Energy Bill (HL Bill 30)

(3) Subsection (4) applies where, after the consultation, the Secretary of State
decides to make the modifications (whether in the form published under
subsection (1)(a) or in a modified form).

(4) The Secretary of State must publish a statement of the decision, which must—

(a) 5contain details of the modifications to be made under section 127(1);

(b) state when the modifications are to take effect.

(5) Where the Secretary of State makes a modification of the standard conditions
of a licence of any type, the Authority must—

(a) make the same modification of those standard conditions for the
10purposes of their incorporation in licences of that type granted after
that time, and

(b) publish the modification.

(6) A modification of part of a standard condition of a particular licence does not
prevent any other part of the condition from continuing to be regarded as a
15standard condition for the purposes of Part 1 of the Gas Act 1986 or Part 1 of
EA 1989.

(7) The power in section 127(1) may not be exercised after 31 December 2018.

129 General duties of Secretary of State

(1) Sections 4AA to 4B of the Gas Act 1986 (principal objective and general duties)
20apply in relation to functions of the Secretary of State under section 127 or 128
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 EA 1989 (principal objective and general duties) apply in
25relation to functions of the Secretary of State under section 127 or 128 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.

130 Consequential provision

(1) The Utilities Act 2000 is amended as follows.

(2) 30In section 33 (standard conditions of electricity licences), in subsection (1)(f),
omit “76 or”.

(3) In section 81 (standard conditions of gas licences), in subsection (2), for “or
under Chapter 1 of Part 1 or section 76 or 98 of the Energy Act 2011” substitute
“, under Chapter 1 of Part 1 or section 98 of the Energy Act 2011 or under
35section 127 of the Energy Act 2013”.

(4) In the Energy Act 2011, sections 76 to 78 (power to modify energy supply
licences: information about tariffs) are repealed.

Licensable activities

131 Powers to alter activities requiring licence: activities related to supply
40contracts

(1) In section 41C of the Gas Act 1986 (power to alter activities requiring licence),

after subsection (4) insert—

“(4A) For the purposes of subsection (4), activities connected with the supply
of gas include the following activities, whether or not carried on by a
person supplying gas—

(a) 5giving advice, information or assistance in relation to contracts
for the supply of gas to persons who are or may become
customers under such contracts, and

(b) the provision of any other services to such persons in
connection with such contracts.”

(2) 10In section 56A of EA 1989 (power to alter activities requiring licence), after
subsection (4) insert—

“(4A) For the purposes of subsection (4), activities connected with the supply
of electricity include the following activities, whether or not carried on
by a person supplying electricity—

(a) 15giving advice, information or assistance in relation to contracts
for the supply of electricity to persons who are or may become
customers under such contracts, and

(b) providing any other services to such persons in connection with
such contracts.”

20Consumer redress orders

132 Consumer redress orders

Schedule 14 (which enables the Authority to impose requirements on a
regulated person to take remedial action in respect of loss, damage or
inconvenience caused to consumers of gas or electricity) has effect.

CHAPTER 2 25Miscellaneous

Offshore transmission

133 Offshore transmission systems

(1) EA 1989 is amended as follows.

(2) In section 4 (prohibition on unlicensed supply), after subsection (3A) insert—

“(3AA) 30Subsection (3A) is subject to section 6F (offshore transmission during
commissioning period).”

(3) After section 6E insert—

“6F Offshore transmission during commissioning period

(1) For the purposes of this Part a person is not to be regarded as
35participating in the transmission of electricity if the following four
conditions are met.

(2) The first condition is that the transmission takes place over an offshore
transmission system (“the system”) or anything forming part of it.

(3) The second condition is that the transmission takes place during a
commissioning period (see section 6G).

(4) The third condition is that—

(a) a request has been made to the Authority in accordance with the
5tender regulations for a tender exercise to be held for the
granting of an offshore transmission licence in respect of the
system,

(b) the Authority has determined in accordance with those
regulations that the request relates to a qualifying project, and

(c) 10the system, or anything forming part of it, has not been
transferred as a result of the exercise to the successful bidder.

