Many of the rules governing the gas and electricity markets are set out in codes and other industry documents, designated by the Gas and Electricity Markets Authority (GEMA), as part of the licensing framework.
Processes for changing these codes and agreements are set out in the individual documents, and GEMA generally decides whether to approve or reject any proposed changes.
The
Energy Act 2004 provided a right of appeal against GEMA decisions on changes to the codes. Eight industry codes and documents have now been designated as subject to this right of appeal.
This appeals process means GEMA is more accountable for decisions about proposed new rules or changes, and there is less regulatory uncertainty or delay. Before this, the only way to challenge GEMA decisions was by judicial review – a lengthy and expensive process.
Appeals can be lodged by anyone materially affected by a particular rule or document change, or by a body or association representing them. Decisions about changes that protect security of supply, or where GEMA has accepted industry recommendation or consensus, are protected. In other words, appeals cannot be lodged against them.