Utilities Act 2000 (c. 27)

(The document as of February, 2008)

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30F Recovery of penalties

Where a penalty imposed under section 30A(1), or any portion of it, has not been paid by the date on which it is required to be paid and--

(a) no application relating to the penalty has been made under section 30E during the period within which such an application can be made, or

(b) an application has been made under that section and determined,

the Authority may recover from the licence holder, as a civil debt due to it, any of the penalty and any interest which has not been paid. "

(2) In section 28 of the 1986 Act (orders for securing compliance with certain provisions)--

(a) subsection (7A) (power to impose financial penalty in a final order under section 28) and subsection (9) (payment of sums received by way of financial penalty under section 28 to be paid into the Consolidated Fund) shall cease to have effect;

(b) in subsection (8) (interpretation) for "and 30" there is substituted "to 30F".

(3) Section 30(2)(b) of the 1986 Act (power of court to quash or substitute a monetary penalty on an application under section 30) shall cease to have effect.

(4) In section 36 of the 1986 Act (keeping of a register)--

(a) in subsection (1), for "and final and provisional orders" there is substituted ", final and provisional orders and penalties imposed under section 30A(1)";

(b) in subsection (2), after paragraph (e) there is inserted " ; and

(f) every notice under section 30A(5). "

(5) In section 38(1) of the 1986 Act (power to require information, etc.)--

(a) for "Director" in each place where it appears, there is substituted "Authority";

(b) after "requirement" there is inserted "or may be failing, or may have failed, to achieve any standard of performance prescribed under section 33A or 33AA,";

(c) for the words from "his functions" to "signed by him" there is substituted "its functions under section 28 or 30A to 30F in relation to that matter, by notice in writing";

(d) for "him" there is substituted "it".

96 Licence enforcement

(1) The 1986 Act is amended as follows.

(2) In subsection (1) of section 28 (orders for securing compliance with certain provisions), for "and (5)" there is substituted ", (5) and (5A)".

(3) In subsections (2), (4) and (6) of that section, for "subsection (5)" there is substituted "subsections (5) and (5A)".

(4) In subsection (5) of that section paragraphs (aa) and (b) shall cease to have effect.

(5) After subsection (5) of that section there is inserted--

" (5A) The Authority is not required to make a final order or make or confirm a provisional order if it is satisfied--

(a) that the licence holder has agreed to take and is taking all such steps as it appears to the Authority for the time being to be appropriate for the licence holder to take for the purpose of securing or facilitating compliance with the condition or requirement in question; or

(b) that the contraventions were or the apprehended contraventions are of a trivial nature. "

(6) In section 29 (procedural requirements for making or confirming orders under section 28), in subsections (1)(c) and (4)(b), for "28" there is substituted "21".

(7) Subsections (2) to (6) do not have effect in relation to--

(a) a provisional order which has been made before the commencement of the subsection making the amendment; or

(b) a final order in respect of which notice has been given under section 29(1) of the 1986 Act before the commencement of the subsection making the amendment.

Remuneration and service standards

97 Links between directors' remuneration and gas service standards

After section 33E of the 1986 Act there is inserted--

" Service standards and remuneration

33F Remuneration and service standards

(1) This section applies to any company which is authorised by a licence to carry on activities subject to price regulation.

(2) As soon as reasonably practicable after the end of each financial year of the company it must make a statement to the Authority--

(a) disclosing whether or not remuneration has been paid or become due during that financial year to the directors of the company as a result of arrangements falling within subsection (3); and

(b) where such remuneration has been paid or become due, describing the arrangements and the remuneration.

(3) Arrangements fall within this subsection if they are arrangements for linking the remuneration of the directors of the company to levels of performance as respects service standards in connection with activities subject to price regulation.

(4) A description under subsection (2)(b) must include in particular--

(a) a statement of when the arrangements were made;

(b) a description of the service standards in question;

(d) an explanation of how the remuneration was calculated.

(5) The statement required by subsection (2) must also state--

(a) whether or not there are in force in respect of the financial year during which the statement is made arrangements falling within subsection (3); or

(b) if not, whether the company intends that such arrangements will be in force at some time during that financial year,

and if there are, or it is intended that there will be, such arrangements in force the statement must describe those arrangements.

(6) A description under subsection (5) must--

(a) include in particular the matters listed in subsection (4)(a), (b) and (c); and

(b) where the arrangements described are different from any arrangements described under subsection (2)(b), state the likely effect of those differences on the remuneration of each director of the company.