(5) The fourth condition is that—

(a) the person who is the developer in relation to the tender
exercise is also the operator of a relevant generating station, and

(b) 15the construction or installation of the system is being or has
been carried out by or on behalf of, or by or on behalf of a
combination of, any of the following—

(i) the person mentioned in paragraph (a);

(ii) a body corporate associated with that person at any time
20during the period of construction or installation;

(iii) a previous developer;

(iv) a body corporate associated with a previous developer
at any time during the period of construction or
installation.

(6) 25For the purposes of subsection (1), it does not matter whether or not the
person mentioned in that subsection is the developer in relation to the
tender exercise.

(7) For the purposes of subsection (5)(b)(iii) and (iv), a person is a
“previous developer” in relation to the system if—

(a) 30the person does not fall within subsection (5)(a), but

(b) at any time during the period of construction or installation, the
person was the developer in relation to the tender exercise.

(8) In this section—

• “associated”, in relation to a body corporate, is to be construed in
  35accordance with paragraph 37 of Schedule 2A;

• “developer”, in relation to a tender exercise, means any person
  within section 6D(2)(a) (person who makes the connection
  request, including any person who is to be so treated by virtue
  of section 6D(4));

• 40“offshore transmission” has the meaning given by section 6C(6);

• “offshore transmission licence” has the meaning given by section
  6C(5);

• “offshore transmission system” means a transmission system used
  for purposes connected with offshore transmission;

• 45“operator”, in relation to a generating station, means the person
  who is authorised to generate electricity from that station—

  (a)

  by a generation licence granted under section 6(1)(a), or

  (b)

  in accordance with an exemption granted under section
  5(1);

Energy BillPage 103

• “qualifying project” is to be construed in accordance with the
  tender regulations;

• “successful bidder” and “tender exercise” have the same meanings
  as in section 6D;

• 5“relevant generating station”, in relation to an offshore
  transmission system, means a generating station that generates
  electricity transmitted over the system;

• “the tender regulations” means regulations made under section
  6C.

6G 10Section 6F: meaning of “commissioning period”

(1) For the purposes of section 6F(3), transmission over an offshore
transmission system (or anything forming part of it) takes place during
a “commissioning period” if it takes place at any time—

(a) before a completion notice is given in respect of the system, or

(b) 15during the period of 18 months beginning with the day on
which such a notice is given.

(2) A “completion notice”, in relation to a transmission system, is a notice
which—

(a) is given to the Authority by the relevant co-ordination licence
20holder in accordance with the co-ordination licence, and

(b) states that it would be possible to carry on an activity to which
section 4(1)(b) applies by making available for use that system.

(3) The Secretary of State may by order amend subsection (1) so as to
specify a period of 12 months in place of the period of 18 months.

(4) 25An order under subsection (3) may be made only so as to come into
force during the period—

(a) beginning 2 years after the day on which section 133 of the
Energy Act 2013 comes into force, and

(b) ending 5 years after that day.

(5) 30An amendment made by an order under subsection (3) does not apply
in relation to any transmission of electricity over a transmission system
if—

(a) but for the making of the order, the person participating in the
transmission would, by virtue of section 6F, have been regarded
35as not participating in the transmission, and

(b) the determination mentioned in subsection (4)(b) of that section
in relation to the system was made on or before the day on
which the order is made.

(6) In this section—

• 40“co-ordination licence” has the same meaning as in Schedule 2A
  (see paragraph 38(1) of that Schedule);

• “relevant co-ordination licence-holder” has the meaning given by
  paragraph 13(4) of Schedule 2A.

6H Sections 6F and 6G: modification of codes or agreements

(1) 45The Authority may—

(a) modify a code maintained in accordance with the conditions of
a transmission licence or a distribution licence;

(b) modify an agreement that gives effect to a code so maintained.

(2) The Authority may make a modification under subsection (1) only if it
considers it necessary or desirable for the purpose of implementing or
facilitating the operation of section 6F or 6G.

