OpenLegislation

Energy Prices Act 2022 in Wales

2022 c. 44 · Enacted 25 October 2022 · Extends to United Kingdom

Up to date with all changes known to legislation.gov.uk, revised to 24 October 2026.

An Act to make provision for controlling energy prices; to encourage the efficient use and supply of energy; and for other purposes connected to the energy crisis.

[25th October 2022]

Be it enacted by the King’s most Excellent Majesty, by and with the advice and consent of the Lords Spiritual and Temporal, and Commons, in this present Parliament assembled, and by the authority of the same, as follows:—

Contents

  1. Reduction of domestic energy bills in England, Wales and Scotland
  2. 1Domestic energy price reduction schemes for Great Britain
  3. 2GB electricity scheme: supplementary provision
  4. 3GB gas scheme: supplementary provision
  5. 4Interpretation of sections 1 to 3
  6. Reduction of non-domestic energy bills in England, Wales and Scotland
  7. 9Reduced energy charges for non-domestic customers in Great Britain
  8. 10Interpretation of section 9 and Schedule 1
  9. Support for meeting energy costs etc
  10. 13Power of the Secretary of State to give support for meeting energy costs etc
  11. 14Procedure and reporting in connection with section 13
  12. 15Role of other bodies in giving support for meeting energy costs etc
  13. Reducing the price of electricity
  14. 16Temporary requirement for electricity generators to make payments
  15. 17Power to require information in connection with regulations under section 16
  16. 18Contracts for difference
  17. Passing on the benefits of reductions and other support
  18. 19Requirement to pass on energy price support to end users
  19. The domestic energy tariff cap
  20. 20Domestic gas and electricity tariff cap
  21. Regulation of energy markets
  22. 21Power of the Secretary of State to modify energy licences etc
  23. 22Power of Secretary of State to give directions
  24. Final provisions
  25. 25Time limits on exercise of certain powers under this Act
  26. 26Regulations
  27. 27Consequential provision etc
  28. 28Interpretation
  29. 29Application to the Crown
  30. 30Extent, commencement and short title
  31. Schedule 1: Non-domestic relief regulations for Great Britain
  32. 1Introduction
  33. 2Application of GB non-domestic relief regulations
  34. 3Delegation
  35. 4Powers and duties
  36. 5Modification of contracts
  37. 6Enforcement
  38. 7Exclusion of liability
  39. 8Avoidance of abuse or unreasonable reliance on support schemes
  40. 9Financially disadvantaged customers
  41. Schedule 3: Domestic Gas and Electricity (Tariff Cap) Act 2018
  42. 1Amendments to 2018 Act
  43. 2Amendments to 2018 Act
  44. 3Amendments to 2018 Act
  45. 4Amendments to 2018 Act
  46. 5Amendments to 2018 Act
  47. 6Amendments to 2018 Act
  48. 7Amendments to 2018 Act
  49. 8Amendments to 2018 Act
  50. 9Transitional provision
  51. Schedule 6: Time limits on the exercise of certain powers under this Act
  52. 1Domestic electricity price reduction schemes for Great Britain
  53. 2Domestic gas price reduction schemes for Great Britain
  54. 3Domestic electricity price reduction schemes for Northern Ireland
  55. 4Domestic gas price reduction schemes for Northern Ireland
  56. 5Reduced energy charges for non-domestic customers in Great Britain
  57. 6Reduced energy charges for non-domestic customers in Northern Ireland
  58. 7Power of the Secretary of State to give support for meeting energy costs etc
  59. 8Temporary requirement for electricity generators to make payments
  60. 9Extension of certain periods
  61. Schedule 7: Amendments of legislation
  62. Part 1: Acts of Parliament
  63. 1Gas Act 1986
  64. 2Electricity Act 1989
  65. 3Utilities Act 2000
  66. 4Utilities Act 2000
  67. 5Utilities Act 2000
  68. 6Utilities Act 2000
  69. Part 2: Northern Ireland legislation
  70. 7Energy (Northern Ireland) Order 2003
  71. 8Energy (Northern Ireland) Order 2003
  72. 9Energy (Northern Ireland) Order 2003
  73. 10Energy (Northern Ireland) Order 2003
  74. 11Energy (Northern Ireland) Order 2003
  75. 12Energy (Northern Ireland) Order 2003
  76. 13The Electricity (Single Wholesale Market) (Northern Ireland) Order 2007
  77. 14The Electricity (Single Wholesale Market) (Northern Ireland) Order 2007
  78. 15The Electricity (Single Wholesale Market) (Northern Ireland) Order 2007

1Domestic energy price reduction schemes for Great BritainI1 E+W+S

(1)

The Secretary of State may establish a domestic electricity price reduction scheme for Great Britain.

(2)

A “domestic electricity price reduction scheme for Great Britain” is a scheme (including any other related arrangements) that makes provision for and in connection with—

(a)

reducing the amount that would otherwise be charged for GB domestic electricity supply by licensed electricity suppliers who are parties to the scheme, and

(b)

making payments to those suppliers in respect of those reductions in charges.

(3)

The Secretary of State may establish a domestic gas price reduction scheme for Great Britain.

(4)

A “domestic gas price reduction scheme for Great Britain” is a scheme (including any other related arrangements) that makes provision for and in connection with—

(a)

reducing the amount that would otherwise be charged for GB domestic gas supply by licensed gas suppliers who are parties to the scheme, and

(b)

making payments to those suppliers in respect of those reductions in charges.

(5)

A domestic electricity or gas price reduction scheme for Great Britain may, in particular, provide for the amount charged to be reduced by an amount calculated by reference to the difference between—

(a)

charges that would be made if the scheme were not applicable, and

(b)

an amount specified in, or in accordance with, the scheme.

(6)

The Secretary of State may modify or revoke a domestic electricity or gas price reduction scheme for Great Britain.

(7)

But if the scheme includes provision about modification or revocation of the scheme, the Secretary of State’s power to modify or revoke it is subject to that provision.

(8)

Any such provision of the scheme does not prevent the Secretary of State from modifying the scheme if—

(a)

the Secretary of State considers that a licensed electricity supplier or licensed gas supplier may make, or has made, arrangements whose primary purpose is to increase payments to the supplier under the scheme, and

(b)

the purpose of the modification of the scheme is to prevent the increased payments or require repayment of increased payments.

(9)

For provision about time limits on the exercise of the powers conferred by this section, see Schedule 6.

2GB electricity scheme: supplementary provisionI1 E+W+S

(1)

This section—

(a)

applies in relation to a domestic electricity price reduction scheme for Great Britain that is designated for the purposes of this section in regulations made by the Secretary of State (the “designated scheme”); and

(b)

applies in relation to the designated scheme as it has effect from time to time.

(2)

A licensed electricity supplier who provides GB domestic electricity supply—

(a)

must take all reasonable steps to become a party to the designated scheme as soon as is reasonably practicable;

(b)

must, after becoming a party to the designated scheme, remain a party unless and until it ceases to be a party in accordance with the terms of the designated scheme;

(c)

must, while a party to the designated scheme, comply with the terms of the designated scheme that are applicable to it.

(3)

The Secretary of State must publish the designated scheme (as it has effect from time to time), so far as the Secretary of State considers it appropriate to do so.

(4)

The provision made by paragraph 6(g) of Schedule 6A to the Electricity Act 1989 (enforcement by GEMA) does not prevent any other remedy from being pursued or obtained in respect of non-compliance with the terms of the designated scheme (including any remedy in the law of contract).

(5)

The Secretary of State is not liable in the law of contract for things done or omitted in the performance or purported performance of the terms of the designated scheme, unless the liability relates to payment of an amount under the scheme.

(6)

A domestic electricity price reduction scheme for Great Britain that was established before section 1(1) came into force otherwise than in accordance with that section (a “pre-commencement scheme”) may be designated for the purposes of this section.

(7)

But no action may be taken in reliance on paragraph 6(g) of Schedule 6A to the Electricity Act 1989 in relation to non-compliance with a pre-commencement scheme that is designated if or to the extent that the non-compliance occurred before the scheme is designated.

(8)

Regulations under this section are subject to the negative procedure.

3GB gas scheme: supplementary provisionI1 E+W+S

(1)

This section—

(a)

applies in relation to a domestic gas price reduction scheme for Great Britain that is designated for the purposes of this section in regulations made by the Secretary of State (the “designated scheme”); and

(b)

applies in relation to the designated scheme as it has effect from time to time.

