House of Commons Amendments

Session 2012 - 13
Internet Publications
Other Bills before Parliament

Public Bill Committee: 5 February 2013
130

Energy Bill, continued

Meaning and calculation of “carbon intensity of electricity generation in Great Britain”

Mr John Hayes

NC11


To move the following Clause:—

‘(1)
In sections [Decarbonisation target range] and [Further duties of the Secretary

of State], “carbon intensity of electricity generation in Great Britain” means

grams of carbon dioxide equivalent emissions, measured per kilowatt hour of

electricity generated in Great Britain (calculated consistently with international

carbon reporting practice).

(2)
For the purposes of subsection (1)—

(a)
“carbon dioxide equivalent” means a gram of carbon dioxide or an

amount of any other greenhouse gas with an equivalent global warming

potential (calculated consistently with international carbon reporting

practice);

(b)
“Great Britain” includes—

(i)
the territorial sea adjacent to Great Britain, and

(ii)
any area for the time being designated by an Order in Council

under section 84(4) of the Energy Act 2004 (a “Renewable

Energy Zone” for the purposes of that Act).

(3)
In this section—

(a)
“greenhouse gas” has the meaning given by section 92(1) of the Climate

Change Act 2008;

(b)
“international carbon reporting practice” has the meaning given by

section 94(1) of that Act.

(4)
But the Secretary of State may by order make further provision about—

(a)
the meaning of “carbon intensity of electricity generation in Great

Britain” (including, in particular, the meaning of “Great Britain”);

(b)
the means by which the carbon intensity is to be calculated;

(c)
the meaning of “in relation to any year”;


and subsections (1) to (3) are subject to provision made by any such order.

(5)
An order under this section is to be made by statutory instrument and a statutory

instrument containing such an order may not be made unless a draft of the

instrument has been laid before and approved by a resolution of each House of

Parliament.

(6)
An order under this section may—

(a)
include incidental, supplementary and consequential provision;

(b)
make transitory or transitional provision or savings;

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

different purposes;

(d)
make provision subject to exceptions.

(7)
Before laying before Parliament a draft of a statutory instrument containing an

order under this section the Secretary of State must consult the Scottish Ministers

and the Welsh Ministers.’.

Public Bill Committee: 5 February 2013
131

Energy Bill, continued

Fees for services provided for energy resilience purposes

Mr John Hayes

NC12


To move the following Clause:—

‘(1)
The Secretary of State may require fees to be paid for services or facilities

provided or made available by the Secretary of State in the exercise of energy

resilience powers.

(2)
“Energy resilience powers” are any powers exercised by the Secretary of State for

the purposes of, or in connection with, preventing or minimising disruption to the

energy sector in Great Britain (including disruption to the supply of fuel in Great

Britain).

(3)
The amount of any fee charged under this section is—

(a)
such amount as may be specified in, or determined by or in accordance

with, regulations made by the Secretary of State, or

(b)
if no such regulations are made, an amount specified in, or determined by

or in accordance with, a direction given by the Secretary of State for the

purposes of this section.

(4)
Regulations or a direction under this section may provide for the amounts of fees

to be different in different cases and, in particular, for fees in respect of the

exercise of the same power to be of different amounts in different circumstances.

(5)
Regulations under subsection (3)(a) must be made by statutory instrument and

any such instrument is subject to annulment in pursuance of a resolution of either

House of Parliament.

(6)
The Secretary of State must lay before Parliament a statement of any fees

specified in, or determined by or in accordance with, a direction given under

subsection (3)(b).’.

Power to modify energy supply licences: domestic supply contracts

Gregory Barker

NC13


To move the following Clause:—

‘(1)
The Secretary of State may modify—

(a)
a condition of a particular licence under section 7A(1) of the Gas Act

1986 (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 EA 1989

(supply licences);

(d)
the standard conditions incorporated in licences under that provision by

virtue of section 8A of that Act.

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

(a)
promoting competition in domestic supplies of gas and electricity; or

(b)
requiring licence holders to change the domestic tariffs or other terms of

domestic supply contracts so as to reduce the costs to their domestic

customers for supplies of gas or electricity.