(3) 5The power to make modifications under subsection (1) includes a
power to make incidental, supplemental, consequential or transitional
modifications.

(4) The Authority must consult such persons as the Authority considers
appropriate before making a modification under subsection (1).

(5) 10Subsection (4) may be satisfied by consultation before, as well as
consultation after, the passing of the Energy Act 2013.

(6) As soon as reasonably practicable after making a modification under
subsection (1), the Authority must publish a notice stating its reasons
for making it.

(7) 15A notice under subsection (6) is to be published in such manner as the
Authority considers appropriate for the purpose of bringing the
matters to which the notice relates to the attention of persons likely to
be affected by it.

(8) A modification under subsection (1) may not be made after the end of
20the period of 7 years beginning with the day on which section 133 of the
Energy Act 2013 comes into force.”

(4) In section 64 (interpretation of Part 1), in subsection (1B) at the end insert “and
section 6F”.

Fees

134 25Fees for services provided for energy resilience purposes

(1) The Secretary of State may require fees to be paid for services or facilities
provided or made available by the Secretary of State in the exercise of energy
resilience powers.

(2) “Energy resilience powers” are any powers exercised by the Secretary of State
30for the purposes of, or in connection with, preventing or minimising disruption
to the energy sector in Great Britain (including disruption to the supply of fuel
in Great Britain).

(3) The amount of any fee charged under this section is—

(a) such amount as may be specified in, or determined by or in accordance
35with, regulations made by the Secretary of State, or

(b) if no such regulations are made, an amount specified in, or determined
by or in accordance with, a direction given by the Secretary of State for
the purposes of this section.

(4) Regulations or a direction under this section may provide for the amounts of
40fees to be different in different cases and, in particular, for fees in respect of the
exercise of the same power to be of different amounts in different
circumstances.

(5) Regulations under subsection (3)(a) must be made by statutory instrument and
any such instrument is subject to annulment in pursuance of a resolution of
either House of Parliament.

(6) The Secretary of State must lay before Parliament a statement of any fees
5specified in, or determined by or in accordance with, a direction given under
subsection (3)(b).

135 Fees in respect of decommissioning and clean-up of nuclear sites

(1) Chapter 1 of Part 3 of the Energy Act 2008 (nuclear sites: decommissioning and
clean-up) is amended as follows.

(2) 10After section 45 (duty to submit funded decommissioning programme)
insert—

“45A Costs incurred in considering proposed programmes

(1) A person who informs the Secretary of State of a proposal to submit a
funded decommissioning programme under section 45 must pay to the
15Secretary of State such fee as may be determined in accordance with
regulations under section 54, in respect of the costs mentioned in
subsection (2), at a time determined in accordance with such
regulations.

(2) The costs are those incurred by the Secretary of State in relation to the
20consideration of the proposed programme (or any particular aspect of
it), including, in particular, the costs of obtaining advice in relation to
it.”

(3) In section 46 (approval of programme), after subsection (3G) insert—

“(3H) Where the Secretary of State makes or amends an agreement under
25subsection (3A), or it is proposed that such an agreement be made or
amended, the site operator must pay to the Secretary of State such fee
as may be determined in accordance with regulations under section 54,
in respect of the costs mentioned in subsection (3I), at a time
determined in accordance with such regulations.

(3I) 30The costs are those incurred by the Secretary of State in relation to the
consideration of the agreement or amendment, including, in particular,
the costs of obtaining advice in relation to the agreement or
amendment.”

(4) In section 49 (procedure for modifying approved programme)—

(a) 35in subsection (3), after “made,” insert “or advice is sought from the
Secretary of State about the making of a proposal,”, and

(b) in subsection (4), in the opening words after “proposal” insert “(or the
making of a proposal)”.

(5) In section 66 (disposal of hazardous material), after subsection (3) insert—

“(3A) 40The Secretary of State may make regulations providing for a person
who makes a proposal to the Secretary of State to enter an agreement of
the kind mentioned in subsection (1), or proposes an amendment to
such an agreement, to pay a fee to the Secretary of State in respect of the
costs incurred in relation to the consideration of the proposal,
45including, in particular, the costs of obtaining advice in relation to it.

