Energy Bill (HL Bill 45)

(2) Those means are—

(a) the rescue as a going concern of the company subject to the esc

administration order; and

(b) transfers falling within subsection (3).

(3) 5A transfer falls within this subsection if it is a transfer as a going concern—

(a) to another company, or

(b) as respects different parts of the undertaking of the company subject to

the esc administration order, to two or more different companies,

of so much of that undertaking as it is appropriate to transfer for the purpose

10of achieving the objective of the energy supply company administration.

(4) The means by which transfers falling within subsection (3) may be effected

include, in particular—

(a) a transfer of the undertaking of the company subject to the esc

administration order, or of a part of its undertaking, to a wholly-owned

15subsidiary of that company; and

(b) a transfer to a company of securities of a wholly-owned subsidiary to

which there has been a transfer falling within paragraph (a).

(5) The objective of an energy supply company administration may be achieved

by transfers falling within subsection (3) to the extent only that—

(a) 20the rescue as a going concern of the company subject to the esc

administration order is not reasonably practicable or is not reasonably

practicable without such transfers;

(b) the rescue of that company as a going concern will not achieve that

objective or will not do so without such transfers;

(c) 25such transfers would produce a result for the company’s creditors as a

whole that is better than the result that would be produced without

them; or

(d) such transfers would, without prejudicing the interests of those

creditors as a whole, produce a result for the company’s members as a

30whole that is better than the result that would be produced without

them.

90 Application of certain provisions of the Energy Act 2004 in relation to esc

administration orders

(1) Sections 156 to 167 of, and Schedules 20 and 21 to, the Energy Act 2004 (special

35administration regime for energy licensees) apply in relation to an esc

administration order as they apply in relation to an energy administration

order within the meaning given by section 154(1) of that Act, but with the

modifications set out in subsections (2) to (4).

(2) In the application of those provisions generally—

(a) 40for “energy administration”, in each place where it occurs, substitute

“energy supply company administration”;

(b) for “a protected energy company”, in each place where it occurs,

substitute “an energy supply company”.

(3) In the application of Schedule 20—

(a) 45in paragraph 32(d), for the words from “““energy administration

application”” to “Energy Act 2004” substitute “““energy supply

company administration application” means an application to the court

for an energy supply company administration order under Chapter 3

of Part 3 of the Energy Act 2004, as applied by section 90 of the Energy

Act 2011”;

(b) in paragraph 32(e), for “section 155 of the Energy Act 2004” substitute

5“section 89 of the Energy Act 2011”;

(c) in paragraph 36, for “section 154(4) of this Act” substitute “section 88(4)

of the Energy Act 2011”;

(d) in paragraph 43, after “the Energy Act 2004” insert “and section 90 of

the Energy Act 2011”;

(e) 10in paragraph 44(5), after “the Energy Act 2004” insert “and section 90 of

the Energy Act 2011”;

(f) in paragraph 45, after “section 157(1)(e) of this Act” insert “as applied

by section 90 of the Energy Act 2011”;

(g) in paragraph 47, after “Part 1 of this Schedule” insert “and section 90 of

15the Energy Act 2011”.

(4) In the application of Schedule 21—

(a) in paragraph 1(b), for “section 155(3)” substitute “section 89(3) of the

Energy Act 2011”;

(b) in paragraph 12, for “section 155” substitute “section 89 of the Energy

20Act 2011”.

(5) Sections 171 and 196 of the Energy Act 2004 (interpretation) apply for the

purposes of the application by subsection (1) of the provisions mentioned in

that subsection, but with the modifications set out in subsection (6).

