Energy Bill (HL Bill 45)

Part 1 Energy efficiency

CHAPTER 1 Green deal

Introductory

1 5Green deal plans

(1) This section applies for the purposes of this Chapter.

(2) An energy plan is an arrangement made by the occupier or owner of a property

for a person to make energy efficiency improvements to the property.

(3) An energy plan is a green deal plan if—

(a) the energy efficiency improvements are to be paid for wholly or partly

5in instalments, and

(b) all of the requirements listed in paragraphs (a) to (e) of subsection (4)

are met in relation to the plan at the time when it is made.

(4) The requirements are—

(a) the property is an eligible property,

(b) 10the energy efficiency improvements fall within a description specified

in an order made by the Secretary of State (“qualifying energy

improvements”),

(c) the conditions mentioned in section 4 as to assessment of the property

and other matters have been met,

(d) 15the conditions mentioned in section 5 as to the terms of the plan and

other matters are met, and

(e) a relevant energy supplier supplies, or is to supply, energy to the

property.

(5) Subsection (6) applies to a green deal plan from the time when—

(a) 20improvements have been installed in accordance with section 7,

(b) the plan is confirmed in accordance with section 8, and

(c) the requirements imposed by virtue of section 9 or 10 are met.

(6) The payments in instalments agreed in the plan are to be—

(a) made by the person who is for the time being liable to pay the energy

25bills for the property, and

(b) made to the relevant energy supplier through the energy bills for the

property.

(7) Subsection (6) applies irrespective of whether the person referred to in

paragraph (a) is the person who entered into the plan.

(8) 30Subsection (6) is subject to—

(a) provision made in regulations under section 30;

(b) any suspension or cancellation, by virtue of provision made in

regulations under section 3(3)(h) or (i), 6(4), 14 or 31, of liability to make

payments.

(9) 35For the purposes of subsection (4)(a) a property is an eligible property unless it

falls within a description specified in an order made by the Secretary of State.

2 Green deal plans: supplementary

(1) This section applies for the purposes of this Chapter.

(2) The occupier or owner who makes the arrangement referred to in section 1(2)

40is the “improver” and the person who makes the improvements is the “green

deal provider”.

(3) The person referred to in section 1(6)(a) is the “bill payer”.

(4) References to energy efficiency improvements, in relation to a property, are

to—

(a) measures for improving efficiency in the use in the property of

electricity, gas conveyed through pipes or any other source of energy

which is specified in an order made by the Secretary of State, or

(b) measures falling within subsection (5) or (6).

(5) 5Measures fall within this subsection if—

(a) they are any of the following—

(i) measures for increasing the amount of electricity generated, or

heat produced, by microgeneration (within the meaning given

by section 26(1) of the Climate Change and Sustainable Energy

10Act 2006);

(ii) any other measures for increasing the amount of electricity

generated, or heat produced, using low-emissions sources or

technologies;

(iii) measures for reducing the consumption of such energy as is

15mentioned in subsection (4), and

(b) they are specified in an order made by the Secretary of State.

(6) Measures fall within this subsection if—

(a) they are installed at the property for the purpose of supplying to it any

of the following types of energy—

(i) 20electricity generated by a generating station operated for the

purposes of producing heat, or a cooling effect, in association

with electricity;

(ii) heat produced in association with electricity or steam produced

from (or air or water heated by) such heat;

(iii) 25any gas or liquid subjected to a cooling effect produced in

association with electricity, and

(b) they are specified in an order made by the Secretary of State.

(7) For the purposes of subsection (5)(a)(ii) electricity is generated, or heat is

produced, using low-emissions sources or technologies if it is generated, or

30produced, by plant which relies wholly or mainly on a source of energy or a

technology mentioned in section 26(2) of the Climate Change and Sustainable

Energy Act 2006.

(8) For the purposes of subsection (6) “generating station” and “supplying” are to

be read in accordance with section 64(1) of the Electricity Act 1989.

(9) 35“Energy” (except in this section), “energy bill”, “occupier”, “owner” and

“relevant energy supplier” have the meaning given in regulations made by the

Secretary of State.

(10) Regulations under subsection (9) may also make provision as to the

circumstances in which a person who is not a bill payer for the purposes of this

40Chapter may be treated as a bill payer for those purposes.

