Energy Act 2023

Compensation E+W+S

12 (1) The relevant code manager must make a payment to a person within sub-paragraph (2) in compensation for financial loss suffered by the person in consequence of the exercise by the GEMA of—

(a) the power under paragraph 6 in relation to a qualifying contract within paragraph 1(3)(b) or (c), or

(b) the power under paragraph 8 (transfer schemes).

(2) The persons within this sub-paragraph are—

(a) a person who is a party to a contract that is amended or terminated under paragraph 6;

(b) the transferor in relation to a scheme under paragraph 8;

(c) a person, other than the transferor or transferee in relation to a scheme under paragraph 8, who has a right in relation to anything transferred by the scheme.

(3) The amount of a payment under sub-paragraph (1) is to be—

(a) in a case relating to the exercise of the power under paragraph 6, such amount as the GEMA considers to be just;

(b) in a case relating to the exercise of the power under paragraph 8, an amount specified in or determined in accordance with provision made in the scheme in question.

(4) In this paragraph, “the relevant code manager” means—

(a) in relation to the exercise of the power under paragraph 6, the person who holds a code manager licence in relation to the document to which the qualifying contract in question relates;

(b) in relation to the exercise of the power under paragraph 8, the person who is the transferee in relation to the scheme in question.

(5) The GEMA may in a particular case direct—

(a) which person is the relevant code manager for the purposes of this paragraph;

(b) that two or more persons are jointly to be the relevant code manager for those purposes.

(6) The Secretary of State may in a particular case direct that the duty under sub-paragraph (1) is to be discharged by a person specified in the direction (instead of by the relevant code manager).

Commencement Information

I1 Sch. 12 para. 12 not in force at Royal Assent, see s. 334(1)

I2 Sch. 12 para. 12 in force at 10.9.2024 by S.I. 2024/890, reg. 2(b)(ix)