Energy Bill [HL]

, insert the following new Clause—

“Purpose of this Part

(1) The principal purpose of this Part is to deliver energy savings from the domestic building stock, which will make commensurate contributions to—

(a) the achievement of the target contained in section 1(1) of the Climate Change Act 2008 (the target for 2050) and the carbon budget set for each budgetary period under Part 1 of that Act (carbon target and budgeting); and

(b) the elimination of fuel poverty by the target date required by section 2(2)(d) of the Warm Homes and Energy Conservation Act 2000 (strategy relating to fuel poverty).

(2) In performing functions, exercising powers and reviewing the effectiveness of the green deal under this Part, the Secretary of State must have regard to—

(a) the principal purpose set out in subsection (1); and

(b) the recommendations from time to time of the Committee on Climate Change where these are adopted by the Secretary of State.”

Page 3, line 2, after “electricity,” insert “liquid petroleum gas,”

Page 3, line 42, leave out “may” and insert “must”

Page 4, line 14, after “issuing” insert “, revision or revocation”

Page 4, line 27, at end insert—

“( ) Regulations for fees payable under this section may establish a reduced fee for charities and social enterprises applying for initial or continued authorisation as green deal participants.”

Page 4, line 27, at end insert—

“( ) The Secretary of State may in the framework regulations make specific provision for the green deal to address situations of fuel poverty or of extreme building energy inefficiency (or both).”

Page 4, line 28, leave out “may” and insert “must”

Page 4, line 43, leave out “may” and insert “must”

Page 5, line 4, leave out “may” and insert “must”

Page 5, line 22, at end insert—

“( ) In this Chapter references to a code of practice include references to a code of practice which has been revised by virtue of subsection (3)(d).”

Insert the following new Clause—

“Green deal providers

(1) It is the duty of green deal providers to ensure that the energy plan reasonably reflects the best overall energy solution or solutions for that property, while also taking into consideration the total cost and the period of payback of any scheme.

(2) Providers must be able to show evidence that they have taken due care to promote the best interests of the improver.

(3) Where appropriate, suitable options should be offered to the improver so that they may make a choice.

(4) An energy plan shall include, as information to the improver, an estimate of the annual savings of carbon dioxide emissions.”

Page 5, line 24, at end insert—

“( ) An assessment made and provided under this section must clearly detail those energy efficiency improvements that qualify under the green deal.

( ) In making an assessment, the assessor must include all energy efficiency improvements options that qualify under the green deal.

( ) Nothing in this section prevents a green deal assessor from identifying energy efficiency improvements in their assessment that—

(a) sit outside the green deal; or

(b) collectively exceed the total amount qualifiable under a green deal plan, where this is clearly identified on the assessment.”

Page 5, line 33, at end insert “, and that person has disclosed (in writing and verbally) their connection and any potential conflict of interest between their functions as an assessor and their connection with any green deal installer or green deal provider to the improver and the bill payer”

Page 5, line 35, at end insert “without bias toward, or in promotion of, the products or services of any one green deal provider”

Page 7, line 14, at end insert—

“( ) The fourth condition is that all fees that may be incurred throughout a green deal plan are communicated to the contracting householder or landlord in a clear, transparent and easy to understand format prior to the deal being secured.”

Page 7, line 42, at end insert—

“( ) Where consent to green deal improvements is sought by an improver, that consent shall not be unreasonably withheld.”

Page 8, line 5, leave out paragraphs (a) and (b) and insert “any product installed in making the improvements—

(a) meets the standard specified in the code of practice in relation to the product or description of product, or

(b) is listed in a document which—

(i) is issued by the Secretary of State or a person authorised by the Secretary of State in connection with the code, and

(ii) is referred to in the code as listing the products which are to be taken as meeting the required standard.”

Line 7, after “code,” insert—

“( ) is administered and updated by a green deal oversight body,”

Page 8, line 9, at end insert—

“( ) In specifying the standard in relation to a product or description of product for the purposes of subsection (3)(a), the code of practice may make provision as to the testing and certification of the product or description of product.”

Page 8, line 11, at end insert—

“( ) In this section references to the code of practice are to the code of practice issued for the purposes of the scheme under the framework regulations.”

Page 8, line 30, leave out “amended” and insert “updated”

Page 8, line 30, at end insert—

“( ) The reference in this section to securing that a document is updated includes a reference to securing that a document is replaced by a document of the same description.”

Page 8, line 35, at end insert “or the 2010 Regulations”

Page 8, line 36, leave out from “The” to end of line 39 and insert “Secretary of State may by regulations make provision amending the 2007 Regulations or the 2010 Regulations or both (as the case may require) in connection with a document required to be produced or updated by virtue of section 8(4)(b) or (c)”

Page 8, line 40, leave out from “The” to end of line 4 on page 9 and insert “amendments made by virtue of subsection (2) may, in particular, include amendments for the purpose of requiring a document to contain additional or updated information in connection with the plan or the improvements installed under the plan”

Page 9, line 7, at end insert—

““the 2010 Regulations” means the Building Regulations 2010 (S.I. 2010/2214)”

Page 9, line 12, leave out from “provision” to end of line 15 and insert “amending the 2008 Regulations in connection with a document required to be produced or updated by virtue of section 8(4)(b) or (c)”

Page 9, line 16, leave out from “The” to end of line 23 and insert “amendments made by virtue of subsection (2) may, in particular, include amendments for the purpose of requiring a document to contain additional or updated information in connection with the plan or the improvements installed under the plan”

Page 9, line 29, leave out “amended” and insert “updated”

Page 9, line 29, at end insert—

“( ) Subsection (3) applies if one or more of the first, second or third conditions is met.”

