Energy Prices Act 2022

Commentary on provisions of Act

Reduction of domestic energy bills in England, Wales and Scotland

Section 1: Domestic electricity and gas price reduction schemes for Great Britain

26. This section gives the Secretary of State power to establish the Energy Price Guarantee (EPG) schemes for electricity and for gas. Such schemes have already been established and operational from 1 October under contracts ("Scheme Documents") with suppliers entered into on a voluntary basis. 1 The provisions in the Act will put the schemes on a more secure statutory footing. This includes by requiring suppliers to apply to join, remain in and comply with the schemes, and for Ofgem to enforce any non-compliance.
27. Subsections (1) and (3) confer the powers to make the schemes. Subsections (2) and (4) define what the schemes are.
28. Subsection (5) refers to how the scheme reduction may operate. The current Scheme Documents provide, in high level summary, that:
    1. the Secretary of State will set the level of and pay financial support to electricity and gas suppliers to allow them to make reductions to the energy unit prices charged to consumers;
    2. suppliers must pass to consumers, by reducing on a per kilo Watt hour (p/kWh) basis, the tariffs which would otherwise be charged, the whole of the support payments made to suppliers under the schemes.
29. Subsection (6) provides that the Secretary of State may amend or revoke a scheme, for instance to change the eligible tariffs or the support rate. The Scheme Documents between the Secretary of State and energy suppliers already give the Secretary of State the ability to make, modify and end the scheme.
30. Subsection (7) constrains the statutory modification power, so that it must be used consistently with the terms outlined in the Scheme Document.
31. Subsection (8) provides an exception to subsection (7) where the Secretary of State modifies the Scheme Documents to prevent profiteering. In such circumstances they need not comply with the terms on modification set out in the scheme.
32. Subsection (9) refers to the sunsetting provisions in Schedule 6.

Section 2: GB electricity scheme: supplementary provision

33. This section enables the Secretary of State to make regulations designating a domestic electricity price reduction scheme for Great Britain. The effect of designation is that the additional provisions set out in section 2 apply in relation to the designated scheme.
34. Subsection (1) provides the designation power. Section 2 applies to the designated scheme as it has effect from time to time.
35. Subsection (2) imposes duties on electricity suppliers in relation to applying to join the designated scheme, and once joined to remain in and comply with the scheme (unless they leave in accordance with the scheme). Government expects all current suppliers to have joined the scheme by the time this section comes into force. This provision ensures that any new suppliers who enter the market are required to apply to join the scheme.
36. Subsection (3) requires the Secretary of State to publish the designated scheme as it has effect from time to time, so far as the Secretary of State considers it appropriate to do so.
37. Subsection (4) refers to paragraph 6(g) of Schedule 6A to the Electricity Act 1989 (which is inserted by paragraph 2 of Schedule 7 to the Act). Paragraph 6(g) of Schedule 6A to the Electricity Act 1989 provides that the duties set out in subsection (2) for suppliers to apply to, remain in and comply with the designated scheme are "relevant requirements" and so enforceable by Ofgem (using its powers in Part 1 of the Electricity Act 1989). The exception to this is where non-compliance with the terms of the scheme involves the amounts payable by or to the Secretary of State under the scheme (which is to be enforced under the terms of the Scheme Documents). Subsection (4) makes clear that such statutory enforcement does not prevent other remedies for non-compliance being pursued, for instance in the law of contract.
38. Subsection (5) provides that the Secretary of State is not liable in the law of contract for things done or omitted in the performance of the designated scheme unless the liability relates to payment of an amount under the scheme.
39. Subsection (6) provides that a domestic electricity price reduction scheme for Great Britain that was established before the power to establish such schemes under section 1(1) came into force may be designated under Section 2. As noted above, an electricity scheme was established and operational from 1 October 2022. This subsection makes clear that this scheme may be designated.
40. Subsection (7) makes it clear that no statutory enforcement is permitted in relation to non-compliance occurring before the scheme was designated.
41. Subsection (8) states that regulations under section 2 are subject to the negative procedure.

