The Energy Act 2016 (Commencement No. 1 and Savings Provisions) Regulations 2016

EXPLANATORY NOTE

(This note is not part of the Regulations)

These Regulations bring into force specified provisions of the Energy Act 2016 (c. 20) (“the Act”). These are the first commencement regulations made under the Act. The dates of commencement of certain other provisions are set out in section 84 of the Act.

Regulation 2 brings into force, on the day after the day on which this instrument is made, subsections (2) to (6) of section 2, in order that regulations can be made to transfer functions to the OGA. Subsections (3) and (4) of section 66 are also commenced, so that the requirement to consult before making regulations under subsection (1) of section 66 can be fulfilled. The regulation making power itself will be brought into force in a later set of commencement regulations. Regulation 2 also brings into force subsection (4) of section 1, which explains that “the OGA” is the abbreviation for the Oil and Gas Authority.

Regulation 3 brings into force on 12 July 2016 subsections (1) to (3) of section 1, and sections 3, 4, 5, 13, 14, 78 and 83 of the Act.

Commencing sections 3, 4, 5, 13, 14 and 83 of the Act will enable the relevant schemes and regulations to be made to prepare for the transfer of functions to the OGA. This covers a scheme to transfer property, rights and liabilities to the OGA, a scheme to transfer staff to the OGA and regulations to provide for a levy to be imposed on licence holders. Section 1 is commenced in preparation for the transfer of staff and functions to the OGA. Section 83 is commenced so that the obligation to consult the OGA under section 13(8) before making regulations providing for a levy is disapplied.

Section 78 of the Act, brought into force by regulation 3, removes a class of generating stations from the requirement to obtain consent under section 36 of the Electricity Act 1989 (c. 29). Section 36 of the Electricity Act 1989 provides that generating stations may not be constructed, extended or operated without the Secretary of State’s consent under section 36(1). Onshore wind generating stations in England and Wales have already been exempted from this requirement since 1st March 2016 by S.I. 2006/21, as amended by S.I. 2016/450, Orders under section 36(4) of the Electricity Act 1989. Those Orders are revoked, as the provisions put in place by those Orders are replaced by section 78 of the Act and the savings provisions in these Regulations.

Regulation 4 ensures that the provisions of section 36 of the Electricity Act 1989 will continue to apply so far as consents granted before 1st March 2016 (the date of the original Order, S.I. 2016/21, being replaced by section 78 of the Act and the savings provisions of these Regulation) are concerned, including where those consents are varied. Regulation 4 also provides for section 36 to continue to apply where a refusal to grant consent before 1st March 2016 is subsequently quashed by order of a court, so as to allow those applications to be redetermined under section 36 of the Electricity Act 1989.

An impact assessment of the effect that the Act will have on the costs of business and the voluntary sector has been produced, and a copy is available at www.legislation.gov.uk. No separate impact assessment has been produced for this instrument.