House of Commons Amendments

Session 2012 - 13
Internet Publications
Other Bills before Parliament

201

House of Commons

Monday 3 June 2013

Consideration of Bill

Energy Bill, As Amended

Note

The Amendments have been arranged in accordance with the Energy Bill

(Programme (No.2)) Motion to be proposed by Secretary Edward Davey.

New Clauses and new schedules relating to electricity market reform,

other than any relating to electricity demand reduction, AMENDMENTS TO

PART 2, OTHER THAN AMENDMENTS 1, 10, 34 TO 47, 51 AND 100, new CLAUSES AND NEW

SCHEDULES RELATING TO NUCLEAR REGULATION, AMENDMENTS TO PART 3,

AMENDMENTS TO PART 5 AND AMENDMENTS TO CLAUSES 121 TO 125

Power to make capacity market rules

Secretary Edward Davey

NC8

To move the following Clause:—

‘(1)
The Secretary of State may make capacity market rules which, subject to

subsection (2), may contain any provision that may be made by electricity

capacity regulations.

(2)
Capacity market rules may not make—

(a)
provision falling within—

(i)
section 21(3);

(ii)
section 22(3);

(iii)
paragraphs (f) or (g) of section 22(4);

(iv)
section 22(5)(a);

(v)
paragraphs (b), (c), (d) or (f) of section 23(2);

(vi)
section 24;

(vii)
section [Provision about electricity demand reduction];

(b)
provision for the Secretary of State to require a person to provide

information or advice to the Secretary of State.

(3)
Electricity capacity regulations may make provision to confer on the Authority,

to such extent and subject to such conditions as may be specified in the

regulations, the power to make capacity market rules.

Consideration of Bill: 3 June 2013
202

Energy Bill, continued

(4)
The conditions may in particular include conditions about consultation; and

provision made by virtue of subsection (3) must provide that, before any exercise

of the power to make capacity market rules, the Authority must consult—

(a)
any person who is a holder of a licence to supply electricity under section

6(1)(d) of EA 1989;

(b)
any person who is a capacity provider.

(5)
Provision made by virtue of subsection (3) may include provision—

(a)
for the reference to the Secretary of State in section 27(2)(c) to have

effect, for the purposes of capacity market rules and to such extent as may

be specified in the regulations, as a reference to the Authority;

(b)
for section 27(3) to apply in relation to a disclosure required by virtue of

the capacity market rules.’.

Capacity market rules: procedure

Secretary Edward Davey

NC9

To move the following Clause:—

‘(1)
Before the first exercise by the Secretary of State of the power to make capacity

market rules, the Secretary of State must lay a draft of the rules before Parliament.

(2)
If, within the 40-day period, either House of Parliament resolves not to approve

the draft, the Secretary of State may not take any further steps in relation to the

proposed rules.

(3)
If no such resolution is made within that period, the Secretary of State may make

the rules in the form of the draft.

(4)
Subsection (3) does not prevent a new draft of proposed capacity market rules

being laid before Parliament.

(5)
In this section “40-day period”, in relation to a draft of proposed capacity market

rules, means the period of 40 days beginning with the day on which the draft is

laid before Parliament (or, if it is not laid before each House of Parliament on the

same day, the later of the 2 days on which it is laid).

(6)
For the purposes of calculating the 40-day period, no account is to be taken of any

period during which Parliament is dissolved or prorogued or during which both

Houses are adjourned for more than 4 days.

(7)
Before any exercise by the Secretary of State of a power to make capacity market

rules, the Secretary of State must consult—

(a)
the Authority;

(b)
any person who is a holder of a licence to supply electricity under section

6(1)(d) of EA 1989;

(c)
any person who is a capacity provider;

(d)
such other persons as the Secretary of State considers it appropriate to

consult.

(8)
In relation to any exercise by the Secretary of State or the Authority of a power

to make capacity market rules, the person making the rules must, as soon as

Consideration of Bill: 3 June 2013
203

Energy Bill, continued

reasonably practicable after they are made, lay them before Parliament and

publish them.’.

Capacity market rules: further provision

Secretary Edward Davey

NC10

To move the following Clause:—

‘(1)
Capacity market rules 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.

