Energy: Gas and Electricity Supply

Energy supply is crucial for both the well-being of consumers and the functioning of our economy. The basic regulatory regime was set up when the gas and electricity markets were privatised and was designed to ensure that consumers were given necessary protections and were also able to benefit from competition.

The legislation outlines a number of duties and responsibilities to be followed by energy businesses, such as the duty to connect consumers to the network on request. Unless they are exempt, businesses require licences to operate in energy markets and they are required to comply with licence conditions and regulations designed to ensure that consumers are protected and competition flourishes. Ofgem administers the licensing regime and is able to take action against businesses which do not comply with their responsibilities under both the licence and other regulatory requirements.

You can find the regulations that relate to Gas and Electricity Markets below to the left.

UK Government

Electricity (Applications for Licences, Modifications of an Area and Extensions and Restrictions of Licences) Regulations 2009

These Regulations set out the information and other documents that are required to be submitted with applications for generation, transmission, distribution, supply and interconnector licences (and for modifications of an area of transmission licences and extensions, or restrictions of supply and distribution licences) under the Electricity Act 1989

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Domestic

Electricity (Miscellaneous Provisions) Act 2003

An Act to make provision in connection with the provision of financial assistance to, or the acquisition of any securities of or any part of the undertaking or assets of, British Energy p.l.c. or any of its subsidiaries

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Domestic

Competition and Service (Utilities) Act 1992

An Act to make provision with respect to standards of performance and service to customers in relation to the telecommunications, gas supply, electricity supply, water supply and sewerage service industries; to make provision with respect to complaints by, and disputes with, customers in those industries; to make provision with respect to the powers of the regulators of those industries and with respect to related matters

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Domestic

Gas and Electricity (Dispute Resolution) Regulations 2009, SI 2009/1349

These regulations implement EU directive 2004/54/EC concerning common rules for the internal market in natural gas

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EU

Electricity (Fuel Mix Disclosure) Regulations 2005, SI 2005/391

These Regulations amend the standard conditions in electricity supply licences in Great Britain in
order to give effect to Article 3.6 of Directive 2003/54/EC concerning common rules for the
internal market in electricity

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EU

Electricity (Protected Persons) (England and Wales) Pension Regulations 1990, SI 1990/346

These Regulations provide for the protection of the pension rights of existing and former employees and Board Members in the electricity supply industry in England and Wales on the transfer date as defined in section 95(1) of the Electricity Act 1989

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Domestic

Electricity (Register) Order 1990, SI 1990/194

This Order prescribes the hours during which the register maintained by the Director General of Electricity Supply under section 49 of the Electricity Act 1989 is to be avail(able for public inspection and the fees to be paid for the supply of a copy of, or extract from, the register.

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Domestic

Electricity Act 1989 (Consequential Modifications of Enactments) Order 1990, SI 1990/577

This Order makes modifications to the Channel Tunnel Act 1987 and the Dartford—Thurrock Crossing Act 1988. These modifications are consequential on section 66 of the Electricity Act 1989 (by virtue of which are the property, rights and liabilities of the Central Electricity Generating Board became property, rights and liabilities of successor companies

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Domestic

Electricity Act 1989 (Consequential Modifications of Subordinate Legislation) Order 1990, SI 1990/526

These Regulations are consequential to the Electricity Act 1989. Regulation 2 amends the items of subordinate legislation listed in the Schedule so as to apply to that legislation references to holders of licences under the Act

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Domestic

Electricity Act 1989 (Nominated Companies) (England and Wales) Order 1990, SI 1990/224

This Order nominates the companies listed in Schedule 1 as successor companies for the purposes of section 65(1) to the Area Boards; the companies listed in Part 1 of Schedule 2 as successor companies for the purposes of section 66(1) to the Central Electricity Generating Board; and the companies listed in Part II of Schedule 2 as successor companies for the purposes of section 66(2) to the Electricity Council.

