Part 9: Energy Smart Appliances and Load Control
Chapter 1: Introductory
Section 238: Energy smart appliances and load control
- Section 238 contains the definitions for Part 9, which is concerned with Energy Smart Appliances (ESAs) and load control. Subsections (2) and (3) define an "energy smart appliance" and the related concept of "energy smart function." Subsection (4) defines "load control signal".
Chapter 2: Energy Smart Appliances
Section 239: Energy smart regulations
- Section 239 provides the Secretary of State with the power to introduce "energy smart regulations," for ESAs in Great Britain, and to mandate they must comply with certain requirements.
- The section provides that energy smart regulations can be made for electric vehicle charge points or energy smart appliances that are used in connection with specific purposes, namely:
- Refrigeration, e.g., fridges and freezers,
- Cleaning, e.g., washing machines, dishwashers and tumble driers,
- Battery storage e.g., home batteries,
- Electrical heating or ventilation, e.g., air and ground source heat pumps and electric storage heaters, and
- Air conditioning or ventilation.
- Technical requirements can be imposed on these appliances, including but not limited to ensuring that they do not undermine the stability of the electricity system, can respond to energy smart related signals from any load controller (defined in Chapter 3 below), and that communications and personal data used by energy smart appliances are secure.
- The section provides for the prohibition of the placing on the market of appliances which do not meet the requirements and provides for enforcement activities to be undertaken.
- This section also provides the Secretary of State with the power, through regulations, to define ‘relevant electronic communications network’, and to amend the list of specified purposes applicable to the energy smart regulations.
- The section sets out the economic actors to which the requirements will apply. Relevant economic actors include any person making, selling, importing or distributing energy smart appliances, or carrying out load control.
Section 240: Prohibitions and requirements: supplemental
- Section 240 sets out that the requirements imposed by the energy smart regulations enabled by Section 239 may refer to technical standards and published documents, or a list published by the Secretary of State.
- This section specifies that the power conferred to the Secretary of State in section 239 to prohibit relevant appliances being placed on the market is restricted to non-compliant ESAs and non-smart electric heating appliances (for example, heat pumps) and electric vehicle charge points, so that the sale of these devices without smart functionality can be prohibited in Great Britain.
- The section specifies that enforcement action of any kind will not be taken against the end user of an ESA.
Section 241: Enforcement
- Section 241 sets out that the energy smart regulations include provision to ensure compliance with the requirements under the regulations, including provision to designate enforcement authorities, require that relevant economic actors maintain information and monitor compliance, and a range of investigatory powers to monitor and assess non-compliance, and stop or limit the placing on the market of appliances where non-compliance has occurred. They also allow an enforcement authority to apply to a court in connection with non-compliance, and for the court to provide a remedy. This provides for the Secretary of State to make payments, or provide resources, to the enforcement authority for the purpose of enforcing the energy smart regulations.
Section 242: Sanctions, offences and recovery of costs
- Section 242 specifies that regulations can impose a range of sanctions, including the imposition of civil penalties on economic actors for non-compliance with energy smart regulations or for providing false information. Energy smart regulations can create certain offences in relation to specific activities, such as contravening requirements, and obstructing, misleading or impersonating enforcement authorities. Offences may not be publishable with imprisonment.
- The section also allows for the enforcement body to recover costs in relation to the energy smart regulations.
Section 243: Appeals against enforcement action
- Section 243 provides that where an enforcement authority has imposed a requirement or civil penalty, this must include for a right of appeal to a court or tribunal. The right of appeal to a court of tribunal against a penalty can include, but is not limited to, provisions set out in subsection (2). Subsection (4) outlines the powers conferred on the court or tribunal to confirm, withdraw or vary the requirement or penalty.
Section 244: Regulations: procedure and supplemental
- Section 244 allows for different provisions to be made for different appliances or purposes and the ability to make exemptions under these powers.
- Subsection (3) sets out the requirement for the Secretary of State to consult before making regulations that subject an ESA to regulations or amending the list of purposes in section 239(2).
- The section sets out that the first energy smart regulations made under these powers, any amendment to the list of purposes set out in section 239(2) for which the energy smart regulations apply, or the creation of a criminal offence would be subject to the affirmative procedure. The made affirmative procedure would also be used where energy smart regulations introduce significant changes such as bringing other appliances into scope, introducing a requirement to comply with a new standard or introducing enforcement mechanisms or penalties. Any other statutory instrument regarding the energy smart regulations is subject to the negative procedure.
Chapter 3: Licensing of Load Control
Section 245: Power to amend licence conditions etc: load control
- This section allows the Secretary of State to amend existing special and standard licence conditions granted under Section 6(1) of the Electricity Act 1989 and 7A(1) and 7AB of the Gas Act 1986. It also allows the modification of electricity codes (i.e. a document maintained under electricity licences). It may be used to facilitate, promote or regulate remote load control of energy smart appliances, including by ensuring their security, where load control means communicating with devices to alter their electricity consumption or export. For example, modifying licences in the event a load control organisation is also a supplier to clarify the interaction between the two licences.
- A non-prescriptive list of specific ways in which this power may be used is given. It specifies, for instance, that the provision of load control services may be prohibited in respect of certain devices (for instance those which do not meet relevant technical specifications) or may be regulated by reference to those devices (for instance by imposing requirements for the control or configuration of devices to which load control services apply).
- This modification power can be exercised to make different provisions in relation to different classes of customer (for example domestic, small business or medium/larger businesses). The Secretary of State may also make any necessary and relevant incidental, supplementary, consequential or transitional modifications to licence conditions or documents.
- This section states that the power to modify licence conditions cannot be exercised after a period of 10 years (beginning when the power comes into force). It also allows for the Secretary of State to extend this period by up to three years at a time, subject to the affirmative procedure.
Section 246: Power to amend licence conditions etc: procedure
- This section provides that the Secretary of State must consult the holders of licences, the Gas and Electricity Markets Authority (GEMA) and others as appropriate, before making modifications. It also sets out the notification process which must be undertaken by the Secretary of State after making any modification.
Section 247: Load control: supplemental
- Standard licence conditions are licence conditions that are typically incorporated into the licences of all (or a subset of) licence holders for the relevant activity - in this case load control. Any modifications made to a standard licence condition in a particular licence using these powers, does not prevent the remainder of that licence condition in that particular licence from continuing to be a standard condition (for example, for the purposes of future modification).
Section 248: Application of general duties to functions relating to load control
- This section provides that, when exercising any of the powers under this Act to amend licences granted under the Electricity Act 1989 and Gas Act 1986, the Secretary of State is bound by the principal objective (essentially to protect the interests of electricity consumers) and general duties set out in Part 1 of each of those Acts. It also provides that modifications made to standard conditions of relevant existing licences are reflected in the sections of the Utilities Act 2000 which govern the standard conditions of those licences.
Section 249: Licensing of activities relating to load control
- This section introduces Schedule 17, which contains amendments necessary to the Electricity Act 1989 to license activities relating to load control.