Page 9, leave out line 30 and insert “The first condition is that—”

Page 9, line 33, after “Regulations” insert “or the 2010 Regulations”

Page 9, line 34, leave out from “the” to “information” in line 36 and insert “2007 Regulations or the 2010 Regulations or both by virtue of section 9(3) to require a document of that description to contain additional or updated”

Page 9, line 36, at end insert—

“(2A) The second condition is that—

(a) by virtue of section 8(4)(b) or (c), the framework regulations specify a document of a description which is required to be produced under the 2008 Regulations, and

(b) provision is made in the 2008 Regulations by virtue of section 10(3) to require a document of that description to contain additional or updated information.”

Page 9, line 36, at end insert—

“(2B) The third condition is that, by virtue of section 8(4)(b) or (c), the framework regulations specify a document of a description other than one falling within subsection (2) or (2A).”

Page 9, line 38, leave out paragraphs (a) and (b) and insert “as to the circumstances in which a document of a description falling within subsection (2), (2A) or (2B) (as the case may require) is required to be updated or further updated in accordance with provision made by the Secretary of State in the regulations”

Page 9, line 41, leave out subsections (4) to (7)

Page 10, line 16, leave out from “In” to second “the” and insert “subsection (2) “the 2007 Regulations” and “the 2010 Regulations” have”

Page 10, line 18, leave out “subsections (5) and (6)” and insert “subsection (2A)”

Page 10, line 19, at end insert—

“( ) In this section references to a document being required to be updated or further updated include references to a document being required to be replaced by a document of the same description.”

Insert the following new Clause—

“Disclosure of green deal plan in connection with other transactions etc

(1) This section applies where—

(a) there is to be a transaction or other arrangement in respect of a green deal property (not falling within section 12(1)), and

(b) the transaction or arrangement is of a description specified in regulations made by the Secretary of State.

(2) The regulations may require a person of a description specified in the regulations to—

(a) obtain the document mentioned in section 8(4) or, if that provision has not yet been complied with, produce a document containing the same information in connection with the green deal plan as that document would have contained, and

(b) provide the document free of charge to a person of a description specified in the regulations at the time so specified.

(3) The regulations may provide for an obligation imposed on a person by virtue of subsection (2) to be discharged by a person acting on the person’s behalf.

(4) In this section the reference to a green deal property is to be read in accordance with section 12(5)(b).”

Insert the following new Clause—

“Acknowledgment of green deal plan in connection with other transactions etc

(1) This section applies where—

(a) there is to be a transaction or other arrangement in respect of a green deal property (not falling within section 13(1)), and

(b) the transaction or arrangement is of a description specified in regulations made under this subsection by the Secretary of State.

(2) Regulations under subsection (1) may require a person of a description specified in the regulations to secure, at a time and in a document so specified, that an acknowledgment is made by a person of a description so specified that—

(a) the bill payer at the property is liable to make payments under the green deal plan, and

(b) certain terms of that plan are binding on the bill payer.

(3) Where the green deal property is in England or Wales, regulations made by the Secretary of State under this subsection may provide for any acknowledgment required by virtue of subsection (2) to be in the form prescribed in the regulations under this subsection.

(4) Where the green deal property is in Scotland, regulations made by the Scottish Ministers under this subsection may provide for any acknowledgment required by virtue of subsection (2) to be in the form prescribed in the regulations under this subsection.

(5) In this section references to a green deal property are to be read in accordance with section 12(5)(b).”

Page 11, line 38, at end insert “or imposed by virtue of regulations under section (Disclosure of green deal plan in connection with other transactions etc)”

Page 11, line 38, at end insert “or imposed by virtue of regulations under section (Acknowledgment of green deal plan in connection with other transactions etc)”

Page 12, line 7, after “licensor” insert “or another person”

Page 12, line 40, leave out paragraph (c)

Page 15, line 2, leave out “This section applies” and insert “Subsections (2) to (6) apply”

Page 15, line 23, at end insert—

“(7) In section 33(1) of the Utilities Act 2000 (standard conditions of electricity licences)—

(a) after paragraph (d) omit “or”;

(b) after paragraph (e) insert “or

(f) under Chapter 1 of Part 1 of the Energy Act 2011.”

(8) In section 81(2) of the Utilities Act 2000 (standard conditions of gas licences)—

(a) for “2008 or” substitute “2008,”;

(b) after “2010” insert “or under Chapter 1 of Part 1 of the Energy Act 2011”.”

Page 15, line 23, at end insert—

“( ) Sections 4AA to 4B of the Gas Act 1986 (principal objective and general duties) apply in relation to the powers under sections 15 to 18 with respect to holders of licences under section 7 or 7A of that Act as they apply in relation to functions of the Secretary of State under Part 1 of that Act.

( ) Sections 3A to 3D of the Electricity Act 1989 (principal objective and general duties) apply in relation to the powers under sections 15 to 18 with respect to holders of licences under section 6(1)(c) or (d) of that Act as they apply in relation to functions of the Secretary of State under Part 1 of that Act.”

Page 18, line 36, leave out paragraph (c)

Page 18, line 40, leave out from “(a),” to end of line 41 and insert “a draft of the code must be approved by the Secretary of State before the Secretary of State lays the draft before Parliament under section (Parliamentary procedure in relation to code of practice)(2)”

Page 18, line 41, at end insert—

“( ) If the function of revoking a code of practice issued for the purposes of the scheme is specified in an order by virtue of subsection (1)(a), the code must not be revoked without the approval of the Secretary of State.”

Page 20, line 14, leave out “a court or tribunal” and insert “the High Court”

Page 20, line 18, leave out subsection (3)

Page 21, line 2, at end insert “and includes an instrument made under a Measure or Act of the National Assembly for Wales”

Insert the following new Clause—

“Parliamentary procedure in relation to code of practice

(1) This section makes further provision in relation to the issuing of any code of practice for the purposes of the scheme established by the framework regulations.

(2) Before the code is issued the Secretary of State must lay a draft of the code before Parliament.

(3) If, within the 40-day period, either House of Parliament resolves not to approve the draft, the code may not be issued.

(4) If no such resolution is made within that period, the code may be issued.

