Energy Bill (HL Bill 45)

(6) An order under this section shall not be made unless a draft of the

instrument containing it has been laid before, and approved by a

resolution of, each House of Parliament.

(7) The Secretary of State may make payments of such amounts as he or

5she considers appropriate to any body to which functions are

transferred by an order under this section.

(8) In this section—

• “carbon emissions reduction order” and “home-heating cost
  
  reduction order” have the same meaning as in section 103B;

• 10“enforcement function” means a function of the Authority under
  
  any of the provisions mentioned in paragraphs (a) or (b) of
  
  subsection (3);

• “transferee” means a person to whom functions are transferred by
  
  an order under this section.”

68 15Minor and consequential amendments

Schedule 1 contains minor and consequential amendments relating to this

Chapter.

CHAPTER 5 Information about energy consumption, efficiency and tariffs

Smart meters

69 20Smart meters

(1) Section 88 of the Energy Act 2008 (power to modify licence conditions etc:

smart meters) is amended in accordance with subsections (2) to (6).

(2) In subsection (1)(a) (type of licence that may be modified)—

(a) for “6(1)(c)” substitute “6(1)(b), (c)”;

(b) 25before “distribution” insert “transmission,”.

(3) In subsection (3) (non-exhaustive list of modifications that may be made) after

paragraph (j) insert—

“(ja) provision requiring the holder of a licence to supply

information to the Secretary of State or the Authority (or both)

30so as to enable them to assess any matter relating to the

provision, installation, or operation of meters;”.

(4) In subsection (4) (further provision about the manner in which the power may

be exercised) in paragraph (a) after “relation to” insert “different areas or”.

(5) In subsection (5) (period after which the power may not be exercised) for the

35words from “the end of the period of 5 years” to the end substitute “1

November 2018”.

(6) In subsection (6)(c) for “6(1)(c)” substitute “6(1)(b), (c)”.

(7) In section 56FB of the Electricity Act 1989 (supplemental provision about the

power to provide for activities connected with smart meters to be licensable

activities) in subsection (2) (period after which the power may not be exercised)

for the words from “the end of the period of 5 years” to the end substitute “1

November 2018”.

(8) In section 41HB of the Gas Act 1986 (supplemental provision about the power

5to provide for activities connected with smart meters to be licensable activities)

in subsection (2) (period after which the power may not be exercised) for the

words from “the end of the period of 5 years” to the end substitute “1

November 2018”.

Energy performance certificates

70 10Access to register of energy performance certificates etc: England and Wales

(1) The Secretary of State may make regulations for the purpose of authorising the

person keeping a register to disclose, in accordance with the provision made in

the regulations, the documents or data entered onto the register.

(2) The power under subsection (1) may be exercised, in particular, to make

15provision—

(a) excluding a document or data, or a specified part of a document or data,

from disclosure where the document or data relates to a specified

description of buildings;

(b) excluding a document or data, or a specified part of a document or data,

20from disclosure to a specified description of persons;

(c) restricting the number of disclosures made to a specified description of

persons;

(d) for a disclosure made to a specified description of persons to be subject

to specified conditions;

(e) 25as to the sanctions for non-compliance with any condition specified by

virtue of paragraph (d) (including sanctions preventing or restricting

future disclosures);

(f) in consequence of any provision which is made by virtue of paragraphs

(a) to (e).

(3) 30In subsection (1) “a register” means a register maintained under Part 6 of the

Energy Performance of Buildings (Certificates and Inspections) (England and

Wales) Regulations 2007 (S.I. 2007/991S.I. 2007/991).

(4) In subsection (2) “specified” means specified in the regulations made under

this section.

(5) 35Regulations under this section—

(a) may make different provision for different cases or circumstances or for

different purposes;

(b) are to be made by statutory instrument.

(6) A statutory instrument containing regulations under this section is subject to

40annulment in pursuance of a resolution of either House of Parliament.