Section 3: GB gas scheme: supplementary provision

42. Section 3 provides equivalent provision in relation to a domestic gas price reduction scheme in Great Britain to Section 2 in relation to an electricity scheme. It enables the Secretary of State to make regulations designating a domestic gas price reduction scheme for Great Britain. The effect of designation is that the additional provisions set out in section 3 apply in relation to the designated scheme.
43. Subsection (1) provides the designation power. Section 3 applies to the designated scheme as it has effect from time to time.
44. Subsection (2) imposes duties on gas suppliers in relation to applying to join the designated scheme, and once joined to remain in and comply with the scheme (unless they leave in accordance with the scheme). Government expects all current suppliers to have joined the scheme by the time this section comes into force. This provision ensures that any new suppliers who enter the market are required to apply to join the scheme.
45. Subsections (3) and (4) make similar provision for gas shippers. Not all shippers are required to enter the designated scheme in order for it to operate effectively, only those shippers who have contracts with gas suppliers who are party to the scheme and have relevant information to provide in order for the scheme to operate effectively. Therefore, subsection (3) requires a gas shipper to apply to join the designated scheme if it receives a written request to do so from another party to the scheme, and the scheme would not operate effectively if that gas shipper was not a party. The gas shipper must make the application as soon as reasonably practicable after receiving the request.
46. Subsection (4) requires a gas shipper, once joined, to remain in and comply with the designated scheme (unless it leaves in accordance with the scheme).
47. Subsection (5) requires the Secretary of State to publish the designated scheme as it has effect from time to time, so far as the Secretary of State considers it appropriate to do so.
48. Subsection (6) refers to paragraph 4(f) of Schedule 4B to the Gas Act 1986 (which is inserted by paragraph 1 of Schedule 7 to the Act). Paragraph 4(f) of Schedule 4B to the Gas Act 1986 provides that the duties set out in subsections (2), (3) and (4) for gas suppliers and gas shippers to apply to, remain in and comply with the designated scheme are "relevant requirements" and so enforceable by Ofgem (using its powers in Part 1 of the Gas Act 1986). The exception to this is where non-compliance with the terms of the scheme involves the amounts payable by or to the Secretary of State under the scheme (which is to be enforced under the terms of the Scheme Documents). Subsection (6) makes clear that such statutory enforcement does not prevent other remedies for non-compliance being pursued, for instance in the law of contract.
49. Subsection (7) provides that the Secretary of State is not liable in the law of contract for things done or omitted in the performance of the designated scheme, unless the liability relates to payment of an amount under the scheme.
50. Subsection (8) provides that a domestic gas price reduction scheme for Great Britain that was established before the power to establish such schemes under section 1(3) came into force may be designated under Section 3. As noted above, a gas scheme was established and operational from 1 October 2022. This subsection makes clear that this scheme may be designated.
51. Subsection (9) makes it clear that no statutory enforcement is permitted in relation to non-compliance occurring before the scheme was designated.
52. Subsection (10) states that regulations under section 3 are subject to the negative procedure.

Section 4: Interpretation of sections 1 to 3

53. Section 4 provides interpretative provision in relation to sections 1 to 3. Subsections (4) and (9) ensure that domestic electricity or gas price reduction schemes in Great Britain only concern supply to domestic premises. Subsection (11) makes it clear that a reference to a charge includes a standing charge.

Reduction of domestic energy bills in Northern Ireland

Section 5: Domestic energy price reduction schemes for Northern Ireland

54. This section gives the Secretary of State power to establish the energy price guarantee schemes for electricity and for gas for Northern Ireland. These powers are similar to the sections in the EPG GB scheme. For Northern Ireland, these powers need to be in place to deliver the scheme in Northern Ireland since the Secretary of State has no common law powers, for example to enter into contracts, in respect of transferred matters. Energy policy is a transferred matter in Northern Ireland.
55. Subsections (1) and (3) confer the powers to make the schemes. Subsections (2) and (4) define what the schemes are.
56. Subsection (5) provides that the Secretary of State may amend or revoke a scheme for instance the eligible tariffs and the discount rate. The EPG contracts ("Scheme Documents") between the Secretary of State and energy suppliers will set out the circumstances in which the Secretary of State may make, modify and end the scheme.
57. Subsection (6) constrains this power, so that it must be used consistently with the terms outlined in the Scheme Document.
58. Subsection (7) provides the Secretary of State with the power to modify the Scheme Documents to prevent profiteering.

