Energy Prices Act 2022

Reduction of non-domestic energy bills in Northern Ireland

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

(1) The Secretary of State may, by regulations, make provision for and in connection with—

(a) reducing the amounts that would otherwise be charged for NI non-domestic electricity supply by licensed electricity suppliers, and

(b) making payments to those suppliers in respect of those reductions.

(2) The Secretary of State may, by regulations, make provision for and in connection with—

(a) reducing the amounts that would otherwise be charged for NI non-domestic gas supply by licensed gas suppliers, and

(b) making payments to those suppliers in respect of those reductions.

(3) Regulations under this section may, in particular, provide for reductions in amounts charged to be calculated by reference to the difference between—

(a) the wholesale price paid for electricity or gas, as a component of the amounts that would otherwise be charged for the supply of electricity or gas, and

(b) a notional wholesale price, if it is lower than the wholesale price paid.

(4) If the regulations make such provision, they may in particular—

(a) provide—

(i) for the wholesale price paid to be the actual wholesale price paid or a wholesale price treated as paid;

(ii) for that wholesale price to be specified in or under the regulations, or determined in accordance with the regulations;

(b) provide for the notional wholesale price to be specified in or under the regulations, or determined in accordance with the regulations.

(5) The Secretary of State may review the operation of regulations under this section.

(6) Regulations under this section are subject to the affirmative procedure.

(7) Schedule 2 describes particular kinds of provision that may be made by regulations under this section.

(8) For provision about time limits on the exercise of the powers conferred by this section, see Schedule 6.

12 Interpretation of section 11 and Schedule 2

(1) This section applies for the purposes of section 11, this section and Schedule 2.

Expressions relating to electricity

(2) A “licensed electricity supplier” is a person who holds an electricity supply licence.

(3) An “electricity supply licence” is a licence granted under Article 10(1)(c) of the Electricity (Northern Ireland) Order 1992 (S.I. 1992/231 (N.I. 1)).

(4) “NI non-domestic electricity supply” has the meaning specified in, or determined in accordance with, regulations made by the Secretary of State; and regulations under this subsection are subject to the affirmative procedure.

Expressions relating to gas

(5) A “licensed gas supplier” is a person who holds a gas supply licence.

(6) A “gas supply licence” is a licence granted under Article 8(1)(c) of the Gas (Northern Ireland) Order 1996 (S.I. 1996/275 (N.I. 2)).

(7) “NI non-domestic gas supply” has the meaning specified in, or determined in accordance with, regulations made by the Secretary of State; and regulations under this subsection are subject to the affirmative procedure.

Other expressions

(8) A reference to a charge for NI non-domestic electricity supply or NI non-domestic gas supply includes a reference to a charge that does not relate to electricity or gas supplied (such as a standing charge).