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| | The Amendments have been arranged in accordance with the Energy Bill |
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| | (Programme (No.2)) Motion to be proposed by Secretary Edward Davey. |
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| New Clauses and new schedules relating to electricity market reform, |
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| other than any relating to electricity demand reduction, AMENDMENTS TO |
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| PART 2, OTHER THAN AMENDMENTS 1, 10, 34 TO 47, 51 AND 100, new CLAUSES AND NEW |
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| SCHEDULES RELATING TO NUCLEAR REGULATION, AMENDMENTS TO PART 3, |
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| AMENDMENTS TO PART 5 AND AMENDMENTS TO CLAUSES 121 TO 125 |
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| | Power to make capacity market rules |
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| To move the following Clause:— |
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| | ‘(1) | The Secretary of State may make capacity market rules which, subject to |
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| | subsection (2), may contain any provision that may be made by electricity |
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| | (2) | Capacity market rules may not make— |
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| | (a) | provision falling within— |
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| | (iii) | paragraphs (f) or (g) of section 22(4); |
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| | (v) | paragraphs (b), (c), (d) or (f) of section 23(2); |
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| | (vii) | section [Provision about electricity demand reduction]; |
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| | (b) | provision for the Secretary of State to require a person to provide |
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| | information or advice to the Secretary of State. |
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| | (3) | Electricity capacity regulations may make provision to confer on the Authority, |
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| | to such extent and subject to such conditions as may be specified in the |
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| | regulations, the power to make capacity market rules. |
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| | (4) | The conditions may in particular include conditions about consultation; and |
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| | provision made by virtue of subsection (3) must provide that, before any exercise |
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| | of the power to make capacity market rules, the Authority must consult— |
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| | (a) | any person who is a holder of a licence to supply electricity under section |
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| | (b) | any person who is a capacity provider. |
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| | (5) | Provision made by virtue of subsection (3) may include provision— |
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| | (a) | for the reference to the Secretary of State in section 27(2)(c) to have |
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| | effect, for the purposes of capacity market rules and to such extent as may |
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| | be specified in the regulations, as a reference to the Authority; |
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| | (b) | for section 27(3) to apply in relation to a disclosure required by virtue of |
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| | the capacity market rules.’. |
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| | Capacity market rules: procedure |
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| To move the following Clause:— |
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| | ‘(1) | Before the first exercise by the Secretary of State of the power to make capacity |
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| | market rules, the Secretary of State must lay a draft of the rules before Parliament. |
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| | (2) | If, within the 40-day period, either House of Parliament resolves not to approve |
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| | the draft, the Secretary of State may not take any further steps in relation to the |
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| | (3) | If no such resolution is made within that period, the Secretary of State may make |
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| | the rules in the form of the draft. |
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| | (4) | Subsection (3) does not prevent a new draft of proposed capacity market rules |
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| | being laid before Parliament. |
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| | (5) | In this section “40-day period”, in relation to a draft of proposed capacity market |
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| | rules, means the period of 40 days beginning with the day on which the draft is |
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| | laid before Parliament (or, if it is not laid before each House of Parliament on the |
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| | same day, the later of the 2 days on which it is laid). |
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| | (6) | For the purposes of calculating the 40-day period, no account is to be taken of any |
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| | period during which Parliament is dissolved or prorogued or during which both |
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| | Houses are adjourned for more than 4 days. |
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| | (7) | Before any exercise by the Secretary of State of a power to make capacity market |
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| | rules, the Secretary of State must consult— |
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| | (b) | any person who is a holder of a licence to supply electricity under section |
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| | (c) | any person who is a capacity provider; |
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| | (d) | such other persons as the Secretary of State considers it appropriate to |
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| | (8) | In relation to any exercise by the Secretary of State or the Authority of a power |
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| | to make capacity market rules, the person making the rules must, as soon as |
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| | reasonably practicable after they are made, lay them before Parliament and |
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| | Capacity market rules: further provision |
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| To move the following Clause:— |
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| | ‘(1) | Capacity market rules may— |
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| | (a) | include incidental, supplementary and consequential provision; |
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| | (b) | make transitory or transitional provision or savings; |
