Energy Bill (HC Bill 206)

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(16) In this section—

(a) references to a gas licence are to a licence for the purposes of section 5

of the Gas Act 1986 (prohibition on unlicensed activities relating to gas),

and

(b) 5references to an electricity licence are to a licence for the purposes of

section 4 of the Electricity Act 1989 (prohibition on unlicensed activities

relating to electricity).

98 Licence conditions to secure funding of energy supply company

administration

(1) 10The modifications that may be made under section 97 include, in particular,

modifications imposing conditions requiring the holder of the licence—

(a) so to modify the charges imposed by the licence holder for anything

done by the licence holder in the carrying on of the licensed activities as

to raise such amounts as may be determined by or under the

15conditions; and

(b) to pay the amounts so raised to such persons as may be so determined

for the purpose of—

(i) their applying those amounts in making good any shortfall in

the property available for meeting the expenses of an energy

20supply company administration; or

(ii) enabling those persons to secure that those amounts are so

applied.

(2) Those modifications may include modifications imposing on the licence holder

an obligation to apply amounts paid to the licence holder in pursuance of

25conditions falling within subsection (1)(a) or (b) in making good any such

shortfall.

(3) For the purposes of this section—

(a) there is a shortfall in the property available for meeting the costs of an

energy supply company administration if, in a case where a company

30is or has been subject to an energy supply company administration

order, the property available (apart from conditions falling within

subsection (1) or (2)) for meeting relevant debts is insufficient for

meeting them; and

(b) amounts are applied in making good that shortfall if they are paid in or

35towards discharging so much of a relevant debt as cannot be met out of

the property otherwise available for meeting relevant debts.

(4) In this section “relevant debt” in relation to a case in which a company is or has

been subject to an energy supply company administration order, means an

obligation—

(a) 40to make payments in respect of the expenses or remuneration of any

person as the energy administrator of that company;

(b) to make a payment in discharge of a debt or liability of that company

arising out of a contract entered into at a time when the order was in

force by the person who at that time was the energy administrator of

45that company;

(c) to repay the whole or a part of a grant made to that company under

section 165 of the Energy Act 2004 as applied by section 95 of this Act;

(d) to repay a loan made to the company under that section as so applied,

or to pay interest on such a loan;

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(e) to make a payment under section 166(4) of that Act as so applied; or

(f) to make a payment under section 167(5) of that Act as so applied.

99 Modifications under the Enterprise Act 2002

(1) The power to modify or apply enactments conferred on the Secretary of State

5by each of the sections of the Enterprise Act 2002 mentioned in subsection (2)

includes power to make such consequential modifications of this Chapter as

the Secretary of State considers appropriate in connection with any other

provision made under that section.

(2) Those sections are—

(a) 10sections 248 and 277 (amendments consequential on that Act); and

(b) section 254 (power to apply insolvency law to foreign companies).

(3) In section 170(1) of the Energy Act 2004 (modification of Chapter 3 of Part 3 of

that Act under the Enterprise Act 2002) after “Chapter” insert “(including this

Chapter as applied by section 95 of the Energy Act 2011)”.

100 15Power to make further modifications of insolvency legislation

(1) The power of the Secretary of State under paragraph 46 of Schedule 20 to the

Energy Act 2004 (conduct of energy administration) to make modifications

includes power to make such modifications as the Secretary of State considers

appropriate in relation to any provision made by or under this Chapter.

(2) 20In paragraph 46 of that Schedule, after “Chapter” insert “(including this

Chapter as applied by section 95 of the Energy Act 2011)”.

101 Interpretation of Chapter 5

(1) In this Chapter—

  • “business”, “member” and “property” have the same meanings as in the

    25Insolvency Act 1986;

  • “company” means—

    (a)

    a company registered under the Companies Act 2006, or

    (b)

    an unregistered company;

  • “court”, in relation to a company, means the court—

    (a)

    30having jurisdiction to wind up the company, or

    (b)

    that would have such jurisdiction apart from section 221(2) or

    441(2) of the Insolvency Act 1986 (exclusion of winding up

    jurisdiction in case of companies having principal place of

    business in, or incorporated in, Northern Ireland);

  • 35“energy administrator” has the meaning given by section 93(2) and is to

    be construed in accordance with subsection (2) of this section;

  • “energy supply company administration order” has the meaning given by

    section 93(1);

  • “energy supply company’” has the meaning given by section 93(5);

  • 40“modification” includes omission, addition or alteration, and cognate

    expressions are to be construed accordingly;

  • “non-GB company” means a company incorporated outside Great Britain;

  • “objective of the energy supply company administration” is to be

    construed in accordance with section 94;

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  • “relevant licence” has the meaning given by section 93(5);

  • “subsidiary” and “wholly-owned subsidiary” have the meanings given by

    section 1159 of the Companies Act 2006;

  • “unregistered company” means a company that is not registered under

    5the Companies Act 2006.