(3B) The regulations may, in particular, make provision about—

(a) when the fee is to be paid;

(b) how the amount of the fee is to be determined.”

Review

136 5Review of certain provisions of Part 6

(1) As soon as reasonably practicable after the end of the period of 5 years
beginning with the relevant commencement date, the Secretary of State must
carry out a review of—

(a) section 132 and Schedule 14 (consumer redress orders);

(b) 10section 135 (fees in respect of decommissioning etc).

(2) The relevant commencement date—

(a) in relation to section 132 and Schedule 14, is the date on which that
section and Schedule come into force;

(b) in relation to section 135, is the date on which that section comes into
15force.

(3) The Secretary of State must set out the conclusions of the review in a report.

(4) The report must, in particular—

(a) set out the objectives of the provisions subject to review,

(b) assess the extent to which those objectives have been achieved, and

(c) 20assess whether those objectives remain appropriate and, if so, the
extent to which those objectives could be achieved in a way that
imposes less regulation.

(5) The Secretary of State must lay the report before Parliament.

Part 7 25Final

137 Interpretation of Act

(1) In this Act—

• “the Authority” means the Gas and Electricity Markets Authority;

• “EA 1989” means the Electricity Act 1989;

• 30“functions” includes powers and duties;

• “primary legislation” means—

  (a)

  an Act of Parliament,

  (b)

  an Act of the Scottish Parliament,

  (c)

  an Act or Measure of the National Assembly for Wales, or

  (d)

  35Northern Ireland legislation.

(2) A reference in this Act to—

(a) the Department of Enterprise, Trade and Investment, or

(b) the Department of Environment,

is to that Department in Northern Ireland.

138 Transfer schemes

(1) This section applies in relation to a scheme made by the Secretary of State
under any of the following provisions (a “transfer scheme”)—

(a) Schedule 1;

(b) 5paragraph 16 of Schedule 2;

(c) Schedule 3;

(d) Schedule 11;

(e) Schedule 13.

(2) Subject to subsection (3), the Secretary of State may modify a transfer scheme.

(3) 10If a transfer under the scheme has taken effect, any modification under
subsection (2) that relates to the transfer may be made only with the agreement
of the person (or persons) affected by the modification.

(4) A modification takes effect from such date as the Secretary of State may
specify; and that date may be the date when the original scheme came into
15effect.

(5) A transfer scheme may—

(a) include incidental, supplementary and consequential provision;

(b) make transitory or transitional provision or savings;

(c) make different provision for different cases or circumstances or for
20different purposes;

(d) make provision subject to exceptions.

(6) In the provisions mentioned in subsection (1), “subordinate legislation”
means—

(a) subordinate legislation within the meaning of the Interpretation Act
251978 (see section 21(1) of that Act), or

(b) an instrument made under—

(i) an Act of the Scottish Parliament,

(ii) an Act or Measure of the National Assembly for Wales, or

(iii) Northern Ireland legislation.

139 30Financial provisions

(1) The following are to be paid out of money provided by Parliament—

(a) any expenditure incurred by the Secretary of State by virtue of this Act;

(b) any expenditure incurred by the Authority by virtue of this Act;

(c) any increase attributable to this Act in the sums payable out of money
35so provided under any other enactment.

(2) The expenditure referred to in subsection (1)(a) includes expenditure incurred
by the Secretary of State for the purposes of, or in connection with—

(a) the establishment of a CFD counterparty;

(b) making payments or providing financial assistance to a CFD
40counterparty;

(c) obtaining advice and assistance in relation to the exercise of functions
conferred on the Secretary of State by or by virtue of Chapter 2 or 3 of
Part 2;

(d) making payments or providing financial assistance to a settlement
45body in relation to capacity agreements (see section 22(4)(g));

(e) making payments or providing financial assistance to the national
system operator, a person or body on whom a function is conferred by
virtue of section 29 or an alternative delivery body in connection with
the exercise of EMR functions.