(7) For the purposes of this section a reference to the disclosure of a document or

data includes a reference to disclosure of information derived from the

document or data.

71 Access to register of energy performance certificates etc: Scotland

(1) The Scottish Ministers may make regulations for the purpose of authorising or

requiring the person keeping a register to disclose, in accordance with the

provision made in the regulations, the documents or data entered onto the

5register.

(2) The power under subsection (1) may be exercised, in particular, to make

provision—

(a) excluding a document or data, or a specified part of a document or data,

from disclosure where the document or data relates to a specified

10description of buildings;

(b) excluding a document or data, or a specified part of a document or data,

from disclosure to a specified description of persons;

(c) restricting the number of disclosures made to a specified description of

persons;

(d) 15for a disclosure made to a specified description of persons to be subject

to specified conditions;

(e) as to the sanctions for non-compliance with any condition specified by

virtue of paragraph (d) (including sanctions preventing or restricting

future disclosures);

(f) 20in consequence of any provision which is made by virtue of paragraphs

(a) to (e).

(3) In subsection (1) “a register” means a register maintained under regulation 10

of the Energy Performance of Buildings (Scotland) Regulations 2008 (S.S.I.

2008/309).

(4) 25In subsection (2) “specified” means specified in the regulations made under

this section.

(5) Regulations under this section—

(a) may make different provision for different cases or circumstances or for

different purposes;

(b) 30are to be made by statutory instrument.

(6) A statutory instrument containing regulations under this section is subject to

annulment in pursuance of a resolution of the Scottish Parliament.

(7) For the purposes of this section a reference to the disclosure of a document or

data includes a reference to disclosure of information derived from the

35document or data.

Information about tariffs

72 Power to modify energy supply licences: information about tariffs

(1) The Secretary of State may modify—

(a) a condition of a particular licence under section 7A(1) of the Gas Act

401986 (supply licences);

(b) the standard conditions incorporated in licences under that provision

by virtue of section 8 of that Act;

(c) a condition of a particular licence under section 6(1)(d) of the Electricity

Act 1989 (supply licences);

(d) the standard conditions incorporated in licences under that provision

by virtue of section 8A of that Act.

(2) The power under subsection (1) may be exercised for the purpose only of

securing that a licence holder provides a customer on a domestic tariff with

5information about one or more of the licence holder’s lowest domestic tariffs.

(3) The information to be provided about a tariff by virtue of subsection (2) may,

in particular, include information about—

(a) the amount of the tariff;

(b) the amount the customer would have paid or saved in relation to any

10past period if the customer had been on the tariff for that period;

(c) the amount the customer would be likely to pay or save in relation to

any future period if the customer were on the tariff for that period;

(d) where to find further information about the tariff;

(e) how to switch to it.

(4) 15Modifications under subsection (1) may, in particular, include provision

regarding—

(a) which one or more domestic tariffs of a licence holder are its lowest

domestic tariffs;

(b) which of its lowest domestic tariffs a licence holder must provide

20information about;

(c) how and when the information must be provided;

(d) the form in which it must be provided.

(5) The power under subsection (1)—

(a) may be exercised generally, only in relation to specified cases or subject

25to exceptions (including provision for a case to be excepted only so long

as specified conditions are satisfied);

(b) may be exercised differently in different cases or circumstances;

(c) includes a power to make consequential modifications.

(6) Provision included in licences by virtue of the power may make different

30provision for different cases.

(7) The power under subsection (1) may not be exercised after 1 November 2018.

(8) In this section—

• “domestic supply contract” means a contract for the supply of gas or
  
  electricity by a licence holder to a customer at domestic premises
  
  35wholly or mainly for domestic purposes;

• “domestic tariff” means a tariff under a domestic supply contract.

73 Power to modify energy supply licences: procedure and supplemental

(1) Before making a modification, the Secretary of State must consult—

(a) the holder of any licence being modified,

(b) 40the Gas and Electricity Markets Authority, and

(c) such other persons as the Secretary of State considers appropriate.

