Clause 36 - Functions under the Enterprise Act 2002

Energy Bill [Lords] – in a Public Bill Committee am 11:45 am ar 25 Mai 2023.

Danfonwch hysbysiad imi am ddadleuon fel hyn

Question proposed, That the clause stand part of the Bill.

Photo of Rupa Huq Rupa Huq Llafur, Ealing Central and Acton

With this it will be convenient to discuss clauses 37 and 38 stand part.

Photo of Andrew Bowie Andrew Bowie Parliamentary Under Secretary of State (Department for Energy Security and Net Zero)

Ofgem has the power, concurrently with the Competition and Markets Authority, to carry out market studies and make market investigation references in relation to the gas and electricity markets in Great Britain under part 4 of the Enterprise Act 2002. Other sectoral regulators have the same powers in relation to the sectors for which they are responsible. Under the Enterprise Act, the CMA and Ofgem may undertake market studies in relation to the gas and electricity markets in Great Britain, and may make market investigation references to the chair of the CMA for the constitution of a CMA group to conduct an in-depth market investigation of competition in the market or markets concerned. The purpose of those investigations is to examine the markets and implement appropriate remedies where competition problems are identified.

Clause 36 confers the same powers on Ofgem in its capacity as the economic regulator for carbon dioxide transport and storage. That will enable Ofgem to undertake market studies and make market investigation references to examine potential distortions that may give rise to restrictions in competition in relation to carbon dioxide transport and storage. As provided for in clause 38, neither the CMA nor Ofgem shall exercise functions under part 4 of the Enterprise Act in relation to any matter if such functions have been exercised in relation to that matter by the other. Clause 37 additionally provides for the economic regulator to exercise certain functions under the Competition Act 1998 concurrently with the CMA. Enabling the exercise of those Competition Act functions allows the economic regulator to deal with anti-competitive agreements or abuses of a dominant position in the carbon dioxide transport and storage sector.

To ensure that the powers are used efficiently, clause 38 requires the economic regulator and the CMA to consult each other before exercising the functions. Clause 38 is also clear that the power may be used only by either the economic regulator or the CMA in relation to a particular matter. If there is a question as to whether the economic regulator has concurrent powers under clauses 36 or 37 in relation to a particular case, this clause provides for the Secretary of State to make that determination.

Photo of Alan Whitehead Alan Whitehead Shadow Minister (Department for Business, Energy and Industrial Strategy) (Energy and Climate Change), Shadow Minister (Climate Change and Net Zero)

Try as I might, I cannot find much at fault with this chapter of the Bill. On the contrary, I actually think it is rather well drafted. I am happy to sit down, having said nothing about these clauses whatsoever, and allow business to proceed.

Question put and agreed to.

Clause 36 accordingly ordered to stand part of the Bill.

Clauses 37 and 38 ordered to stand part of the Bill.