Utilities contracts
The Utilities Contracts Regulations 2016 are repealed and new rules applicable to utilities procurement are set out in the new regime. The single framework for procurement set out in the legislation generally applies to the award of utilities contracts, with some limited differences, for example, in relation to "utilities dynamic markets" and the duration of "closed frameworks". The legislation applies to the award of contracts by utilities operating in the water, energy and transport sectors. Utilities can be: contracting authorities; public undertakings (persons that operate commercially but are subject to public authority oversight); or private utilities (persons that are not public authorities or public undertakings but that are authorised to carry out utility activities, due to being granted "special or exclusive rights" under any statutory, regulatory or administrative provision where that right also substantially prevents other utilities from carrying out those activities).
	The Government did not wish to regulate where utility activities are exposed to competition. The legislation therefore includes a power, where it is satisfied that this is the case, for an appropriate authority (defined in section 123(1) of the Act) to make regulations exempting a particular utility activity from regulation in the future. The legislation also includes a power to further reduce the regulatory burden for private utilities wherever possible and is consistent with the UK’s international procurement obligations.