(6) In the application of section 171(1)—

(a) 25insert, at the appropriate places, the following definitions—

• ““energy supply company” has the meaning given by section 88(5)
  
  of the Energy Act 2011;”;

• ““energy supply company administration order” has the meaning
  
  given by section 88(1) of the Energy Act 2011;”;

• 30““energy supply company administration rules” means rules
  
  made under section 411 of the 1986 Act by virtue of section
  
  159(3) of this Act, for the purpose of giving effect to this Chapter
  
  as applied by section 90 of the Energy Act 2011;”;

• ““objective of the energy supply company administration” is to be
  
  35construed in accordance with section 89 of the Energy Act
  
  2011;”;

(b) in the definition of “energy administrator” for “section 154(2)”

substitute “section 88(2) of the Energy Act 2011”;

(c) in the definition of “relevant licence” for “section 154(5)” substitute

40“section 88(5) of the Energy Act 2011”.

91 Conduct of administration, transfer schemes, etc

In section 159(3) of the Energy Act 2004 (conduct of administration, transfer

schemes, etc under Chapter 3 of Part 3 of that Act), after “Chapter”, in the

second place where it appears, insert “(including this Chapter as applied by

45section 90 of the Energy Act 2011)”.

92 Modifications of particular or standard conditions

(1) Where the Secretary of State considers it appropriate to do so in connection

with the provision made by this Chapter, the Secretary of State may make—

(a) modifications of the conditions of a gas or electricity licence held by a

5particular person;

(b) modifications of the standard conditions of such licences of any type.

(2) The power to make modifications under this section includes power to make

incidental, consequential or transitional modifications.

(3) Before making a modification under this section, the Secretary of State must

10consult—

(a) the holder of any licence being modified; and

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

(4) Subsection (3) may be satisfied by consultation that took place wholly or partly

before the commencement of this section.

(5) 15The Secretary of State must publish every modification made under this

section.

(6) The publication must be in such manner as the Secretary of State considers

appropriate.

(7) A modification under subsection (1)(a) of part of a standard condition of a

20licence does not prevent any other part of the condition from continuing to be

regarded as a standard condition for the purposes of Part 1 of the Gas Act 1986

or Part 1 of the Electricity Act 1989.

(8) Where the Secretary of State makes modifications under subsection (1)(b) of

the standard conditions of licences of any type, the Gas and Electricity Markets

25Authority must—

(a) make (as nearly as may be) the same modifications of those standard

conditions for the purposes of their incorporation in licences of that

type granted after that time; and

(b) publish the modifications in such manner as it considers appropriate.

(9) 30The Secretary of State’s powers under this section are exercisable only during

the eighteen months beginning with the commencement of this section.

(10) In section 81(2) of the Utilities Act 2000 (standard conditions of licences under

Part 1 of the Gas Act 1986), after “72” (as inserted by section 73(7) of this Act)

insert “or 92”.

(11) 35In this section “gas or electricity licence” means a licence for the purposes of

section 5 of the Gas Act 1986 or section 4 of the Electricity Act 1989 (prohibition

on unlicensed activities).

93 Licence conditions to secure funding of energy supply company

administration

(1) 40The modifications that may be made under section 92 include, in particular,

modifications imposing conditions requiring the holder of the licence—

(a) so to modify the charges imposed by the licence holder for anything

done by the licence holder in the carrying on of the licensed activities as

to raise such amounts as may be determined by or under the

conditions; and

(b) to pay the amounts so raised to such persons as may be so determined

for the purpose of—

(i) 5their applying those amounts in making good any shortfall in

the property available for meeting the expenses of an energy

supply company administration; or

(ii) enabling those persons to secure that those amounts are so

applied.

(2) 10Those modifications may include modifications imposing on the licence holder

an obligation to apply amounts paid to the licence holder in pursuance of

conditions falling within subsection (1)(a) or (b) in making good any such

shortfall.

(3) For the purposes of this section—

(a) 15there is a shortfall in the property available for meeting the costs of an

energy supply company administration if, in a case where a company

is or has been subject to an energy supply company administration

order, the property available (apart from conditions falling within

subsection (1) or (2)) for meeting relevant debts is insufficient for

20meeting them; and

(b) amounts are applied in making good that shortfall if they are paid in or

towards discharging so much of a relevant debt as cannot be met out of

the property otherwise available for meeting relevant debts.