(5) The “40-day period”, in relation to a draft of a code, means the period of 40 days beginning with the day on which the draft is laid before Parliament (or, if it is not laid before each House of Parliament on the same day, the later of the 2 days on which it is laid).

(6) For the purposes of calculating the 40-day period, no account is to be taken of any period during which—

(a) Parliament is dissolved or prorogued, or

(b) both Houses are adjourned for more than 4 days.”

Page 21, line 19, at beginning insert “regulations under section 2 or”

Page 21, line 20, leave out “11(6) or”

Page 21, line 20, at end insert “or (Acknowledgment of green deal plan in connection with other transactions etc)(4)”

Page 21, line 21, after “section” insert “(Disclosure of green deal plan in connection with other transactions etc),”

Page 21, line 21, after “section” insert “(Acknowledgment of green deal plan in connection with other transactions etc)(1),”

Page 21, line 22, after “section” insert “1, 2 or”

Page 21, line 35, at end insert—

“(7A) The Secretary of State must obtain the consent of the Welsh Ministers before making provision under section 31 amending or revoking—

(a) provision included in an instrument made under a Measure or Act of the National Assembly for Wales;

(b) any other subordinate legislation made by the Welsh Ministers (or the National Assembly for Wales established under the Government of Wales Act 1998).

(7B) Subsection (7A) does not apply to the extent that the Secretary of State is making incidental or consequential provision.”

Page 21, line 37, at end insert—

“( ) Subsection (8) does not apply to the extent that consent has been obtained under subsection (7A).”

Page 21, line 37, at end insert—

“( ) Before making regulations or an order under this Chapter, the Secretary of State must report to Parliament with proposals on green deal apprenticeships.”

Insert the following new Clause—

“Annual report

(1) The Secretary of State must report annually to Parliament on the operation of the scheme, with particular reference to—

(a) the number of properties that have green deal plans; and

(b) the geographical uptake of the scheme across the country.

(2) The Secretary of State must lay a statement in either House within 60 days of—

(a) a resolution of either House of Parliament; or

(b) a recommendation of a committee of either House of Parliament, in respect of the annual report laid before Parliament under subsection (1).”

Page 22, line 12, at end insert “, or

“(iii) under a tenancy which is specified for the purposes of this subsection in an order made by the Secretary of State”

Page 22, line 34, at end insert—

“( ) A review under this section may include a review of the energy efficiency of such properties which are not PR properties as the Secretary of State considers appropriate.”

Page 23, line 18, leave out subsection (1)

Page 23, line 18, leave out subsection (1) and insert—

“( ) The power of the Secretary of State to make regulations under this section is exercisable only if the Secretary of State considers that the regulations—

(a) will improve the energy efficiency of the non-domestic PR properties to which the regulations relate; and

(b) will not materially decrease the number of properties available for rent.”

Page 23, line 26, leave out “may make regulations” and insert “shall make regulations to come into force no later than 1 April 2012 setting a minimum energy efficiency level for domestic PR properties and”

Page 23, line 32, leave out “level of energy efficiency” and insert “minimum energy efficiency level”

Page 23, line 36, at end insert “and as will ensure the domestic PR property meets the minimum energy efficiency level provided for by the regulations”

Page 23, line 41, at end insert—

“(c) provide for the establishment of a national or local register of domestic PR properties for the purpose of distributing information relevant to this Act to landlords of domestic PR properties and their tenants and for other purposes relevant to this Act.”

Page 24, line 4, after “regulations;” insert—

““minimum energy efficiency level” means Band E or above expressed in accordance with Regulation 11(1)(a) of the Energy Performance Regulations or any higher level set in accordance with subsection (7);”

Page 24, line 21, leave out subsection (8)

Page 24, line 21, leave out subsection (8) and insert—

“( ) The Secretary of State shall no earlier than 1 January 2016 and no later than 31 December 2019 make at least one further increase to the minimum energy efficiency level.”

Page 25, line 7, leave out “may” and insert “shall”

Page 25, line 9, at end insert “including in particular where a notice has been served under this section which requires a landlord to make relevant energy efficiency improvements provision that, if at the end of the period for compliance in the notice the landlord has failed to comply with the notice in whole or in part, the local authority may enter the property and carry out relevant energy efficiency improvements that the local authority considers necessary to ensure the domestic PR property meets the minimum energy efficiency level and recover from the landlord any costs and expenses reasonably incurred by it in doing so”

Page 25, line 45, at end insert “and includes an instrument made under a Measure or Act of the National Assembly for Wales”

Insert the following new Clause—

Power to make domestic minimum standard regulations

(1) The Secretary of State shall make regulations for the purpose of securing that a landlord of a domestic PR property which falls below a minimum standard of energy efficiency (as demonstrated by the energy performance certificate) as is provided for by the regulations shall not let or market the property until such time as the landlord can demonstrate that the property meets the minimum standard for a domestic PR property.

(2) Regulations under this section are referred to in this Chapter as “domestic minimum standard regulations”.

(3) For the purposes of domestic minimum standard regulations—

“energy performance certificate” has the meaning given by the Energy Performance Regulations;

“landlord” and “local authority” have the meaning given by the regulations; and

“minimum energy efficiency standard” means Band E or above expressed in accordance with Regulation 11(1)(a) of the Energy Performance Regulations or above (or any higher level set in accordance with subsection (5)).

(4) The Secretary of State may by order amend the definition of “energy performance certificate” in subsection (3).

(5) The Secretary of State shall, no later than 31 December 2019, amend the regulations to raise the minimum energy efficiency standard.

(6) Domestic minimum standard regulations shall come into force no later than 1 January 2016.”

Insert the following new Clause—

“Further provision about domestic minimum standard regulations: England and Wales

(1) Domestic minimum standard regulations may in particular include provisions about—

(a) exemptions from any requirement imposed by or under the regulations;

(b) the making of an order by the Secretary of State to suspend the regulations for periods not exceeding one calendar year within any local authority area, provided the Secretary of State—

(i) is satisfied in respect of every calendar year in which there is suspension of the regulations that there is evidence that the regulations have resulted in a significant shortage in the supply of domestic PR property in that local authority area; and

(ii) publishes the order and the reasons it was made and the evidence on which it was based.

