The Code Manager Selection (Competitive) Regulations 2025 establish a framework for the Gas and Electricity Markets Authority to competitively select code managers for designated documents.
The regulations detail eligibility requirements, conflict-of-interest provisions, selection criteria, notice publication procedures, and provisions for cancellation or disqualification.
The selection process includes an open or restricted procedure, with the Authority publishing notices at each stage and considering any representations received.
Arguments For
Improved Efficiency and Transparency: Establishing a clear, competitive process for selecting code managers should lead to more efficient and transparent management of designated documents. This process ensures the selection is based on merit and objective criteria rather than favoritism.
Enhanced Accountability: The regulations increase accountability by requiring the Gas and Electricity Markets Authority (GEMA) to publish notices, reasons for decisions, and selection criteria, allowing for greater public oversight and scrutiny of the selection process.
Expertise-Based Selection: The emphasis on objective criteria and conflict-of-interest provisions aims to select the most suitable candidates based on expertise and experience, potentially leading to better management of designated documents. The implementation is achieved through a legally mandated process that defines the selection steps.
Legal and Historical Basis: This legislation is rooted in the Energy Act 2023, providing a clear legal framework for the selection process, which builds upon existing regulatory frameworks.
Arguments Against
Potential for Delays: The detailed selection process and publication requirements might introduce delays in appointing code managers, potentially hindering timely management of designated documents.
Administrative Burden: The regulations impose significant administrative burdens on the Gas and Electricity Markets Authority and applicants, requiring extensive documentation, publication, and consultation.
Unintended Consequences: The specific criteria and definitions within these regulations which are not clearly defined might lead to unintended consequences or difficulties in application and interpretation.
Limited Scope: The regulations apply to only the selection of code managers and don't address broader industry challenges in relation to the management of designated documents.
- Citation, commencement and extent (1) These Regulations may be cited as the Code Manager Selection (Competitive) Regulations 2025 and come into force on 7th July 2025. (2) These Regulations extend to England and Wales and Scotland.
These regulations are titled the Code Manager Selection (Competitive) Regulations 2025 and will come into effect on July 7th, 2025.
They apply to England, Wales, and Scotland.
- Interpretation In these Regulations— “application period” means the period specified in the competitive selection notice in accordance with regulation 6(2)(d); “Authority” means the Gas and Electricity Markets Authority; “competitive selection” means a procedure carried out in accordance with these Regulations in order for the Authority to determine the person who is to be selected to be the code manager in relation to a designated document³; “competitive selection notice” means a notice given in accordance with regulation 6; “eligible candidate” means a person who may apply to be selected to be the code manager in relation to a designated document in accordance with the determination made by the Authority in regulation 3; “mandatory criterion” has the meaning given by regulation 5(1)(c)(i); “open procedure” has the meaning given by regulation 3(a); “restricted procedure” has the meaning given by regulation 3(b); “selection criteria information” means the matters determined in accordance with regulation 5(1).
This section defines key terms used throughout the regulations. 'Application period' refers to the timeframe for applications. 'Authority' means the Gas and Electricity Markets Authority. 'Competitive selection' describes the process for choosing a code manager.
Other terms defined include eligible candidates, mandatory criteria, open and restricted procedures, and selection criteria information.
- Eligibility For each competitive selection the Authority must determine whether an application for selection may be submitted— (a) by any person (an “open procedure”), or (b) only by persons that the Authority determines may apply for selection (a “restricted procedure”).
The Authority decides if the selection process will be open to everyone ('open procedure') or limited to a specific group ('restricted procedure').
- Conflict of interest (1) Except as provided in paragraph (2), the Authority may not select a person to be the code manager in relation to a designated document unless the Authority is satisfied that the person has no financial or other interest that might prejudice the discharge by that person of the functions of code manager (a “potential conflict of interest”). (2) The Authority may select a person that has a potential conflict of interest if the Authority is satisfied that it is manageable. (3) For the purposes of this regulation a potential conflict of interest is “manageable” if— (a) measures can be taken by the person by which either— (i) its interests which give rise to the potential conflict are removed, or (ii) the risk of prejudice is avoided or mitigated to a level that the Authority considers acceptable, and (b) either— (i) those measures are taken by the person before selection, or (ii) the person (if selected) will be required to take those measures, and the Authority is satisfied that the person will in fact take those measures. (4) In determining whether a potential conflict of interest is manageable, the Authority may take into account— (a) the terms and conditions of the code manager licence⁴ that will address conflicts of interest, and (b) the ability of the person to comply with those conditions.
Generally, the Authority cannot select a person with a conflict of interest.
However, exceptions exist if the conflict is deemed 'manageable,' meaning mitigating measures are in place either before or after selection.
The Authority considers the code manager's license terms and their ability to comply when determining manageability.