(2) In this Chapter references to the energy administrator of a company—

(a) include references to a person appointed under paragraph 91 or 103 of

Schedule B1 to the Insolvency Act 1986, as applied by Part 1 of Schedule

20 to the Energy Act 2004 and section 95 of this Act to be the energy

10administrator of that company; and

(b) where two or more persons are appointed to be the energy

administrator of that company, are to be construed in accordance with

the provision made under section 158(5) of the Energy Act 2004, as

applied by section 95 of this Act.

CHAPTER 6 15Continental shelf

102 Revocation etc of designations under Continental Shelf Act 1964

In section 1(7) of the Continental Shelf Act 1964 (power by Order in Council to

designate an area as an area within which rights with respect to the sea bed etc

are exercisable), for “revoke Orders for the purpose of consolidating them”

20substitute “revoke, amend or re-enact Orders”.

Part 3 Measures for reducing carbon emissions

Offshore electricity

103 Offshore transmission and distribution of electricity: extension of time for

25licence modifications and property scheme applications

(1) In section 90 of the Energy Act 2004 (modification of licence conditions for

offshore transmission and distribution of electricity), in each of subsections (3)

and (8) (time periods for consulting on and making modifications) for “the

commencement of this section” substitute “the passing of the Energy Act 2011”.

(2) 30In section 91 of the Energy Act 2004 (extension of electricity transmission

licences offshore), in each of subsections (6) and (11) (time periods for

consulting on and making modifications) for “the commencement of this

section” substitute “the passing of the Energy Act 2011”.

(3) In Schedule 2A to the Electricity Act 1989 (property schemes in respect of

35licences for offshore transmission of electricity), in paragraph 5(5) (maximum

possible period during which an application for a scheme may be made) for “7

years” substitute “16 years”.

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Security of nuclear construction sites

104 Regulation of security of nuclear construction sites

(1) Section 77 of the Anti-terrorism, Crime and Security Act 2001 (regulation of

security of civil nuclear industry) is amended as follows.

(2) 5In subsection (1) (list of matters that may be regulated) after paragraph (c)

insert—

(cza) nuclear construction sites and equipment used or stored on

such sites;.

(3) In subsection (7) after the definition of “equipment” insert—

  • 10“nuclear construction site” means a site—

    (a)

    on which works are being carried out with a view to its

    becoming a nuclear site used wholly or mainly for

    purposes other than defence purposes; and

    (b)

    which is situated within 5 kilometres of an existing

    15nuclear site.

Decommissioning of offshore infrastructure

105 Abandonment: infrastructure converted for CCS demonstration projects

(1) The Energy Act 2008 is amended as follows.

(2) After section 30 insert—

30A 20Installations converted for CCS demonstration projects

(1) The Secretary of State may by order designate an installation as an

eligible CCS installation.

(2) But an order may not be made under subsection (1) in relation to—

(a) a carbon storage installation established or maintained under a

25licence granted by the Scottish Ministers, or

(b) any other installation established or maintained wholly or

partly in Scotland.

(3) An order under subsection (1) ceases to have effect if the installation in

relation to which it is made becomes an installation within subsection

30(2)(a).

(4) An eligible CCS installation qualifies for change of use relief if—

(a) the installation is or has been used as part of a CCS

demonstration project, and

(b) the trigger event has occurred in relation to the installation at a

35time when the installation was so used (whether before or after

it was designated under this section).

(5) The trigger event occurs—

(a) in relation to an installation used for the injection of captured

carbon dioxide into a carbon storage facility as part of a CCS

40demonstration project, when captured carbon dioxide is first

present at the installation, and

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(b) in relation to an installation used as part of a CCS

demonstration project for any other purpose, when captured

carbon dioxide is first present at another installation used as

mentioned in paragraph (a) as part of the same project.

