Energy Act 2010

25 Modifications of supply licences: notice of unilateral changes to domestic supply contracts

(1) The Secretary of State may modify—

(a) a condition of a particular licence under section 7A(1) of the Gas Act 1986 (supply licences);

(b) the standard conditions incorporated in licences under that provision by virtue of section 8 of that Act;

(c) a condition of a particular licence under section 6(1)(d) of the Electricity Act 1989 (supply licences);

(d) the standard conditions incorporated in licences under that provision by virtue of section 8A of that Act.

(2) The Secretary of State may make a modification under subsection (1) only for the purpose of securing that customers under contracts for domestic supply are notified about changes which licence holders make under unilateral variation terms in—

(a) any terms of such contracts, or

(b) the price charged for energy supplied under such contracts,

within a period specified in (or determined by reference to criteria set by) the licence as so modified.

(3) Modifications under subsection (1) may include provision—

(a) requiring a notice to be given before or after the change to which it relates is made,

(b) about the form of a notice and the manner in which it is to be given,

(c) about the effect of a notice,

(d) about the effect of failure to give a notice, or

(e) requiring a notice to be accompanied by other information.

(4) The power conferred by subsection (1) may not be exercised after the end of the period of 3 years beginning with the day on which that subsection comes into force.

(5) Before making a modification under subsection (1), the Secretary of State must consult—

(a) the holder of any licence being modified,

(b) the Authority, and

(c) such other persons as the Secretary of State thinks it is appropriate to consult.

(6) In this section a “unilateral variation term” means a term in a contract for domestic supply under which a licence holder is permitted to change a term of the contract or a price charged for energy supplied under it, without the agreement of the customer to the particular changes.

(7) For the purposes of subsection (2), agreement by a customer under a contract for domestic supply to a unilateral variation term (whether by entering into the contract or otherwise) is not be taken to constitute agreement to any particular changes made by virtue of the term.

(8) In this section—

• “a contract for domestic supply” means a contract for the supply of energy by a licence holder to a customer at domestic premises wholly or mainly for domestic purposes;

• “energy”—

  (a)

  in relation to the holder of a licence under section 7A(1) of the Gas Act 1986, means gas;

  (b)

  in relation to the holder of a licence under section 6(1)(d) of the Electricity Act 1989, means electricity.