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Domestic

Electricity and Gas (Determination of Turnover for Penalties) Order 2002, SI 2002/1111

This Order makes provision for the determination of the turnover of a licence holder for the purposes of section 27A(8) of the Electricity Act 1989 (“the Electricity Act”) and section 30A(8) of the Gas Act 1986 (“the Gas Act”)

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Domestic

Electricity and Gas Appeals (Designation and Exclusion) Order 2005, SI 2005/1646

This Order designates the documents in relation to which decisions of the Gas and Electricity Markets Authority may be appealed to the Competition Commission under Part 3 Chapter 4 of the Energy Act 2004

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Domestic

Electricity and Gas Appeals (Designation and Exclusion) Order 2009, SI 2009/648

This Order designates two further documents in relation to which certain decisions of the Gas and Electricity Markets Authority (“GEMA”) may be appealed to the Competition Commission under the Energy Act 2004

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Domestic

Electricity and Gas Appeals (Modification of Time Limits) Order 2006, SI 2006/1519

This Order modifies the time limit within which costs incurred by the Competition Commission (or costs which the Competition Commission orders one party to pay to the other) in connection with the determination of appeals under section 173 of the Energy Act 2004 must be paid.

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Domestic

Meters (Certification) (Fees) Regulations 1989

The Regulations increase the amount of the fee payable by the holders of such authorisations to the Secretary of State towards administrative expenses incurred by him by virtue of section 50A of the Schedule from 15 pence to 16 pence for each meter certified

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Domestic

Meters (Determination of Questions) (Expenses) Regulations 1988

These regulations provide for Electricity Boards to make monthly payments towards administrative expenses incurred by the Secretary of State in connection with the determination of questions as to the correctness of electricity meters. The amount payable by each Board as compared with the amount payable under the Regulations of 1987 is increased or reduced, according to their use of the Electricity Meter Examining Service in the previous year

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Domestic

Electricity and Gas (Modification of Standard Conditions of Licences) Order 2003, SI 2003/1746

This order has lapsed with the introduction of the implementation of the Electricity and Gas (Internal Markets ) Regulations 2011 on 9 November. It should be removed from the list of regulations to be put on the website

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Domestic

British Gas Corporation (Dissolution) Order 1990

Dissolved the British Gas corporation on 28 February 1990, in exercise of S57(2) of the Gas Act 1986.

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Domestic

Gas (Exempt Supplies) Act 1993

Amends S36 of the Gas Act 1986 relating to the keeping of register of notifications, directions, exemptions, revocations, authorisations, and orders.

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Domestic

Gas (Exemptions) Order 2011

Grants a number of exemptions from the requirement under section 5 of the Gas Act 1986 to hold a licence for the transportation, supply and shipping of gas when carrying out those activities in the circumstances outlined in the Order.

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Domestic

Gas (Extent of Domestic Supply Licences) (Amendment) Order 1996, SI 1996/3275

Introduces competition in domestic gas supply to certain counties in February and March 1997.

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Domestic

Gas (Extent of Domestic Supply Licences) Order 1996, SI 1996/752

Provides for the phased introduction of competition in the supply of piped gas to premises at rates not expected to exceed 2,500 therms a year (predominately domestic premises) in particular areas.

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Domestic

Gas (Extent of Domestic Supply Licences) Order 1997, SI 1997/826

Provides for the phased introduction of competition in the supply of piped gas to premises at rates not expected to exceed 2,500 therms a year (predominately domestic premises) in particular areas.

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Domestic

Gas (Metrication) Regulations 1992, SI 1992/450

Implements Council Directive No. 80/181/EEC (as amended), which establishes the units of measurement to be used throughout the Community, and amends the Gas Act 1986 accordingly; enables public gas supplies to charge based on kWh rather than therms.

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EU

Gas (Third Party Access) Regulations 2004, SI 2004/2043

Amends the Gas Act 1986 to provide for third party access to downstream gas networks, to comply with European obligations.