(6) 5Where an eligible CCS installation qualifies for change of use relief—

(a) an abandonment programme notice must not be served on a

person who is within section 30(1) of the 1998 Act only because

one or more of subsections (7) to (9) applies in relation to the

person (but this does not affect the validity of a notice served on

10any such person before the installation qualified for change of

use relief), and

(b) a proposal must not be made under section 34(1)(b) of the 1998

Act if the effect of the proposal (if implemented) would be to

impose an abandonment liability on a person who is within

15section 34(2)(a) of the 1998 Act only because one or more of

subsections (7) to (10) applies in relation to the person.

(7) This subsection applies in relation to a person if—

(a) the person is within paragraph (b) of section 30(1) of the 1998

Act in relation to the installation only by virtue of the fact that

20the person had a right mentioned in section 30(5)(a) of that Act

when an activity mentioned in section 30(6) of that Act was last

carried on from, by means of or on the installation, and

(b) any such activity was last so carried on before the trigger event

occurred in relation to the installation.

(8) 25This subsection applies in relation to a person if—

(a) the person is within paragraph (ba) of section 30(1) of the 1998

Act in relation to the installation, and

(b) the transfer mentioned in sub-paragraph (i) of that paragraph

took place before the trigger event occurred in relation to the

30installation.

(9) This subsection applies in relation to a person if the person is within

paragraph (e) of section 30(1) of the 1998 Act only by virtue of being

associated with a body corporate which is within subsection (7) or (8).

(10) This subsection applies in relation to a person if the person has been

35within any of paragraphs (a), (b), (c), (d) or (e) of section 30(1) of the

1998 Act in relation to the installation, but only at a time—

(a) when the installation was an offshore installation (within the

meaning given by section 44 of the 1998 Act), and

(b) before the trigger event occurred in relation to the installation.

(11) 40The power conferred by subsection (1) does not include a power to

revoke an order made under that subsection.

(12) In this section—

  • “abandonment liability”, in relation to an installation, means a

    duty to secure that an abandonment programme for the

    45installation is carried out;

  • “abandonment programme”, in relation to an installation, means

    a programme in respect of the installation approved, or having

    effect as if approved, by the Secretary of State under section 32

    of the 1998 Act;

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  • “abandonment programme notice” means a notice served under

    section 29(1) of the 1998 Act;

  • “captured carbon dioxide” means carbon dioxide that has been

    produced by, or in connection with, commercial electricity

    5generation and captured with a view to its disposal by way of

    permanent storage;

  • “carbon dioxide”, “CCS demonstration project” and “commercial

    electricity generation” have the same meanings as in Part 1 of

    the Energy Act 2010 (see section 7 of that Act);

  • 10“carbon storage facility” has the same meaning as in section 20;

  • “Scotland” has the same meaning as in the Scotland Act 1998 (see

    section 126(1) of that Act).

(13) Section 30(8) to (9) of the 1998 Act (when one body corporate is

associated with another) apply for the purposes of this section.

30B 15Submarine pipelines converted for CCS demonstration projects

(1) The Secretary of State may by order designate a submarine pipeline as

an eligible CCS pipeline.

(2) An eligible CCS pipeline qualifies for change of use relief if—

(a) the pipeline is or has been used as part of a CCS demonstration

20project for a purpose other than the transport of petroleum, and

(b) the trigger event has occurred in relation to the pipeline at a

time when the pipeline was so used (whether before or after it

was designated under this section).

(3) The trigger event—

(a) 25in relation to a pipeline used to transport captured carbon

dioxide as part of a CCS demonstration project, occurs when

captured carbon dioxide is first present in the pipeline, and

(b) in relation to a pipeline used as part of a CCS demonstration

project for any other purpose, occurs—

(i) 30when captured carbon dioxide is first present in another

pipeline used as part of the same project, or

(ii) if earlier, when captured carbon dioxide is first present

at an installation used as part of the same project for the

injection of captured carbon dioxide into a carbon

35storage facility.

(4) Where an eligible CCS pipeline qualifies for change of use relief, a

proposal must not be made under section 34(1)(b) of the 1998 Act if the

effect of the proposal (if implemented) would be to impose an

abandonment liability on a person who is within section 34(2)(b) of the

401998 Act only because subsection (5) applies in relation to the person.

(5) This subsection applies in relation to a person if the person has been

within any of paragraphs (a) to (c) of section 30(2) of the 1998 Act in

relation to the pipeline, but only at a time—

(a) when the pipeline was used solely for activities other than

45activities connected with any mentioned in section 17(2)(a), (b)

or (c), and

(b) before the trigger event occurred in relation to the pipeline.

