Energy Bill (HL Bill 30)

(c) the effect of paragraph 19 of Schedule 6 to the Finance Act 2000
(supplies of electricity from renewable sources exempted from
the climate change levy) in relation to electricity generated from
each of those sources;

(d) 5the desirability of securing the long term growth, and economic
viability, of the industries associated with the generation of
electricity from renewable sources;

(e) the likely effect of the proposed banding provision on the
number of certificate issued by the relevant authority, and the
10impact this will have on consumers;

(f) the potential contribution of electricity generated from each
renewable source to the attainment of any target which relates
to the generation of electricity or the production of energy and
is imposed by, or results from or arises out of, an EU obligation.

(5) 15For the purposes of subsection (4)(a), the costs associated with
generating electricity from a renewable source include any costs
associated with the production or supply of heat produced in
connection with that generation.

(6) For the purposes of subsection (4)(b), an operator’s income associated
20with the generation of electricity from a renewable source includes any
income connected with—

(a) the acquisition of the renewable source;

(b) the supply of heat produced in connection with the generation;

(c) the disposal of any by-product of the generation process.

(7) 25After the first order containing banding provision is made by the
Secretary of State, no subsequent order containing such provision may
be made by the Secretary of State except following a review held by
virtue of subsection (8).

(8) A certificate purchase order—

(a) 30may authorise the Secretary of State to review the banding
provision at such intervals as are specified in or determined in
accordance with the order, and

(b) may authorise the Secretary of State to review the whole or any
part of the banding provision at any time when the Secretary of
35State is satisfied that one or more of the specified conditions is
satisfied.

32W Section 32V: transitional provision and savings

(1) This section applies where a certificate purchase order contains
banding provision.

(2) 40The order may provide for the effect of any banding provision made in
an earlier such order to continue, in such circumstances as may be
specified, in relation to—

(a) the electricity generated by generating stations of such
descriptions as may be specified, or

(b) 45so much of the electricity as may be determined in accordance
with the order.

(3) The order may provide for—

(a) the effect of any banding provision made in a renewables
obligation order by virtue of section 32D(1) to apply, in such
circumstances as may be specified, in relation to GB certificates
as it applied in relation to renewables obligation certificates;

(b) 5the effect of any banding provision made in an order under
Article 52 of the Energy (Northern Ireland) Order 2003, by
virtue of Article 54B(1) of the Order, to apply, in such
circumstances as may be specified, in relation to NI certificates
as it applied in relation to Northern Ireland RO certificates.

(4) 10Section 32V(4) and (7) do not apply in relation to provision of the kind
mentioned in subsection (2) or (3) above.

(5) Subsection (7) applies to a generating station in respect of which a
statutory grant has been awarded if—

(a) the generating station is of a specified description, or

(b) 15the circumstances of the case meet specified requirements.

(6) The requirements specified under subsection (5)(b) may relate to the
time when the grant was awarded (whether a time before or after the
coming into force of this section).

(7) A certificate purchase order which contains banding provision may
20provide for the operation of that provision in relation to electricity
generated by a generating station to which this subsection applies to be
conditional upon the operator of the station agreeing—

(a) if the grant or any part of it has been paid, to repay to the person
who made the grant (“the payer”) the whole or a specified part
25of the grant or part before the repayment date,

(b) to pay to the payer interest on an amount repayable under
paragraph (a) for such period, and at such rate, as may be
determined in accordance with the order (which may confer the
function of making the determination on a person), and

(c) 30if the grant or any part of it has not yet been paid, to consent to
the cancellation of the award of the grant or part.

(8) For the purposes of subsection (7)—

(a) “the repayment date” means the date specified in or determined
in accordance with the order, and

(b) 35the period for which interest is payable must not begin before
the grant was paid or, if the repayment relates to an instalment
of the grant, before the instalment was paid.

(9) In this section “statutory grant” means—

(a) a grant awarded under section 5(1) of the Science and
40Technology Act 1965 (grants to carry on or support scientific
research), or

(b) any other grant which is payable out of public funds and
awarded under or by virtue of an Act or other statutory
provision (as defined by section 1(f) of the Interpretation Act
45(Northern Ireland) 1954).

(10) This section is without prejudice to section 32Y(1)(b).

32X Certificate purchase orders: information

(1) A certificate purchase order may provide for—

(a) the Authority to require a person to provide it with information,
or with information of a particular kind, which in the
5Authority’s opinion is relevant to the question whether a GB
certificate is, or was or will in future be, required to be issued to
the person;

(b) the Northern Ireland authority to require a person to provide it
with information, or with information of a particular kind,
10which in the authority’s opinion is relevant to the question
whether a NI certificate is, or was or will in future be, required
to be issued to the person.

