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Scotland BillPage 50

49 Rail: franchising of passenger services

(1) Section 25 of the Railways Act 1993 (public sector operators not to be
franchisees) is amended as follows.

(2) In the heading, at the beginning insert “England and Wales:”.

(3) 5After subsection (2) insert—

(2A) Subsection (1) does not prevent a public sector operator from being a
franchisee in relation to a Scottish franchise agreement.”

(4) This section does not have effect in relation to any invitation to tender under
section 26(2) of the Railways Act 1993 issued before the day on which this
10section comes into force.

50 Fuel poverty: support schemes

(1) The Energy Act 2010 is amended as follows.

(2) In section 9 (schemes for reducing fuel poverty) after subsection (1) insert—

(1A) In relation to Scotland, that is subject to section 14A (power of the
15Scottish Ministers to make schemes).”

(3) After section 14 (regulations under Part 2: procedure) insert—

14A Power of the Scottish Ministers to make schemes under this Part

(1) The power by regulations under section 9 to make one or more schemes
in relation to Scotland is exercisable by the Scottish Ministers and not,
20except as provided by this section, by the Secretary of State.

(2) For the purposes of the exercise of that power by the Scottish Ministers,
this Part applies—

(a) as if references to the Secretary of State in sections 9, 10 and
14(1), (3) and (4) were references to the Scottish Ministers;

(b) 25with the omission in section 9 of subsections (4), (9)(a), (c)(i), (v)
and (vi) and (11);

(c) as if in section 10(7) “Parliament” were “the Scottish
Parliament”.

(3) The power of the Scottish Ministers under section 9 does not include
30power to make provision in relation to the subject matter of sections 88
to 90 of the Energy Act 2008 (smart meters).

(4) The Scottish Ministers may not make regulations under section 9
unless—

(a) they have consulted the Secretary of State about the proposed
35regulations, and

(b) the Secretary of State has agreed to the regulations being made.

(5) Subsection (1) does not prevent the Secretary of State making a support
scheme in relation to Scotland under section 9, or varying or revoking
regulations made by the Scottish Ministers under that section,—

(a) 40with the agreement of the Scottish Ministers, or

(b) without their agreement, if subsection (6), (8) or (10) applies.

(6) This subsection applies if—

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(a) a scheme in relation to England and Wales has been made, or
the Secretary of State intends to make such a scheme, and

(b) the Secretary of State is satisfied, after consulting the Scottish
Ministers, that, to ensure that a scheme in relation to Scotland is
5made with a corresponding scheme period, it is necessary for
the Secretary of State to exercise the power under section 9 to
make such a scheme.

(7) In paragraph (b) of subsection (6) a “corresponding scheme period”
means a scheme period beginning and ending at the same time as that
10specified or to be specified in the scheme mentioned in paragraph (a).

(8) This subsection applies if it appears to the Secretary of State that a
support scheme made in relation to Scotland is, alone or in conjunction
with a scheme made or to be made in relation to England and Wales,
likely to—

(a) 15cause detriment to the United Kingdom, or

(b) adversely affect the ability of the United Kingdom to comply
with an international agreement or arrangement in relation to
climate change or energy efficiency,

and the Scottish Ministers have failed to comply with a request made to
20them by the Secretary of State to make modifications specified by the
Secretary of State.

(9) In determining for the purposes of subsection (8), whether detriment is
likely to be caused to the United Kingdom, considerations that the
Secretary of State may take into account include the costs imposed on
25suppliers by virtue of schemes made, or to be made, by the Secretary of
State and the Scottish Ministers under section 9.

(10) This subsection applies if—

(a) the Secretary of State makes or intends to make changes to a
support scheme which would result in a significant change in
30the costs incurred by suppliers in complying with the scheme,
and

(b) the Scottish Ministers have failed to comply with a request
made to them by the Secretary of State to make modifications
specified by the Secretary of State.

(11) 35A request by the Secretary of State to the Scottish Ministers for the
purposes of subsection (8) or (10)

(a) must be in writing;

(b) must specify only modifications that appear to the Secretary of
State to be necessary to prevent the effect mentioned in
40subsection (8)(a) or (b), or (as the case may be) to be necessary
or expedient in view of the effect mentioned in subsection
(10)(a);

(c) must specify the time within which the modifications are to be
made, which must not be less than 2 months from the date of the
45request.

(12) Where the Secretary of State makes a scheme in accordance with
subsection (5), section 14(5) does not prevent the Secretary of State, by
regulations under section 9, revoking any scheme made by the Scottish
Ministers so far as it is inconsistent with the scheme made by the
50Secretary of State.”