(2)

A licensed gas supplier who provides GB domestic gas supply—

(a)

must take all reasonable steps to become a party to the designated scheme as soon as is reasonably practicable;

(b)

must, after becoming a party to the designated scheme, remain a party unless and until it ceases to be a party in accordance with the terms of the designated scheme;

(c)

must, while a party to the designated scheme, comply with the terms of the designated scheme that are applicable to it.

(3)

A gas shipper must apply to become a party to the designated scheme if—

(a)

that gas shipper receives from another party to the designated scheme a written request to become a party, and

(b)

the designated scheme would not operate effectively if that gas shipper was not a party;

and the gas shipper must make that application as soon as reasonably practicable after receiving the request.

(4)

A gas shipper—

(a)

must, after becoming a party to the designated scheme, remain a party unless and until it ceases to be a party in accordance with the terms of the designated scheme;

(b)

must, while a party to the designated scheme, comply with the terms of the designated scheme that are applicable to it.

(5)

The Secretary of State must publish the designated scheme (as it has effect from time to time), so far as the Secretary of State considers it appropriate to do so.

(6)

The provision made by paragraph 4(f) of Schedule 4B to the Gas Act 1986 (enforcement by GEMA) does not prevent any other remedy from being pursued or obtained in respect of non-compliance with the terms of the designated scheme (including any remedy in the law of contract).

(7)

The Secretary of State is not liable in the law of contract for things done or omitted in the performance or purported performance of the terms of the designated scheme, unless the liability relates to payment of an amount under the scheme.

(8)

A domestic gas price reduction scheme for Great Britain that was established before section 1(3) came into force otherwise than in accordance with that section (a “pre-commencement scheme”) may be designated for the purposes of this section.

(9)

But no action may be taken in reliance on paragraph 4(f) of Schedule 4B to the Gas Act 1986 in relation to non-compliance with a pre-commencement scheme that is designated if or to the extent that the non-compliance occurred before the scheme is designated.

(10)

Regulations under this section are subject to the negative procedure.

4Interpretation of sections 1 to 3I1 E+W+S

(1)

This section applies for the purposes of sections 1 to 3 and this section.

Expressions relating to electricity

(2)

A “licensed electricity supplier” is a person who holds an electricity supply licence.

(3)

An “electricity supply licence” is a licence granted under section 6(1)(d) of the Electricity Act 1989.

(4)

“GB domestic electricity supply” is the supply of electricity to premises that are domestic premises for the purposes of the relevant standard conditions (as they have effect from time to time).

(5)

In subsection (4) “relevant standard conditions” are the conditions which are, by virtue of section 33(1) of the Utilities Act 2000, the standard conditions for the purposes of electricity supply licences.

Expressions relating to gas

(6)

A “licensed gas supplier” is a person who holds a gas supply licence.

(7)

A “gas supply licence” is a licence granted under section 7A(1) of the Gas Act 1986.

(8)

“Gas shipper” has the same meaning as in Part 1 of the Gas Act 1986 (see section 7A(11) of that Act).

(9)

“GB domestic gas supply” is the supply of gas to premises that are domestic premises for the purposes of the relevant standard conditions (as they have effect from time to time).

(10)

In subsection (9) “relevant standard conditions” are the conditions which are, by virtue of section 81(2) of the Utilities Act 2000, the standard conditions for the purposes of gas supply licences.

Other expressions

(11)

A reference to a charge for GB domestic electricity supply or GB domestic gas supply includes a reference to a charge that does not relate to electricity or gas supplied (such as a standing charge).

9Reduced energy charges for non-domestic customers in Great BritainI1 E+W+S

(1)

The Secretary of State may, by regulations, make provision for and in connection with—

(a)

reducing the amounts that would otherwise be charged for GB non-domestic electricity supply by licensed electricity suppliers, and

(b)

making payments to those suppliers in respect of those reductions.

(2)

The Secretary of State may, by regulations, make provision for and in connection with—

(a)

reducing the amounts that would otherwise be charged for GB non- domestic gas supply by licensed gas suppliers, and

(b)

making payments to those suppliers in respect of those reductions.

(3)

Regulations under this section may, in particular, provide for reductions in amounts charged to be calculated by reference to the difference between—

(a)

the wholesale price paid for electricity or gas, as a component of the amounts that would otherwise be charged for the supply of electricity or gas, and

(b)

a notional wholesale price, if it is lower than the wholesale price paid.

(4)

If the regulations make such provision, they may in particular—

(a)

provide for—

(i)

the wholesale price paid to be the actual wholesale price paid or a wholesale price treated as paid, and

(ii)

that wholesale price to be specified in or under the regulations, or determined in accordance with the regulations;

(b)

provide for the notional wholesale price to be specified in or under the regulations, or determined in accordance with the regulations.

(5)

The Secretary of State may review the operation of regulations under this section.

(6)

Regulations under this section are subject to the affirmative procedure.

(7)

Schedule 1 describes particular kinds of provision that may be made by regulations under this section.

(8)

For provision about time limits on the exercise of the powers conferred by this section, see Schedule 6.

10Interpretation of section 9 and Schedule 1I1 E+W+S

(1)

This section applies for the purposes of section 9, this section and Schedule 1.

Expressions relating to electricity

(2)

A “licensed electricity supplier” is a person who holds an electricity supply licence.

(3)

An “electricity supply licence” is a licence granted under section 6(1)(d) of the Electricity Act 1989.

(4)

“GB non-domestic electricity supply” is the supply of electricity to premises that are non-domestic premises for the purposes of the relevant standard conditions (as they have effect from time to time).

(5)

In subsection (4) “relevant standard conditions” are the conditions which are, by virtue of section 33(1) of the Utilities Act 2000, the standard conditions for the purposes of electricity supply licences.

Expressions relating to gas

(6)

A “licensed gas supplier” is a person who holds a gas supply licence.

(7)

A “gas supply licence” is a licence granted under section 7A(1) of the Gas Act 1986.

(8)

“GB non-domestic gas supply” is the supply of gas to premises that are non-domestic premises for the purposes of the relevant standard conditions (as they have effect from time to time).

(9)

In subsection (8) “relevant standard conditions” are the conditions which are, by virtue of section 81(2) of the Utilities Act 2000, the standard conditions for the purposes of gas supply licences.

13Power of the Secretary of State to give support for meeting energy costs etcI1

(1)

The Secretary of State may take such steps as the Secretary of State considers appropriate to—

(a)

provide support for meeting costs related to the use of energy;

(b)

enable or encourage the efficient use of energy;

(c)

provide support for meeting costs related to the supply of energy;

(d)

enable or encourage the supply of energy.

(2)

The Secretary of State may take such other steps as the Secretary of State considers appropriate in response to the energy crisis.

(3)

The steps that may be taken under the powers conferred by subsections (1) and (2) include—

(a)

giving financial assistance (whether directly or indirectly and whether subject to conditions or not);

(b)

acquiring, making available or otherwise enabling access to energy or relevant infrastructure (including by entering into contracts);

(c)

steps in respect of particular descriptions of households, persons or premises;

(d)

dealing with any costs or matters incidental to the exercise of those powers (whether those costs or matters fall to the Secretary of State or another).

(4)

In subsection (3)(b) “relevant infrastructure” means infrastructure related to the supply or use of energy.

(5)

Steps of a kind—

(a)

described in subsection (1) or (2), and

(b)

taken by the Secretary of State on or after 1 January 2022 but before the coming into force of this section,

are, to the extent that they are not authorised by a power of the Secretary of State arising under any other legislation, authorised by subsection (1) or (2) (as appropriate).

(6)

Nothing in this section limits a power of the Secretary of State arising under any other legislation or otherwise.

(7)

For provision about time limits on the exercise of the powers conferred by this section, see Schedule 6.

14Procedure and reporting in connection with section 13I1

(1)

The power conferred by section 13(2) is exercisable only in accordance with subsections (2) to (4).

(2)

Expenditure to be incurred by the Secretary of State—

(a)

in consequence of an exercise of the power conferred by section 13(2), and

(b)

in connection with any one project,

must not exceed £100 million unless the expenditure in excess of that sum is authorised by a resolution of the House of Commons before the power is exercised.

(3)

But subsection (2) does not apply if the Secretary of State is satisfied that the exercise of the power is urgent and that it is not reasonably practicable to obtain the approval of the House of Commons for the connected expenditure before doing so.

(4)

In such circumstances, the Secretary of State must, as soon as reasonably practicable, lay a statement concerning that expenditure before Parliament.

