Data (Use and Access) Act 2025

Section 122

Schedule 16 U.K. Grant of smart meter communication licences

Part 1 U.K. Amendments of the Energy Act 2008

1 U.K. The Energy Act 2008 is amended as follows.

Commencement Information

I1 Sch. 16 para. 1 in force at Royal Assent, see s. 142(2)(c)

2 E+W+S In the italic heading before section 88, after “meters” insert “: modification of licence conditions etc by Secretary of State”.

Commencement Information

I2 Sch. 16 para. 2 in force at Royal Assent, see s. 142(2)(c)

3 E+W+S After section 91 insert—

“Grant of smart meter communication licences E+W+S

91A Grant of smart meter communication licences

(1) The Gas and Electricity Markets Authority may by regulations make provision about the procedure to be followed in relation to the grant of a smart meter communication licence.

(2) Regulations under subsection (1) may provide that the procedure is to consist of either (but not both) of the following—

(a) a determination by the Authority, on a competitive basis, of the person to whom a licence is to be granted;

(b) the selection by the Authority, on a non-competitive basis, of the person to whom a licence is to be granted.

(3) Regulations under subsection (1) may make provision by reference to a determination by the Authority or to the opinion of the Authority as to any matter.

(4) The approval of the Secretary of State is required for the making of regulations under subsection (1).

(5) In this section and in sections 91B to 91D—

• “the Authority” means the Gas and Electricity Markets Authority;

• “smart meter communication licence” means a licence under section 7AB of the Gas Act 1986 or a licence under section 6(1)(f) of the Electricity Act 1989.

91B Regulations under section 91A (1): further provision

(1) Regulations under section 91A(1)—

(a) must make provision so as to ensure that a smart meter communication licence must not be granted to a person unless the Authority is satisfied that the person would not, if granted the licence, have a financial or other interest likely to prejudice the discharge of their functions as the licence holder;

(b) may make provision about the granting of a licence to a person formed by the Authority.

(2) Any sums received by the Authority under regulations under section 91A(1) are to be paid into the Consolidated Fund.

(3) Regulations made in reliance on section 91A(2)(a) may—

(a) provide for the publication of a proposal to grant a smart meter communication licence;

(b) provide for the inclusion in such a proposal of an invitation to apply for such a licence;

(c) impose conditions in relation to the making of an application for a licence;

(d) impose restrictions in relation to persons who may apply for a licence;

(e) impose requirements as to the period within which applications must be made;

(f) make provision for regulating the manner in which applications are to be considered or determined;

(g) confer on the Authority functions in connection with tender exercises.

(4) Regulations in reliance on section 91A(2)(a) may also include provision—

(a) enabling the Authority to require payments to be made, in the form and manner prescribed, in respect of costs incurred or likely to be incurred by the Authority for the purposes of a tender exercise;

(b) about the effect on a person’s participation in a tender exercise of a failure to comply with a requirement imposed by virtue of paragraph (a);

(c) about the circumstances in which the tender exercise is to stop as a result of such a failure.

(5) In this section—

• “prescribed” means prescribed in or determined under regulations under section 91A(1);

• “tender exercise” means the procedure set out in regulations made in reliance on section 91A(2)(a) for determining to whom a particular smart meter communication licence is to be granted.

91C Power of Gas and Electricity Markets Authority to amend licence conditions etc

(1) The Authority may modify—

(a) a condition of a particular relevant licence;

(b) the standard conditions incorporated in relevant licences of a particular type;

(c) a document maintained in accordance with the conditions of a relevant licence, or an agreement that gives effect to a document so maintained.

(2) The Authority may exercise the power in subsection (1) only if the Authority considers it necessary or expedient to do so for the purposes of, or in preparation for, the grant of a smart meter communication licence.

(3) The power conferred by subsection (1)—

(a) may be exercised to make different provision for different purposes or different areas;

(b) may be exercised generally, only in relation to specified cases or subject to exceptions (including provision for a case to be excepted only so long as specified conditions are satisfied);

(c) includes a power to make incidental, supplementary, consequential or transitional modifications.

