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Energy Bill (HC Bill 100)

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(a) is given to the Authority by the relevant co-ordination licence
holder in accordance with the co-ordination licence, and

(b) states that it would be possible to carry on an activity to which
section 4(1)(b) applies by making available for use that system.

(3) 5The Secretary of State may by order amend subsection (1) so as to
specify a period of 12 months in place of the period of 18 months.

(4) An order under subsection (3) may be made only so as to come into
force during the period—

(a) beginning 2 years after the day on which section 118 of the
10Energy Act 2013 comes into force, and

(b) ending 5 years after that day.

(5) An amendment made by an order under subsection (3) does not apply
in relation to any transmission of electricity over a transmission system
if—

(a) 15but for the making of the order, the person participating in the
transmission would, by virtue of section 6F, have been regarded
as not participating in the transmission, and

(b) the determination mentioned in subsection (4)(b) of that section
in relation to the system was made on or before the day on
20which the order is made.

(6) In this section—

  • “co-ordination licence” has the same meaning as in Schedule 2A
    (see paragraph 38(1) of that Schedule);

  • “relevant co-ordination licence-holder” has the meaning given by
    25paragraph 13(4) of Schedule 2A.

6H Sections 6F and 6G: modification of codes or agreements

(1) The Authority may—

(a) modify a code maintained in accordance with the conditions of
a transmission licence or a distribution licence;

(b) 30modify an agreement that gives effect to a code so maintained.

(2) The Authority may make a modification under subsection (1) only if it
considers it necessary or desirable for the purpose of implementing or
facilitating the operation of section 6F or 6G.

(3) The power to make modifications under subsection (1) includes a
35power to make incidental, supplemental, consequential or transitional
modifications.

(4) The Authority must consult such persons as the Authority considers
appropriate before making a modification under subsection (1).

(5) Subsection (4) may be satisfied by consultation before, as well as
40consultation after, the passing of the Energy Act 2013.

(6) As soon as reasonably practicable after making a modification under
subsection (1), the Authority must publish a notice stating its reasons
for making it.

(7) A notice under subsection (6) is to be published in such manner as the
45Authority considers appropriate for the purpose of bringing the

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matters to which the notice relates to the attention of persons likely to
be affected by it.

(8) A modification under subsection (1) may not be made after the end of
the period of 7 years beginning with the day on which section 118 of the
5Energy Act 2013 comes into force.

(4) In section 64 (interpretation of Part 1), in subsection (1B) at the end insert “and
section 6F”.

Nuclear decommissioning costs

119 Fees in respect of decommissioning and clean-up of nuclear sites

(1) 10Chapter 1 of Part 3 of the Energy Act 2008 (nuclear sites: decommissioning and
clean-up) is amended as follows.

(2) After section 45 (duty to submit funded decommissioning programme)
insert—

45A Costs incurred in considering proposed programmes

(1) 15A person who informs the Secretary of State of a proposal to submit a
funded decommissioning programme under section 45 must pay to the
Secretary of State such fee as may be determined in accordance with
regulations under section 54, in respect of the costs mentioned in
subsection (2), at a time determined in accordance with such
20regulations.

(2) The costs are those incurred by the Secretary of State in relation to the
consideration of the proposed programme (or any particular aspect of
it), including, in particular, the costs of obtaining advice in relation to
it.

(3) 25In section 46 (approval of programme), after subsection (3G) insert—

(3H) Where the Secretary of State makes or amends an agreement under
subsection (3A), or it is proposed that such an agreement be made or
amended, the site operator must pay to the Secretary of State such fee
as may be determined in accordance with regulations under section 54,
30in respect of the costs mentioned in subsection (3I), at a time
determined in accordance with such regulations.

(3I) The costs are those incurred by the Secretary of State in relation to the
consideration of the agreement or amendment, including, in particular,
the costs of obtaining advice in relation to the agreement or
35amendment.

(4) In section 49 (procedure for modifying approved programme)—

(a) in subsection (3), after “made,” insert “or advice is sought from the
Secretary of State about the making of a proposal,”, and

(b) in subsection (4), in the opening words after “proposal” insert “(or the
40making of a proposal)”.

(5) In section 66 (disposal of hazardous material), after subsection (3) insert—

(3A) The Secretary of State may make regulations providing for a person
who makes a proposal to the Secretary of State to enter an agreement of

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the kind mentioned in subsection (1), or proposes an amendment to
such an agreement, to pay a fee to the Secretary of State in respect of the
costs incurred in relation to the consideration of the proposal,
including, in particular, the costs of obtaining advice in relation to it.

(3B) 5The regulations may, in particular, make provision about—

(a) when the fee is to be paid;

(b) how the amount of the fee is to be determined.