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EU

Gas Act 1986

Act that privatised the gas industry, established the regulator, and set out licencing requirements and other provisions regulating the gas market.

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Domestic

EU

Gas Act 1986 (Appointed Day) Order 1986

The Act provides for the appointment and functions of a Director General of Gas Supply and the establishment and functions of a Gas Consumers’ Council; to abolish the privilege conferred on the British Gas Corporation by the Gas Act 1972; to make new provision with respect to the supply of gas through pipes and certain related matters.

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Domestic

Gas Act 1986 (Consequential Modifications of Subordinate Legislation) Order 1986

This order provides a number of minor and consequential modifications to the 1986 Order. These include clarification and definitions of key terms and timings.

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Domestic

Gas Act 1986 (Exemption from the Requirement for an Interconnector Licence) Order 2006, SI 2006/2000

Grants exemption from the requirement to hold a licence for operators of a gas interconnector that does not subsist wholly or partly to connect a gas transportation system in Great Britain to an equivalent system in another country or territory.

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Domestic

Gas Act 1986 (Exemption) (No 2) Order 2005

Exempts any gas transporter who operates the National Transmission System (NTS) or a regional distribution network (DN) in relation to arrangements with another such transporter for gas to be taken out of the NTS or introduced into or taken out of a DN at certain connection points.

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Domestic

Gas Act 1986 (Exemption) Order 1997, SI 1997/2427

Exempts Premier Transco Limited in respect of the conveyance of gas to Stranraer in specified circumstances.

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Domestic

Gas Act 1986 (Exemption) Order 2005

Exemption from the requirements to hold a licence in respect of the conveyance of gas from an LNG import facility to a pipe-line system operated by a licensed gas transporter.

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Domestic

Gas Act 1986 (Government Shareholding) Order 1987, SI 1987/866

Sets the target investment limit for the Government shareholding in British Gas plc at 2.680 per cent of the voting rights exercisable in all circumstances at general meetings of the company

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Domestic

Gas Act 1986 (Nominated Company) Order 1986, SI 1986/1317

Nominates British Gas public limited company as the company to receive the property, rights and liabilities of British Gas Corporation.

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Domestic

Gas Act 1986 (Transfer Date) Order 1986, SI 1986/1318

Appoints 24th August 1986 as the day upon which the property, rights and liabilities of the British Gas Corporation become the property, rights and liabilities of British Gas public limited company

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Domestic

Gas Act 1995

Amends Parts I and III of the Gas Act 1986 to make provision for requiring the owners of certain gas processing facilities to make them available to other persons; and for connected purposes

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Domestic

EU

Gas Act 1995 (Consequential Modifications of Local Acts and Orders) Order 1996, SI 1996/362

Makes modifications to local Acts and Orders in consequence of the enactment of the Gas Act 1995

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Domestic

Gas Act 1995 (Consequential Modifications of Subordinate Legislation) Order 1996

Makes modifications to subordinate legislation in consequence of the enactment of the Gas Act 1995

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Domestic

Gas Act 1995 (Repeal of Superseded Provisions of the Gas Act 1986) Order 1996, SI 1996/3203

Repeals paragraph 22 of Schedule 2B to the Gas Act 1986 which provision has been superseded by the Gas Safety (Rights of Entry) Regulations 1996

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Domestic

Gas Act 1995 (Transitional Provisions and Savings) (No 2) Order 1996, SI 1996/399

Makes a number of transitional provisions and savings in relation to the coming into force of the new regulatory regime for the conveyance, supply and shipping of gas introduced by the Gas Act 1995 as from 1st March 1996.