Section 6: NI electricity scheme: supplementary provision

59. This section imposes various duties and provides various powers in relation to designated electricity schemes in Northern Ireland.
60. Subsection (1) provides that the duties and powers apply to electricity price reduction schemes that are designated in regulations made by the Secretary of State.
61. Subsection (2) imposes duties on suppliers in relation to joining the scheme, remaining in it, and complying with its terms.
62. Subsection (3) enables the Utility Regulator to give directions to suppliers with regards to the Scheme.
63. Subsection (4) requires domestic electricity suppliers to comply with any direction under subsection (3).
64. Subsection (5) requires the Secretary of State to publish the scheme as it has effect from time to time.
65. Subsection (6) makes clear that statutory enforcement does not prevent other remedies for instance civil remedies). It is intended that the scheme document will provide that the Secretary of State and Scheme Administrator if applicable, are each entitled to the remedies of injunction, specific performance and other equitable relief for any threatened or actual breach by the supplier of its obligations under the scheme document.
66. Subsection (7) provides that the Secretary of State is not liable in the law of contract for things done or omitted in the performance of the scheme unless the liability relates to payment of an amount under the scheme.
67. Subsection (8) states that regulations under this section are subject to the negative resolution procedure.

Section 7: NI gas scheme: supplementary provision

68. This section imposes various duties and provides various powers in relation to designated gas schemes in Northern Ireland.
69. Subsection (1) provides that the duties and powers will apply to gas price reduction schemes designated in regulations made by the Secretary of State.
70. Subsection (2) imposes duties on suppliers in relation to joining the scheme, remaining in it, and complying with its terms.
71. Subsection (3) provides for the Utility Regulator to give directions to suppliers with regards to the Scheme. Subsection (4) requires domestic gas suppliers to comply with any direction under subsection (3).
72. Subsection (5) requires the Secretary of State to publish the scheme as it has effect from time to time.
73. Subsection (6) provides that statutory enforcement does not prevent other remedies for instance civil remedies). It is intended that the scheme document will provides that the Secretary of State and Scheme Administrator if applicable, are each entitled to the remedies of injunction, specific performance and other equitable relief for any threatened or actual breach by the Supplier of its obligations under the scheme document.
74. Subsection (7) provides that the Secretary of State is not liable in the law of contract for things done or omitted in the performance of the scheme unless the liability relates to payment of an amount under the scheme.
75. Subsection (8) states that regulations under this section are subject to negative resolution procedure.

Section 8: Interpretation of sections 5 to 7

76. Subsections (4) and (7) provide powers to set out what is meant in terms of Northern Ireland domestic electricity and gas supply in regulations.

Reduction of non-domestic energy bills in England, Wales and Scotland

Section 9: Reduced energy charges for non-domestic customers in Great Britain

77. Subsections (1) and (2) give the Secretary of State the power through regulations to reduce the amount non-domestic customers would otherwise be charged for electricity and gas supply and reimburse non-domestic energy suppliers in respect of reductions applied.
78. Subsection (3) gives the Secretary of State the power to make regulations to set out how charges are to be reduced, by an amount calculated by reference to the difference between the wholesale price paid for electricity or gas and a notional wholesale price for electricity or gas, if that notional price is lower than the wholesale price paid.
79. Subsection (4) gives the Secretary of State the power to make regulations to provide for what the wholesale price is to be or how it is to be calculated.
80. Subsection (5) provides that the Secretary of State may review the operation of regulations under this section.
81. Subsection (6) sets out that regulations under this section are subject to the affirmative procedure.
82. Subsection (7) sets out that Schedule 1 describes the kinds of matters which may be provided for by regulation under this section.
83. Subsection (8) sets out that Schedule 6 describes the time limits on the exercise of the powers conferred by this section.