(2) Provision falling within subsection (1)(a) includes, in particular, provision about exemptions relating to any necessary permissions or consents.”

Insert the following new Clause—

“Sanctions for the purposes of domestic minimum standard regulations: England and Wales

(1) Domestic minimum standard regulations shall include in particular provisions for the purpose of securing compliance with requirements imposed on landlords by or under the regulations including granting powers to local authorities to carry out relevant energy efficiency works to domestic PR properties under the regulations and recover the costs from the landlord.

(2) Provision falling within subsection (1) includes, in particular, provision—

(a) for a local authority to enforce any requirement imposed by or under the regulations;

(b) about the sanctions for non-compliance with a requirement imposed by or under the regulations;

(c) about the sanctions for the provision of false information in connection with such a requirement; including in cases falling within paragraph (a) or (b), the imposition of a civil penalty by a local authority.

(3) The regulations will make provision for a civil penalty not exceeding £10,000 to be imposed on any person who markets or lets a domestic PR property which does not meet the minimum standard regulations on or after 1 January 2016.

(4) The regulations must also include provision for a right of appeal to a court or tribunal against the imposition of the civil penalty.

(5) Provision falling within subsection (4) includes, in particular, provision—

(a) as to the jurisdiction of the court or tribunal to which an appeal may be made;

(b) as to the grounds on which an appeal may be made;

(c) as to the procedure for making an appeal (including any fee which may be payable);

(d) suspending the imposition of the penalty, pending determination of the appeal;

(e) as to the powers of the court or tribunal to which an appeal is made;

(f) as to how any sum payable in pursuance of a decision of the court or tribunal is to be recoverable.

(6) The provision referred to in subsection (5)(e) includes provision conferring on the court or tribunal to which the appeal is made power—

(a) to confirm the penalty;

(b) to withdraw the penalty;

(c) to vary the amount of the penalty;

(d) to award costs.

(7) If the Secretary of State considers it appropriate for the purpose of, or in consequence of, any provision falling within subsection (5)(a), (c), (e) or (f), domestic minimum standard regulations may revoke or amend any subordinate legislation in so far as the subordinate legislation extends to England and Wales.

(8) In this section “subordinate legislation” has the meaning given in section 21(1) of the Interpretation Act 1978.”

Page 26, line 4, leave out subsection (1)

Page 26, line 4, leave out subsection (1) and insert—

“( ) The power of the Secretary of State to make regulations under this section is exercisable only if the Secretary of State considers that the regulations—

(a) will improve the energy efficiency of domestic PR properties to which the regulations relate; and

(b) will not materially decrease the number of properties available for rent.”

Page 26, line 36, leave out subsection (6)

Page 28, line 22, at end insert “and includes an instrument made under a Measure or Act of the National Assembly for Wales”

Page 28, line 26, leave out subsection (1) and insert—

“( ) The power of the Secretary of State to make regulations under this section is exercisable only if the Secretary of State considers that the regulations—

(a) will improve the energy efficiency of the non-domestic PR properties to which the regulations relate; and

(b) will not materially decrease the number of properties available for rent.”

Page 29, line 18, leave out subsection (7)

Page 30, line 41, at end insert “and includes an instrument made under a Measure or Act of the National Assembly for Wales”

Page 31, line 7, leave out “this Chapter” and insert “section 37(7) or 43(6)”

Page 31, line 9, after “containing” insert “—

(a) an order under section 35(1)(a)(iii), or”

Page 31, line 11, at end insert—

“(5) The Secretary of State must obtain the consent of the Welsh Ministers before making provision under this Chapter amending or revoking—

(a) provision included in an instrument made under a Measure or Act of the National Assembly for Wales;

(b) any other subordinate legislation made by the Welsh Ministers (or the National Assembly for Wales established under the Government of Wales Act 1998).

(6) Subsection (5) does not apply to the extent that the Secretary of State is making incidental or consequential provision.

(7) The Secretary of State must consult the Welsh Ministers before making—

(a) domestic energy efficiency regulations, or

(b) tenants’ energy efficiency improvements regulations,

which apply in relation to domestic PR properties situated in Wales.

(8) Subsection (7) does not apply to the extent that consent has been obtained under subsection (5).”

Page 32, line 25, leave out subsection (1) and insert—

“( ) The power of the Secretary of State to make regulations under this section is exercisable only if the Secretary of State considers that the regulations—

(a) will improve the energy efficiency of the Scottish domestic PR properties to which the regulations relate; and

(b) will not materially decrease the number of properties available for rent.”

Page 33, line 29, leave out subsection (8)

Page 35, line 13, leave out subsection (1) and insert—

“( ) The power of the Secretary of State to make regulations under this section is exercisable only if the Secretary of State considers that the regulations—

(a) will improve the energy efficiency of the Scottish domestic PR properties to which the regulations relate; and

(b) will not materially decrease the number of properties available for rent.”

Page 36, line 1, leave out subsection (6)

Page 37, line 39, leave out subsection (1) and insert—

“( ) The power of the Secretary of State to make regulations under this section is exercisable only if the Secretary of State considers that the regulations—

(a) will improve the energy efficiency of the Scottish non-domestic PR properties to which the regulations relate; and

(b) will not materially decrease the number of properties available for rent.”

Page 38, line 31, leave out subsection (7)

Insert the following new Clause—

“Local carbon budgets

For the purposes of ensuring local authorities assist in meeting the United Kingdom’s carbon budgets under section 4(1) of the Climate Change Act 2008 (carbon budgets), the Secretary of State must report to Parliament on proposals for introducing local carbon budgets by December 2011.”