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Domestic

Electricity (Imported Capacity) Regulations 1990, SI 1990/265

These Regulations set out the circumstances in which, and the extent to which, electricity generated outside the United Kingdom is to be treated, for the purposes of section 32(5)(a) of the Electricity Act 1989, as generated by a non-fossil fuel generating station

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Domestic

Gas (Meters) Regulations 1983, as amended by the:
Gas (Meters) (Amendment) Regulations 1991,
Gas (Meters) (Amendment) Regulations 1993,
Gas (Meters) (Amendment) Regulations 1995, SI 1995/1251

Regulations covering the prescribed standards, stamping arrangements, and dispute testing of gas meters.

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Measuring Instruments (Active Electrical Energy Meters) Regulations 2006

Implements the Measuring Instruments directive for placing on the market and putting into use active electrical energy meters on or after the 30th October 2006.

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EU

Measuring Instruments (EC Requirements) (Electrical Energy Meters) Regulations 1995, as amended by the:
Measuring Instruments (EC Requirements) (Electrical Energy Meters) (Amendment) Regulations 2002

Enables an electricity meter having an EC pattern approval to be of an approved pattern or construction. They also deem a meter which bears the mark of EC initial verification to be certified as required.

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EU

Measuring Instruments (EEC Requirements) (Gas Volume Meters) Regulations 1988, as amended by the:
Measuring Instruments (EEC Requirements) (Gas Volume Meters) (Amendment) Regulations 1996

Confers SoS powers in 1988 regs to DG Gas I211Supply. Also confers power to charge fees.
Amendment implements the Measuring Instruments directive for placing on the market and putting into use active electrical energy meters on or after the 30th October 2006.

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EU

Measuring Instruments (Gas Meters) Regulations 2006

Implements the Measuring Instruments directive for placing on the market and putting into use gas meters on or after the 30th October 2006.

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EU

Electricity and Gas (Billing) Regulations 2008, SI 2008/1163

These Regulations modify the standard conditions in electricity and gas supply licences in Great Britain. The purpose of the modifications is to require electricity and gas suppliers to provide information to domestic customers comparing their gas or electricity use in one period with the same period in the previous year

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Domestic

Electricity (Class Exemptions from the Requirement for a Licence) Order 2001, SI 2001/3270, as amended by the:
Electricity (Class Exemptions from the Requirement for a Licence) (Amendment) Order 2005, SI 2005/488
Electricity (Class Exemptions from the Requirement for a Licence) (Amendment) Order 2007, SI 2007/629

This Order grants exemption from the requirements of the Electricity Act 1989 prohibiting the generation of electricity without a licence, the distribution of electricity without a licence and the supply of electricity to premises without a licence

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Domestic

Electricity (Exemption from the Requirement for a Generation Licence) Orders:
Electricity (Exemption from the Requirement for a Generation Licence) (England and Wales) (No 2) Order 2003;
Electricity (Exemption from the Requirement for a Generation Licence) (England and Wales) Order 2002, SI 2002/823;
Electricity (Exemption from the Requirement for a Generation Licence) (England and Wales) Order 2003, SI 2003/2380;
Electricity (Exemption from the Requirement for a Generation Licence) (England and Wales) Order 2005, SI 2005/2242;
Electricity (Exemption from the Requirement for a Generation Licence) (Keadby) (England and Wales) Order 2010;
Electricity (Exemption from the Requirement for a Generation Licence) (Lynn and Inner Dowsing) (England and Wales) Order 2009;
Electricity (Exemption from the Requirement for a Generation Licence) (No 2) Order 2003, SI 2003/3318;
Electricity (Exemption from the Requirement for a Generation Licence) (No 2) Order 2004, SI 2004/1776;
Electricity (Exemption from the Requirement for a Generation Licence) (Rhyl Flats) (England and Wales) Order 2009;
Electricity (Exemption from the Requirement for a Generation Licence) Order 2004, SI 2004/1179;
Electricity (Individual Generation Exemptions) Order 2011;
Electricity Act 1989 (Exemption from the Requirement for a Generation Licence) (Burbo Bank) (England and Wales) Order 2007, SI 2007/993;
Electricity Act 1989 (Exemption from the Requirement for a Generation Licence) (England and Wales) Order 2006, SI 2006/2978;
Electricity Act 1989 (Exemption from the Requirement for a Generation Licence) (Gunfleet Sand) (England and Wales) Order 2007, SI 2007/990;
Electricity Act 1989 (Exemption from the Requirement for a Generation Licence) (Gunfleet Sands II) (England and Wales) Order 2008;
Electricity Act 1989 (Exemption from the Requirement for a Generation Licence) (Little Cheyne Court) (England and Wales) Order 2008;
Electricity Act 1989 (Exemption from the Requirement for an Interconnector Licence) Order 2006;