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(6) The power conferred by subsection (1) does not include a power to

revoke an order made under that subsection.

(7) In this section—

  • “abandonment liability”, in relation to a submarine pipeline, is a

    5duty to secure that an abandonment programme for the

    pipeline is carried out;

  • “abandonment programme”, in relation to a submarine pipeline,

    means a programme in respect of the pipeline approved, or

    having effect as if approved, by the Secretary of State under

    10section 32 of the 1998 Act;

  • “captured carbon dioxide” and “CCS demonstration project” have

    the same meanings as in section 30A;

  • “carbon storage facility” has the same meaning as in section 20;

  • “petroleum” has the same meaning as in Part 1 of the 1998 Act (see

    15section 1 of that Act) and includes petroleum that has

    undergone any processing;

  • “submarine pipeline” has the same meaning as in Part 4 of the

    Petroleum Act 1998 (see section 45 of that Act).

(3) In the cross heading before section 30, for “installations” substitute

20“infrastructure”.

(4) In section 30 (abandonment of installations)—

(a) in subsection (1) (application of Part 4 of Petroleum Act 1998 in relation

to abandonment of carbon storage installations)—

(i) for ““the 1998 Act”” substitute “referred to in this section and

25sections 30A and 30B as “the 1998 Act””, and

(ii) at the end insert “and section 30A”,

(b) after subsection (4) (power to make regulations modifying Part 4 of the

1998 Act in its application to carbon storage installations) insert—

(4A) The power in subsection (4) is subject to section 30A., and

(c) 30in subsection (5) (meaning of “carbon storage installation”) after “this

section” insert “and section 30A”.

(5) In section 105(2) (parliamentary control of subordinate legislation), after

paragraph (a) insert—

(aa) an order which contains provision made under section 30A or

3530B only (powers to designate installations and submarine

pipelines as eligible CCS installations and eligible CCS

pipelines);.

Carbon dioxide pipelines

106 Carbon dioxide pipelines: powers of compulsory acquisition

(1) 40The Pipe-lines Act 1962 is amended as follows.

(2) In section 12 (orders for compulsory acquisition of rights over land for pipe-

line construction)—

(a) in subsection (1), for “the next following section” substitute “section

13”;

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(b) in subsections (2), (4), (5)(a) and (b), (5A) (in both places), (6) and (7),

after “a compulsory rights order” insert “under this section”;

(c) in subsection (3), after “compulsory rights orders” insert “under this

section”.

(3) 5After section 12 insert—

Pipe-lines for Conveying Carbon Dioxide: Compulsory Acquisition of Rights over

Land
12A Orders for compulsory acquisition of rights over land: pipe-lines for

conveying carbon dioxide

(1) 10This section applies in relation to a pipe-line (or a length of a pipe-line)

that is intended to be converted into a pipe-line (or length) used for

conveying carbon dioxide.

(2) The owner of the pipe-line may apply to the Secretary of State for an

order under subsection (3) in relation to land in which the pipe-line (or

15a length of the pipe-line) is situated.

(3) An order under this subsection is an order authorising the owner of the

pipe-line to do one or more of the following—

(a) to use the pipe-line (or length of the pipe-line) in the land

described in the order to convey carbon dioxide;

(b) 20to execute pipe-line works in the land which are necessary in

consequence of the presence of the pipe-line (or length) in the

land;

(c) to execute pipe-line works in the land to enable the pipe-line (or

length) to be used to convey carbon dioxide or in consequence

25of its use to convey carbon dioxide;

(d) to exercise, in relation to the pipe-line (or length), such of the

rights mentioned in Schedule 4 as may be specified in the order.

An order under this subsection is referred to in this Act as a

“compulsory rights order”.

(4) 30A compulsory rights order under this section may be made subject to

conditions (see section 13).

(5) On receiving an application under subsection (2), the Secretary of State

may grant or refuse the application.

(6) Part 1 of Schedule 2, as modified by Part 2 of that Schedule, has effect

35in relation to applications for compulsory rights orders under this

section.

(7) A compulsory rights order under this section enures for the benefit of

the owner for the time being of the pipe-line.

(8) The Secretary of State may by order revoke a compulsory rights order

40under this section, in whole or in part, if—

(a) the pipe-line (or length of the pipe-line) is diverted from the

land described in the order,

(b) the pipe-line (or length) is abandoned,

(c) the pipe-line (or length) ceases to be used to convey carbon

45dioxide, or

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(d) the owner of the pipe-line makes an application for the

revocation of the order.

