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Public Bill Committee: 5 February 2013                  

136

 

Energy Bill, continued

 
 

“(4A)    

For the purposes of subsection (4), activities connected with the supply

 

of gas include the following activities, whether or not carried on by a

 

person supplying gas—

 

(a)    

giving advice, information or assistance in relation to contracts

 

for the supply of gas to persons who are or may become

 

customers under such contracts, and

 

(b)    

the provision of any other services to such persons in connection

 

with such contracts.”

 

(2)    

In section 56A of EA 1989 (power to alter activities requiring licence), after

 

subsection (4) insert—

 

“(4A)    

For the purposes of subsection (4), activities connected with the supply

 

of electricity include the following activities, whether or not carried on

 

by a person supplying electricity—

 

(a)    

giving advice, information or assistance in relation to contracts

 

for the supply of electricity to persons who are or may become

 

customers under such contracts, and

 

(b)    

providing any other services to such persons in connection with

 

such contracts.” ’.

 


 

Payment of winter fuel allowance to pensioners off the gas grid

 

Mr Mike Weir

 

NC1

 

To move the following Clause:—

 

‘Regulations shall be made to allow the payment of Winter Fuel Allowance

 

payable under the Social Fund Winter Fuel Payment Regulations 2000 (SI 2000/

 

729) to eligible persons whose main residences are not connected to the mains gas

 

grid and whose principle source of fuel is home fuel oil, liquid petroleum gas or

 

propane gas, no later than 30 September in each calendar year.’.

 


 

Strategic reserve

 

Dr Alan Whitehead

 

NC2

 

To move the following Clause:—

 

‘(1)    

The Secretary of State may by regulation introduce a system of strategic reserve

 

of supply if he determines that the expense of maintaining a capacity market is

 

detrimental to the continuing interests of either—

 

(a)    

security of supply, or

 

(b)    

energy customers.

 

(2)    

The Secretary of State may by regulation designate a nominated person to hold

 

and manage the strategic reserve on his behalf (“the Strategic Reserve Operator”).

 

(3)    

A person is eligible to be designated if the person is—


 
 

Public Bill Committee: 5 February 2013                  

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Energy Bill, continued

 
 

(a)    

a company formal and registered under the Companies Act 2006, or

 

(b)    

a public authority, including any person whose functions are of a public

 

nature.

 

(4)    

The Strategic Reserve Operator must contract with the System Operator for the

 

circumstances under which the Strategic Reserve Operator supplies power to the

 

System Operator.

 

(5)    

The Secretary of State must approve the drawing up of any contract between the

 

System Operator and the Strategic Reserve Operator and may from time to time

 

vary the terms of the contract should circumstances require.

 

(6)    

The Secretary of State must lay before Parliament a reasoned case for any change

 

of content under subsection (5).

 

(7)    

Strategic Reserve regulations may make provision for payments to be made by

 

electricity suppliers or capacity providers to a settlement body (see section

 

18(4)(g)) for the purposes of enabling the body—

 

(a)    

to meet such descriptions of its costs that the Secretary of State considers

 

appropriate;

 

(b)    

to hold sums in reserve;

 

(c)    

to make payments to the Strategic Reserve Operator for the purpose of

 

securing and operating strategic reserve capacity.’.

 


 

Electricity efficiency incentives

 

Dr Alan Whitehead

 

Zac Goldsmith

 

Peter Aldous

 

NC3

 

To move the following Clause:—

 

‘(1)    

The Secretary of State must within one year of the passing of this Act make

 

regulations establishing a scheme or schemes to make payments for the purpose

 

of rewarding the installation of electricity saving measures.

 

(2)    

Prior to the making of regulations under this section, the Secretary of State must

 

publish a report setting out the total potential for electricity demand reduction and

 

the extent to which this potential will be achieved by Government policies

 

including—

 

(a)    

the scheme or schemes; and

 

(b)    

other relevant programmes, regulation or expenditure.

 

(3)    

Regulations under this section must—

 

(a)    

specify the parties from and to whom payments may be made;

 

(b)    

make provision about the calculation of such payments;

 

(c)    

make provision about—

 

(i)    

the level;

 

(ii)    

the type;

 

(iii)    

the frequency; or

 

(iv)    

the duration;

 

    

of such payments, which may differ according to the measures installed

 

or the parties from or to whom payments are made;


 
 

Public Bill Committee: 5 February 2013                  

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Energy Bill, continued

 
 

(d)    

make provision about the monitoring, verification and calculation of

 

electricity savings.

 

(4)    

For the purposes of this section, electricity saving measures are defined as

 

measures which achieve permanent and verifiable saving of electricity, which is

 

their primary purpose.’.

 


 

Market access for independent renewable generators

 

Dr Alan Whitehead

 

NC4

 

To move the following Clause:—

 

“‘( )    

The Secretary of State must exercise the powers conferred by this Chapter so as

 

to establish an auction market (the “green power auction market”) in which

 

generators are entitled to offer, and holders of supply licences are entitled to bid

 

for, electricity generated from renewable sources.

