Part IU.K. New regulatory arrangements

8 Payments by licence holders relating to new arrangements.E+W+S

(1)In this section “payment conditions” means—

(a)in relation to a gas licence, conditions included in the licence by virtue of section 7B(4)(c) of the 1986 Act; or

(b)in relation to an electricity licence, conditions included in the licence by virtue of section 7(1)(b) of the 1989 Act.

(2)The payment conditions of a gas licence or an electricity licence may (without prejudice to the generality of the provisions mentioned in subsection (1)) require the payment by the licence holder of sums[F1—

( a)] relating to any of the expenses mentioned in subsection (3) [F2 or (3A)][F3, or

(b)relating to such amounts as the Secretary of State considers reasonable in respect of the provision, in or as regards Scotland, of consumer advocacy and advice by, or by agreement with, a public body or the holder of a public office, in relation to gas and electricity consumers]

(3)[F4 The expenses within this subsection] are—

(a)the expenses of the [F5Gas and Electricity Consumer Council]; and

F6(b). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

[F7(3A)The expenses within this subsection are—

F8(a). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F8(b). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

[F9(ba)the appropriate proportion of the expenses of Citizens Advice (including expenses relating to taking on functions transferred from the National Consumer Council but not including expenses within paragraph (ca));

F10(bb). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .]

(c)any expenses of F11... the Secretary of State or the Gas and Electricity Consumer Council which relate to a transfer scheme made in respect of the Gas and Electricity Consumer Council under section 35(2)(a) or (7) of the Consumers, Estate Agents and Redress Act 2007;

[F12(ca)the appropriate proportion of the expenses of Citizens Advice which relate to a transfer scheme made in respect of the National Consumer Council under section 23 of the Public Bodies Act 2011;

F10(cb). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .]

(d)the expenses of the Secretary of State which relate to the abolition of the Gas and Electricity Consumer Council;

[F13(da)the appropriate proportion of the expenses of the Secretary of State which relate to the abolition of the National Consumer Council and the transfer of functions to Citizens Advice and Citizens Advice Scotland;

(db)the appropriate proportion of the expenses of the Secretary of State which relate to the transfer of functions and the conferring of functions on Citizens Advice and Citizens Advice Scotland by the Public Bodies (Abolition of the National Consumer Council and Transfer of the Office of Fair Trading’s Functions in relation to Estate Agents etc) Order 2014 (S.I. 2014/…);

(dc)the appropriate proportion of the expenses of the Secretary of State which relate to a transfer scheme made in respect of the National Consumer Council under section 23 of the Public Bodies Act 2011;]

F14( e). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(f) the appropriate proportion of the expenses of [F15 Citizens Advice F16...] on, or in connection with, the support of [F17 any qualifying public consumer advice scheme].

(3B)The “appropriate proportion” of any expenses means such proportion of the expenses as the Secretary of State considers is reasonable having regard to—

(a)in the case of expenses within [F18subsection (3A)(ba), F19... (ca)F19... or (db)], the functions exercisable by [F20Citizens Advice or Citizens Advice Scotland, as the case may be,] in relation to gas and electricity consumers, F21...

[F22(aa)in the case of expenses within subsection (3A)(da) or (dc), the functions exercised by the National Consumer Council in relation to gas and electricity consumers, and]

(b) in the case of expenses within subsection (3A)(f), the functions under [F23 the qualifying consumer advice scheme] which are exercisable in relation to gas and electricity consumers.]

[F24(3C)A qualifying public consumer advice scheme is a scheme that is supported by Citizens Advice F25... in a manner that the [F26Competition and Markets Authority] is prohibited from using by section 8A of the Enterprise Act 2002.]

(4)The Authority may, in accordance with this section, modify any payment conditions of a gas licence or an electricity licence where the Authority considers it necessary or expedient to do so in consequence of, or of preparations for—

F27(a). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

[F28(b) the abolition of the Gas and Electricity Consumer Council.]

[F29(c)the abolition of the National Consumer Council, or

(d)the conferring of functions which are exercisable in relation to gas and electricity consumers on Citizens Advice or Citizens Advice Scotland by the Public Bodies (Abolition of the National Consumer Council and Transfer of the Office of Fair Trading’s Functions in relation to Estate Agents etc) Order 2014 (S.I. 2014/...).]

[F30(5) The Authority may, in accordance with this section, make such incidental or consequential modifications of—

(a)the other conditions of a gas licence or an electricity licence, or

(b)any code or agreement relevant to the conditions of such a licence,

as it considers necessary or expedient in consequence of, or of preparations for, an event mentioned in subsection (4)(a) or (b).]

(6)Before modifying the conditions of a licence [F31 or any code or agreement] under subsection (4) or (5) the Authority shall consult the licence holder.

F32(7). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

[F33(8)The powers of the Authority under subsection (4) (as amended by paragraph 29 of Schedule 1 to the Consumers, Estate Agents and Redress Act 2007), and subsection (5) as it applies in relation to that subsection, may not be exercised after the end of the period of 2 years beginning with the commencement of that paragraph.]

(9)The Secretary of State may give directions to the Authority for the purpose of securing that sums relating to any of the expenses mentioned in subsection (3) [F34 or (3A)] [F35or to amounts mentioned in subsection (2)(b)] are included in the sums payable by virtue of payment conditions in gas licences and electricity licences; and the Authority shall comply with any such direction.

[F36( 10)For the purposes of this section—

  • F37...

  • F37...

  • “ consumer ” has the same meaning as in Part 1 of the Consumers, Estate Agents and Redress Act 2007 (see section 3 of that Act);

  • “ gas and electricity consumers ” means consumers in relation to gas conveyed through pipes or electricity conveyed by distribution systems or transmission systems;

  • “ OFT scheme ” means any public consumer advice scheme supported by the Office of Fair Trading. ]

Textual Amendments

F1Words in s. 8(2) inserted (23.5.2016) by Scotland Act 2016 (c. 11), ss. 50(10)(a), 72(7)

F3S. 8(2)(b) and word inserted (23.5.2016) by Scotland Act 2016 (c. 11), ss. 50(10)(b), 72(7)

F10S. 8(3A)(bb)(cb) omitted (23.5.2016) by virtue of Scotland Act 2016 (c. 11), ss. 50(11)(a), 72(7)

F16Words in s. 8(3A)(f) omitted (23.5.2016) by virtue of Scotland Act 2016 (c. 11), ss. 50(11)(b), 72(7)

F19Words in s. 8(3B)(a) omitted (23.5.2016) by virtue of Scotland Act 2016 (c. 11), ss. 50(11)(c), 72(7)

F25Words in s. 8(3C) omitted (23.5.2016) by virtue of Scotland Act 2016 (c. 11), ss. 50(11)(d), 72(7)

F35Words in s. 8(9) inserted (23.5.2016) by Scotland Act 2016 (c. 11), ss. 50(12), 72(7)

Commencement Information

I1S. 8 wholly in force at 20.12.2000, see s. 102(2)(3) and S.I. 2000/3343, art. 2, Sch. (subject to arts. 3-15)