Energy Bill

House of Commons

Session 2013 - 14
Internet Publications
Other Bills before Parliament

Lords Amendments to the Energy Bill

LORDS amendments to the
Energy Bill
[The page and line references are to HL Bill 30, the bill as first printed for the Lords.]
Clause 1
1
Page 1, line 6, leave out “Great Britain” and insert “the United Kingdom”
2
Page 1, line 11, leave out “Great Britain” and insert “the United Kingdom”
3
Page 2, line 27, after “consult” insert “the Department of Enterprise, Trade and

Investment,”
Clause 2
4
Page 2, line 42, leave out “Great Britain” and insert “the United Kingdom”
5
Page 2, line 43, leave out “and Scotland” and insert “, Scotland and Northern

Ireland”
Clause 3
6
Page 3, line 6, after “consult” insert “the Department of Enterprise, Trade and

Investment,”
7
Page 3, line 14, leave out “Great Britain” and insert “the United Kingdom”
8
Page 3, line 31, after “to” insert “the Department of Enterprise, Trade and

Investment,”
Clause 4
9
Page 3, line 34, leave out “Great Britain” and insert “the United Kingdom”
10
Page 3, line 36, leave out “Great Britain” and insert “the United Kingdom”
11
Page 3, line 43, leave out “Great Britain” and insert “the United Kingdom”
12
Page 3, line 44, leave out “Great Britain” and insert “the United Kingdom”

2
13
Page 4, line 10, leave out “Great Britain” and insert “the United Kingdom”
14
Page 4, line 11, leave out “Great Britain” and insert “the United Kingdom”
15
Page 4, line 26, after “consult” insert “the Department of Enterprise, Trade and

Investment,”
Clause 6
16
Page 5, line 29, at end insert “or (CFD notification: offer to contract on standard terms)”
17
Page 6, line 6, leave out subsection (8) and insert—

“(8)
An instrument containing regulations of any of the following kinds may

not be made unless a draft of the instrument has been laid before, and

approved by a resolution of, each House of Parliament (in each case,

whether or not the regulations also make other provision)—

(a)
the first regulations which make provision falling within each of the

following—

(i)
section (CFD notification: offer to contract on standard terms);

(ii)
section (Modification of standard terms);

(iii)
section 13;

(iv)
section 14;

(b)
regulations which make provision falling within—

(i)
section 9;

(ii)
section 10;

(iii)
section (CFD notifications);

(iv)
section (Allocation of CFDs);

(v)
section 11;

(vi)
section 12;

(vii)
section 15;

(viii)
section 16;

(ix)
section 17.”
18
Page 6, line 11, at end insert—

“( )
If, but for this subsection, an instrument containing regulations would be

treated for the purposes of the standing orders of either House of

Parliament as a hybrid instrument, it is to proceed in that House as if it

were not a hybrid instrument.”
Clause 8
19
Page 7, line 7, leave out “or the national system operator”
Clause 9
20
Page 8, line 11, leave out from beginning to end of line 13 and insert—

“( )
Any sum which—

(a)
an electricity supplier is required by virtue of regulations to pay to

a”
21
Page 8, line 16, at end insert—

3


“may be recovered from the electricity supplier by the CFD counterparty as

a civil debt due to it.”
Clause 10
22
Page 8, line 24, leave out “or the national system operator”
23
Page 8, line 30, leave out “a direction under this section” and insert “this Chapter”
24
Page 8, line 41, leave out subsection (6)
After Clause 10
25
Insert the following new Clause—

“Standard terms

(1)
The Secretary of State may issue standard terms and conditions of CFDs

(“standard terms”).

(2)
The Secretary of State may from time to time revise standard terms.

(3)
Standard terms issued or revised under this section must be in accordance

with provision made in regulations.

(4)
In issuing or revising standard terms the Secretary of State must have

regard to the matters mentioned in section 5(2).

(5)
The Secretary of State must publish standard terms as issued or revised

under this section.

(6)
In publishing standard terms the Secretary of State may designate

particular standard terms as terms that may not be modified under section

(Modification of standard terms).

(7)
Different standard terms may be issued for different categories of CFD.”
26
Insert the following new Clause—

“CFD notifications

(1)
The national system operator may, in accordance with provision made by

regulations, give a notification to a CFD counterparty (a “CFD

notification”) specifying—

(a)
an eligible generator, and

(b)
such other information as may be required for the purpose of

making an offer under section (CFD notification: offer to contract) to

contract with that generator.

(2)
A CFD notification must not be given if regulations made by virtue of

section 17 prevent the giving of the notification.

(3)
Regulations may make further provision about CFD notifications and in

particular provision about—

(a)
the circumstances in which a CFD notification may or must be

given;

(b)
the kinds of information mentioned in subsection (1)(b) that must

be specified in a CFD notification;

4

(c)
appeals against decisions not to give CFD notifications.

(4)
A CFD notification may not be given by virtue of regulations under this

section in relation to an electricity generating station in Northern Ireland

unless the Department of Enterprise, Trade and Investment consent to the

CFD notification.

(5)
But regulations may, with the consent of that Department, include

provision for circumstances in which consent under subsection (4) is not

required.