Review

120 Review of Part 5

(1) 10As soon as reasonably practicable after the end of the period of 5 years
beginning with the relevant commencement date, the Secretary of State must
carry out a review of—

(a) section 117 and Schedule 14 (consumer redress orders);

(b) section 119 (fees in respect of decommissioning etc).

(2) 15The relevant commencement date—

(a) in relation to section 117 and Schedule 14, is the date on which that
section and Schedule come into force;

(b) in relation to section 119, is the date on which that section comes into
force.

(3) 20The Secretary of State must set out the conclusions of the review in a report.

(4) The report must, in particular—

(a) set out the objectives of the provisions subject to review,

(b) assess the extent to which those objectives have been achieved, and

(c) assess whether those objectives remain appropriate and, if so, the
25extent to which those objectives could be achieved in a way that
imposes less regulation.

(5) The Secretary of State must lay the report before Parliament.

Part 6 Final

121 30Interpretation of Act

(1) In this Act—

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

  • “EA 1989” means the Electricity Act 1989;

  • “functions” includes powers and duties;

  • 35“primary legislation” means—

    (a)

    an Act of Parliament,

    (b)

    an Act of the Scottish Parliament,

    (c)

    an Act or Measure of the National Assembly for Wales, or

    (d)

    Northern Ireland legislation.

(2) 40A reference in this Act to—

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(a) the Department of Enterprise, Trade and Investment, or

(b) the Department of Environment,

is to that Department in Northern Ireland.

122 Transfer schemes

(1) 5This section applies in relation to a scheme made by the Secretary of State
under any of the following provisions (a “transfer scheme”)—

(a) Schedule 1;

(b) Schedule 2;

(c) paragraph 16 of Schedule 3;

(d) 10Schedule 11;

(e) Schedule 13.

(2) Subject to subsection (3), the Secretary of State may modify a transfer scheme.

(3) If a transfer under the scheme has taken effect, any modification under
subsection (2) that relates to the transfer may be made only with the agreement
15of the person (or persons) affected by the modification.

(4) A modification takes effect from such date as the Secretary of State may
specify; and that date may be the date when the original scheme came into
effect.

(5) A transfer scheme may—

(a) 20include 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.

(6) 25In the provisions mentioned in subsection (1), “subordinate legislation”
means—

(a) subordinate legislation within the meaning of the Interpretation Act
1978 (see section 21(1) of that Act), or

(b) an instrument made under—

(i) 30an Act of the Scottish Parliament,

(ii) an Act or Measure of the National Assembly for Wales, or

(iii) Northern Ireland legislation.

123 Financial provisions

(1) The following are to be paid out of money provided by Parliament—

(a) 35any expenditure incurred by the Secretary of State by virtue of this Act;

(b) any expenditure incurred by the Authority by virtue of this Act;

(c) any increase attributable to this Act in the sums payable out of money so
provided under any other enactment.

(2) The expenditure referred to in subsection (1)(a) includes expenditure incurred by the
40Secretary of State for the purposes of, or in connection with—

(a) the establishment of a CFD counterparty;

(b) making payments or providing financial assistance to a CFD counterparty;

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(c) obtaining advice and assistance in relation to the exercise of functions
conferred on the Secretary of State by or by virtue of Chapter 2 or 3;

(d) making payments or providing financial assistance to a person who is a
settlement body in relation to capacity agreements (see section 18(4)(g));

(e) 5making payments or providing financial assistance to the national system
operator or an alternative delivery body in connection with the exercise of
EMR functions.

(3) Financial assistance or payments includes financial assistance or payments given
subject to such conditions as may be determined by, or in accordance with
10arrangements made by, the Secretary of State; and such conditions may in particular
in the case of a grant include conditions for repayment in specified circumstances.

(4) In this section

  • “alternative delivery body” and “EMR functions” have the same meaning as in
    section 30;

  • 15“CFD counterparty” and “national system operator” have the same meaning as
    in Chapter 2 of Part 1;

  • “financial assistance” means grants, loans, guarantees or indemnities, or any
    other kind of financial assistance.

124 Extent

(1) 20Subject to the rest of this section, this Act extends to England and Wales and
Scotland.

(2) The following also extend to Northern Ireland—

(a) in Part 1—

(i) Chapter 1 (general considerations),

(ii) 25Chapter 2 (contracts for difference),

(iii) Chapter 5 (investment contracts),

(iv) Chapter 7 (the renewables obligation: transitional
arrangements),

(v) Chapter 8 (emissions performance standard), and

(vi) 30section 43 (exemption from liability in damages);

(b) subject to subsections (4) and (5), Part 2 (nuclear regulation);

(c) this Part.

(3) Section 119 extends to England and Wales and Northern Ireland only.

(4) Part 2 of Schedule 8 extends to England and Wales and Scotland only.