(2) Subsection (1) may be satisfied by consultation before, as well as by

consultation after, the passing of this Act.

(3) The Secretary of State must publish details of any modifications as soon as

reasonably practicable after they are made.

(4) A modification of part of a standard condition of a particular licence does not

prevent any other part of the condition from continuing to be regarded as a

5standard condition for the purposes of Part 1 of the Gas Act 1986 or Part 1 of

the Electricity Act 1989.

(5) Where the Secretary of State makes a modification of the standard conditions

of a licence of any type, the Gas and Electricity Markets Authority must make

the same modification of those standard conditions for the purposes of their

10incorporation in licences of that type granted after that time.

(6) 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) 15under section 72 of the Energy Act 2011.”

(7) 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 section 72 of the Energy Act 2011”.

(8) In this section “modification” means a modification under section 72.

74 20General duties of the Secretary of State

(1) Sections 4AA to 4B of the Gas Act 1986 (principal objective and general duties)

apply in relation to functions of the Secretary of State under section 72 or 73 of

this Act with respect to holders of licences under section 7A(1) of that Act as

they apply in relation to functions of the Secretary of State under Part 1 of that

25Act.

(2) Sections 3A to 3D of the Electricity Act 1989 (principal objective and general

duties) apply in relation to functions of the Secretary of State under section 72

or 73 of this Act with respect to holders of licences under section 6(1)(d) of that

Act as they apply in relation to functions of the Secretary of State under Part 1

30of that Act.

Part 2 Security of energy supplies

CHAPTER 1 Electricity supply

75 Annual report by Gas and Electricity Markets Authority on security of

35electricity supply

Before section 47 of the Electricity Act 1989 (and after the cross-heading

immediately preceding that section) insert—

47ZA  Annual report by Authority on security of electricity supply

(1) The Authority must, before 1 September 2012, and before that date in

40every subsequent calendar year—

(a) prepare a report on the future demand for, and supply of,

electricity in Great Britain, in accordance with subsection (2),

and

(b) send the report to the Secretary of State.

(2) 5A report under subsection (1) must include, as regards each forecast

period—

(a) a forecast of the peak demand for the supply of electricity to

consumers in Great Britain;

(b) an assessment of different possible capacity margins for that

10supply, and of the degree of protection that each would provide

against the risk of shortfalls in supply due to unexpected

demand or unexpected loss of capacity.

(3) The forecast periods in relation to a report under subsection (1) are—

(a) each of the four calendar years immediately following the year

15of the report; or

(b) any other periods that the Secretary of State specifies by order.

(4) A forecast by virtue of subsection (2)(a) must be expressed as a single

figure in megawatts rounded to the nearest 100 megawatts, unless the

Secretary of State directs otherwise.

(5) 20An assessment by virtue of subsection (2)(b) must take into account, in

particular—

(a) the generation of electricity;

(b) the operation of electricity interconnectors;

(c) the storage of electricity;

(d) 25the extent to which the available capacity of a generating station

is likely to be lower than its maximum possible capacity due to

routine maintenance, weather conditions or any other expected

limitation on its operation;

(e) demand side response.

(6) 30A forecast or assessment by virtue of subsection (2) may to any extent

be made by, or based on information provided by—

(a) the holder of a transmission licence;

(b) any other person.

(7) The Secretary of State may give the Authority directions regarding—

(a) 35the form of a report under subsection (1);

(b) the manner in which such a report must be prepared or sent;

(c) the manner in which a forecast or assessment by virtue of

subsection (2) must be made or expressed (including, in

particular, the method of calculation of any of the things

40mentioned in subsection (2)(a) or (b)).

(8) In this section—

• “capacity margin” means the amount by which the peak demand
  
  for the supply of electricity is exceeded by the capacity likely to
  
  be available to meet that demand;

• 45“consumers” includes both existing and future consumers;

Energy BillPage 56

• “demand side response” means the cessation of, or a reduction in,
  
  the provision of electricity to a person at times of high demand,
  
  by agreement with the person.”

