The Energy (Northern Ireland) Order 2003

PART III N.I. OBJECTIVES OF REGULATION OF ELECTRICITY AND GAS

Electricity N.I.

The principal objective and general duties of the Department and the Authority in relation to electricity N.I.

12.—(1) The principal objective of the Department and the Authority in carrying out their respective electricity functions is to protect the interests of consumers of electricity supplied by authorised suppliers, wherever appropriate by promoting effective competition between persons engaged in, or in commercial activities connected with, the generation, transmission [F1 , distribution] or supply of electricity.

[F2 (1A) The interests of consumers include their interests in the fulfilment by the Authority, when carrying out its functions as designated regulatory authority for Northern Ireland, of the objectives set out in Article 36(a) to (h) of the Electricity Directive.]

(2) The Department and the Authority shall carry out those functions in the manner which it considers is best calculated to further the principal objective, having regard to—

(a) the need to secure that all reasonable demands [F3 in Northern Ireland or Ireland] for electricity are met; and

(b) the need to secure that licence holders are able to finance the activities which are the subject of obligations imposed by or under Part II of the Electricity Order or this Order [F4 .]

(c) F5 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(3) In performing that duty, the Department or the Authority shall have regard to [F6 the need to protect] the interests of—

(a) individuals who are disabled or chronically sick;

(b) individuals of pensionable age;

(c) individuals with low incomes; and

(d) individuals residing in rural areas;

but that is not to be taken as implying that regard may not be had to the interests of other descriptions of consumer.

(4) The Department and the Authority may, in carrying out any electricity functions, have regard to the interests of consumers in relation to gas [F7 and in relation to water or sewerage services] .

(5) Subject to paragraph (2), the Department and the Authority shall carry out their respective electricity functions in the manner which it considers is best calculated—

(a) to promote the efficient use of electricity and efficiency and economy[F8 in the generation, distribution, transmission and supply of electricity];

(b) to protect the public from dangers arising from the generation, transmission [F9 , distribution] or supply of electricity;

[F10 (c) to secure a diverse, viable and environmentally sustainable long‐term energy supply;]

(d) to promote research into, and the development and use of, new techniques by or on behalf of persons authorised by a licence to generate, supply [F11 , distribute] or participate in the transmission of electricity; and

(e) to secure the establishment and maintenance of machinery for promoting the health and safety of persons employed in the generation, transmission [F12 , distribution] or supply of electricity;

and shall have regard, in carrying out those functions, to the effect on the environment of activities connected with the generation, transmission [F13 , distribution] or supply of electricity.

[F14 (5A) The duties under paragraph (5) shall, in particular, include—

(a) ensuring the provision of the incentives referred to in Article 15(1) of the Energy Efficiency Directive, where appropriate and having taken into account the costs and benefits, and ensuring that no incentives are provided contrary to Article 15(4) of that Directive; and

(b) the encouragement of demand side resources in accordance with Article 15(8), first and third indents of that Directive.

(5B) Before 30 June 2015, the Authority shall deliver to the Department—

(a) an assessment of the electricity infrastructure which complies with the requirements of Article 15(2)(a) of the Energy Efficiency Directive; and

(b) a list identifying concrete measures and investments which complies with the requirements of Article 15(2)(b) of that Directive.

(5C) For the purpose of paragraph (5B), the Authority may, by notice given to the holder of any electricity licence or any exemption holder, require that person to provide such information, assistance and advice as may be specified in the notice and that holder shall comply with that requirement.]

[F10 (6) In carrying out their respective electricity functions the Department or the Authority shall not discriminate between persons whose activities consist of or include generating, supplying [F15 , distributing] or transmitting electricity as regards either rights or obligations.

(7) In this Article—

• “electricity functions” means functions under Part II of the Electricity Order and functions under this Order relating to electricity; and

• “environmental sustainability” includes the need to guard against climate change.]