(5)

As soon as reasonably practicable after the end of any quarter in which a power conferred by section 13 is exercised or expenditure is incurred by the Secretary of State in consequence of the exercise of such a power, the Secretary of State must lay before Parliament a report stating the amount of, and containing such other details as the Secretary of State considers appropriate about—

(a)

expenditure incurred by the Secretary of State in that quarter in consequence of the exercise of the powers conferred by section 13,

(b)

expenditure incurred by the Secretary of State in consequence of the exercise of those powers from the time when this Act came into force until the end of that quarter, and

(c)

expenditure expected to be incurred by the Secretary of State in the future in consequence of the exercise of those powers, both during that quarter and during previous quarters.

(6)

In subsection (5) “quarter” means a period of three months ending at the end of March, June, September or December.

15Role of other bodies in giving support for meeting energy costs etcI1

(1)

A designated body may take action in support of a step taken under section 13 (a “relevant step”).

(2)

The Secretary of State may, by regulations, make provision about designated bodies taking action in support of relevant steps.

(3)

The regulations may, in particular, make provision in connection with designated bodies—

(a)

receiving financial assistance,

(b)

distributing and otherwise managing financial assistance,

(c)

monitoring and accounting for financial assistance,

(d)

recovering and returning financial assistance, and

(e)

providing information.

(4)

The regulations may—

(a)

make provision about how designated bodies are to take action in support of relevant steps, and

(b)

provide for the giving of guidance about how such actions are to be taken.

(5)

Subsection (1) applies to action taken by a designated body—

(a)

on or after 1 January 2022 but before the coming into force of this section, and

(b)

in support of a step taken by the Secretary of State during that period and of a kind described in section 13(1) or (2),

as it does to action taken by a designated body (in support of a step taken under section 13) on or after the coming into force of this section.

(6)

The power of the Secretary of State to deal with costs or matters incidental to the exercise of the powers conferred by section 13 includes dealing with costs or matters arising under this section.

(7)

A “designated body” is—

(a)

a local authority;

(b)

a person who is a heat supplier within the meaning of the Heat Network (Metering and Billing) Regulations 2014 (S.I. 2014/3120) or who otherwise supplies and charges for the supply of heating, cooling or hot water to a building or persons in a building;

(c)

any other body or person established by or under any primary legislation or subordinate legislation and designated, in regulations made by the Secretary of State, for the purposes of this section.

(8)

Regulations under subsection (2) or (7) are subject to the negative procedure.

(9)

In this section “local authority” means—

(a)

a county council in England,

(b)

a district council for an area in England for which there is no county council,

(c)

a combined authority established under section 103 of the Local Democracy, Economic Development and Construction Act 2009,

(d)

the Greater London Authority,

(e)

a London borough council,

(f)

the Common Council of the City of London,

(g)

the Council of the Isles of Scilly,

(h)

a county council in Wales,

(i)

a county borough council in Wales,

(j)

a corporate joint committee established by regulations made under Part 5 of the Local Government and Elections (Wales) Act 2021,

(k)

a council constituted under section 2 of the Local Government etc. (Scotland) Act 1994,

(l)

a community council in Scotland,

(m)

a district council in Northern Ireland.

16Temporary requirement for electricity generators to make paymentsI1

(1)

The Secretary of State may, for a purpose mentioned in subsection (2), make regulations for, and in connection with, requiring periodic payments to be made to a payment administrator by—

(a)

specified electricity generators,

(b)

electricity generators that are of a specified description, or

(c)

electricity generators that are designated by the Secretary of State in accordance with the regulations.

(2)

The purposes are—

(a)

the purpose of enabling a payment administrator to obtain funds for paying to electricity suppliers in connection with reducing the cost to customers of electricity;

(b)

the purpose of enabling a payment administrator to obtain funds for meeting expenditure incurred or to be incurred by the Secretary of State in reducing the cost to customers of electricity.

(3)

Regulations under this section may include—

(a)

provision about the method by which the amount of a periodic payment is to be calculated;

(b)

provision for determining the time at which a periodic payment is to be made;

(c)

provision requiring the making of an advance payment in respect of a potential liability to make a periodic payment and about balancing payments;

(d)

provision about interest on a late payment and penalties for a late payment;

(e)

provision for a payment, interest or a penalty to be recoverable by a payment administrator as a civil debt;

(f)

provision for amounts received by a payment administrator to be paid by the payment administrator to electricity suppliers or into the Consolidated Fund;

(g)

provision imposing on an electricity supplier that receives a payment from a payment administrator a requirement to secure that customers of the electricity supplier receive, by a specified time, such benefit from the payment as may be specified or determined in accordance with the regulations;

(h)

provision for amounts received by a payment administrator to be retained by the payment administrator to meet expenditure incurred by the payment administrator in exercising functions under the regulations;

(i)

provision conferring functions in connection with the application, monitoring or enforcement of the regulations on the Secretary of State, a payment administrator, GEMA, the Northern Ireland Regulator or any other person;

(j)

provision conferring functions in connection with the application, monitoring or enforcement of the regulations on a person designated by the Secretary of State in accordance with the regulations;

(k)

provision conferring powers on any person to require information for the purpose of exercising their functions under the regulations;

(l)

provision for anything which is to be calculated or determined under the regulations to be calculated or determined by such persons, in accordance with such procedure and by reference to such matters and to the opinion of such persons, as may be specified in the regulations;

(m)

provision for an appeal against a calculation, determination or other decision made under the regulations;

(n)

provision to deal with the consequences of, or to prohibit or otherwise regulate, transactions or arrangements that undermine the effectiveness of the regulations.

(4)

The provision made by virtue of subsection (3)(a) must require the amount of a periodic payment to be calculated by reference to the quantity of electricity generated during the period in question by the relevant generating station with which the electricity generator is concerned.

(5)

The provision made by virtue of subsection (3)(i) may include provision conferring a power on the Secretary of State to direct that an electricity generator specified in, or of a description specified in, the direction is not liable to make further payments under the regulations.

(6)

The provision made by virtue of subsection (3)(i) may include provision for requirements imposed on a person by the regulations to be enforceable—

(a)

by GEMA—

(i)

as if they were relevant requirements for the purposes of section 25 of the Electricity Act 1989, and

(ii)

as if the person were a regulated person for the purposes of that section (if that is not in fact the case);

(b)

by the Northern Ireland Regulator—

(i)

as if they were relevant requirements for the purposes of Article 41A of the Energy (Northern Ireland) Order 2003 (S.I. 2003/419 (N.I. 6)), and

(ii)

as if the person were a regulated person for the purposes of that Article (if that is not in fact the case).

(7)

The first regulations under this section are subject to the affirmative procedure.

(8)

Any other regulations under this section are subject to the negative procedure.

(9)

For provision imposing a time limit relevant to the exercise of the powers conferred by this section, see Schedule 6.

(10)

In this section—

  • “electricity generator” means a person who owns or has any interest in a relevant generating station; and a reference to the relevant generating station with which an electricity generator is concerned is to be read accordingly;

  • “electricity supplier” means a person who is a holder of a licence to supply electricity under—

    1. (a)

      section 6(1)(d) of the Electricity Act 1989, or

    2. (b)

      Article 10(1)(c) of the Electricity (Northern Ireland) Order 1992 (S.I. 1992/231 (N.I. 1);

  • “generating station” means a station which generates electricity or any part of such a station;

  • “payment administrator” means a person specified as a payment administrator for the purposes of regulations under this section;

  • “relevant generating station” means a generating station—

    1. (a)

      in respect of which no contract for difference has effect under Chapter 2 of Part 2 of the Energy Act 2013 (ignoring any contract for difference under which no payments have begun to fall due), and

    2. (b)

      that is not an accredited FIT installation within the meaning of the Feed-in Tariffs Order 2012 (S.I. 2012/2782);

  • “specified”, except in subsection (5), means specified in regulations under this section.

17Power to require information in connection with regulations under section 16I1

(1)

The Secretary of State may direct an electricity generator to provide the Secretary of State with such specified information as the Secretary of State may reasonably require in connection with the making of regulations under section 16.

(2)

A direction under this section must be in writing.

(3)

An electricity generator to whom a direction is given under this section must, so far as reasonably practicable, provide the Secretary of State with the specified information—

(a)

within the specified period, and

(b)

in the specified form and manner.

(4)

A direction under this section is enforceable by the Secretary of State in civil proceedings—

(a)

for an injunction,

(b)

for specific performance of a statutory duty under section 45 of the Court of Session Act 1988, or

(c)

for any other appropriate remedy or relief.

(5)

In this section—

  • “electricity generator” has the same meaning as in section 16;

  • “information” includes documents;

  • “specified” means specified in the direction.

18Contracts for differenceI1

(1)

The Energy Act 2013 is amended as follows.

