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Energy Act 2004

  • Explanatory Notes Table of contents

Please note:

All reference to 'Parts' and 'sections' are from the Energy Act 2004. For other versions of these Explanatory Notes, see More Resources.

  1. Introduction

  2. Overview

  3. Territorial Extent and Territorial Application

    1. Scotland

    2. Wales

    3. Northern Ireland

  4. The Act

    1. Part 1: the Civil Nuclear Industry

      Summary and Background

      1. Chapters 1 and 2: Nuclear Decommissioning and Transfers Relating to Nuclear Undertakings

      2. Chapter 3: Civil Nuclear Constabulary

      3. Chapter 4: Authorisations Relating to Radioactive Waste

      4. Chapter 5: Miscellaneous Provisions Relating to Nuclear Industry

        1. Nuclear Liability

        2. Nuclear Security

        3. Authorisation of Government expenditure

        4. Option to purchase BE’s nuclear stations from third party

        5. Option for the Secretary of State to acquire BE’s shares in Nirex

  5. Commentary on Sections

    1. Chapter 1: Nuclear Decommissioning

      1. Section 1: The Nuclear Decommissioning Authority

      2. Section 2 and Schedule 1: Constitution of NDA

      3. Section 3: Designated responsibilities

      4. Section 4: Additional responsibilities under designating directions

      5. Section 5: Supplemental provisions of designating directions

      6. Section 6: Designations relating to Scotland

      7. Section 7: Supplemental functions

      8. Section 8: Special functions in relation to pensions etc.

      9. Section 9: General duties when carrying out functions

      10. Section 10: Powers for carrying out functions

      11. Section 11 and Schedule 2: Strategy for carrying out functions

      12. Section 12: Contents of strategy

      13. Section 13 and Schedule 3: Annual plans

      14. Section 14: Annual reports

      15. Section 15: Duty to decommission and clean up installations and sites

      16. Section 16: Duties to operate installations and provide treatment, etc

      17. Section 17: Duty to use installations etc for purposes of NDA

      18. Section 18: Directions by NDA to the person with control

      19. Section 19: Designation as a related site for the purpose of section 18

      20. Section 20: Duty to comply with directions under section 18

      21. Section 21: Financial responsibilities of NDA

      22. Section 22: Expenditure and receipts of NDA

      23. Section 23: Borrowing by the NDA

      24. Sections 24 and 25: Limit on NDA borrowing and Government guarantees for NDA borrowing

      25. Section 26: Accounts of NDA

      26. Section 27 and Schedule 4: Tax exemption for NDA activities

      27. Section 28: Taxation of NDA activities chargeable under Case VI of Schedule D

      28. Section 29: Disregard for tax purposes of cancellation etc of provisions

      29. Section 30: Disregard for tax purposes of provisions recognised by NDA

      30. Section 31: Establishment and maintenance of the Account

      31. Section 32: Examination of the Account

      32. Section 33: Validity of transactions

      33. Section 34: Amendment of Schedule 12 to Electricity Act 1989

      34. Section 35: Power to modify Chapter 1 of Part 1

      35. Section 36: Meaning of “nuclear site” etc and “person with control”

      36. Section 37: General interpretation of Chapter 1 of Part 1

    2. Chapter 2: Transfers Relating to Nuclear Undertakings

      1. Section 38 and Schedule 5: Nuclear transfer schemes

      2. Section 39 and Schedule 6: Transfers of publicly owned assets

      3. Section 40: Transfers with the consent of the transferor

      4. Section 41: Recovery of property from private ownership

      5. Section 42: Transfer of Nuclear Liabilities Investment Portfolio

      6. Section 43: Undertakings given by the Secretary of State

      7. Section 44: Extinguishment of BNFL losses for tax purposes

      8. Section 45 and Schedule 7: Further provisions applying to transferee companies

      9. Section 46 and Schedule 8: Pensions

      10. Section 47 and Schedule 9: Taxation

      11. Section 48: Supplementary powers of the Secretary of State, the NDA and UKAEA

      12. Section 49: Duty to assist the Secretary of State

      13. Section 50: Interpretation of Chapter 2 of Part 1

