount (“the buy-out price”) determined by the Secretary of State,\n(b) to a person approved by the Administrator (an “approved person”),\n(c) for a purpose approved by the Administrator (an “approved purpose”).\n(7E) Provision made by virtue of subsection (7C) may include provision about the determination by the Secretary of State of the buy-out price, including provision—\n(a) enabling the Secretary of State to set different buy-out prices—\n(i) for different parts of the period to which the order relates;\n(ii) for different cases (including different buy-out prices for different transporters or suppliers);\n(b) requiring the Secretary of State to publish the buy-out price.\n(7F) If the order makes provision by virtue of subsection (7C), the order may also make provision—\n(a) as to the procedure to be followed by the Administrator in approving a person as an approved person or a purpose as an approved purpose;\n(b) specifying criteria by reference to which the Administrator is to determine whether to approve a person or purpose.\n(7G) Provision made by virtue of subsection (7C) may include further provision about buy-out payments, including in particular provision—\n(a) as to the procedure to be followed by a transporter or supplier who proposes to make a buy-out payment, including provision—\n(i) requiring a transporter or supplier to notify the Administrator of specified matters by a specified time;\n(ii) as to circumstances in which a transporter or supplier must make the buy-out payment to which notification given to the Administrator relates;\n(iii) about the process for seeking approval of a person as an approved person, or of a purpose as an approved purpose;\n(b) preventing a transporter or supplier from treating a buy-out payment as a payment pursuant to any other obligation (whether statutory or contractual), or vice versa;\n(c) setting out circumstances in which a requirement imposed on a transporter or supplier by provision made by virtue of subsection (5)(ba) or (bb) may be—\n(i) met, in whole or in part, by the making of a buy-out payment;\n(ii) varied as a result of a buy-out payment;\n(d) about the effect of provision included in the order by virtue of subsection (7)(c) to (e) on a person’s ability to meet the whole or any part of a carbon emissions reduction target by making a buy-out payment.\n(7H) Where an order includes provision for the making of a buy-out payment, the references in subsections (5)(be) and (7)(b) to action include a reference to the making of a buy-out payment.”\n(2) In section 33BCA of the Gas Act 1986 (Scottish Ministers’ promotion of reductions in carbon emissions: gas suppliers)—\n(a) in subsection (3)—\n(i) in paragraph (b), after “(7)(a)” insert “, (7C), (7E)”;\n(ii) after paragraph (c) insert—\n“(ca) in subsection (7F), for “order makes” is substituted “Secretary of State has made”;\n(cb) in subsection (7G), for “(7C)” is substituted “(7F)”;\n(cc) in subsection (7H), for “an order includes” is substituted “the Secretary of State has made”;”;\n(iii) in paragraph (g), after “place” insert “other than in subsection (7D)(a)”;\n(b) in subsection (9)(a), for “or (7)(a)” substitute “, (7)(a), (7C) or (7E)”.\n(3) In section 33BDA of the Gas Act 1986 (Scottish Ministers’ promotion of reductions in home-heating costs: gas suppliers)—\n(a) in subsection (3)—\n(i) in paragraph (c), after “(7)(a)” insert “, (7C), (7E)”;\n(ii) after paragraph (d) insert—\n“(da) in section 33BC(7F) as applied by subsection (4), for “order makes” is substituted “Secretary of State has made”;\n(db) in section 33BC(7G) as applied by subsection (4), for “(7C)” is substituted “(7F)”;\n(dc) in section 33BC(7H) as applied by subsection (4), for “an order includes” is substituted “the Secretary of State has made”;”;\n(iii) in paragraph (h), after “subsection (4)” insert “other than in section 33BC(7D)(a)”;\n(b) in subsection (9)(b), for “or (7)(a)” substitute “(7)(a), (7C) or (7E)”.\n(4) In section 41A of the Electricity Act 1989 (promotion of reductions in carbon emissions: electricity distributors and electricity suppliers), after subsection (7B) insert—\n“(7C) The order may make provision as to circumstances in which a distributor or supplier may meet the whole or any part of a carbon emissions reduction target by making a buy-out payment.\n(7D) In this section, “buy-out payment” means a payment—\n(a) of an amount (“the buy-out price”) determined by the Secretary of State,\n(b) to a person approved by the Administrator (an “approved person”),\n(c) for a purpose approved by the Administrator (an “approved purpose”).