Energy Bill (HC Bill 206)

Energy BillPage 90

(a) are made in exercise of the power conferred by section 170A(3) of the

Local Government (Scotland) Act 1973 (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

5Authorities (Scotland) Regulations 2010,

may amend subsection (3)(b) for the purpose of providing what is a

“renewable source” in Scotland.

(6) Nothing in this section—

(a) exempts a body from the requirements of Part 1 of the Electricity Act

101989, or

(b) affects what a body has power to do apart from this section.

Northern Ireland: renewable heat incentives

110 Renewable heat incentives in Northern Ireland

(1) The Department of Enterprise, Trade and Investment may make regulations—

(a) 15establishing a scheme to facilitate and encourage renewable generation

of heat in Northern Ireland, and

(b) about the administration and financing of the scheme.

(2) Regulations under this section may, in particular—

(a) make provision for the Department or NIAUR to make payments, or to

20require designated fossil fuel suppliers to make payments, in specified

circumstances, to—

(i) the owner of plant used or intended to be used for the

renewable generation of heat, whether or not the owner is also

operating or intending to operate the plant;

(ii) 25a producer of biogas or biomethane;

(iii) a producer of biofuel for generating heat;

(b) make provision about the calculation of such payments;

(c) make provision about the circumstances in which such payments may

be recovered;

(d) 30require designated fossil fuel suppliers to provide specified

information to the Department or NIAUR;

(e) make provision for payments to fossil fuel suppliers in specified

circumstances;

(f) make provision about the enforcement of obligations imposed by or by

35virtue of the regulations (which may include a power for the

Department or NIAUR to impose financial penalties);

(g) confer functions on the Department or NIAUR, or both.

(3) In this section—

  • “biofuel” means liquid or gaseous fuel which is produced wholly from

    40biomass;

  • “biogas” means gas produced by the anaerobic or thermal conversion of

    biomass;

  • “biomass” means material, other than fossil fuel or peat, which is, or is

    derived directly or indirectly from, plant matter, animal matter, fungi

    45or algae;

  • Energy BillPage 91

  • “biomethane” means biogas which is suitable for conveyance through

    pipes to premises in accordance with a licence under Article 8(1)(a) of

    the Gas (Northern Ireland) Order 1996 (S.I. 1996/275 (N.I. 2)S.I. 1996/275 (N.I. 2)) (licences

    to convey gas);

  • 5“the Department” means the Department of Enterprise, Trade and

    Investment;

  • “designated fossil fuel suppliers” means—

    (a)

    if the regulations so provide, a specified class of fossil fuel

    suppliers, and

    (b)

    10in any other case, all fossil fuel suppliers;

  • “fossil fuel” means—

    (a)

    coal;

    (b)

    lignite;

    (c)

    natural gas (within the meaning of the Energy Act 1976);

    (d)

    15crude liquid petroleum;

    (e)

    petroleum products (within the meaning of that Act);

    (f)

    any substance produced directly or indirectly from a substance

    mentioned in paragraphs (a) to (e);

  • “fossil fuel supplier” means a person who supplies fossil fuel to

    20consumers for the purpose of generating heat;

  • “functions” includes powers and duties;

  • “modify” includes amend, add to or repeal;

  • “NIAUR” means the Northern Ireland Authority for Utility Regulation;

  • “owner”, in relation to any plant which the subject of a hire purchase

    25agreement, a conditional sale agreement or any agreement of a similar

    nature, means the person in possession of the plant under that

    agreement;

  • “plant” includes any equipment, apparatus or appliance;

  • “renewable generation of heat” means the generation of heat by means of

    30a source of energy or technology mentioned in subsection (4).

(4) The sources of energy and technologies are—

(a) biomass;

(b) biofuels;

(c) fuel cells;

(d) 35water (including waves and tides);

(e) solar power;

(f) geothermal sources;

(g) heat from air, water or the ground;

(h) combined heat and power systems (but only if the system’s source of

40energy is a renewable source within the meaning given by Article 55F

of the Energy (Northern Ireland) Order 2003 (S.I. 2003/419 (N.I. 6)S.I. 2003/419 (N.I. 6)));

(i) biogas.

(5) The Department may by regulations—

(a) modify the list of sources of energy and technologies in subsection (4);

(b) 45modify the definition of “biofuel”, “biogas” or “biomass” in subsection

(3).

Energy BillPage 92

(6) The Department may by regulations make provision, for the purposes of

subsection (2)(a)(iii) and the definition of “fossil fuel supplier”, specifying that

particular activities do or do not constitute generating heat.

(7) Any power to make regulations under this section is to be exercisable by

5statutory rule for the purposes of the Statutory Rules (Northern Ireland) Order

1979 (S.I. 1979/1573 (N.I. 12)S.I. 1979/1573 (N.I. 12)).

