Part 3Regulation of gas and electricity markets

Notice of unilateral changes to domestic supply contracts

25Modifications of supply licences: notice of unilateral changes to domestic supply contracts

1

The Secretary of State may modify—

a

a condition of a particular licence under section 7A(1) of the Gas Act 1986 (supply licences);

b

the standard conditions incorporated in licences under that provision by virtue of section 8 of that Act;

c

a condition of a particular licence under section 6(1)(d) of the Electricity Act 1989 (supply licences);

d

the standard conditions incorporated in licences under that provision by virtue of section 8A of that Act.

2

The Secretary of State may make a modification under subsection (1) only for the purpose of securing that customers under contracts for domestic supply are notified about changes which licence holders make under unilateral variation terms in—

a

any terms of such contracts, or

b

the price charged for energy supplied under such contracts,

within a period specified in (or determined by reference to criteria set by) the licence as so modified.

3

Modifications under subsection (1) may include provision—

a

requiring a notice to be given before or after the change to which it relates is made,

b

about the form of a notice and the manner in which it is to be given,

c

about the effect of a notice,

d

about the effect of failure to give a notice, or

e

requiring a notice to be accompanied by other information.

4

The power conferred by subsection (1) may not be exercised after the end of the period of 3 years beginning with the day on which that subsection comes into force.

5

Before making a modification under subsection (1), the Secretary of State must consult—

a

the holder of any licence being modified,

b

the Authority, and

c

such other persons as the Secretary of State thinks it is appropriate to consult.

6

In this section a “unilateral variation term” means a term in a contract for domestic supply under which a licence holder is permitted to change a term of the contract or a price charged for energy supplied under it, without the agreement of the customer to the particular changes.

7

For the purposes of subsection (2), agreement by a customer under a contract for domestic supply to a unilateral variation term (whether by entering into the contract or otherwise) is not be taken to constitute agreement to any particular changes made by virtue of the term.

8

In this section—

  • “a contract for domestic supply” means a contract for the supply of energy by a licence holder to a customer at domestic premises wholly or mainly for domestic purposes;

  • “energy”—

    1. a

      in relation to the holder of a licence under section 7A(1) of the Gas Act 1986, means gas;

    2. b

      in relation to the holder of a licence under section 6(1)(d) of the Electricity Act 1989, means electricity.