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Lords Amendments to the Energy Bill


 
 

7

 

Clause 17

32

Page 11, line 35, leave out “The Secretary of State may by order provide” and insert

 

“Regulations may make provision”

33

Page 11, line 36, leave out “direction under section 10” and insert “notification

 

under section (CFD notifications)”

34

Page 11, line 39, leave out “order” and insert “regulations”

35

Page 11, line 41, leave out “direction by virtue of this Chapter” and insert

 

“notification under that section”

36

Page 11, line 42, leave out “direction” and insert “notification”

37

Page 11, line 43, leave out “order” and insert “regulations”

38

Page 11, line 44, leave out paragraph (c)

39

Page 12, line 4, leave out “order” and insert “regulations”

40

Page 12, line 6, leave out “order” and insert “regulations”

41

Page 12, leave out lines 7 to 14

Clause 18

42

Page 12, line 16, leave out “or an order under section 17”

43

Page 12, line 29, at end insert—

 

“( )    

Before publishing standard terms under section (Standard terms) the

 

Secretary of State must consult such persons as the Secretary of State

 

considers it appropriate to consult.”

44

Page 12, line 30, leave out “The requirement” and insert “A requirement under this

 

section”

Clause 28

45

Page 18, line 7, at end insert—

 

“(4A)    

Provision made by virtue of subsection (3) must secure that capacity

 

market rules made by the Authority may not confer functions on the

 

Authority except with the consent of the Secretary of State.”

Clause 34

46

Page 20, line 22, leave out subsections (5) and (6) and insert—

 

“(5)    

Subject to subsection (6), an instrument containing (whether alone or with

 

other provision) regulations under this Chapter may not be made unless a

 

draft of the instrument has been laid before and approved by a resolution

 

of each House of Parliament.

 

(6)    

An instrument containing only regulations within subsection (7) is subject

 

to annulment in pursuance of a resolution of either House of Parliament.

 

(7)    

The regulations within this subsection are—

 

(a)    

electricity capacity regulations which—

 

(i)    

only make provision within section 27, and


 
 

8

 
 

(ii)    

are not the first set of electricity capacity regulations to

 

make such provision;

 

(b)    

regulations under section 32 which do not make provision

 

amending or repealing a provision of an enactment contained in

 

primary legislation.”

47

Page 20, line 30, at end insert—

 

“( )    

If, but for this subsection, an instrument containing electricity capacity

 

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 35

48

Page 21, line 15, at end insert—

 

“( )    

Subsection (7) may be satisfied by consultation before, as well as

 

consultation after, the passing of this Act.”

Clause 37

49

Page 21, line 38, at end insert—

 

    

“and such arrangements are referred to in this section as “a pilot scheme”.

 

(2)    

The Secretary of State must review the operation and effectiveness of any

 

pilot scheme.

 

(3)    

The Secretary of State must set out the results and conclusions of the review

 

in a report to Parliament—

 

(a)    

by laying a copy of the report before each House of Parliament, or

 

(b)    

if the Secretary of State determines that the report should be made

 

orally, by making a statement to the House of Parliament of which

 

that Secretary of State is a member.

 

(4)    

A report under subsection (3) must be made as soon as reasonably

 

practicable after the conclusion of the pilot scheme to which the report

 

relates.”

Clause 44

50

Page 27, line 40, leave out from “by” to end of line 2 on page 28 and insert “means

 

of a power purchase agreement scheme.

 

(3)    

For the purposes of this section and section (Power purchase agreement

 

scheme: regulations)

 

(a)    

a power purchase agreement scheme is a scheme established by

 

supply licence conditions and regulations under section (Power

 

purchase agreement scheme: regulations) for promoting the availability

 

to electricity generators of power purchase agreements, and

 

(b)    

“power purchase agreement” means an arrangement under which

 

a licensed supplier agrees to purchase electricity generated by an

 

electricity generator at a discount to a prevailing market price.

 

    

For this purpose, “supply licence condition” means any condition,

 

document or agreement of a kind mentioned in subsection (1).


 
 

9

 
 

(4)    

Provision that may be made under subsection (1) in relation to a power

 

purchase agreement scheme includes provision—

 

(a)    

as to the eligibility of an electricity generator to enter into a power

 

purchase agreement under the scheme;

 

(b)    

as to the terms of any power purchase agreement to be entered into

 

under the scheme, including provision—

 

(i)    

for determining the price at which electricity is to be

 

purchased under the agreement (including provision for

 

determining a market price and the amount of a discount at

 

any time);

 

(ii)    

as to the duration of any such agreement;

 

(c)    

as to the circumstances in which a licensed supplier is or may be

 

required or permitted to enter, or offer to enter, into a power

 

purchase agreement under the scheme;

 

(d)    

for the provision of information in connection with the scheme.

 

(5)    

Provision within subsection (4)(c) includes provision for determining

 

which licensed supplier or suppliers is or are to be required or permitted to

 

enter, or offer to enter, into a power purchase agreement with an electricity

 

generator in any particular case.

 

(6)    

Such provision may in particular include provision for the licensed

 

supplier or suppliers in question to be determined—

 

(a)    

by a process involving a determination or determinations by one or

 

more of the following—

 

(i)    

the Secretary of State;

 

(ii)    

the Authority;

 

(iii)    

the electricity generator;

 

(b)    

by auction or other competitive process;

 

    

and provision that may be made by virtue of paragraph (b) includes

 

provision as to the circumstances in which a licensed supplier is or may be

 

required or permitted to participate in an auction or other process.