76 Annual report by Secretary of State on security of energy supplies

(1) 5Section 172 of the Energy Act 2004 (annual report by Secretary of State on

security of energy supplies) is amended as follows.

(2) After subsection (2) insert—

“(2A) In 2012 and in every subsequent calendar year the report must also

include, in particular, as regards each of the assessment periods, an

10assessment by the Secretary of State of what electricity supply capacity

is required.

(2B) For the purposes of subsection (2A) the electricity supply capacity

required is the capacity required for the purpose of meeting the

demands of consumers for the supply of electricity in Great Britain,

15including spare capacity to allow for unexpected demands or

unexpected loss of capacity.

(2C) The assessment periods, in relation to a report under subsection (1),

are—

(a) each of the four calendar years immediately following the year

20of the report; or

(b) any other periods that the Secretary of State specifies by order.

(2D) An assessment by virtue of subsection (2A) must take into account, in

particular—

(a) the generation of electricity;

(b) 25the operation of electricity interconnectors;

(c) the storage of electricity;

(d) the extent to which the available capacity of a generating station

is likely to be lower than its maximum possible capacity due to

routine maintenance, weather conditions or any other expected

30limitation on its operation;

(e) demand side response.”

(3) In subsection (3), after “report” insert “, other than the assessment by virtue of

subsection (2A),”.

(4) After subsection (3) insert—

“(3A) 35An order under this section is subject to the negative resolution

procedure.”

(5) In subsection (4)—

(a) after the definition of “consumers” insert—

• ““demand side response” means the cessation of, or a reduction in,
  
  40the provision of electricity to a person at times of high demand,
  
  by agreement with the person;”;

(b) after “distribution system,” insert ““electricity interconnector”,

“generating station”, “generation”, “supply,””.

CHAPTER 2 Gas supply

77 Power of the Gas and Electricity Markets Authority to direct a modification of

the Uniform Network Code

(1) After section 36B of the Gas Act 1986 insert—

“36C 5Power to direct a modification of the UNC

(1) The Authority may direct the operator of the gas National

Transmission System to make a modification to which this section

applies and which is specified in the direction to the Uniform Network

Code.

(2) 10This section applies to a modification—

(a) which relates to the arrangements contained in the Code in

respect of a Gas Supply Emergency, and

(b) which the Authority considers is a market-based modification.

(3) The Authority may give a direction under this section only if it

15considers that the modification will do either or both of the following—

(a) decrease the likelihood of a Gas Supply Emergency occurring;

(b) decrease the duration or severity of a Gas Supply Emergency

which occurs.

(4) In the exercise of the power under this section the Authority must have

20regard to the purposes of Standard Special Condition A11 of licences

granted under section 7 of this Act.

(5) For the purposes of subsection (2), a modification is “market-based” if

it relates to the creation of financial incentives for gas shippers or gas

transporters.

(6) 25Before giving a direction under this section the Authority must consult

such persons as it considers appropriate.

(7) In this section—

• “Gas Supply Emergency” and “National Transmission System”
  
  have the meaning given by the Uniform Network Code;

• 30“the Uniform Network Code” means the document of that title
  
  required to be prepared pursuant to Standard Special Condition
  
  A11 of licences granted under section 7 of this Act.”

(2) The requirement of subsection (6) of section 36C of the Gas Act 1986 may be

satisfied by consultation undertaken before the commencement of subsection

35(1) of this section or the passing of this Act.

(3) In section 38A of the Gas Act 1986 (reasons for decisions), in subsection (1),

after paragraph (e) insert—

“(ea) the giving of a direction under section 36C;”.

(4) In section 173 of the Energy Act 2004 (appeals to the Competition

Commission), after subsection (2) insert—

“(2A) This section also applies to a decision by GEMA to give a direction

under section 36C of the Gas Act 1986 (power to direct a modification

of the Uniform Network Code).