(2) That information must be given to the relevant authority in whatever
form it requires.

(3) 15A certificate purchase order may—

(a) require operators of generating stations generating electricity
(wholly or partly) from biomass to give specified information,
or information of a specified kind, to the relevant authority;

(b) specify what, for this purpose, constitutes “biomass”;

(c) 20require the information to be given in a specified form and
within a specified period;

(d) authorise or require the relevant authority to postpone the issue
of certificates to the operator of a generating station who fails to
comply with a requirement imposed by virtue of paragraph (a)
25or (c) until such time as the failure is remedied;

(e) authorise or require the relevant authority to refuse to issue
certificates to such a person or to refuse to issue them unless the
failure is remedied within a specified period.

(4) The relevant authority may publish information obtained by virtue of
30subsection (3).

(5) No person is required by virtue of 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.

32Y 35Certificate purchase orders: general provision

(1) A certificate purchase order may—

(a) make further provision as to the functions of the relevant
authority in relation to matters dealt with by the order;

(b) make transitional provision and savings;

(c) 40provide for anything falling to be calculated or otherwise
determined under the order to be calculated or determined by
such persons, in accordance with such procedure and by
reference to such matters and to the opinion of such persons, as
may be specified in the order;

(d) 45make different provision for different cases or circumstances.

(2) Provision made by virtue of subsection (1)(b) may, in particular,
include provision for—

(a) renewables obligation certificates, issued in respect of a period
before the imposition of the certificate purchase obligation, to
be treated as if they were GB certificates issued in respect of a
subsequent period for which the order is in force;

(b) 5Northern Ireland RO certificates, issued in respect of a period
before the imposition of the certificate purchase obligation, to
be treated as if they were NI certificates issued in respect of a
subsequent period for which the order is in force.

(3) Provision made by virtue of subsection (1)(d) may, in particular,
10make—

(a) different provision in relation to different suppliers;

(b) different provision in relation to generating stations of different
descriptions;

(c) different provision in relation to different localities or different
15parts of the United Kingdom.

(4) In subsection (3) “supplier” means an electricity supplier or a Northern
Ireland supplier.

(5) The Authority and the Northern Ireland authority may enter into
arrangements for the Authority to act on behalf of the Northern Ireland
20authority for, or in connection with, the carrying out of any functions
conferred on the Northern Ireland authority under, or for the purposes
of, a certificate purchase order.

(6) The duties imposed on the Secretary of State by section 3A (principal
objective and general duties in carrying out functions under this Part)
25do not apply in relation to the exercise of a power under section 32N to
make a certificate purchase order so far as it is made for or in
connection with imposing the certificate purchase obligation on the
purchasing body of NI certificates.

32Z Certificate purchase orders: procedure

(1) 30Before making a certificate purchase order, the Secretary of State must
consult—

(a) the Authority,

(b) the Northern Ireland authority,

(c) the Council,

(d) 35the General Consumer Council for Northern Ireland,

(e) such electricity suppliers and Northern Ireland suppliers that
may be required to pay the certificate purchase levy as the
Secretary of State considers appropriate,

(f) such generators of electricity from renewable sources as the
40Secretary of State considers appropriate, and

(g) such other persons, if any, as the Secretary of State considers
appropriate.

(2) A certificate purchase order is not to be made unless a draft of the
instrument containing it has been laid before and approved by a
45resolution of each House of Parliament.

(3) The Secretary of State must, subject to subsection (5), consult the
Scottish Ministers before making a certificate purchase order that
extends to Scotland.

(4) The Secretary of State must, subject to subsection (5), obtain the consent
of the Northern Ireland department before making a certificate
purchase order that extends to Northern Ireland.

(5) Except as provided by subsection (6), the Secretary of State is not
5required to—

(a) consult the Scottish Ministers under subsection (3), or

(b) obtain the consent of the Northern Ireland department under
subsection (4),

in respect of any provision of a certificate purchase order that is made
10by virtue of section 32O(2)(m), 32P or 32Q (which together confer
power to make provision about the certificate purchase levy).

(6) Designation of the Northern Ireland department as the administrator of
the certificate purchase levy by virtue of section 32P(8)(b) requires the
consent of that department.

