Session 2010 - 12
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Other Bills before Parliament

Energy Bill [HL]


 
 

23

 
 

(5)    

In Schedule 2—

 

(a)    

in the shoulder reference, after “12,” insert “12A,”;

 

(b)    

in paragraph 10(1), for “subsection (3) of section twelve of this Act”

 

substitute “sections 12(3) and 12A(4)”.

 

(6)    

In Schedule 4, in the shoulder reference, for “Section 12” substitute

 

“Sections 12 and 12A”.”

96

Insert the following new Clause—

 

“Contribution to carbon budgeting under the Climate Change Act 2008

 

(1)    

The Secretary of State must prepare and publish an annual report on the

 

extent to which—

 

(a)    

green deal plans under Chapter 1 of Part 1, and

 

(b)    

the energy company obligations provisions,

 

    

have contributed to the Secretary of State fulfilling the duty under section

 

4(1)(b) of the Climate Change Act 2008 (carbon budgeting).

 

(2)    

The “energy company obligations provisions” means—

 

(a)    

sections 33BC and 33BD of the Gas Act 1986 and sections 41A and

 

41B of the Electricity Act 1989 (promotion of reductions in carbon

 

emissions and home-heating costs),

 

(b)    

sections 103 and 103A of the Utilities Act 2000 (overall carbon

 

emissions and home-heating cost reduction targets), and

 

(c)    

section 103B of the Utilities Act 2000 (Secretary of State’s power to

 

require information about carbon emissions and home-heating cost

 

reduction targets).

 

(3)    

The first report under this section must be published before the end of 2014.

 

(4)    

The Secretary of State must lay before Parliament a copy of each report

 

under this section.”

97

Insert the following new Clause—

 

“Energy efficiency aim

 

(1)    

The Secretary of State must take such action as he considers appropriate to

 

improve the energy efficiency of residential accommodation in England so

 

as to contribute to the Secretary of State fulfilling the duty under section

 

1(1) of the Climate Change Act 2008 (reduction of net UK carbon account

 

by 2050).

 

(2)    

In subsection (1) “residential accommodation” has the meaning given by

 

section 1 of the Home Energy Conservation Act 1995.

 

(3)    

Section 2 of the Sustainable Energy Act 2003 (energy efficiency of

 

residential accommodation) ceases to have effect.

 

(4)    

In section 9 of the Sustainable Energy Act 2003 (citation, extent and

 

commencement), in subsections (3) and (5) leave out “2,”.”

98

Insert the following new Clause—

 
 

 
 

24

 
 

“Adjustment of electricity transmission charges

 

‘In section 185(11) of the Energy Act 2004 (areas suitable for renewable

 

electricity generation: end date for schemes adjusting transmission

 

charges) for “2024” substitute “2034”.”

99

Insert the following new Clause—

 

“Electricity from renewable sources: National Park authorities and Broads

 

Authority

 

(1)    

This section applies to a body which is a National Park authority or the

 

Broads Authority.

 

(2)    

The body may—

 

(a)    

produce electricity from a renewable source;

 

(b)    

establish and operate generating stations and other installations for

 

the purpose of producing electricity from a renewable source;

 

(c)    

make grants or loans to enable other persons to do anything which

 

the body may do by virtue of paragraph (a) or (b);

 

(d)    

use, sell or otherwise dispose of electricity produced by virtue of

 

the powers conferred by this section.

 

(3)    

A “renewable source” is—

 

(a)    

in England and Wales, a source listed in regulation 2 of the Sale of

 

Electricity by Local Authorities (England and Wales) Regulations

 

2010 (S.I. 2010/1910);

 

(b)    

in Scotland, a source listed in regulation 2 of the Sale of Electricity

 

by Local Authorities (Scotland) Regulations 2010 (S.I. 2010/1908).

 

(4)    

Any regulations which—

 

(a)    

are made in exercise of the power conferred by section 11(3) of the

 

Local Government (Miscellaneous Provisions) Act 1976 (power to

 

prescribe the circumstances in which local authorities may sell

 

electricity), and

 

(b)    

amend, revoke or re-enact regulation 2 of the Sale of Electricity by

 

Local Authorities (England and Wales) Regulations 2010,

 

    

may amend subsection (3)(a) for the purpose of providing what is a

 

“renewable source” in England and Wales.

 

(5)    

Any regulations which—

 

(a)    

are made in exercise of the power conferred by section 170A(3) of

 

the Local Government (Scotland) Act 1973 (power to prescribe the

 

circumstances in which local authorities may sell electricity), and

 

(b)    

amend, revoke or re-enact regulation 2 of the Sale of Electricity by

 

Local Authorities (Scotland) Regulations 2010,

 

    

may amend subsection (3)(b) for the purpose of providing what is a

 

“renewable source” in Scotland.

