Energy Bill (HC Bill 167)

(4) The second condition is that—

(a) by virtue of section 8(4)(b) or (c), the framework regulations specify a
document of a description which is required to be produced under the
2008 Regulations, and

(b) 5provision is made in the 2008 Regulations by virtue of section 10(3) to
require a document of that description to contain additional or updated
information.

(5) The third condition is that, by virtue of section 8(4)(b) or (c), the framework
regulations specify a document of a description other than one falling within
10subsection (3) or (4).

(6) The framework regulations may make provision as to the circumstances in
which a document of a description falling within subsection (3), (4) or (5) (as
the case may require) is required to be updated or further updated in
accordance with provision made by the Secretary of State in the regulations.

(7) 15In subsection (3) “the 2007 Regulations” and “the 2010 Regulations” have the
same meaning as in section 9.

(8) In subsection (4) “the 2008 Regulations” has the same meaning as in section 10.

(9) In this section references to a document being required to be updated or further
updated include references to a document being required to be replaced by a
20document of the same description.

Disclosure of green deal plan etc

12 Disclosure of green deal plan etc in connection with sale or letting out

(1) This section applies where—

(a) a green deal property, or a lease of such a property, is to be sold, or

(b) 25a green deal property is to be let out—

(i) under a tenancy or licence agreement, and

(ii) on the basis that the prospective tenant or licensee is to be liable
for paying the energy bills for the property.

(2) The seller or prospective landlord or licensor must—

(a) 30obtain the document mentioned in section 8(4) or, if that provision has
not yet been complied with, produce a document containing the same
information in connection with the green deal plan as that document
would have contained, and

(b) provide the document free of charge to any prospective buyer, tenant
35or licensee at the specified time.

(3) An obligation under subsection (2) may be discharged by an agent.

(4) For the purposes of subsection (2) a person becomes a prospective buyer,
tenant or licensee in relation to a property when the person—

(a) requests any information about the property from the seller,
40prospective landlord or licensor or an agent for the purpose of deciding
whether to buy or let the property,

(b) makes a request to view the property for the purpose mentioned in
paragraph (a), or

(c) makes an offer, whether oral or written, to buy or let the property.

(5) For the purposes of this section—

(a) an agent is a person acting on behalf of a seller or prospective landlord
or licensor in the sale or letting out of a property;

(b) a property is a green deal property if there is a green deal plan in
5respect of the property and payments are still to be made under that
plan;

(c) specified, in relation to a time, means specified in regulations made by
the Secretary of State.

(6) The Secretary of State may make regulations specifying cases or circumstances
10in which subsection (2) does not apply.

13 Disclosure of green deal plan in connection with other transactions etc

(1) This section applies where—

(a) there is to be a transaction or other arrangement in respect of a green
deal property (not falling within section 12(1)), and

(b) 15the transaction or arrangement is of a description specified in
regulations made by the Secretary of State.

(2) The regulations may require a person of a description specified in the
regulations to—

(a) obtain the document mentioned in section 8(4) or, if that provision has
20not yet been complied with, produce a document containing the same
information in connection with the green deal plan as that document
would have contained, and

(b) provide the document free of charge to a person of a description
specified in the regulations at the time so specified.

(3) 25The regulations may provide for an obligation imposed on a person by virtue
of subsection (2) to be discharged by a person acting on the person’s behalf.

(4) In this section the reference to a green deal property is to be read in accordance
with section 12(5)(b).

14 Acknowledgment of green deal plan on sale or letting out

(1) 30 This section applies where—

(a) a green deal property, or a lease of such a property, is to be sold, or

(b) a green deal property is to be let out—

(i) under a tenancy or licence agreement which is in writing, and

(ii) on the basis that the prospective tenant or licensee is to be liable
35for paying the energy bills for the property.

(2) The seller or prospective landlord or licensor must secure that the contract for
sale or tenancy or licence agreement includes an acknowledgment by the
buyer, tenant or licensee that the bill payer at the property is liable to make
payments under the green deal plan and that certain terms of that plan are
40binding on the bill payer.

(3) Subsections (4) and (5) apply where the green deal property is in England or
Wales.

(4) An acknowledgment required by subsection (2) must be in the form prescribed
in regulations made by the Secretary of State.