 

(7)    

For the purposes of this section and section (Power purchase agreement

 

scheme: regulations), “licensed supplier” means the holder of a licence under

 

section 6(1)(d) of EA 1989.”

After Clause 44

51

Insert the following new Clause—

 

“Power purchase agreement scheme: regulations

 

(1)    

The Secretary of State may by regulations make provision, in connection

 

with any modifications made under section 44, for or in connection with a

 

power purchase agreement scheme.

 

(2)    

Any such regulations may in particular—

 

(a)    

make provision for apportioning amongst licensed suppliers, or

 

any of them, all or any part of the value of any or all of the costs or

 

benefits of any licensed supplier in connection with the scheme;

 

(b)    

confer functions on the Secretary of State or the Authority (which

 

may include provision for directions to be given to the Authority by

 

the Secretary of State);


 
 

10

 
 

(c)    

make provision for the delegation of functions conferred on the

 

Secretary of State or the Authority by the regulations or by virtue of

 

section 44;

 

(d)    

include provision for obligations imposed by the regulations on

 

licensed suppliers to be enforceable by the Authority as if they were

 

relevant requirements on a regulated person for the purposes of

 

section 25 of EA 1989;

 

(e)    

make provision about the provision of information in connection

 

with the scheme.

 

(3)    

Provision that may be included in regulations under this section by virtue

 

of subsection (2)(a) includes, in particular, provision—

 

(a)    

for requiring licensed suppliers to pay a levy to the Authority at

 

specified times;

 

(b)    

specifying how such a levy is to be calculated;

 

(c)    

conferring an entitlement on a licensed supplier to receive a

 

payment from the Authority.

 

(4)    

Provision which may be included in regulations by virtue of subsection (3)

 

includes provision for the Secretary of State or the Authority to determine

 

what is to be taken into account as a cost or benefit of any licensed supplier

 

in connection with the scheme and its value.

 

(5)    

Regulations under this section 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.

 

(6)    

Before making any regulations under this section, the Secretary of State

 

must consult—

 

(a)    

licensed suppliers,

 

(b)    

the Authority, and

 

(c)    

such other persons as the Secretary of State considers it appropriate

 

to consult.

 

(7)    

Subsection (6) may be satisfied by consultation before, as well as by

 

consultation after, the passing of this Act.

 

(8)    

Regulations under this section must be made by statutory instrument.

 

(9)    

An instrument containing regulations under this section is subject to

 

annulment in pursuance of a resolution of either House of Parliament.”

52

Insert the following new Clause—

 

“Power purchase agreement scheme: disclosure of information

 

In section 105 of the Utilities Act 2000 (general restrictions on disclosure of

 

information)—

 

(a)    

in subsection (1)(a), after “2010” insert “or section 44 or (Power

 

purchase agreement scheme: regulations) of the Energy Act 2013”;

 

(b)    

in subsection (3)(a), after “2010” insert “, section 44 or (Power

 

purchase agreement scheme: regulations) of the Energy Act 2013”.”

53

Insert the following new Clause—


 
 

11

 
 

“Principal objective and general duties: power purchase agreement scheme

 

Sections 3A to 3D of EA 1989 (principal objective and general duties) apply

 

in relation to functions of the Secretary of State or the Authority conferred

 

by or by virtue of section 44 or (Power purchase agreement scheme:

 

regulations), or section 45 so far as it relates to a power purchase agreement

 

scheme, as they apply in relation to functions under Part 1 of that Act.”

Before Clause 46

54

Insert the following new Clause—

 

“Closure of support under the renewables obligation

 

(1)    

After section 32L of EA 1989 insert—

 

“32LA

Renewables obligation closure order

 

(1)    

The Secretary of State may make a renewables obligation closure

 

order.

 

(2)    

A renewables obligation closure order is an order which provides

 

that no renewables obligation certificates are to be issued under a

 

renewables obligation order in respect of electricity generated after

 

a specified date.

 

(3)    

Provision made under subsection (2) may specify different dates in

 

relation to different cases or circumstances.

 

(4)    

The cases or circumstances mentioned in subsection (2) may in

 

particular be described by reference to—

 

(a)    

accreditation of a generating station, or

 

(b)    

the addition of generating capacity to a generating station.

 

(5)    

A renewables obligation closure order may include provision

 

about—

 

(a)    

the meaning of “accreditation” and “generating capacity” in

 

subsection (4);

 

(b)    

when generating capacity is to be treated as added to a

 

generating station for the purposes of that subsection.

 

(6)    

References in this section to a renewables obligation order are

 

references to any renewables obligation order made under section

 

32 (whenever made, and whether or not made by the Secretary of

 

State).

 

(7)    

Power to make provision in a renewables obligation order (and any

 

provision contained in such an order) is subject to provision

 

contained in a renewables obligation closure order; but this section

 

is not otherwise to be taken as affecting power to make provision in

 

a renewables obligation order of the kind mentioned in subsection

 

(2).

 

(8)    

Section 32K applies in relation to a renewables obligation closure

 

order as it applies in relation to a renewables obligation order (and

 

subsection (3) above is not to be taken as limiting the application of

 

that section).


 
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