 

(6)    

Nothing in this section—

 

(a)    

exempts a body from the requirements of Part 1 of the Electricity

 

Act 1989, or

 

(b)    

affects what a body has power to do apart from this section.”

 
 

 
 

25

100

Insert the following new Clause—

 

“Renewable heat incentives in Northern Ireland

 

(1)    

The Department of Enterprise, Trade and Investment may make

 

regulations—

 

(a)    

establishing a scheme to facilitate and encourage renewable

 

generation of heat in Northern Ireland, and

 

(b)    

about the administration and financing of the scheme.

 

(2)    

Regulations under this section may, in particular—

 

(a)    

make provision for the Department or NIAUR to make payments,

 

or to require designated fossil fuel suppliers to make payments, in

 

specified circumstances, to—

 

(i)    

the owner of plant used or intended to be used for the

 

renewable generation of heat, whether or not the owner is

 

also operating or intending to operate the plant;

 

(ii)    

a producer of biogas or biomethane;

 

(iii)    

a producer of biofuel for generating heat;

 

(b)    

make provision about the calculation of such payments;

 

(c)    

make provision about the circumstances in which such payments

 

may be recovered;

 

(d)    

require designated fossil fuel suppliers to provide specified

 

information to the Department or NIAUR;

 

(e)    

make provision for payments to fossil fuel suppliers in specified

 

circumstances;

 

(f)    

make provision about the enforcement of obligations imposed by or

 

by virtue of the regulations (which may include a power for the

 

Department or NIAUR to impose financial penalties);

 

(g)    

confer functions on the Department or NIAUR, or both.

 

(3)    

In this section—

 

“biofuel” means liquid or gaseous fuel which is produced wholly from

 

biomass;

 

“biogas” means gas produced by the anaerobic or thermal conversion

 

of biomass;

 

“biomass” means material, other than fossil fuel or peat, which is, or

 

is derived directly or indirectly from, plant matter, animal matter,

 

fungi or algae;

 

“biomethane” means biogas which is suitable for conveyance through

 

pipes to premises in accordance with a licence under Article 8(1)(a)

 

of the Gas (Northern Ireland) Order 1996 (S.I. 1996/275 (N.I. 2))

 

(licences to convey gas);

 

“the Department” means the Department of Enterprise, Trade and

 

Investment;

 

“designated fossil fuel suppliers” means—

 

(a)    

if the regulations so provide, a specified class of fossil fuel

 

suppliers, and

 

(b)    

in any other case, all fossil fuel suppliers;

 

“fossil fuel” means—

 

(a)    

coal;

 
 

 
 

26

 
 

(b)    

lignite;

 

(c)    

natural gas (within the meaning of the Energy Act 1976);

 

(d)    

crude liquid petroleum;

 

(e)    

petroleum products (within the meaning of that Act);

 

(f)    

any substance produced directly or indirectly from a

 

substance mentioned in paragraphs (a) to (e);

 

“fossil fuel supplier” means a person who supplies fossil fuel to

 

consumers for the purpose of generating heat;

 

“functions” includes powers and duties;

 

“modify” includes amend, add to or repeal;

 

“NIAUR” means the Northern Ireland Authority for Utility

 

Regulation;

 

“owner”, in relation to any plant which the subject of a hire purchase

 

agreement, a conditional sale agreement or any agreement of a

 

similar nature, means the person in possession of the plant under

 

that agreement;

 

“plant” includes any equipment, apparatus or appliance;

 

“renewable generation of heat” means the generation of heat by

 

means of a source of energy or technology mentioned in subsection

 

(4).

 

(4)    

The sources of energy and technologies are—

 

(a)    

biomass;

 

(b)    

biofuels;

 

(c)    

fuel cells;

 

(d)    

water (including waves and tides);

 

(e)    

solar power;

 

(f)    

geothermal sources;

 

(g)    

heat from air, water or the ground;

 

(h)    

combined heat and power systems (but only if the system’s source

 

of energy is a renewable source within the meaning given by Article

 

55F of the Energy (Northern Ireland) Order 2003 (S.I. 2003/419 (N.I.

 

6)));

 

(i)    

biogas.

 

(5)    

The Department may by regulations—

 

(a)    

modify the list of sources of energy and technologies in subsection

 

(4);

 

(b)    

modify the definition of “biofuel”, “biogas” or “biomass” in

 

subsection (3).

 

(6)    

The Department may by regulations make provision, for the purposes of

 

subsection (2)(a)(iii) and the definition of “fossil fuel supplier”, specifying

 

that particular activities do or do not constitute generating heat.