Page 40, line 23, at end insert—

“( ) In subsection (1) (power by order to impose an obligation to achieve a carbon emissions reduction target) for “the Authority” substitute “the Administrator”.

( ) After subsection (2) insert—

“(2A) In this section “the Administrator” means—

(a) the Authority; or

(b) if the order so provides, the Secretary of State or a specified body other than the Authority.”

( ) In subsection (3) for “the Authority” substitute “the Administrator”.

( ) In subsection (4) for “the Authority” substitute “(subject to any directions given under subsection (9B)) the Administrator”.”

Page 40, line 23, at end insert—

“( ) In subsection (1) (promotion of the efficient use by consumers of gas) at the beginning insert “To assist with achieving the purpose in section 1 of the Energy Act 2011,”.”

Page 40, line 38, leave out “Authority” and insert “Administrator”

Page 41, line 17, at end insert—

“( ) in paragraph (d) for “the Authority” substitute “the Administrator”;”

Page 41, line 18, after “paragraph (e)” insert “—

( ) for “the Authority” substitute “the Administrator”;

( ) ”

Page 41, line 22, at end insert—

“( ) in paragraph (f) for “the Authority” substitute “the Administrator”;”

Page 41, line 24, leave out “Authority” and insert “Administrator”

Page 41, line 29, leave out “Authority” and insert “Administrator”

Page 41, line 32, leave out “Authority” and insert “Administrator”

Page 41, line 36, leave out “Authority” and insert “Administrator”

Page 41, line 42, leave out “Authority” and insert “Administrator”

Page 42, line 7, at end insert—

“( ) In subsection (6) for “the Authority” substitute “the Administrator”.

( ) After subsection (7) insert—

“(7A) The order may—

(a) make provision for any specified requirement contained in it to be treated as a relevant requirement for the purposes of this Part; or

(b) if it provides for the Administrator to be a person other than the Authority, make provision for and in connection with enabling the Administrator to enforce any requirement imposed by the order.

(7B) Provision made by virtue of paragraph (b) of subsection (7A) may, in particular, include provision corresponding to or applying (with or without modifications) any of sections 28 to 30F and section 38.”

( ) In subsection (8) omit paragraph (b).”

Page 42, line 9, leave out “Authority” and insert “Administrator”

Page 42, line 12, leave out “Authority” and insert “Administrator”

Page 42, leave out lines 26 and 27

Page 42, line 29, leave out “those”

Page 42, line 29, after “paragraphs” insert “(b), (ba) or (c) of subsection (5)”

Page 42, line 31, at end insert—

“(12B) If an order under this section provides for the Administrator to be a body other than the Authority, the Secretary of State may make payments to the body of such amounts as the Secretary of State considers appropriate.”

Page 42, line 34, at end insert—

“( ) The reference in subsection (12A) of section 33BC of the Gas Act 1986 to paragraph (c) of subsection (5) of that section includes a reference to paragraph (c) of subsection (5) of that section before its substitution by subsection (2) of this section.”

Page 42, line 39, at end insert—

“( ) In subsection (1) (power by order to impose an obligation to achieve a carbon emissions reduction target) for “the Authority” substitute “the Administrator”.

( ) After subsection (2) insert—

“(2A) In this section “the Administrator” means—

(a) the Authority; or

(b) if the order so provides, the Secretary of State or a specified body other than the Authority.”

( ) In subsection (3) for “the Authority” substitute “the Administrator”.

( ) In subsection (4) for “the Authority” substitute “(subject to any directions given under subsection (9B)) the Administrator”.”

Page 42, line 39, at end insert—

“( ) In subsection (1) (promotion of reduction in carbon emissions: electricity generators, distributors and suppliers) at the beginning insert “To assist with achieving the purpose in section 1 of the Energy Act 2011,””

Page 43, line 10, leave out “Authority” and insert “Administrator”

Page 43, line 27, at end insert—

“( ) in paragraph (d) for “the Authority” substitute “the Administrator”;”

Page 43, line 28, after “paragraph (e)” insert “—

( ) for “the Authority” substitute “the Administrator”;

( ) ”

Page 43, line 32, at end insert—

“( ) in paragraph (f) for “the Authority” substitute “the Administrator”;”

Page 43, line 34, leave out “Authority” and insert “Administrator”

Page 43, line 39, leave out “Authority” and insert “Administrator”

Page 43, line 42, leave out “Authority” and insert “Administrator”

Page 43, line 46, leave out “Authority” and insert “Administrator”

Page 44, line 1, leave out “Authority” and insert “Administrator”

Page 44, line 15, at end insert—

“( ) In subsection (6) for “the Authority” substitute “the Administrator”.

( ) After subsection (7) insert—

“(7A) The order may—

(a) make provision for any specified requirement contained in it to be treated as a relevant requirement for the purposes of this Part; or

(b) if it provides for the Administrator to be a person other than the Authority, make provision for and in connection with enabling the Administrator to enforce any requirement imposed by the order.

(7B) Provision made by virtue of paragraph (b) of subsection (7A) may, in particular, include provision corresponding to or applying (with or without modifications) any of sections 25 to 28.”

( ) In subsection (8) omit paragraph (b).”

Page 44, line 17, leave out “Authority” and insert “Administrator”

Page 44, line 20, leave out “Authority” and insert “Administrator”

Page 44, leave out lines 34 and 35

Page 44, line 37, leave out “those”

Page 44, line 37, after “paragraphs” insert “(b), (ba) or (c) of subsection (5)”

Page 44, line 39, at end insert—

“(12B) If an order under this section provides for the Administrator to be a body other than the Authority, the Secretary of State may make payments to the body of such amounts as the Secretary of State considers appropriate.”

Page 44, line 42, at end insert—

“( ) The reference in subsection (12A) of section 41A of the Electricity Act 1989 to paragraph (c) of subsection (5) of that section includes a reference to paragraph (c) of subsection (5) of that section before its substitution by subsection (2) of this section.”