(5) The Secretary of State may make regulations specifying cases or circumstances
in which subsection (2) does not apply.

(6) Subsections (7) and (8) apply where the green deal property is in Scotland.

(7) The acknowledgment required by subsection (2) must be in the form
5prescribed in regulations made by the Scottish Ministers.

(8) The Scottish Ministers may make regulations specifying cases or circumstances
in which subsection (2) does not apply.

(9) In this section references to a green deal property are to be read in accordance
with section 12(5)(b).

15 10Acknowledgment of green deal plan in connection with other transactions etc

(1) This section applies where—

(a) there is to be a transaction or other arrangement in respect of a green
deal property (not falling within section 14(1)), and

(b) the transaction or arrangement is of a description specified in
15regulations made under this subsection by the Secretary of State.

(2) Regulations under subsection (1) may require a person of a description
specified in the regulations to secure, at a time and in a document so specified,
that an acknowledgment is made by a person of a description so specified
that—

(a) 20the bill payer at the property is liable to make payments under the
green deal plan, and

(b) certain terms of that plan are binding on the bill payer.

(3) Where the green deal property is in England or Wales, regulations made by the
Secretary of State under this subsection may provide for any acknowledgment
25required by virtue of subsection (2) to be in the form prescribed in the
regulations under this subsection.

(4) Where the green deal property is in Scotland, regulations made by the Scottish
Ministers under this subsection may provide for any acknowledgment
required by virtue of subsection (2) to be in the form prescribed in the
30regulations under this subsection.

(5) In this section references to a green deal property are to be read in accordance
with section 12(5)(b).

16 Sanctions for non-compliance with obligations under sections 12 to 15

(1) The Secretary of State may make regulations—

(a) 35for the purpose of securing compliance with the obligations set out in
section 12 or 14 or imposed by virtue of regulations under section 13 or
15;

(b) as to the consequences of non-compliance with the obligations.

(2) The regulations may, in particular, include provision—

(a) 40as to sanctions for non-compliance with the obligations (including the
imposition of a civil penalty);

(b) enabling the Secretary of State to require a green deal provider to
suspend or cancel the liability of a bill payer to make payments under
a green deal plan;

(c) enabling the Secretary of State to require a green deal provider to
5refund any such payments that have already been made;

(d) enabling the Secretary of State to require a seller, a prospective landlord
or licensor or another person to pay compensation to a green deal
provider in respect of any such suspension, cancellation or refund.

Modifying energy licences

17 10Power to modify energy licences in connection with green deal payments

(1) The Secretary of State may modify—

(a) a condition of a particular licence under section 7 or 7A of the Gas Act
1986 (gas transporter, shipper and supply licences);

(b) the standard conditions incorporated in licences under that provision
15by virtue of section 8 of that Act;

(c) a condition of a particular licence under section 6(1)(c) or (d) of the
Electricity Act 1989 (electricity distribution and supply licences);

(d) the standard conditions incorporated in licences under that provision
by virtue of section 8A of that Act;

(e) 20a document maintained in accordance with the conditions of licences
under section 7 or 7A of the Gas Act 1986 or section 6(1)(c) or (d) of the
Electricity Act 1989 or an agreement that gives effect to a document so
maintained.

(2) The power under subsection (1) may be exercised for the following purposes
25only—

(a) in so far as the power relates to a licence under section 7 of the Gas Act
1986 or section 6(1)(c) of the Electricity Act 1989, the purpose of
preventing the holder of the licence from permanently disconnecting
the supply of gas or electricity to a green deal property, and

(b) 30in so far as the power relates to any licence, the purpose of requiring or
enabling the holder of the licence to take, or not to take, specified action
in connection with green deal payments.

(3) The provision which may be made by virtue of subsection (2)(b) includes, in
particular—

(a) 35if the holder of the licence is of a specified description, provision
enabling the holder to opt into or opt out of any provision made by
virtue of paragraphs (b) to (f),

(b) provision requiring the holder of the licence to collect green deal
payments through energy bills and remit them to a green deal provider,

(c) 40provision as to the circumstances in which the holder of the licence is
required to make payments to a green deal provider by reference to
green deal payments which are due but which have not been made,

(d) provision in connection with the cancellation or suspension of green
deal payments,

(e) 45provision requiring or enabling the holder of the licence to make
specified arrangements for facilitating the collection of green deal
payments, and

(f) provision requiring or enabling payments to be made by or to the
holder of the licence in respect of functions discharged in connection
with green deal payments.