F1 Words in art. 12(1) inserted (15.4.2011) by Gas and Electricity (Internal Markets) Regulations (Northern Ireland) 2011 (S.R. 2011/155), reg. 34(b)(i)

F2 Art. 12(1A) inserted (15.4.2011) by Gas and Electricity (Internal Markets) Regulations (Northern Ireland) 2011 (S.R. 2011/155), reg. 39

F3 Words in art. 12(2)(a) inserted (20.6.2007) by Electricity (Single Wholesale Market) (Northern Ireland) Order 2007 (S.I. 2007/913 (N.I. 7)), arts. 1(3), 12, Sch. 4 para. 9; S.R. 2007/303, art. 2, Sch.

F4 Words in art. 12(2)(b) substituted (1.11.2007) by Electricity Regulations (Northern Ireland) 2007 (S.R. 2007/321), regs. 1(2), 61, Sch. 3 para. 1 (with transitional provisions in Pt. IV)

F5 Art. 12(2)(c) repealed (1.11.2007) by Electricity Regulations (Northern Ireland) 2007 (S.R. 2007/321), regs. 1(2), 61, Sch. 3 para. 1 (with transitional provisions in Pt. IV)

F6 Words in art. 12(3) inserted (15.4.2011) by Gas and Electricity (Internal Markets) Regulations (Northern Ireland) 2011 (S.R. 2011/155), reg. 3

F7 Words in art. 12(4) added (1.4.2007) by Water and Sewerage Services (Northern Ireland) Order 2006 (S.I. 2006/3336 (N.I. 21)), arts. 1(2), 308(1), Sch. 12 para. 48(14) (with arts. 8(8), 121(3), 307); S.R. 2007/194, art. 2(2), Sch. 1 Pt. II (subject to art. 3, Sch. 2)

F8 Words in art. 12(5)(a) substituted (25.7.2014) by Energy Efficiency Regulations (Northern Ireland) 2014 (S.R. 2014/198), reg. 4(a)

F9 Words in art. 12(5)(b) inserted (15.4.2011) by Gas and Electricity (Internal Markets) Regulations (Northern Ireland) 2011 (S.R. 2011/155), reg. 34(b)(i)

F10 SR 2005/335

F11 Words in art. 12(5)(d) inserted (15.4.2011) by Gas and Electricity (Internal Markets) Regulations (Northern Ireland) 2011 (S.R. 2011/155), reg. 34(b)(ii)

F12 Words in art. 12(5)(e) inserted (15.4.2011) by Gas and Electricity (Internal Markets) Regulations (Northern Ireland) 2011 (S.R. 2011/155), reg. 34(b)(i)

F13 Words in art. 12(5) inserted (15.4.2011) by Gas and Electricity (Internal Markets) Regulations (Northern Ireland) 2011 (S.R. 2011/155), reg. 34(b)(i)

F14 Art. 12(5A)-(5C) inserted (25.7.2014) by Energy Efficiency Regulations (Northern Ireland) 2014 (S.R. 2014/198), reg. 4(b)

F15 Words in art. 12(6) inserted (15.4.2011) by Gas and Electricity (Internal Markets) Regulations (Northern Ireland) 2011 (S.R. 2011/155), reg. 34(b)(iii)

[F16 Additional functions of the Authority in relation to electricity N.I.

12A.   In relation to electricity and where required for the purpose of setting a reliability standard in accordance with Article 25 of the Electricity Regulation, the Authority must determine an estimate of the value of lost load for Northern Ireland in accordance with Article 11 of the Electricity Regulation.]

F16 Art. 12A inserted (25.2.2020) by The Electricity and Gas (Internal Markets) Regulations 2020 (S.I. 2020/96), regs. 1, 7(6)

Exceptions from the general duties N.I.

13.—(1) Article 12 does not apply in relation to functions of the Department under—

(a) Article 39, 40, 58, 59 or 60 of the Electricity Order; or

(b) Article 61.

[F17 (1A) Article 12 does not apply in relation to the carrying out of functions of the Department or the Authority to which Article 9 of the SEM Order applies.

(1B) For the purposes of Article 9 of the SEM Order, the interests of Northern Ireland consumers include their interests in the fulfilment by the Authority when carrying out functions to which that Article applies, of the objectives set out in Article 36(a) to (h) of the Electricity Directive.]

