House of Commons Amendments

Session 2012 - 13
Internet Publications
Other Bills before Parliament

145

House of Commons

Thursday 7 February 2013

Public Bill Committee

New Amendments handed in are marked thus

Amendments which will comply with the required notice period at their next appearance

Energy Bill

Note

The Amendments have been arranged in accordance with the Order of the

Committee [15 January].

Mr John Hayes

99

Clause  124,  page  94,  line  37,  after ‘paragraphs’ insert ‘16(3),’.

Gregory Barker

133

Clause  125,  page  95,  line  19,  at end insert—

‘( )
sections [Power to modify energy supply licences: domestic supply

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

supply contracts]: procedure etc], [General duties of Secretary of State]

and [Consequential provision] (domestic tariffs: modifications of energy

supply licences);

( )
section [Powers to alter activities requiring licence: activities related to

supply contracts].’.

Public Bill Committee: 7 February 2013
146

Energy Bill, continued

New Clauses

Decarbonisation target range

Mr John Hayes

NC8

To move the following Clause:—

‘(1)
It is the duty of the Secretary of State to ensure, in respect of each year in relation

to which a decarbonisation target range is set, that the carbon intensity of

electricity generation in Great Britain is no greater than the maximum permitted

level of the decarbonisation target range.

(2)
The Secretary of State may by order (“a decarbonisation order”) set or amend a

decarbonisation target range in relation to a year.

(3)
A “decarbonisation target range”, in relation to any year, means a range for the

carbon intensity of electricity generation in Great Britain.

(4)
Section [Meaning and calculation of “carbon intensity of electricity generation

in Great Britain”] makes further provision in relation to subsection (3).

(5)
The earliest year in relation to which a decarbonisation target range may be set is

2030; and the first decarbonisation order may not be made before the date on

which the carbon budget for the budgetary period which includes the year 2030

is set by virtue of the duty of the Secretary of State under section 4(2)(b) of the

Climate Change Act 2008.

(6)
A decarbonisation order may amend a decarbonisation target range only if it

appears to the Secretary of State that significant changes affecting the basis on

which the decarbonisation target range was set (or previously amended) make it

appropriate to do so.

(7)
The Secretary of State may not revoke a decarbonisation order unless, in respect

of each year in relation to which the order sets a decarbonisation target range, a

decarbonisation target range remains in effect.

(8)
A decarbonisation order may—

(a)
amend section 23(4) of the Climate Change Act 2008 (alteration of

budgetary periods) so that after “Act” there is inserted “or sections

[Decarbonisation target range] to [Meaning and calculation of “carbon

intensity of electricity generation in Great Britain”] of the Energy Act

2013”;

(b)
repeal section 5 of the Energy Act 2010 (reports on decarbonisation and

CCS progress).

(9)
Provision made by virtue of subsection (8) may also—

(a)
include incidental, supplementary and consequential provision;

(b)
make transitory or transitional provision or savings.

(10)
A decarbonisation order is to be made by statutory instrument and a statutory

instrument containing a decarbonisation 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.

(11)
Before laying before Parliament a draft of a statutory instrument containing a

decarbonisation order the Secretary of State must consult the Scottish Ministers

and the Welsh Ministers.’.

Public Bill Committee: 7 February 2013
147

Energy Bill, continued

Matters to be taken into account

Mr John Hayes

NC9

To move the following Clause:—

‘(1)
The following matters must be taken into account by the Secretary of State in

setting or amending a decarbonisation target range.

(2)
The matters are—

(a)
scientific knowledge about climate change;

(b)
technology relevant to the generation and storage of electricity and to the

demand for and use of electricity;

(c)
economic circumstances, and in particular the likely impact on the

economy and the competitiveness of particular sectors of the economy;

(d)
fiscal circumstances, and in particular the likely impact on taxation,

public spending and public borrowing;

(e)
social circumstances, and in particular the likely impact on fuel poverty;

(f)
the structure of the energy market in Great Britain;

(g)
differences in circumstances between England, Wales and Scotland;

(h)
circumstances at European and international level;

(i)
the duties of the Secretary of State under sections 1 and 4(1)(b) of the

Climate Change Act 2008 (carbon targets and budgets).’.

Further duties of the Secretary of State

Mr John Hayes

NC10

To move the following Clause:—

‘(1)
As soon as is reasonably practicable after a decarbonisation order is made, the

Secretary of State must lay before Parliament a report setting out proposals and

policies for fulfilling the duty in section [Decarbonisation target range](1).

(2)
Before laying the report under subsection (1), the Secretary of State must consult

the Scottish Ministers and the Welsh Ministers; and the Secretary of State must

send a copy of the report to them.

(3)
The Secretary of State must in respect of each year—

(a)
beginning with the year after the first year in which a decarbonisation

order is made, and

(b)
ending with the final year in relation to which a decarbonisation target

range is set,


lay before Parliament a statement of the carbon intensity of electricity generation

in Great Britain in relation to that year.

(4)
Section [Meaning and calculation of “carbon intensity of electricity generation

in Great Britain”] makes further provision in relation to subsection (3).

(5)
The statement must include—

(a)
a summary of the means by which the carbon intensity was calculated;

(b)
in any statement after the first, a declaration of whether the carbon

intensity has decreased or increased since the previous statement.

Public Bill Committee: 7 February 2013
148

Energy Bill, continued

(6)
In respect of any year in relation to which a decarbonisation target range is set,

the statement must also include—

(a)
a declaration that the carbon intensity in relation to that year was no

greater than the maximum permitted level of the decarbonisation target

range, or

(b)
the reasons why the carbon intensity in relation to that year was greater

than the maximum permitted level of the decarbonisation target range.

(7)
The statement required by subsection (3) must be laid before Parliament not later

than the 31st March in the second year following the year in respect of which the

carbon intensity is being stated.

(8)
The Secretary of State must send a copy of the statement required by subsection

(3) to the Scottish Ministers and the Welsh Ministers.’.

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.

Public Bill Committee: 7 February 2013
149

Energy Bill, continued

(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.’.

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).’.

Public Bill Committee: 7 February 2013
150

Energy Bill, continued

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.

(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;

Public Bill Committee: 7 February 2013
151

Energy Bill, continued

(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;

(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);



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