(5) 35The amendments made by Schedule 12 have the same extent as the provisions
they amend, except that—

(a) paragraphs 18(6), 19(6), 20(2)(b) and (3) and 21 (amendments of certain
provisions of the Nuclear Installations Act 1965) extend to England and
Wales and Scotland only;

(b) 40the other amendments in that Schedule of the Nuclear Installations Act
1965 extend to England and Wales, Scotland and Northern Ireland
only;

(c) paragraphs 34 to 44 (amendments of the Nuclear Safeguards and
Electricity (Finance) Act 1978 and Nuclear Safeguards Act 2000) extend
45to England and Wales, Scotland and Northern Ireland only;

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(d) paragraphs 54 to 56 (amendments of the Radioactive Substances Act
1993) extend to Scotland only.

125 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)
and (3).

(2) The following provisions come into force at the end of the period of 2 months
beginning with the day on which this Act is passed—

(a) Chapter 4 of Part 1 (conflicts of interest and contingency
10arrangements);

(b) Chapter 6 of Part 1 (access to markets);

(c) Chapter 7 of Part 1 (renewables obligation: transitional arrangements);

(d) Chapter 8 of Part 1 (emissions performance standard);

(e) Part 4 (strategy and policy statement), other than section 116(1)
15(repeals);

(f) section 117 (consumer redress orders);

(g) section 118 (offshore transmission systems);

(h) section 119 (fees in respect of decommissioning and clean-up of nuclear
sites).

(3) 20The following provisions come into force on the day on which this Act is
passed—

(a) Chapter 1 of Part 1 (general considerations);

(b) Chapter 2 of Part 1 (contracts for difference);

(c) Chapter 3 of Part 1 (capacity market);

(d) 25Chapter 5 of Part 1 (investment contracts);

(e) Chapter 9 of Part 1 (miscellaneous);

(f) section 91 (subordinate legislation under Part 2);

(g) section 92(1) (power to make transitional provision in relation to Part
2);

(h) 30section 93 (transfer of staff etc for purposes of Part 2);

(i) section 94(2) (power to make consequential amendments in relation to
Part 2);

(j) section 96 (review of Part 2);

(k) section 120 (review of Part 5);

(l) 35the provisions of this Part (including this section).

(4) An order under subsection (1) may—

(a) appoint different days for different purposes;

(b) make transitional provision and savings.

126 Short title

40This Act may be cited as the Energy Act 2013.

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SCHEDULES

Section 3

SCHEDULE 1 CFD counterparties: transfer schemes

Power to make transfer schemes

1 (1) 5The Secretary of State may make one or more schemes for the transfer of
designated property, rights or liabilities of a person who has ceased to be a
CFD counterparty (“the transferor”) to a person who is a CFD counterparty
(“the transferee”).

(2) On the transfer date, the designated property, rights and liabilities are
10transferred and vest in accordance with the scheme.

(3) The rights and liabilities that may be transferred by a scheme include those
arising under or in connection with a contract of employment.

(4) A certificate by the Secretary of State that anything specified in the certificate
has vested in any person by virtue of a scheme is conclusive evidence for all
15purposes of that fact.

(5) In this Schedule—

  • “designated”, in relation to a scheme, means specified in or determined
    in accordance with the scheme;

  • “property” includes interests of any description;

  • 20“the transfer date” means a date specified by a scheme as the date on
    which the scheme is to have effect.

Contents of a scheme

2 (1) A scheme may make provision—

(a) for anything done by or in relation to the transferor in connection
25with any property, rights or liabilities transferred by the scheme to
be treated as done, or to be continued, by or in relation to the
transferee;

(b) for references to the transferor in any agreement (whether written or
not), instrument or other document relating to any property, rights
30or liabilities transferred by the scheme to be treated as references to
the transferee;

(c) about the continuation of legal proceedings;

(d) for transferring property, rights or liabilities which could not
otherwise be transferred or assigned;

(e) 35for transferring property, rights and liabilities irrespective of any
requirement for consent which would otherwise apply;

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(f) for preventing a right of pre-emption, right of reverter, right of
forfeiture, right to compensation or other similar right from arising
or becoming exercisable as a result of the transfer of property, rights
or liabilities;

(g) 5for dispensing with any formality in relation to the transfer of
property, rights or liabilities by the scheme;

(h) for transferring property acquired, or rights or liabilities arising,
after the scheme is made but before it takes effect;

(i) for apportioning property, rights or liabilities;

(j) 10for creating rights, or imposing liabilities, in connection with
property, rights or liabilities transferred by the scheme;

(k) for requiring the transferee to enter into any agreement of any kind,
or for a purpose, specified in or determined in accordance with the
scheme.

(2) 15Sub-paragraph (1)(b) does not apply to references in primary legislation or
in subordinate legislation.