(2) Article 12 does not apply in relation to anything done by the Authority—

(a) in the exercise of functions relating to the determination of disputes; or

(b) in the exercise of functions under—

(i) Article 46(3) of the Electricity Order; or

(ii) Article 8 [F18 and Article 8A].

(3) The Authority may nevertheless, when exercising any function under Article 46 (3) of the Electricity Order, have regard to any matter in respect of which a duty is imposed by Article 12 if it is a matter to which the [F19 CMA] could have regard when exercising that function.

(4) The duties imposed by Article 12 do not affect the obligation of the Authority or the Department to perform or comply with any other duty or requirement (whether arising under this Order or another statutory provision, by virtue of any Community obligation or otherwise).

F17 Art. 13(1A)(1B) substituted (12.4.2013) for art. 13(1A) by Gas and Electricity (Internal Markets) Regulations (Northern Ireland) 2013 (S.R. 2013/92), reg. 5

F18 Words in art. 13(2)(b) inserted (15.4.2011) by Gas and Electricity (Internal Markets) Regulations (Northern Ireland) 2011 (S.R. 2011/155), reg. 40

F19 Word in art. 13(3) substituted (1.4.2014) by Enterprise and Regulatory Reform Act 2013 (Competition) (Consequential, Transitional and Saving Provisions) Order 2014 (S.I. 2014/892), art. 2, Sch. 1 para. 237 (with art. 3)

Gas N.I.

The principal objective and general duties of the Department and the Authority in relation to gas N.I.

14.— [F20 (1) The principal objective of the Department and the Authority in carrying out their respective gas functions is to promote the development and maintenance of an efficient, economic and co-ordinated gas industry in Northern Ireland, and to do so in a way that is consistent with the fulfilment by the Authority, pursuant to Article 40 of the Gas Directive, of the objectives set out in paragraphs (a) to (h) of that Article.]

(2) The Department and the Authority shall carry out those functions in the manner which it considers is best calculated to further the principal objective, having regard to—

[F21 (a) the need to ensure a high level of protection of the interests of consumers of gas;]

(b) the need to secure that licence holders are able to finance the activities which are the subject of obligations imposed by or under Part II of the Gas Order or this Order;

(c) the need to secure that the prices charged in connection with the conveyance of gas through designated pipe-lines (within the meaning of Article 59) are in accordance with a common tariff which does not distinguish (whether directly or indirectly) between different parts of Northern Ireland or the extent of use of any pipe-line; and

(d) the need to protect the interests of gas licence holders in respect of the prices at which, and the other terms on which, any services are provided by one gas licence holder to another.

(3) In performing that duty, the Department or the Authority shall have regard to [F22 the need to protect] the interests of—

(a) individuals who are disabled or chronically sick;

(b) individuals of pensionable age; and

(c) individuals with low incomes;

but that is not to be taken as implying that regard may not be had to the interests of other descriptions of consumer.

(4) The Department and the Authority may, in carrying out any gas functions, have regard to the interests of consumers in relation to electricity [F23 and in relation to water or sewerage services] .

(5) Subject to paragraph (2), the Department and the Authority shall carry out their respective gas functions in the manner which it considers is best calculated—

[F24 (a) to promote the efficient use of gas and efficiency and economy in the conveyance, storage or supply of gas;]

(b) to protect the public from dangers arising from the conveyance, storage, supply or use of gas;

[F25 (c) to secure a diverse, viable and environmentally sustainable long-term energy supply; and]

(d) to facilitate competition between persons whose activities consist of or include storing, supplying or participating in the conveyance of gas;

and shall have regard, in carrying out those functions, to the effect on the environment of activities connected with the conveyance, storage or supply of gas.

[F26 (5A) In carrying out their respective gas functions the Department or the Authority shall not discriminate between persons whose activities consist of or include storing, supplying or participating in the conveyance of gas as regards either rights or obligations.]

[F27 (5B) Before 30 June 2015 the Authority shall deliver to the Department—

(a) an assessment of the gas infrastructure which complies with the requirements of Article 15(2)(a) of the Energy Efficiency Directive; and

(b) a list identifying concrete measures and investments which complies with the requirements of Article 15(2)(b) of that Directive.

