PART 1Introduction

Citation and commencement1

These Regulations may be cited as the Electricity Market Reform (General) Regulations 2014 and come into force on the day after the day on which they are made.

Interpretation2

In these Regulations—

  • “the Act” means the Energy Act 2013;

  • “advice notice” has the meaning given by regulation 4(1);

  • “the Allocation Regulations” means the Contracts for Difference (Allocation) Regulations 20142;

  • “applicant” has the meaning given by regulation 9(2);

  • “capital costs” means the capital costs of an electricity generating station;

  • “counterparty notice” has the meaning given by regulation 6(2);

  • “delivery body” means—

    1. a

      the national system operator; or

    2. b

      if the national system operator’s functions under Chapter 2 of Part 2 of the Act have been transferred to an alternative body, that body;

  • “eligible generator” has the same meaning as it has under the Contracts for Difference (Definition of Eligible Generator) Regulations 20143;

  • “first round CFD application” has the meaning given by regulation 10(3)(c);

  • “generator notice” has the meaning given by regulation 7(2);

  • “operational costs” means the costs of operation of an electricity generating station;

  • “progress report” has the meaning given by regulation 4(1)(c);

  • “relevant generating station” has the meaning given by regulation 9(1);

  • “strike price” means a price for one megawatt hour of electricity generated by a generating station;

  • “supply chain application” means an application under regulation 9(1) for a supply chain statement;

  • “supply chain statement” means a statement by the Secretary of State that to establish or alter a generating station is likely to make a material contribution to the development of supply chains;

  • “supply chains” means the chains of suppliers of goods or services in relation to the construction, alteration, maintenance or operation of a generating station;

  • “working day” means 9 am to 5 pm on Mondays to Fridays excluding—

    1. a

      bank holidays within the meaning of section 1 of the Banking and Financial Dealings Act 19714, including those bank holidays in part only of the United Kingdom;

    2. b

      Good Friday; and

    3. c

      when it falls on a day that would otherwise be a working day, Christmas Day.

PART 2Secretary of State requiring information from the delivery body

Provision of information3

1

The Secretary of State may require the delivery body to provide information (including advice and analysis) to the Secretary of State in relation to the strike price applicable (or to be applicable) to any form of low carbon electricity generation.

2

The information which may be required under paragraph (1) includes information about how such strike prices may affect any of the following—

a

the reduction of the carbon intensity of electricity generation in the United Kingdom;

b

the security of electricity generation;

c

the cost of operation of low carbon electricity generation;

d

the price of energy payable by consumers; or

e

the funding available to the Secretary of State to support forms of low carbon electricity generation.

3

The information which may be required under paragraph (1) may include the modelling of the impacts of such strike prices on different markets within the United Kingdom.

Notice to the delivery body4

1

Where the Secretary of State requires information under regulation 3(1), the Secretary of State must give a notice (“an advice notice”) to the delivery body which sets out—

a

the information required;

b

the date by which the information, or parts of it, is to be provided;

c

whether or not the delivery body must provide a written report (“a progress report”) to the Secretary of State stating the progress being made by the delivery body to comply with sub-paragraphs (a) and (b); and

d

where a progress report is required, the date by which it is to be provided.

2

An advice notice may—

a

describe or refer to assumptions which the delivery body must apply when providing information;

b

require a methodology described or referred to in the notice to be used by the delivery body when providing any of the information required by the notice;

c

require the information to be provided in a particular form; and

d

be withdrawn by notice by the Secretary of State to the delivery body.

3

The delivery body must comply with an advice notice which is given to it.

4

The Secretary of State may in writing require the delivery body to have regard to such other matters not described or referred to in the advice notice as the Secretary of State considers relevant to the provision of information set out in the notice.

5

A written requirement under paragraph (4) must be made as soon as practicable after an advice notice is given to the delivery body.

6

The Secretary of State and the delivery body may agree a variation of any of the matters set out in an advice notice or a written requirement made under paragraph (4).

7

The Secretary of State must make publicly available an advice notice.

8

So far as practicable, the Secretary of State must consult the delivery body about the intended content of—

a

an advice notice before the notice is given; or

b

a written requirement under paragraph (4) before the requirement is made.

Non-compliance5

1

The requirements imposed under regulation 4 on the delivery body to provide by the date required by an advice notice—

a

the information required by the notice; or

b

any progress report required by the notice,

subject to paragraph (3), are to be treated as relevant requirements on the delivery body as a regulated person for the purposes of section 25 of the Electricity Act 19895.

2

Reference in paragraph (1) to a matter required by an advice notice is a reference to that requirement—

a

subject to any written requirement made under regulation 4(4); and

b

as may be varied further to regulation 4(6).