(2)

In section 6 (power to make regulations about contracts for difference for the purpose of encouraging low carbon electricity generation)—

(a)

after subsection (1) insert—

“(1A)

The reference in subsection (1) to encouraging low carbon electricity generation includes encouraging the continuation of, or an increase in, low carbon electricity generation by existing generating stations.”, and

(b)

in subsection (8), after paragraph (a) insert—

“(aa)

the first regulations made after the passing of the Energy Prices Act 2022 which make provision falling within each of the sections mentioned in paragraph (a);”.

(3)

In section 7 (designation of a CFD counterparty), in subsection (5), omit the words from “, but only” to the end.

(4)

In section 17 (payments to electricity suppliers), after subsection (2) insert—

“(2A)

Regulations may make provision imposing on an electricity supplier who receives a payment from a CFD counterparty a requirement to secure that customers of the electricity supplier receive, by a time specified in the regulations, such benefit from the payment as may be specified in or determined in accordance with the regulations.”

(5)

In section 19 (information and advice)—

(a)

in subsection (2)—

(i)

in paragraph (c), after “the Northern Ireland system operator” insert “, an electricity supplier”,

(ii)

after paragraph (c) insert—

“(ca)

for the Authority to require information to be provided to it by a CFD counterparty or electricity suppliers;

(cb)

for the Northern Ireland Authority for Utility Regulation to require information to be provided to it by a CFD counterparty or electricity suppliers;”, and

(iii)

in paragraph (e), after “to it by” insert “the Authority, the Northern Ireland Authority for Utility Regulation,”, and

(b)

in subsection (4), at the beginning insert “Except as provided by regulations,”.

19Requirement to pass on energy price support to end usersI1

(1)

The Secretary of State may by regulations impose pass-through requirements on persons to whom energy price support is provided (“intermediaries”).

(2)

A “pass-through requirement” is a requirement to secure that the benefit of energy price support provided to an intermediary is passed on to end users of the intermediary by a specified time.

(3)

An end user of an intermediary is a person—

(a)

to whom energy is made available by the intermediary, where energy price support has been provided to the intermediary in respect of that energy,

(b)

to whom heating, cooling, hot water or electricity is made available by the intermediary using energy in respect of which energy price support has been provided to the intermediary, or

(c)

who makes a qualifying payment to the intermediary.

(4)

“Energy price support” means financial assistance provided—

(a)

by way of a payment to a person in connection with energy costs (whether of that person or of others),

(b)

by way of a reduction in the amount to be paid by a person for energy, or

(c)

otherwise than as mentioned in paragraph (a) or (b), to or in respect of a person under this Act or any scheme established under it,

where the assistance is provided in response to the energy crisis.

(5)

For the purposes of subsection (3)(c), “qualifying payment” means a payment in respect of—

(a)

energy, heating, cooling or hot water made available to the person by another person, or by the intermediary to another person, where (as the case may be)—

(i)

the energy is energy in respect of which energy price support has been provided to the intermediary, or

(ii)

the heating, cooling or hot water is produced using energy in respect of which energy price support has been provided to the intermediary,

(b)

electricity made available to the person by another person, or by the intermediary to another person, using energy in respect of which energy price support has been provided to the intermediary, or

(c)

the provision by the intermediary of a service, a product or accommodation, where an identified component of the amount paid relates directly to the use of—

(i)

energy in respect of which energy price support has been provided to the intermediary, or

(ii)

heating, cooling, hot water or electricity produced using energy in respect of which energy price support has been provided to the intermediary.

(6)

Regulations under subsection (1) must—

(a)

specify the benefit to be passed on in accordance with a pass-through requirement, or

(b)

provide for the benefit to be determined in accordance with the regulations.

(7)

Regulations under subsection (1) may also, in particular, make provision—

(a)

about how the benefit is to be passed on;

(b)

about the allocation of the benefit between two or more persons;

(c)

for the purpose of determining who is an end user of an intermediary.

(8)

A pass-through requirement may apply to intermediaries generally, to intermediaries of a specified description, or to specified intermediaries.

(9)

Regulations under subsection (1) may require intermediaries to provide specified information to end users, to the Secretary of State or to other specified persons.

(10)

Regulations under subsection (1) may make provision—

(a)

for a specified amount, or an amount determined in accordance with the regulations, to be recoverable as a civil debt by a person who does not receive the benefit specified or determined by virtue of subsection (6) by the specified time;

(b)

for the payment of a specified amount, on an application made in accordance with the regulations by a person who is an end user of an intermediary, where the intermediary fails to comply with a requirement by virtue of subsection (9) to provide information to the person;

(c)

about the payment of interest on any amount referred to in paragraph (a) or (b);

(d)

for the making of complaints by end users to a specified person;

(e)

applying the Heat Network (Metering and Billing) Regulations 2014 (S.I. 2014/3120), with or without modifications, in relation to any requirement by virtue of subsection (9) to provide information to a person within regulation 10 of those Regulations.

(11)

Provision made by virtue of subsection (10)(d)—

(a)

must set out the grounds on which a complaint may be made (which must relate to a failure to comply with a requirement imposed by the regulations);

(b)

may include provision for—

(i)

Part 2 of the Consumers, Estate Agents and Redress Act 2007 (complaints handling and redress schemes) to apply in relation to end users in England, Wales or Scotland as it applies in relation gas or electricity consumers, or

(ii)

Article 22 of the Energy (Northern Ireland) Order 2003 (S.I. 2003/419 (N.I. 6)) and such other provisions of that Order as relate to it to apply in relation to end users in Northern Ireland as they apply in relation to a customer of, or user of electricity or gas supplied by, an authorised supplier,

with such modifications as the Secretary of State considers appropriate.

(12)

The Secretary of State may by regulations amend this section so as to add to the cases in which a person is an end user of an intermediary.

(13)

Regulations under this section are subject to the affirmative procedure.

(14)

In this section—

(a)

“specified” means specified in regulations under subsection (1);

(b)

references to energy being made available are to its being made available otherwise than in accordance with a licence under—

(i)

section 7A(1) of the Gas Act 1986 or Article 8(1)(c) of the Gas (Northern Ireland) Order 1996 (S.I. 1996/275 (N.I. 2)) (gas supply licence), or

(ii)

section 6(1)(d) of the Electricity Act 1989 or Article 10(1)(c) of the Electricity (Northern Ireland) Order 1992 (S.I. 1992/231 (N.I. 1)) (electricity supply licence);

(c)

references to the provision of energy price support are to its provision before, or on or after, the day on which this Act is passed;

(d)

references to a person to whom energy price support is provided include references to a person to whom the benefit of energy price support is provided indirectly (whether in consequence of a pass-through requirement or otherwise).

20Domestic gas and electricity tariff capI1 E+W+S

Schedule 3 contains amendments to the Domestic Gas and Electricity (Tariff Cap) Act 2018.

21Power of the Secretary of State to modify energy licences etcI1

(1)

The Secretary of State may exercise a power conferred by this section if the Secretary of State considers it appropriate to do so—

(a)

in response to the energy crisis, or

(b)

in connection with—

(i)

this Act,

(ii)

regulations under this Act,

(iii)

a domestic energy price reduction scheme (including its establishment, modification or revocation), or

(iv)

anything done or proposed to be done under, or given effect by, section 13, any other provision of this Act or regulations under this Act.

(2)

The Secretary of State may modify—

(a)

an energy licence (including any conditions, standard or otherwise, of a licence);

(b)

a document maintained in accordance with the conditions of any energy licence, or an agreement that gives effect to a document so maintained.

(3)

Subsection (2) has effect in relation to licences whenever granted and agreements whenever entered into.

(4)

The power to make modifications under subsection (2)—

(a)

may be exercised—

(i)

generally,

(ii)

only in relation to specified cases, or

(iii)

subject to exceptions;

(b)

may be exercised differently in different cases;

(c)

includes a power to make consequential, supplementary, incidental, saving or transitional modifications.

(5)

Without prejudice to the generality of subsection (2), conditions included in an energy licence by virtue of that subsection may do any of the things authorised for licences by—

(a)

section 7(1), (3), (3A), (3C)(a), or (4) to (6A) of the Electricity Act 1989;

(b)

section 7B(4), (4A), (5), (5B)(a), (6) or (7) of the Gas Act 1986;

(c)

Article 11(2), (3), or (4) to (6B) of the Electricity (Northern Ireland) Order 1992 (S.I. 1992/231 (N.I. 1));

(d)

Article 10(2), (3), or (4) to (6A) of the Gas (Northern Ireland) Order 1996 (S.I. 1996/275 (N.I. 2)).

(6)

Nothing in this section affects any other power—

(a)

to modify an energy licence or other document, or

(b)

to give a direction (including under section 22(1)).

