Energy Bill

House of Commons

Session 2013 - 14
Internet Publications
Other Bills before Parliament

Energy Bill

Energy Bill
Part 6 — Consumer Protection and Miscellaneous
Chapter 2 — Miscellaneous
96

Consumer redress orders
126
Consumer redress orders
Schedule 14 (which enables the Authority to impose requirements on a
regulated person to take remedial action in respect of loss, damage or
inconvenience caused to consumers of gas or electricity) has effect.
5
Chapter 2
Miscellaneous
Offshore transmission
127
Offshore transmission systems
(1)
EA 1989 is amended as follows.
10
(2)
In section 4 (prohibition on unlicensed supply), after subsection (3A) insert—
“(3AA)
Subsection (3A) is subject to section 6F (offshore transmission during
commissioning period).”
(3)
After section 6E insert—
“6F
Offshore transmission during commissioning period
15
(1)
For the purposes of this Part a person is not to be regarded as
participating in the transmission of electricity if the following four
conditions are met.
(2)
The first condition is that the transmission takes place over an offshore
transmission system (“the system”) or anything forming part of it.
20
(3)
The second condition is that the transmission takes place during a
commissioning period (see section 6G).
(4)
The third condition is that—
(a)
a request has been made to the Authority in accordance with the
tender regulations for a tender exercise to be held for the
25
granting of an offshore transmission licence in respect of the
system,
(b)
the Authority has determined in accordance with those
regulations that the request relates to a qualifying project, and
(c)
the system, or anything forming part of it, has not been
30
transferred as a result of the exercise to the successful bidder.
(5)
The fourth condition is that—
(a)
the person who is the developer in relation to the tender
exercise is also the operator of a relevant generating station, and
(b)
the construction or installation of the system is being or has
35
been carried out by or on behalf of, or by or on behalf of a
combination of, any of the following—
(i)
the person mentioned in paragraph (a);
(ii)
a body corporate associated with that person at any time
during the period of construction or installation;
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Part 6 — Consumer Protection and Miscellaneous
Chapter 2 — Miscellaneous
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(iii)
a previous developer;
(iv)
a body corporate associated with a previous developer
at any time during the period of construction or
installation.
(6)
For the purposes of subsection (1), it does not matter whether or not the
5
person mentioned in that subsection is the developer in relation to the
tender exercise.
(7)
For the purposes of subsection (5)(b)(iii) and (iv), a person is a
“previous developer” in relation to the system if—
(a)
the person does not fall within subsection (5)(a), but
10
(b)
at any time during the period of construction or installation, the
person was the developer in relation to the tender exercise.
(8)
In this section—
“associated”, in relation to a body corporate, is to be construed in
accordance with paragraph 37 of Schedule 2A;
15
“developer”, in relation to a tender exercise, means any person
within section 6D(2)(a) (person who makes the connection
request, including any person who is to be so treated by virtue
of section 6D(4));
“offshore transmission” has the meaning given by section 6C(6);
20
“offshore transmission licence” has the meaning given by section
6C(5);
“offshore transmission system” means a transmission system used
for purposes connected with offshore transmission;
“operator”, in relation to a generating station, means the person
25
who is authorised to generate electricity from that station—
(a)
by a generation licence granted under section 6(1)(a), or
(b)
in accordance with an exemption granted under section
5(1);
“qualifying project” is to be construed in accordance with the
30
tender regulations;
“successful bidder” and “tender exercise” have the same meanings
as in section 6D;
“relevant generating station”, in relation to an offshore
transmission system, means a generating station that generates
35
electricity transmitted over the system;
“the tender regulations” means regulations made under section
6C.
6G
Section 6F: meaning of “commissioning period”
(1)
For the purposes of section 6F(3), transmission over an offshore
40
transmission system (or anything forming part of it) takes place during
a “commissioning period” if it takes place at any time—
(a)
before a completion notice is given in respect of the system, or
(b)
during the period of 18 months beginning with the day on
which such a notice is given.
45
(2)
A “completion notice”, in relation to a transmission system, is a notice
which—

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Part 6 — Consumer Protection and Miscellaneous
Chapter 2 — Miscellaneous
98