Section 10: Interpretation of section 9 and Schedule 1

84. This section is self-explanatory.

Reduction of non-domestic energy bills in Northern Ireland

Section 11: Reduced energy charges for non-domestic customers in Northern Ireland

85. Subsections (1) and (2) give the Secretary of State the power through regulations to reduce the amount Northern Ireland non-domestic customers would otherwise be charged for electricity or gas supply and reimburse Northern Ireland non-domestic energy suppliers in respect of reductions applied.
86. Subsection (3) gives the Secretary of State the power to make regulations to set out how charges are to be reduced, by an amount calculated by reference to the difference between the wholesale price paid (or treated as paid) for electricity or gas and a notional wholesale price for electricity or gas, if that notional price is lower than the price paid or treated as paid.
87. Subsection (4) gives the Secretary of State the power to make regulations to provide for the wholesale price paid to be the actual wholesale price paid (or treated as paid), and for that wholesale price to be specified in or under the regulations or determined in accordance with the regulations. Subsection (4)(b) provides for this notional wholesale price to be specified in or under the regulations or determined in accordance with the regulations.
88. Subsection (5) gives the Secretary of State power to review operation of regulations under this section.
89. Subsection (6) sets out that regulations under this section are subject to the affirmative procedure.
90. Subsection (7) sets out that Schedule 2 describes the kinds of matters which can be provided for by regulation under this section.
91. Subsection (8) sets out that Schedule 6 describes the time limits on the exercise of the powers conferred by this section.

Section 12: Interpretation of section 11 and Schedule 2

92. This section is self-explanatory. Subsections (4) and (7) provide powers to set out what is meant in terms of Northern Ireland non-domestic electricity and gas supply in regulations.

Support for meeting energy costs etc

Section 13: Power of the Secretary of State to give support for meeting energy costs etc

93. This section enables the Secretary of State to:
    1. provide support for meeting costs related to the use of energy;
    2. enable or encourage the efficient use of energy;
    3. provide support for meeting costs related to the supply of energy;
    4. enable or encourage the supply of energy.
94. The Secretary of State can provide this support by providing financial assistance to support any person or taking steps directly (for example, to acquire energy or purchase storage capacity directly) and to cover any incidental costs incurred.
95. Subsection (2) provides that the Secretary of State may take other steps as appropriate in response to the energy crisis. 2
96. The section also provides that any steps taken under this section on or after 1 January 2022 but before the Act comes into force are authorised under the Act.
97. Schedule 6 details the expiry of the powers.

Section 14: Procedure and reporting in connection with section 13

98. Subsection (2) provides that financial expenditure by the Secretary of State under Section 13(2) is subject to a financial cap set to £100 million for each individual project, unless expenditure in excess of that is agreed by the House of Commons.
99. The requirement to obtain House of Commons approval can be disapplied if the Secretary of State is satisfied that the additional spending required is urgent and that it is not reasonably practicable in such circumstances to obtain the approval of the House of Commons. The Secretary of State must then lay a statement before Parliament about the spending as soon as reasonably practicable.
100. Subsection (5) sets out a requirement for the Secretary of State to report on any spending under Section 13 on a quarterly basis.

Section 15: Role of other bodies in giving support for meeting energy costs etc

101. This section will provide for a designated body to take action in support of a step taken by the Secretary of State under Section 13(1), including the delivery of financial assistance for energy bills in Great Britain and Northern Ireland.
102. This section provides for the appointment of designated bodies to act on the Secretary of State’s behalf to receive and distribute monies, including undertaking necessary monitoring and evaluation and cost recovery steps. This section allows the Secretary of State to make, by regulations, provisions in connection with designated bodies taking action.
103. A designated body for the purposes of this section can be a local authority, a heat supplier, or any other statutory body so designated.