(7)

If the Secretary of State makes or proposes to make modifications under this section, the Secretary of State must publish a notice—

(a)

setting out the modifications,

(b)

explaining the effect of the modifications, and

(c)

specifying the date from which the modifications have effect (which may not be earlier than the day on which they are published).

(8)

Publication under subsection (7) must be in a manner the Secretary of State considers appropriate for bringing the information to the attention of persons likely to be affected by the modifications.

(9)

Subsection (7) applies in respect of a proposed modification only if the Secretary of State considers it appropriate in all the circumstances to publish the notice and (in accordance with subsection (10)) consider representations before making the modification.

(10)

Where the duty in subsection (7) applies in respect of a proposed modification, the Secretary of State must (before making the modification) consider any representations made by persons likely to be affected by the modification.

(11)

In this section “energy licence” means—

(a)

a licence for the purposes of section 4 of the Electricity Act 1989;

(b)

a licence for the purposes of section 5 of the Gas Act 1986;

(c)

a licence granted under Article 10 of the Electricity (Northern Ireland) Order 1992 (S.I. 1992/231 (N.I. 1));

(d)

a licence granted under Article 8 of the Gas (Northern Ireland) Order 1996 (S.I. 1996/275 (N.I. 2)).

22Power of Secretary of State to give directionsI1

(1)

The Secretary of State may exercise a power conferred by this section if the Secretary of State considers it appropriate to do so—

(a)

in response to the energy crisis, or

(b)

in connection with—

(i)

this Act,

(ii)

regulations under this Act,

(iii)

a domestic energy price reduction scheme (including its establishment, modification or revocation), or

(iv)

anything done or proposed to be done under, or given effect by, section 13, any other provision of this Act or regulations under this Act.

(2)

The Secretary of State may give a person who is subject to directions under this section—

(a)

a direction of a general character;

(b)

a direction to do (or not do) a specific thing.

(3)

The following are subject to directions under this section—

(a)

the Northern Ireland Regulator;

(b)

a person who holds an energy licence.

(4)

A direction under this section—

(a)

must be in writing;

(b)

may be varied or revoked by a subsequent direction given by the Secretary of State.

(5)

So far as a direction under this section conflicts with the requirements of an enactment or instrument or with any duty which arises otherwise than under an enactment or instrument the requirements are or the duty is to be disregarded.

(6)

In this section “energy licence” means—

(a)

a licence for the purposes of section 4 of the Electricity Act 1989;

(b)

a licence for the purposes of section 5 of the Gas Act 1986;

(c)

a licence granted under Article 10 of the Electricity (Northern Ireland) Order 1992 (S.I. 1992/231 (N.I. 1));

(d)

a licence granted under Article 8 of the Gas (Northern Ireland) Order 1996 (S.I. 1996/275 (N.I. 2)).

25Time limits on exercise of certain powers under this ActI1

Schedule 6 provides for time limits on the exercise of certain powers conferred by this Act.

26RegulationsI1

(1)

Regulations made under this Act by the Secretary of State are to be made by statutory instrument.

(2)

A power to make regulations under this Act includes power to make—

(a)

different provision for different purposes or cases;

(b)

incidental, supplementary or consequential provision;

(c)

transitional, transitory or saving provision.

(3)

Where regulations under this Act are subject to the negative procedure, the statutory instrument containing them is subject to annulment in pursuance of a resolution of either House of Parliament.

(4)

Where regulations under this Act—

(a)

are subject to the affirmative procedure, and

(b)

are made after the initial period,

they may not be made unless a draft of the statutory instrument containing them has been laid before, and approved by a resolution of, each House of Parliament.

(5)

Where regulations under this Act—

(a)

are subject to the affirmative procedure, and

(b)

are made during the initial period,

the statutory instrument containing them must be laid before Parliament after being made.

(6)

Regulations contained in a statutory instrument laid before Parliament under subsection (5) cease to have effect at the end of the period of 28 days beginning with the day on which the instrument is made unless, during that period, the instrument is approved by a resolution of each House of Parliament.

(7)

In calculating the period of 28 days, no account is to be taken of any whole days that fall within a period during which—

(a)

Parliament is dissolved or prorogued, or

(b)

either House of Parliament is adjourned for more than four days.

(8)

If regulations cease to have effect as a result of subsection (7), that does not—

(a)

affect the validity of anything previously done under the regulations, or

(b)

prevent the making of new regulations.

(9)

Any provision that may be included in regulations under this Act subject to the negative procedure may be made by regulations subject to the affirmative procedure.

(10)

If a draft of a statutory instrument containing regulations made under this Act by the Secretary of State would, apart from this subsection, be treated for the purposes of the Standing Orders of either House of Parliament as a hybrid instrument, it is to proceed in that House as if were not a hybrid instrument.

(11)

In this section “initial period” means the period of six months beginning with the day on which this Act is passed.

27Consequential provision etcI1

(1)

The Secretary of State may, by regulations, make provision that is consequential on—

(a)

this Act, or

(b)

regulations under this Act.

(2)

The Secretary of State may, by regulations, make any provision which the Secretary of State considers appropriate in connection with—

(a)

a domestic energy price reduction scheme (including its establishment, modification or revocation), or

(b)

anything done or proposed to be done under, or given effect by, section 13, any other provision of this Act or any regulations under this Act.

(3)

The Secretary of State may, by regulations, make transitional, transitory or saving provision in connection with—

(a)

any provision of this Act ceasing to have effect to any extent, or

(b)

any power ceasing to be exercisable by the Secretary of State or by the Department for the Economy in Northern Ireland,

under Schedule 4, 5 or 6.

(4)

Regulations under subsection (3) may, in particular, make provision for the transfer of property, rights and liabilities (whether or not otherwise capable of being transferred), including any acquired or arising after the regulations are made.

(5)

Regulations under subsection (1) or (2) may amend or repeal provision made by primary legislation passed before, or in the same Session as, this Act.

(6)

Regulations under subsection (5) (whether alone or with other provision) are subject to the affirmative procedure.

(7)

Any other regulations under subsection (1) or (2) are subject to the negative procedure.

(8)

Schedule 7 contains amendments of legislation.

(9)

For provision about the modification of energy licences, see section 21.

28InterpretationI1

(1)

For the purposes of this Act something is done “in response to the energy crisis” if it is done for the purpose of responding to a relevant change in the price of energy (including responding to a cause or effect, or anticipated cause or effect, of a relevant change).

(2)

A change in the price of energy is a “relevant change” if it—

(a)

occurred on or after 1 January 2022 and before this Act came into force, or

(b)

occurs after this Act is passed.

(3)

Subsections (1) and (2) do not prevent something from being done in response to the energy crisis that will or may produce a result that is different from the position at a time before 1 January 2022.

(4)

In this Act—

  • “affirmative procedure” is to be construed in accordance with section 26(4) to (7);

  • “domestic electricity price reduction scheme for Great Britain” has the meaning given in section 1(2);

  • “domestic electricity price reduction scheme for Northern Ireland” has the meaning given in section 5(2);

  • “domestic energy price reduction scheme” means—

    1. (a)

      a domestic electricity price reduction scheme for Great Britain,

    2. (b)

      a domestic electricity price reduction scheme for Northern Ireland,

    3. (c)

      a domestic gas price reduction scheme for Great Britain, or

    4. (d)

      a domestic gas price reduction scheme for Northern Ireland;

  • “domestic gas price reduction scheme for Great Britain” has the meaning given in section 1(4);

  • “domestic gas price reduction scheme for Northern Ireland” has the meaning given in section 5(4);

  • “energy” means—

    1. (a)

      natural gas,

    2. (b)

      petroleum (in any form),

    3. (c)

      any other substance (whether solid, liquid or gaseous) used as fuel, and

    4. (d)

      electricity;

  • “GEMA” means the Gas and Electricity Markets Authority;

  • “modify” includes amend, repeal and revoke (and, in particular, a power to modify an agreement includes power to make a person a party to an agreement, or to discharge a party from the party’s obligations under the agreement);

  • “negative procedure” is to be construed in accordance with section 26(3);

  • “Northern Ireland Regulator” means the Northern Ireland Authority for Utility Regulation;

  • “primary legislation” means—

    1. (a)

      an Act,

    2. (b)

      an Act or Measure of Senedd Cymru,

    3. (c)

      an Act of the Scottish Parliament, or

    4. (d)

      Northern Ireland legislation;

  • “subordinate legislation” means an instrument made under primary legislation.

29Application to the CrownI1

This Act binds the Crown.