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(4) Section 31 (orders and regulations) is amended as follows.

(5) After subsection (1) insert—

(1A) Subsection (1) does not apply to regulations made by the Scottish
Ministers (see section 27 of the Interpretation and Legislative Reform
5(Scotland) Act 2010: functions exercisable by Scottish statutory
instrument).”

(6) After subsection (4) insert—

(4A) Regulations made by the Scottish Ministers under section 9 are subject
to the affirmative procedure (see section 29 of the Interpretative and
10Legislative Reform (Scotland) Act 2010).”

(7) In subsection (6) after “Regulations” insert “made by the Secretary of State”.

(8) After subsection (6) insert—

(6A) Regulations made by the Scottish Ministers may impose obligations or
confer functions on a person (including the Scottish Ministers).”

(9) 15Where an amendment made by this section imposes a requirement to consult
or to obtain consent, the requirement may be satisfied by consultation
undertaken or consent obtained before this section comes into force.

51 Energy company obligations

(1) The Gas Act 1986 is amended as follows.

(2) 20After section 33BC (promotion of reduction in carbon emissions) insert—

33BCA Scottish Ministers’ promotion of reductions in carbon emissions:
gas suppliers

(1) Where the Secretary of State under section 33BC imposes on gas
suppliers obligations to achieve a target within a specified period, the
25power to make orders under that section is exercisable by the Scottish
Ministers for the purposes of those obligations imposed in relation to
Scotland and not, except as provided by subsection (6), by the Secretary
of State.

(2) An obligation is imposed in relation to Scotland to the extent that
30measures to meet that obligation may be carried out in Scotland
(disregarding any power to elect under section 103 of the Utilities Act
2000).

(3) For the purposes of the exercise by the Scottish Ministers of the power
to make an order under section 33BC, that section applies with the
35following modifications—

(a) for subsection (1) there is substituted a power by order to
specify how gas suppliers may meet their obligations to achieve
the carbon emissions reduction target through measures carried
out in Scotland;

(b) 40subsections (1A), (3), (5)(a), (7)(a) and (10A) are omitted;

(c) in subsection (2A) at the beginning of paragraph (b) there is
inserted “where the Secretary of State has apportioned the
overall carbon emissions reduction target under section 103(2A)
of the Utilities Act 2000, and”;

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(d) in subsection (11) “Citizens Advice” and “gas transporters” is
omitted;

(e) in subsection (12), for the words from “shall not be made” to the
end is substituted “is subject to the affirmative procedure”;

(f) 5in subsection (12A) for the words from “shall be subject to” to
the end is substituted “is subject to the negative procedure”;

(g) for “Secretary of State” in each place is substituted with
“Scottish Ministers”.

(4) The power of the Scottish Ministers under section 33BC does not
10include power to make provision in relation to the subject matter of
sections 88 to 90 of the Energy Act 2008 (smart meters).

(5) The Scottish Ministers may not make an order under section 33BC
unless—

(a) they have consulted the Secretary of State about the proposed
15order, and

(b) the Secretary of State has agreed to the order being made.

(6) The power of the Secretary of State to make an order under section
33BC is exercisable so as to make any provision that may be made by
the Scottish Ministers under that section, or vary or revoke an order
20made by the Scottish Ministers under that section, but only—

(a) with the agreement of the Scottish Ministers, or

(b) without their agreement, if subsection (7) applies.

(7) This subsection applies if it appears to the Secretary of State, in the case
of obligations imposed in relation to Scotland (the “Scottish
25obligations”), taking into account any provision made by the Scottish
Ministers, that the Scottish obligations are, alone or in conjunction with
obligations imposed or to be imposed in relation to England and Wales,
likely to—

(a) cause detriment to the United Kingdom,

(b) 30adversely affect the ability of the United Kingdom to comply
with an international agreement or arrangement in relation to
climate change or energy efficiency, or

(c) result in costs incurred by suppliers that are not broadly
equivalent in relation to England and Wales and in relation to
35Scotland,

and the Scottish Ministers have failed to comply with a request made to
them by the Secretary of State to make modifications specified by the
Secretary of State.

(8) In determining for the purposes of subsection (7), whether detriment is
40likely to be caused to the United Kingdom, considerations that the
Secretary of State may take into account include the costs imposed on
suppliers by virtue of obligations imposed or to be imposed by the
Secretary of State under section 33BC or any provision made by the
Scottish Ministers under that section.