Reducing the price of electricity

Section 16: Temporary requirement on electricity generators to make payments

104. Subsections (1) and (2) enable the Secretary of State to make regulations which impose a requirement on specified electricity generators (or classes of such generators) to make periodic payments to a payment administrator. The purpose of this power is to obtain funds from certain electricity generators so that:
     1. those funds can be paid to electricity suppliers in connection with reducing the costs of electricity to customers; or
     2. to meet expenditure incurred or to be incurred by the Secretary of State in reducing the cost of electricity to customers (under other schemes outlined in these Notes).
105. Subsection (3) sets out a non-exhaustive list of matters which may be included in regulations made under subsection (1). Those matters are:
     • A method for calculating the payments. Subsection (4) sets out that payments must be calculated by reference to the quantity of electricity generated during the specified period by the relevant generating station with which the relevant electricity generator is concerned;
     • The time at which payments should be made;
     • A requirement for advance payment in respect of the liability to make periodic payments and about the balancing payments;
     • The application of interest on late payments and penalties for late payments;
     • The recovery by the payment administrator of payments, interest or penalties as a civil debt;
     • The transfer of payments received by the payment administrator either to suppliers or into the Consolidated Fund;
     • Requirements imposed on suppliers receiving payments from a payment administrator as to how and when customers should receive the benefit from suppliers;
     • The retaining by the payment administrator of amounts received for the purpose of meeting expenditure incurred by the payment administrator in exercising functions under the regulations;
     • Conferring functions in connection with the application, monitoring or enforcement of the regulations on the Secretary of State, a payment administrator, GEMA, the Northern Ireland Regulator or any other person;
     • Conferring functions in connection with the application, monitoring or enforcement of the regulations on a person designated by the Secretary of State in accordance with the regulations;
     • Conferring powers on any person to require information for the purpose of exercising their functions under the regulations;
     • The calculation or determination of anything in accordance with the regulations;
     • Provision in regulations for an appeal to be made against any calculation, determination, designation or other decision made under the regulations; and
     • Dealing with the consequences of, or prohibiting or otherwise regulating, transactions or arrangements that undermine the effectiveness of the regulations.

106. Subsection (5) allows the Secretary of State to set out when an electricity generator is no longer required to make payments in relation to these regulations.
107. Subsection (6) sets out that these regulations may, as applicable, be enforceable by GEMA and the Northern Ireland Regulator, as if they were relevant requirements on a regulated person for purposes of section 25 of the Electricity Act 1989 and section 41A of the Energy (Northern Ireland) Order 2003, respectively.
108. Subsection (7) states that the first set of regulations made under these powers is subject to the affirmative procedure.
109. Subsection (8) states that any subsequent regulations are then subject to the negative procedure.
110. Subsection (9) states that Schedule 6 contains provisions regarding the time limits on the exercise of these powers.
111. Subsection (10) states the definitions of various terms used in this section.

Section 17: Power to require information in connection with regulations under section 16

112. Subsection (1) gives the Secretary of State the power to direct an electricity generator to provide them with such specified information as they may reasonably require in connection with the making of regulations under Section 16.
113. Subsection (2) states that any such direction must be in writing.
114. Subsection (3) states an electricity generator must comply with the direction, as far as reasonably practical, within the specified period, and in the specified form and manner.
115. Subsection (4) provides that a direction under this section is enforceable by the Secretary of State in civil proceedings.
116. Subsection (5) of this section sets out what is meant by each of the terms in this section.

Section 18: Contracts for difference

117. Subsection (2) sets out amendments to the Energy Act 2013 in relation to the existing Contracts for Difference (CfD) regime. This includes at Section 6 extending the purpose of the CfD regulations to make clear that encouraging low carbon generation includes encouraging the continuation of, or an increase in, low carbon electricity generation at existing generating stations.
118. Subsection (3) amends Section 7 of the Energy Act 2013 to allow for the designation of a different Counterparty for any future CfD scheme used for this extended purpose.
119. Subsection (4) amends Section 17 of the Energy Act 2013 to provide a power for the Secretary of State to make regulations requiring that customers of an electricity supplier benefit, in accordance with those regulations, from payments made to the supplier by the CfD Counterparty.
120. Subsection (5) amends Section 19 of the Energy Act 2013 to allow regulations to: require an electricity supplier to provide the Secretary of State or others with information; for the Authority and the Northern Ireland Authority for Utility Regulation to require that they be provided with information by the CfD counterparty or electricity suppliers; and for the CfD Counterparty to require information to be provided by those Authorities.

