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Energy Prices Act 2022

Legal background

  1. The UK’s energy system is governed by a wide range of different pieces of legislation. A number of these are amended by this Act. The legislation being amended, and a brief description of the main changes relevant to each, is provided below to assist the reader in placing some of the details described in these Explanatory Notes in context.
  2. The Energy Act 2013 is amended for the purpose of creating the new powers in primary legislation necessary for Government to offer a new kind of Contract for Difference.
  3. The Utilities Act 2000 is amended to allow the provisions in this Act to be a source of modifications, to standard conditions of licences of the types referred to in s. 33(1) of that Act.
  4. Section 105 of the Utilities Act 2000 is amended to bring the EPG and EBRS schemes within scope of its protections on disclosure of information about individuals or particular businesses. It ensures that disclosure required for the schemes to operate effectively is permitted.
  5. The Electricity Act 1989 is amended for the purpose of ensuring the Secretary of State or the Gas and Electricity Markets Authority have regard, in the course of performing certain duties under that Act and in accordance with that Act, to the need of licence holders to be able to finance activities which are the subject of obligations imposed by the Contracts for Difference scheme.
  6. The Electricity Act 1989 and the Gas Act 1986 will be amended to include compliance with the Energy Price Guarantee domestic scheme within the list of relevant requirements which Ofgem may enforce.
  7. The Act will also engage matters that are transferred to Northern Ireland, necessitating changes to the following devolved energy legislation:
    1. The Energy (Northern Ireland) Order 2003
    2. The Electricity (Single Wholesale Market) (Northern Ireland) Order 2007

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