PART 2 continued CHAPTER 5 continued
Contents page 40-33 50-33 60-33 70-33 80-33 90-33 100-33 110-33 120-33 130-33 140-33 150-33 160-33 170-33 Last page
Energy BillPage 80
(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).
(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.
(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)”.
(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)”.
(1) In this Chapter—
“business”, “member” and “property” have the same meanings as in the
25Insolvency Act 1986;
“company” means—
a company registered under the Companies Act 2006, or
an unregistered company;
“court”, in relation to a company, means the court—
30having jurisdiction to wind up the company, or
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.
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”.
(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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(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—
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
which is situated within 5 kilometres of an existing
15nuclear site.”
(1) The Energy Act 2008 is amended as follows.
(2) After section 30 insert—
(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.
(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);”.
(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—
(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”.
(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.
(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,”.
(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.