Energy Act 2023

12 Standard conditions of licences

(1) The Secretary of State may determine the conditions that are to be the standard conditions of licences.

(2) The Secretary of State must publish any standard conditions determined under subsection (1) in whatever manner the Secretary of State considers appropriate.

(3) Subject to subsections (4) and (5), each condition which is a standard condition is to be incorporated by reference in each licence.

(4) Subsection (3) does not apply to a licence granted before the publication of the standard condition.

(5) Subject to the following provisions of this section, the grantor of a licence in which standard conditions would, but for this subsection, be incorporated in accordance with subsection (3) may exclude or modify any of those standard conditions, to such extent as the grantor may consider requisite to meet the circumstances of a particular case.

(6) Before excluding any standard conditions or making any modifications under subsection (5), the grantor must give notice—

(a) stating that the grantor proposes to exclude the conditions or make the modifications and setting out the effect of so doing,

(b) stating the reasons why the grantor proposes to exclude the conditions or make the modifications, and

(c) specifying the time (which must not be less than 28 days from the date of publication of the notice) within which representations or objections with respect to the proposed exclusions or modifications may be made,

and must consider any representations or objections which are duly made and not withdrawn.

(7) A notice under subsection (6) must be given—

(a) by publishing the notice in whatever manner the grantor considers appropriate for the purpose of bringing the notice to the attention of persons likely to be affected by the making of the exclusions or modifications, and

(b) by sending a copy of the notice to the appropriate devolved authorities (if any) and the Secretary of State.

(8) The grantor must not exclude any conditions, or make any modifications, under subsection (5) unless the grantor is of the opinion that the exclusions or modifications are such that—

(a) the licence holder would not be unduly disadvantaged in competing with other holders of licences, and

(b) no other holder of a licence would be unduly disadvantaged in competing with other holders of such licences (including the holder of the licence).

(9) If, within the time specified in the notice under subsection (6), the Secretary of State (after consulting the appropriate devolved authorities (if any)) directs the grantor not to exclude or modify any standard condition, the grantor must comply with the direction.

(10) The modification under subsection (5) of part of a standard condition does not prevent any other part of the condition from continuing to be treated as a standard condition for the purposes of this Part.

(11) Where, in granting a licence, the grantor excludes or modifies any standard conditions under subsection (5), the grantor must publish a notice setting out—

(a) each exclusion or modification,

(b) their effects, and the reason for adopting them, and

(c) how the grantor has taken account of any representations or objections made in accordance with subsection (6).

(12) For the purposes of this section the “appropriate devolved authorities” are—

(a) the Welsh Ministers, if provision making the exclusions and modifications proposed in the notice under subsection (6) would be within the legislative competence of Senedd Cymru if it were contained in an Act of the Senedd (ignoring any requirement for the consent of a Minister of the Crown imposed under Schedule 7B to the Government of Wales Act 2006);

(b) the Scottish Ministers, if provision making the exclusions and modifications proposed in that notice would be within the legislative competence of the Scottish Parliament if it were contained in an Act of that Parliament;

(c) the Department for the Economy in Northern Ireland, if provision making the exclusions and modifications proposed in that notice—

(i) would be within the legislative competence of the Northern Ireland Assembly if it were contained in an Act of that Assembly, and

(ii) would not, if it were contained in a Bill in the Northern Ireland Assembly, result in the Bill requiring the consent of the Secretary of State under section 8 of the Northern Ireland Act 1998.