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| | (c) | make different provision for different cases or circumstances or for |
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| | (d) | make provision subject to exceptions. |
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| | (2) | A power to make capacity market rules includes a power to amend, add to or |
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| | remove capacity market rules (and a person exercising such a power may amend, |
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| | add to or remove provision in capacity market rules made by another person). |
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| | (3) | But subsection (2) is subject to provision made by electricity capacity |
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| | Nuclear regulations: civil liability |
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| To move the following Clause:— |
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| | ‘(1) | Nuclear regulations may provide for breach of a relevant nuclear duty to be |
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| | actionable (whether or not they also provide for it to be an offence). |
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| | (2) | Except so far as nuclear regulations provide, any such breach does not give rise |
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| | to a claim for breach of statutory duty. |
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| | (3) | Nuclear regulations may provide for— |
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| | (a) | defences in relation to any action for breach of a relevant nuclear duty; |
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| | (b) | any term of an agreement which purports to exclude or restrict liability |
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| | for breach of a relevant nuclear duty to be void. |
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| | (4) | For this purpose “relevant nuclear duty” means a duty imposed by— |
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| | (a) | nuclear regulations, or |
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| | (b) | any provision of, or made under, the Nuclear Installations Act 1965 that |
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| | is a relevant statutory provision. |
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| | (5) | Nothing in this section affects any right of action or defence which otherwise |
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| | exists or may be available.’. |
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| | Civil liability: saving for section 12 of the Nuclear Installations Act 1965 |
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| To move the following Clause:— |
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| | ‘Nothing in this Part affects the operation of section 12 of the Nuclear |
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| | Installations Act 1965 (right to compensation by virtue of certain provisions of |
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| To move the following Clause:— |
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| | ‘Schedule [The Expert Panel] has effect.’. |
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| | Electricity cost for consumers |
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| To move the following Clause:— |
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| | ‘No duty imposed upon the Secretary by this Act shall apply if the consequence |
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| | of the exercise of that duty is to raise the cost of electricity for consumers.’. |
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| To move the following Schedule:— |
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| | 1 | Regulations shall establish a panel of experts (in this Act referred to as “the |
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| | Expert Panel”) in accordance with paragraphs (2) to (6) below. |
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| | 2 (1) | Regulations made by virtue of paragraph 1 shall provide that before— |
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| | (a) | any contracts for differences are entered into under Part 1; or |
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| | (b) | any investment contracts are entered into under Schedule 3 |
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| | | the Secretary of State shall seek advice from, and the opinion of, the Expert |
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| | Panel in relation to the matters specified in sub-paragraph (2) below. |
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| | (2) | The matters in relation to which advice and opinion is to be sought from the |
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| | (a) | any advice provided to the Secretary of State by the national system |
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| | (b) | the financial and other terms on which it is proposed a contract for |
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| | difference or an investment contract be entered into; |
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| | (c) | whether the agreed strike price (or equivalent) and the term of the |
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| | contract represents value for money for consumers; and |
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| | (d) | whether, in all the circumstances, it is appropriate for the CFD |
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| | Counterparty to enter into the relevant contract. |
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| | (3) | Where the Secretary of State proposes to disregard in whole or in part any of |
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| | the advice or opinion provided by the Expert Panel, he shall be under a duty to |
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| | ensure the Expert Panel is provided with his reasons for disregarding or |
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| | disagreeing with the advice or opinion and place a copy of the reasoning in the |
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| | 3 | Regulations made by virtue of paragraph 1 shall also— |
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| | (1) | provide that it shall be the duty of the Secretary of State and the national |
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| | system operator to provide the Expert Panel with all such information as it may |
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| | (2) | require the Expert Panel to provide the Authority and Parliament with details |
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| | of any advice and opinion provided under this Part; |
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| | (3) | require the Expert Panel to publish minutes of its meetings; and |
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| | (4) | permit the Expert Panel to publish such information as the Expert Panel thinks |
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| | fit about the advice it gives. |
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| | Membership etc. of the Expert Panel |
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| | 4 | The members of the Expert Panel shall be appointed by the Secretary of State |
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| | and shall comprise a Chairman, a consumer representative, a representative of |
