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Consideration of Bill: 3 June 2013                     

208

 

Energy Bill, continued

 
 

Secretary Edward Davey

 

57

 

Clause  7,  page  6,  line  29,  leave out ‘obligations’ and insert ‘liabilities’.

 

 

Secretary Edward Davey

 

58

 

Clause  8,  page  6,  line  39,  at end insert—

 

‘(1A)    

A CFD counterparty must exercise the functions conferred by or by virtue of this

 

Chapter to ensure that it can meet its liabilities under any CFD to which it is a

 

party.’.

 

 

Secretary Edward Davey

 

59

 

Clause  9,  page  7,  line  13,  at end insert—

 

‘(2A)    

In subsection (2)(a) “costs” means costs in connection with the performance of

 

any function conferred by or by virtue of this Chapter.’.

 

Secretary Edward Davey

 

60

 

Clause  9,  page  7,  line  39,  at end insert—

 

‘(7A)    

A CFD counterparty may recover from an electricity supplier, as a civil debt due

 

to it, any sum which—

 

(a)    

the electricity supplier is required by virtue of regulations to pay to the

 

CFD counterparty, and

 

(b)    

has not been paid by the date on which it is required by virtue of

 

regulations to be paid.’.

 

 

Sir Nick Harvey

 

Caroline Lucas

 

Kelvin Hopkins

 

Mr John Leech

 

Martin Caton

 

Stephen McPartland

 

Mr Andrew Smith

 

Sheila Gilmore

 

33

 

Clause  10,  page  8,  line  28,  at end insert—

 

‘(10)    

A direction may not be given under this section to a fossil fuel or renewable

 

energy plant with a rated capacity of 15MW or greater that use any biomass

 

unless they are—

 

(a)    

a qualifying combined heat and power generating station; or

 
 

Consideration of Bill: 3 June 2013                     

209

 

Energy Bill, continued

 
 

(b)    

an operational carbon capture and storage plant.’.

 

 

Secretary Edward Davey

 

61

 

Clause  11,  page  8,  line  31,  at end insert—

 

‘(1A)    

Provision made by virtue of this section may—

 

(a)    

include provision for a CFD counterparty to calculate or determine, in

 

accordance with such criteria as may be provided for by or under the

 

regulations, amounts which are owed by the CFD counterparty;

 

(b)    

provide for anything which is to be calculated or determined under the

 

regulations to be calculated or determined by such persons, in accordance

 

with such procedure and by reference to such matters and to the opinion

 

of such persons, as may be specified in the regulations.’.

 

Caroline Lucas

 

Andrew George

 

Mark Durkan

 

Mr John Leech

 

Martin Caton

 

Mr Andrew Smith

 

Ms Margaret Ritchie

 

Martin Horwood

 

24

 

Clause  11,  page  8,  line  37,  at end insert—

 

‘(3)    

Payments offered under a contract for difference relating to the supply of

 

electricity generated by nuclear power must not exceed payments offered under

 

any contract for the supply of electricity from renewable sources.

 

(4)    

For the purposes of subsection (3)—

 

(a)    

the calculation of payments must include both the strike price and the

 

duration of the contract;

 

(b)    

renewable sources are defined in accordance with Article 2 of Directive

 

2009/28/EC of the European Parliament and of the Council of 23 April

 

2009 on the promotion of the use of energy from renewable sources.’.

 

 

Secretary Edward Davey

 

62

 

Clause  12,  page  9,  line  2,  leave out ‘obligations’ and insert ‘its liabilities’.

 

Secretary Edward Davey

 

63

 

Clause  12,  page  9,  line  4,  leave out ‘obligations’ and insert ‘its liabilities’.

 

Secretary Edward Davey

 

64

 

Clause  12,  page  9,  line  4,  at end insert—

 
 

Consideration of Bill: 3 June 2013                     

210

 

Energy Bill, continued

 
 

‘(2A)    

In making provision by virtue of subsection (1) the Secretary of State must have

 

regard to the principle that sums should be apportioned in proportion to the

 

amounts which are owed.’.

 

 

Secretary Edward Davey

 

65

 

Clause  15,  page  10,  line  21,  at end insert—

 

‘(3)    

Regulations must include such provision as the Secretary of State considers

 

necessary to ensure that a CFD counterparty can meet its liabilities under any

 

CFD to which it is a party.’.