32Z1 15Interpretation of sections 32N to 32Z1

(1) In this section and sections 32N to 32Z (“the relevant sections”), the
following terms have the meanings given in section 32M(1)—

• “fossil fuel” (but see subsection (4));

• “generated”;

• 20“Northern Ireland authority”;

• “Northern Ireland supplier”;

• “renewables obligation certificate”;

• “renewables obligation order”.

(2) In the relevant sections—

• 25“administrator”, in relation to the certificate purchase levy, is to be
  construed in accordance with section 32P(7) to (10);

• “banding provision” is to be construed in accordance with section
  32V(3)

• “CFD counterparty” has the same meaning as in Chapter 2 of Part
  302 of the Energy Act 2013 (see section 7 of that Act);

• “certificate purchase levy” is to be construed in accordance with
  section 32P;

• “certificate purchase order” is to be construed in accordance with
  section 32N;

• 35“the certificate purchase obligation” is to be construed in
  accordance with section 32N(3);

• “distribution system” includes a distribution system within the
  meaning of Part 2 of the Electricity (Northern Ireland) Order
  1992, and “distributing” is to be construed accordingly;

• 40“GB certificate” is to be construed in accordance with section 32S;

• “NI certificate” is to be construed in accordance with section 32T;

• “the Northern Ireland department” means the Department of
  Enterprise, Trade and Investment;

• “Northern Ireland RO certificate” means a certificate issued by the
  45Northern Ireland authority in accordance with provision
  included in an order under Article 52 of the Energy (Northern
  Ireland) Order 2003;

Energy BillPage 45

• “the purchasing body of GB certificates” is to be construed in
  accordance with section 32N(4);

• “the purchasing body of NI certificates” is to be construed in
  accordance with section 32N(5);

• 5“relevant authority” means—

  (a)

  in relation to GB certificates, the Authority;

  (b)

  in relation to NI certificates, the Northern Ireland
  authority;

• “relevant purchasing body” means—

  (a)

  10in relation to GB certificates, the purchasing body of GB
  certificates;

  (b)

  in relation to NI certificates, the purchasing body of NI
  certificates;

• “renewable sources” means sources of energy other than fossil fuel
  15or nuclear fuel, but includes waste of which not more than a
  specified proportion is waste which is, or is derived from, fossil
  fuel;

• “specified”, in relation to a certificate purchase order, means
  specified in the order;

• 20“transmission system” includes a transmission system within the
  meaning of Part 2 of the Electricity (Northern Ireland) Order
  1992, and “transmitting” is to be construed accordingly.

(3) For the purposes of the definition of “renewable sources”, a certificate
purchase order may make provision—

(a) 25about what constitutes “waste”;

(b) about how the proportion of waste which is, or is derived from,
fossil fuel is to be determined;

(c) about what, subject to such exceptions as may be specified,
constitutes sufficient evidence of that proportion in any
30particular case;

(d) authorising the relevant authority, in specified circumstances,
to require an operator of a generating station to arrange—

(i) for samples of any fuel used (or to be used) in the
generating station, or of any gas or other substance
35produced as a result of the use of such fuel, to be taken
by a person, and analysed in a manner, approved by the
relevant authority;

(ii) for the results of that analysis to be made available to the
relevant authority.

(4) 40In the application of the relevant sections to Northern Ireland, “fossil
fuel” includes peat.

(5) In the relevant sections “Northern Ireland” does not include any part of
the territorial sea of the United Kingdom, but this is subject to
subsection (6).

(6) 45A certificate purchase order may provide that “Northern Ireland”
includes the territorial sea adjacent to Northern Ireland.

(7) An Order in council under section 98(8) of the Northern Ireland Act
1998 (apportionment of sea areas) has effect for the purposes of this
section if, or to the extent that, the Order is expressed to apply—

(a) by virtue of this subsection, for those purposes, or

(b) if no provision has been made by virtue of paragraph (a), for the
general or residual purposes of that Act.

(8) References in the relevant sections to the supply of electricity to
5customers in Northern Ireland are to be construed in accordance with
the definition of “supply” in Article 3 of the Electricity (Northern
Ireland) Order 1992.

(9) A certificate purchase order may make provision, for the purposes of
the relevant sections, about the circumstances in which electricity is to
10be regarded as having been supplied—

(a) to customers in Great Britain;

(b) to customers in Northern Ireland.”

(3) In section 106 (regulations and orders), in subsection (2)(b) after “32,” insert
“32N, 32R(4),”.

(4) 15In section 113 (extent etc), in subsection (3), at the beginning of the list (before
the entry for sections 65 to 70) insert “Sections 32N to 32Z1;”.

