The Energy Act 2016 (Commencement No. 2 and Transitional Provisions) Regulations 2016

EXPLANATORY NOTE

(This note is not part of the Regulations)

These Regulations bring into force specified provisions of the Energy Act 2016 (c. 20) (“the Act”). These are the second commencement regulations made under the Act.

These Regulations commence the majority of the provisions under the Act relevant to formally establishing the Oil and Gas Authority (“the OGA”) as an independent regulator, transferring existing regulatory powers and functions from the Secretary of State to the OGA and vesting the OGA with the additional powers set out in the Act.

Regulation 2 commences all provisions of the Act that relate to the OGA on 1st October 2016, so far as not already in force and excepting sections 30 to 36. Sections 30 to 36 relate to information and samples plans, the power of the OGA to require information and samples, the role of information and samples coordinators, and appeals against OGA decisions on information and samples plans. Regulation 2 also commences provisions in Part 3 which relate to oil and gas infrastructure and information.

Parts 4, 5 and 6 of the Act have already been brought into force by section 84 of the Act and the Energy Act 2016 (Commencement No. 1 and Savings Provisions) Regulations 2016 (S.I. 2016/602 (C. 43)), which were amended by the Energy Act 2016 (Commencement No. 1 and Savings Provisions) (Amendment) Regulations 2016 (S.I. 2016/710 (C. 50)).

Regulation 3 provides that the Oil and Gas Authority (Levy) Regulations 2016 (S.I. 2016/318) have effect as if made under the powers set out at sections 13, 14 and 82 of the Act, with any outstanding amounts payable to or by the Secretary of State under those Regulations being payable to or by the OGA. Sections 13, 14 and 82 of the Act relate to the Secretary of State’s power to provide for a levy to be imposed on licence holders by regulations.

An impact assessment of the effect that the Act will have on the costs of business and the voluntary sector has been produced, and a copy is available at www.legislation.gov.uk. No separate impact assessment has been produced for this instrument.