Part 1: Key definitions Section 6: Utilities contracts
Subsection (1) sets out the definition of a "utilities contract", being a contract for the supply of goods, services or works wholly or mainly for the purpose of a "utility activity".
	Subsection (2) defines a "utility activity" by reference to a number of things. Firstly, whether the activity is included in Parts 1 or 2 of Schedule 4 (utility activities); if it is included in Part 1, it is a utility activity (e.g. the provision of a public electricity transmission network) and if it is included in Part 2 it is not (e.g. electricity generation and wholesale or retail sale of gas). It also provides that utility activities carried out wholly outside of the UK (e.g. not involving the use of a network or geographical area within the UK) are not utility activities and that for private utilities, utility activities are only those for which the utility has been granted a special or exclusive right (i.e. procurements for which a private utility has not been granted such a right would not be covered by the Act).
	Subsection (3) defines a "special or exclusive right" as a right to carry out utility activities granted by any statutory, regulatory or administrative provision where that right also substantially prevents other persons from carrying out those activities. A current example would be the private utilities that supply water and sewerage services to the public through fixed infrastructure in separate defined geographical areas or the private utilities that operate rail passenger transport services under contracts which have been directly awarded in accordance with the public service obligations regulations (as defined at paragraph 21(2) of Schedule 2).
	Subsection (4) provides that a right is not a "special or exclusive right" if it has been granted following a competitive tendering procedure under the Act or where the opportunity was adequately publicised, and the grant of the right was based on non-discriminatory criteria. This would include competitive processes in place before this Act came into force (such as a competitive process set out in Regulation 5(6)(a) of the Utilities Contracts Regulations 2016) or other compliant procedures. But it would not, for example, include a direct award of a contract to an incumbent under the public service obligations regulations (as defined at paragraph 21(2) of Schedule 2), including where the original contract had been awarded following a competitive process.
	Subsections (5) and (6) work together and provide that an appropriate authority may amend Part 2 of Schedule 4, which sets out activities that are not utility activities, to specify or remove activities. An appropriate authority may only specify an activity in Part 2 where it is satisfied that the test at subsection (6) has been met - i.e., that the market for the activity specified is subject to fair and effective competition and entry to that market is unrestricted.
	Subsection (7) makes clear that a reference to a framework agreement where that framework is for the future award of utility contracts is a reference to a utility contract.