Page 45, line 14, leave out “Authority” and insert “Administrator”

Page 45, line 17, at end insert—

“( ) “the Administrator” means—

(i) the Authority; or

(ii) if the order so provides, the Secretary of State or a specified body other than the Authority;”

Page 45, line 26, leave out “(12A)” and insert “(12B)”

Page 45, line 40, leave out “Authority” and insert “Administrator”

Page 46, line 14, leave out “Authority” and insert “Administrator”

Page 46, line 17, at end insert—

“( ) “the Administrator” means—

(i) the Authority; or

(ii) if the order so provides, the Secretary of State or a specified body other than the Authority;”

Page 46, line 26, leave out “(12A)” and insert “(12B)”

Page 46, line 40, leave out “Authority” and insert “Administrator”

Page 47, line 5, leave out “by the Authority of its functions” and insert “of the functions of the Administrator”

Page 47, line 21, leave out “the Authority to apportion”

Page 47, line 21, after “target” insert “to be apportioned”

Page 47, line 29, leave out “Authority” and insert “Administrator”

Page 48, line 27, at end insert “; and

( ) any body other than the Authority that is for the time being the Administrator in relation to a carbon emissions reduction order or a home-heating cost reduction order”

Leave out Clause 67

Insert the following new Clause—

“Sustainable energy plans

(1) The purpose of this section is to facilitate the involvement of principal councils and of citizens resident in their areas in action taken to promote sustainable energy policies in order to help achieve the following objectives—

(a) the reduction of carbon emissions;

(b) the reduction of home heating costs;

(c) the security of energy supplies;

(d) the achievement of national fuel poverty targets.

(2) Every principal council may, and if the condition specified in subsection (3) is satisfied must, publish a sustainable energy plan (“a plan”) specifying the body’s contribution to achieving the objectives specified in subsection (1).

(3) The condition referred to in subsection (2) is that a petition requesting the publication of a plan, signed by at least 5% of electors in the area of the council, has been delivered to the council.

(4) The Secretary of State must, within 12 months of the passing of this Act, make regulations specifying the rules for the drawing up and presenting of petitions pursuant to this section.

(5) Without prejudice to the generality, a plan must specify the steps that the council proposes to take to promote—

(a) energy efficiency in buildings;

(b) microgeneration;

(c) renewable energy;

(d) combined heat and power.

(6) A plan prepared by a council may—

(a) request such new functions as in the opinion of the council would enable it to make a greater contribution to achieving the objectives specified in subsection (1); and

(b) make a recommendation to the Secretary of State for a transfer of functions from another body to itself provided that no such recommendation may be made unless the council has consulted the person to whose function it relates.

(7) Within six months of receiving any request pursuant to subsection (6)(a) or recommendation pursuant to subsection (6)(b), the Secretary of State must either—

(a) adopt and implement, or take the necessary steps to commence the process of implementation, or

(b) reject,

the request or recommendation and in either case shall give reasons for the decision.

(8) Where any functions are conferred or transferred pursuant to this section, the Secretary of State shall ensure that the monies necessary for the discharge of those functions are provided or transferred.

(9) Any principal council on which functions are conferred or to which functions are transferred under this section must determine how the functions are then performed.

(10) Where the Secretary of State is spending money in an area covered by a plan in order to achieve any of the objectives specified in subsection (1), and in the Minister’s opinion—

(a) any measure contained in a plan is a more efficient way of achieving the Minister’s objectives; and

(b) offers better value,

then the Minister shall provide resources for the principal council to implement those measures in its plan.

(11) Before drawing up a plan pursuant to this section, a principal council must—

(a) consult such persons in its area as in its opinion will have an interest in the plan;

(b) establish a panel of representatives of local persons;

(c) consult and try to reach agreement with the panel about the content of the plan.

(12) A panel set up pursuant to this section must include representatives of parish councils in the council’s areas.

(13) A principal council shall select the representatives of parish councils to be members of the panel, unless parish councils nominate or otherwise select members to serve on the panel within 6 months of its establishment.

(14) In this section—

“fuel poverty” shall be construed in accordance with the provisions of section 1 of the Warm Homes and Energy Conservation Act 2000;

“principal council” means a county borough council, a district council, a metropolitan district council or a London Borough Council;

“microgeneration” has the same meaning given by section 26 of the Climate Change and Sustainable Energy Act 2006.”

Page 80, line 11, leave out paragraph 3

Page 81, line 1, leave out paragraph (a)

Page 81, line 28, leave out paragraph 12 and insert—

“12 (1) Section 103 (overall carbon emissions reduction targets) is amended as follows.

(2) In subsection (1)—

(a) in the words before paragraph (a) for “by the Authority of its functions” substitute “of the functions of the Administrator”;

(b) in paragraph (b) omit “generators,”.

(3) In subsection (2)—

(a) in the words before paragraph (a) for “the Authority to apportion the target” substitute “the target to be apportioned”

(b) in paragraph (b) omit “electricity generators,”.

(4) In subsection (3) for “The Authority” substitute “The Administrator”.

(5) In subsection (4) omit “electricity generators,”.”

Page 50, line 26, at end insert—

“( ) in subsection (3)(g) after “consumers” insert “(including adherence to and independent Code of Practice for Installation).”

Insert the following new Clause—

“Smart metering strategy

(1) The Secretary of State shall prepare and publish a strategy to deliver the intended benefits of smart meters to consumers, including in particular low income and vulnerable consumers.

(2) Before issuing the strategy the Secretary of State must consult—

(a) persons who appear to the Secretary of State to represent energy consumers;

(b) persons who appear to the Secretary of State to represent local authorities and voluntary groups interested in fuel poverty and energy efficiency;

(c) energy supply companies;

(d) Ofgem;

(e) persons who appear to the Secretary of State to represent health and social care providers;

(f) Ofcom and Ofwat;

(g) persons who appear to the Secretary of State to represent consumers of water services and telecommunications;

(h) the Information Commissioner;

(i) any other persons whom the Secretary of State considers it appropriate to consult.