(4) Conditions included in a licence under section 7 or 7A of the Gas Act 1986 by
5virtue of the power under subsection (1) may do any of the things authorised
by section 7B(5)(a)(i) or (iii) of that Act (which applies to the power of the Gas
and Electricity Markets Authority with respect to licence conditions under
section 7B(4)(a)).

(5) Conditions included in a licence under section 6(1)(c) or (d) of the Electricity
10Act 1989 by virtue of the power under subsection (1) may do any of the things
authorised by section 7(3)(a) or (c) or (4) of that Act (which applies to the power
of the Gas and Electricity Markets Authority with respect to licence conditions
under section 7(1)(a)).

(6) For the purposes of this section—

(a) 15payments are green deal payments if they are made under a green deal
plan,

(b) a  property is a green deal property if there is a green deal plan in
respect of the property and payments are still to be made under that
plan, and

(c) 20references to a green deal provider include references to a person acting
on behalf of a green deal provider.

18 Power to modify energy supply licences to make provision as to default in
green deal payments

(1) The Secretary of State may modify—

(a) 25a condition of a particular licence under section 7A(1) of the Gas Act
1986 (gas supply licences);

(b) the standard conditions incorporated in licences under that provision
by virtue of section 8 of that Act;

(c) a condition of a particular licence under section 6(1)(d) of the Electricity
30Act 1989 (electricity supply licences);

(d) the standard conditions incorporated in licences under that provision
by virtue of section 8A of that Act;

(e) a document maintained in accordance with the conditions of licences
under section 7A(1) of the Gas Act 1986 or section 6(1)(d) of the
35Electricity Act 1989 or an agreement that gives effect to a document so
maintained.

(2) The power under subsection (1) may be exercised for the purpose only of
making provision—

(a) as to the steps which are to be taken by the holder of a licence following
40a bill payer’s default in making green deal payments to the holder of
the licence;

(b) as to the circumstances in which the holder of a licence may disconnect
the supply to a green deal property following such a default, or

(c) enabling, in specified circumstances, the holder of a licence to require
45from a bill payer a deposit by way of security for green deal payments
to be made by the bill payer.

(3) For the purposes of this section “green deal payments” and “green deal
property” are to be read in accordance with section 17(6).

19 Power to modify energy supply licences to require provision of information

(1) The Secretary of State may modify—

(a) a condition of a particular licence under section 7A(1) of the Gas Act
1986 (gas supply licences);

(b) 5the standard conditions incorporated in licences under that provision
by virtue of section 8 of that Act;

(c) a condition of a particular licence under section 6(1)(d) of the Electricity
Act 1989 (electricity supply licences);

(d) the standard conditions incorporated in licences under that provision
10by virtue of section 8A of that Act;

(e) a document maintained in accordance with the conditions of licences
under section 7A(1) of the Gas Act 1986 or section 6(1)(d) of the
Electricity Act 1989 or an agreement that gives effect to a document so
maintained.

(2) 15The power under subsection (1) may be exercised for the purpose only of
requiring, at specified times, the holder of the licence to provide bill payers
with specified information in connection with their green deal plans.

(3) The power may be exercised so as to require information to be provided in a
specified form.

20 20Power to modify energy supply licences to make provision as to consumer
protection

(1) The Secretary of State may modify—

(a) a condition of a particular licence under section 7A(1) of the Gas Act
1986 (gas supply licences);

(b) 25the standard conditions incorporated in licences under that provision
by virtue of section 8 of that Act;

(c) a condition of a particular licence under section 6(1)(d) of the Electricity
Act 1989 (electricity supply licences);

(d) the standard conditions incorporated in licences under that provision
30by virtue of section 8A of that Act;

(e) a document maintained in accordance with the conditions of licences
under section 7A(1) of the Gas Act 1986 or section 6(1)(d) of the
Electricity Act 1989 or an agreement that gives effect to a document so
maintained.

(2) 35The power under subsection (1) may be exercised for the purpose only of
making provision corresponding to that made by the disapplied consumer
protection legislation.