(9) 45A request by the Secretary of State to the Scottish Ministers for the
purposes of subsection (7)—

(a) must be in writing;

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(b) must specify only modifications that appear to the Secretary of
State to be necessary to prevent the effect mentioned in
subsection (7)(a), (b) or (c);

(c) must specify the time within which the modifications are to be
5made, which must not be less than 2 months from the date of the
request.”

(3) After section 33BD (promotion of reduction in home-heating costs) insert—

33BDA Scottish Ministers’ promotion of reductions in home-heating costs:
gas suppliers

(1) 10Where the Secretary of State under section 33BD imposes on gas
suppliers obligations to achieve a target within a specified period, the
power to make orders under that section is exercisable by the Scottish
Ministers for the purposes of those obligations imposed in relation to
Scotland and not, except as provided by subsection (6), by the Secretary
15of State.

(2) An obligation is imposed in relation to Scotland to the extent that
measures to meet that obligation may be carried out in Scotland
(disregarding any power to elect under section 103A of the Utilities Act
2000).

(3) 20For the purposes of the exercise by the Scottish Ministers of the power
to make an order under section 33BD, that section applies with the
following modifications—

(a) for subsection (1) there is substituted a power by order to
specify how gas suppliers may meet their obligations to achieve
25the home-heating cost reduction target through measures
carried out in Scotland;

(b) subsection (3) is omitted;

(c) subsections (3), (5)(a), (7)(a) and (10A) of section 33BC as
applied by subsection (4) are omitted;

(d) 30in subsection (2)(a) at the beginning of sub-paragraph (ii) there
is inserted “where the Secretary of State has apportioned the
overall home-heating cost reduction target under section
103A(3A) of the Utilities Act 2000, and”;

(e) in section 33BC(11) as applied by subsection (4) “Citizens
35Advice” and “gas transporters” is omitted;

(f) in section 33BC(12) as applied by subsection (4) for the words
from “shall not be made” to the end is substituted “is subject to
the affirmative procedure”;

(g) in section 33BC(12A) as applied by subsection (4) for the words
40from “shall be subject to” to the end is substituted “is subject to
the negative procedure”;

(h) for “Secretary of State” in each place (including any references
in section 33BC that apply by virtue of subsection (4)), is
substituted “Scottish Ministers”.

(4) 45The power of the Scottish Ministers under section 33BD does not
include power to make provision in relation to the subject matter of
sections 88 to 90 of the Energy Act 2008 (smart meters).

(5) The Scottish Ministers may not make an order under section 33BD
unless—

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(a) they have consulted the Secretary of State about the proposed
order, and

(b) the Secretary of State has agreed to the order being made.

(6) The power of the Secretary of State to make an order under section
533BD is exercisable so as to make any provision that may be made by
the Scottish Ministers under that section, or vary or revoke an order
made by the Scottish Ministers under that section, but only—

(a) with the agreement of the Scottish Ministers, or

(b) without their agreement, if subsection (7) applies.

(7) 10This subsection applies if it appears to the Secretary of State, in the case
of obligations imposed in relation to Scotland (the “Scottish
obligations”), taking into account any provision made by the Scottish
Ministers, that the Scottish obligations are, alone or in conjunction with
obligations imposed or to be imposed in relation to England and Wales,
15likely to—

(a) cause detriment to the United Kingdom,

(b) adversely affect the ability of the United Kingdom to comply
with an international agreement or arrangement in relation to
climate change or energy efficiency, or

(c) 20result in costs incurred by suppliers that are not broadly
equivalent in relation to England and Wales and in relation to
Scotland,

and the Scottish Ministers have failed to comply with a request made to
them by the Secretary of State to make modifications specified by the
25Secretary of State.

(8) In determining for the purposes of subsection (7), whether detriment is
likely to be caused to the United Kingdom, considerations that the
Secretary of State may take into account include the costs imposed on
suppliers by virtue of obligations imposed or to be imposed by the
30Secretary of State under section 33BD or any provision made by the
Scottish Ministers under that section.

(9) A request by the Secretary of State to the Scottish Ministers for the
purposes of subsection (7)—

(a) must be in writing;

(b) 35must specify only modifications that appear to the Secretary of
State to be necessary to prevent the effect mentioned in
subsection (7)(a), (b) or (c);

(c) must specify the time within which the modifications are to be
made, which must not be less than 2 months from the date of the
40request.”

(4) The Electricity Act 1989 is amended as follows.

(5) After section 41A (promotion of reduction in carbon emissions) insert—

41AA Scottish Ministers’ promotion of reductions in carbon emissions:
electricity suppliers

(1) 45Where the Secretary of State under section 41A imposes on electricity
suppliers obligations to achieve a target within a specified period, the
power to make orders under that section is exercisable by the Scottish
Ministers for the purposes of those obligations imposed in relation to

Scotland BillPage 56

Scotland and not, except as provided by subsection (6), by the Secretary
of State.

