Energy Bill (HL Bill 54)

(c) for “carbon emissions reduction target” (in each place other
than in paragraph (be) of subsection (5)) substitute “home-
heating cost reduction target”;

(d) for “carbon emissions reduction targets” (in each place)
5substitute “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
Secretary of State and the Administrator of their respective functions
under this section as they apply to the carrying out by those persons of
10their 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
civil proceedings in the High Court or, in Scotland, the Court of
Session.”

67 15Promotion 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 Promotion of reductions in home-heating costs: electricity
20distributors 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) on each electricity supplier (or each electricity supplier of a
25specified 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 Administrator under the order for that distributor or
supplier (and that obligation is referred to in this section as a “home-
30heating cost reduction obligation”).

(2) In this section—

(a) “the Administrator” means—

(i) the Authority; or

(ii) if the order so provides, the Secretary of State or a
35specified body other than the Authority;

(b) “home-heating cost reduction target” means a target for the
promotion of measures for reducing the cost to individuals of
heating their homes;

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

(3) 40The 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
extent.

(4) Subsections (3), (5) to (8), (9A) and (10A) to (12B) of section 41A apply
45to 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)
substitute “home-heating cost reduction obligation”;

(b) for “carbon emissions reduction obligations” (in each place)
substitute “home-heating cost reduction obligations”;

(c) 5for “carbon emissions reduction target” (in each place other
than in paragraph (be) of subsection (5)) substitute “home-
heating cost reduction target”;

(d) for “carbon emissions reduction targets” (in each place)
substitute “home-heating cost reduction targets”; and

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

(5) Subsections (4) and (9B) of section 41A apply to the carrying out by the
Secretary of State and the Administrator of their respective functions
under this section as they apply to the carrying out by those persons of
their functions under that section.

(6) 15No person shall be required by virtue of this section to provide any
information which he could not be compelled to give in evidence in
civil proceedings in the High Court or, in Scotland, the Court of
Session.”

68 Overall home-heating cost reduction targets

20After section 103 of the Utilities Act 2000 (overall carbon emissions reduction
targets) insert—

“103A Overall home-heating cost reduction targets

(1) For the purposes of the exercise of the functions of the Administrator
under either or both of—

(a) 25section 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) section 41B of the 1989 Act (promotion of reductions in home-
heating costs: electricity distributors and suppliers) and any
30order 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
their homes.

(2) The power conferred by this section may be exercised so as to specify
35more 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
in subsection (1), the order specifying the target may make provision
for the target to be apportioned between—

(a) 40persons 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) persons who are electricity distributors or electricity suppliers
(for the purposes of section 41B of the 1989 Act and any order
45under that section),

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

(4) The Administrator shall exercise its functions under the provisions
mentioned 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
5calculated to result in the achievement of the overall target.

(5) Before making an order under this section the Secretary of State shall
consult the Authority, the Council, gas transporters, gas suppliers,
electricity distributors, electricity suppliers, and such other persons as
the Secretary of State considers appropriate.

(6) 10An 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.”

69 Power of Secretary of State to require information: carbon emissions
reduction targets and home-heating cost reduction targets

15After section 103A of the Utilities Act 2000 insert—

“103B Power of Secretary of State to require information: carbon emissions
reduction 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
20information of a specified kind, for the purpose of enabling the
Secretary of State—

(a) to 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) 25to review the operation and effect of a carbon emissions
reduction order or a home-heating cost reduction order;

(c) to 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
30taken and of the type of measure taken in respect of each such
property.

(2) For 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
35A with specified information or information of a specified kind.

(3) Those persons are—

(a) gas transporters and gas suppliers;

(b) electricity distributors and electricity suppliers;

(c) the Authority; and

(d) 40any body other than the Authority that is for the time being the
Administrator in relation to a carbon emissions reduction order
or a home-heating cost reduction order.

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

(a) 45in 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
evidence in civil proceedings in the High Court or, in Scotland, the
Court of Session.

(6) 5Information 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
review the operation and effect in Wales of a carbon emissions
reduction order or a home-heating cost reduction order;

(b) 10to 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
order.

(7) In this section—

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

  (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)

  20section 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
  25Act 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.”