(6)
In subsection (4) “Northern Ireland” includes so much of the internal

waters and territorial sea of the United Kingdom as are adjacent to

Northern Ireland.”
27
Insert the following new Clause—

“Allocation of CFDs

(1)
Provision that may be included in regulations by virtue of section (CFD

notifications) includes in particular provision about how CFDs are to be

allocated to eligible generators (and for this purpose a CFD is “allocated”

to a generator if the generator is specified in a CFD notification).

(2)
Provision made by virtue of subsection (1) may include provision—

(a)
conferring power on the Secretary of State to make rules (an

“allocation framework”) about how CFDs are to be allocated;

(b)
for different periods within which CFDs are to be allocated

(“allocation rounds”);

(c)
for different allocation frameworks to apply in respect of different

allocation rounds;

(d)
for the publication of allocation frameworks;

(e)
about matters in relation to which provision may or must be made

in an allocation framework.

(3)
Provision made by regulations by virtue of subsection (2) may impose

requirements on the Secretary of State, including in particular—

(a)
requirements as to the giving of notice before an allocation round is

commenced;

(b)
restrictions on the circumstances in which amendments may be

made during an allocation round to an allocation framework or to

any other matter relevant to an allocation round (including any

amount by reference to which a limit on the CFDs allocated during

the round is to be determined).

(4)
An allocation framework may—

(a)
confer functions on the national system operator with respect to the

allocation of CFDs;

(b)
specify targets to be met or taken into account by the national

system operator in giving CFD notifications by virtue of section

(CFD notifications), including targets relating to—

(i)
the means by which electricity is generated;

(ii)
the generating capacity of electricity generating stations;

(iii)
the geographical location of electricity generating stations;

(c)
make any provision that may be made by regulations by virtue of

subsection (3).

5

(5)
An allocation framework may include provision for—

(a)
the determination of a matter on a competitive basis;

(b)
calculations or determinations to be made under the framework,

including 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 framework.

(6)
An allocation framework may—

(a)
include incidental, supplementary and consequential provision;

(b)
make transitory or transitional provision and savings;

(c)
make different provision for different cases or circumstances or for

different purposes;

(d)
make provision subject to exceptions.

(7)
Any power conferred by virtue of subsection (2) to make an allocation

framework includes a power to amend, add to or remove an allocation

framework.

(8)
Subsections (4) to (7) are subject to any provision contained in regulations.”
28
Insert the following new Clause—

“CFD notification: offer to contract on standard terms

(1)
Where a CFD notification is given to a CFD counterparty under section

(CFD notifications), the CFD counterparty must, in accordance with

provision made by regulations, offer to contract with the eligible generator

specified in the notification on—

(a)
standard terms, or

(b)
standard terms as modified in accordance with any modification

agreement entered into between the CFD counterparty and the

eligible generator for the purposes of the CFD notification (see

section (Modification of standard terms)).

(2)
Regulations may make further provision about an offer to contract made

under this section, including provision about—

(a)
how a CFD counterparty is to apply or complete standard terms in

relation to the offer in accordance with information specified in a

CFD notification;

(b)
the time within which the offer must be made;

(c)
how the eligible generator to whom it is made may enter into a CFD

as a result of the offer;

(d)
what is to happen if the eligible generator does not enter into a CFD

as a result of it.

(3)
In this section, “standard terms”, in relation to a CFD notification, means

standard terms published under section (Standard terms), determined in

accordance with regulations as the standard terms that are to apply in

relation to the CFD notification.”
29
Insert the following new Clause—

“Modification of standard terms

(1)
This section applies where a person wishes to be specified as an eligible

generator in a CFD notification (“the potential CFD notification”).

6

(2)
A CFD counterparty and the person may, in accordance with provision

made by regulations, agree to modify standard terms for the purposes of

any offer that would be required under section (CFD notification: offer to

contract on standard terms) if the potential CFD notification is given (a

“modification agreement”).

(3)
A CFD counterparty may enter into a modification agreement providing

for the modification of any particular standard term only if—

(a)
the CFD counterparty is satisfied that—

(i)
the effect of the modification is minor, and

(ii)
the modification is necessary; and

(b)
the standard term has not been designated under section (Standard

terms) as a term that may not be modified under this section.

(4)
Regulations may make further provision about modification agreements,

including—

(a)
the circumstances in which a person may make an application for a

modification agreement;

(b)
the time by which an application must be made;

(c)
the procedure to be followed, and the information to be given, by

the person in making an application;

(d)
how a CFD counterparty is to determine an application (including

how it is to determine whether the effect of a modification is minor

and whether it is necessary);

(e)
the time by which determinations must be made;

(f)
the form of modification agreements.

(5)
Provision made by virtue of subsection (4)(d) may include provision under

which the CFD counterparty may make alternative proposals for

modifications in response to an application.

(6)
In this section “modify” includes add to, alter or omit, and “modification”

is to be read accordingly.”
30
Insert the following new Clause—

“Sections (CFD notifications) to (Modification of standard terms): further

provision

Provision made by regulations by virtue of any of sections (CFD

notifications) to (Modification of standard terms) may include provision for—

(a)
the determination of a matter on a competitive basis;

(b)
calculations or determinations to be made under the regulations,

including 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.”
Clause 15
31
Page 11, line 10, at end insert—

“( )
the determination of an application for a modification agreement

under section (Modification of standard terms);”