Public Bill Committee: 5 February 2013
132

Energy Bill, continued

(3)
A modification under subsection (1) may, in particular, make provision—

(a)
requiring a licence holder to adopt one or more standard domestic tariffs;

(b)
for specifying a limit on the number of domestic tariffs, or domestic

tariffs of a particular category, a licence holder may adopt;

(c)
about discretionary terms (and may in particular require the same

discretionary terms to be offered in connection with, or incorporated into,

all domestic supply contracts of any particular category);

(d)
for requiring a licence holder to provide information about its domestic

tariffs and other supply contract terms, including information for

enabling or facilitating the comparison—

(i)
of different domestic tariffs or supply contract terms of the

licence holder;

(ii)
of domestic tariffs and supply contract terms of different licence

holders;

(e)
for requiring a licence holder to change the domestic tariff or other

supply contract terms on which it supplies gas or electricity to a domestic

customer by—

(i)
switching to a different domestic tariff or different supply

contract terms, unless the customer objects, or

(ii)
offering the customer, or inviting the customer to switch to, a

different domestic tariff or different supply contract terms.

(4)
Provision that may be included in a licence by virtue of subsection (3)(d) may in

particular—

(a)
require a licence holder to provide each domestic customer with

information—

(i)
about the customer’s existing domestic tariffs and supply

contract terms;

(ii)
about the expected cost to the customer of supplies under the

customer’s existing domestic supply contract and on one or more

other domestic tariffs (including the lowest domestic tariff for

the customer) or other supply contract terms of the licence

holder;

(iii)
about how to switch to different supply contract terms;

(b)
make provision about the format in which information is to be provided,

which may in particular require information to be provided—

(i)
in the form of a code or otherwise in a format readable by an

electronic device, or which facilitates processing of the

information by means of an electronic device, or

(ii)
in the case of information about a domestic tariff or supply

contract terms, in the form of a single figure or set of figures.

(5)
Provision included in a licence by virtue of the power in subsection (1)—

(a)
may make provision for specifying how any domestic tariff (including a

licence holder’s lowest domestic tariff for a customer), or other supply

contract terms, is or are to be identified for the purpose of any relevant

provision;

(b)
may make provision about the calculation or estimation of any amount or

figure for the purpose of a relevant provision, which may, in particular,

include provision—

(i)
about assumptions to be made;

(ii)
requiring information about a customer’s circumstances or

previous consumption of gas or electricity to be taken into

account;

Public Bill Committee: 5 February 2013
133

Energy Bill, continued

(c)
may confer functions on the Secretary of State or the Authority;

(d)
may make different provision for different kinds of domestic customers

or different supply contract terms, or otherwise in relation to different

cases;

(e)
may make provision generally or only in relation to specified categories

of domestic customers, domestic tariffs or domestic supply contracts or

otherwise only in relation to specified cases or subject to exceptions;

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

(g)
may do any of the things authorised for licences of that type by section

7B(5)(a), (6) or (7) of the Gas Act 1986 or section 7(3), (4), (5) or (6A)

of EA 1989.

(6)
The power in subsection (1)—

(a)
may be exercised generally, only in relation to specified cases or subject

to 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)
includes a power to make consequential modifications.

(7)
In this section—

“discretionary terms”, in relation to a domestic supply contract (or proposed

domestic supply contract), means the supply contract terms other than the

principal terms;

“domestic customer” means a customer under a domestic supply contract;

“domestic supply contract” means a contract for the supply of gas or

electricity at domestic premises wholly or mainly for domestic purposes;

“domestic tariff”, in relation to a domestic supply contract (or proposed

domestic supply contract), means the principal terms of the contract;

“modify” includes amend, add to or remove, and reference to modifications

are to be construed accordingly;

“the principal terms”, in relation to a domestic supply contract, means the

terms of the contract of the types specified in an order under subsection

(10);

“relevant provision” means any provision included in a licence by virtue of

subsection (1);

“standard domestic tariff” means a domestic tariff some or all of whose

terms are specified by, or in accordance with, a relevant provision;

“supply contract terms” means the terms and conditions of a domestic

supply contract.

(8)
For the purposes of the definition of “standard domestic tariff”, the terms that

may be specified by, or in accordance with, a relevant provision—

(a)
may include a term providing for a charge or rate to be fixed for a period

specified by, or in accordance with, the provision, but

(b)
may not otherwise include any term setting a monetary charge or rate.

