Energy (Miscellaneous Provisions) Act 2012

Voluntary agreements by energy suppliers.

12.— (1) One or more energy suppliers may establish a voluntary agreement for the purpose of promoting energy efficiency to final customers in lieu of complying with the requirements by the Minister under section 11 (2).

(2) A voluntary agreement shall clearly state—

(a) the energy saving objectives of the agreement, quantified and with appropriate indications of timescale for achievement,

(b) the energy efficiency improvement measures the party or parties to the agreement will implement to achieve the objectives of the agreement,

(c) its monitoring, measuring and reporting procedures,

(d) its provisions for implementing alternative or additional measures, or both, if the objectives of the agreement are not achieved or are not likely to be achieved, and

(e) in respect of a voluntary agreement involving more than one energy supplier, the name of the energy supplier or other person who shall act as the principal point of contact with the Minister on behalf of all parties to the agreement.

(3) A voluntary agreement shall be submitted by the energy supplier concerned to the Minister for approval. Prior to such submission, the energy supplier shall, subject to any confidentiality provisions contained in the agreement, publish notice of its intentions and invite comment from any stakeholder. The Minister may give guidelines regarding such publication.

(4) The Minister may approve a voluntary agreement if he or she is satisfied that subsections (2) and (3) have been complied with and that the agreement is likely to have an effect equivalent to placing one or more of the requirements of section 11 (2) on the energy supplier concerned.

(5) The Minister may revoke his or her approval of a voluntary agreement where, in his or her opinion—

(a) the agreement is not having, or is not likely to have, an effect equivalent to placing one or more of the requirements of section 11 (2) on the energy supplier concerned,

(b) the energy supplier concerned is not complying with or is not likely to comply with the stated terms of the voluntary agreement,

(c) the energy supplier concerned has failed to comply with subsection (7) or to cooperate with the Minister in accordance with subsection (8), or

(d) the agreement has ceased to operate effectively or no longer exists.

(6) Before issuing a revocation under subsection (5), the Minister shall inform every energy supplier concerned of his or her opinion and invite a submission.

(7) Each energy supplier concerned shall submit a report to the Minister as soon as may be each year after the approval of a voluntary agreement under subsection (4), or as frequently as may be specified by the Minister, detailing such matters as may be specified by the Minister in his or her approval.

(8) The Minister shall monitor an approved voluntary agreement and all parties to a voluntary agreement shall cooperate with the Minister in this regard and provide any information reasonably requested by the Minister.