Energy Bill (HL Bill 45)

would be within the legislative competence of the Scottish Parliament if it were

included in an Act of that Parliament.

(7) In this section “subordinate legislation” has the meaning given in section 21(1)

of the Interpretation Act 1978, except that it includes any instrument made

5under an Act of the Scottish Parliament.

General

59 Regulations and orders: Scotland

(1) Regulations and orders under this Chapter may make different provision for

different cases or circumstances or for different purposes.

(2) 10Regulations and orders under this Chapter are to be made by statutory

instrument.

(3) A statutory instrument containing an order under this Chapter is subject to

annulment in pursuance of a resolution of the Scottish Parliament.

(4) A statutory instrument containing regulations under this Chapter may not be

15made unless a draft of the instrument has been laid before, and approved by a

resolution of, the Scottish Parliament.

60 Crown application: Chapter 3

This Chapter binds the Crown.

CHAPTER 4 Reducing carbon emissions and home-heating costs

61 20Promotion of reductions in carbon emissions: gas transporters and suppliers

(1) Section 33BC of the Gas Act 1986 (promotion of reductions in carbon emissions:

gas transporters and suppliers) is amended as follows.

(2) In subsection (5) (general provision that may be included in an order imposing

an obligation to achieve a carbon emissions reduction target)—

(a) 25for paragraphs (ba) and (c) substitute—

“(ba) requiring part of a carbon emissions reduction target to

be met by action of a specified description;

(bb) requiring the whole or any part of a carbon emissions

reduction target to be met by action relating to—

(i) 30individuals of a specified description,

(ii) property of a specified description,

(iii) specified areas or areas of a specified

description, or

(iv) individuals or property of a specified

35description in specified areas or areas of a

specified description;

(bc) enabling the Authority to direct a transporter or

supplier to meet part of a carbon emissions reduction

target by action relating to an individual named in the

direction;

(bd) preventing action from qualifying for the purpose of

meeting the whole or any part of a carbon emissions

5reduction target unless such persons as are specified in,

or determined in accordance with, the order—

(i) have been consulted about the action;

(ii) have consented to the action;

(be) requiring action which qualifies for the purpose of

10meeting both a carbon emissions reduction target and a

home-heating cost reduction target to be treated as

qualifying only for the purpose of meeting such one of

those targets as the transporter or supplier concerned

elects;

(c) 15determining, or specifying the method for determining,

the contribution that any action makes towards meeting

a carbon emissions reduction target;”;

(b) in paragraph (e) for sub-paragraph (ii) substitute—

“(ii) if so, what contribution the proposed action (or

20any result of that action specified in the

determination) is to make towards achieving the

carbon emissions reduction target;”;

(c) after paragraph (f) insert “; and

(g) requiring the Authority or a specified body to offer

25services of a specified kind and authorising a specified

fee to be charged to those who take up the offer.”

(3) After subsection (5) insert—

“(5A) If the order makes provision by virtue of subsection (5)(bc) enabling the

Authority to direct a transporter or supplier to meet part of a carbon

30emissions reduction target by action relating to an individual named in

the direction the order may also make provision—

(a) authorising the Authority to require specified persons to

provide it with information for the purpose of enabling it to

identify and select individuals who are to be the subject of a

35direction;

(b) specifying criteria in accordance with which the Authority is to

select individuals who are to be the subject of a direction;

(c) determining, or specifying the method for determining, which

transporter or supplier is to be given a direction in relation to

40any particular individual selected in accordance with provision

made under paragraph (b);

(d) authorising the Authority, if it gives a direction to a transporter

or supplier, to provide the transporter or supplier with

information relating to the individual concerned for the

45purpose of assisting the transporter or supplier to comply with

the direction;

(e) as to the times at which a direction may be given;

(f) as to the circumstances in which a direction need not be

complied with.

(5B) Provision made by virtue of subsection (5)(c) may in particular provide

for an action to be treated as making a greater contribution than it

would otherwise do if the action relates to—

(a) an individual of a specified description,

(b) 5a property of a specified description, or

(c) both an individual of a specified description and a property of

a specified description.”

