Energy Act 2023

Part 6 U.K. Enforcement of conditions and requirements

Methods of enforcement U.K.

37 (1) The regulations may make provision about the enforcement of relevant conditions or relevant requirements.

(2) Regulations made by virtue of sub-paragraph (1) may, in particular, provide for the Regulator—

(a) in a case where the Regulator is satisfied that a relevant person is contravening or is likely to contravene a relevant condition or requirement, to make a final order requiring the person to take such steps as the Regulator considers appropriate for the purpose of securing the person’s compliance with the relevant condition or requirement;

(b) in a case where it appears to the Regulator that a relevant person is contravening or is likely to contravene a relevant condition or requirement, to make a provisional order requiring the person to take such steps as the Regulator considers appropriate for the purpose of securing compliance with the relevant condition or requirement;

(c) to impose a penalty on a relevant person for the contravention of a relevant condition or requirement;

(d) in relation to England and Wales and Scotland, in a case where the contravention of a relevant condition or requirement by a relevant person has caused or is causing one or more consumers to suffer loss or damage or to be caused inconvenience, to make an order (a “consumer redress order”) requiring the person to do such things as appear to the Regulator necessary for the purposes of—

(i) remedying the consequences of the contravention, or

(ii) preventing the person contravening the relevant condition or requirement again in the same or a similar way.

(3) Regulations made by virtue of sub-paragraph (1) may, in particular, provide for—

(a) the making of an order,

(b) the imposition of a penalty, or

(c) the making of a consumer redress order,

to be excluded if the Regulator considers that it would be more appropriate to proceed under the Competition Act 1998 (see paragraph 41).

(4) Regulations made by virtue of sub-paragraph (1) may, in particular, make provision about the use of more than one method of enforcement.

(5) Regulations made by virtue of sub-paragraph (1) may, in particular, make provision about enforcement in a case where a person who holds two or more heat network authorisations has contravened or is likely to contravene a relevant condition or requirement in those, or some of those, heat network authorisations.

(6) In this paragraph—

• “relevant condition” means a condition of—

  (a)

  a heat network authorisation,

  (b)

  a code manager licence, or

  (c)

  an installation and maintenance licence;

• “relevant person” means—

  (a)

  a person who holds a heat network authorisation,

  (b)

  a licensed code manager, or

  (c)

  a person who holds an installation and maintenance licence;

• “relevant requirement”, in relation to a relevant person, means a requirement imposed on the person by or under the regulations or by regulations made by the Regulator by virtue of any provision of this Schedule.

Commencement Information

I1 Sch. 18 para. 37 in force at Royal Assent, see s. 334(2)(l)

Final and provisional orders U.K.

38 (1) Regulations made by virtue of paragraph 37(2) may, in particular—

(a) provide for the confirmation of a provisional order;

(b) make provision about procedure;

(c) provide for the grounds on which an order may be challenged in legal proceedings, the time within which it may be challenged and the remedies that may be given;

(d) specify how an order may be enforced (including by providing for non-compliance with an order to be a breach of duty);

(e) make provision enabling the Regulator to accept an enforcement undertaking from a relevant person and about the consequences of accepting such an undertaking.

(2) An “enforcement undertaking” is an undertaking to take, within the period specified in the undertaking, such action as may be so specified to secure compliance with a relevant condition or requirement.

(3) Except as provided by the regulations, the validity of an order made by virtue of paragraph 37(2)(a) or (b) is not to be questioned in any legal proceedings.

Commencement Information

I2 Sch. 18 para. 38 in force at Royal Assent, see s. 334(2)(l)

Penalties U.K.

39 (1) Regulations made by virtue of paragraph 37(2)(c) may, in particular—

(a) make provision about the maximum amount that may be imposed by way of penalty;

(b) make provision about procedure;

(c) make provision about the payment of interest;

(d) specify how a penalty (and any interest) may be recovered;

(e) make provision about payment of a penalty (and any interest) in instalments;

(f) require sums received by way of penalty (and interest) to be paid into—

(i) the Consolidated Fund, or

(ii) in relation to Northern Ireland, the Consolidated Fund of Northern Ireland;

(g) make provision enabling the Regulator to accept an enforcement undertaking from a relevant person and about the consequences of accepting such an undertaking.

(2) The regulations may provide for—

(a) publication by the Regulator of a statement of policy with respect to the imposition of penalties and the determination of their amount;

(b) revision of the statement of policy.

(3) Where regulations make provision by virtue of paragraph 37(2)(c) for the imposition of a penalty on a relevant person, the regulations—

(a) must also include provision enabling the relevant person to challenge the penalty in legal proceedings;

(b) may, in particular, specify the grounds on which and the time within which a penalty may be challenged and the remedies that may be given.

(4) Except as provided by the regulations, the validity of a penalty imposed by virtue of paragraph 37 is not to be questioned in any legal proceedings.

Commencement Information

I3 Sch. 18 para. 39 in force at Royal Assent, see s. 334(2)(l)

Consumer redress orders U.K.

40 (1) Regulations made by virtue of paragraph 37(2)(d) may, in particular—

(a) make provision about the requirements that may be imposed by a consumer redress order, including, in particular, requirements as to—

(i) paying compensation to affected heat network consumers;

(ii) preparing and distributing a written statement about the contravention;

(iii) terminating or varying contracts entered into with affected heat network consumers;

(b) make provision about the maximum amount of compensation that a relevant person may be required to pay;

(c) make provision about procedure;

(d) make provision about challenges to a consumer redress order in legal proceedings (including, in particular, specifying the grounds on which and the time within which an order may be challenged and the remedies that may be given);

(e) make provision about the payment of interest;

(f) make provision about payment of compensation (and any interest) in instalments;

(g) specify how a consumer redress order may be enforced;

(h) make provision enabling the Regulator to accept an enforcement undertaking from a relevant person and about the consequences of accepting such an undertaking.

(2) The regulations may provide for—

(a) publication by the Regulator of a statement of policy with respect to the making of consumer redress orders and the determination of the requirements imposed by them;

(b) revision of the statement of policy.

(3) Except as provided by the regulations, the validity of a consumer redress order is not to be questioned in any legal proceedings.

Commencement Information

I4 Sch. 18 para. 40 in force at Royal Assent, see s. 334(2)(l)

Functions under Part 1 of the Competition Act 1998 and Part 4 of the Enterprise Act 2002 U.K.

41 (1) The regulations may make provision for the purpose of enabling the Regulator to exercise such functions of the Competition and Markets Authority under Part 1 of the Competition Act 1998, or such descriptions of those functions, as are specified in the regulations.

(2) The regulations may make provision for the purpose of enabling the Regulator to exercise such functions of the Competition and Markets Authority under Part 4 of the Enterprise Act 2002, or such descriptions of those functions, as are specified in the regulations.

(3) Regulations made by virtue of sub-paragraph (1) or (2) may, in particular, make provision—

(a) about the concurrent exercise of functions by the Regulator and the Competition and Markets Authority;

(b) for the joint exercise of functions by the Regulator and the Competition and Markets Authority in a particular case;

(c) as to the procedure for determining which of the Regulator and the Competition and Markets Authority is to exercise functions in a particular case;

(d) as to the circumstances in which the exercise of a function by the Regulator or the Competition and Markets Authority precludes the exercise of the function by the other;

(e) about assistance that may be given by the Regulator to the Competition and Markets Authority.

Commencement Information

I5 Sch. 18 para. 41 in force at Royal Assent, see s. 334(2)(l)