House of Commons Amendments

Session 2012 - 13
Internet Publications
Other Bills before Parliament

Public Bill Committee: 7 February 2013
152

Energy Bill, continued

“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—

(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—

Public Bill Committee: 7 February 2013
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Energy Bill, continued

(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.’.

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

Public Bill Committee: 7 February 2013
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Energy Bill, continued

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—

“(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

Public Bill Committee: 7 February 2013
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Energy Bill, continued

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—

(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.’.

Public Bill Committee: 7 February 2013
156

Energy Bill, continued

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;

(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—

Public Bill Committee: 7 February 2013
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Energy Bill, continued

(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—

(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.

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Energy Bill, continued

(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

“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.’.



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