Energy Bill

to be moved
in grand committee

[Supplementary to the Fourth Marshalled List]

Clause 5



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”

Clause 10



Page 8, line 30, at end insert—

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

After Clause 14






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).

(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

Clause 17



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.”

Prepared 12th July 2013