    3. Chapter 3: Civil Nuclear Constabulary

      1. Section 51 and Schedule 10: The Civil Nuclear Police Authority

      2. Section 52: The Civil Nuclear Constabulary

      3. Section 53 and Schedule 11: Chief Constable and other senior officers

      4. Section 54: Functions of senior officers

      5. Section 55: Members of the Constabulary

      6. Section 56: Jurisdiction of Constabulary

      7. Section 57: Stop and search under Terrorism Act 2000

      8. Section 58: Government, administration and conditions of service

      9. Section 59: Members of the Constabulary serving with other forces

      10. Section 60: Charges

      11. Section 61 and Schedule 12: Planning and reports

      12. Section 62: Inspection

      13. Section 63 and Schedule 13: Supervision by Secretary of State

      14. Section 64: Civil Nuclear Police Federation

      15. Section 65: Rank - related associations

      16. Section 66: Representation at certain disciplinary proceedings

      17. Section 67: Trade union membership

      18. Section 68: Application of offences etc applying to constables

      19. Section 69 and Schedule 14: Minor amendments relating to the Constabulary

      20. Section 70: Nuclear transfer scheme for UKAEA Constabulary

    4. Chapter 4: Authorisations Relating to Radioactive Waste

      1. Section 72: Transfer of authorisations

      2. Section 73: Applications for variation of authorisations

      3. Section 74: Periodic reviews of authorisations

      4. Section 75 and Schedule 15: Consequential amendments of the 1993 Act

    5. Chapter 5: Miscellaneous Provisions Relating to Nuclear Industry

      1. Section 76: Amendment for giving effect to international obligations

      2. Section 77: Regulation of equipment, software and information

      3. Section 78: Application of the 1965 Act to Northern Ireland

      4. Section 79: Expenditure on nuclear related matters

      5. Section 80: Additional functions of UKAEA

    6. Part 2: Sustainability and Renewable Energy Sources

      Summary and Background

      1. Chapter 1: Sustainable Energy

      2. Chapter 2: Offshore production of energy and Chapter 3: Decommissioning of offshore installations

      3. Chapter 4: Renewables Obligations relating to Electricity

      4. Chapter 5: Renewable transport fuel obligations

  6. Commentary on Sections

    1. Part 2: Sustainability and Renewable Energy Sources

      1. Chapter 1: Sustainable Energy

        1. Section 81: Reports under section 1 of the Sustainable Energy Act 2003

        2. Section 82: Microgeneration

        3. Section 83: Sustainable development

      2. Chapter 2: Offshore Production of Energy

        1. Section 84: Exploitation of areas outside the territorial sea for energy production

        2. Section 85: Application of criminal law to renewable energy installations

        3. Section 86: Prosecutions

        4. Section 87: Application of civil law to renewable energy installations

        5. Section 88: Orders in Council under sections 85 and 87

        6. Section 89: Activities offshore requiring 1989 Act licences

        7. Section 90: Modification of licence conditions for offshore transmission and distribution

        8. Section 91: Extension of transmission licences offshore

        9. Section 92: Competitive tenders for offshore transmission licences

        10. Section 93: Consents for generating stations offshore

        11. Section 94: Application of regulations under 1989 Act offshore

        12. Sections 95 to 98: Safety zones for installations

        13. Sections 99 and 100: Navigation and public rights of navigation

        14. Section 101: Application of civil aviation regulations to renewable energy installations

        15. Section 103: Other amendments consequential on Chapter 2 of Part 2

      3. Chapter 3: Decommissioning of Offshore Installations

        1. Section 105: Requirement to prepare decommissioning programmes

        2. Sections 106 and 107: Approval of decommissioning programmes and failure to submit or rejection of decommissioning programmes

        3. Section 108: Reviews and revisions of decommissioning programmes

        4. Section 109: Carrying out of decommissioning programmes and section 110: Default in carrying out decommissioning programmes

