Energy codes and central systems: qualifying designation
The Secretary of State has designated certain documents and central systems as qualifying for the purposes of Schedule 12 of the Energy Act 2023.
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The Energy Act 2023 introduces a new governance framework for energy codes and gives new strategic functions for the Gas and Electricity Markets Authority (GEMA).
Schedule 12 provides for certain transitional powers of GEMA for the purpose of establishing the new governance framework. Those powers are exercisable in relation to codes and systems that are designated by the Secretary of State as ‘qualifying documents’ and ‘qualifying central systems’.
Those powers include powers to modify licence conditions, energy codes and contracts that relate to central systems, in connection with establishing the new governance framework and selecting and licensing code managers.
Following a formal letter of recommendation from GEMA, the Secretary of State has designated certain energy codes and systems as qualifying documents and central systems for the purposes outlined in Schedule 12 of the Act. This is set out in the Designation Notice and will allow Ofgem to use its transitional powers to implement energy code governance reform.