(3) Conditions included in a licence under section 6(1)(d) of the Electricity Act
1989 by virtue of the power under subsection (1) may do any of the things
40authorised by section 7(4) of that Act (which applies to the power of the Gas
and Electricity Markets Authority with respect to licence conditions under
section 7(1)(a)).

(4) For the purposes of subsection (2) provision corresponds to that made by the
disapplied consumer protection legislation if it is made for the same purpose
45as the purpose for which that provision was made.

(5) For the purposes of this section references to the disapplied consumer
protection legislation are to the provisions of the Consumer Credit Act 1974

which would have applied if the amendment made by section 26 had not been
made.

21 Powers under sections 17 to 20: consultation

(1) Before making a modification under any of sections 17 to 20, the Secretary of
5State must consult—

(a) the holder of any licence being modified,

(b) the Gas and Electricity Markets Authority, and

(c) such other persons as the Secretary of State considers appropriate.

(2) Subsection (1) may be satisfied by consultation before, as well as consultation
10after, the passing of this Act.

22 Powers under sections 17 to 20: supplementary

(1) Subsections (2) to (6) apply in relation to the powers under sections 17 to 20.

(2) The powers—

(a) may be exercised generally, only in relation to specified cases or subject
15to exceptions (including provision for a case to be excepted only so long
as specified conditions are satisfied);

(b) may be exercised differently in different cases or circumstances;

(c) include a power to make incidental, consequential or transitional
modifications.

(3) 20Provision included in a licence by virtue of any of the powers—

(a) need not relate to the activities authorised by the licence;

(b) may make different provision for different cases.

(4) The Secretary of State must publish details of modifications under any of the
powers as soon as reasonably practicable after the modifications are made.

(5) 25A modification under any of the powers of part of a standard condition of a
licence does not prevent any other part of the condition from continuing to be
regarded as a standard condition for the purposes of Part 1 of the Gas Act 1986
or Part 1 of the Electricity Act 1989.

(6) Where the Secretary of State makes modifications under any of the powers of
30the standard conditions of a licence of any type, the Gas and Electricity Markets
Authority must make the same modification of those standard conditions for
the purposes of their incorporation in licences of that type granted after that
time.

(7) In section 33(1) of the Utilities Act 2000 (standard conditions of electricity
35licences)—

(a) after paragraph (d) omit “or”;

(b) after paragraph (e) insert “or

(f) under Chapter 1 of Part 1 of the Energy Act 2011.”

(8) In section 81(2) of the Utilities Act 2000 (standard conditions of gas licences)—

(a) 40for “2008 or” substitute “2008,”;

(b) after “2010” insert “or under Chapter 1 of Part 1 of the Energy Act 2011”.

(9) Sections 4AA to 4B of the Gas Act 1986 (principal objective and general duties)
apply in relation to the powers under sections 17 to 20 with respect to holders

of licences under section 7 or 7A of that Act as they apply in relation to
functions of the Secretary of State under Part 1 of that Act.

(10) Sections 3A to 3D of the Electricity Act 1989 (principal objective and general
duties) apply in relation to the powers under sections 17 to 20 with respect to
5holders of licences under section 6(1)(c) or (d) of that Act as they apply in
relation to functions of the Secretary of State under Part 1 of that Act.

Gas and electricity codes

23 Recovering green deal payments: gas suppliers

(1) Schedule 2B to the Gas Act 1986 (the gas code) is amended as follows.

(2) 10In paragraph 6A(1) for paragraph (a) substitute—

“(a) the sum is owed to an authorised supplier—

(i) in respect of the supply of gas to the premises on
which the meter is installed,

(ii) in respect of the provision of the meter, or

(iii) 15under a green deal plan (within the meaning of
section 1 of the Energy Act 2011) in respect of the
premises; or”.

(3) In paragraph 7(1) for paragraphs (a) and (b) substitute—

“(a) a demand in writing is made by a gas supplier for any of the
20relevant payments to be made by a consumer; and

(b) the consumer does not make those payments within 28 days
after the making of the demand.”

