Commentary on Sections Part 2: Electricity Market Reform Schedule 2, Part 2
207.Part 2 principally provides the Secretary of State with regulation-making powers in connection with investment contracts. These powers are very similar to those in Chapter 2 relating to contracts for difference. A general regulation-making power is provided by paragraph 6, with that power being further particularised in other paragraphs in Part 2 and in paragraph 14(3) and (4) and 16(2) (as well as paragraph 5(8) and in the definition of “electricity supplier” in paragraph 4). The requirements about who must be consulted before regulations are made are set out in paragraph 13. Regulations are to be made either under the affirmative resolution procedure if they are the first regulations which make provision falling within paragraph 10 or 11, or any other regulations which make provision falling within other paragraphs of Parts 1 to 3 of Schedule 2; see sub-paragraph (5)), or the negative resolution procedure for all other regulations (see sub-paragraph (6)). Paragraph 6(7) provides that regulations relating to investment contracts should not be treated as a hybrid instrument.