Energy Act 1976

5 Temporary relief from restrictive practices law. U.K.

(1) The M1 Restrictive Trade Practices Act 1976 does not apply to an agreement satisfying the following conditions, namely—

(a) it is in writing and made between two or more persons carrying on business in the production or supply of petroleum and—

(i) is made by them with the Secretary of State and each other, and

(ii) contains a power for the Secretary of State to terminate it on the ground that its continuance is no longer expedient in the national interest;

(b) no such restrictions are accepted under it as would (apart from this subsection) make it subject to registration under the 1976 Act, other than restrictions—

(i) in respect of the matters mentioned in section 6(1)(a) to (c) of the Act (regulation of prices and terms and conditions of sale), and

(ii) relating only to petroleum;

(c) it is so expressed that restrictions under it in respect of those matters are operative when, and only when, there is for the time being in force an Order in Council under section 3 of this Act.

(2) Without prejudice to the foregoing, an agreement made at a time when there is in force such an Order in Council and satisfying the conditions set out below, is exempt from registration under the 1976 Act (subject to this section) while the Order is in force.

(3) The conditions for exemption under subsection (2) above are—

(a) that the agreement is made exclusively between persons carrying on business in the production or supply of petroleum and that two or more of them carry on the business in the United Kingdom;

(b) that under the agreement restrictions are accepted such as are described in paragraph (d), (e) or (f) of section 6(1) of the 1976 Act (restrictions on the quantities of goods to be supplied, to whom and for what purpose, etc.) and that those restrictions relate only to petroleum;

(c) that no other restrictions are accepted under the agreement by virtue of which it is subject to registration under the 1976 Act; and

(d) that the agreement is not to the like effect as another agreement made while the Order in Council is in force in respect of which exemption has been withdrawn under subsection (5) below, unless—

(i) none of the parties to the new agreement were parties to the previous agreement; or

(ii) the Secretary of State has given his consent to the making of the agreement.

(4) The Secretary of State may direct any person who he has reasonable cause to believe is or may be party to an agreement exempt by virtue of subsection (2) above to furnish him with such particulars of the agreement as may be specified in the direction.

(5) If it appears to the Secretary of State that any restriction accepted under an agreement exempt by virtue of subsection (2) being a restriction such as is referred to in subsection (3)(b) above, is not, or is no longer, necessary in the national interest having regard to the fuel emergency, he may by notice in writing to any one or more parties to the agreement withdraw that exemption with effect from the date specified in the notice.

(6) Where an agreement ceases to be exempt under subsection (2) but it continues in force and is then subject to registration under the 1976 Act, the period within which particulars of it must be furnished under that Act is—

(a) where the exemption ceases on an Order in Council under section 3 ceasing to have effect, one month from that date;

(b) where the exemption ceases on the agreement ceasing to satisfy one of the conditions in subsection (3), 14 days from that date; and

(c) where the exemption is withdrawn by the Secretary of State under subsection (5), 7 days from the date on which the withdrawal takes effect;

and section 35 of that Act (failure to register within time required) shall apply accordingly.

(7) In this section—

(a) “the 1976 Act” means the M2 Restrictive Trade Practices Act 1976, and “agreement” and “restriction” have the same meaning as in that Act;

(b) references to “petroleum” include crude liquid petroleum and any petroleum product; and

(c) references to a period calculated from a day are references to the period inclusive of that day.

Marginal Citations

M1 1976 c. 34.

M2 1976 c. 34.