Explanatory note

These Regulations provide for the payment of compensation by the Secretary of State to third parties who suffer loss or damage in consequence of anything done by the Secretary of State in preparation for or in connection with the designation of a person (as Independent System Operator and Planner) under section 162(1) of the Energy Act 2023.

Regulation 3 sets out who may bring a claim, and defines the scope of loss and damage in respect of which a claim may be brought. Regulation 4 sets out the formal requirements that a claim must meet in order to be considered.

Regulation 5 sets out the duties of the Secretary of State in respect of claims and the matters to which the Secretary of State must have regard in determining what compensation a claimant is to receive.

Regulation 6 identifies the procedure that a clamant may follow to appeal against a determination of its claim by the Secretary of State and specifies the time frame within which they must do this.

A full Impact Assessment has not been published in support of this instrument, as no significant impact on the private, voluntary or public sector is foreseen.