Key Facts

• Clause 32 gives effect to schedule 3.
• Ofgem must publish a note stating its intentions before imposing a penalty or issuing a final order.
• There is a period of at least 21 days for objections and an appeal process within 42 days.
• Clause 34 clarifies that corporate entity officers can be held liable for offences committed with their consent or collusion.
• Clause 35 allows criminal proceedings to be brought anywhere in the UK for offences committed in offshore places within territorial waters adjacent to the United Kingdom.
• The territorial sea is defined as up to 12 nautical miles under the Gas Importation and Storage Zone (Designation of Area) Order 2009.
• Clause 36 confers on Ofgem the power to carry out market studies and make market investigation references under the Enterprise Act 2002 for carbon dioxide transport and storage.
• Neither Ofgem nor the CMA shall exercise functions in relation to a matter if such functions have been exercised by the other, as specified in clause 38.
• Clause 37 provides for concurrent powers with the Competition and Markets Authority under the Competition Act 1998.
• Clause 39 provides for the economic regulator to publish a forward work programme before each financial year.
• Clause 40 requires the economic regulator to publish a document setting out information related to the CCUS strategy and policy statement.
• Clause 41 mandates the economic regulator to make an annual transport and storage report, which must be laid before both Houses of Parliament by the Secretary of State.
• Clauses 42 to 49 of the Energy Bill are being discussed.
• The focus is on transport and storage administration orders.
• Clause 42 defines relevant terms necessary for the functioning of the legislation.
• Clause 43 establishes objectives for transport and storage administration, including efficiency, economy, safety, and security until a company can be rescued as a going concern.
• The special administration regime is intended to act as an interim solution and may involve transferring parts of the undertaking or restructuring.
• Under clause 45, section 159(3) of the Energy Act 2004 is amended to allow making rules for carbon dioxide transport and storage insolvency.
• Clause 42 provides orders to place a licence holder into administration.
• An order can be applied when a company is insolvent or has committed offences.
• Decisions regarding whether to salvage a company or transfer its assets are unclear in the Bill.
• Clause 50 allows the Secretary of State to make a statutory transfer scheme.
• Transfer schemes enable the Secretary of State to transfer property, rights or liabilities from one entity to another.
• Consultation is required with both the licence holder and the proposed transferee before making such a scheme.
• Clause 51 sets out consultation requirements for companies subject to asset transfers.
• Clause 50 states that the Secretary of State may not make a scheme without the consent of the licence holder.
• Paragraph 10(3) of schedule 4 states that compensation for third parties falls on the Secretary of State.
• The amendments in schedule 5 relate to existing legislation like the Utilities Act 2000, Enterprise Act 2002 and the Enterprise and Regulatory Reform Act 2013.
• Clause 55 sets out definitions for terms used in part 1 of the Bill including technical definitions related to geological storage of carbon dioxide.
• The Association for Decentralised Energy submitted concerns.
• UK Energy Storage highlighted issues related to the energy sector.
• The Chartered Institute of Housing provided insights on housing impacts.
• Neptune Energy was mentioned among the entities submitting information.
• Green Alliance, End Fuel Poverty Coalition, and others jointly submitted a submission focusing on fuel poverty, climate action, and sustainability.