      4. Chapter 4: Renewables Obligations Relating to Electricity

        1. Section 115: Discharge of renewables obligation in Great Britain by payment

        2. Section 116: Issue of green certificates in Great Britain

        3. Section 117: Use of green certificates issued in Northern Ireland

        4. Section 118: Distributions to Northern Ireland suppliers

        5. Section 120: Issue of green certificates in Northern Ireland

        6. Section 121: GEMA’s power to act on behalf of Northern Ireland regulator

        7. Section 122: Consultation in relation to Northern Ireland renewables orders

        8. Section 123: Modification of conditions of Northern Ireland electricity licenses

      5. Chapter 5: Renewable Transport Fuel Obligations

        1. Section 124: Imposition of renewable transport fuel obligations

        2. Section 125: The Administrator

        3. Section 126: Determinations of amounts of transport fuel

        4. Section 127: Renewable transport fuel certificates

        5. Section 128: Discharge of obligation by payment

        6. Section 129: Imposition of civil penalties

        7. Section 130: Objections to civil penalties

        8. Section  131: Appeals against civil penalties

        9. Section  132: Interpretation

    2. Part 3: Energy Regulation

      Summary and Background

      1. Chapter 1: Electricity Trading and Transmission

        1. England and Wales

        2. Scotland

        3. Europe

        4. Main provisions

      2. Chapter 2: Interconnectors for Electricity and Gas

      3. Chapter 3: Special Administration Regime for Energy licensees

      4. Chapter 4: Further Provisions about Regulation

        1. Annual report on security of energy supplies

        2. Appeals from GEMA decisions

        3. Meaning of electricity supply

        4. Meaning of “high voltage line”

        5. Prepayment meters

        6. Inquiries under sections 36 and 37 of the 1989 Act

        7. Exclusion of confidential information from the Register

        8. Assistance for areas with high distribution costs

        9. Payments into the Scottish Consolidated Fund

  7. Commentary on Sections

    1. Chapter 1: Electricity Trading and Transmission

      1. Section 133: “New trading and transmission arrangements”

      2. Section 134: Power to modify licence conditions

      3. Section 135: Alteration of transmission activities requiring licence

      4. Section 136: Transmission licences

      5. Section 137: New standard conditions for transmission licences

      6. Section 138 and Schedule 17: Conversion of existing transmission licences

      7. Section 139: Grant of transmission licences

      8. Section 141 and Schedule 18: Property arrangements scheme

      9. Section 143 and Schedule 19: Amendments consequential on Chapter 1 of Part 3

    2. Chapter 2: Interconnectors for Electricity and Gas

      1. Sections 145 to 148: licensing of electricity interconnectors

      2. Sections 149 to 153: Gas interconnectors

    3. Chapter 3: Special Administration Regime for Energy Licensees

      1. Section 154: Energy administration orders

      2. Section 155: Objective of an energy administration

      3. Section 156: Applications for energy administration orders

      4. Section 157: Powers of court

      5. Section 158: Energy administrators

      6. Section 159 and Schedules 20 and 21: Conduct of energy administration, transfer schemes etc

      7. Section 160 to 164: Restrictions

      8. Section 160: Restrictions on winding-up orders

      9. Section 161: Restrictions on voluntary winding-up

      10. Section 162: Restrictions on making of ordinary administration orders

      11. Section 163: Restrictions on administrator appointments by creditors etc.

      12. Section 164: Restrictions on enforcement of security

      13. Section 165: Grants and loans

      14. Section 166: Indemnities

      15. Section 167: Guarantees where energy administration order is made

      16. Sections 168 to 169: Licence modifications relating to energy administration

      17. Section 168: Modifications of particular or standard conditions

      18. Section 169: Licence conditions to secure funding of energy administration

      19. Section 170: Modification of Chapter 3 of Part 3 under Enterprise Act 2002

      20. Section 171: Interpretation of Chapter 3 of Part 3

    4. Chapter 4: Further Provisions about Regulation