30Extent, commencement and short titleI1

(1)

These provisions of this Act extend to England and Wales and Scotland—

(a)

sections 1 to 4;

(b)

sections 9 and 10 and Schedule 1;

(c)

section 20 and Schedule 3.

(2)

These provisions of this Act extend to Northern Ireland only—

(a)

sections 5 to 8;

(b)

sections 11 and 12 and Schedule 2;

(c)

section 23 and Schedule 4;

(d)

section 24 and Schedule 5.

(3)

The amendments made by Schedule 7 have the same extent as the legislation amended.

(4)

The other provisions of this Act extend to England and Wales, Scotland and Northern Ireland.

(5)

Section 18 comes into force at the end of the period of two months beginning with the day on which this Act is passed.

(6)

The other provisions of this Act come into force on the day on which it is passed.

(7)

The Secretary of State may, by regulations, make transitional, transitory or saving provision in connection with the coming into force of any provision of this Act.

(8)

This Act may be cited as the Energy Prices Act 2022.

1IntroductionI1 E+W+S

In this Schedule—

  • “energy supply” means—

    1. (a)

      GB non-domestic electricity supply, or

    2. (b)

      GB non-domestic gas supply;

  • “licensed supplier” means—

    1. (a)

      a licensed electricity supplier, or

    2. (b)

      a licensed gas supplier;

  • “GB non-domestic relief regulations” means regulations under section 9(1) or (2);

  • “support scheme” means provision in GB non-domestic relief regulations for—

    1. (a)

      reducing the amounts that would otherwise be charged for energy supply by licensed suppliers, and

    2. (b)

      making payments to those suppliers in respect of those reductions.

2Application of GB non-domestic relief regulationsI1 E+W+S

(1)

GB non-domestic relief regulations may relate to charges for energy supply that took place before section 9 or the regulations came into force (including charges made or paid before that section or the regulations came into force).

(2)

GB non-domestic relief regulations may apply to energy supply to only some descriptions of customers.

(3)

GB non-domestic relief regulations may apply to only some descriptions or parts of energy supply.

(4)

The power under section 26(2)(a) for GB non-domestic relief regulations to make different provision for different cases includes power for those regulations to make different provision—

(a)

for energy supply to different descriptions of customers,

(b)

for different descriptions of energy supply, or

(c)

for different parts of energy supply.

(5)

That includes different provision for reducing the amount that would otherwise be charged for energy supply by licensed suppliers.

3DelegationI1 E+W+S

(1)

GB non-domestic relief regulations may provide for functions (including functions involving the exercise of a discretion) to be exercisable by any person (including the Secretary of State).

(2)

In particular, the regulations may confer power—

(a)

to make rules or other subordinate legislation (and may provide for them to be made by statutory instrument), or

(b)

to give directions.

4Powers and dutiesI1 E+W+S

(1)

GB non-domestic relief regulations may provide for duties to be imposed on, or powers to be conferred on, any person (including the Secretary of State).

(2)

That includes powers or duties relating to the provision, or making available, of information.

5Modification of contractsI1 E+W+S

GB non-domestic relief regulations may modify, or make other provision in relation to, the terms of contracts or other arrangements relating to energy supply.

6EnforcementI1 E+W+S

(1)

GB non-domestic relief regulations may provide for civil penalties.

(2)

GB non-domestic relief regulations may provide for obligations under the regulations to be enforceable as, or as if they were, relevant requirements for the purposes of section 25 of the Electricity Act 1989 or section 28 of the Gas Act 1986.

7Exclusion of liabilityI1 E+W+S

GB non-domestic relief regulations may provide for a person not to be liable in damages for things done or omitted in the exercise or purported exercise of functions under the regulations.

8Avoidance of abuse or unreasonable reliance on support schemesI1 E+W+S

GB non-domestic relief regulations may make provision to deal with the consequences of, or to prohibit or otherwise regulate, transactions or arrangements which the Secretary of State considers manipulate or otherwise abuse—

(a)

any support scheme, or

(b)

the availability of any support scheme.

9Financially disadvantaged customersI1 E+W+S

(1)

GB non-domestic relief regulations may make provision about the terms on which licensed suppliers are to provide energy supply to which a support scheme relates to a specified description of customers.

(2)

That includes provision about—

(a)

terms on which the customers must, or must not, be provided with the energy supply;

(b)

factors which must, or must not, be taken into account in deciding the terms on which the customers are to be provided with the energy supply;

(c)

the way in which factors may be taken into account in deciding the terms on which the customers are to be provided with the energy supply.

(3)

The Secretary of State may specify a description of customers for the purposes of regulations under this paragraph only if the Secretary of State considers that customers within that description are financially disadvantaged.

(4)

This paragraph does not limit the provision that may be made under paragraph 5.

1Amendments to 2018 ActI1 E+W+S

The Domestic Gas and Electricity (Tariff Cap) Act 2018 is amended as follows.

2Amendments to 2018 ActI1 E+W+S

(1)

Section 1 (cap on standard variable and default rates) is amended as follows.

(2)

After subsection (3) insert—

“(3A)

If tariff cap conditions cease to have effect by virtue of section 8 in the case of supply licences for the supply of gas but continue to have effect in the case of supply licences for the supply of electricity, or vice versa, the reference in subsection (2)(b) to the standard supply licence conditions is to be construed accordingly.”

(3)

In subsection (6), after paragraph (d) insert—

“(e)

the need to set the cap at a level that takes account of the impact of the cap on public spending.”

(4)

After subsection (6) insert—

“(6A)

In performing the duty under subsection (6)(e), the Authority must have regard to any information provided to it by the Secretary of State, or any guidance given by the Secretary of State, in relation to the matter mentioned in that provision.”

3Amendments to 2018 ActI1 E+W+S

(1)

Section 5 (publication and effect of modifications) is amended as follows.

(2)

In subsection (4), for “56 days” substitute “25 working days”.

(3)

After subsection (4) insert—

“(5)

In subsection (4), “working day” means a day other than—

(a)

Saturday or Sunday,

(b)

Christmas Day or Good Friday, or

(c)

a day which is a bank holiday under the Banking and Financial Dealings Act 1971 in any part of the United Kingdom.”

4Amendments to 2018 ActI1 E+W+S

(1)

Section 6 (review of level at which cap is set) is amended as follows.

(2)

After subsection (1) insert—

“(1A)

As soon as practicable after carrying out a review under subsection (1), the Authority must—

(a)

produce a statement stating whether, in consequence of the review, the Authority proposes to change the level at which the cap is set, and

(b)

send a copy of the statement to the Secretary of State.

(1B)

The Authority must publish a statement under subsection (1A) as soon as practicable after complying with that subsection.”

(3)

Omit subsection (2).

5Amendments to 2018 ActI1 E+W+S

Omit section 7.

6Amendments to 2018 ActI1 E+W+S

For section 8 substitute—

“Termination of tariff cap conditions

8
(1)

The Secretary of State may at any time give a notice that tariff cap conditions are to cease to have effect in the case of—

(a)

all supply licences,

(b)

all supply licences for the supply of gas, or

(c)

all supply licences for the supply of electricity.

(2)

Where the Secretary of State gives a notice under subsection (1), tariff cap conditions cease to have effect, in the case of licences to which the notice relates, on the date specified in the notice.

(3)

In deciding whether to give a notice under subsection (1), the Secretary of State must have regard to the desirability of ensuring that tariff cap conditions continue to have effect—

(a)

in the case of supply licences for the supply of electricity, for so long as a scheme is designated for the purposes of section 2 of the Energy Prices Act 2022 (domestic electricity price reduction scheme for Great Britain);

(b)

in the case of supply licences for the supply of gas, for so long as a scheme is designated for the purposes of section 3 of the Energy Prices Act 2022 (domestic gas price reduction scheme for Great Britain).

(4)

The Secretary of State must publish a notice under subsection (1).

(5)

Where tariff cap conditions cease to have effect as provided by this section in the case of all supply licences, the functions of the Authority under section 1 cease to be exercisable.

(6)

Where tariff cap conditions cease to have effect as provided by this section in the case of supply licences for the supply of gas, the functions of the Authority under section 1 cease to be exercisable in relation to such licences.

(7)

Where tariff cap conditions cease to have effect as provided by this section in the case of supply licences for the supply of electricity, the functions of the Authority under section 1 cease to be exercisable in relation to such licences.”

7Amendments to 2018 ActI1 E+W+S

In section 9(1) (protection for domestic customers after termination of tariff cap conditions), for the words from “Before” to “the Authority must” substitute “The Authority must, at such intervals as it considers appropriate,”.

8Amendments to 2018 ActI1 E+W+S

(1)

Section 10 (consequential modification of standard supply licence conditions) is amended as follows.