70 30Minor 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

71 35Smart 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) 40before “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)
so as to enable them to assess any matter relating to the
5provision, 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
words from “the end of the period of 5 years” to the end substitute “1
10November 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)
15for 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
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
20words from “the end of the period of 5 years” to the end substitute “1
November 2018”.

Energy performance certificates

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

(1) The Secretary of State may make regulations for the purpose of authorising the
25person 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
provision—

(a) excluding a document or data, or a specified part of a document or data,
30from 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,
from disclosure to a specified description of persons;

(c) restricting the number of disclosures made to a specified description of
35persons;

(d) for 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
40future disclosures);

(f) in 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 Part 6 of the
Energy Performance of Buildings (Certificates and Inspections) (England and
45Wales) Regulations 2007 (S.I. 2007/991S.I. 2007/991).

(4) In 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
5different purposes;

(b) are 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 either House of Parliament.

(7) For the purposes of this section a reference to the disclosure of a document or
10data includes a reference to disclosure of information derived from the
document or data.

73 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
15provision 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
provision—

(a) excluding a document or data, or a specified part of a document or data,
20from 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,
from disclosure to a specified description of persons;

(c) restricting the number of disclosures made to a specified description of
25persons;

(d) for 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
30future disclosures);

(f) in 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.
352008/309).

(4) In 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
40different purposes;

(b) are 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
document or data.

Information about tariffs

74 5Power 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
1986 (supply licences);

(b) the standard conditions incorporated in licences under that provision
10by 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) 15The 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
information 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) 20the amount of the tariff;

(b) the amount the customer would have paid or saved in relation to any
past 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) 25where to find further information about the tariff;

(e) how to switch to it.

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

(a) which one or more domestic tariffs of a licence holder are its lowest
30domestic tariffs;

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

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

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

(5) 35The power under subsection (1)—

(a) may be exercised generally, only in relation to specified cases or subject
to 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) 40includes a power to make consequential modifications.

(6) Provision included in licences by virtue of the power may make different
provision for different cases.

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

(8) In this section—

Energy BillPage 57

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

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

75 5Power 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) the Gas and Electricity Markets Authority, and

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

(2) 10Subsection (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
15prevent 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.

(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
20the same modification of those standard conditions for the purposes of their
incorporation in licences of that type granted after that time.

(6) In section 33(1) of the Utilities Act 2000 (standard conditions of electricity
licences), in paragraph (f) (as inserted by section 22(7) of this Act), after “Part
1” insert “or section 74”.

(7) 25In section 81(2) of the Utilities Act 2000 (standard conditions of gas licences),
after “Part 1” (as inserted by section 22(8) of this Act) insert “or section 74”.

(8) In this section “modification” means a modification under section 74.

76 General duties of the Secretary of State

(1) Sections 4AA to 4B of the Gas Act 1986 (principal objective and general duties)
30apply in relation to functions of the Secretary of State under section 74 or 75 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
Act.

(2) Sections 3A to 3D of the Electricity Act 1989 (principal objective and general
35duties) apply in relation to functions of the Secretary of State under section 74
or 75 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
of that Act.

Part 2 Security of energy supplies

CHAPTER 1 Electricity supply

77 Annual report by Gas and Electricity Markets Authority on security of
5electricity 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
10every 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) 15A 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
20supply, 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
25of 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) 30An 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) 35the 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) 40A 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) the form of a report under subsection (1);

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

(c) 5the 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
mentioned in subsection (2)(a) or (b)).

(8) In this section—

• 10“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;

• “consumers” includes both existing and future consumers;

• “demand side response” means the cessation of, or a reduction in,
  15the provision of electricity to a person at times of high demand,
  by agreement with the person.”

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

(1) Section 172 of the Energy Act 2004 (annual report by Secretary of State on
security of energy supplies) is amended as follows.

(2) 20After 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
assessment by the Secretary of State of what electricity supply capacity
is required.

(2B) 25For 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,
including spare capacity to allow for unexpected demands or
unexpected loss of capacity.

(2C) 30The assessment periods, in relation to a report under subsection (1),
are—

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

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

(2D) 35An assessment by virtue of subsection (2A) must take into account, in
particular—

(a) the generation of electricity;

(b) the operation of electricity interconnectors;

(c) the storage of electricity;

(d) 40the 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.”