These orders grant exemption from the requirements of section 4(1)(a) of the Electricity Act 1989 (which prohibits the generation of electricity for supply without a licence) to specific geographical locations.

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Domestic

Electricity Supply Pension Scheme (Eligible Persons) Regulations 1990, SI 1990/164

These regulations extend the eligibility of the pension scheme to include board members and associated people.

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Domestic

Electricity Supply Pension Scheme (Transfer Date Amendments) Regulations 1990, SI 1990/318

These regulations define certain responsibilities of the constituent bodies of the electricity supply industry in England and Wales in relation to the Electricity Supply Pension Scheme

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Domestic

Electricity (Connection Charges) Regulations 2002, SI 2002/93, as amended by the:
Electricity (Connection Charges) (Amendment) Regulations 2002, SI 2002/3232

These regulations provide for an electricity distributor to recover from subsequent users of electric lines and electrical plant first provided for the purpose of giving a connection to the premises or distribution system of another person an amount in respect of the expenses incurred in first providing the line or plant.

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Domestic

Energy Administration Rules 2005, SI 2005/2483

The rules contain the administrative provision relating to a special administration regime for electricity network transmission and distribution companies and gas distribution companies.

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Domestic

Gas and Electricity Regulated Providers (Redress Scheme) Order 2008, SI 2008/2268

These regulations provide a framework for domestic and micro businesses to have access to a statutory redress scheme if they have not been able to resolve a complaint with their energy provider directly.

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Domestic

Transfer of Functions (Energy) Order 1992, SI 1992/1314

This Order transfers to the Secretary of State for Trade and Industry all the functions vested under various enactments in the Secretary of State for Energy

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Domestic

Electricity Act 1989

An Act to provide for the appointment and functions of a Director General of Electricity Supply and of consumers’ committees for the electricity supply industry; to make new provision with respect to the supply of electricity through electric lines

Schedule 8 – Notification of relevant planning authority of applications under s36 and s37 of the Electricity Act 1989

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Domestic

Energy Act 2004 (Assistance for Areas with High Distribution Costs) Order 2005

This Order is made under section 184 of the Energy Act 2004. It establishes a scheme for offsetting the costs of distributing electricity in the area of Northern Scotland

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Domestic

Energy Act 2008

The Energy Bill contains the legislative provisions required to implement UK energy policy following the publication of the Energy Review 2006 and the Energy White Paper 2007.

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Domestic

Energy Act 2008 (Commencement No 1 and Savings) Order 2009

This Order brings into force all the provisions of the Energy Act 2008 excepting sections 2 to 16. In addition, Article 5 provides that sections 32 to 32C of the Electricity Act 1989 shall continue to have effect in relation to the Renewables Obligation Orders 2006 and 2007, until such time as all obligations and requirements under those orders have been discharged

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Domestic

Energy Act 2010

Includes provisions relating to the demonstration, assessment and use of carbon capture and storage technology; to make provision about reports on decarbonisation of electricity generation and development and use of carbon capture and storage technology; to make provision for requiring benefits to be provided by holders of gas or electricity supply licences.

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Domestic

Gas (Extent of Domestic Supply Licences) Order 1996

This Order provides for the phased introduction of competition in the supply of piped gas to premises at rates not expected to exceed 2,500 therms a year (predominately domestic premises).