(2)

In subsection (1), after “effect” insert “, in the case of all supply licences,”.

(3)

After subsection (1) insert—

“(1A)

The Authority may make such modifications of any standard conditions incorporated in supply licences by virtue of section 8 of the Gas Act 1986 as it considers necessary or expedient in consequence of tariff cap conditions ceasing to have effect as provided by section 8 in the case only of supply licences for the supply of gas.

(1B)

The Authority may make such modifications of any standard conditions incorporated in supply licences by virtue of section 8A of the Electricity Act 1989 as it considers necessary or expedient in consequence of tariff cap conditions ceasing to have effect as provided by section 8 in the case only of supply licences for the supply of electricity.”

(4)

In subsection (2)(a), for “the modifications” substitute “modifications made under this section”.

(5)

In subsection (3), after “modification” insert “made under this section”.

9Transitional provisionI1 E+W+S

(1)

This paragraph applies if—

(a)

paragraph 5 of this Schedule comes into force on or after 1 November 2022, and

(b)

in relation to the review carried out in 2022 under section 7 of the 2018 Act (review of competition for domestic supply contracts), no statement was published in accordance with section 7(6) of that Act.

(2)

In such a case—

(a)

tariff cap conditions continue to have effect, notwithstanding section 8(3) of the 2018 Act, until they cease to have effect in accordance with section 8 of that Act (as substituted by paragraph 6 of this Schedule), and

(b)

section 7(5) and (6) of the 2018 Act (duty to publish statement following review) is to be treated as not having applied in relation to the review.

(3)

In this paragraph—

  • “the 2018 Act” means the Domestic Gas and Electricity (Tariff Cap) Act 2018;

  • “tariff cap conditions” has the same meaning as in the 2018 Act.

1Domestic electricity price reduction schemes for Great BritainI1

(1)

This paragraph applies to a domestic electricity price reduction scheme for Great Britain if that scheme, or any other such scheme, has been designated.

(2)

The scheme may not provide for the reduction of the amount charged for domestic electricity supply if that supply takes place after the end of the period of two years beginning with 1 October 2022.

(3)

That period may be extended in accordance with paragraph 9.

(4)

In this paragraph “designated” means designated under section 2.

2Domestic gas price reduction schemes for Great BritainI1

(1)

This paragraph applies to a domestic gas price reduction scheme for Great Britain if that scheme, or any other such scheme, has been designated.

(2)

The scheme may not provide for the reduction of the amount charged for domestic gas supply if that supply takes place after the end of the period of two years beginning with 1 October 2022.

(3)

That period may be extended in accordance with paragraph 9.

(4)

In this paragraph “designated” means designated under section 3.

3Domestic electricity price reduction schemes for Northern IrelandI1

(1)

This paragraph applies to a domestic electricity price reduction scheme for Northern Ireland if that scheme, or any other such scheme, has been designated.

(2)

The scheme may not provide for the reduction of the amount charged for domestic electricity supply if that supply takes place after the end of the period of two years beginning with the operative date of the only or first scheme to be designated.

(3)

That period may be extended in accordance with paragraph 9.

(4)

In this paragraph—

  • “designated” means designated under section 6;

  • “operative date”, in relation to a designated scheme, means the first day on which domestic electricity supply takes place at a charge reduced in accordance with the scheme.

4Domestic gas price reduction schemes for Northern IrelandI1

(1)

This paragraph applies to a domestic gas price reduction scheme for Northern Ireland if that scheme, or any other such scheme, has been designated.

(2)

The scheme may not provide for the reduction of the amount charged for domestic gas supply if that supply takes place after the end of the period of two years beginning with the operative date of the only or first scheme to be designated.

(3)

That period may be extended in accordance with paragraph 9.

(4)

In this paragraph—

  • “designated” means designated under section 7;

  • “operative date”, in relation to a designated scheme, means the first day on which domestic gas supply takes place at a charge reduced in accordance with the scheme.

5Reduced energy charges for non-domestic customers in Great BritainI1

(1)

Regulations under section 9(1) may not provide for the reduction of charges for electricity supply if that supply takes place after the end of the period of two years beginning with the operative date of the first regulations made under section 9(1).

(2)

Additionally, regulations under section 9(1)—

(a)

may only provide for the reduction of charges for electricity supply that takes place during a period of six months or less;

(b)

but may provide for the reduction of charge for electricity supply that takes place during up to four such periods;

(c)

must, if they provide for the reduction of charges for electricity supply that takes place during more than one such period, provide for each period to begin immediately after the end of a preceding period.

(3)

Regulations under section 9(2) may not provide for the reduction of charges for gas supply if that supply takes place after the end of the period of two years beginning with the operative date of the first regulations made under section 9(2).

(4)

Additionally, regulations under section 9(2)—

(a)

may only provide for the reduction of charges for gas supply that takes place during a period of six months or less;

(b)

but may provide for the reduction of charges for gas supply that takes place during up to four such periods;

(c)

must, if they provide for the reduction of charges for gas supply that takes place during more than one such period, provide for each period to begin immediately after the end of a preceding period.

(5)

In this paragraph—

  • “operative date”, in relation to regulations under section 9(1) or (2), means the first day on which GB non-domestic electricity supply or gas supply takes place at a charge reduced in accordance with regulations made under that provision;

  • “reduction of charges for electricity supply” means reducing the amounts that would otherwise be charged for GB non-domestic electricity supply by licensed electricity suppliers;

  • “reduction of charges for gas supply” means reducing the amounts that would otherwise be charged for GB non-domestic gas supply by licensed gas suppliers.

6Reduced energy charges for non-domestic customers in Northern IrelandI1

(1)

Regulations under section 11(1) may not provide for the reduction of charges for electricity supply if that supply takes place after the end of the period of two years beginning with the operative date of the first regulations made under section 11(1).

(2)

Additionally, regulations under section 11(1)—

(a)

may only provide for the reduction of charges for electricity supply that takes place during a period of six months or less;

(b)

but may provide for the reduction of charges for electricity supply that takes place during up to four such periods;

(c)

must, if they provide for the reduction of charges for electricity supply that takes place during more than one such period, provide for each period to begin immediately after the end of a preceding period.

(3)

Regulations under section 11(2) may not provide for the reduction of charges for gas supply if that supply takes place after the end of the period of two years beginning with the operative date of the first regulations made under section 11(2).

(4)

Additionally, regulations under section 11(2)—

(a)

may only provide for the reduction of charges for gas supply that takes place during a period of six months or less;

(b)

but may provide for the reduction of charges for gas supply that takes place during up to four such periods;

(c)

must, if they provide for the reduction of charges for gas supply that takes place during more than one such period, provide for each period to begin immediately after the end of a preceding period.

(5)

In this paragraph—

  • “operative date”, in relation to regulations under section 11(1) or (2), means the first day on which NI non-domestic electricity supply or gas supply takes place at a charge reduced in accordance with regulations made under that provision;

  • “reduction of charges for electricity supply” means reducing the amounts that would otherwise be charged for NI non-domestic electricity supply by licensed electricity suppliers;

  • “reduction of charges for gas supply” means reducing the amounts that would otherwise be charged for NI non-domestic gas supply by licensed gas suppliers.

7Power of the Secretary of State to give support for meeting energy costs etcI1

C1C2(1)

The powers conferred by section 13 cease to be exercisable at the end of the period of three years and six months beginning with the day on which this Act is passed.

(2)

That period may be extended in accordance with paragraph 9.

(3)

Sub-paragraph (1) does not prevent the powers conferred by section 13 from being exercised in a manner that could have an effect (including through the creation of rights, privileges, obligations or liabilities) which continues after the period when the power is exercisable.

8Temporary requirement for electricity generators to make paymentsI1

(1)

Regulations under section 16 may not require an electricity generator to make a periodic payment in respect of a period that expires after the end of the period of 5 years beginning with the day on which this Act is passed.

(2)

The Secretary of State may by regulations amend this paragraph so as to substitute a longer period for the period specified for the time being in sub-paragraph (1).

(3)

Regulations under this paragraph are subject to the affirmative procedure.

9Extension of certain periodsI1

(1)

The Secretary of State may by regulations provide that any of the relevant time periods—

(a)

does not end at the time when it would otherwise end (whether by virtue of the original limitation or previous regulations under this paragraph), and

(b)

ends instead at such later time as is specified in the regulations.

(2)

Regulations under sub-paragraph (1) relating to a relevant time period must not provide for that period to end after the end of the period of 6 months beginning with the time when the relevant time period would otherwise have ended (whether by virtue of the original limitation or previous regulations under this paragraph).