3

Where—

a

to comply with an advice notice requires the delivery body to be provided with information further to a counterparty notice or a generator notice;

b

the delivery body has given, as applicable, a counterparty notice or a generator notice; and

c

the delivery body is not provided with the information required by the counterparty notice or generator notice (“missing information”),

there is no failure to comply with paragraph (1)(a) to the extent of the missing information.

Provision of information by a CFD counterparty to the delivery body6

1

Paragraph (2) applies where the delivery body has been given an advice notice.

2

The delivery body may give a notice (“a counterparty notice”) to a CFD counterparty, requiring it to provide to the delivery body information which the delivery body reasonably believes that the CFD counterparty holds (or is entitled to obtain) and which the delivery body reasonably requires to comply with the advice notice.

3

A counterparty notice must set out—

a

the information required; and

b

the date by which the information is to be provided.

4

The information required by a counterparty notice may include information in relation to the capital costs and operational costs in respect of an eligible generator who is a party to a CFD.

5

A counterparty notice may be varied or withdrawn by notice by the delivery body to the CFD counterparty.

6

A CFD counterparty must comply with a counterparty notice which is given to it.

7

Subject to paragraph (8), the requirement imposed under paragraph (6) is to be treated as a relevant requirement on the CFD counterparty as a regulated person for the purposes of section 25 of the Electricity Act 1989.

8

Where—

a

the CFD counterparty has been given a counterparty notice but to comply with that notice the CFD counterparty needs to obtain information from an eligible generator who is a party to a CFD; and

b

the CFD counterparty is not provided with that information from the eligible generator (“missing information”),

there is no failure to comply with paragraph (6) to the extent of the missing information.

Provision of information by generators to the delivery body7

1

Paragraph (2) applies where—

a

by virtue of a counterparty notice, the delivery body has sought to obtain information from a CFD counterparty;

b

some or all of the information sought has not been provided; and

c

the delivery body reasonably believes that the information may be obtained from an eligible generator who is a party to a CFD (“a relevant generator”).

2

The delivery body may give a notice (“a generator notice”) to a relevant generator requiring the relevant generator to provide to the delivery body information which the delivery body reasonably believes that the relevant generator holds (or is entitled to obtain) and which the delivery body reasonably requires to comply with an advice notice.

3

A generator notice must set out—

a

the information required; and

b

the date by which the information is to be provided.

4

The information required by a generator notice may include information in relation to the capital costs and operational costs of the electricity generating station which is the subject of the CFD to which the relevant generator is a party.

5

A generator notice may be varied or withdrawn by notice by the delivery body to the relevant generator.

6

A relevant generator must comply with a generator notice which is given to it.

7

The requirement imposed under paragraph (6) is to be treated as a relevant requirement on the relevant generator as a regulated person for the purposes of section 25 of the Electricity Act 1989.

Confidentiality8

1

This regulation applies only to a delivery body which is not the national system operator.

2

Where the delivery body obtains information further to a generator notice (“generation information”), the delivery body must not process that information for any purpose other than to comply with an advice notice except—

a

with the consent of the generator who provided the information; or

b

as required by or under—

i

an order of the court;

ii

an enactment; or

iii

an EU obligation;

c

as required or permitted by or under—

i

a licence condition which applies to the delivery body; or

ii

a condition of an industry document to which the delivery body is a party.

3

The restriction in paragraph (2) does not apply to generation information which is publicly available (other than by breach of this regulation).

4

The restriction in paragraph (2) imposed on the delivery body is to be treated as a relevant requirement on the delivery body as a regulated person for the purposes of section 25 of the Electricity Act 1989.

5

In this regulation—

a

“industry document” means any of the following documents maintained under a licence—

i

the Balancing and Settlement Code;

ii

the Connection and Use of System Code; or

iii

the Grid Code; and

b

“licence” means a licence under section 6 of the Electricity Act 1989.

PART 3Supply chain statements and documents

Application for supply chain statements9

1

An eligible generator may make a supply chain application to the Secretary of State in respect of a generating station identified in the application (“a relevant generating station”).

2

An eligible generator who makes an application described in paragraph (1) is “an applicant”.

3

The Secretary of State must not provide a supply chain statement unless the Secretary of State is satisfied that—

a

the applicant is an eligible generator in respect of the relevant generating station; and

b

the establishment or alteration of the relevant generating station is likely to make a material contribution to the development of supply chains.

4

In deciding whether or not to provide a supply chain statement to an applicant, the Secretary of State must have regard to the extent to which the establishment or alteration of the relevant generating station is likely to support the following matters—

a

the development of competition in supply chains;

b

innovation in supply chains; and

c

the development of skills in supply chains.