(4) After subsection (9) insert—

“(9A) The order may make provision requiring the Authority to give

10guidance to transporters or suppliers concerning such matters relating

to the order as are specified.

(9B) The Authority shall carry out its functions under this section in

accordance with any general or specific directions given to it by the

Secretary of State.”

(5) 15For subsection (10A) substitute—

“(10A) The Secretary of State must obtain the consent of the Scottish Ministers

before making an order under this section which contains provision

that—

(a) is included by virtue of subsection (2)(b),

(b) 20extends to Scotland, and

(c) would be within the legislative competence of the Scottish

Parliament if contained in an Act of that Parliament.”

(6) After subsection (12) insert—

“(12A) Subsection (12) does not apply to an order under this section made only

25for the purpose of amending an earlier order under this section—

(a) so as to add to the earlier order provision of a sort mentioned in

any of paragraphs (b), (ba) or (c) of subsection (5), or

(b) so as to alter the provision included in the earlier order by virtue

of any of those paragraphs;

30but such an order shall be subject to annulment in pursuance of a

resolution of either House of Parliament.”

(7) In subsection (13) before the definition of “microgeneration” insert—

• ““home-heating cost reduction target” has the meaning given by
  
  section 33BD(2)(a);”.

62 35Promotion of reductions in carbon emissions: electricity generators,

distributors and suppliers

(1) Section 41A of the Electricity Act 1989 (promotion of reductions in carbon

emissions: electricity generators, distributors and suppliers) is amended as

follows.

(2) 40In subsection (5) (general provision that may be included in an order imposing

an obligation to achieve a carbon emissions reduction target)—

(a) for paragraphs (ba) and (c) substitute—

“(ba) requiring part of a carbon emissions reduction target to

be met by action of a specified description;

(bb) requiring the whole or any part of a carbon emissions

reduction target to be met by action relating to—

(i) individuals of a specified description,

(ii) property of a specified description,

(iii) 5specified areas or areas of a specified

description, or

(iv) individuals or property of a specified

description in specified areas or areas of a

specified description;

(bc) 10enabling the Authority to direct a distributor or supplier

to meet part of a carbon emissions reduction target by

action relating to an individual named in the direction;

(bd) preventing action from qualifying for the purpose of

meeting the whole or any part of a carbon emissions

15reduction target unless such persons as are specified in,

or determined in accordance with, the order—

(i) have been consulted about the action;

(ii) have consented to the action;

(be) requiring action which qualifies for the purpose of

20meeting both a carbon emissions reduction target and a

home-heating cost reduction target to be treated as

qualifying only for the purpose of meeting such one of

those targets as the distributor or supplier concerned

elects;

(c) 25determining, or specifying the method for determining,

the contribution that any action makes towards meeting

a carbon emissions reduction target;”;

(b) in paragraph (e) for sub-paragraph (ii) substitute—

“(ii) if so, what contribution the proposed action (or

30any result of that action specified in the

determination) is to make towards achieving the

carbon emissions reduction target;”;

(c) after paragraph (f) insert “; and

(g) requiring the Authority or a specified body to offer

35services of a specified kind and authorising a specified

fee to be charged to those who take up the offer.”

(3) After subsection (5) insert—

“(5A) If the order makes provision by virtue of subsection (5)(bc) enabling the

Authority to direct a distributor or supplier to meet part of a carbon

40emissions reduction target by action relating to an individual named in

the direction the order may also make provision—

(a) authorising the Authority to require specified persons to

provide it with information for the purpose of enabling it to

identify and select individuals who are to be the subject of a

45direction;

(b) specifying criteria in accordance with which the Authority is to

select individuals who are to be the subject of a direction;

(c) determining, or specifying the method for determining, which

distributor or supplier is to be given a direction in relation to

50any particular individual selected in accordance with provision

made under paragraph (b);

(d) authorising the Authority, if it gives a direction to a distributor

or supplier, to provide the distributor or supplier with

information relating to the individual concerned for the

purpose of assisting the distributor or supplier to comply with

5the direction;

(e) as to the times at which a direction may be given;

(f) as to the circumstances in which a direction need not be

complied with.