3 Framework regulations

(1) The Secretary of State may by regulations establish a scheme making provision

for the Secretary of State—

(a) to authorise persons to act as green deal assessors, green deal providers

45or green deal installers in connection with green deal plans (either

individually or through membership of a body specified in, or

authorised under, the scheme);

(b) to regulate the conduct of those assessors, providers or installers

(“green deal participants”).

(2) Regulations under subsection (1) are referred to in this Chapter as “the

framework regulations”.

(3) 5The scheme established by the framework regulations may, in particular, make

provision—

(a) requiring the payment of a fee in connection with initial or continued

authorisation under the scheme;

(b) for the establishment and maintenance of a register of green deal

10participants and of persons from whom authorisation under the

scheme has been withdrawn;

(c) requiring green deal participants to provide the information required

under the scheme;

(d) for the issuing of a code of practice;

(e) 15requiring green deal participants to comply with the code of practice as

a condition of their authorisation;

(f) requiring green deal providers to enter into an agreement with the

holder of a licence under section 7 of 7A of the Gas Act 1986 (gas

transporter, shipper or supply licences) or section 6(1)(c) or (d) of the

20Electricity Act 1989 (electricity distributor and supply licences) and to

comply with that agreement as a condition of their authorisation;

(g) requiring that an agreement mentioned in paragraph (f) be approved

by the Secretary of State before being entered into;

(h) for securing compliance with any condition or any other requirement

25of the scheme, code or agreement;

(i) as to the consequences of non-compliance with any such condition or

requirement.

(4) The code of practice issued for the purposes of the scheme may, in particular,

make provision—

(a) 30as to the qualification and training of green deal participants;

(b) as to their handling of queries or complaints;

(c) requiring green deal participants to have such arrangements for

insurance as are specified in the code;

(d) as to the payment of green deal assessors by green deal providers or

35green deal installers and the payment of green deal installers by green

deal providers;

(e) as to the circumstances in which green deal assessors may charge

customers for qualifying assessments of properties and as to the

amount of any such charge;

(f) 40as to the provision of information by green deal providers to improvers

and bill payers and prospective improvers and bill payers;

(g) as to marketing in connection with green deal plans.

(5) The code may include provision for regulating a body specified or authorised

for the purposes of subsection (1)(a).

(6) 45The scheme and the code may make different provision for different

circumstances or cases or for different purposes.

(7) The provision made by the scheme or code in relation to green deal

participants may also extend to matters in connection with any energy plans

which are not green deal plans.

(8) The provision made for the purposes of subsection (3)(h) or (i) may, in

5particular, include provision enabling the Secretary of State to—

(a) cancel any liability to pay for a qualifying assessment of a property;

(b) require a green deal provider to suspend or cancel the liability of a bill

payer to make payments under a green deal plan;

(c) require a green deal participant to rectify a qualifying energy

10improvement or its installation;

(d) require a green deal participant to pay compensation or a financial

penalty;

(e) withdraw, or require a body specified or authorised for the purposes of

subsection (1)(a) to withdraw, an authorisation to act as a green deal

15participant.

(9) For the purposes of this section references to a qualifying assessment are to an

energy efficiency assessment which meets the requirements specified in the

framework regulations and deals with such other matters as may be so

specified.

(10) 20This section is without prejudice to the powers conferred on the Secretary of

State by other provisions of this Chapter to make provision in or under the

framework regulations.

Green deal plan

4 Assessment of property etc

(1) 25For the purposes of section 1(4)(c) the conditions as to assessment of the

property and other matters are—

(a) the conditions set out in subsections (2) to (9), and

(b) such other conditions (whether relating to the green deal assessor, the

green deal provider, the improver or any other person) as are specified

30in the framework regulations.

(2) The first condition is that a qualifying assessment of the property has been

carried out by a person authorised by virtue of the framework regulations to

act as a green deal assessor.

(3) The second condition is that the green deal assessor has recommended the

35energy efficiency improvements.

(4) The third condition is that the green deal provider has given an estimate, on the

basis specified in the framework regulations, of the savings likely to be made

on the energy bills for the property if the improvements are carried out.

