Energy Bill

Page 5, line 9, at end insert—

“(f)   to give priority to demand side management and demand
reduction measures in preference to increased generating capacity
whenever and wherever this is economically appropriate;

(g)   to progressively increase the energy efficiency of the United
Kingdom as measured in terms of quantity of energy used per unit
of GDP”

Page 5, line 9, at end insert—

“(f)   the desirability of promoting effective competition between
persons engaged in, or in commercial activities connected with, the
generation, transmission, distribution or supply of electricity or the
provision or use of electricity interconnectors, wherever
appropriate.”

Page 5, line 9, at end insert—

“( )   the duties of the Secretary of State under sections 3A to 3D of the
Electricity Act 1989 (principle objective and general duties).”

Page 5, line 12, at end insert—

“( )   The Secretary of State and the Authority must ensure that any
arrangements made under this section are fully reflected in the future plans
of the Electricity Distribution Network Operators.”

Insert the following new Clause—

“Divestment of retail business

(1)   Any electricity generator which also supplies electricity to either domestic,
commercial or industrial users shall, within two years of this Act coming
into force, divest itself of its supplier business so that—

(a)   an electricity generator shall have no financial interest in, or
exercise any right over, a supplier of electricity or gas;

(b)   a supplier of electricity or gas shall have no financial interest in, or
exercise any right over, an electricity generator;

(c)   no person may hold a directorship of an electricity generator and a
supplier of electricity or gas concurrently,

and any contracts entered into between any of the divesting parties shall
cease to have effect when this section comes into effect.

(2)   Generators which have a direct contract to supply the majority of their
output to a defined site through a private transmission scheme are exempt
from this section.”

Page 13, line 41, after “electricity” insert “(which includes capacity to supply
electricity taking account of projected growth over a 10 year period)”

Page 13, line 42, after first “electricity” insert “or demand-side response measures
or storage of electricity”

Page 15, line 22, at end insert—

“( )   Electricity capacity regulations must include provision for capacity to be
auctioned to demand reduction providers before any other providers.”

Page 19, line 13, at end insert—

“( )   The Secretary of State shall modify section 6(1) to provide for an additional
license condition authorising a person to store electricity.”

Page 20, line 3, after “to” insert “the respective”

Page 20, line 3, after “Authority” insert “and the Secretary of State”

Page 20, line 22, leave out from “instrument” to end of line 25

Page 20, line 28, leave out from “instrument” to “is” in line 29 and insert “under
section 27”

Page 21, line 38, at end insert—

“(2)   The Secretary of State must ensure that any arrangements made under this
section take account of the role of Electricity Distribution Network
Operators in achieving permanent reductions in demand for electricity.”

Leave out Clause 37 and insert the following new Clause—

“Pilot schemes for electricity demand reduction

(1)   The Secretary of State must—

(a)   make arrangements—

(i)   for the purpose of reducing demand for electricity; and

(ii)   wholly or partly for the purpose of determining provision to
be included in electricity capacity regulations; and

(b)   make arrangements for the purpose of piloting a measure (or
measures) to secure a reduction in the demand for electricity.

(2)   Arrangements under this section may be paid for either by money
provided by Parliament or by the means established for the provision of
capacity agreements in sections 22 and 24.”

Insert the following new Clause—

“Strategy on interconnection

Within 12 months of this Act coming into force, the Secretary of State shall
bring forward a strategy for the UK to increase its interconnection links
with other European countries, in order to support the continued
development of a European internal electricity market.”

Page 7, line 29, at end insert—

“(4)   Regulations must set the duration of support provided by CFDs to
renewable technologies at a minimum of 25 years.”

Page 8, line 30, at end insert—

“( )   Eligibility rules will not exclude electricity supplied from generating
capacity located outside the United Kingdom.”

Insert the following new Clause—

“Regulations: backstop power purchase agreements

(1)   Regulations made under section 6 must include provision under which—

(a)   every eligible generator who is a party to a CFD may, in specified
circumstances, by notice in writing require the Authority (or such
other person on whom the regulations confer functions) to secure,
within no later than one month after the notice is given, that an
electricity supplier (or a person of such other description as may be
specified) enter into a power purchase agreement on terms set out
in, or determined in accordance with, the regulations (a “backstop
PPA”); and

(b)   for the duration of the backstop PPA, the strike price under that
CFD (or under any other CFD entered into in connection with the
backstop PPA) is set at a level specified in, or determined in
accordance with, the regulations.

