The Energy (2003 Order) (Commencement No. 1) Order (Northern Ireland) 2003

Explanatory Note

(This note is not part of the Order.)

This Order provides for the coming into operation on 1st April 2003 of the following provisions of the Energy (Northern Ireland) Order 2003 –

Part II (new regulatory arrangements) establishes the Northern Ireland Authority for Energy Regulation and requires the General Consumer Council for Northern Ireland to form a new energy group. It abolishes the offices of Director General of Gas for Northern Ireland and Director General of Electricity Supply for Northern Ireland and transfers their functions to the Authority. It also abolishes the present group established by the General Consumer Council to exercise its energy functions and the Consumer Committee for Electricity. The Authority and the Council are required to prepare and publish forward work programmes, and to draw up a memorandum to ensure effective co-operation between them.

Part III (objectives of regulation of electricity and gas) places new principal objectives and general duties on the Department of Enterprise, Trade and Investment and the Northern Ireland Authority for Energy Regulation in carrying out their functions in relation to electricity and gas. It also specifies certain exceptions to these objectives and duties.

Part IV (functions of the General Consumer Council) sets out the main functions of the Council in relation to electricity and gas and obliges it to have regard to the interests of certain disadvantaged consumers. It gives the Council powers to carry out investigations, and to provide and publish advice and information. It provides a right of access for the Council to information from the Northern Ireland Authority for Energy Regulation – which is given reciprocal rights – and from energy companies.

Articles 33 and 34 (conditions of licences) clarify some of the conditions which may be included in electricity and gas licences. In particular, they allow for the raising of a levy through an increase in the charges of certain licence holders and the payment of the levy to such persons as may be determined by the licence conditions. Article 35 (standard conditions of gas licences) provides for standard conditions to be activated, suspended and reactivated in particular circumstances.

Articles 41 to 44 (enforcement) provide for enforcement by the Northern Ireland Authority for Energy Regulation of electricity and gas licence conditions and certain statutory duties of electricity and gas licence holders. Under Article 51, the Authority is also given powers to obtain documents and information in connection with the investigation of suspected contraventions.

Article 61 (grants for energy purposes) enables the Department of Enterprise, Trade and Investment (“the Department”) to make grants for certain energy purposes.

Article 62 (reasons for decisions) requires the Department, the Authority or the Secretary of State to give reasons for certain decisions and to publish a notice setting out those reasons.

Article 63 (general restrictions on disclosure of information) places restrictions on the disclosure of information obtained under the Energy (Northern Ireland) Order 2003 or under certain provisions of the Electricity (Northern Ireland) Order 1992 or the Gas (Northern Ireland) Order 1996. Unauthorised disclosure is a criminal offence. Article 63 also includes a number of exceptions where disclosure is permitted.

Schedule 1 (the Northern Ireland Authority for Energy Regulation) sets out the arrangements for the appointment and remuneration of the members of the Authority and its staff, and contains provisions relating to its internal procedures.

Consequential amendments and repeals effected by Schedules 3 and 5, and Article 65 in so far as it relates to them.