(4) After paragraph 7(1) insert—

“(1A) A payment is a relevant payment for the purposes of sub-paragraph
25(1) if it is due to the gas supplier from the consumer—

(a) in respect of the supply of gas to any premises of the
consumer (in this paragraph referred to as “the premises”); or

(b) under a green deal plan (within the meaning of section 1 of
the Energy Act 2011) in respect of the premises.”

(5) 30In each of paragraphs 7(4)(b) and (5) for “charges” substitute “payments”.

24 Recovering green deal payments: electricity suppliers

(1) The Electricity Act 1989 is amended as follows.

(2) Paragraph 2 of Schedule 6 to the Electricity Act 1989 (the electricity code) is
amended as set out in subsections (3) to (5).

(3) 35In sub-paragraph (1) for the words from “paid” to “electricity meter” substitute
“made all the relevant payments”.

(4) After sub-paragraph (1) insert—

“(1A) A payment is a relevant payment for the purposes of sub-paragraph
(1) if it is due from the customer to an electricity supplier—

(a) 40in respect of the supply of electricity to any premises or the
provision of an electricity meter; or

(b) under a green deal plan (within the meaning of section 1 of
the Energy Act 2011) in respect of the premises.”

(5) In sub-paragraph (3) for “payment of the charges due” substitute “the relevant
payments to be made”.

(6) 5In paragraph 12(2) of Schedule 7 (recovery through pre-payment meters) for
paragraph (a) substitute—

“(a) the sum is owed to an authorised supplier—

(i) in respect of the supply of electricity to the premises
on which the meter is installed,

(ii) 10in respect of the provision of the meter, or

(iii) under a green deal plan (within the meaning of
section 1 of the Energy Act 2011) in respect of the
premises; or”.

Modifying consumer credit legislation

25 15Exemption from Consumer Credit Act 1974 in relation to credit to business
debtors

(1) Section 16B of the Consumer Credit Act 1974 (exemption relating to
businesses) is amended as follows.

(2) After subsection (1) insert—

“(1A) 20This Act does not regulate a consumer credit agreement if—

(a) the credit provided by the creditor to the debtor by the
agreement does not exceed £25,000,

(b) the agreement is entered into by the debtor wholly for the
purposes of a business carried on, or intended to be carried on,
25by the debtor, and

(c) the agreement is a green deal plan (within the meaning of
section 1 of the Energy Act 2011).”

(3) In subsection (2) after “If an agreement” insert “falling within subsection (1)”.

(4) After subsection (3) insert—

“(3A) 30Subsections (2) and (3) also apply in relation to an agreement falling
within subsection (1A) but with the omission of the words “or
predominantly”.

26 Energy suppliers not to be treated as carrying on ancillary credit business

In section 21 of the Consumer Credit Act 1974 (businesses needing an OFT
35licence) after subsection (3) insert—

“(4) A relevant energy supplier acting in that capacity does not need a
licence to carry on an ancillary credit business so far as it comprises or
relates to debt-adjusting, debt-counselling, debt-collecting or debt
administration in relation to debts due under a green deal plan
40associated with the supplier.

(5) A green deal plan is associated with a relevant energy supplier if the
payments under the plan are to be made to the supplier.

(6) In this section—

(a) “green deal plan” has the meaning given by section 1 of the
Energy Act 2011; and

(b) “relevant energy supplier” has the meaning given in regulations
5made for the purposes of section 2(9) of that Act.”

27 Duties to give debtors information and statements

(1) The Consumer Credit Act 1974 is amended as follows.

(2) In section 77 (duty to give information to debtor under fixed-sum credit
agreement) after subsection (2) insert—

“(2A) 10Subsection (2B) applies if the regulated agreement is a green deal plan
(within the meaning of section 1 of the Energy Act 2011).

(2B) The duty imposed on the creditor by subsection (1) may be discharged
by another person acting on the creditor’s behalf.”

(3) In section 77A (statements to be provided in relation to fixed-sum credit
15agreement) after subsection (2) insert—

“(2A) Subsection (2B) applies if the regulated agreement is a green deal plan
(within the meaning of section 1 of the Energy Act 2011).

(2B) Any duty imposed on the creditor by this section may be discharged by
another person acting on the creditor’s behalf.”

(4) 20In section 77B (statement of account to be provided on request in relation to
fixed-sum credit agreement) after subsection (7) insert—