(4) Provision included in a licence in reliance on subsection (1)—

(a) need not relate to the activities authorised by the licence;

(b) in the case of a licence for the purposes of section 5 of the Gas Act 1986, may do any of the things authorised by section 7B(5) of that Act (which apply to the Authority’s power with respect to licence conditions under section 7B(4)(a));

(c) in the case of a licence for the purposes of section 4 of the Electricity Act 1989, may do any of the things authorised by section 7(2) to (4) of that Act (which apply to the Authority’s power with respect to licence conditions under section 7(1)(a)).

(5) A modification under subsection (1) of part of a standard condition of a licence does not prevent any other part of the condition from continuing to be regarded as a standard condition for the purposes of Part 1 of the Gas Act 1986 or Part 1 of the Electricity Act 1989.

(6) Where the Authority makes modifications under subsection (1) of the standard conditions of a licence of any type, the Authority must—

(a) make (as nearly as may be) the same modifications of those standard conditions for the purposes of their incorporation in licences of that type granted after that time, and

(b) publish the modifications.

(7) In this section—

• “relevant licence” means a licence for the purposes of section 5 of the Gas Act 1986 or section 4 of the Electricity Act 1989 (prohibitions on unlicensed activities);

• “specified” means specified in the modification.

91D Power under section 91C: procedure

(1) Before making a modification under section 91C, the Authority must consult—

(a) the holder of any licence being modified,

(b) the Secretary of State, and

(c) such other persons as the Authority considers appropriate.

(2) Subsection (1) may be satisfied by consultation undertaken before the passing of the Data (Use and Access) Act 2025.

(3) If, after carrying out the consultation, the Authority decides to make the modification, it must publish a notice about the decision which—

(a) states that the Authority has decided to make the modification;

(b) sets out the modification and its effect;

(c) specifies the date from which the modification has effect;

(d) states how the Authority has taken account of any representations made during the consultation;

(e) states the reason for any differences between the modification consulted on and the proposed modification.

(4) The notice must be published in such manner as the Authority considers appropriate for bringing it to the attention of those likely to be affected by the making of the modification.”

Commencement Information

I3 Sch. 16 para. 3 in force at Royal Assent, see s. 142(2)(c)

4 U.K. In section 104 (subordinate legislation)—

(a) in subsection (1), for “or the Scottish Ministers” substitute “, the Scottish Ministers or the Gas and Electricity Markets Authority”;

(b) in subsection (3), at the end insert “, and

(c) regulations made by the Gas and Electricity Markets Authority under section 91A.”

Commencement Information

I4 Sch. 16 para. 4 in force at Royal Assent, see s. 142(2)(c)

Prospective

Part 2 E+W+S Amendments of other legislation

Gas Act 1986 E+W+S

5 (1) The Gas Act 1986 is amended as follows.

(2) In section 7B (licences: general)—

(a) omit subsection (2B);

(b) in subsection (2C), after “for” insert “a smart meter communication licence or”.

(3) In section 41HC (competitive tenders for licences for new licensable activities), in subsection (1), after “activities” insert “, other than a smart meter communication licence,”.

Commencement Information

I5 Sch. 16 para. 5 not in force at Royal Assent, see s. 142(4)

Electricity Act 1989 E+W+S

6 (1) The Electricity Act 1989 is amended as follows.

(2) In section 6A (procedure for licence applications)—

(a) in subsection (1)(a), for “subsections (1A) and (1B)” substitute “subsection (1B)”;

(b) omit subsection (1A);

(c) in subsection (1B), after “for” insert “a smart meter communication licence or”.

(3) In section 56FC (competitive tenders for licences for new licensable activities), in subsection (1), after “activities” insert “, other than a licence under section 6(1)(f) (smart meter communication licence),”.

Commencement Information

I6 Sch. 16 para. 6 not in force at Royal Assent, see s. 142(4)

Electricity and Gas (Competitive Tenders for Smart Meter Communication Licences) Regulations 2012 E+W+S

7 The Electricity and Gas (Competitive Tenders for Smart Meter Communication Licences) Regulations 2012 (S.I. 2012/2414) are revoked.

Commencement Information

I7 Sch. 16 para. 7 not in force at Royal Assent, see s. 142(4)