Energy Act 2023

Part 8 Step-in arrangements

44 The regulations may make provision for, or in connection with, securing that the holder of a heat network authorisation (“the new entity”) is able effectively to carry on a regulated activity in relation to a relevant heat network in the place of another person (“the old entity”) when directed to do so by the Regulator under a power conferred by a condition in its heat network authorisation (see paragraph 17).

45 (1) The regulations may provide for the Regulator to make one or more schemes making such provision as to property, rights and liabilities as is necessary or expedient for the purpose of enabling the new entity to carry on the regulated activity in relation to the relevant heat network in an effective manner.

(2) Regulations made by virtue of sub-paragraph (1) may, in particular, authorise a scheme to provide for—

(a) the transfer of property, rights or liabilities;

(b) the creation of interests in, or rights in relation to, property;

(c) the creation of rights and liabilities as between the old entity and the new entity;

(d) the modification of interests, rights or liabilities of third parties;

(e) the enforcement of a right or liability for whose transfer or creation the scheme provides;

(f) the entering into of agreements and the execution of instruments for the purposes of, or in connection with, the transfer of property or the transfer or creation of rights or liabilities;

(g) the time at which a transfer, creation or modification is to take place;

(h) the assessment and payment of compensation.

(3) Regulations made by virtue of sub-paragraph (1) may provide for the scheme—

(a) to contain incidental, supplementary, consequential, transitional, transitory or saving provision;

(b) to make different provision for different purposes.

(4) The regulations may provide for the modification of a scheme.

46 (1) The regulations may—

(a) provide for the old entity to give the Regulator such information and assistance as the Regulator may require for the purposes of, or in connection with, the making or implementation of a scheme;

(b) provide for the Regulator, for the purposes of, or in connection with, the making or implementation of a scheme, to direct the old entity to take, or to refrain from taking, such steps as are specified in the direction.

(2) The regulations may provide for the Regulator—

(a) to make payments to the new entity in respect of costs incurred in connection with carrying on the regulated activity in relation to the heat network;

(b) to indemnify the new entity in respect of liabilities arising from, or in connection with, carrying on the regulated activity in relation to the heat network.