Energy Act 2016—snapshot
Produced in partnership with Matthew Collinson of Energetics
Energy Act 2016—snapshot

The following Environment guidance note Produced in partnership with Matthew Collinson of Energetics provides comprehensive and up to date legal information covering:

  • Energy Act 2016—snapshot
  • Background to EnA 2016
  • Commencement of EnA 2016
  • Summary of EnA 2016
  • Table A Summary of EnA 2016

The Energy Act 2016 (EnA 2016) received Royal Assent on 12 May 2016 (see Table A below for details)

Background to EnA 2016

In June 2013, the former Secretary of State for Energy and Climate Change, Edward Davey, commissioned Sir Ian Wood to conduct an independent review of UK Continental Shelf (UKCS) oil and gas recovery, and in particular to consider how economic recovery could be maximised (Wood Review).

Key recommendations of the Wood Review are:

  1. government and industry should work together to develop a new strategy for maximising the economic recovery from the UKCS (MER UK Strategy)

  2. stewardship should be moved to an arm’s length body which is well resourced and funded by the industry

  3. additional powers should be secured for that body so that it can implement the MER UK Strategy, and

  4. it should work with industry to develop and implement new strategies on exploration and decommissioning cost reduction

The MER UK Strategy was implemented via sections 9A-9I of the Petroleum Act 1998 (PA 1998) (as amended by the Infrastructure Act 2015). Section 9A(2) requires the Oil and Gas Authority (OGA) to produce one or more strategies for enabling the principal objective to be met. The ‘principal objective’ is maximising the economic recovery of UK petroleum, in particular through:

  1. development, construction, deployment and use of equipment used in the petroleum