(3) Such consultation must commence within two months of the coming into force of this part of the Act.

(4) The Secretary of State must publish the strategy within four months of the completion of the consultation.

(5) In preparing the strategy the Secretary of State must set out how the smart meter roll out will—

(a) deliver to consumers the benefits indentified in the Impact Assessment of July 2010;

(b) contribute to the carbon targets specified in the Climate Change Act 2006;

(c) contribute to the elimination of fuel poverty as specified in the Warm Homes and Conservation Act 2000;

(d) improve competition in the energy retail market, including in particular in relation to prepayment customers;

(e) provide for the interoperability of smart meters;

(f) work alongside wider Government programmes such as the Green Deal and water metering roll out;

(g) deliver potential savings to the health and social services.

(6) It is the duty of the Secretary of State to report on the progress of smart meter roll out to Parliament every year starting from one year after the coming into effect of this part of the Act.

(7) The report should cover progress on the delivery of smart meters to include—

(a) the number of smart meters installed in the United Kingdom, defined as per the Ofgem definition of a completed installation;

(b) the costs and savings of the smart meter roll out;

(c) the estimated benefits to consumers and taxpayers of the smart meter roll out with particular reference to low income and vulnerable consumers;

(d) estimated effects on the levels of fuel poverty;

(e) the estimated energy and carbon reduction from the smart meter roll out;

(f) the degree to which interoperability of smart meters has been achieved;

(g) customer satisfaction indicators, including levels of complaint;

(h) security of smart meters and smart grids in relation to privacy and commercial confidentiality.”

Insert the following new Clause—

“Energy tariffs

(1) After consultation with electrictiy and gas retail sellers and consumer groups, the Secretary of State shall introduce regulations that make it mandatory for electricity and gas through pipeline supply companies supplying to domestic properties to configure their tariffs so that the initial units of energy supplied are at a lower cost to the consumer than the remaining units.

(2) The number of units in the initial tranche shall reflect the basic energy requirement of a household.

(3) The new tariff scheme shall be revenue neutral to consumers and energy supply companies as a whole.”

Page 54, leave out lines 13 to 18 and insert “, in paragraph (f) (as inserted by section 20(7) of this Act), after “Part 1” insert “or section 72”.

( ) In section 81(2) of the Utilities Act 2000 (standard conditions of gas licences), after “Part 1” (as inserted by section 20(8) of this Act) insert “or section 72”.”

Insert the following new Clause—

“Accidental petroleum releases: verification of financial costs

After section 3 of the Petroleum Act 1998 (licences to search and bore for and get petroleum) insert—

“3A Accidental petroleum releases: verification of financial costs

(1) At the time of applying for a licence under section 3, the applicant must provide the Secretary of State with information showing that the applicant has sufficient funds to compensate any damage caused, or loss suffered, as a result of petroleum being accidentally released during the operation of that licence.

(2) The Secretary of State must make regulations, in particular, to provide for the type of financial and supporting information to be provided under subsection (1).

(3) Before issuing a licence under section 3, the Secretary of State must be satisfied that—

(a) the applicant has provided a complete and accurate record of information required by this Act and any regulations made under this Act; and

(b) on reviewing that information, has sufficient funds to compensate for any damage caused, or loss suffered, as a result of petroleum being accidentally released during the operation of the licence.

(4) In this section “sufficient funds” includes any insurance able to be claimed by the licensee in the circumstances outlined in subsection (1).”

Insert the following new Clause—

Amendment of section 166 of the Energy Act 2004

(1) Section 166 of the Energy Act 2004 (indemnities) is amended as follows.

(2) After subsection (3) insert—

“(3A) As soon as practicable after agreeing to indemnify persons under this section, the Secretary of State must lay a statement of the agreement before Parliament.”

(3) After subsection (6) insert—

“(6A) Where a sum has been paid out by the Secretary of State in consequence of an indemnity agreed to under this section, the Secretary of State must lay a statement relating to that sum before Parliament—

(a) as soon as practicable after the end of the financial year in which that sum is paid out; and

(b) (except where subsection (4) does not apply in the case of the sum) as soon as practicable after the end of each subsequent relevant financial year.

(6B) In relation to a sum paid out in consequence of an indemnity, a financial year is a relevant financial year for the purposes of subsection (6A) unless—

(a) before the beginning of that year, the whole of that sum has been repaid to the Secretary of State under subsection (4); and

(b) the company in question is not at any time during that year subject to liability to pay interest on amounts that became due under that subsection in respect of that sum.

Page 72, line 31, at end insert—

“( ) In section 33(1) of the Utilities Act 2000 (standard conditions of licences under Part 1 of the Electricity Act 1989), after “72” (as inserted by section 73(6) of this Act) insert “or 92”.”

Page 72, line 34, at end insert—

“( ) Sections 4AA to 4B of the Gas Act 1986 (principal objective and general duties) apply in relation to the powers of the Secretary of State under this section with respect to holders of gas licences as they apply in relation to functions of the Secretary of State under Part 1 of that Act.

( ) Sections 3A to 3D of the Electricity Act 1989 (principal objective and general duties) apply in relation to the powers of the Secretary of State under this section with respect to holders of electricity licences as they apply in relation to functions of the Secretary of State under Part 1 of that Act.”

Page 72, line 35, leave out from “section” to end of line 37 and insert “—

(a) references to a gas licence are to a licence for the purposes of section 5 of the Gas Act 1986 (prohibition on unlicensed activities relating to gas), and

(b) references to an electricity licence are to a licence for the purposes of section 4 of the Electricity Act 1989 (prohibition on unlicensed activities relating to electricity)”

Insert the following new Clause—

“Geothermal power

(1) The Secretary of State shall have the authority, after a period of consultation with industry, geological experts, the devolved administrations, local authorities, energy producers and other interested parties, to put into place for the United Kingdom a licensing system and regulations for the exploitation of heat from deep geothermal sources for both the direct use of that heat and for the generation of electricity.