(4) In this section “relevant debt” in relation to a case in which a company is or has

25been subject to an energy supply company administration order, means an

obligation—

(a) to make payments in respect of the expenses or remuneration of any

person as the energy administrator of that company;

(b) to make a payment in discharge of a debt or liability of that company

30arising out of a contract entered into at a time when the order was in

force by the person who at that time was the energy administrator of

that company;

(c) to repay the whole or a part of a grant made to that company under

section 165 of the Energy Act 2004 as applied by section 90 of this Act;

(d) 35to repay a loan made to the company under that section as so applied,

or to pay interest on such a loan;

(e) to make a payment under section 166(4) of that Act as so applied; or

(f) to make a payment under section 167(5) of that Act as so applied.

94 Modifications under the Enterprise Act 2002

(1) 40The power to modify or apply enactments conferred on the Secretary of State

by each of the sections of the Enterprise Act 2002 mentioned in subsection (2)

includes power to make such consequential modifications of this Chapter as

the Secretary of State considers appropriate in connection with any other

provision made under that section.

(2) 45Those sections are—

(a) sections 248 and 277 (amendments consequential on that Act); and

(b) section 254 (power to apply insolvency law to foreign companies).

(3) In section 170(1) of the Energy Act 2004 (modification of Chapter 3 of Part 3 of

that Act under the Enterprise Act 2002) after “Chapter” insert “(including this

Chapter as applied by section 90 of the Energy Act 2011)”.

95 Power to make further modifications of insolvency legislation

(1) 5The power of the Secretary of State under paragraph 46 of Schedule 20 to the

Energy Act 2004 (conduct of energy administration) to make modifications

includes power to make such modifications as the Secretary of State considers

appropriate in relation to any provision made by or under this Chapter.

(2) In paragraph 46 of that Schedule, after “Chapter” insert “(including this

10Chapter as applied by section 90 of the Energy Act 2011)”.

96 Interpretation of Chapter 4

(1) In this Chapter—

• “business”, “member” and “property” have the same meanings as in the
  
  Insolvency Act 1986;

• 15“company” means—

  (a)

  a company registered under the Companies Act 2006, or

  (b)

  an unregistered company;

• “court”, in relation to a company, means the court—

  (a)

  having jurisdiction to wind up the company, or

  (b)

  20that would have such jurisdiction apart from section 221(2) or
  
  441(2) of the Insolvency Act 1986 (exclusion of winding up
  
  jurisdiction in case of companies having principal place of
  
  business in, or incorporated in, Northern Ireland);

• “energy administrator” has the meaning given by section 88(2) and is to
  
  25be construed in accordance with subsection (2) of this section;

• “energy supply company administration order” has the meaning given by
  
  section 88(1);

• “energy supply company’” has the meaning given by section 88(5);

• “modification” includes omission, addition or alteration, and cognate
  
  30expressions are to be construed accordingly;

• “non-GB company” means a company incorporated outside Great Britain;

• “objective of the energy supply company administration” is to be
  
  construed in accordance with section 89;

• “relevant licence” has the meaning given by section 88(5);

• 35“subsidiary” and “wholly-owned subsidiary” have the meanings given by
  
  section 1159 of the Companies Act 2006;

• “unregistered company” means a company that is not registered under
  
  the Companies Act 2006.

(2) In this Chapter references to the energy administrator of a company—

(a) 40include references to a person appointed under paragraph 91 or 103 of

Schedule B1 to the Insolvency Act 1986, as applied by Part 1 of Schedule

20 to the Energy Act 2004 and section 90 of this Act to be the energy

administrator of that company; and

(b) where two or more persons are appointed to be the energy

45administrator of that company, are to be construed in accordance with

the provision made under section 158(5) of the Energy Act 2004, as

applied by section 90 of this Act.

