Watchtower/Law library/Procurement Act 2023/6 Utilities contracts
As last captured

Procurement Act 2023 · PART 1 Counterparty exempted contracts

6 Utilities contracts

Sch. 2 para. 6 · in force: yes

Captured statutory text (L5)

6 Utilities contracts

(1)A utilities contract awarded for the supply of goods, services or works—
(a)by a utility to a person affiliated with the utility, or
(b)where the utility in question is a relevant joint venture, by the utility to a person affiliated with any member of the joint venture,
but only if the turnover test is met by the affiliated person in relation to goods, services or (as the case may be) works.
(2)A person is “affiliated” with another if the person is in the position of a group undertaking of the other person, within the meaning given in section 1161(5) of the Companies Act 2006, whether or not either of them is an undertaking within the meaning given in section 1161(1) of that Act.
(3)The “turnover test” is met in relation to goods, services or works if the affiliated person’s turnover deriving from the supply of goods, services or (as the case may be) works to the utility and other persons affiliated with the utility (their “affiliated turnover amount”) exceeds 80 per cent of their total turnover amount deriving from the supply of goods, services or works.
(4)An appropriate authority may by regulations make provision about how to calculate a person’s affiliated turnover amount and total turnover amount for the purposes of sub-paragraph (3).
(5)The regulations may, in particular, make provision—
(a)for those amounts to be calculated by reference to—
(i)an average amount for a period specified in the regulations;
(ii)another reasonable method so specified;
(b)to secure that, in calculating those amounts in relation to a person (“A”), turnover of a person who is an affiliated person in relation to A is to be treated as part of A’s turnover.
Full captured verbatim text
(1) A utilities contract awarded for the supply of goods, services or works—

(a) by a utility to a person affiliated with the utility, or

(b) where the utility in question is a relevant joint venture, by the utility to a person affiliated with any member of the joint venture,

but only if the turnover test is met by the affiliated person in relation to goods, services or (as the case may be) works.

(2) A person is “affiliated” with another if the person is in the position of a group undertaking of the other person, within the meaning given in section 1161(5) of the Companies Act 2006, whether or not either of them is an undertaking within the meaning given in section 1161(1) of that Act.

(3) The “turnover test” is met in relation to goods, services or works if the affiliated person’s turnover deriving from the supply of goods, services or (as the case may be) works to the utility and other persons affiliated with the utility (their “affiliated turnover amount”) exceeds 80 per cent of their total turnover amount deriving from the supply of goods, services or works.

(4) An appropriate authority may by regulations make provision about how to calculate a person’s affiliated turnover amount and total turnover amount for the purposes of sub-paragraph (3).

(5) The regulations may, in particular, make provision—

(a) for those amounts to be calculated by reference to—

(i) an average amount for a period specified in the regulations;

(ii) another reasonable method so specified;

(b) to secure that, in calculating those amounts in relation to a person (“A”), turnover of a person who is an affiliated person in relation to A is to be treated as part of A’s turnover.

What this provision means

Model summary, checked against the text on the left.

Relevance to Signicat: 1/3 · detailed summary (L4) Status: not needed for a short provision · Stored artifact; current recipe verification unavailable

Utilities contracts awarded to affiliated persons are exempted contracts if the affiliated person meets the turnover test.

Only the one-line summary above is stored for this provision; the text itself is the evidence.

Refers to

other law external_cite · s. 1161

Referred to by

schedule ref schedule_ref · s. 122

schedule ref schedule_ref · s. 124

schedule ref schedule_ref · s. 2

schedule ref schedule_ref · s. 3

Part summaries

0 of 0 parts have a verified summary.

L1 unavailable for current verification: the overall summary needs every part verified. Provisions and the verified summaries remain readable.

Verification findings (391)

synthesis coverage: missing/unverified L2 part-1

synthesis coverage: missing evaluation uk:ukpga/2023/54#section-1

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synthesis coverage: missing/unverified L2 part-2

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synthesis coverage: missing/unverified L2 schedule-11

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Instrument tier unavailable

Change history as published

Sch. 9 para. A1 and cross-headings omitted (24.2.2025) by virtue of The Procurement (Miscellaneous Amendments) (Wales) Regulations 2025 (S.I. 2025/181), regs. 1(2), 3(4)(a)

Sch. 9 para. B1 and cross-headings omitted (W.) (31.12.2025) by The Procurement Act 2023 (Specified International Agreements) (Amendment) (Wales) Regulations 2025 (S.I. 2025/1361), regs. 1(2), 3(2) (with reg. 4)

Sch. 9 para. C1 and cross-headings omitted (W.) (31.3.2026) by virtue of The Procurement Act 2023 (Specified International Agreements) (Amendment) (Wales) Regulations 2026 (W.S.I. 2026/97), regs. 1(2), 2(2) (with reg. 3)

Pending effects amendments not yet applied to this text

No captured pending effects.

Provenance

Every claim the system makes about this text is traceable to these identifiers.

Instrument
uk:ukpga/2023/54
Part
PART 1 Counterparty exempted contracts
Version
1f42cbe2e52b2d3b319dfe92…
Content hash
sha256 adae978673f4e65113c6b9e4…
Source
legislation.gov.uk/ukpga/2023/54