(5C) For the purpose of paragraph (5A), the Authority may serve on any holder of a gas licence or any exemption holder a notice requiring that person to provide the Authority with such information, assistance or advice as may be specified in the notice and that holder shall comply with that requirement.]

(6) In this Article “gas functions” means—

(a) functions under Part II of the Gas Order; and

(b) functions under this Order [F28 or the Energy Act (Northern Ireland) 2011] relating to gas.

[F29 (7) For the purposes of paragraph (5)(c) environmental sustainability includes the need to guard against climate change.]

F20 Art. 14(1) substituted (15.4.2011) by Gas and Electricity (Internal Markets) Regulations (Northern Ireland) 2011 (S.R. 2011/155), reg. 41

F21 Art. 14(2)(a) substituted (1.10.2006) by Gas Order 1996 (Amendment) Regulations (Northern Ireland) 2006 (S.R. 2006/358), reg. 13(1)

F22 Words in art. 14(3) inserted (15.4.2011) by Gas and Electricity (Internal Markets) Regulations (Northern Ireland) 2011 (S.R. 2011/155), reg. 4

F23 Words in art. 14(4) added (1.4.2007) by Water and Sewerage Services (Northern Ireland) Order 2006 (S.I. 2006/3336 (N.I. 21)), arts. 1(2), 308(1), Sch. 12 para. 48(15) (with arts. 8(8), 121(3), 307); S.R. 2007/194, art. 2(2), Sch. 1 Pt. II (subject to art. 3, Sch. 2)

F24 Art. 14(5)(a) substituted (25.7.2014) by Energy Efficiency Regulations (Northern Ireland) 2014 (S.R. 2014/198), reg. 5(a)

F25 Art. 14(5)(c) substituted (1.10.2006) by Gas Order 1996 (Amendment) Regulations (Northern Ireland) 2006 (S.R. 2006/358), reg. 13(2)

F26 Art. 14(5A) inserted (1.10.2006) by Gas Order 1996 (Amendment) Regulations (Northern Ireland) 2006 (S.R. 2006/358), reg. 13(3)

F27 Art. 14(5B)(5C) inserted (25.7.2014) by Energy Efficiency Regulations (Northern Ireland) 2014 (S.R. 2014/198), reg. 5(b)

F28 Words in art. 14(6)(b) inserted (21.3.2011) by Energy Act (Northern Ireland) 2011 (c. 6), ss. 9(2), 36(1); S.R. 2011/95, art. 2

F29 Art. 14(7) added (1.10.2006) by Gas Order 1996 (Amendment) Regulations (Northern Ireland) 2006 (S.R. 2006/358), reg. 13(4)

Modifications etc. (not altering text)

C1 Art. 14 applied (1.10.2006) by Gas Order 1996 (Amendment) Regulations (Northern Ireland) 2006 (S.R. 2006/358), reg. 16

Exceptions from the general duties N.I.

15.—(1) Article 14 does not apply in relation to functions of the Department under—

(a) Article 40 of the Gas Order; or

(b) Article 61.

(2) Article 14 does not apply in relation to anything done by the Authority in the exercise of functions under—

(a) Article 23(3) of the Gas Order; or

(b) Article 8 [F30 and Article 8A].

(3) The Authority may nevertheless, when exercising any function under Article 23(3) of the Gas Order, have regard to any matter in respect of which a duty is imposed by Article 14 if it is a matter to which the [F31 CMA] could have regard when exercising that function.

(4) The duties imposed by Article 14 do not affect the obligation of the Authority or the Department to perform or comply with any other duty or requirement (whether arising under this Order or another statutory provision, by virtue of any Community obligation or otherwise).

F30 Words in art. 15(2)(b) inserted (15.4.2011) by Gas and Electricity (Internal Markets) Regulations (Northern Ireland) 2011 (S.R. 2011/155), reg. 42

F31 Word in art. 15(3) substituted (1.4.2014) by Enterprise and Regulatory Reform Act 2013 (Competition) (Consequential, Transitional and Saving Provisions) Order 2014 (S.I. 2014/892), art. 2, Sch. 1 para. 238 (with art. 3)