Energy Act 2013
What this means for your business
- Applies to
- United Kingdom
- On this page
- 14 compliance obligations, 6 practical guides across 2 topics
What you must do
14 compliance obligations under this legislation — 6 can result in imprisonment.
Management duties 1
Follow government directions and ensure you can meet CFD liabilities
If your company is a CFD counter‑party, you must obey any instructions the Secretary of State gives and any rules set out in regulations. You also need to have the systems, processes and financial resources in place to meet all your obligations under any Contracts for Difference you have signed.
Other requirements 1
Offer a CFD on standard terms to the notified generator
If your business receives a CFD notification under section 12, you must send the eligible generator an offer to enter into a Contract‑for‑Difference using the published standard terms (or the modified terms if you have a modification agreement). The offer has to be made within whatever time‑frame the regulations prescribe. Failure to do so could breach the Energy Act.
Payments and fees 2
Pay CFD counterparty and provide required financial collateral
If you are an electricity supplier, you must make the payments that the regulations require you to send to the Contracts‑for‑Difference (CFD) counter‑party. You may also have to provide financial collateral (cash, securities, etc.) and follow any notices they issue about amounts owed. Failure to pay on time can be pursued as a civil debt.
Pay costs if the ONR requires payment for an inquiry
If the Office of Nuclear Regulation (ONR) decides you must contribute to the cost of an ONR inquiry, you must pay the amount they set. This applies only when you are asked to make a payment in connection with such an inquiry.
Offences and prohibitions 10
Cause another person to commit an offence
If you cause another person to breach a regulatory requirement – because of something you did or failed to do – you can be charged with the same offence as them, even if they are the primary offender.
Charge employees for statutory requirements
Unlimited fineIf you make an employee pay for anything that the law requires you to provide free – for example training, equipment or services covered by the Energy Act – you are committing an offence. On summary conviction you can be fined (unlimited in England & Wales, up to £20,000 in Scotland and Northern Ireland) and on indictment you face an unlimited fine. No prison term is attached.
Fail to comply with improvement or prohibition notice
2 years imprisonmentIf an ONR inspector serves your business with an improvement notice or a prohibition notice and you do not follow the actions required, you commit a criminal offence. On conviction you can be sentenced to up to 2 years' imprisonment and face an unlimited fine (or a capped fine if tried in the magistrates' court). The offence applies to any person who receives such a notice, so businesses must act promptly to avoid prosecution.
Fail to cooperate with statutory requirement holders
2 years imprisonmentIf an employee does not help a person who has a legal duty (for example under the Energy Act or any other relevant statute) so that the duty can be complied with, the employee commits an offence. On conviction the employee can be sentenced to up to two years’ imprisonment and/or an unlimited fine. The offence can be tried either in a magistrates’ court or a Crown Court.
Interfere with or misuse statutory health and safety provisions
2 years imprisonmentIf you intentionally or recklessly tamper with or misuse anything that has been provided under health, safety or welfare statutory requirements, you commit a criminal offence. On conviction in the Crown Court you could face an unlimited fine and up to two years’ imprisonment; on summary conviction you face up to 12 months (6 months in Northern Ireland) in prison and a fine (up to £20,000 in Scotland or Northern Ireland).
Obstruct entry under an Energy Act warrant
Fine up to £1,000If you deliberately block or interfere with an authorised entry onto land that has been granted by a warrant under the Energy Act 2013, you commit a criminal offence. The offence applies to any person – including business owners – who intentionally prevents the entry. On conviction in the magistrates’ court you face a fine of up to £1,000.
Obstruct HMRC officer when seizing imported goods
51 weeks imprisonmentIf you deliberately block or interfere with an HMRC officer who is seizing an imported article or substance to help the Office of Nuclear Regulation (ONR) or another inspector, you commit a criminal offence. On summary conviction you can be sentenced to up to 51 weeks in prison and face an unlimited fine (or a level‑5 standard‑scale fine in Scotland and Northern Ireland), or both.
Provide false information or falsify documents to meet statutory requirements
2 years imprisonmentIf you knowingly or recklessly give a false statement, make a false entry, or use a falsified document when you are supposed to supply information or obtain a document under the Energy Act (or any other related statutory requirement), you commit a criminal offence. On conviction you can be sentenced to up to two years in prison and face an unlimited fine (or up to £20,000 in Scotland/Northern Ireland on summary conviction). The offence can be tried either in a magistrates’ court or in the Crown Court.
Refuse or fail to comply with ONR information notice
Unlimited fineIf the Office for Nuclear Regulation (ONR) serves you with a notice demanding information and you either refuse or do not supply the information as required, you commit a criminal offence. On conviction you face an unlimited fine, which can be imposed either in the Magistrates' Court (summary) or in the Crown Court (indictment). No imprisonment is provided for this offence.
Unauthorised disclosure or use of protected information
2 years imprisonmentIf you receive information that the Office for Nuclear Regulation (ONR) classifies as ‘protected’ – for example trade secrets or data obtained by inspectors – you must not share it or use it for any other purpose unless you have the appropriate consent or it falls within the permitted disclosures listed in the schedule. Breaching this rule is a criminal offence and can lead to up to two years’ imprisonment and an unlimited fine.
Penalties for non-compliance
10 penalties under this legislation. 6 can result in imprisonment. 8 carry an unlimited fine.