(2)
A power to make capacity market rules includes a power to amend, add to or

remove capacity market rules (and a person exercising such a power may amend,

add to or remove provision in capacity market rules made by another person).

(3)
But subsection (2) is subject to provision made by electricity capacity

regulations.’.

Nuclear regulations: civil liability

Secretary Edward Davey

NC13

To move the following Clause:—

‘(1)
Nuclear regulations may provide for breach of a relevant nuclear duty to be

actionable (whether or not they also provide for it to be an offence).

(2)
Except so far as nuclear regulations provide, any such breach does not give rise

to a claim for breach of statutory duty.

(3)
Nuclear regulations may provide for—

(a)
defences in relation to any action for breach of a relevant nuclear duty;

(b)
any term of an agreement which purports to exclude or restrict liability

for breach of a relevant nuclear duty to be void.

(4)
For this purpose “relevant nuclear duty” means a duty imposed by—

(a)
nuclear regulations, or

(b)
any provision of, or made under, the Nuclear Installations Act 1965 that

is a relevant statutory provision.

(5)
Nothing in this section affects any right of action or defence which otherwise

exists or may be available.’.

Consideration of Bill: 3 June 2013
204

Energy Bill, continued

Civil liability: saving for section 12 of the Nuclear Installations Act 1965

Secretary Edward Davey

NC14

To move the following Clause:—

‘Nothing in this Part affects the operation of section 12 of the Nuclear

Installations Act 1965 (right to compensation by virtue of certain provisions of

that Act).’.

Expert panel

Martin Horwood

Joan Walley

Caroline Lucas

Mr Mike Weir

Andrew Stunell

NC5

To move the following Clause:—

‘Schedule [The Expert Panel] has effect.’.

Electricity cost for consumers

Mr Christopher Chope

Mr Edward Leigh

NC15

To move the following Clause:—

‘No duty imposed upon the Secretary by this Act shall apply if the consequence

of the exercise of that duty is to raise the cost of electricity for consumers.’.

Martin Horwood

Joan Walley

Caroline Lucas

Mr Mike Weir

Andrew Stunell

NS1

To move the following Schedule:—

‘The Expert Panel

1
Regulations shall establish a panel of experts (in this Act referred to as “the

Expert Panel”) in accordance with paragraphs (2) to (6) below.

Consideration of Bill: 3 June 2013
205

Energy Bill, continued

Duty to consult

2    (1)
Regulations made by virtue of paragraph 1 shall provide that before—

(a)
any contracts for differences are entered into under Part 1; or

(b)
any investment contracts are entered into under Schedule 3


the Secretary of State shall seek advice from, and the opinion of, the Expert

Panel in relation to the matters specified in sub-paragraph (2) below.

      (2)
The matters in relation to which advice and opinion is to be sought from the

Expert Panel are—

(a)
any advice provided to the Secretary of State by the national system

operator;

(b)
the financial and other terms on which it is proposed a contract for

difference or an investment contract be entered into;

(c)
whether the agreed strike price (or equivalent) and the term of the

contract represents value for money for consumers; and

(d)
whether, in all the circumstances, it is appropriate for the CFD

Counterparty to enter into the relevant contract.

      (3)
Where the Secretary of State proposes to disregard in whole or in part any of

the advice or opinion provided by the Expert Panel, he shall be under a duty to

ensure the Expert Panel is provided with his reasons for disregarding or

disagreeing with the advice or opinion and place a copy of the reasoning in the

Library of the House.

3
Regulations made by virtue of paragraph 1 shall also—

      (1)
provide that it shall be the duty of the Secretary of State and the national

system operator to provide the Expert Panel with all such information as it may

require;

      (2)
require the Expert Panel to provide the Authority and Parliament with details

of any advice and opinion provided under this Part;

      (3)
require the Expert Panel to publish minutes of its meetings; and

      (4)
permit the Expert Panel to publish such information as the Expert Panel thinks

fit about the advice it gives.

Membership etc. of the Expert Panel

4
The members of the Expert Panel shall be appointed by the Secretary of State

and shall comprise a Chairman, a consumer representative, a representative of

the Committee on Climate Change, a representative of the Authority and such

other members as the Secretary of State may decide.