(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)
The Secretary of State may by order amend subsection (1) so as to
5
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 127 of the
Energy Act 2013 comes into force, and
10
(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)
but for the making of the order, the person participating in the
15
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
which the order is made.
20
(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
paragraph 13(4) of Schedule 2A.
25
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)
modify an agreement that gives effect to a code so maintained.
30
(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
power to make incidental, supplemental, consequential or transitional
35
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
consultation after, the passing of the Energy Act 2013.
40
(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
Authority considers appropriate for the purpose of bringing the
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Chapter 2 — Miscellaneous
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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 127 of the
Energy Act 2013 comes into force.”
5
(4)
In section 64 (interpretation of Part 1), in subsection (1B) at the end insert “and
section 6F”.
Fees
128
Fees for services provided for energy resilience purposes
(1)
The Secretary of State may require fees to be paid for services or facilities
10
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
15
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
20
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
25
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
30
specified in, or determined by or in accordance with, a direction given under
subsection (3)(b).
129
Fees in respect of decommissioning and clean-up of nuclear sites
(1)
Chapter 1 of Part 3 of the Energy Act 2008 (nuclear sites: decommissioning and
clean-up) is amended as follows.
35
(2)
After section 45 (duty to submit funded decommissioning programme)
insert—
“45A
Costs incurred in considering proposed programmes
(1)
A person who informs the Secretary of State of a proposal to submit a
funded decommissioning programme under section 45 must pay to the
40
Secretary of State such fee as may be determined in accordance with
regulations under section 54, in respect of the costs mentioned in

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subsection (2), at a time determined in accordance with such
regulations.
(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
5
it.”
(3)
In 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
10
as may be determined in accordance with regulations under section 54,
in 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,
15
the costs of obtaining advice in relation to the agreement or
amendment.”
(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
20
(b)
in subsection (4), in the opening words after “proposal” insert “(or the
making 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
25
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)
The regulations may, in particular, make provision about—
30
(a)
when the fee is to be paid;
(b)
how the amount of the fee is to be determined.”
Review
130
Review of certain provisions of Part 6
(1)
As soon as reasonably practicable after the end of the period of 5 years
35
beginning with the relevant commencement date, the Secretary of State must
carry out a review of—
(a)
section 126 and Schedule 14 (consumer redress orders);
(b)
section 129 (fees in respect of decommissioning etc).
(2)
The relevant commencement date—
40
(a)
in relation to section 126 and Schedule 14, is the date on which that
section and Schedule come into force;
(b)
in relation to section 129, is the date on which that section comes into
force.

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(3)
The 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
5
extent 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 7
Final
10
131
Interpretation 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;
15
“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.
20
(2)
A reference in this Act to—
(a)
the Department of Enterprise, Trade and Investment, or
(b)
the Department of Environment,

is to that Department in Northern Ireland.
132
Transfer schemes
25
(1)
This 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)
paragraph 16 of Schedule 2;
(c)
Schedule 3;
30
(d)
Schedule 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
35
of 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—
40
(a)
include incidental, supplementary and consequential provision;

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(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)
In the provisions mentioned in subsection (1), “subordinate legislation”
5
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)
an Act of the Scottish Parliament,
10
(ii)
an Act or Measure of the National Assembly for Wales, or
(iii)
Northern Ireland legislation.
133
Financial provisions
(1)
The following are to be paid out of money provided by Parliament—
(a)
any expenditure incurred by the Secretary of State by virtue of this Act;
15
(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 Secretary of State for the purposes of, or in connection with—
20
(a)
the establishment of a CFD counterparty;
(b)
making payments or providing financial assistance to a CFD
counterparty;
(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;
25
(d)
making payments or providing financial assistance to a person who is
a settlement body in relation to capacity agreements (see section
22(4)(g));
(e)
making payments or providing financial assistance to the national
system operator or an alternative delivery body in connection with the
30
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 arrangements made by, the Secretary of State; and such conditions may in
particular in the case of a grant include conditions for repayment in specified
35
circumstances.
(4)
In this section—
“alternative delivery body” and “EMR functions” have the same meaning
as in section 35;
“CFD counterparty” and “national system operator” have the same
40
meaning as in Chapter 2 of Part 2;
“financial assistance” means grants, loans, guarantees or indemnities, or
any other kind of financial assistance.