Energy Prices Act 2022

Reduction of non-domestic energy bills in England, Wales and Scotland

9 Reduced energy charges for non-domestic customers in Great Britain

(1) The Secretary of State may, by regulations, make provision for and in connection with—

(a) reducing the amounts that would otherwise be charged for GB non-domestic electricity supply by licensed electricity suppliers, and

(b) making payments to those suppliers in respect of those reductions.

(2) The Secretary of State may, by regulations, make provision for and in connection with—

(a) reducing the amounts that would otherwise be charged for GB non- domestic gas supply by licensed gas suppliers, and

(b) making payments to those suppliers in respect of those reductions.

(3) Regulations under this section may, in particular, provide for reductions in amounts charged to be calculated by reference to the difference between—

(a) the wholesale price paid for electricity or gas, as a component of the amounts that would otherwise be charged for the supply of electricity or gas, and

(b) a notional wholesale price, if it is lower than the wholesale price paid.

(4) If the regulations make such provision, they may in particular—

(a) provide for—

(i) the wholesale price paid to be the actual wholesale price paid or a wholesale price treated as paid, and

(ii) that wholesale price to be specified in or under the regulations, or determined in accordance with the regulations;

(b) provide for the notional wholesale price to be specified in or under the regulations, or determined in accordance with the regulations.

(5) The Secretary of State may review the operation of regulations under this section.

(6) Regulations under this section are subject to the affirmative procedure.

(7) Schedule 1 describes particular kinds of provision that may be made by regulations under this section.

(8) For provision about time limits on the exercise of the powers conferred by this section, see Schedule 6.

10 Interpretation of section 9 and Schedule 1

(1) This section applies for the purposes of section 9, this section and Schedule 1.

Expressions relating to electricity

(2) A “licensed electricity supplier” is a person who holds an electricity supply licence.

(3) An “electricity supply licence” is a licence granted under section 6(1)(d) of the Electricity Act 1989.

(4) “GB non-domestic electricity supply” is the supply of electricity to premises that are non-domestic premises for the purposes of the relevant standard conditions (as they have effect from time to time).

(5) In subsection (4) “relevant standard conditions” are the conditions which are, by virtue of section 33(1) of the Utilities Act 2000, the standard conditions for the purposes of electricity supply licences.

Expressions relating to gas

(6) A “licensed gas supplier” is a person who holds a gas supply licence.

(7) A “gas supply licence” is a licence granted under section 7A(1) of the Gas Act 1986.

(8) “GB non-domestic gas supply” is the supply of gas to premises that are non-domestic premises for the purposes of the relevant standard conditions (as they have effect from time to time).

(9) In subsection (8) “relevant standard conditions” are the conditions which are, by virtue of section 81(2) of the Utilities Act 2000, the standard conditions for the purposes of gas supply licences.