(8) Regulations under this section may not be made unless a draft of the

regulations has been laid before, and approved by a resolution of, the Northern

Ireland Assembly.

(9) 10Regulations under this section may—

(a) provide for a person to exercise a discretion in dealing with any matter;

(b) include incidental, supplementary and consequential provision;

(c) make transitory or transitional provisions or savings;

(d) make provision generally, only in relation to specified cases or subject

15to exceptions (including provision for a case to be excepted only so long

as conditions specified in the regulations are satisfied);

(e) make different provision for different cases or circumstances or for

different purposes.

111 Power for Gas and Electricty Markets Authority to act on behalf of Northern

20Ireland authority in connection with scheme under section 110

(1) GEMA and a Northern Ireland authority may enter into arrangements for

GEMA to act on behalf of the Northern Ireland authority for, or in connection

with, the carrying out of any functions that may be conferred on the Northern

Ireland authority under, or for the purposes of, any scheme that may be

25established, under section 110.

(2) In this section—

  • “GEMA” means the Gas and Electricity Markets Authority;

  • “Northern Ireland authority” means—

    (a)

    the Department of Enterprise, Trade and Investment, or

    (b)

    30the Northern Ireland Authority for Utility Regulation.

Part 4 Coal Authority

112 Additional powers of the Coal Authority: England and Wales

(1) After section 4C of the Coal Industry Act 1994 insert—

4CA 35Further powers relating to subsidence and water discharge

(1) The Authority may take such action as it considers appropriate (if

any)—

(a) with respect to subsidence arising otherwise than in connection

with coal-mining;

(b) 40for the purpose of preventing, or mitigating the effect of, the

discharge of water other than from a coal mine into or on to any

land or into any controlled waters.

Energy BillPage 93

(2) The powers conferred on the Authority by subsection (1) do not affect

any other function of the Authority.

(2) In section 4A of that Act (power of the Coal Authority with respect to coal mine

water discharge), in subsection (2), for “and 4C” substitute “, 4C and 4CA”.

113 5Additional powers of the Coal Authority: Scotland

(1) After section 4F of the Coal Industry Act 1994 insert—

4G Further powers relating to subsidence and water discharge: Scotland

(1) The Authority may take such action as it considers appropriate (if

any)—

(a) 10with respect to subsidence arising otherwise than in connection

with coal-mining;

(b) for the purpose of preventing, or mitigating the effect of, the

discharge of water other than from a coal mine into or on to any

land or into the water environment.

(2) 15The powers conferred on the Authority by subsection (1) do not affect

any other function of the Authority.

(2) In section 4D of that Act (power of the Coal Authority with respect to coal mine

water discharge in Scotland), in subsection (2), for “and 4F” substitute “, 4F and

4G”.

20Part 5 Miscellaneous and general

Miscellaneous

114 Amendment of section 137 of the Energy Act 2004

In section 137(3) of the Energy Act 2004 (standard conditions of transmission

25licences under Part 1 of the Electricity Act 1989)—

(a) in paragraph (a) omit “or”, and

(b) after paragraph (b) insert—

(c) under the Energy Act 2008,

(d) under the Energy Act 2010, or

(e) 30under the Energy Act 2011,.

115 Amendment and repeal of measures relating to home energy efficiency

(1) The Home Energy Conservation Act 1995—

(a) ceases to have effect in Scotland;

(b) ceases to apply in relation to energy conservation authorities in Wales.

(2) 35In section 1 of that Act (interpretation) in the definition of “energy conservation

measures” after “promotion,” insert “any available financial assistance,”.

(3) In section 1 of the Sustainable Energy Act 2003 (annual report on progress

towards sustainable energy aims)—

Energy BillPage 94

(a) subsection (1)(e) and the “and” immediately preceding it cease to have

effect, and

(b) subsection (1AA) ceases to have effect.

(4) In section 4 of that Act (energy efficiency of residential accommodation: energy

5conservation authorities) subsection (13)(b) ceases to have effect.

(5) Section 217 of the Housing Act 2004 (energy efficiency of residential

accommodation in England) ceases to have effect.

General

116 Extent

(1) 10Subject to subsections (2) to (6), this Act extends to England and Wales and

Scotland only.

(2) The following provisions extend to England and Wales only—

(a) section 9 (documents containing information about green deal plans:

England and Wales),

(b) 15section 14(3) to (5) (acknowledgment of green deal plan in respect of

property in England or Wales),

(c) section 15(3) (further provision made in regulations for

acknowledgment of such a plan),

(d) sections 41 to 52 (private rented sector: England and Wales),

(e) 20section 73 (access to register of energy performance certificates etc:

England and Wales),

(f) section 108 (energy efficiency aim), and

(g) section 112 (additional powers of the Coal Authority: England and

Wales).