\n(7E) Provision made by virtue of subsection (7C) may include provision about the determination by the Secretary of State of the buy-out price, including provision—\n(a) enabling the Secretary of State to set different buy-out prices—\n(i) for different parts of the period to which the order relates;\n(ii) for different cases (including different buy-out prices for different distributors or suppliers);\n(b) requiring the Secretary of State to publish the buy-out price.\n(7F) If the order makes provision by virtue of subsection (7C), the order may also make provision—\n(a) as to the procedure to be followed by the Administrator in approving a person as an approved person or a purpose as an approved purpose;\n(b) specifying criteria by reference to which the Administrator is to determine whether to approve a person or purpose.\n(7G) Provision made by virtue of subsection (7C) may include further provision about buy-out payments, including in particular provision—\n(a) as to the procedure to be followed by a distributor or supplier who proposes to make a buy-out payment, including provision—\n(i) requiring a distributor or supplier to notify the Administrator of specified matters by a specified time;\n(ii) as to circumstances in which a distributor or supplier must make the buy-out payment to which notification given to the Administrator relates;\n(iii) about the process for seeking approval of a person as an approved person, or of a purpose as an approved purpose;\n(b) preventing a distributor or supplier from treating a buy-out payment as a payment pursuant to any other obligation (whether statutory or contractual), or vice versa;\n(c) setting out circumstances in which a requirement imposed on a distributor or supplier by provision made by virtue of subsection (5)(ba) or (bb) may be—\n(i) met, in whole or in part, by the making of a buy-out payment;\n(ii) varied as a result of a buy-out payment;\n(d) about the effect of provision included in the order by virtue of subsection (7)(c) to (e) on a person’s ability to meet the whole or any part of a carbon emissions reduction target by making a buy-out payment.\n(7H) Where an order includes provision for the making of a buy-out payment, the references in subsections (5)(be) and (7)(b) to action include a reference to the making of a buy-out payment.”\n(5) In section 41AA of the Electricity Act 1989 (Scottish Ministers’ promotion of reductions in carbon emissions: electricity suppliers)—\n(a) in subsection (3)—\n(i) in paragraph (b), after “(7)(a)” insert “, (7C), (7E)”;\n(ii) after paragraph (c) insert—\n“(ca) in subsection (7F), for “order makes” is substituted “Secretary of State has made”;\n(cb) in subsection (7G), for “(7C)” is substituted “(7F)”;\n(cc) in subsection (7H), for “an order includes” is substituted “the Secretary of State has made”;”;\n(iii) in paragraph (g), after “place” insert “other than in subsection (7D)(a)”;\n(b) in subsection (9)(a), for “or (7)(a)” substitute “, (7)(a), (7C) or (7E)”.\n(6) In subsection 41BA of the Electricity Act 1989 (Scottish Ministers’ promotion of reductions in home-heating costs: electricity suppliers)—\n(a) in subsection (3)—\n(i) in paragraph (c), after “(7)(a)” insert “, (7C), (7E)”;\n(ii) after paragraph (d) insert—\n“(da) in section 41A(7F) as applied by subsection (4), for “order makes” is substituted “Secretary of State has made”;\n(db) in section 41A(7G) as applied by subsection (4), for “(7C)” is substituted “(7F)”;\n(dc) in section 41A(7H) as applied by subsection (4), for “an order includes” is substituted “the Secretary of State has made”;”;\n(iii) in paragraph (h), after “subsection (4)” insert “other than in section 41A(7D)(a)”;\n(b) in subsection (9)(b), for “or (7)(a)” substitute “, (7)(a), (7C) or (7E)”.",
  "extent": "E+W+S",
  "status": null,
  "version": "current",
  "annotations": [
    {
      "type": "I",
      "label": "I1",
      "text": "S. 214 in force at 26.12.2023, see s. 334(3)(g)"
    }
  ],
  "outstanding_effects": [],
  "provenance": {
    "source": "legislation.gov.uk",
    "source_url": "https://www.legislation.gov.uk/ukpga/2023/52/section/214",
    "retrieved_at": "2026-10-29T08:50:44.989649+00:00"
  },
  "licence": "Open Government Licence v3.0",
  "licence_url": "https://www.nationalarchives.gov.uk/doc/open-government-licence/version/3/",
  "attribution": "Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives."
}