 

 

Peter Aldous

 

152

 

Clause  17,  page  11,  line  6,  at end insert—

 

‘(2A)    

In determining for the purposes of an order under subsection (1) whether the

 

maximum cost provided for by the order has been reached, or a cost greater than

 

that maximum would be incurred, a cost is to be taken into account if, and only

 

if, it has been incurred, or is to be incurred, in connection with low carbon

 

electricity generation.

 

(2B)    

The Secretary of State may give a direction suspending the effect of an order

 

under subsection (1) for such period, and in relation to costs of such description,

 

as are specified in the direction.

 

(2C)    

Before giving a direction under subsection (2B) the Secretary of State must

 

consult such persons as the Secretary of State thinks appropriate.’.

 

 

Chris Heaton-Harris

 

164

 

Clause  18,  page  11,  line  33,  at end insert—

 

‘(i)    

All consumers of electricity upon whom the costs of the regulations will

 

fall.’.

 

Caroline Lucas

 

Andrew George

 

Mark Durkan

 

Mr John Leech

 

Martin Caton

 

Ms Margaret Ritchie

 

Martin Horwood

 

27

 

Clause  18,  page  11,  line  35,  at end insert—

 

‘(3)    

Before making regulations under this Chapter which relate to nuclear electricity

 

generation, the Secretary of State must ask the National Audit Office to carry out

 
 

Consideration of Bill: 3 June 2013                     

211

 

Energy Bill, continued

 
 

an examination of and produce a report on whether the terms of the contract for

 

difference offer value for money.

 

(4)    

The Secretary of State may ask the National Audit Office to carry out an

 

examination and produce a report on the terms of a contract relating to non-

 

nuclear generation.

 

(5)    

The National Audit Office report and recommendations must be published one

 

month before a contract is laid before Parliament.’.

 

 

Dr Alan Whitehead

 

48

 

Clause  21,  page  12,  line  40,  at end insert ‘capacity may be secured by capacity

 

auctions or by the establishment of a strategic reserve or by other means’.

 

 

Chris Heaton-Harris

 

165

 

Clause  22,  page  13,  line  15,  after ‘agreement’ insert, ‘is a public document to be

 

made available, together with all related documents, by the Secretary of State and the

 

parties to the agreement; and’.

 

Secretary Edward Davey

 

101

 

Clause  22,  page  13,  line  19,  leave out ‘to or’.

 

Secretary Edward Davey

 

102

 

Clause  22,  page  13,  line  21,  leave out ‘to or’.

 

Caroline Lucas

 

Martin Horwood

 

29

 

Clause  22,  page  13,  line  21,  at end insert—

 

‘(2A)    

Electricity capacity regulations may not make provision in respect of fossil fuel

 

plants.

 

(2B)    

For the purposes of subsection (2A) “fossil fuel plant” means an electricity

 

generating station which satisfies the conditions in Chapter 8, Section 42(4)(b).’.

 

Caroline Lucas

 

Martin Caton

 

Mr Andrew Smith

 

Martin Horwood

 

28

 

Clause  22,  page  13,  line  23,  at end insert—

 

‘(3A)    

Capacity agreements may not be made in respect of nuclear electricity

 

generation.’.

 
 

Consideration of Bill: 3 June 2013                     

212

 

Energy Bill, continued

 
 

Dr Alan Whitehead

 

49

 

Clause  22,  page  14,  line  6,  at end insert—

 

‘(e)    

conferring on the Secretary of State the power by regulation to introduce

 

a system of strategic reserve of supply; and

 

(f)    

conferring on The Secretary of State by regulation the power to designate

 

a nominated person to hold and manage the Strategic Reserve on his

 

behalf (“the Strategic Reserve Operator”).’.

 

Secretary Edward Davey

 

103

 

Clause  22,  page  14,  line  6,  at end insert—

 

‘(5A)    

Provision made by virtue of subsection (4)(f) and (g) may—

 

(a)    

include provision for a settlement body to calculate or determine, in

 

accordance with such criteria as may be provided for by or under the

 

regulations, amounts which are owed as capacity payments or capacity

 

incentives;

 

(b)    

provide for anything which is to be calculated or determined under the

 

regulations to be calculated or determined by such persons, in accordance

 

with such procedure and by reference to such matters and to the opinion

 

of such persons, as may be specified in the regulations.’.