 

(7)    

Any power to make regulations under this section is to be exercisable by

 

statutory rule for the purposes of the Statutory Rules (Northern Ireland)

 

Order 1979 (S.I. 1979/1573 (N.I. 12)).

 

(8)    

Regulations under this section may not be made unless a draft of the

 

regulations has been laid before, and approved by a resolution of, the

 

Northern Ireland Assembly.

 
 

 
 

27

 
 

(9)    

Regulations under this section may—

 

(a)    

provide for a person to exercise a discretion in dealing with any

 

matter;

 

(b)    

include incidental, supplementary and consequential provision;

 

(c)    

make transitory or transitional provisions or savings;

 

(d)    

make provision generally, only in relation to specified cases or

 

subject to exceptions (including provision for a case to be excepted

 

only so long as conditions specified in the regulations are satisfied);

 

(e)    

make different provision for different cases or circumstances or for

 

different purposes.”

101

Insert the following new Clause—

 

“Power for Gas and Electricity Markets Authority to act on behalf on Northern

 

Ireland authority in connection with scheme under section [Renewable

 

heat incentives in Northern Ireland]

 

(1)    

GEMA and a Northern Ireland authority may enter into arrangements for

 

GEMA to act on behalf of the Northern Ireland authority for, or in

 

connection with, the carrying out of any functions that may be conferred on

 

the Northern Ireland authority under, or for the purposes of, any scheme

 

that may be established, under section [Renewable heat incentives in Northern

 

Ireland].

 

(2)    

In this section—

 

“GEMA” means the Gas and Electricity Markets Authority;

 

“Northern Ireland authority” means—

 

(a)    

the Department of Enterprise, Trade and Investment, or

 

(b)    

the Northern Ireland Authority for Utility Regulation.”

Clause 102

102

Page 80, line 2, leave out Clause 102

Before Clause 105

103

Insert the following new Clause—

 

“Amendment of section 137 of the Energy Act 2004

 

In section 137(3) of the Energy Act 2004 (standard conditions of

 

transmission licences under Part 1 of the Electricity Act 1989)—

 

(a)    

in paragraph (a) omit “or”, and

 

(b)    

after paragraph (b) insert—

 

“(c)    

under the Energy Act 2008,

 

(d)    

under the Energy Act 2010, or

 

(e)    

under the Energy Act 2011,”.”

Clause 105

104

Page 81, line 20, leave out subsections (1) and (2) and insert—

 
 

 
 

28

 
 

“(1)    

The Home Energy Conservation Act 1995—

 

(a)    

ceases to have effect in Scotland;

 

(b)    

ceases to apply in relation to energy conservation authorities in

 

Wales.

 

(2)    

In section 1 of that Act (interpretation) in the definition of “energy

 

conservation measures” after “promotion,” insert “any available financial

 

assistance,”.

 

(3)    

In section 1 of the Sustainable Energy Act 2003 (annual report on the

 

progress towards sustainable energy aims)—

 

(a)    

subsection (1)(e) and the “and” immediately preceding it cease to

 

have effect, and

 

(b)    

subsection (1AA) ceases to have effect.

 

(4)    

In section 4 of that Act (energy efficiency of residential accommodation:

 

energy conservation authorities) subsection (13)(b) ceases to have effect.”

105

Page 81, line 27, leave out subsection (4)

Before Clause 106

106

Insert the following new Clause—

 

“Consultation

 

‘A requirement for the Secretary of State to consult which arises under or

 

by virtue of this Act may be satisfied by consultation before, as well as

 

consultation after, the passing of this Act.”

Clause 106

107

Page 82, line 2, after “Wales),” insert—

 

“(ea)    

section [Energy efficiency aim],”

108

Page 82, line 11, at end insert—

 

“(ca)    

section 33(5A) (green deal appeals: revocation or amendment of

 

delegated legislation by Scottish Ministers),”

109

Page 82, line 15, at end insert—

 

“( )    

Section [Renewable heat incentives in Northern Ireland] (renewable heat

 

incentives in Northern Ireland) extends to Northern Ireland only.

 

( )    

Section [Power for Gas and Electricity Markets Authority to act on behalf of

 

Northern Ireland authority in connection with scheme under section [Renewable

 

heat incentives in Northern Ireland]] (power for Gas and Electricity Markets

 

Authority to act on behalf of Northern Ireland authority in connection with

 

scheme under section [Renewable heat incentives in Northern Ireland]) extends

 

to England and Wales, Scotland and Northern Ireland.”

110

Page 82, line 18, leave out “28” and insert “[Early repayment of green deal finance]

 
 

 
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Revised 15 September 2011