- Selection criteria information (1) For each competitive selection, the Authority must determine— (a) the criteria against which an application will be assessed, (b) how an application will be assessed against those criteria, (c) for each criterion— (i) whether it must be met for the applicant to be selected as the code manager (a “mandatory criterion”), and (ii) if so, how it will be determined whether the criterion has been met, and (d) where there is more than one criterion, an indication of their relative importance by— (i) weighting each as representing a percentage of total importance, (ii) ranking them in order of importance, or (iii) describing it in another way. (2) Paragraph (1)(d) does not apply to any mandatory criterion.
Before each selection, the Authority defines the assessment criteria, how applications are assessed, which criteria are mandatory, and the relative importance of each (unless mandatory).
- Competitive selection notice (1) For each competitive selection, the Authority must publish a proposal for the selection of a code manager in the form of a notice inviting eligible candidates to apply for selection. (2) Subject to paragraph (3), the notice must set out— (a) the name of the designated document it relates to; (b) whether the competitive selection is to follow an open procedure or restricted procedure; (c) where the competitive selection is to follow a restricted procedure, the names of the eligible candidates; (d) the period during which an application must be received by the Authority; (e) the form in which an application must be submitted; (f) the selection criteria information; (g) the information required from an applicant; (h) such other information as the Authority may determine is appropriate in relation to the competitive selection; (i) where paragraph (3) applies, the form of the confidentiality agreement. (3) Where any of the information in paragraph (2) is confidential or commercially sensitive, that information may be excluded from the notice and the Authority may require an applicant to sign a confidentiality agreement in a form decided by the Authority before that information is issued to the applicant.
For every selection, the Authority publishes a notice inviting applications.
The notice includes details of the designated document, the procedure type (open or restricted), application deadlines, submission format, selection criteria, required information, and any confidentiality agreements.
- Proposed selection (1) Subject to paragraph (4), the Authority must evaluate each application in accordance with the selection criteria information to determine whether and, if so, which applicant it proposes to select to be the code manager (the “proposed selection”). (2) At any time during or after the application period, the Authority may seek further information from an applicant for the purposes of paragraph (1). (3) The Authority may only propose to select a person to be the code manager if that person— (a) is an eligible candidate, (b) is not prohibited from selection by regulation 4, (c) submitted an application that was received by the Authority, (d) meets all the mandatory criteria, and (e) has not withdrawn from the competitive selection. (4) The Authority need not evaluate an application from a person who does not meet the requirements of paragraph (3). (5) Before selecting the code manager, the Authority must— (a) publish a notice which sets out— (i) the name of the designated document the proposed selection relates to; (ii) the proposed selection and the reasons for it; (iii) the period within which representations may be made about the proposed selection, and (b) consider any representations made within the period specified in that notice. (6) If the Authority decides to proceed with the proposed selection, the Authority must, as soon as reasonably practicable thereafter, publish a notice of the selection.
The Authority evaluates applications based on the criteria and proposes a candidate.
They can request further information.
Only eligible, non-conflicted candidates who submitted complete applications and meet mandatory criteria can be selected.
The Authority publishes the proposed selection and its rationale, considers feedback, and then publishes the final selection.
- Cancellation (1) The Authority may cancel the competitive selection where— (a) it is satisfied that— (i) following the application period, there is no person whom the Authority may propose to select to be the code manager in accordance with regulation 7(3), or (ii) a change in circumstances makes it desirable to amend the selection criteria information, (b) it has determined to change the basis of selection in accordance with regulation 3(6) of the Code Manager Selection Regulations 2024⁵, or (c) the person whom the Authority has proposed to select to be the code manager withdraws or is disqualified from the competitive selection. (2) As soon as reasonably practicable after determining to cancel a competitive selection, the Authority must publish a notice, with reasons, to that effect.
The Authority can cancel the selection process if no suitable candidates apply, circumstances change requiring criteria revisions, or if the proposed candidate withdraws or is disqualified.
Cancellation notices with reasons are publicly released.
- Disqualification (1) The Authority may disqualify an applicant where it is satisfied that an applicant has— (a) submitted any information to the Authority which is false or misleading, (b) engaged in, attempted to engage in, allowed or encouraged any anti-competitive behaviour, or (c) done anything which would constitute the commission of an offence under section 1, 2 or 6 of the Bribery Act 2010⁶. (2) As soon as reasonably practicable after deciding to disqualify an applicant, the Authority must publish a notice, with reasons, to that effect.
The Authority can disqualify applicants for submitting false information, anti-competitive behavior, or actions constituting bribery offenses.
Disqualification notices with reasons are also made public.
- Notices Where these Regulations require the Authority to publish any notice, the Authority must publish it in such manner as the Authority considers appropriate for bringing it to the attention of those likely to be affected by the subject matter of such notice.
All notices required by these regulations must be published by the Authority in a way that adequately informs relevant parties.