Section 3A: The principal objective and general duties of the Secretary of State and the Authority., Electricity Act 1989

The principal objective of the Secretary of State and the Gas and Electricity Markets Authority (in this Act referred to as "the Authority") in carrying out their respective functions under this Part is to protect the interests of existing and future consumers in relation to electricity conveyed by distribution systems or transmission systems ....

Those interests of existing and future consumers are their interests taken as a whole, including—

their interests in the Secretary of State's compliance with the duties in sections 1 and 4(1)(b) of the Climate Change Act 2008 (net zero target for 2050 and five-year carbon budgets); ...

their interests in the security of the supply of electricity to them ; and

their interests in the fulfilment by the Authority, when carrying out its designated regulatory functions, of the designated regulatory objectives.

The Secretary of State and the Authority shall carry out their respective functions under this Part in the manner which the Secretary of State or the Authority (as the case may be) considers is best calculated to further the principal objective, wherever appropriate by promoting effective competition between persons engaged in, or in commercial activities connected with, the generation, transmission, distribution or supply of electricity or the provision or use of electricity interconnectors.

Before deciding to carry out functions under this Part in a particular manner with a view to promoting competition as mentioned in subsection (1B), the Secretary of State or the Authority shall consider—

to what extent the interests referred to in subsection (1) of consumers would be protected by that manner of carrying out those functions; and

whether there is any other manner (whether or not it would promote competition as mentioned in subsection (1B)) in which the Secretary of State or the Authority (as the case may be) could carry out those functions which would better protect those interests.

In performing the duties under subsections (1B) and (1C), the Secretary of State or the Authority shall have regard to —

the need to secure that all reasonable demands for electricity are met; and

the need to secure that licence holders are able to finance the activities which are the subject of obligations imposed by or under this Part , the Utilities Act 2000 , Part 2 or 3 of the Energy Act 2004 , Part 2 or 5 of the Energy Act 2008 or section 4, Part 2, , sections 26 to 29 of the Energy Act 2010 , Part 2 of the Energy Act 2013 , the Nuclear Energy (Financing) Act 2022 or Chapter 1 of Part 2, Chapters 2 and 3 of Part 4 and sections 245 to 247 of the Energy Act 2023 ; and

the need to contribute to the achievement of sustainable development.

In performing the duties under subsections (1B), (1C) and (2), the Secretary of State or the Authority shall have regard to the interests of—

individuals who are disabled or chronically sick;

individuals of pensionable age;

individuals with low incomes; and

individuals residing in rural areas;

but that is not to be taken as implying that regard may not be had to the interests of other descriptions of consumer.

The Secretary of State and the Authority may, in carrying out any function under this Part, have regard to—

the interests of consumers in relation to gas conveyed through pipes (within the meaning of the Gas Act 1986); and

any interests of consumers in relation to—

communications services and electronic communications apparatus, or

water services or sewerage services (within the meaning of the Water Industry Act 1991),

which are affected by the carrying out of that function.

Subject to subsections (1B) and (2), and to section 132(2) of the Energy Act 2013 (duty to carry out functions in manner best calculated to further delivery of policy outcomes) the Secretary of State and the Authority shall carry out their respective functions under this Part in the manner which he or it considers is best calculated—

to promote efficiency and economy on the part of persons authorised by licences or exemptions to distribute, supply or participate in the transmission of electricity , to co-ordinate and direct the flow of electricity onto or over transmission systems by means of which the transmission of electricity takes place, to participate in the operation of electricity interconnectors or to provide a smart meter communication service and the efficient use of electricity conveyed by distribution systems or transmission systems;

to protect the public from dangers arising from the generation, transmission, distribution or supply of electricity or the provision of a smart meter communication service;

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to secure a diverse and viable long-term energy supply,

and ... shall, in carrying out those functions, have regard to the effect on the environment of activities connected with the generation, transmission, distribution or supply of electricity or the provision of a smart meter communication service.

In carrying out their respective functions under this Part in accordance with the preceding provisions of this section the Secretary of State and the Authority must each have regard to—

the principles under which regulatory activities should be transparent, accountable, proportionate, consistent and targeted only at cases in which action is needed; and

any other principles appearing to him or, as the case may be, it to represent the best regulatory practice.

In subsection (1A)—

"the designated regulatory objectives" means the objectives set out in Article 36(c) to (h) of the Electricity Directive but read with the following modifications— in Article 36(c), for the words from "between" to the end substitute " , including enabling the development of appropriate cross-border transmission capacities to meet demand; "in Article 36(d), omit ", in line with general energy policy objectives,in Article 36(f), omit "and foster market integration", andin Article 36(g), for "their national market" substitute ;" the energy market in Great Britain "
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In subsections (1C), (3) and (4) references to consumers include both existing and future consumers.

In this section and sections 3B and 3C, references to functions of the Secretary of State or the Authority under this Part include a reference to functions under the Utilities Act 2000 which relate to electricity conveyed by distribution systems or transmission systems.

In this Part, unless the context otherwise requires—

"exemption" means an exemption granted under section 5;
"licence" means a licence under section 6 and "licence holder" shall be construed accordingly.

Section 3A: The principal objective and general duties of the Secretary of State and the Authority.

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