 

Dr Alan Whitehead

 

50

 

Clause  22,  page  14,  line  9,  at end add—

 

‘(7)    

 

(a)    

A person is eligible to be designated as the Strategic Reserve Operator if

 

the person is—

 

(i)    

a company formal and registered under the Companies Act 2006;

 

or

 

(ii)    

a public authority, including any person whose functions are of a

 

public nature.

 

(b)    

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.

 

(c)    

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.

 

(d)    

The Secretary of State must lay before Parliament a reasoned case for any

 

change of content under subsection (5).

 

(e)    

Strategic Reserve regulations may make provision for payments to be

 

made by electricity suppliers or capacity providers to a settlement body

 

for the purposes of enabling the body—

 

(i)    

to meet such descriptions of its costs that the Secretary of State

 

considers appropriate;

 

(ii)    

to hold sums in reserve;

 

(iii)    

to make payments to the Strategic Reserve Operator for the

 

purpose of securing and operating Strategic Reserve capacity.’.

 

 
 

Consideration of Bill: 3 June 2013                     

213

 

Energy Bill, continued

 
 

Secretary Edward Davey

 

104

 

Clause  24,  page  15,  line  2,  at end insert—

 

‘(1A)    

In subsection (1)(a) “costs” means costs in connection with the performance of

 

any function conferred by or by virtue of this Chapter.’.

 

 

Chris Heaton-Harris

 

166

 

Clause  27,  page  15,  line  40,  leave out ‘may’ and insert ‘must’.

 

 

Secretary Edward Davey

 

105

 

Clause  28,  page  16,  line  19,  at end insert ‘or by capacity market rules.

 

(1A)    

Capacity market rules may make provision about the enforcement of any

 

obligation or requirement imposed by the rules.’.

 

Secretary Edward Davey

 

106

 

Clause  28,  page  16,  line  20,  after ‘regulations’ insert ‘or in capacity market rules’.

 

Secretary Edward Davey

 

107

 

Clause  28,  page  16,  line  25,  after ‘regulations’ insert ‘or under capacity market

 

rules’.

 

 

Mark Reckless

 

David T.C. Davies

 

Mr John Redwood

 

Mr David Nuttall

 

Mr Christopher Chope

 

Mr Edward Leigh

 

94

 

Page  23,  line  5,  leave out Clause 38.

 

Mr Christopher Chope

 

Mr Edward Leigh

 

151

 

Clause  38,  page  23,  line  34,  at end add—

 

‘(5)    

The Secretary of State may not exercise the power under subsection (1) if the

 

consequence would be to raise the price of electricity for consumers.’.

 

 
 

Consideration of Bill: 3 June 2013                     

214

 

Energy Bill, continued

 
 

Peter Aldous

 

153

 

Clause  41,  page  25,  leave out lines 35 to 42.

 

Peter Aldous

 

154

 

Clause  41,  page  27,  leave out lines 9 and 10.

 

Peter Aldous

 

156

 

Clause  41,  page  27,  line  14,  before ‘make’, insert ‘and insofar as subsection (12)

 

applies must,’.

 

Peter Aldous

 

155

 

Clause  41,  page  28,  line  17,  leave out ‘may’ and insert ‘must, so as to make good

 

the shortfall,’.

 

Peter Aldous

 

158

 

Clause  41,  page  29,  line  7,  leave out ‘(10)’ and insert ‘(9)’.

 

Peter Aldous

 

157

 

Clause  41,  page  29,  line  8,  leave out subsection (6).

 

Peter Aldous

 

159

 

Clause  41,  page  34,  leave out from line 8 to end of line 37 on page 35.

 

Peter Aldous

 

160

 

Clause  41,  page  36,  leave out from line 1 to end of line 46.

 

Chris Heaton-Harris

 

167

 

Clause  41,  page  36,  line  5,  leave out ‘the costs’ and insert ‘the publicly

 

substantiated costs’.

 

Chris Heaton-Harris

 

168

 

Clause  41,  page  36,  line  8,  leave out ‘the income’ and insert ‘the publicly

 

substantiated income’.

 

Chris Heaton-Harris

 

169

 

Clause  41,  page  36,  line  24,  at end insert—

 

‘(g)    

the costs to consumers’.

 

Peter Aldous

 

161

 

Clause  41,  page  37,  leave out lines 18 and 19.

 
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