(5) The fourth condition is that the green deal provider has given an estimate, on

40the basis specified in the framework regulations, of the period over which the

savings mentioned in subsection (4) are likely to be made.

(6) The fifth condition is that the green deal provider is authorised by virtue of the

framework regulations to act as a green deal provider.

(7) The sixth condition is that the green deal provider has offered to carry out the

improvements on the basis that the whole or part of the cost will be repaid in

instalments over a period after the improvements have been made.

(8) The seventh condition is that the green deal provider meets any requirement

5specified in the framework regulations as to the relationship between—

(a) the estimated total of the proposed instalments, and

(b) the estimate mentioned in subsection (4).

(9) The eighth condition is that the green deal provider meets any requirement

specified in the framework regulations as to the relationship between—

(a) 10the period for which the instalments are proposed to be paid, and

(b) the period estimated under subsection (5).

(10) In subsection (2) the reference to a qualifying assessment is to be read in

accordance with section 3(9).

5 Terms of plan etc

(1) 15For the purposes of section 1(4)(d), the conditions as to the terms of the plan

and other matters are—

(a) the conditions set out in subsections (2) to (4), and

(b) such other conditions as are specified in the framework regulations.

(2) The first condition is that the plan includes the following terms—

(a) 20a term in which the improver agrees to—

(i) the amounts of the payments in instalments and the interval at

which, and period for which, they are payable;

(ii) such other matters as are specified in the regulations;

(b) a term in which the improver confirms that any necessary permissions

25or consents have been obtained in respect of the improvements;

(c) a term providing that the green deal provider may not take a charge

over any person’s property by way of security for payments;

(d) a term providing that the green deal plan does not prevent the bill

payer from changing the intervals at which energy bills are to be paid.

(3) 30The second condition is that the plan does not include any of the following

terms—

(a) a term making a person liable to make any payments under the green

deal plan otherwise than in respect of the period for which the person

is the bill payer in relation to the property;

(b) 35a term requiring the bill payer to make in any circumstances an early

repayment of the whole or part of the amount outstanding under the

green deal plan (except in accordance with the framework regulations

or regulations under section 30, or provision made under them);

(c) a term providing for money to be advanced to the improver (except in

40accordance with the framework regulations or provision made under

them).

(4) The third condition is that the agreements mentioned in paragraph (a) of

subsection (2) and the permissions and consents mentioned in paragraph (b) of

that subsection have not been withdrawn before the end of the period of 14

45days beginning with the last day on which they were given.

(5) The conditions which may be specified in the framework regulations by virtue

of subsection (1)(b) include, in particular—

(a) a condition that the plan includes a term so specified enabling the early

repayment of the whole or part of the amount outstanding under the

5plan and making provision as to the calculation of the amount payable

and any fee,

(b) a condition that the plan includes a term so specified guaranteeing the

improvements and making provision as to who is to benefit from the

guarantee,

(c) 10a condition that the plan includes a term so specified as to how any

problems with the improvements installed, or arising in connection

with the installation of them, are to be dealt with, and

(d) a condition requiring the agreements mentioned in subsection (2)(a) to

be in the form specified in the framework regulations.

(6) 15References in this section to the agreements mentioned in subsection (2)(a)

include references to the consent required by virtue of section 6(2)(a).

6 Consents and redress etc

(1) The framework regulations may make provision for dealing with cases

where—

(a) 20at the time when a plan is entered into the improver and the bill payer

are different persons;

(b) the bill payer at the time when a plan is entered into is a different

person from the bill payer at any subsequent time (a “subsequent bill

payer”).

(2) 25Provision which may be made by virtue of subsection (1) includes—

(a) provision requiring the term included in the plan by virtue of section

5(2)(a)(i) to be one to which the bill payer mentioned in subsection

(1)(a) has consented, and

(b) provision as to the terms of the plan which are to bind or benefit that

30bill payer or a subsequent bill payer.

(3) Subsection (1) is subject to section 1(6).

(4) The framework regulations may make provision for the purpose of providing

redress in cases where a permission or consent mentioned in section 5(2)(b)

was not obtained or was improperly obtained.

(5) 35Provision included in framework regulations by virtue of subsection (4) may,

in particular, enable the Secretary of State to—

(a) require a green deal provider to suspend or cancel the liability of a bill

payer to make payments under a green deal plan;

(b) require a green deal provider to refund any such payments that have

40already been made;

(c) require an improver to pay compensation to the green deal provider in

respect of the suspension, cancellation or refund.

