Insight on the Energy Act 2023 (Consequential Amendments) Regulations 2024.

1. Introduction

The Energy Act 2023 (Consequential Amendments) Regulations 2024 is a legislative framework designed to bring existing laws into alignment with the provisions introduced by the Energy Act 2023. The regulations are enacted under the powers conferred by the Energy Act 2023 and focus on establishing new roles and governance structures, such as the Independent System Operator and Planner (ISOP) and the Code Managers.

2. Key Provisions

2.1 Independent System Operator and Planner (ISOP)

The ISOP is a newly established body tasked with replacing the existing electricity system operator and assuming the role of a gas system planner. This entity is designated under Section 162 of the Energy Act 2023.

2.2 Code Manager Framework

A revised governance framework for gas and electricity codes is introduced, which includes the role of Code Managers. These managers will be selected and licensed by the Gas and Electricity Markets Authority (GEMA), replacing the current code administrators and industry panels.

3. Amendments to Primary Legislation

3.1 Gas Act 1986

Section 4AA: Amendments include references to new provisions under the Energy Act 2023. Section 7B: Application processes for Code Manager licences are excluded from existing provisions. Section 23B: Updates to the appeal process involving gas system planner licences.

3.2 Electricity Act 1989

Section 3A: Amended to include duties related to coordinating electricity flow on transmission systems. Section 6A: Exclusion of applications for Code Manager licences from this section.

4. Amendments to Other Legislation

4.1 Nature Conservation (Scotland) Act 2004

The definition of "statutory undertaker" now includes holders of certain gas licences.

4.2 Equality Act 2010

The ISOP is recognized as a public authority under this Act.

4.3 Network and Information Systems Regulations 2018

Amendments reflect the new licensing framework for electricity and gas.

5. Impact and Implementation

The introduction of ISOP and Code Managers aims to streamline operations and improve the efficiency of electricity and gas market regulation. The framework enhances competitiveness and ensures a more robust governance structure for energy codes. These amendments are crucial for the transition to the new systems set out in the Energy Act 2023, supporting the broader objectives of energy security and network resilience.

6. Conclusion

The Energy Act 2023 (Consequential Amendments) Regulations 2024 is a comprehensive legislative update that ensures the alignment of existing laws with the newly introduced ISOP and governance frameworks. The amendments facilitate a seamless transition to these new structures, emphasizing efficiency and modern governance in the UK energy sector.