Procurement Act 2023

6 Utilities contracts U.K.

(1) In this Act, “utilities contract” means a contract for the supply of goods, services or works wholly or mainly for the purpose of a utility activity.

(2) In this Act, “utility activity” means an activity that—

(a) is specified in Part 1 of Schedule 4,

(b) is not specified in Part 2 of Schedule 4,

(c) is not carried out wholly outside the United Kingdom, and

(d) in the case of an activity carried out by a person that is not a public authority or public undertaking, is carried out pursuant to a special or exclusive right.

(3) A person carries out a utility activity pursuant to a “special or exclusive right” if—

(a) the person (whether alone or with others) has been granted a right to carry out the activity pursuant to any statutory, regulatory or administrative provision, and

(b) that provision also substantially limits the ability of persons not granted the right to carry on the activity.

(4) But a right to carry out a utility activity is not a “special or exclusive right” if it is granted—

(a) following award under section 19 (competitive award), or

(b) otherwise pursuant to a procedure in which—

(i) the opportunity to be granted the right was publicised widely enough to avoid an artificial narrowing of competition, and

(ii) the grant of the right was based on criteria that did not favour or disadvantage certain persons.

(5) An appropriate authority may by regulations amend Part 2 of Schedule 4 for the purpose of—

(a) specifying an activity, or

(b) removing an activity.

(6) Regulations under subsection (5) may not specify an activity unless the authority is satisfied that—

(a) the activity is carried out on a market that is subject to fair and effective competition, and

(b) entry to that market is unrestricted.

(7) In this Act, a reference to a utilities contract includes a reference to a framework for the future award of contracts for the supply of goods, services or works wholly or mainly for the purpose of a utility activity.

Modifications etc. (not altering text)

C1 S. 6 applied in part (24.2.2025) by S.I. 2013/1582, reg. 6(2), Sch. 2 Pt. 1 (as amended by The Procurement Act 2023 (Consequential and Other Amendments) Regulations 2025 (S.I. 2025/163), regs. 1(2), 17 (with reg. 33))

Commencement Information

I1 S. 6 not in force at Royal Assent, see s. 127(2)

I2 S. 6 in force at 12.3.2024 by S.I. 2024/361, reg. 2(b)