5    (1)
In appointing persons to be members of the Expert Panel, the Secretary of State

must secure, so far as practicable, that the Expert Panel—

(a)
is independent; and

(b)
is comprised of technical, academic, economic, legal and such other

experts necessary to give the informed advice required.

      (2)
The Expert Panel must not include any person who is—

(a)
employed by an eligible generator, or who has been employed by an

eligible generator in the previous 12 months;

(b)
employed by an electricity supplier, or who has been employed by an

electricity supplier in the previous 12 months; or

(c)
employed by the national system operator.

      (3)
The Chairman and every member of the Expert Panel—

(a)
shall be appointed for a fixed period, specified in the terms of their

appointment, but shall be eligible for reappointment at the end of that

period;

Consideration of Bill: 3 June 2013
206

Energy Bill, continued

(b)
shall not serve on the Expert Panel for longer than eight years in total;

(c)
may at any time be removed by a notice from the Expert Panel to the

Secretary of State following a majority vote.

Committees and other procedures of the Expert Panel

6
The Expert Panel may make such arrangements as they think fit—

(a)
for committees established by the Expert Panel to give advice to it

about carrying out the Expert Panel’s functions, providing such

committees only include persons who are members of the Expert

Panel;

(b)
for regulating its own procedure and for regulating the procedure of

committees established by them, including timescales of giving

advice, as it sees fit;

(c)
as to quorums and the making of decisions by majority.’.

Chris Heaton-Harris

162

Clause  5,  page  4,  line  42,  at end add ‘with predominating weight given to (2)(c) the

cost to consumers.’.

Secretary Edward Davey

52

Clause  5,  page  5,  line  10,  at end insert—

‘(4)
The Secretary of State must before 31st December in each year, beginning with

2014, prepare and lay before Parliament a report setting out how the Secretary of

State has carried out during the year the functions under this Part of this Act.

(5)
The Secretary of State must publish the report and send a copy of it to the

Department of Enterprise, Trade and Investment, the Scottish Ministers and the

Welsh Ministers.’.

Chris Heaton-Harris

163

Clause  6,  page  5,  line  21,  at end insert—

‘(c)
which is a public document and will be made available, together with all

related documents, by the Secretary of State and the parties to the

contract.’.

Caroline Lucas

Martin Caton

Martin Horwood

23

Clause  6,  page  5,  line  28,  at end insert ‘, with the exception of electricity generated

from nuclear power stations’.

Consideration of Bill: 3 June 2013
207

Energy Bill, continued

Sir Nick Harvey

Caroline Lucas

Kelvin Hopkins

Mr John Leech

Martin Caton

Stephen McPartland

Mr Andrew Smith

Sheila Gilmore

32

Clause  6,  page  5,  line  29,  at end insert—

‘ “Biomass” means fuel used in a generating station where—

‘(a)
at least 90 per cent of its energy content is derived from relevant material

(that is to say, material which is, or is derived directly or indirectly from,

plant matter, animal matter, funghi or algae), and

(b)
if fossil fuel forms part of it—

(i)
the fossil fuel is present following a process—

(aa)
to which the relevant material has been subject, and

(bb)
the undertaking of which has caused the fossil fuel to be

present in, on or with that material even though that was

not the object of the process; or

(ii)
it is waste and the fossil fuel forming part of it was not added to

it with a view to its being used as a fuel.


“Qualifying combined heat and power generating station”means a

combined heat and power generating station which has been accredited

under the CHPQA.’

Secretary Edward Davey

53

Clause  7,  page  6,  line  15,  at beginning insert ‘The Secretary of State may exercise

the power to designate so that’.

Secretary Edward Davey

54

Clause  7,  page  6,  line  15,  leave out ‘may have’ and insert ‘has’.

Secretary Edward Davey

55

Clause  7,  page  6,  line  15,  at end insert ‘, but only if the Secretary of State considers

it necessary for the purpose of ensuring that—

(a)
liabilities under a CFD are met,

(b)
arrangements entered into for purposes connected to a CFD continue to

operate, or

(c)
directions given to a CFD counterparty continue to have effect.’.

Secretary Edward Davey

56

Clause  7,  page  6,  line  20,  leave out ‘28 days’’ and insert ‘3 months’’.



© Parliamentary copyright	Revised 3 June 2013