(5B) Provision made by virtue of subsection (5)(c) may in particular provide

10for an action to be treated as making a greater contribution than it

would otherwise do if the action relates to—

(a) an individual of a specified description,

(b) a property of a specified description, or

(c) both an individual of a specified description and a property of

15a specified description.”

(4) After subsection (9) insert—

“(9A) The order may make provision requiring the Authority to give

guidance to distributors or suppliers concerning such matters relating

to the order as are specified.

(9B) 20The Authority shall carry out its functions under this section in

accordance with any general or specific directions given to it by the

Secretary of State.”

(5) For subsection (10A) substitute—

“(10A) The Secretary of State must obtain the consent of the Scottish Ministers

25before making an order under this section which contains provision

that—

(a) is included by virtue of subsection (2)(b),

(b) extends to Scotland, and

(c) would be within the legislative competence of the Scottish

30Parliament if contained in an Act of that Parliament.”

(6) After subsection (12) insert—

“(12A) Subsection (12) does not apply to an order under this section made only

for the purpose of amending an earlier order under this section—

(a) so as to add to the earlier order provision of a sort mentioned in

35any of paragraphs (b), (ba) or (c) of subsection (5), or

(b) so as to alter the provision included in the earlier order by virtue

of any of those paragraphs;

but such an order shall be subject to annulment in pursuance of a

resolution of either House of Parliament.”

(7) 40In subsection (13) before the definition of “microgeneration” insert—

• ““home-heating cost reduction target” has the meaning given by
  
  section 41B(2)(a);”.

(8) The power to make orders under section 41A of the Electricity Act 1989 may

not be exercised so as to impose an obligation on an electricity generator that

45has effect after 31 December 2012.

63 Promotion of reductions in home-heating costs: gas transporters and

suppliers

After section 33BC of the Gas Act 1986 (promotion of reductions in carbon

emissions: gas transporters and suppliers) insert—

“33BD 5 Promotion of reductions in home-heating costs: gas transporters and

gas suppliers

(1) The Secretary of State may by order impose—

(a) on each gas transporter (or each gas transporter of a specified

description); and

(b) 10on each gas supplier (or each gas supplier of a specified

description),

an obligation to achieve, within a specified period and in accordance

with the order, the home-heating cost reduction target to be

determined by the Authority under the order for that transporter or

15supplier (and that obligation is referred to in this section as a “home-

heating cost reduction obligation”).

(2) In this section—

(a) “home-heating cost reduction target” means a target for the

promotion of measures for reducing the cost to individuals of

20heating their homes;

(b) “specified” means specified in the order.

(3) The power to make orders under this section may be exercised so as to

impose more than one home-heating cost reduction obligation on a

person in relation to the same period or to periods that overlap to any

25extent.

(4) Subsections (3), (5) to (8), (9A) and (10A) to (12A) of section 33BC apply

to an order under this section as they apply to an order under that

section, with the following modifications—

(a) for “carbon emissions reduction obligation” (in each place)

30substitute “home-heating cost reduction obligation”;

(b) for “carbon emissions reduction obligations” (in each place)

substitute “home-heating cost reduction obligations”;

(c) for “carbon emissions reduction target” (in each place other

than in paragraph (be) of subsection (5)) substitute “home-

35heating cost reduction target”;

(d) for “carbon emissions reduction targets” (in each place)

substitute “home-heating cost reduction targets”; and

(e) omit paragraph (a) of subsection (10A).

(5) Subsections (4) and (9B) of section 33BC apply to the carrying out by the

40Secretary of State and the Authority of their respective functions under

this section as they apply to the carrying out by those persons of their

functions under that section.

(6) No person shall be required by virtue of this section to provide any

information which he could not be compelled to give in evidence in

45civil proceedings in the High Court or, in Scotland, the Court of

Session.”