CHAPTER 5 Continental shelf

97 Revocation etc of designations under Continental Shelf Act 1964

5In section 1(7) of the Continental Shelf Act 1964 (power by Order in Council to

designate an area as an area within which rights with respect to the sea bed etc

are exercisable), for “revoke Orders for the purpose of consolidating them”

substitute “revoke, amend or re-enact Orders”.

Part 3 10Low carbon generation

Offshore electricity

98 Offshore transmission and distribution of electricity: extension of time for

licence modifications and property scheme applications

(1) In section 90 of the Energy Act 2004 (modification of licence conditions for

15offshore transmission and distribution of electricity), in each of subsections (3)

and (8) (time periods for consulting on and making modifications) for “the

commencement of this section” substitute “the passing of the Energy Act 2011”.

(2) In section 91 of the Energy Act 2004 (extension of electricity transmission

licences offshore), in each of subsections (6) and (11) (time periods for

20consulting on and making modifications) for “the commencement of this

section” substitute “the passing of the Energy Act 2011”.

(3) In Schedule 2A to the Electricity Act 1989 (property schemes in respect of

licences for offshore transmission of electricity), in paragraph 5(5) (maximum

possible period during which an application for a scheme may be made) for “7

25years” substitute “16 years”.

Decommissioning nuclear sites

99 Agreement about modifying decommissioning programme

(1) Section 46 of the Energy Act 2008 (approval of a decommissioning programme)

is amended as follows.

(2) 30After subsection (3) insert—

“(3A) When approving a programme the Secretary of State may agree to

exercise, or not to exercise, the section 48 power—

(a) in a particular manner;

(b) within a particular period.

(3B) 35An agreement under subsection (3A) may subsequently be amended by

the Secretary of State and the other party to the agreement.

(3C) Subsections (3A) and (3B) apply notwithstanding that the agreement or

amendment fetters the Secretary of State’s discretion.

(3D) In subsection (3A) “section 48 power” means the power of the Secretary

of State under section 48 to propose a modification of the programme

5or a modification of the conditions to which the approval of the

programme is subject.”

(3) In subsection (4) for “(3)” substitute “(3B)”.

Part 4 Coal Authority

100 10Additional powers of the Coal Authority: England and Wales

(1) After section 4C of the Coal Industry Act 1994 insert—

“4CA Further powers relating to subsidence and water discharge

(1) The Authority may take such action as it considers appropriate (if

any)—

(a) 15with respect to subsidence arising otherwise than in connection

with coal-mining;

(b) for the purpose of preventing, or mitigating the effect of, the

discharge of water other than from a coal mine into or on to any

land or into any controlled waters.

(2) 20The powers conferred on the Authority by subsection (1) do not affect

any other function of the Authority.”

(2) In section 4A of that Act (power of the Coal Authority with respect to coal mine

water discharge), in subsection (2), for “and 4C” substitute “, 4C and 4CA”.

101 Additional powers of the Coal Authority: Scotland

(1) 25After section 4F of the Coal Industry Act 1994 insert—

“4G Further powers relating to subsidence and water discharge: Scotland

(1) The Authority may take such action as it considers appropriate (if

any)—

(a) with respect to subsidence arising otherwise than in connection

30with coal-mining;

(b) for the purpose of preventing, or mitigating the effect of, the

discharge of water other than from a coal mine into or on to any

land or into the water environment.

(2) The powers conferred on the Authority by subsection (1) do not affect

35any other function of the Authority.”

(2) In section 4D of that Act (power of the Coal Authority with respect to coal mine

water discharge in Scotland), in subsection (2), for “and 4F” substitute “, 4F and

4G”.

Part 5 Miscellaneous and general

Miscellaneous

102 Repeal of measures relating to home energy efficiency

(1) 5Subject to the saving in subsection (2) of this section, the Home Energy

Conservation Act 1995 ceases to have effect in England and Wales and

Scotland.