      1. Section 172: Annual report on security of energy supplies

      2. Section 173: Appeals to the Competition Commission

      3. Section 174 and Schedule 22: Procedure on appeals

      4. Section 175: Determination of appeals

      5. Section 176: Specialist members of Competition Commission

      6. Section 177: Modifications of standard conditions for funding appeals and references

      7. Section 178: Duty to have regard to best regulatory practice

      8. Section 179: Meaning of electricity supply

      9. Section 180: Meaning of “high voltage line”

      10. Section 181: Prepayment meters

      11. Section 182: Additional inspectors

      12. Section 183: Exclusion of confidential information from registers

      13. Section 184: Assistance for areas with high distribution costs

      14. Section 185: Adjustment of transmission charges

      15. Section 186: Restrictions on disclosure of information

      16. Section 187: Payments of sums raised by fossil fuel levy

    5. Part 4: Miscellaneous and Supplemental

      1. Section 188: Imposition of charges

      2. Section 189: International agreements relating to pipelines and offshore installations

      3. Sections 190 and 191: Application of general duties to Part 3 functions etc and Supplementary provision about licence condition powers

      4. Section 192: Service of notifications and other documents in electronic form

      5. Section 197: Repeals

  8. Schedules

    1. Schedule 1: The Nuclear Decommissioning Authority

    2. Schedule 2: Procedural requirements applicable to NDA’s Strategy

    3. Schedule 3: Procedural requirements applicable to NDA’s annual plans

    4. Schedule 4: Supplemental taxation provisions for exempt activities

    5. Schedule 5: Supplementary provisions about nuclear transfer schemes

    6. Schedule 6: Structure etc of the transferee companies

    7. Schedule 7: Finance and accounts of transferee companies

    8. Schedule 8: Pensions

    9. Schedule 9: Taxation provisions relating to nuclear transfer schemes

      1. Part 1 – Transfers to the NDA or a subsidiary of the NDA

      2. Part 2 – Other Transfers relating to BNFL or the UKAEA etc

      3. Part 3 – Transfers relating to relevant site licensees

      4. Part 4 – Transfer of Nuclear Liabilities Investment Portfolio

      5. Part 5 – Stamp duty etc

      6. Part 6 – Supplemental provisions of Schedule 9

    10. Schedule 10: The Civil Nuclear Police Authority

    11. Schedule 11: Removal and suspension of senior officers of Constabulary

    12. Schedule 12: Planning and reports about Constabulary

    13. Schedule 13: Directions by Secretary of State about Constabulary

    14. Schedule 14: Minor amendments relating to Constabulary

    15. Schedule 15: Amendments of 1993 Act

    16. Schedule 16: Applications and proposals for notices under section 95

    17. Schedule 17: Conversion of existing transmission licences: licensing scheme

    18. Schedule 18: Property arrangements schemes

    19. Schedule 19: Consequential amendments relating to Chapter 1 of Part 3

    20. Schedule 20: Conduct of energy administration

    21. Schedule 21: Energy transfer schemes

    22. Schedule 22: Procedure for appeals under section 173

      1. Application for permission to bring an appeal

      2. Addition of persons to application

      3. Suspension of decision

      4. Time limit for representations and observations by GEMA

      5. Consideration and determination of appeal by group

      6. Timetable for determination of appeal

      7. Matters to be considered on appeal

      8. Production of documents

      9. Oral hearings

      10. Written Statements

      11. Defaults in relation to evidence

      12. Procedural Rules

      13. Costs

      14. The Secretary of State’s power to modify time limits

    23. Schedule 23: Repeals

  9. Commencement

    1. Hansard References

  • Explanatory Notes Table of contents

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Explanatory Notes

Text created by the government department responsible for the subject matter of the Act to explain what the Act sets out to achieve and to make the Act accessible to readers who are not legally qualified. Explanatory Notes were introduced in 1999 and accompany all Public Acts except Appropriation, Consolidated Fund, Finance and Consolidation Acts.

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