64 Promotion of reductions in home-heating costs: electricity distributors and

suppliers

After section 41A of the Electricity Act 1989 (promotion of reductions in carbon

emissions: electricity generators, distributors and suppliers) insert—

“41B 5 Promotion of reductions in home-heating costs: electricity

distributors and electricity suppliers

(1) The Secretary of State may by order impose—

(a) on each electricity distributor (or each electricity distributor of a

specified description); and

(b) 10on each electricity supplier (or each electricity supplier of a

specified description),

an obligation to achieve, within a specified period and in accordance

with the order, the home-heating cost reduction target to be

determined by the Authority under the order for that distributor or

15supplier (and that obligation is referred to in this section as a “home-

heating cost reduction obligation”).

(2) In this section—

(a) “home-heating cost reduction target” means a target for the

promotion of measures for reducing the cost to individuals of

20heating their homes;

(b) “specified” means specified in the order.

(3) The power to make orders under this section may be exercised so as to

impose more than one home-heating cost reduction obligation on a

person in relation to the same period or to periods that overlap to any

25extent.

(4) Subsections (3), (5) to (8), (9A) and (10A) to (12A) of section 41A apply

to an order under this section as they apply to an order under that

section, with the following modifications—

(a) for “carbon emissions reduction obligation” (in each place)

30substitute “home-heating cost reduction obligation”;

(b) for “carbon emissions reduction obligations” (in each place)

substitute “home-heating cost reduction obligations”;

(c) for “carbon emissions reduction target” (in each place other

than in paragraph (be) of subsection (5)) substitute “home-

35heating cost reduction target”;

(d) for “carbon emissions reduction targets” (in each place)

substitute “home-heating cost reduction targets”; and

(e) omit paragraph (a) of subsection (10A).

(5) Subsections (4) and (9B) of section 41A apply to the carrying out by the

40Secretary of State and the Authority of their respective functions under

this section as they apply to the carrying out by those persons of their

functions under that section.

(6) No person shall be required by virtue of this section to provide any

information which he could not be compelled to give in evidence in

45civil proceedings in the High Court or, in Scotland, the Court of

Session.”

65 Overall home-heating cost reduction targets

After section 103 of the Utilities Act 2000 (overall carbon emissions reduction

targets) insert—

“103A Overall home-heating cost reduction targets

(1) 5For the purposes of the exercise by the Authority of its functions under

either or both of—

(a) section 33BD of the 1986 Act (promotion of reductions in home-

heating costs: gas transporters and suppliers) and any order

made under that section, and

(b) 10section 41B of the 1989 Act (promotion of reductions in home-

heating costs: electricity distributors and suppliers) and any

order made under that section,

the Secretary of State may by order specify an overall target for the

promotion of measures for reducing the cost to individuals of heating

15their homes.

(2) The power conferred by this section may be exercised so as to specify

more than one overall target in relation to the same period or to periods

that overlap to any extent.

(3) Where an overall target applies in relation to both sections mentioned

20in subsection (1), the order specifying the target may make provision

for the Authority to apportion the target between—

(a) persons who are gas transporters or gas suppliers (for the

purposes of section 33BD of the 1986 Act and any order made

under that section); and

(b) 25persons who are electricity distributors or electricity suppliers

(for the purposes of section 41B of the 1989 Act and any order

under that section),

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

(4) The Authority shall exercise its functions under the provisions

30mentioned in subsection (1) in relation to which an overall target

applies (and in particular its functions relating to the determination of

home-heating cost reduction targets) in the manner it considers best

calculated to result in the achievement of the overall target.

(5) Before making an order under this section the Secretary of State shall

35consult the Authority, the Council, gas transporters, gas suppliers,

electricity distributors, electricity suppliers, and such other persons as

the Secretary of State considers appropriate.

(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

40resolution of, each House of Parliament.”