 

( )    

The Secretary of State must exercise those powers, and take such other steps

 

(including the exercise of any other power conferred by or under a provision of

 

this Part) as the Secretary of State considers necessary, for the purpose of

 

ensuring that—

 

(a)    

the green power auction market begins to operate when the first CFD is

 

made and does not cease to operate until expiry of the last CFD that has

 

been made; and

 

(b)    

the reference price under a CFD entered into by a generator who is a party

 

to an agreement made through the green power auction market is based

 

on the price payable to the generator under that agreement.

 

( )    

In this section—

 

“CFD” means a contract for difference as specified in subsection 2(a) and

 

(b);

 

“supply licence” means a licence under section 6(1)(d) of EA 1989.’.

 


 

Delivery plan for 2030 decarbonisation

 

Dr Alan Whitehead

 

Caroline Flint

 

Tom Greatrex

 

Luciana Berger

 

NC5

 

To move the following Clause:—

 

‘(1)    

The Secretary of State must lay and publish the first delivery plan for meeting the

 

2030 target as soon as is reasonably practicable after the designation of the

 

Strategy and Policy Statement.

 

(2)    

Updated delivery plans must then be laid and published every five years after the

 

date on which the previous delivery plan was laid.

 

(3)    

Each delivery plan must set out in respect of the period to which it relates—


 
 

Public Bill Committee: 5 February 2013                  

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Energy Bill, continued

 
 

(a)    

the policies and procedure to be adopted in order to achieve the 2030

 

target and any interim targets;

 

(b)    

the impacts which the policies and procedures are expected to have;

 

(c)    

the expected generating capacity including—

 

(i)    

electricity generated from renewable sources; and

 

(ii)    

other low carbon electricity.

 

(4)    

The policies and procedures referred to in subsection (3)(a) shall include policies

 

to reduce demand for electricity.

 

(5)    

The impacts referred to in subsection (3)(b) shall include in particular the impact

 

on—

 

(a)    

electricity bills including the impact of—

 

(i)    

electricity generated from renewable sources, and

 

(ii)    

other low carbon electricity;

 

(b)    

fuel poverty and low income households;

 

(c)    

the economy;

 

(d)    

the security of supply of electricity and gas to consumers.

 

(6)    

Prior to laying the delivery plan the Secretary of State must—

 

(a)    

obtain, and take into account, the advice of the Committee on Climate

 

Change,

 

(b)    

subject to subsection (7), take into account any representations made by

 

the other national authorities, and

 

(c)    

carry out a public consultation.

 

(7)    

Subsection (6)(b) shall not prevent the Secretary of State from laying the delivery

 

plan where representations are made by a national authority after the relevant

 

date.

 

(8)    

The Committee must, at the time it gives the advice to the Secretary of State—

 

(a)    

send a copy of the advice to the other national authorities; and

 

(b)    

publish the advice.

 

(9)    

At the same time as laying the delivery plan the Secretary of State must lay and

 

publish a statement setting out how the order or delivery plan takes account of—

 

(a)    

the advice of the Committee;

 

(b)    

any representations made by the other national authorities; and

 

(c)    

any responses to the public consultation.

 

(10)    

The Secretary of State shall prepare an annual report which sets out the progress

 

made in respect of the matters set out in the delivery plan.

 

(11)    

The Secretary of State shall each year within 30 days of the anniversary of the

 

date on which the last delivery plan was laid—

 

(a)    

lay the annul report before Parliament, and

 

(b)    

publish the report.

 

(12)    

An order under this section is subject to the affirmative resolution procedure.

 

(13)    

If at any time it appears that a delivery plan will or may not achieve the 2030

 

target, or any of the interim targets, the delivery plan shall be amended so as to

 

achieve the 2030 target and the interim targets.

 

(14)    

For the purposes of this section—

 

“affirmative resolution procedure” has the meaning given in section 91 of

 

the Climate Change Act 2008;

 

“national authorities” has the meaning given in section 95 of the 2008 Act;

 

“relevant date” means the date three months after the day on which the

 

advice of the Committee was sent to the national authority; and


 
 

Public Bill Committee: 5 February 2013                  

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Energy Bill, continued

 
 

“the 2030 target” shall be defined as a target for decarbonisation of

 

electricity supply in the United Kingdom which when taken in aggregate

 

produces electricity at a level of carbon dioxide of 50g/kWh or less by 1

 

January 2030.’.

 


 

Cheapest tariff

 

Tom Greatrex

 

Luciana Berger

 

NC6

 

To move the following Clause:—

 

‘A company supplying electricity, gas or heating oil to a domestic customer shall,

 

at least annually, inform the customer of the cheapest tariff available to that

 

customer (based on that customer’s current method of payment and usage during

 

the previous 12 month period) and move the customer to that tariff if that

 

customer is aged 75 or over.’.

 


 

Extension or operation of renewable energy in Wales

 

Albert Owen

 

Owen Smith

 

NC7

 

To move the following Clause:—

 

‘Notwithstanding any existing legislation, Welsh Ministers shall have the power

 

to grant consent for the construction, extension or operation of renewable energy

 

generation up to 100MW on both sea and land in Wales.’.

