New UK Energy Act becomes law

The UK government’s eagerly awaited Energy Act came into force in May, including new powers for the Oil and Gas Authority (OGA) to better support the North Sea industry. The Energy Act creates a framework to formally establish the OGA as an independent regulator so that it can act with greater flexibility and independence.

Following the Wood Review, although the OGA was established as an Executive Agency of the Department of Energy and Climate Change (DECC) on 1 April 2015, under the Energy Act it has now gained status as an independent government company, giving it greater powers to drive collaboration and efficiency in the industry. The OGA is to gain new powers, such as access to external meetings, data acquisition and retention, for dispute resolution and sanctions. The Act also facilitates the transfer of the Secretary of State’s existing regulatory powers in respect of oil and gas to the OGA, with the exception of the Secretary of State’s environmental regulatory functions in relation to oil and gas.

In a government statement, Amber Rudd, Secretary of State for Energy and Climate change said: ‘By strengthening the Oil and Gas Authority and giving it powers to drive greater collaboration and efficiency in the industry, this Act shows that the broad shoulders of the UK are committed to helping our oil and gas industry attract investment, support jobs and remain competitive for the future.’

Andy Samuel, Chief Executive of the OGA welcomed the news that the Energy Bill has now gained Royal Assent. ‘This is an important step in establishing the OGA as and independent government company with the necessary powers, working closely with the industry and government to help maximise the economic recovery of the UK’s oil and gas resources.’ 

Source: OGA