(2B) 5But subsection (2A) does not have effect in relation to such a decision if

it falls within a description of decisions for the time being excluded

from the right of appeal under this section by an order made by the

Secretary of State.”

(5) In section 175 of the Energy Act 2004 (determination of appeals), in subsection

10(4)(b) for “the purposes for which the relevant condition has effect” substitute

“—

“(i) the purposes for which the relevant condition has effect

(in the case of an appeal by virtue of section 173(2)), or

(ii) the purposes of the power to give a direction under

15section 36C of the Gas Act 1986 or the purposes of

Standard Special Condition A11 of licences granted

under section 7 of that Act (in the case of an appeal by

virtue of section 173(2A))”.

(6) In Schedule 22 to the Energy Act 2004 (procedure for appeals under section 173

20of that Act), in paragraph 3(6) (suspension of a decision) after “direction” insert

“(including a direction being appealed against by virtue of section 173(2A) of

this Act)”.

CHAPTER 3 Upstream petroleum infrastructure

78 Acquisition of rights to use upstream petroleum infrastructure

(1) 25This section applies where—

(a) a person makes an application to the owner of a relevant upstream

petroleum pipeline for a right to have things of a kind specified in the

application conveyed by the pipeline during such period as is so

specified and in such quantities as are so specified;

(b) 30a person makes an application to the owner of a relevant oil processing

facility for a right to have petroleum of a kind specified in the

application processed by the facility during such period as is so

specified and in such quantities as are so specified; or

(c) a person makes an application to the owner of a relevant gas processing

35facility for a right to have gas of a kind specified in the application

processed by the facility during such period as is so specified and in

such quantities as are so specified.

And references in this section to “the access application” are to the application

made to the owner of the pipeline or facility.

(2) 40For the purposes of subsection (1) an upstream petroleum pipeline, an oil

processing facility or a gas processing facility is “relevant” if and in so far as it

is situated—

(a) in Great Britain;

(b) in the territorial sea adjacent to Great Britain; or

(c) in the sea in any area designated under section 1(7) of the Continental

Shelf Act 1964;

but an upstream petroleum pipeline which is so situated is not “relevant” if it

is a pipeline to which section 17GA of the Petroleum Act 1998 applies

5(petroleum pipelines subject to Norwegian access system).

(3) If the applicant and the owner do not reach agreement on the access

application, the applicant may apply to the Secretary of State for a notice under

subsection (10) which would secure to the applicant the right sought in the

access application.

(4) 10The Secretary of State may not consider an application under subsection (3)

unless satisfied that the applicant and the owner have had a reasonable time in

which to reach agreement.

(5) When considering an application under subsection (3) the Secretary of State

must—

(a) 15decide whether the application is to be—

(i) rejected,

(ii) adjourned to enable further negotiation between the applicant

and the owner, or

(iii) considered further, and

(b) 20in the case of a decision to consider the application further, give an

opportunity to be heard to—

(i) the applicant and the owner;

(ii) any person with a right to have anything conveyed by the

pipeline or processed by the facility;

(iii) 25the Health and Safety Executive;

(iv) such other persons as the Secretary of State considers

appropriate.

(6) When giving further consideration to an application under subsection (3) the

Secretary of State must (so far as relevant) take into account—

(a) 30capacity which is or can reasonably be made available in the pipeline or

at the facility;

(b) any incompatibilities of technical specification which cannot

reasonably be overcome;

(c) difficulties which cannot reasonably be overcome and which could

35prejudice the efficient, current and planned future production of

petroleum;

(d) the reasonable needs of the owner and any associate of the owner for

the conveying and processing of petroleum;

(e) the interests of all users and operators of the pipeline or facility;

(f) 40the need to maintain security and regularity of supplies of petroleum;

and

(g) the number of parties involved in the dispute.

(7) The Secretary of State may give a notice under subsection (10) only if the

condition in subsection (8) or (9) is met.