Passing on the benefits of reductions and other support

Section 19: Requirement to pass through energy price support to end users

121. This section will provide the Secretary of State with a power, by regulations, to impose pass through requirements on persons who receive energy price support (defined in the section as financial assistance provided by way of (a) a payment made to a person in connection with their energy costs, (b) a reduction in the amount to be paid by a person for energy, or by another mechanism to or in respect of a person under this Act or any scheme established under it, where the assistance is provided in response to the energy crisis).
122. Pass through requirements on intermediaries (PRI) will oblige the subjects of the regulations ("Intermediaries", who have received energy price support) to pass through the benefit obtained to classes of end users (who are the intended beneficiaries of the relevant schemes) in accordance with the terms of regulations. The section enables regulations to provide that an end user may recover from an Intermediary an amount specified or determined in accordance with the regulations if they have not received it by a specified time.
123. In addition to requirements about how the scheme benefit should be passed through, regulations may oblige the Intermediary to provide information to end users to enable them to understand and enforce the PRI and may require Intermediaries to provide information to the Secretary of State for the purposes of monitoring, audit and keeping the PRI under review.
124. This section will require all heat networks to pass through to consumers cost reductions which it has received through the Energy Bill Relief Scheme (or for heat networks in Northern Ireland, the Northern Ireland equivalent of the EBRS).
125. It also provides for regulations to appoint an Alternative Dispute Resolution body which will handle complaints. The Energy Ombudsman is expected to be appointed to investigate complaints raised by consumers against their heat network if they consider their heat network has not complied with requirements under this section.

The domestic energy tariff cap

Section 20: Domestic gas and electricity tariff cap

126. This section introduces Schedule 3 which makes modifications to the Domestic Gas and Electricity (Tariff Cap) Act 2018 to support the operation of the energy price guarantee in Great Britain.

Regulation of energy markets

Section 21: Power of Secretary of State to modify energy licences etc

127. Section 21 will enable the Secretary of State to modify an energy licence (including standard licence conditions) and associated documentation by issuing a Notice setting out the modification and its effect and specifying the date from which the modification will take effect. This power would enable the Secretary of State to modify licence conditions as necessary to respond to the current energy crisis and in connection with any of the schemes established under the Act. For example, the Secretary of State could introduce a licence condition into Northern Ireland electricity suppliers’ licences to facilitate delivery of schemes in Northern Ireland.

Section 22: Power of Secretary of State to give directions

128. Section 22 will enable the Secretary of State to issue Directions in response to the energy crisis to the Northern Ireland Regulator and persons who hold an energy licence. Any Directions issued can be varied and revoked by subsequent Directions. The power includes the ability for the Secretary of State to issue Directions, including but not limited to matters related to electricity supplier licence conditions, which includes the terms of delivery of relevant support schemes by parties in scope. When a Direction conflicts with a requirement under other legislation or instrument, subsection (5) requires the person who is being directed to disregard the requirement so that they can carry out the Direction.

Section 23: Regulation of the Northern Ireland energy market

129. This section notes that Schedule 4 contains provisions regarding regulation of the Northern Ireland energy market.

Final provisions

Section 24: Concurrent exercise of powers by the Department for the Economy

130. This section is self-explanatory.

Section 25: Time limits on exercise of certain powers under this Act

131. This section is self-explanatory.

Section 26: Regulations

132. This section provides that regulations made under this Act are to be made by statutory instrument.
133. Subsection (2) provides that, where regulations are made under this Act, those regulations may make different provision for different purposes or cases, and may also make incidental, supplementary, consequential, transitional, transitory or saving provision.
134. This section makes further provision about the Parliamentary procedure associated with regulations.

Section 27: Consequential provision etc

135. This section confers on the Secretary of State regulation-making powers to make consequential amendments which arise from this Act, or from regulations made under it; and to make appropriate provision in connection with a domestic energy price reduction scheme, or anything done or proposed to be done under, or given effect by, section 13 (power of the Secretary of State to give support for meeting energy costs etc), any other provision of this Act and any regulations under this Act.
136. This section also gives the Secretary of State a regulation-making power to ensure provision can be made where schemes under the Act come to an end or where administration of a scheme is transferred from the Secretary of State to the Department for the Economy (or vice versa) to ensure the schemes can continue to be effectively delivered.
137. Regulations under this section may amend provision made by primary legislation that was passed before this Act is enacted or in the same session of Parliament as this Act. The amendments that can be made include amendments to legislation in devolved areas.