(3) 5Financial assistance or payments includes financial assistance or payments
given subject to such conditions as may be determined by, or in accordance
with arrangements made by, the Secretary of State; and such conditions may in
particular in the case of a grant include conditions for repayment in specified
circumstances.

(4) 10In this section—

• “alternative delivery body” and “EMR functions” have the same meaning
  as in section 40;

• “CFD counterparty” and “national system operator” have the same
  meaning as in Chapter 2 of Part 2;

• 15“financial assistance” means grants, loans, guarantees or indemnities, or
  any other kind of financial assistance.

140 Extent

(1) Subject to the rest of this section, this Act extends to England and Wales and
Scotland.

(2) 20The following also extend to Northern Ireland—

(a) in Part 2—

(i) Chapter 1 (general considerations),

(ii) Chapter 2 (contracts for difference),

(iii) Chapter 4 (investment contracts),

(iv) 25Chapter 7 (the renewables obligation: transitional
arrangements),

(v) Chapter 8 (emissions performance standard), and

(vi) section 52 (exemption from liability in damages);

(b) subject to subsections (4) and (5), Part 3 (nuclear regulation);

(c) 30this Part.

(3) Section 135 extends to England and Wales and Northern Ireland only.

(4) Part 2 of Schedule 8 extends to England and Wales and Scotland only.

(5) The amendments made by Schedule 12 have the same extent as the provisions
they amend, except that—

(a) 35paragraph 24 (amendment to section 24A of the Nuclear Installations
Act 1965 as it has effect in England and Wales and Scotland) extends to
England and Wales and Scotland only;

(b) the other amendments in that Schedule of the Nuclear Installations Act
1965 extend to England and Wales, Scotland and Northern Ireland
40only;

(c) paragraphs 38 to 48 (amendments of the Nuclear Safeguards and
Electricity (Finance) Act 1978 and Nuclear Safeguards Act 2000) extend
to England and Wales, Scotland and Northern Ireland only;

(d) paragraphs 65 to 67(amendments of the Radioactive Substances Act
451993) extend to Scotland only.

141 Commencement

(1) The provisions of this Act come into force on such day as the Secretary of State
may by order made by statutory instrument appoint, subject to subsections (2)
and (3).

(2) 5The following provisions come into force at the end of the period of 2 months
beginning with the day on which this Act is passed—

(a) Chapter 5 of Part 2 (conflicts of interest and contingency
arrangements);

(b) Chapter 6 of Part 2 (access to markets);

(c) 10Chapter 7 of Part 2 (renewables obligation: transitional arrangements);

(d) Chapter 8 of Part 2 (emissions performance standard);

(e) Part 5 (strategy and policy statement), other than section 126(1), (4) and
(5);

(f) sections 127 to 130 (domestic tariffs: modifications of energy supply
15licences);

(g) section 131 (powers to alter activities requiring licences: activities
related to supply contracts);

(h) section 132 (consumer redress orders);

(i) section 133 (offshore transmission systems);

(j) 20section 135 (fees in respect of decommissioning and clean-up of nuclear
sites).

(3) The following provisions come into force on the day on which this Act is
passed—

(a) Part 1 (decarbonisation);

(b) 25Chapter 1 of Part 2 (general considerations);

(c) Chapter 2 of Part 2 (contracts for difference);

(d) Chapter 3 of Part 2 (capacity market);

(e) Chapter 4 of Part 2 (investment contracts);

(f) Chapter 9 of Part 2 (miscellaneous);

(g) 30section 101 (subordinate legislation under Part 3);

(h) section 102(1) (power to make transitional provision in relation to Part
3);

(i) section 103 (transfer of staff etc for purposes of Part 3);

(j) section 104(2) (power to make consequential amendments in relation to
35Part 3);

(k) section 106 (review of Part 3);

(l) section 136 (review of certain provisions of Part 6);

(m) the provisions of this Part (including this section).

(4) An order under subsection (1) may—

(a) 40appoint different days for different purposes;

(b) make transitional provision and savings.

142 Short title

This Act may be cited as the Energy Act 2013.