(9)
For the purposes of this section—

(a)
gas or electricity is supplied on a tariff if the supply is made under a

contract whose principal terms are the terms of the tariff; and

(b)
a licence holder adopts a tariff if it supplies or offers to supply gas or

electricity on that tariff.

(10)
The Secretary of State may by order specify types of terms of a domestic supply

contract (as to charges and other matters) which are the principal terms of such a

contract.

(11)
An order under subsection (10) may—

Public Bill Committee: 5 February 2013
134

Energy Bill, continued

(a)
include incidental, supplementary and consequential provision;

(b)
make transitory or transitional provision or savings;

(c)
make different provision for different domestic supply contracts or

otherwise for different purposes;

(d)
make provision subject to exceptions.

(12)
An order under subsection (10) is to be made by statutory instrument.’.

Section [Power to modify energy supply licences: domestic supply contracts]: procedure

etc

Gregory Barker

NC14


To move the following Clause:—

‘(1)
Before making modifications of a licence under section [Power to modify energy

supply licences: domestic supply contracts](1) the Secretary of State must—

(a)
publish the proposed modifications, and

(b)
consult—

(i)
the holder of any licence being modified,

(ii)
the Authority, and

(iii)
such other persons as the Secretary of State considers it

appropriate to consult.

(2)
Subsection (1)(b) may be satisfied by consultation before, as well as by

consultation after, the passing of this Act.

(3)
Subsection (4) applies where, after the consultation, the Secretary of State decides

to make the modifications (whether in the form published under subsection (1)(a)

or in a modified form).

(4)
The Secretary of State must publish a statement of the decision, which must—

(a)
contain details of the modifications to be made under section [Power to

modify energy supply licences: domestic supply contracts](1);

(b)
state when the modifications are to take effect.

(5)
Where the Secretary of State makes a modification of the standard conditions of

a licence of any type, the Authority must—

(a)
make the same modification of those standard conditions for the purposes

of their incorporation in licences of that type granted after that time, and

(b)
publish the modification.

(6)
A modification of part of a standard condition of a particular 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 EA

1989.

(7)
The power in section [Power to modify energy supply licences: domestic supply

contracts](1) may not be exercised after 31 December 2018.’.

Public Bill Committee: 5 February 2013
135

Energy Bill, continued

General duties of Secretary of State

Gregory Barker

NC15


To move the following Clause:—

‘(1)
Sections 4AA to 4B of the Gas Act 1986 (principal objective and general duties)

apply in relation to functions of the Secretary of State under section [Power to

modify energy supply licences: domestic supply contracts] or [Section [Power to

modify energy supply licences: domestic supply contracts]: procedure etc] of this

Act with respect to holders of licences under section 7A(1) of that Act as they

apply in relation to functions of the Secretary of State under Part 1 of that Act.

(2)
Sections 3A to 3D of EA 1989 (principal objective and general duties) apply in

relation to functions of the Secretary of State under section [Power to modify

energy supply licences: domestic supply contracts] or [Section [Power to modify

energy supply licences: domestic supply contracts]: procedure etc] of this Act

with respect to holders of licences under section 6(1)(d) of that Act as they apply

in relation to functions of the Secretary of State under Part 1 of that Act.’.

Consequential provision

Gregory Barker

NC16


To move the following Clause:—

‘(1)
The Utilities Act 2000 is amended as follows.

(2)
In section 33 (standard conditions of electricity licences), in subsection (1)(f),

omit “76 or”.

(3)
In section 81 (standard conditions of gas licences), in subsection (2), for “or under

Chapter 1 of Part 1 or section 76 or 98 of the Energy Act 2011” substitute “, under

Chapter 1 of Part 1 or section 98 of the Energy Act 2011 or under section [Power

to modify energy supply licences: domestic supply contracts] of the Energy Act

2013”.

(4)
In the Energy Act 2011, sections 76 to 78 (power to modify energy supply

licences: information about tariffs) are repealed.’.

Powers to alter activities requiring licence: activities related to supply contracts

Gregory Barker

NC17


To move the following Clause:—

‘(1)
In section 41C of the Gas Act 1986 (power to alter activities requiring licence),

after subsection (4) insert—



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