Particulars of applications10

1

A supply chain application must—

a

identify the relevant generating station;

b

describe how the relevant generating station is to be established or altered;

c

set out how the applicant considers that the establishment or alteration of the relevant generating station is likely—

i

to make a material contribution to the development of supply chains; and

ii

to support the matters listed in regulation 9(4); and

d

include the information necessary in support of the matters in sub-paragraphs (a) to (c).

2

An applicant must—

a

identify any information included in, or in support of, a supply chain application which the applicant considers is commercially confidential; and

b

where such information is identified, provide reasons why the applicant considers that disclosure of that information (other than to the Secretary of State for the purposes of determining the supply chain application) may damage the commercial interests of the applicant or another person.

3

Paragraph (4) applies where—

a

the first allocation round is established by virtue of the Allocation Regulations;

b

except where regulation 12 applies, the Allocation Regulations require a supply chain statement to be provided in support of an application for a CFD; and

c

the applicant or other eligible generator in respect of the relevant generating station intends to make an application for a CFD in the first allocation round (“a first round CFD application”).

4

Where this paragraph applies the applicant must—

a

make the supply chain application by no later than 10 working days before the last date by which applications for a CFD must be made for the first allocation round; and

b

state in the supply chain application that a first round CFD application is intended to be made.

Providing supply chain statements or refusing applications11

1

Except where regulation 12 applies, the Secretary of State must as soon as practicable after a supply chain application is received by the Secretary of State give a notice to the applicant which includes—

a

a supply chain statement and the period for which the statement has effect; or

b

a refusal of the application and reasons for that refusal.

2

Where paragraph (1)(a) applies, the period for which a supply chain statement has effect is—

a

12 months from the date of the notice; or

b

where the Secretary of State is of the opinion that there is a compelling reason for the period to be longer, such longer period.

First allocation round12

1

This regulation applies only to the first allocation round established by virtue of the Allocation Regulations.

2

The Secretary of State may determine that no supply chain statements will be provided in respect of supply chain applications where a first round CFD application is to be made.

3

A determination must only be made under paragraph (2) where the Secretary of State considers that it is not possible properly to assess by the relevant date all supply chain applications where a first round CFD application is to be made.

4

Where a determination is made under paragraph (2), the Secretary of State must immediately—

a

publish that determination; and

b

give a notice of the determination to the delivery body.

5

In paragraph (3), “relevant date” means the last date by which applications for a CFD must be made for the first allocation round.

Confidentiality13

1

The Secretary of State must not disclose to any other person any information contained in a supply chain application where that disclosure may, in the opinion of the Secretary of State, damage the commercial interests of the applicant or another person, except—

a

in the case of the commercial interests of—

i

the applicant, with the consent of the applicant; or

ii

another person, with the consent of that person;

b

as required by or under—

i

an order of the court;

ii

an enactment; or

iii

an EU obligation; or

c

to a permitted person for a permitted purpose, and the Secretary of State is satisfied that arrangements have been made with that person to prevent any further disclosure of that information by that person.

2

In paragraph (1)—

  • “permitted person” means—

    1. a

      a public authority to which the Human Rights Act 19986 applies; or

    2. b

      a person providing services to the Secretary of State in relation to a permitted purpose or any officer, employee or agent of that person;

  • “permitted purpose” means—

    1. a

      to enable the Secretary of State to determine whether or not to provide a supply chain statement; or

    2. b

      to support the development of supply chains.

Documents14

The Schedule (documents) has effect, except in respect of Part 4.

PART 4Liability of the national system operator

Restricted liability in damages15

1

Paragraph (2) applies to—

a

the national system operator;

b

any director of the national system operator; and

c

any employee, officer or agent of the national system operator.

2

Subject to paragraph (3), a person to whom this paragraph applies is not liable in damages for anything done or omitted to be done in the exercise or purported exercise of the national system operator’s functions under—

a

these Regulations;

b

the Allocation Regulations; or

c

any allocation framework made by the Secretary of State pursuant to section 13(2) of the Act.

3

The exclusion of liability in paragraph (2) does not—

a

apply where the act or omission occurs in bad faith, including where the act or omission—

i

constitutes a tort which involved a wilful act or omission calculated to cause harm or loss to another person; or

ii

is fraudulent;

b

prevent an award of damages in respect of an act or omission which is—

i

unlawful by virtue of section 6(1) of the Human Rights Act 19987;

ii

a breach of a duty owed by virtue of section 27(4) of the Electricity Act 1989;

iii

a criminal offence;

iv

an infringement of a person’s intellectual property rights;

v

a breach of confidentiality, whether statutory or at common law; or

vi

a breach of contract.

Name[Minister][Secretary of State]Department of Energy and Climate Change