(2) The definitions in section 1 of that Act continue to have effect for the purposes

of the Sustainable Energy Act 2003.

(3) 10Section 217 of the Housing Act 2004 (energy efficiency of residential

accommodation in England) ceases to have effect.

(4) Schedule 3 contains repeals and revocations consequential on this section.

General

103 Extent

(1) 15Subject to subsections (2) to (5), this Act extends to England and Wales and

Scotland only.

(2) The following provisions extend to England and Wales only—

(a) sections 9 and 11(2) to (4) and (8) (documents containing information

about green deal plans: England and Wales),

(b) 20section 13(3) to (5) (acknowledgment of green deal plan in respect of

property in England or Wales),

(c) sections 35 to 47 (private rented sector: England and Wales),

(d) section 70 (access to register of energy performance certificates etc:

England and Wales), and

(e) 25section 100 (additional powers of the Coal Authority: England and

Wales).

(3) The following provisions extend to Scotland only—

(a) sections 10 and 11(5) to (7) and (9) (documents containing information

about green deal plans: Scotland),

(b) 30section 13(6) to (8) (acknowledgment of green deal plan in respect of

property in Scotland),

(c) sections 48 to 60 (private rented sector: Scotland),

(d) section 71 (access to register of energy performance certificates etc:

Scotland), and

(e) 35section 101 (additional powers of the Coal Authority: Scotland).

(4) Subject to section 102(1) and subsection (5) below, an amendment or repeal of

an enactment has the same extent as the enactment amended or repealed.

(5) The amendments made by sections 23 to 26 (green deal: modifying consumer

credit legislation) extend to England and Wales and Scotland only.

104 Commencement

(1) The provisions of this Act come into force on such day as the Secretary of State

may by order made by statutory instrument appoint, subject to subsections (2)

to (5).

(2) 5The following provisions come into force on such day as the Scottish Ministers

may by order made by statutory instrument appoint—

(a) sections 10 and 11(5) to (7) and (9) (documents containing information

about green deal plans: Scotland);

(b) section 13(6) to (8) (acknowledgment of green deal plan in respect of

10property in Scotland);

(c) sections 48 to 60 (private rented sector: Scotland);

(d) section 71 (access to register of energy performance certificates etc:

Scotland).

(3) The following provisions come into force at the end of the period of two

15months beginning with the day on which this Act is passed—

(a) sections 61 to 68 (reducing carbon emissions and home-heating costs);

(b) section 69 (smart meters);

(c) section 70 (access to register of energy performance certificates etc:

England and Wales);

(d) 20sections 72 to 74 (information about tariffs);

(e) sections 75 and 76 (security of electricity supply);

(f) sections 88 to 96 (special administration);

(g) section 97 (designations under Continental Shelf Act 1964);

(h) subsection (3) of section 98 (offshore transmission and distribution of

25electricity);

(i) section 99 (agreement about modifying decommissioning programme).

(4) The following provisions come into force on the day on which this Act is

passed—

(a) section 77 (modification of the Uniform Network Code);

(b) 30subsections (1) and (2) of section 98 (offshore transmission and

distribution of electricity);

(c) section 103, this section and section 105 (general provisions).

(5) Schedule 1 (reducing carbon emissions and home-heating costs: minor and

consequential amendments) comes into force as follows—

(a) 35paragraphs 1 to 5, 7, 8(1) and (5)(a), 11 and 13 come into force at the end

of the period of two months beginning with the day on which this Act

is passed;

(b) paragraph 8 (except sub-paragraphs (1) and (5)(a) of that paragraph)

and paragraph 12 come into force on 1 January 2013;

(c) 40paragraphs 6, 9 and 10 come into force on 6 April 2014.

(6) An order made by the Secretary of State or the Scottish Ministers under this

section may—

(a) appoint different days for different purposes;

(b) make transitional provision and savings.

105 Short title

This Act may be cited as the Energy Act 2011.