7 Installation of improvements

(1) For the purposes of section 1(5)(a) improvements are installed in accordance

45with this section if the following three conditions are met.

(2) The first condition is that the person carrying out the installation of the

improvements is authorised by virtue of the framework regulations to act as a

green deal installer.

(3) The second condition is that—

(a) 5the improvements installed meet the standard specified in the code of

practice issued for the purposes of the scheme under the framework

regulations, and

(b) if a list is annexed by the Secretary of State to the code of practice, the

improvements installed are specified in the list.

(4) 10The third condition is that the carrying out of the installation meets the

standard specified in the code of practice.

8 Confirmation of plan

(1) For the purposes of section 1(5)(b) an arrangement is confirmed in accordance

with this section if the following two conditions are met.

(2) 15The first condition is that the relevant energy supplier notifies the bill payer—

(a) that payments for the energy efficiency improvements to the property

are to be included in the energy bills for the property from the date

specified in the notification, and

(b) of the amounts of those payments and the period for which they are to

20be made.

(3) The date mentioned in subsection (2)(a) must not fall earlier than the end of the

period specified in the framework regulations.

(4) The second condition is that, as soon as practicable after the improvements

have been installed, the green deal provider takes whichever of the following

25actions the framework regulations require in the circumstances—

(a) producing a document containing such information in connection with

the plan as is specified in the regulations in the form so specified,

(b) securing that a document of a description specified in the regulations is

produced, or

(c) 30securing that a document of such a description is amended.

(5) Sections 9 and 10 make further provision in relation to the second condition.

9 Confirmation of plan: supplementary provision for England and Wales

(1) Subsection (2) applies if, by virtue of section 8(4)(b) or (c), the framework

regulations specify a document of a description which is required to be

35produced under the 2007 Regulations.

(2) The framework regulations may make provision for the 2007 Regulations to

have effect in connection with the documents required to be produced or

amended by virtue of section 8(4)(b) or (c), with the modifications specified in

the framework regulations.

(3) 40The modifications made by virtue of subsection (2) may, in particular,

include—

(a) requiring a document to contain additional information in connection

with the plan;

(b) making provision about the period for which a document must be

entered onto the register maintained under Part 6 of the 2007

Regulations;

(c) imposing a requirement to pay a fee.

(4) 5In this section “the 2007 Regulations” means the Energy Performance of

Buildings (Certificates and Inspections) (England and Wales) Regulations 2007

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

10 Confirmation of plan: supplementary provision for Scotland

(1) Subsection (2) applies if, by virtue of section 8(4)(b) or (c), the framework

10regulations specify a document of a description which is required to be

produced under the 2008 Regulations.

(2) The Scottish Ministers may by regulations make provision for the 2008

Regulations to have effect in connection with the documents required to be

produced or amended by virtue of section 8(4)(b) or (c), with the modifications

15specified in the regulations.

(3) The modifications made by virtue of subsection (2) may, in particular,

include—

(a) requiring a document to contain additional information in connection

with the plan;

(b) 20making provision about the period for which a document must be

entered onto the register maintained under regulation 10 of the 2008

Regulations;

(c) imposing a requirement to pay a fee.

(4) In this section “the 2008 Regulations” means the Energy Performance of

25Buildings (Scotland) Regulations 2008 (S.S.I 2008/309).

11 Updating information produced under section 8

(1) The framework regulations may make provision as to the circumstances in

which a document produced for the purposes of section 8(4)(a) is required to

be amended in accordance with the regulations.

(2) 30Subsection (3) applies if—

(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

2007 Regulations, and

(b) provision is made in the regulations by virtue of section 9(3)(a)

35modifying the effect of the 2007 Regulations to require a document of

that description to contain additional information.

(3) The framework regulations may make provision—

(a) for the 2007 Regulations to have effect with the further modifications

specified in the framework regulations;

(b) 40as to the circumstances in which they are to so have effect.

(4) The modifications made by virtue of subsection (3)(a) may, in particular,

include—

(a) requiring the additional information to be amended;

(b) imposing a requirement to pay a fee.