(2)   In determining the provision to be made under this section, the Secretary
of State must have regard, in particular, to—

(a)   the desirability of ensuring that every eligible generator who is a
party to a CFD is able to borrow money commercially for its
business purposes at reasonable cost and over a reasonable period
(including borrowing which involves the lender taking an equity
stake in the generator);

(b)   accordingly, the need to ensure that the terms of every backstop
PPA, and the level of the associated strike price, are such that every
backstop PPA is demonstrably viable for the eligible generator.

(3)   Where, at the time a CFD is made, regulations make provision for any
matter referred to in subsection (1), subsequent regulations may not alter
that provision in relation to that CFD during its term.

(4)   The Secretary of State may exercise the powers conferred by Chapter 6 of
this Part (modification of licence conditions) for the purpose of giving
effect to provision made under this section.

(5)   The Secretary of State must keep under review the effectiveness of
provision proposed or made under this section for achieving the objects set
out in paragraphs (a) and (b) of subsection (2).

(6)   In this section, “specified” means specified in the regulations.”

Insert the following new Clause—

“Alternative route to market

(1)   If at any time after the section (Regulations: backstop power purchase
agreements) comes into force, the Secretary of State is not satisfied that
provision made under that section will be effective, or (as the case may be)
has been effective, to achieve the objects set out in paragraphs (a) and (b) of
subsection (2) of that section, the Secretary of State must as soon as
practicable exercise the powers conferred by Chapter 6 of this Part so as to
establish an auction market (the “green power auction market”) in which
eligible generators are entitled to offer, and other persons (including, in
particular, electricity suppliers) are entitled to bid for, electricity generated
from renewable sources.

(2)   The Secretary of State must exercise those powers, and take such other
steps (including the exercise of any other power conferred by or under a
provision of this Part) as the Secretary of State considers necessary, for the
purpose of ensuring that—

(a)   the green power auction market begins to operate as soon as
reasonably practicable and does not cease to operate until expiry of
the last CFD that has been made; and

(b)   the reference price under a CFD entered into by a generator who is
a party to an agreement made through the green power auction
market is based on the price payable to the generator under that
agreement.”

Page 11, line 7, at end insert—

“(d)   conferring on the Secretary of State further powers to require
operators of generating stations which use woody biomass fuel to
provide a fuel supply strategy for approval by Ministers.”

Page 12, line 14, at end insert—

“( )   The powers of the Secretary of State under this section must be exercised
with a view to ensuring that, within six months of commencement of this
section, an order is in force making provision pursuant to subsections (1)(c)
and (4)(a) and (c) for targets relating to the contribution to be made by
generating stations located outside the United Kingdom to electricity
supply in the United Kingdom.”

Insert the following new Clause—

“Domestic microhydro power

(1)   Domestically based microhydro power shall be exempt from non-domestic
rates.

(2)   For the purposes of the section “domestically based microhydro power” is
a single plant located within the curtelege of an owner or owner’s
residential property with a plant capacity of up to and including 1250 kW.”

Insert the following new Clause—

“Reduction of landfilling of organic waste

The Secretary of State must, as soon as reasonably practicable, set out a plan
and timeframe for the reduction and eventual elimination of landfilling of
organic waste in order to make it available for 100% renewable energy
generation, and other appropriate uses consistent with the waste hierarchy
as defined in the Waste (England and Wales) Regulations 2011.”

Page 108, line 20, at end insert—

“( )   Part 1 (decarbonisation);”

Page 108, line 30, at end insert—

“( )   Section (Fuel poverty) extends to England and Wales only.”

Page 109, line 18, at end insert—

“( )   section (Feed-in tariffs: increase in maximum capacity of plant) (feed-in
tariffs: increase in maximum capacity of plant);”

Page 109, line 18, at end insert—

“( )   section (Fuel poverty) (fuel poverty);”