(9) A compulsory rights order under this section does not affect any right

over the land described in the order that would not have been affected

5had the land been compulsorily purchased by virtue of a compulsory

purchase order.

(10) A compulsory rights order under this section does not authorise the

disregard of any enactment or of any instrument having effect by virtue

of any enactment.

(11) 10A compulsory rights order under this section is not to be taken to confer

a right of support for the pipeline (or length of pipeline).

(12) A compulsory rights order under this section is to be subject to special

parliamentary procedure.

(13) For the purposes of this section, “carbon dioxide” includes any

15substance consisting primarily of carbon dioxide..

(4) In section 66 (general interpretation provisions), in subsection (1), in the

definition of “compulsory rights order”, for “subsection (1) of section twelve”

substitute “sections 12(1) and 12A(2)”.

(5) In Schedule 2—

(a) 20in the shoulder reference, after “12,” insert “12A,”;

(b) in paragraph 10(1), for “subsection (3) of section twelve of this Act”

substitute “sections 12(3) and 12A(4)”.

(6) In Schedule 4, in the shoulder reference, for “Section 12” substitute “Sections 12

and 12A”.

25Carbon emissions reduction

107 Contribution to carbon budgeting under the Climate Change Act 2008

(1) The Secretary of State must prepare and publish an annual report on the extent

to which—

(a) green deal plans under Chapter 1 of Part 1, and

(b) 30the energy company obligations provisions,

have contributed to the Secretary of State fulfilling the duty under section

4(1)(b) of the Climate Change Act 2008 (carbon budgeting).

(2) The “energy company obligations provisions” means—

(a) sections 33BC and 33BD of the Gas Act 1986 and sections 41A and 41B

35of the Electricity Act 1989 (promotion of reductions in carbon emissions

and home-heating costs),

(b) sections 103 and 103A of the Utilities Act 2000 (overall carbon emissions

and home-heating cost reduction targets), and

(c) section 103B of the Utilities Act 2000 (Secretary of State’s power to

40require information about carbon emissions and home-heating cost

reduction targets).

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(3) The first report under this section must be published before the end of 2014.

(4) The Secretary of State must lay before Parliament a copy of each report under

this section.

108 Energy efficiency aim

(1) 5The Secretary of State must take such action as he considers appropriate to

improve the energy efficiency of residential accommodation in England so as

to contribute to the Secretary of State fulfilling the duty under section 1(1) of

the Climate Change Act 2008 (reduction of net UK carbon account by 2050).

(2) In subsection (1) “residential accommodation” has the meaning given by

10section 1 of the Home Energy Conservation Act 1995.

(3) Section 2 of the Sustainable Energy Act 2003 (energy efficiency of residential

accommodation) ceases to have effect.

(4) In section 9 of the Sustainable Energy Act 2003 (citation, extent and

commencement), in subsections (3) and (5) leave out “2,”.

15Electricity from renewable sources

109 Electricity from renewable sources: National Park authorities and Broads

Authority

(1) This section applies to a body which is a National Park authority or the Broads

Authority.

(2) 20The body may—

(a) produce electricity from a renewable source;

(b) establish and operate generating stations and other installations for the

purpose of producing electricity from a renewable source;

(c) make grants or loans to enable other persons to do anything which the

25body may do by virtue of paragraph (a) or (b);

(d) use, sell or otherwise dispose of electricity produced by virtue of the

powers conferred by this section.

(3) A “renewable source” is—

(a) in England and Wales, a source listed in regulation 2 of the Sale of

30Electricity by Local Authorities (England and Wales) Regulations 2010

(S.I. 2010/1910S.I. 2010/1910);

(b) in Scotland, a source listed in regulation 2 of the Sale of Electricity by

Local Authorities (Scotland) Regulations 2010 (S.I. 2010/1908S.I. 2010/1908).

(4) Any regulations which—

(a) 35are made in exercise of the power conferred by section 11(3) of the Local

Government (Miscellaneous Provisions) Act 1976 (power to prescribe

the circumstances in which local authorities may sell electricity), and

(b) amend, revoke or re-enact regulation 2 of the Sale of Electricity by Local

Authorities (England and Wales) Regulations 2010,

40may amend subsection (3)(a) for the purpose of providing what is a “renewable

source” in England and Wales.