(7) The statement required by subsection (2) must be made to the Authority in such manner as may be required by the Authority.

(8) The statement required by subsection (2)--

(a) must be published by the company making the statement in such manner as it reasonably considers will secure adequate publicity for it; and

(b) may be published by the Authority in such manner as it may consider appropriate.

(9) The duty of a company under this section applies in respect of any person who has at any time been a director of the company.

(10) In this section--

"activities subject to price regulation", in relation to any company, are activities for which--
(a)
a maximum price which may be charged by the company, or a method for calculating such a maximum price; or
(b)
a maximum revenue which may be received by the company, or a method for calculating such a maximum revenue,

is determined by or under the licence granted under this Part;
"company" means a company within the meaning of the [1985 c. 6.] Companies Act 1985 which is limited by shares;
"remuneration" in relation to a director of a company--
(a)
means any form of payment, consideration or other benefit (including pension benefit), paid or due to or in respect of the director; and
(b)
includes remuneration in respect of any of his services while a director of the company;
"service standards" in relation to any company, means standards relating to the quality of service received by customers or potential customers of the company, including any such standards which are--
(a)
set by or under any conditions included in a licence granted under this Part;
(b)
prescribed by the Authority in regulations made under section 33A and 33AA;
(c)
determined by the Authority under section 33B or 33BA; or
(d)
set or agreed to by the company. "

Miscellaneous

98 Help for disadvantaged groups of gas customers

After section 41 of the 1986 Act there is inserted--

" Adjustment of charges

41A Adjustment of charges to help disadvantaged groups of customers

(1) If the Secretary of State considers that members of any group (a "disadvantaged group") of customers of authorised suppliers are treated less favourably than other customers of theirs as respects charges for gas, he may make an order containing a scheme for the adjustment of charges for gas with a view to eliminating or reducing the less favourable treatment.

(2) The scheme may include--

(a) provision for the adjustment of charges by authorised shippers or authorised transporters (as well as by suppliers); and

(b) in relation to charges payable to suppliers, provision for the adjustment of charges payable by customers who are not members of the disadvantaged group (as well as by persons who are).

(3) The scheme shall--

(a) describe the disadvantaged group;

(b) specify the persons whose charges are covered by the scheme; and

(4) If the scheme does not relate to the whole of Great Britain, it shall specify the area or areas to which it relates.

(5) The scheme may--

(a) require authorised suppliers, authorised shippers or authorised transporters to supply information of any specified description, in any specified form, to any other such persons; and

(b) provide for the modification of conditions of licences,

for the purpose of facilitating the implementation of the scheme.

(6) An order shall not be made under this section unless a draft of the statutory instrument containing it has been laid before, and approved by a resolution of, each House of Parliament.

41B Orders: supplementary

(1) Before making an order under section 41A, the Secretary of State shall give notice--

(a) stating that he proposes to make an order and setting out its effect;

(b) stating the reasons why he proposes to make the order; and

(c) specifying the time (not being less than 28 days from the date of publication of the notice) within which representations or objections with respect to the proposed order may be made,

and shall consider any representations or objections which are duly made and not withdrawn.

(2) The notice shall be given--

(a) by serving a copy of it on the persons whose charges are covered by the proposed order; and

(b) by publishing it in such manner as the Secretary of State considers appropriate for bringing the proposed order to the attention of other persons likely to be affected by it.

(3) An order under section 41A shall continue in force for such period not exceeding three years as is specified in the order; but that does not prevent the making of another order to come into force at the end of that period.

(4) The Secretary of State may by order require authorised suppliers, authorised shippers or authorised transporters to supply information of any specified description, in any specified form, to any other such persons for the purpose of enabling the making of an order under section 41A.

(5) The Authority--

(a) shall monitor the effect of orders under section 41A and report its findings to the Secretary of State whenever he directs it to do so; and

(b) may require authorised suppliers, authorised shippers or authorised transporters to supply to the Authority, in any specified form, such information as it requires for carrying out that duty.

(6) In section 41A references to customers do not include customers of a description excluded by an order made by the Secretary of State.