(2) An obligation is imposed in relation to Scotland to the extent that
measures to meet that obligation may be carried out in Scotland
5(disregarding any power to elect under section 103 of the Utilities Act
2000).

(3) For the purposes of the exercise by the Scottish Ministers of the power
to make an order under section 41A, that section applies with the
following modifications—

(a) 10for subsection (1) there is substituted a power by order to
specify how electricity suppliers may meet their obligations to
achieve the carbon emissions reduction target through
measures carried out in Scotland;

(b) subsections (1A), (3), (5)(a), (7)(a) and (10A) are omitted;

(c) 15in subsection (2A) at the beginning of paragraph (b) there is
inserted “where the Secretary of State has apportioned the
overall carbon emissions reduction target under section 103(2A)
of the Utilities Act 2000, and”

(d) in subsection (11) “Citizens Advice” and “electricity
20distributors” is omitted;

(e) in subsection (12), for the words from “shall not be made” to the
end is substituted “is subject to the affirmative procedure”;

(f) in subsection (12A) for the words from “shall be subject to” to
the end is substituted “is subject to the negative procedure”.

(g) 25for “Secretary of State” in each place is substituted with
“Scottish Ministers”.

(4) The power of the Scottish Ministers under section 41A does not include
power to make provision in relation to the subject matter of sections 88
to 90 of the Energy Act 2008 (smart meters).

(5) 30The Scottish Ministers may not make an order under section 41A
unless—

(a) they have consulted the Secretary of State about the proposed
order, and

(b) the Secretary of State has agreed to the order being made.

(6) 35The power of the Secretary of State to make an order under section 41A
is exercisable so as to make any provision that may be made by the
Scottish Ministers under that section, or vary or revoke an order made
by the Scottish Ministers under that section, but only—

(a) with the agreement of the Scottish Ministers, or

(b) 40without their agreement, if subsection (7) applies.

(7) This subsection applies if it appears to the Secretary of State, in the case
of obligations imposed in relation to Scotland (the “Scottish
obligations”), taking into account any provision made by the Scottish
Ministers, that the Scottish obligations are, alone or in conjunction with
45obligations imposed or to be imposed in relation to England and Wales,
likely to—

(a) cause detriment to the United Kingdom,

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(b) adversely affect the ability of the United Kingdom to comply
with an international agreement or arrangement in relation to
climate change or energy efficiency, or

(c) result in costs incurred by suppliers that are not broadly
5equivalent in relation to England and Wales and in relation to
Scotland,

and the Scottish Ministers have failed to comply with a request made to
them by the Secretary of State to make modifications specified by the
Secretary of State.

(8) 10In determining for the purposes of subsection (7), whether detriment is
likely to be caused to the United Kingdom, considerations that the
Secretary of State may take into account include the costs imposed on
suppliers by virtue of obligations imposed or to be imposed by the
Secretary of State under section 41A or any provision made by the
15Scottish Ministers under that section.

(9) A request by the Secretary of State to the Scottish Ministers for the
purposes of subsection (7)—

(a) must be in writing;

(b) must specify only modifications that appear to the Secretary of
20State to be necessary to prevent the effect mentioned in
subsection (7)(a), (b) or (c);

(c) must specify the time within which the modifications are to be
made, which must not be less than 2 months from the date of the
request.”

(6) 25After section 41B (promotion of reduction in home-heating costs) insert—

41BA Scottish Ministers’ promotion of reductions in home-heating costs:
electricity suppliers

(1) Where the Secretary of State under section 41B imposes on electricity
suppliers obligations to achieve a target within a specified period, the
30power to make orders under that section is exercisable by the Scottish
Ministers for the purposes of those obligations imposed in relation to
Scotland and not, except as provided by subsection (6), by the Secretary
of State.

(2) An obligation is imposed in relation to Scotland to the extent that
35measures to meet that obligation may be carried out in Scotland
(disregarding any power to elect under section 103A of the Utilities Act
2000).

