Energy Bill (HL Bill 54)

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 32;

(b) any suspension or cancellation, by virtue of provision made in
regulations under section 3(3)(h) or (i), 6(4), 16 or 33, 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, revision or revocation 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.

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

25Green deal plan

4 Assessment of property etc

(1) For 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) 30such other conditions (whether relating to the green deal assessor, the
green deal provider, the improver or any other person) as are specified
in 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
35act as a green deal assessor.

(3) The second condition is that the green deal assessor has recommended the
energy 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
40on 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
the 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
5instalments over a period after the improvements have been made.

(8) The seventh condition is that the green deal provider meets any requirement
specified 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) 10The eighth condition is that the green deal provider meets any requirement
specified in the framework regulations as to the relationship between—

(a) the 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
15accordance with section 3(9).

5 Terms of plan etc

(1) For 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) 20such other conditions as are specified in the framework regulations.

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

(a) a 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) 25such other matters as are specified in the regulations;

(b) a term in which the improver confirms that any necessary permissions
or 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) 30a 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) The 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
35deal plan otherwise than in respect of the period for which the person
is the bill payer in relation to the property;

(b) a 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
40or regulations under section 32, or provision made under them);

(c) a term providing for money to be advanced to the improver (except in
accordance with the framework regulations or provision made under
them).

(4) The third condition is that the agreements mentioned in paragraph (a) of
45subsection (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
days 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) 5a condition that the plan includes a term so specified enabling the early
repayment of the whole or part of the amount outstanding under the
plan 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
10improvements and making provision as to who is to benefit from the
guarantee,

(c) a 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) 15a condition requiring the agreements mentioned in subsection (2)(a) to
be in the form specified in the framework regulations.

(6) References 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) 20The framework regulations may make provision for dealing with cases
where—

(a) at 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
25person from the bill payer at any subsequent time (a “subsequent bill
payer”).

(2) Provision 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
30(1)(a) has consented, and

(b) provision as to the terms of the plan which are to bind or benefit that
bill 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
35redress in cases where a permission or consent mentioned in section 5(2)(b)
was not obtained or was improperly obtained.

(5) Provision 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
40payer to make payments under a green deal plan;

(b) require a green deal provider to refund any such payments that have
already 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
with this section if the following three conditions are met.

(2) The first condition is that the person carrying out the installation of the
5improvements is authorised by virtue of the framework regulations to act as a
green deal installer.

(3) The second condition is that any product installed in making the
improvements—

(a) meets the standard specified in the code of practice in relation to the
10product or description of product, or

(b) is listed in a document which—

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

(ii) is referred to in the code as listing the products which are to be
15taken as meeting the required standard.

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

(5) The third condition is that the carrying out of the installation meets the
20standard specified in the code of practice.

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

8 Confirmation of plan

(1) For the purposes of section 1(5)(b) an arrangement is confirmed in accordance
25with this section if the following two conditions are met.

(2) The 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) 30of the amounts of those payments and the period for which they are to
be 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
35have been installed, the green deal provider takes whichever of the following
actions 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
40produced, or

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

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

(6) 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
5produced under the 2007 Regulations or the 2010 Regulations.

(2) The Secretary of State may by regulations make provision amending the 2007
Regulations or the 2010 Regulations or both (as the case may require) in
connection with a document required to be produced or updated by virtue of
section 8(4)(b) or (c).

(3) 10The amendments made by virtue of subsection (2) may, in particular, include
amendments for the purpose of requiring a document to contain additional or
updated information in connection with the plan or the improvements
installed under the plan.

(4) In this section—

• 15“the 2007 Regulations” means the Energy Performance of Buildings
  (Certificates and Inspections) (England and Wales) Regulations 2007
  (S.I. 2007/991S.I. 2007/991);

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

10 20Confirmation of plan: supplementary provision for Scotland

(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
produced under the 2008 Regulations.

(2) The Scottish Ministers may by regulations make provision amending the 2008
25Regulations in connection with a document required to be produced or
updated by virtue of section 8(4)(b) or (c).

(3) The amendments made by virtue of subsection (2) may, in particular, include
amendments for the purpose of requiring a document to contain additional or
updated information in connection with the plan or the improvements
30installed under the plan.

(4) In this section “the 2008 Regulations” means the Energy Performance of
Buildings (Scotland) Regulations 2008 (S.S.I. 2008/309S.S.I. 2008/309).

11 Updating information produced under section 8

(1) The framework regulations may make provision as to the circumstances in
35which a document produced for the purposes of section 8(4)(a) is required to
be updated in accordance with the regulations.

(2) Subsection (6) applies if one or more of the first, second or third conditions is
met.

(3) The first condition is that—

(a) 40by 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 or the 2010 Regulations, and