66 Power of Secretary of State to require information: carbon emissions

reduction targets and home-heating cost reduction targets

After section 103A of the Utilities Act 2000 insert—

“103B Power of Secretary of State to require information: carbon emissions

5reduction targets and home-heating cost reduction targets

(1) The Secretary of State may by notice require a person within subsection

(3) to provide the Secretary of State with specified information, or

information of a specified kind, for the purpose of enabling the

Secretary of State—

(a) 10to decide whether to make a carbon emissions reduction order

or a home-heating cost reduction order and, if so, what

provision to include in the order;

(b) to review the operation and effect of a carbon emissions

reduction order or a home-heating cost reduction order;

(c) 15to establish and maintain a record (“a measures record”) of

properties in respect of which carbon emissions reduction

measures or home-heating cost reduction measures have been

taken and of the type of measure taken in respect of each such

property.

(2) 20For the purpose of enabling a person (“A”) to establish and maintain a

measures record on behalf of the Secretary of State, the Secretary of

State may by notice require any person within subsection (3) to provide

A with specified information or information of a specified kind.

(3) Those persons are—

(a) 25gas transporters and gas suppliers;

(b) electricity distributors and electricity suppliers; and

(c) the Authority.

(4) Information required to be provided by a notice under this section must

be provided—

(a) 30in such form as may be specified;

(b) within such period as may be specified or at such intervals as

may be specified.

(5) No person shall be required by a notice under this section to provide

any information which the person could not be compelled to give in

35evidence in civil proceedings in the High Court or, in Scotland, the

Court of Session.

(6) Information obtained by virtue of this section may be disclosed by the

Secretary of State—

(a) to the Welsh Ministers for the purpose of enabling them to

40review the operation and effect in Wales of a carbon emissions

reduction order or a home-heating cost reduction order;

(b) to the Scottish Ministers for the purpose of enabling them to

review the operation and effect in Scotland of a carbon

emissions reduction order or a home-heating cost reduction

45order.

(7) In this section—

• “a carbon emissions reduction order” means an order under—

  Energy BillPage 49

  (a)

  section 33BC of the 1986 Act;

  (b)

  section 41A of the 1989 Act; or

  (c)

  section 103 of this Act;

• “a home-heating cost reduction order” means an order under—

  (a)

  5section 33BD of the 1986 Act;

  (b)

  section 41B of the 1989 Act; or

  (c)

  section 103A of this Act;

• “a carbon emissions reduction measure” is a measure of a kind
  
  mentioned in subsection (2) of each of section 33BC of the 1986
  
  10Act and section 41A of the 1989 Act;

• “a home-heating cost reduction measure” is a measure of a kind
  
  mentioned in subsection (2)(a) of each of section 33BD of the
  
  1986 Act and section 41B of the 1989 Act;

• “specified” means specified in a notice under this section.”

67 15Power of Secretary of State to transfer functions of the Gas and Electricity

Markets Authority

After section 103B of the Utilities Act 2000 insert—

“103C Transfer of Authority’s functions: carbon emissions reduction targets

and home-heating cost reduction targets

(1) 20The Secretary of State may by order transfer any of the Authority’s

functions under a carbon emissions reduction order or home-heating

cost reduction order to another body or to the Secretary of State.

(2) An order under this section transferring functions under a carbon

emissions reduction order or home-heating cost reduction order may

25also make provision—

(a) for, and in connection with, enabling the transferee to enforce

any requirement imposed by the carbon emissions reduction

order or home-heating cost reduction order;

(b) preventing the Authority from exercising its enforcement

30functions in relation to a requirement which may be enforced by

the transferee under provision made by virtue of paragraph (a).

(3) Provision made under subsection (2)(a) may, in particular, include

provision corresponding to or applying (with or without

modifications) any of the following provisions—

(a) 35sections 28 to 30F and section 38 of the 1986 Act;

(b) sections 25 to 28 of the 1989 Act.

(4) In carrying out any function transferred by an order under this section,

a transferee is to be treated for the purposes of the provisions of the

1986 Act, the 1989 Act and this Act as if the transferee were the

40Authority.

(5) Before making an order under this section, the Secretary of State must

consult the Authority, the Council, gas transporters, gas suppliers,

electricity distributors, electricity suppliers and such other persons as

the Secretary of State considers appropriate.