Compensation

3 A scheme may contain provision for the payment of compensation by the
Secretary of State to any person whose interests are adversely affected by it.

Section 30

20SCHEDULE 2 Orders under section 30: transfer schemes

Power to make transfer schemes

1 (1) The Secretary of State may exercise the power in sub-paragraph (2) in
connection with the making of an order under section 30 providing for a
25person (“the transferee”) to carry out EMR functions in place of another
person (“the transferor”).

(2) The Secretary of State may make one or more schemes for the transfer of
designated property, rights or liabilities of the transferor to the transferee.

(3) On the transfer date, the designated property, rights and liabilities are
30transferred and vest in accordance with the scheme.

(4) The rights and liabilities that may be transferred by a scheme include those
arising under or in connection with a contract of employment.

(5) A certificate by the Secretary of State that anything specified in the certificate
has vested in any person by virtue of a scheme is conclusive evidence for all
35purposes of that fact.

(6) In this Schedule—

  • “designated”, in relation to a scheme, means specified in or determined
    in accordance with the scheme;

  • “EMR functions” has the same meaning as in section 30;

  • 40“property” includes interests of any description;

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  • “the transfer date” means a date specified by a scheme as the date on
    which the scheme is to have effect.

Contents of a scheme

2 (1) A scheme may make provision—

(a) 5for anything done by or in relation to the transferor in connection
with any property, rights or liabilities transferred by the scheme to
be treated as done, or to be continued, by or in relation to the
transferee;

(b) for references to the transferor in any agreement (whether written or
10not), instrument or other document relating to any property, rights
or liabilities transferred by the scheme to be treated as references to
the transferee;

(c) about the continuation of legal proceedings;

(d) for transferring property, rights or liabilities which could not
15otherwise be transferred or assigned;

(e) for transferring property, rights and liabilities irrespective of any
requirement for consent which would otherwise apply;

(f) for preventing a right of pre-emption, right of reverter, right of
forfeiture, right to compensation or other similar right from arising
20or becoming exercisable as a result of the transfer of property, rights
or liabilities;

(g) for dispensing with any formality in relation to the transfer of
property, rights or liabilities by the scheme;

(h) for transferring property acquired, or rights or liabilities arising,
25after the scheme is made but before it takes effect;

(i) for apportioning property, rights or liabilities;

(j) for creating rights, or imposing liabilities, in connection with
property, rights or liabilities transferred by the scheme;

(k) for requiring the transferee to enter into any agreement of any kind,
30or for a purpose, specified in or determined in accordance with the
scheme.

(2) Sub-paragraph (1)(b) does not apply to references in primary legislation or
in subordinate legislation.

Compensation

3 35A scheme must contain provision for the payment by the Secretary of State
of such amounts of compensation as the Secretary of State considers
appropriate to any person whose interests are adversely affected by it.

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Section 33

SCHEDULE 3 Investment contracts

Part 1 Introductory

5Meaning of “investment contract”

1 (1) In this Schedule an “investment contract” means a contract with an
electricity generator which—

(a) is entered into by the Secretary of State, whether before or after this
Schedule comes into force, on or before the earlier of 31st December
102015 and the date on which a definition of an “eligible generator”
first comes into force by virtue of section 6(3),

(b) if it relates to an electricity generating station in Northern Ireland, is
entered into with the consent of the Department of Enterprise, Trade
and Investment,

(c) 15includes an obligation for the parties to make payments under the
contract based on the difference between a strike price and a
reference price in relation to electricity generated,

(d) is laid before Parliament in accordance with sub-paragraph (4).

(2) If the contract is entered into before the coming into force of this Schedule,
20the obligation referred to in sub-paragraph (1)(c) must be conditional on the
being in force of this Schedule.

(3) In sub-paragraph (1)

  • “electricity generator” means—

    (a)

    a person who intends to establish an electricity generating
    25station or alter an existing station;

    (b)

    a person who intends to operate or participate in the
    operation of an electricity generating station that is to be
    established or altered;

    (c)

    a person who has an interest in a company falling within
    30paragraph (a) or (b).

  • “reference price” means the sum that is specified in, or determined
    under, the contract as the reference price in respect of electricity
    generated in the period specified in, or determined under, the
    contract;

  • 35“Northern Ireland” includes so much of the internal waters and
    territorial sea of the United Kingdom as are adjacent to Northern
    Ireland;

  • “strike price” means the sum that is specified in, or determined under,
    the contract as the strike price in respect of electricity generated in
    40the period specified in, or determined under, the contract.

(4) A contract is laid before Parliament in accordance with this sub-paragraph
if it is laid by the Secretary of State at any time after the introduction into
Parliament of the Bill that becomes this Act—

(a) with a statement falling within sub-paragraph (5), and

(b) 45after the Secretary of State has excluded from the contract—

(i) any confidential information (see paragraph 3), or