(7) In this section and section 41A "authorised shipper" means a person authorised by a licence or exemption to arrange with any gas transporter for gas to be introduced into, conveyed by means of, or taken out of a pipe-line system operated by that transporter. "

99 Energy efficiency requirements for gas transporters and suppliers

For section 33BB of the 1986 Act (promotion of efficient use of gas) there is substituted--

" 33BC Promotion of the efficient use by consumers of gas

(1) The Secretary of State may by order impose--

(a) on each gas transporter (or each gas transporter of a specified description); and

(b) on each gas supplier (or each gas supplier of a specified description),

an obligation to achieve, within a specified period and in accordance with the order, the energy efficiency target to be determined by the Authority under the order for that transporter or supplier (and that obligation is referred to in this section as an "energy efficiency obligation").

(2) In this section "energy efficiency target" means a target for the promotion of improvements in energy efficiency, that is to say, efficiency in the use by consumers of gas conveyed through pipes, electricity or any other source of energy which is specified in the order.

(3) An order under this section may specify criteria by reference to which the Authority is to determine energy efficiency targets for the gas transporters and gas suppliers on whom obligations are imposed by the order.

(4) The Secretary of State and the Authority shall carry out their respective functions under this section in the manner he or it considers is best calculated to ensure that no gas transporter is unduly disadvantaged in competing with other gas transporters and no gas supplier is unduly disadvantaged in competing with other gas suppliers.

(5) The order may make provision generally in relation to the energy efficiency obligations which it imposes, including in particular provision--

(a) as to the treatment of persons who become gas transporters or gas suppliers after the beginning of the period to which the order relates;

(b) as to the action which qualifies for the purpose of meeting the whole or any part of an energy efficiency target;

(c) as to the method by which improvements in energy efficiency attributable to any qualifying action are to be assessed;

(d) requiring transporters and suppliers to give to the Authority specified information, or information of a specified nature, about their proposals for complying with their energy efficiency obligations;

(e) requiring the Authority to determine--

(i) whether any proposed action qualifies for the purpose of achieving the whole or any part of a person's energy efficiency target; and

(ii) if so, what improvement in energy efficiency is to be attributed for that purpose to the proposed action or to any result of that action specified in the determination; and

(f) requiring transporters or suppliers to produce to the Authority evidence of a specified kind demonstrating that they have complied with their energy efficiency obligations.

(6) The order may make provision authorising the Authority to require a transporter or supplier to provide it with specified information, or information of a specified nature, relating to--

(a) his proposals for complying with his energy efficiency obligation; or

(b) the question whether he has complied with that obligation.

(7) The order may make provision as to circumstances in which--

(a) a person's energy efficiency target may be altered during the period to which the order relates;

(b) the whole or any part of a person's energy efficiency target may be treated as having been achieved by action taken otherwise than by or on behalf of that person;

(c) any action taken before the period to which the order relates may be treated as qualifying action taken during that period;

(d) the whole or any part of a person's energy efficiency target may be transferred to another gas transporter or gas supplier or to an electricity distributor or electricity supplier (within the meaning of Part I of the [1989 c. 29.] Electricity Act 1989); or

(e) a person may carry forward the whole or any part of his energy efficiency target for the period to which the order relates to a subsequent period.

(8) The order may--

(a) provide for exceptions from any requirement of the order;

(b) provide that any specified requirement contained in it is to be treated as a relevant requirement for the purposes of this Part;

(d) subject to subsection (4), make different provision for different cases (including different provision in relation to different transporters or suppliers).

(9) The order may include provision for treating the promotion of the supply to premises of--

(a) electricity generated by a generating station which is operated for the purposes of producing heat, or a cooling effect, in association with electricity;

(b) heat produced in association with electricity or steam produced from (or air or water heated by) such heat; or

as promotion of improvements in energy efficiency.

(10) No person shall be required by virtue of this section to provide any information which he could not be compelled to give in evidence in civil proceedings in the High Court or, in Scotland, the Court of Session.

(11) Before making an order under this section the Secretary of State shall consult the Authority, the Council, gas transporters and gas suppliers and such other persons as he considers appropriate.

(12) An order under this section shall not be made unless a draft of the instrument containing it has been laid before, and approved by a resolution of, each House of Parliament. "

100 Exercise of powers to make regulations

For section 47(7) of the 1986 Act (power to make regulations to be exercisable by statutory instrument) there is substituted--

" (7) Any power to make regulations conferred by this Part on the Secretary of State or the Authority shall be exercisable by statutory instrument.

