Key Facts

• Core fuels account for more than 95% of energy used for transport.
• Over 1.5 million households use heating oil or liquefied petroleum gas for heating.
• Recent events like COVID-19 and tanker driver shortages have highlighted risks to fuel supplies.
• Clause 223 clarifies the scope of powers applicable to critical operators in the core fuel supply chain.
• Amendment 116 is proposed to clause 224.
• The amendment aims to ensure compliance with the Trade Union and Labour Relations (Consolidation) Act 1992.
• Concerns are raised about overly broad responsibilities imposed on core fuel sector participants.
• Clause 224 allows the Secretary of State to direct companies to undertake activities necessary for core fuel sector resilience.
• The amendment seeks to prevent companies from taking actions that might infringe upon their employees’ trade union rights under the Trade Union and Labour Relations (Consolidation) Act 1992.
• 'Anything' in clause 224 could be interpreted as allowing directions that potentially violate established legal protections for employees.
• Clause 224 grants powers to maintain or improve core fuel resilience.
• Directions can be issued if insufficient progress has been made by the sector to address issues.
• The clause applies to companies with capacity over 500,000 tonnes and facility owners with capacity over 20,000 tonnes.
• Clause 227 grants powers to make regulations to reduce risks or impacts of fuel-supply disruptions.
• Consultations with industry and trade unions are sought to address concerns over onerous requirements.
• Failure to comply could lead to criminal charges against companies.
• Clause 228 introduces a power for the Secretary of State to require information from operators with throughput in excess of 1,000 tonnes.
• Clause 229 imposes duties on core fuel sector players with throughput over 500,000 tonnes to report incidents that disrupt or risk disrupting continuity of supply.
• Clauses allow the Secretary of State to seek further information from those who have reported an incident and to issue notices for the purpose of monitoring resilience.
• Clause 235 creates an offence of knowingly making a materially misleading or false statement.
• Clauses 236 to 238 set out the scope of offences that can be made under regulation powers.
• Corporate officers can be prosecuted if they consented or neglected compliance.
• Clause 240 sets the Government's duty to publish guidance on criminal and civil sanctions associated with offences listed in the Bill.
• The clause includes consultation requirements for publishing guidance.
• Clause 241 mandates a 40-day period after laying draft guidance before both Houses of Parliament before it can be issued.
• Amendment 22 ensures consistency with clauses 103 and 134.
• Clause 242 sets out financial assistance powers strictly for resilience and continuity of fuel supply.
• Treasury consent is required for any expenditure under clause 242.