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| | the Committee on Climate Change, a representative of the Authority and such |
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| | other members as the Secretary of State may decide. |
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| | 5 (1) | In appointing persons to be members of the Expert Panel, the Secretary of State |
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| | must secure, so far as practicable, that the Expert Panel— |
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| | (b) | is comprised of technical, academic, economic, legal and such other |
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| | experts necessary to give the informed advice required. |
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| | (2) | The Expert Panel must not include any person who is— |
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| | (a) | employed by an eligible generator, or who has been employed by an |
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| | eligible generator in the previous 12 months; |
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| | (b) | employed by an electricity supplier, or who has been employed by an |
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| | electricity supplier in the previous 12 months; or |
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| | (c) | employed by the national system operator. |
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| | (3) | The Chairman and every member of the Expert Panel— |
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| | (a) | shall be appointed for a fixed period, specified in the terms of their |
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| | appointment, but shall be eligible for reappointment at the end of that |
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| | (b) | shall not serve on the Expert Panel for longer than eight years in total; |
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| | (c) | may at any time be removed by a notice from the Expert Panel to the |
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| | Secretary of State following a majority vote. |
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| | Committees and other procedures of the Expert Panel |
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| | 6 | The Expert Panel may make such arrangements as they think fit— |
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| | (a) | for committees established by the Expert Panel to give advice to it |
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| | about carrying out the Expert Panel’s functions, providing such |
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| | committees only include persons who are members of the Expert |
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| | (b) | for regulating its own procedure and for regulating the procedure of |
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| | committees established by them, including timescales of giving |
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| | (c) | as to quorums and the making of decisions by majority.’. |
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| Clause 5, page 4, line 42, at end add ‘with predominating weight given to (2)(c) the |
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| Clause 5, page 5, line 10, at end insert— |
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| | ‘(4) | The Secretary of State must before 31st December in each year, beginning with |
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| | 2014, prepare and lay before Parliament a report setting out how the Secretary of |
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| | State has carried out during the year the functions under this Part of this Act. |
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| | (5) | The Secretary of State must publish the report and send a copy of it to the |
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| | Department of Enterprise, Trade and Investment, the Scottish Ministers and the |
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| Clause 6, page 5, line 21, at end insert— |
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| | ‘(c) | which is a public document and will be made available, together with all |
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| | related documents, by the Secretary of State and the parties to the |
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| Clause 6, page 5, line 28, at end insert ‘, with the exception of electricity generated |
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| from nuclear power stations’. |
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| Clause 6, page 5, line 29, at end insert—
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| ‘ “Biomass” means fuel used in a generating station where— |
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| | ‘(a) | at least 90 per cent of its energy content is derived from relevant material |
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| | (that is to say, material which is, or is derived directly or indirectly from, |
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| | plant matter, animal matter, funghi or algae), and |
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| | (b) | if fossil fuel forms part of it— |
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| | (i) | the fossil fuel is present following a process— |
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| | (aa) | to which the relevant material has been subject, and |
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| | (bb) | the undertaking of which has caused the fossil fuel to be |
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| | present in, on or with that material even though that was |
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| | not the object of the process; or |
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| | (ii) | it is waste and the fossil fuel forming part of it was not added to |
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| | it with a view to its being used as a fuel. |
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| | | “Qualifying combined heat and power generating station”means a |
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| | combined heat and power generating station which has been accredited |
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| Clause 7, page 6, line 15, at beginning insert ‘The Secretary of State may exercise |
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| the power to designate so that’. |
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| Clause 7, page 6, line 15, leave out ‘may have’ and insert ‘has’. |
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| Clause 7, page 6, line 15, at end insert ‘, but only if the Secretary of State considers |
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| it necessary for the purpose of ensuring that— |
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| | (a) | liabilities under a CFD are met, |
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| | (b) | arrangements entered into for purposes connected to a CFD continue to |
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| | (c) | directions given to a CFD counterparty continue to have effect.’. |
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| Clause 7, page 6, line 20, leave out ‘28 days’’ and insert ‘3 months’’. |
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