(8) Any statutory instrument containing regulations under this Part made by the Secretary of State shall, except as otherwise provided by this Act, be subject to annulment in pursuance of a resolution of either House of Parliament. "

101 Standards of gas quality

After section 15A of the 1986 Act (billing disputes) there is inserted--

" 16 Standards of gas quality

(1) The Authority may, with the consent of the Secretary of State, prescribe--

(a) standards of pressure and purity to be complied with by gas transporters in conveying gas to premises or to pipe-line systems operated by other gas transporters; and

(b) other standards with respect to the properties, condition and composition of gas so conveyed.

(2) Before making any regulations under this section the Authority shall consult such persons and organisations as it considers appropriate and such gas transporters as appear to it to be affected by the regulations.

(3) The Authority shall appoint competent and impartial persons for the purpose of--

(a) carrying out tests of gas, apparatus or equipment in accordance with regulations under this section; and

(b) assisting the Authority in exercising functions under this section and regulations made under it.

(4) Regulations under this section may make provision--

(a) for requiring tests of gas conveyed by gas transporters to be carried out by persons appointed under subsection (3) or by gas transporters for the purpose of ascertaining whether the gas conforms with the standards prescribed by the regulations;

(b) for requiring such tests to be carried out on the basis of samples taken by persons appointed under subsection (3) or by gas transporters; and

(c) for requiring samples of gas taken under paragraph (b) to be provided by gas transporters for the purpose of carrying out such tests.

(5) Regulations under this section may make provision--

(a) for requiring such premises, apparatus and equipment as the Authority may direct to be provided and maintained by gas transporters for the purpose of carrying out tests required under subsection (4)(a);

(b) for requiring tests of apparatus and equipment so provided to be carried out by persons appointed under subsection (3); and

(6) Regulations under this section may make provision--

(a) as to the places or premises and the times at which, and the manner in which--

(i) tests under this section are to be carried out;

(ii) samples of gas are to be taken and provided under this section; and

(iii) results of tests under this section are to be notified or made available;

(b) for the Authority to require by direction any matter which may be required by regulations by virtue of paragraph (a);

(c) for persons representing the gas transporter concerned to be present during the carrying out of any tests carried out by persons appointed under subsection (3);

(d) for the results of tests under this section to be made available to other licence holders and to the public;

(e) for requiring gas transporters to notify the results of such tests carried out by them to the Authority or to any person appointed under subsection (3);

(f) for conferring powers of entry on property owned or occupied by gas transporters for the purpose of carrying out tests under this section and otherwise for the purposes of the regulations.

(7) Subject to subsection (8), the Authority may by notice in writing require a gas transporter to give to the Authority, or to any person appointed by it for the purpose, within such time and at such place as may be specified in the notice, such information as the Authority may reasonably require for the purpose of making regulations under this section or of giving directions under such regulations.

(8) A gas transporter shall not be required under subsection (7) to give any information which he could not be compelled to give in evidence in civil proceedings before the High Court or, in Scotland, the Court of Session.

(9) Every person who is a gas transporter during any period shall pay to the Authority such proportion as the Authority may determine of such part of its expenses for that period as the Authority may determine to be attributable to its functions in connection with the testing of gas for the purposes of this section.

(10) It shall be the duty of every gas transporter to conduct his business in such a way as can reasonably be expected to secure compliance with the standards set under subsection (1). "

102 Maximum prices for reselling gas

In section 37 of the 1986 Act (maximum prices for reselling gas)--

(a) in subsection (1), for "shall" (in the first place it appears) and "gas suppliers" there is substituted respectively "may" and "authorised suppliers"; and

(b) in subsections (2) and (4) for "a gas supplier" there is substituted "an authorised supplier".

Part VI Miscellaneous and Supplementary

Miscellaneous

103 Overall energy efficiency targets

(1) For the purposes of the exercise by the Authority of its functions under either or both of--

(a) section 33BC of the 1986 Act (energy efficiency requirements for gas transporters and suppliers) and any order made under that section, and

(b) section 41A of the 1989 Act (energy efficiency requirements for electricity distributors and suppliers) and any order made under that section,

the Secretary of State may by order specify an overall target for the promotion of improvements in energy efficiency.

(2) Where an overall target applies in relation to both sections mentioned in subsection (1), the order specifying the target may make provision for the Authority to apportion the target between--

(a) persons who are gas transporters or gas suppliers (for the purposes of section 33BC of the 1986 Act and any order under that section); and

(b) persons who are electricity distributors or electricity suppliers (for the purposes of section 41A of the 1989 Act and any order under that section),

by reference to such criteria as may be specified in the order.