(3) 25The following provisions extend to Scotland only—

(a) section 10 (documents containing information about green deal plans:

Scotland),

(b) section 14(6) to (8) (acknowledgment of green deal plan in respect of

property in Scotland),

(c) 30section 15(4) (further provision made in regulations for

acknowledgment of such a plan),

(d) section 35(6) (green deal appeals: revocation or amendment of

delegated legislation by Scottish Ministers),

(e) sections 53 to 64 (private rented sector: Scotland),

(f) 35section 74 (access to register of energy performance certificates etc:

Scotland), and

(g) section 113 (additional powers of the Coal Authority: Scotland).

(4) Section 110 (renewable heat incentives in Northern Ireland) extends to

Northern Ireland only.

(5) 40Section 111 (power for Gas and Electricity Markets Authority to act on behalf

of Northern Ireland authority in connection with scheme under section 110)

extends to England and Wales, Scotland and Northern Ireland.

(6) Subject to section 115(1) and subsection (7) below, an amendment or repeal of

an enactment has the same extent as the enactment amended or repealed.

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(7) The amendments made by sections 25 to 29 (green deal: modifying consumer

credit legislation) extend to England and Wales and Scotland only.

117 Commencement

(1) The provisions of this Act come into force on such day as the Secretary of State

5may by order made by statutory instrument appoint, subject to subsections (2)

to (5).

(2) The following provisions come into force on such day as the Scottish Ministers

may by order appoint—

(a) section 10 (documents containing information about green deal plans:

10Scotland);

(b) section 14(6) to (8) (acknowledgment of green deal plan in respect of

property in Scotland);

(c) section 15(4) (further provision made in regulations for

acknowledgment of such a plan);

(d) 15section 35(6) (green deal appeals: revocation or amendment of

delegated legislation by Scottish Ministers);

(e) sections 53 to 64 (private rented sector: Scotland);

(f) section 74 (access to register of energy performance certificates etc:

Scotland).

(3) 20The following provisions come into force at the end of the period of two

months beginning with the day on which this Act is passed—

(a) sections 65 to 71 (reducing carbon emissions and home-heating costs);

(b) section 72 (smart meters);

(c) section 73 (access to register of energy performance certificates etc:

25England and Wales);

(d) sections 75 to 77 (information about tariffs);

(e) sections 78 and 79 (security of electricity supply);

(f) sections 92 to 101 (special administration);

(g) section 102 (designations under Continental Shelf Act 1964);

(h) 30subsection (3) of section 103 (offshore transmission and distribution of

electricity);

(i) section 104 (regulation of security of nuclear construction sites);

(j) section 105 (abandonment: infrastructure converted for CCS

demonstration projects);

(k) 35section 109 (electricity from renewable sources: National Park

authorities and Broads Authority);

(l) sections 110 and 111 (renewable heat incentives in Northern Ireland).

(4) The following provisions come into force on the day on which this Act is

passed—

(a) 40section 37 (preparatory expenditure: framework regulations);

(b) section 80 (modification of the Uniform Network Code);

(c) subsections (1) and (2) of section 103 (offshore transmission and

distribution of electricity);

(d) section 116, this section and section 118 (general provisions).

(5) 45Schedule 1 (reducing carbon emissions and home-heating costs: minor and

consequential amendments) comes into force as follows—

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(a) paragraphs 1, 2, 7, 8(1), (2)(a), (3)(a) and (4) and 9 come into force at the

end of the period of two months beginning with the day on which this

Act is passed;

(b) paragraphs 4 and 8(2)(b), (3)(b) and (5) come into force on 1 January

52013;

(c) paragraphs 3, 5 and 6 come into force on 6 April 2014.

(6) An order made by the Secretary of State or the Scottish Ministers under this

section may—

(a) appoint different days for different purposes;

(b) 10make transitional provision and savings.

118 Short title

This Act may be cited as the Energy Act 2011.

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SCHEDULES

Section 71

SCHEDULE 1 Reducing carbon emissions and home-heating costs: minor and consequential

amendments

5Gas Act 1986

1 In section 33DA(1)(a) of the Gas Act 1986 (publication of statistical

information about standards of performance) after sub-paragraph (ii)

insert—

(iii) home-heating cost reduction obligations imposed by

10order under section 33BD; and.

Electricity Act 1989

2 The Electricity Act 1989 is amended in accordance with paragraphs 3 to 6.

3 In section 6(9) (definition of “electricity distributor”, “electricity generator”

and “electricity supplier”) omit the definition of “electricity generator”.

4 (1) 15Section 41A (promotion of reductions in carbon emissions: electricity

generators, electricity distributors and electricity suppliers) is amended as

follows.