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Domestic

Gas (Extent of Domestic Supply Licences) Order 1997

This Order provides for the remaining stages in the introduction of competition in the supply of gas through pipes to premises at which the rate of supply is not expected to exceed 2,500 therms a year . It also enables the Director General of Gas Supply to determine the “relevant date”, which is to be no earlier than 1st April 1998 and no later than 1st January 1999, from which any licensed gas supplier may supply domestic premises anywhere in Great Britain subject only to any restrictions in his particular licence

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Domestic

Gas (Register) Order 1988

This Order prescribes the hours during which the register maintained by the Director General of Gas Supply under section 36 of the Gas Act 1986 is to be kept open for public inspection and the fees payable to the Director for the supply of copies or extracts from the register.

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Domestic

Rights of Entry (Gas and Electricity Boards) Act 1954

An Act to regulate the exercise of statutory rights of entry by or on behalf of Gas Boards and Electricity Boards

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Domestic

Supply Powers Act 1975

An Act to consolidate the outstanding provisions of the Ministry of Supply Act 1939 and enactments and instruments amending those provisions and provide the Secretary of State with powers to acquire produce or process articles for public service

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Domestic

Utilities Act 2000

An Act to provide for the establishment and functions of the Gas and Electricity Markets Authority and the Gas and Electricity Consumer Council; to amend the legislation regulating the gas and electricity industries; and for connected purposes

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Domestic

Please tell us what you think should happen to these regulations and why, being specific where possible:

5 responses to Energy: Gas and Electricity Supply

  • Gavin King-Smith said on December 12, 2011 at 3:38 pm

    I have previously submitted the comments on environmental regulation below in response to the Environment red tape challenge since the issues facing micro hydro generator regulation seem to be divided between DEFRA and DECC and the legislation they oversee. I have added to these a final paragraph with comments concerning OFGEM accreditation under the present ROOFIT process.
    I administer the Micro Hydro Association [Text Deleted] whose members currently number 78 existing and potential generators and supporters of micro hydro-electric schemes and 54 individuals and organisations who offer services and products in the field. I have been representing this community in the consultations by the EA and SEPA on their guidelines for hydropower schemes.
    The environmental legislation involved includes the EU Water Directive but there is other related legislation and subsidiary regulation, together with links to planning regulation and heritage preservation. The complete set of regulations governing the development of micro hydro-electric schemes (currently defined as sub 50kW capacity) is burdensome and involves overlap and duplication of effort. It can currently take years before even a tiny off-grid scheme is permitted. Micro hydro schemes offer rural landowners and communities who have access to suitable water resources the best renewable energy technology available in terms of performance and resilience. The Feed-in Tariff has offered a viable incentive for people to make the investment involved but uptake has been very limited as a result of the over-precautionary approach applied by the agencies, apparently mainly based on concerns which apply to much larger schemes.
    What is needed is a single and simple regulatory process which will permit the majority of micro hydro-electric schemes given satisfactory registration of scheme designs and evidence of consultation with, and agreement from, any affected landowners. Registration would need to be supported by selective monitoring of implementation (as would full mitigated licensing).
    Registration would need to be replaced, following appropriate surveys, by specific abstraction and impoundment licences with defined mitigation measures, only where the extent of a depleted reach or the addition of an impoundment could have a significant impact in the total river basin in terms of flood risk, water scarcity, biodiversity, protected species, or critical business and recreational fishing interests. Significance would be determined principally on spatial/volumetric parameters within overall river basin plans.
    In addition to the environmental regulation, the Feed-in-Tariff Instrument contains procedures for accrediting hydro-electric schemes so that they can be eligible for the feed-in tariff. The procedures currently operated by Ofgem for the ROOFIT accreditation, and the associated computer system are unwieldy for micro hydro schemes and do not properly allow for metering off-grid schemes with alternative backup generation facilities.
    Gavin King-Smith 12 December 2011
    Administrator Micro Hydro Association

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