# Energy Act 2013

**Full title:** Energy Act 2013
**Citation:** 2013 c. 32
**Official source:** [legislation.gov.uk/ukpga/2013/32](https://www.legislation.gov.uk/ukpga/2013/32)
**Status:** In force
**Docket reference:** Ch06 Section 6.5

## Purpose

The Energy Act 2013 reformed electricity markets (Contracts for Difference, Capacity Market) and, critically for the nuclear sector, established the **Office for Nuclear Regulation (ONR)** as an independent statutory body, removing nuclear regulation from HSE.

## Key Provisions Relevant to the Nuclear Fuel Cycle

### Part 3: Nuclear Regulation — Establishment of ONR (Sections 56-95)

- **Section 56:** Establishes the **Office for Nuclear Regulation** as a body corporate, independent of government.
- **Section 58-62:** ONR's purposes include:
  - Nuclear safety (licensing and enforcement under NIA 1965)
  - Nuclear site health and safety
  - Nuclear security (previously under OCNS — the Office for Civil Nuclear Security)
  - Nuclear safeguards (added by Nuclear Safeguards Act 2018)
  - Transport of radioactive materials

- **Section 63-67:** ONR has the power to grant, vary, and revoke nuclear site licences and to attach licence conditions. It assumed the functions previously exercised by HSE/NII.

- **Section 74-79:** ONR inspectors have powers of entry, investigation, and enforcement, including issuing improvement notices, prohibition notices, and prosecuting offences.

- **Section 80-82:** ONR must produce an annual plan and report, and is subject to directions from the Secretary of State on matters of national security.

### Independence and Accountability

- ONR operates at arm's length from government, with its own board and chief executive.
- Funded primarily by charges on licensees and duty holders.
- Reports to Parliament through the Secretary of State.

### Electricity Market Reform (Part 2)

- While not directly nuclear-specific, the Contracts for Difference (CfD) mechanism established under Part 2 is the basis for the Hinkley Point C financing model, relevant to new nuclear build economics.

## NFC Course Relevance

- ONR is the single nuclear regulator for safety, security, safeguards, and transport — understanding its statutory basis is essential.
- The Act consolidated multiple regulatory functions (previously split between HSE/NII, OCNS, DfT) into one body, creating the "integrated regulatory framework" for the nuclear fuel cycle.
- The CfD mechanism is directly relevant to NFC economics and the financing of new nuclear power stations.

## Cross-References

- [NIA_1965.md](NIA_1965.md) — ONR exercises licensing authority under NIA 1965
- [HSWA_1974.md](HSWA_1974.md) — ONR took over nuclear functions previously under HSE
- [NSA_2018.md](NSA_2018.md) — Added safeguards to ONR's purposes
- [EA_2004.md](EA_2004.md) — NDA sites regulated by ONR