(2) The licenses shall relate to—

(a) individual geographically delineated ares on land;

(b) the heat held by rocks greater than one kilometre below the surface.

(3) Licenses shall give exclusive exploration and production rights for the purpose of energy production from geothermal sources, both direct heat and electricity generation, to the licensee, for that area, and for a specific period of time.

(4) The Secretary of State shall have the authority to lay down regulations for the method of allocation of licenses to those organisations wishing to explore or exploit those resources (or both).

(5) Any organisation already undertaking exploration or exploitation from geothermal sources within the United Kingdom, in that they have already undertaken, at the time the licensing regime comes into force, boring for the purpose of exploiting geothermal heat to below one kilometre, shall be entitled to hold the first license awarded for that license area; and any licence fee or other consideration for that license area as a part of the licensing regime will then be determined by arbitration under rules determined by the Secretary of State reflecting the fees or other consideration paid for the licenses deemed to have similar potential.

(6) The holding of a licence for the exploration or exploitation of deep geothermal heat (or both) shall not convey any automatic rights in terms of planning permissions for surface development, or given any rights in terms of surface access.”

Insert the following new Clause—

“Compensation where the Secretary of State requests termination of offshore lease or agreement to lease

(1) The Secretary of State shall make a scheme (in this section, an “early termination compensation scheme”) to have effect where—

(a) a lease granted or agreement to lease has been made by the Crown Estates for the purpose of construction and operation of a generating station powered by wind, wave or tidal energy, or of equipment for transmission of electricity at a site in United Kingdom territorial waters or the REZ;

(b) that lease or agreement to lease gives the landlord power to determine the lease or agreement where the Secretary of State so requests on the basis that the whole site, or any part of it, is required in connection with oil or gas works or rights; and

(c) the landlord proposes to determine the lease or agreement, as regards the whole site or any part of it, as a result of such a request.

(2) An early termination compensation scheme—

(a) must require the owner of, or person seeking to exploit, the oil or gas works or rights in question to pay compensation to the full extent of the loss which is likely to be incurred including the recovery of any wasted expenditure, loss of profits and any consequential loss suffered as a result of such works, by the lessee or holder of the agreement to lease as a result of the determination;

(b) may, subject to paragraph (a), make such provision as the Secretary of State considers appropriate for the computation of compensation;

(c) must make provision for the procedure applicable to the making and determination of claims, including provision for resolution of matters, in the event of disagreement, by an independent body;

(d) must provide for the Secretary of State, when satisfied that compensation as required by the scheme has been agreed or resolved, so to certify in writing; and

(e) may contain such other provision as the Secretary of State considers appropriate.

(3) The landlord must not determine the lease or agreement to lease until the Secretary of State has certified the determination in accordance with subsection (2)(d).

(4) Subsections (1), (2), (5), (6), (7)(b) and (8) of section 33 apply, with the necessary modifications, to an early termination compensation scheme.”

Insert the following new Clause—

Production and supply of renewable energy by National Park authorities and the Broads Authority

(1) Section 11 of the Local Government (Miscellaneous Provisions) Act 1976 (production and supply of heat etc. by local authorities) is amended as follows.

(2) After subsection (1) insert—

“(1A) In subsection (1) the definition of a “local authority” shall be understood to include the Broads Authority and National Park authorities when applied to subsection (1)(a), (b) and (d) (production of heat or electricity or both; establishment and operation of generating stations for production of heat or electricity or both; and use or sale of heat or electricity).”

(3) In subsection (3), after “a local authority” insert “including the Broads Authority and National Park authorities”.”

Insert the following new Clause—

Energy revenues, taxes and subsidies: equitable price effects

(1) The Treasury shall publish an annual financial abstract of all fiscal and quasi-fiscal instruments, including revenues, tax expenditures and subsidies, which relate to the supply of energy, including hydrocarbons.

(2) The Office for Budget Responsibility shall produce annual assessments, having regard to each carbon budgetary period specified under the Climate Change Act 2008, of the incidence on each sector of the economy, including—

(a) manufacturing and services;

(b) public and private transport, including—

(i) road travel (by bus and private vehicles),

(ii) rail and air travel (both personal and freight);

(c) home and industrial heating.

(3) The Office for National Statistics shall publish in easily assimilable form an assessment of how each fiscal instrument or market intervention affects consumers with different levels of income.

(4) Both assessments shall be tabled for discussion at a periodic forum of industry, trade unions, consumers and other stakeholders; and the forum shall publish its minutes and executive summaries of documentation shall be circulated widely.”

Page 77, line 18, leave out “sections 9 and 11(2) to (4) and (8)” and insert “section 9”

Page 77, line 21, at end insert—

“( ) section (Acknowledgment of green deal plan in connection with other transactions etc)(3) (further provision made in regulations for acknowledgment of such a plan);”

Page 77, line 28, leave out “sections 10 and 11(5) to (7) and (9)” and insert “section 10”

Page 77, line 31, at end insert—

“( ) section (Acknowledgment of green deal plan in connection with other transactions etc)(4) (further provision made in regulations for acknowledgment of such a plan);”

Page 78, line 7, leave out “sections 10 and 11(5) to (7) and (9)” and insert “section 10”

Page 78, line 10, at end insert—

“( ) section (Acknowledgment of green deal plan in connection with other transactions etc)(4) (further provision made in regulations for acknowledgment of such a plan);”

Page 78, line 22, leave out “88” and insert “(Amendment of section 166 of the Energy Act 2004)”

Page 78, line 35, leave out “, 8(1) and (5)(a)”

Page 78, line 35, after “11” insert “, 12(1), (2)(a), (3)(a) and (4)”

Page 78, line 38, leave out “(except sub-paragraphs (1) and (5)(a) of that paragraph)”

Page 78, line 39, after “12” insert “(2)(b), (3)(b) and (5)”