Part 13: General Schedule 2: Exempted contracts Part 2: Subject Matter Exempted Contracts Utilities contracts (subject matter)
Paragraph 31 exempts utilities contracts made for the purpose of further sale or lease to third parties, provided the utility enjoys no special or exclusive right (as defined in section 6(3)) to sell or lease the subject-matter of such contracts and other entities are free to sell or lease them under the same conditions as the utility. This is because it is considered that in such scenarios the utility will be operating in a competitive market. This exemption is not available to utilities acting as centralised purchasing authorities.
	Paragraph 32 exempts utilities contracts where water is supplied to a utility that is carrying out a water related utility activity (i.e. described in Schedule 4, paragraph 3(1)(a) or (b)).
	Paragraph 33 exempts utilities contracts under which energy, or fuel for the production of energy, is supplied to a utility that is carrying out a utility activity relating to gas and heat, electricity and oil and gas extraction and exploration for, or extraction of, coal or other solid fuels. These utility activities are set out in paragraphs 1, 2, and 6 of Schedule 4. In the case of the supply of fuel, the exemption only applies to the supply of fuel for the production of energy, and not to the supply of fuel for other reasons in connection with the utility activity, for example, purchases of fuel for transport.
	Paragraph 34 ensures the exemptions at Part 2 of Schedule 4 apply to exempt contracts for those activities from the Act. Public undertakings and private utilities are exempt by the operation of Schedule 4, but this exemption is required to ensure public authorities are exempt from the Act entirely where the exemption in Part 2 of Schedule 4 applies.