Fail to comply with improvement or prohibition notice
Unlimited fine and/or 2 years imprisonment
Fail to cooperate with statutory requirement holders
Unlimited fine and/or 2 years imprisonment
Interfere with or misuse statutory health and safety provisions
Unlimited fine and/or 2 years imprisonment
Obstruct HMRC officer when seizing imported goods
Unlimited fine and/or 51 weeks imprisonment
Provide false information or falsify documents to meet statutory requirements
Unlimited fine and/or 2 years imprisonment
Unauthorised disclosure or use of protected information
Unlimited fine and/or 2 years imprisonment
Charge employees for statutory requirements
Unlimited fine
Refuse or fail to comply with ONR information notice
Unlimited fine
Obstruct entry under an Energy Act warrant
Fine up to £1,000
Cause another person to commit an offence
Penalty applies
Practical guidance
Our guides explain how to comply with the requirements above.
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Sections and provisions
173 classified provisions from this legislation.
Duties 14
- s.2 Matters to be taken into account
- s.3 Further duties of the Secretary of State year in relation
- s.5 General considerations relating to this Part
- s.8 Duties of a CFD counterparty CFD
- s.9 Supplier obligation
- s.12 CFD notifications A CFD notification
- s.14 CFD notification: offer to contract on standard terms
- s.60 Monitoring and enforcement appropriate national authority
- s.66 Review of certain provisions of Part 2 Chapter subject
- s.78 Principal function
- s.86 Inquiries: payments and charges assessor appointed
- s.87 Provision of information
- s.96 Co-operation between ONR and Health and Safety Executive
- s.108 Reporting requirements of Secretary of State
Offences and penalties 13
- Schedule 8 Inspectors
- Schedule 10 Provisions relating to offences
- s.75 Nuclear regulations: offences
- s.85 Inquiries
- s.97 Power to obtain information
- s.99 HMRC power to seize articles etc to facilitate ONR and inspectors
- s.102 General duty of employees at work in relation to requirements imposed on others
- s.103 Duty not to interfere with or misuse certain things provided under statutory requirements
- s.104 Duty not to charge employees for certain things
- s.105 Offences relating to false information and deception
- s.106 Provision relating to offences under certain relevant statutory provisions
- s.122 Warrants for the purposes of section 121
- Schedule 9 Disclosure of information
Powers 71
- s.1 Decarbonisation target range
- Schedule 2 Investment contracts
- s.4 Meaning and calculation of “carbon intensity of electricity generation in the United Kingdom”
- s.6 Regulations to encourage low carbon electricity generation
- s.7 Designation of a CFD counterparty
- s.10 Direction to offer to contract
- s.11 Standard terms
- s.16 Sections 12 to 15: further provision
- s.17 Payments to electricity suppliers
- s.18 Application of sums held by a CFD counterparty
- s.20 Functions of the Authority
- s.21 Regulations: further provision
- s.22 Enforcement
- s.23 Limits on costs to be incurred
- s.24 Consultation
- s.26 Licence modifications
- s.27 Power to make electricity capacity regulations
- s.28 Capacity agreements
- s.29 Capacity auctions
- s.30 Settlement body
- ... and 51 more powers
Definitions 22
- Schedule 5 Emissions limit duty: monitoring and enforcement enforcement regulations
- Schedule 6 Nuclear regulations
- s.57 Duty not to exceed annual carbon dioxide emissions limit fossil fuel plant
- s.61 Interpretation of Chapter 8 carbon capture and storage technology CCS plant emissions limit duty
- s.62 Regulations under Chapter 8
- s.67 The ONR's purposes the ONR's purposes
- s.68 Nuclear safety purposes nuclear safety purposes GB nuclear site relevant nuclear installation
- s.69 Nuclear site health and safety purposes nuclear site health and safety purposes dangerous substances
- s.70 Nuclear security purposes nuclear security purposes civil nuclear construction site civil nuclear premises
- s.72 Nuclear safeguards purposes nuclear safeguards purposes
- s.77 The Office for Nuclear Regulation
- s.79 Codes of practice
- s.82 Enforcement of relevant statutory provisions relevant statutory provisions
- s.107 Civil liability: saving for section 12 of the Nuclear Installations Act 1965
- s.109 Notices etc relevant provision
- s.119 Meaning of “government pipe-line and storage system” the government pipe-line and storage system the 1958 Act oil installations
- s.127 Rights apart from Part 4
- s.131 Designation of statement the 1986 Act Independent System Operator and Planner the strategy and policy statement
- s.132 Duties in relation to statement principal objective duty
- s.150 Smoke and carbon monoxide alarms Required alarm regulations relevant landlord
- ... and 2 more definitions
Exemptions 20
- Schedule 1 CFD counterparties: transfer schemes
- Schedule 4 Application and modification of emissions limit duty
- s.13 Allocation of CFDs
- Schedule 13 Transfer schemes under section 129
- s.19 Information and advice
- s.33 Electricity capacity regulations: information and advice
- s.40 Regulations under Chapter 3
- s.42 Capacity market rules: further provision
- s.58 Introduction of carbon capture and storage: exemption from emissions limit
- s.59 Suspension etc of emissions limit in exceptional circumstances
- s.76A Nuclear safeguards regulations
- s.92 Directions from Secretary of State
- s.94 Consent of Secretary of State for certain communications
- s.101 Fees
- s.113 Subordinate legislation under Part 3
- s.123 Registration of rights
- s.133 Exceptions from section 132 duties
- Schedule 3 Orders under section 46: transfer schemes
- Schedule 7 The Office for Nuclear Regulation
- Schedule 11 Transfers to the Office for Nuclear Regulation