(3) The Authority shall exercise its functions under the provisions mentioned in subsection (1) in relation to which an overall target applies (and in particular its functions relating to the determination of energy efficiency targets) in the manner it considers best calculated to result in the achievement of the overall target.

(4) Before making an order under this section the Secretary of State shall consult the Authority, the Council, gas transporters, gas suppliers, electricity distributors, electricity suppliers, and such other persons as he considers appropriate.

(5) An order under this section shall not be made unless a draft of the instrument containing it has been laid before, and approved by a resolution of, each House of Parliament.

104 Specialist members of the Competition Commission

(1) The Secretary of State shall appoint not less than six members of the Competition Commission ("the Commission") for the purpose of the exercise by the Commission of any function under or by virtue of--

" (a) section 24, 26A or 41E of the 1986 Act; or

(b) section 12, 14A or 56C of the 1989 Act.

(2) In selecting a group to perform any function of the Commission under or by virtue of any provision mentioned in subsection (1), the chairman of the Commission shall select one or more of the members appointed under subsection (1) to be members of the group.

(3) In paragraph 2(1)(d) of Schedule 7 to the [1998 c. 41.] Competition Act 1998 (membership of Commission to include specialist members appointed under gas and electricity legislation), for sub-paragraph (ii) there is substituted--

" (ii) section 104 of the Utilities Act 2000; " .

(4) Section 12(9) and (9A) of the 1989 Act (which are superseded by this section) shall cease to have effect.

(5) The persons who are, immediately before the commencement of this section, members of the Competition Commission by virtue of appointments made under section 12(9) of the 1989 Act shall continue as members of the Commission and their appointments shall be treated as having been made under this section.

(6) Nothing in this section affects any group which has been selected, before the commencement of this section, to perform functions of the Commission in relation to any reference under or by virtue of section 24 of the [1986 . 44.] 1986 Act or section 12 of the 1989 Act.

105 General restrictions on disclosure of information

(1) Information which--

(a) has been obtained under or by virtue of the provisions of this Act, Part I of the 1986 Act or Part I of the 1989 Act; and

(b) relates to the affairs of any individual or to any particular business,

shall not be disclosed during the lifetime of the individual or so long as the business continues to be carried on, except as provided below.

(2) Subsection (1) does not apply to a disclosure made with the consent of the individual or the person for the time being carrying on the business.

(3) Subsection (1) does not apply to a disclosure if--

(a) it is made for the purpose of facilitating the performance of any functions of the Secretary of State, the Authority, the Council or the Competition Commission under the 1986 Act, the 1989 Act or this Act;

(b) it is required by a notice under section 38(1A) of the 1986 Act or section 28(2A) of the 1989 Act;

(d) it is made by one licence holder to another and is required by that other licence holder for purposes connected with the carrying on of relevant activities.

(4) Subsection (1) does not apply to any disclosure of information made--

(a) for the purpose of facilitating the performance by a person or body mentioned in subsection (5) of any function under an Act or instrument specified in subsection (6);

(b) for the purpose of facilitating the performance by the Comptroller and Auditor General, the Health and Safety Commission or the Health and Safety Executive of any of his or its functions;

(c) for the purpose of facilitating the exercise by the Secretary of State of any power conferred by the Financial Services Act 1986 or by the enactments relating to companies, insurance companies or insolvency;

(d) for the purpose of facilitating the performance of the functions of an inspector appointed under the enactments relating to companies;

(e) for the purpose of facilitating the performance by an official receiver of his functions under the enactments relating to insolvency or by a recognised professional body for the purposes of section 391 of the [1986 c. 45.] Insolvency Act 1986 of its functions as such a body;

(f) in connection with the investigation of any criminal offence or for the purposes of any criminal proceedings;

(g) for the purposes of any civil proceedings brought under or by virtue of the 1986 Act, the 1989 Act, this Act or any Act or instrument specified in subsection (6); or

(h) in pursuance of a Community obligation.

(5) The persons and bodies specified for the purposes of subsection (4)(a) are--

(a) a Minister of the Crown;

(b) the Competition Commission;

(d) the Director General of Telecommunications;

(e) the Director General of Water Services;

(f) the Director General of Electricity Supply for Northern Ireland;

(g) the Director General of Gas for Northern Ireland;

(h) the Rail Regulator;

(i) the Civil Aviation Authority;

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