(2) In the heading omit “electricity generators,”.

(3) In subsection (1)—

(a) 20omit paragraph (za) (power to impose carbon emission reduction

obligation on electricity generators); in the words after paragraph (b) omit “generator,.

(4) In subsection (3) omit “electricity generators,”.

(5) In subsection (4) omit paragraph (a) (duty to carry out functions under the

25section in a way that does not inhibit competition between electricity

generators).

(6) In subsection (5)—

(a) in paragraph (a) omit “electricity generators,”;

(b) in paragraph (d) omit “generators,”;

(c) 30in paragraph (f) omit “generators,”.

(7) In subsection (6) omit “generator,”.

(8) In subsection (7)(d) omit “electricity generator,”.

(9) In subsection (8)(d) omit “generators,”.

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(10) In subsection (11) omit “electricity generators,”.

5 (1) Section 42AA (publication of statistical information about standards of

performance) is amended as follows.

(2) In paragraph (a) of subsection (1)—

(a) 5omit “electricity generators,”;

(b) after sub-paragraph (ii) insert—

(iii) home-heating cost reduction obligations

imposed by order under section 41B; and.

(3) In paragraph (b) of subsection (1) omit “generators,”.

(4) 10In subsection (2) omit “electricity generators,”.

6 In section 64(1) (interpretation etc of Part 1) in the definition of “electricity

distributor”, “electricity generator” and “electricity supplier” omit “,

“electricity generator””.

Utilities Act 2000

7 15The Utilities Act 2000 is amended in accordance with paragraphs 8 and 9.

8 (1) Section 103 (overall carbon emissions reduction targets) is amended as

follows.

(2) In subsection (1)—

(a) in the words before paragraph (a) for “by the Authority of its

20functions” substitute “of the functions of the Administrator”;

(b) in paragraph (b) omit “generators,”.

(3) In subsection (2)—

(a) in the words before paragraph (a) for “the Authority to apportion the

target” substitute “the target to be apportioned”

(b) 25in paragraph (b) omit “electricity generators,”.

(4) In subsection (3) for “The Authority” substitute “The Administrator”.

(5) In subsection (4) omit “electricity generators,”.

9 In section 105 (general restriction on disclosure of information) in subsection

(3) (circumstances in which the restriction does not apply to a disclosure)

30after paragraph (a) insert—

(ab) it is required by a notice under section 103B of this Act or is

permitted by subsection (6) of that section;.

Section 88

SCHEDULE 2 Upstream petroleum infrastructure: minor and consequential amendments

35Pipe-lines Act 1962

1 The Pipe-lines Act 1962 is amended in accordance with paragraphs 2 to 7.

2 In section 9 (provisions for securing that a pipeline is so constructed as to

reduce necessity for construction of others)—

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(a) in subsection (8) for the words from “applications” to the end

substitute with respect to the proposed pipe-line—

(a) an application of a kind mentioned in subsection

(1)(a) of section 81 of the Energy Act 2011 (acquisition

5of rights to use upstream petroleum infrastructure),

and

(b) if applicable, an application under subsection (4) of

that section.;

(b) after subsection (8) insert—

(9) 10For the purposes of an application made with respect to a

proposed pipe-line by virtue of subsection (8)—

(a) sections 81 and 82 of the Energy Act 2011 shall have

effect as if—

(i) references to a pipe-line were references to the

15proposed pipe-line as it would be once

constructed in accordance with the condition

attached by virtue of subsection (1) of this

section;

(ii) references to the owner of a pipe-line were

20reference to the proposed owner of the

proposed pipeline;

(b) section 83 of the Energy Act 2011 shall be

disregarded.

3 In section 9A (provisions for securing that an additional pipe-line is so

25constructed as to reduce necessity for construction of other pipe-lines)—

(a) in subsection (8) for the words from “applications” to the end

substitute with respect to the proposed pipe-line—

(a) an application of a kind mentioned in subsection

(1)(a) of section 81 of the Energy Act 2011 (acquisition

30of rights to use upstream petroleum infrastructure),

and

(b) if applicable, an application under subsection (4) of

that section.;

(b) after subsection (8) insert—

(9) 35For the purposes of an application made with respect to a

proposed pipe-line by virtue of subsection (8)—

(a) sections 81 and 82 of the Energy Act 2011 shall have

effect as if—

(i) references to a pipe-line were references to the

40proposed pipe-line as it would be once

constructed in accordance with the notice

served under subsection (1) of this section;

(ii) references to the owner of a pipe-line were

reference to the proposed owner of the

45proposed pipeline;

(b) section 83 of the Energy Act 2011 shall be

disregarded.

4 In section 10A(2) for “, 10(4) or 10E(9)” substitute “or 10(4)”.