Energy Act 2023

163 Duty to promote particular objectives

(1) The ISOP must carry out its functions in the way that it considers is best calculated to promote—

(a) the net zero objective;

(b) the security of supply objective;

(c) the efficiency and economy objective.

(2) The net zero objective is the objective of enabling the Secretary of State to meet the duties imposed by—

(a) section 1 of the Climate Change Act 2008 (net UK carbon account target for 2050), and

(b) section 4(1)(b) of that Act (UK carbon account not to exceed carbon budget).

(3) The security of supply objective is the objective of ensuring the security of supply, to existing and future consumers, of—

(a) electricity conveyed by distribution systems or transmission systems, and

(b) gas conveyed through pipes.

(4) The efficiency and economy objective is the objective of promoting—

(a) efficient, co-ordinated and economical systems for the distribution and transmission of electricity and the conveyance of gas;

(b) efficiency (including the efficient use of energy) and economy on the part of persons who carry out relevant activities within subsection (5)(a), (b) or (c).

(5) In this Part, “relevant activity” means any of the following, so far as carried out in the course of a business—

(a) an activity mentioned in section 5(1) of the Gas Act 1986 (gas transportation, interconnection, supply, shipping, system planning, smart meter communication, code management);

(b) an activity mentioned in section 4(1) of the Electricity Act 1989 (electricity generation, transmission, distribution, supply, interconnection, multi-purpose interconnection, system operation, smart meter communication, code management);

(c) an activity, other than an activity within paragraph (a) or (b), in respect of which the ISOP has functions;

(d) an activity, other than an activity within paragraph (a), (b) or (c), that is connected with—

(i) the production, conveyance, storage or supply of energy,

(ii) the reduction of UK emissions of targeted greenhouse gases arising from the production, conveyance, storage, supply or consumption of energy, or

(iii) data relating to any matter within sub-paragraph (i) or (ii), or to demand for or consumption of energy.

(6) For the purposes of subsection (5)(d)—

(a) “energy” means energy in any form and includes fuel or other substances used to produce energy;

(b) references to the production of energy include references to the conversion of energy from one form to another;

(c) references to the supply of energy include references to adjusting consumption of energy (whether generally, at particular times, or by particular persons);

(d) an activity referred to in paragraph (d)(i) is not a relevant activity when carried out in relation to products for human or animal consumption;

(e) “UK emissions of targeted greenhouse gases” are emissions of such gases as are, or are treated for the purposes of Part 1 of the Climate Change Act 2008 as, emissions from sources in the United Kingdom.

(7) In this section, “targeted greenhouse gas” has the same meaning as in Part 1 of the Climate Change Act 2008 (see section 24 of that Act).