(3) For the purposes of the exercise by the Scottish Ministers of the power
to make an order under section 41B, that section applies with the
40following modifications—

(a) for subsection (1) there is substituted a power by order to
specify how electricity suppliers may meet their obligations to
achieve the home-heating cost reduction target through
measures carried out in Scotland;

(b) 45subsection (3) is omitted;

(c) subsections (3), (5)(a), (7)(a) and (10A) of section 41A as applied
by subsection (4) are omitted;

(d) in subsection (2)(a) at the beginning of sub-paragraph (ii) there
is inserted “where the Secretary of State has apportioned the

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overall home-heating costs reduction target under section
103A(3A) of the Utilities Act 2000, and”;

(e) in section 41A(11) as applied by subsection (4) “Citizens
Advice” and “electricity distributors” is omitted;

(f) 5in section 41A(12) as applied by subsection (4) for the words
from “shall not be made” to the end is substituted “is subject to
the affirmative procedure”;

(g) in section 41A(12A) as applied by subsection (4) for the words
from “shall be subject to” to the end is substituted “is subject to
10the negative procedure”;

(h) for “Secretary of State” in each place (including any references
in section 41A that apply by virtue of subsection (4)), is
substituted “Scottish Ministers”.

(4) The power of the Scottish Ministers under section 41B does not include
15power to make provision in relation to the subject matter of sections 88
to 90 of the Energy Act 2008 (smart meters).

(5) The Scottish Ministers may not make an order under section 41B
unless—

(a) they have consulted the Secretary of State about the proposed
20order, and

(b) the Secretary of State has agreed to the order being made.

(6) The power of the Secretary of State to make an order under section 41B
is exercisable so as to make any provision that may be made by the
Scottish Ministers under that section, or vary or revoke an order made
25by the Scottish Ministers under that section, but only—

(a) with the agreement of the Scottish Ministers, or

(b) without their agreement, if subsection (7) applies.

(7) This subsection applies if it appears to the Secretary of State, in the case
of obligations imposed in relation to Scotland (the “Scottish
30obligations”), taking into account any provision made by the Scottish
Ministers, that the Scottish obligations are, alone or in conjunction with
obligations imposed or to be imposed in relation to England and Wales,
likely to—

(a) cause detriment to the United Kingdom,

(b) 35adversely affect the ability of the United Kingdom to comply
with an international agreement or arrangement in relation to
climate change or energy efficiency, or

(c) result in costs incurred by suppliers that are not broadly
equivalent in relation to England and Wales and in relation to
40Scotland,

and the Scottish Ministers have failed to comply with a request made to
them by the Secretary of State to make modifications specified by the
Secretary of State.

(8) In determining for the purposes of subsection (7), whether detriment is
45likely to be caused to the United Kingdom, considerations that the
Secretary of State may take into account include the costs imposed on
suppliers by virtue of obligations imposed or to be imposed by the
Secretary of State under section 41B or any provision made by the
Scottish Ministers under that section.

Scotland BillPage 59

(9) A request by the Secretary of State to the Scottish Ministers for the
purposes of subsection (7)—

(a) must be in writing;

(b) must specify only modifications that appear to the Secretary of
5State to be necessary to prevent the effect mentioned in
subsection (7)(a), (b) or (c);

(c) must specify the time within which the modifications are to be
made, which must not be less than 2 months from the date of the
request.”

(7) 10Where an amendment made by this section imposes a requirement to consult
or to obtain consent, the requirement may be satisfied by consultation
undertaken or consent obtained before this section comes into force.

52 Apportionment of targets

(1) The Utilities Act 2000 is amended as follows.

(2) 15Section 103 (overall carbon emissions reduction targets) is amended as follows.

(3) After subsection (2) insert—

(2A) Where an overall target applies in relation to a section mentioned in
subsection (1) the order specifying the target may make provision for
the target to be apportioned between—

(a) 20measures carried out in England and Wales, and

(b) measures carried out in Scotland,

by reference to such criteria as may be specified in the order.”

(4) After subsection (3) insert—

(3A) Where a target is apportioned under subsection (2A) for the purposes
25of a section, an order under that section may include provision for a
supplier to elect, subject to any conditions specified in the order,—

(a) that, for the purposes of meeting the carbon emissions
reduction target under an obligation imposed by the order in
relation to England and Wales, a measure carried out in
30Scotland is to be treated instead as carried out in England and
Wales;

(b) that, for the purposes of meeting the carbon emissions
reduction target under an obligation imposed by the order in
relation to Scotland, a measure carried out in England and
35Wales is to be treated instead as carried out in Scotland.

(3B) An order under subsection (2A) may not make provision under
subsection (3A)(b) unless the Scottish Ministers have agreed to such
provision being made.”

(5) Section 103A (overall home-heating cost reduction targets) is amended as
40follows.

(6) After subsection (3) insert—

(3A) Where an overall target applies in relation to a section mentioned in
subsection (1) the order specifying the target may make provision for
the target to be apportioned between—

(a) 45measures carried out in England and Wales, and

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