 


 


 

Mr John Hayes

 

Gregory Barker

 

135

 

Parliamentary Star    

Title,  line  8,  leave out ‘further fees in respect of nuclear decommissioning costs’ and

 

insert ‘fees in connection with certain costs incurred by the Secretary of State; about

 

domestic supplies of gas and electricity; for extending categories of activities for which

 

energy licences are required’.

 

Mr John Hayes

 

134

 

Parliamentary Star    

Title,  line  1,  after ‘provision,’ insert ‘for the setting of a decarbonisation target range and


 
 

Public Bill Committee: 5 February 2013                  

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Energy Bill, continued

 
 

duties in relation to it;’.

 

 

Order of the House [19 DecEMBER 2012]

 

That the following provisions shall apply to the Energy Bill:

 

Committal

 

1.    

The Bill shall be committed to a Public Bill Committee.

 

Proceedings in Public Bill Committee

 

2.    

Proceedings in the Public Bill Committee shall (so far as not previously

 

concluded) be brought to a conclusion on Tuesday 12 February 2013.

 

3.    

The Public Bill Committee shall have leave to sit twice on the first day on

 

which it meets.

 

Consideration and Third Reading

 

4.    

Proceedings on Consideration shall (so far as not previously concluded) be

 

brought to a conclusion one hour before the moment of interruption on the

 

day on which those proceedings are commenced.

 

5.    

Proceedings on Third Reading shall (so far as not previously concluded) be

 

brought to a conclusion at the moment of interruption on that day.

 

6.    

Standing Order No. 83B (Programming committees) shall not apply to

 

proceedings on Consideration and Third Reading.

 

Other proceedings

 

7.    

Any other proceedings on the Bill (including any proceedings on

 

consideration of Lords Amendments or on any further messages from the

 

Lords) may be programmed.

 

 

Order of the Committee [15 January]

 

That—

 

(1)  

the Committee shall (in addition to its first meeting at 8.55 am on Tuesday 15

 

January) meet—

 

(a)  

at 2.00 pm on Tuesday 15 January;

 

(b)  

at 11.30 am and 2.00 pm on Thursday 17 January;

 

(c)  

at 8.55 am and 2.00 pm on Tuesday 22 January;

 

(d)  

at 11.30 am and 2.00 pm on Thursday 24 January;

 

(e)  

at 8.55 am and 2.00 pm on Tuesday 29 January;

 

(f)  

at 11.30 am and 2.00 pm on Thursday 31 January;

 

(g)  

at 8.55 am and 2.00 pm on Tuesday 5 February;

 

(h)  

at 11.30 am and 2.00 pm on Thursday 7 February;

 

(i)  

at 8.55 am and 2.00 pm on Tuesday 12 February;

 

(2)  

the Committee shall hear oral evidence in accordance with the following

 

Table:


 
 

Public Bill Committee: 5 February 2013                  

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Energy Bill, continued

 
 

      TABLE

 

Date

Time

Witness

 
 

Tuesday 15 January

Until no later than

Department of Energy

 
  

9.55 am

and Climate Change;

 
   

Ministry of Defence

 
 

Tuesday 15 January

Until no later than

National Grid; Scottish

 
  

11.00 am

Power; Centrica; E.ON

 
   

UK

 
 

Tuesday 15 January

Until no later than

The Office of Gas and

 
  

11.25 am

Electricity Markets

 
 

Tuesday 15 January

Until no later than

Confederation of British

 
  

2.45 pm

Industry; representative

 
   

from the Low Carbon

 
   

Finance Group

 
 

Tuesday 15 January

Until no later than

Renewable Energy

 
  

3.30 pm

Systems; DONG Energy;

 
   

Ecotricity

 
 

Tuesday 15 January

Until no later than

Cornwall Energy

 
  

4.15 pm

Associates Ltd; Professor

 
   

Catherine Mitchell,

 
   

University of Exeter;

 
   

Professor Dieter Helm

 
   

CBE, University of

 
   

Oxford

 
 

Tuesday 15 January

Until no later than

Vestas Wind Systems;

 
  

5.00 pm

SSE

 
 

Thursday 17 January

Until no later than

Committee on Climate

 
  

12.00 pm

Change

 
 

Thursday 17 January

Until no later than

Greenpeace; Friends of

 
  

12.45 pm

the Earth

 
 

Thursday 17 January

Until no later than

Safety Directors’ Forum;

 
  

3.00 pm

EDF Energy; Carbon

 
   

Capture and Storage

 
   

Association

 
 

Thursday 17 January

Until no later than

Consumer Focus;

 
  

4.00 pm

Institute for Public Policy

 
   

Research; Which?

 
 

Thursday 17 January

Until no later than

National Energy Action;

 
  

4.45 pm

GMB

 
 

Thursday 17 January

Until no later than

Combined Heat and

 
  

5.30 pm

Power Association;

 
   

Siemens; E3G

 
 

Thursday 17 January

Until no later than

RenewableUK

 
  

6.00 pm

  

 
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Revised 5 February 2013