(3)

Regulations under this paragraph are subject to the affirmative procedure.

(4)

In this paragraph—

  • “original limitation” means paragraph 1(2), 2(2), 3(2), 4(2) or 7(1);

  • “relevant time period” means any of the periods (initially of two years’ length or three years and six months’ length) referred to in the original limitations.

1Gas Act 1986I1

In Schedule 4B to the Gas Act 1986 (provisions imposing obligations that are enforceable as relevant requirements), in paragraph 4 (obligations of gas suppliers and gas shippers), after paragraph (e) insert—

“(f)

section 3(2), (3) or (4) of the Energy Prices Act 2022, except section 3(2)(c) or (4)(b) insofar as non-compliance with the terms of the designated scheme involves the amounts payable by or to the Secretary of State under the scheme;

(g)

section 22 of the Energy Prices Act 2022.”

2Electricity Act 1989I1

In Schedule 6A to the Electricity Act 1989 (provisions imposing obligations that are enforceable as relevant requirements), in paragraph 6 (obligations of supply licence holders), after paragraph (f) insert—

“(g)

section 2(2) of the Energy Prices Act 2022, except section 2(2)(c) insofar as non-compliance with the terms of the designated scheme involves the amounts payable by or to the Secretary of State under the scheme;

(h)

section 22 of the Energy Prices Act 2022.”

3Utilities Act 2000I1

The Utilities Act 2000 is amended as follows.

4Utilities Act 2000I1

In section 33(1) (standard conditions of electricity licences)—

(a)

in paragraph (i), omit the second “or”;

(b)

in paragraph (j), after “2022” insert

“, or

(k)

under or by virtue of section 21 of the Energy Prices Act 2022”.

5Utilities Act 2000I1

In section 81(2) (standard conditions of gas licences), after “Smart Meters Act 2018” insert “or under or by virtue of section 21 of the Energy Prices Act 2022”.

6Utilities Act 2000I1

In section 105 (general restrictions on disclosure of information)—

(a)

in subsection (1), after “2022” insert “or a relevant scheme or regulations made under section 9(1) or (2) or section 16 of the Energy Prices Act 2022”;

(b)

in subsection (3), after paragraph (ab) insert—

“(ac)

it is required by any person in exercise of a power to require information conferred by regulations under section 16 of the Energy Prices Act 2022;”;

(c)

after subsection (8) insert—

“(8A)

Subsection (1) does not apply to a disclosure of information which has been obtained—

(a)

under or by virtue of a relevant scheme if it is made by a person in connection with that person’s performance of the terms of that relevant scheme, or

(b)

under or by virtue of regulations made under section 9(1) or (2) of the Energy Prices Act 2022 if the disclosure is made by a person in connection with the exercise of that person’s functions under the regulations.”;

(d)

in subsection (10), after the definition of “relevant activities” insert—

  • ““relevant scheme” means—

    1. (a)

      a domestic electricity price reduction scheme for Great Britain, or

    2. (b)

      a domestic gas price reduction scheme for Great Britain,

    within the meaning of the Energy Prices Act 2022 (see section 1 of that Act);”.

7Energy (Northern Ireland) Order 2003I1

The Energy (Northern Ireland) Order 2003 (S.I. 2003/419 (N.I. 6)) is amended as follows.

8Energy (Northern Ireland) Order 2003I1

In Article 12 (the principal objective and general duties of the Department and the Authority in relation to electricity), in paragraph (7), in the definition of “electricity functions”—

(a)

for “means functions” substitute

“means—

  1. (a)

    functions”;

(b)

after the third “electricity” insert

“;

  1. (b)

    the functions which the Department has under section 5 (so far as relating to electricity) and section 6 of the Energy Prices Act 2022 (see Schedule 5 to that Act);

  2. (c)

    the Authority’s function of giving directions under section 6(3) of the Energy Prices Act 2022;

  3. (d)

    functions under regulations made under section 11(1) of the Energy Prices Act 2022;

  4. (e)

    the power which the Department has under section 22 of the Energy Prices Act 2022 (by virtue of paragraph 1(1)(g) of Schedule 5 to that Act) to give a direction in connection with—

    1. (i)

      the domestic electricity price reduction scheme for Northern Ireland, or

    2. (ii)

      regulations made under section 11(1) (so far as relating to electricity)”.

9Energy (Northern Ireland) Order 2003I1

In Article 14 (the principal objective and general duties of the Department and the Authority in relation to gas), in paragraph (6), in the definition of “gas functions”—

(a)

in paragraph (a), omit “and”;

(b)

in paragraph (b), after “gas” insert

“;

  1. (c)

    the functions which the Department has under section 5 (so far as relating to gas) and section 7 of the Energy Prices Act 2022 (see Schedule 5 to that Act);

  2. (d)

    the Authority’s function of giving directions under section 7(3) of the Energy Prices Act 2022;

  3. (e)

    functions under regulations made under section 11(2) of the Energy Prices Act 2022;

  4. (f)

    the power which the Department has under section 22 of the Energy Prices Act 2022 (by virtue of paragraph 1(1)(g) of Schedule 5 to that Act) to give a direction in connection with—

    1. (i)

      the domestic gas price reduction scheme for Northern Ireland, or

    2. (ii)

      regulations made under section 11(2) (so far as relating to gas)”.

10Energy (Northern Ireland) Order 2003I1

In Article 41A (meaning of relevant requirement in relation to electricity), in paragraph (4)—

(a)

in sub-paragraph (j), omit the third “and”;

(b)

after paragraph (k) insert—

“(l)

section 6(2) of the Energy Prices Act 2022, except section 6(2)(c) insofar as non-compliance with the terms of the designated scheme involves the amounts payable by or to the Secretary of State under the scheme; and

(m)

section 22 of the Energy Prices Act 2022,”.

11Energy (Northern Ireland) Order 2003I1

In Article 41B (meaning of relevant requirement in relation to gas), in paragraph (3)—

(a)

in sub-paragraph (i), omit the third “and”;

(b)

after paragraph (j) insert—

“(k)

section 7(2) of the Energy Prices Act 2022, except section 7(2)(c) insofar as non-compliance with the terms of the designated scheme involves the amounts payable by or to the Secretary of State under the scheme; and

(l)

section 22 of the Energy Prices Act 2022,”.

12Energy (Northern Ireland) Order 2003I1

In Article 63 (general restrictions on disclosure of information)—

(a)

in paragraph (1)(a)—

(i)

for “or Part II” substitute “, Part II”;

(ii)

after “Gas Order” insert “, a relevant scheme or regulations made under section 11(1) or (2) or section 16 of the Energy Prices Act 2022”;

(b)

in paragraph (3), after paragraph (b) insert—

“(ba)

it is required by any person in exercise of a power to require information conferred by regulations under section 16 of the Energy Prices Act 2022;”;

(c)

after paragraph (7) insert—

“(7A)

Paragraph (1) does not apply to a disclosure of information which has been obtained—

(a)

under or by virtue of a relevant scheme if it is made by a person in connection with that person’s performance of the terms of that relevant scheme;

(b)

under or by virtue of regulations made under section 11(1) or (2) of the Energy Prices Act 2022 if the disclosure is made by a person in connection with the exercise of that person’s functions under the regulations.”;

(d)

after paragraph (10) insert—

“(11)

In this Article “relevant scheme” means—

(a)

a domestic electricity price reduction scheme for Northern Ireland, or

(b)

a domestic gas price reduction scheme for Northern Ireland,

established under section 5 of the Energy Prices Act 2022.”

13The Electricity (Single Wholesale Market) (Northern Ireland) Order 2007I1

The Electricity (Single Wholesale Market) (Northern Ireland) Order 2007 (S.I. 2007/913 (N.I. 7)) is amended as follows.

14The Electricity (Single Wholesale Market) (Northern Ireland) Order 2007I1

In Article 6 (the Single Electricity Market Committee), in paragraph (4), after sub-paragraph (d) insert—

“(e)

the function of giving directions under section 6(3) of the Energy Prices Act 2022;

(f)

a function under regulations made under section 11(1) of the Energy Prices Act 2022;”.

15The Electricity (Single Wholesale Market) (Northern Ireland) Order 2007I1

In Article 9 (principal objective and duties of Department, the Authority and SEM Committee in relation to SEM), in paragraph (8), in the definition of “electricity functions”, after paragraph (d) insert—

  1. (e)

    “functions under sections 5 and 6 of the Energy Prices Act 2022 (but only the functions under section 5 relating to electricity);

  2. (f)

    functions under regulations made under section 11(1) of the Energy Prices Act 2022;”.