Section 28: Interpretation

138. This section provides information on how terms which are used throughout the Act should be interpreted. Separate interpretation provisions are found in other provisions of the Act where those terms only appear in those provisions.

Section 29: Application to the Crown

139. This section provides that this Act (once enacted) will bind the Crown.

Section 30: Extent, commencement and short title

140. This section sets out the extent of the Act: Annex A provides further information. The section also provides that the Act comes into force on the day on which it is passed, apart from Section 18 which will come into force two months after the day on which the Act is passed. It further confirms the short title by which the Act (once enacted) may be cited.

Schedule 1 – Non-domestic relief regulations for Great Britain

141. Schedule 1 sets out the particular kinds of provision that may be made by regulations under Section 9, including the application of GB non-domestic relief regulations, delegation of powers, powers and duties that may be imposed or conferred (including in relation to information), modification of contracts, enforcement, exclusion of liability, avoidance of abuse or unreasonable reliance on support schemes and provisions for disadvantaged customers.

Schedule 2 – Non-domestic relief regulations for Northern Ireland

142. Schedule 2 sets out the particular kinds of provision that may be made by regulations under Section 11, including the application of Northern Ireland non-domestic relief regulations, delegation of powers, powers and duties that may be imposed or conferred (including in relation to information), modification of contracts, enforcement, exclusion of liability, avoidance of abuse or unreasonable reliance on support schemes and provisions for disadvantaged customers.

Schedule 3 – Domestic Gas and Electricity (Tariff Cap) Act 2018

143. Schedule 3 sets out the modifications to the Domestic Gas and Electricity (Tariff Cap) Act 2018 to support the operation of the Energy Price Guarantee. It sets out that the default tariff cap will cease to have effect upon notice given by the Secretary of State.

Schedule 4 – Regulation of the Northern Ireland energy market

144. This schedule disapplies existing consultation and standstill requirements set out in Article 14 of the Electricity (NI) Order 1992 and of the Gas (Northern Ireland) Order 1996 which usually have to be followed when the Utilities Regulator modifies licence conditions. These requirements are disapplied only in relation to a response during the energy crisis. If the Department for the Economy directs the Utilities Regulator to not exercise this power, the Utilities Regulator shall comply with that direction.

Schedule 5 – Powers and expiry of powers in respect of Northern Ireland

145. Paragraph 1 sets out which provisions in the Act may also be exercised concurrently in respect of Northern Ireland by the Department for the Economy. Paragraph (2) sets out limitations on the exercise of some of those powers. Paragraph (4) provides that, when a power conferred by the Act to make regulations is exercisable concurrently by the Department for the Economy, the provision made by the Department must be within the devolved competence of the Northern Ireland Assembly, as defined in that paragraph. The schedule makes further provision regarding the expiry of powers and relevant definitions.

Schedule 6 – Time limits on the exercise of certain powers under this Act

146. This Schedule provides for the expiry of the exercise of certain powers under the Act and sets out when the expiry of each of those powers will occur. There is also provision in relation to the possibility of extending the time period for which the powers are available.
147. Differing provision is made for the expiry of powers in respect of the following:
     • Domestic electricity price reduction schemes for Great Britain;
     • Domestic gas price reduction schemes for Great Britain;
     • Domestic electricity price reduction schemes for Northern Ireland;
     • Domestic gas price reduction schemes for Northern Ireland;
     • Reduced energy charges for non-domestic customers in Great Britain;
     • Reduced energy charges for non-domestic customers in Northern Ireland;
     • Power of the Secretary of State to give support for meeting costs etc;
     • Temporary requirement on electricity generators to make payments.

Schedule 7 – Amendments of legislation

Part 1 – Acts of Parliament

148. This Part of the schedule sets out the amendments made by the Act to the Gas Act 1986, the Electricity Act 1989, and the Utilities Act 2000.

Part 2 – Northern Ireland legislation

149. This Part sets out the amendments made by the Act to the Energy (Northern Ireland) Order 2003 and the Electricity (Single Wholesale Market) (Northern Ireland) Order 2007. In the view of the Government the proposed amendments are compatible with the Northern Ireland Protocol.