CHAPTER 8 Emissions performance standard

47 Duty not to exceed annual carbon dioxide emissions limit

(1) The operator of any fossil fuel plant must secure that the emissions of carbon
20dioxide from it that are attributable to the use of fossil fuel do not exceed EL
tonnes of carbon dioxide (“the emissions limit”) in any year, where—

and—

(2) Until (and including) 2044, the statutory rate of emissions is 450 g/kWh.

(3) 25In this Chapter, “fossil fuel plant” means an electricity generating station which
satisfies the conditions in subsection (4), together with any associated
gasification plant and any associated CCS plant.

(4) Those conditions are that the generating station—

(a) is constructed pursuant to a relevant consent given or made on or after
30the date on which subsection (1) comes into force, and

(b) uses—

(i) fossil fuel, or

(ii) fuel produced by gasification plant.

(5) Subsection (1) is subject to any provision made by or under regulations made
under subsection (6).

(6) The Secretary of State may by regulations—

(a) make provision about the interpretation of the duty imposed by
5subsection (1) (“the emissions limit duty”);

(b) make any provision mentioned in Schedule 4 (application of emissions
limit duty to additional cases or subject to modifications).

(7) Regulations under subsection (6)(a) may, in particular, make provision—

(a) for determining whether gasification plant or CCS plant (including any
10CCS plant associated with gasification plant) is associated with a
generating station;

(b) for determining the emissions from fossil fuel plant;

(c) for the use of fossil fuel—

(i) for operating plant that is ancillary to a generating station for
15safety purposes, or in an emergency, or

(ii) by a network generating station at a time when it is not
exporting to a network,

to be disregarded for any of the purposes of this Chapter;

(d) for determining (whether by apportionment or otherwise) which
20emissions from fossil fuel plant are attributable to the use of fossil fuel;

(e) for determining when plant ceases to be, or to be part of, fossil fuel
plant;

(f) specifying the meaning of any of the following expressions—

(i) “operator”, in relation to fossil fuel plant;

(ii) 25“installed generating capacity”;

(iii) “constructed pursuant to a relevant consent”, in relation to an
electricity generating station;

(g) specifying any category of emissions by reference to provision made, or
that may from time to time be made, by or under regulations
30implementing the ETS Directive.

(8) Provision that may be made by virtue of subsection (7)(d) includes provision
for treating emissions attributable to the supply of heat to customers from
combined heat and power plant as not being attributable to the use of fossil
fuel.

48 35Suspension etc of emissions limit in exceptional circumstances

(1) This section applies where an appropriate authority considers that there is an
electricity shortfall, or a significant risk of an electricity shortfall.

(2) Where this section applies, the appropriate authority may direct that, in
relation to relevant plant, the emissions duty is to be treated as—

(a) 40suspended for a period specified in the direction, or

(b) modified for a period specified in the direction.

(3) For the purposes of this section, there is an electricity shortfall when—

(a) the electricity available in Great Britain is insufficient to meet demands
in Great Britain, or

(b) 45the electricity available in Northern Ireland is insufficient to meet
demands in Northern Ireland.

(4) For this purpose—

(a) electricity available in Great Britain or Northern Ireland includes
electricity that is available there by virtue of an electricity
interconnector (within the meaning of Part 1 of EA 1989), and

(b) 5subject to that, it is for the appropriate authority to determine what is
to be regarded as available electricity.

(5) Before giving a direction under this section, the Secretary of State must
consult—

(a) the Scottish Ministers,

(b) 10the Welsh Ministers, and

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

(6) As soon as practicable after giving a direction under this section, the Secretary
of State must lay before Parliament a document containing—

(a) 15a copy of the direction, and

(b) a statement of the Secretary of State’s reasons for making the direction.

(7) Before giving a direction under this section, the Department of Enterprise,
Trade and Investment must consult such persons as it considers it appropriate
to consult.

(8) 20As soon as practicable after giving a direction under this section, the
Department of Enterprise, Trade and Investment must lay before the Northern
Ireland Assembly a document containing—

(a) a copy of the direction, and

(b) a statement of the Department’s reasons for making the direction.

(9) 25A direction under this section—

(a) is to be made in writing;

(b) may include incidental, supplementary and transitional provision;

(c) may be varied or revoked by a further direction under this section.

(10) Provision that may be made by virtue of subsection (9)(b) includes, in
30particular, provision imposing requirements on enforcing authorities (within
the meaning of Schedule 5) for Great Britain or Northern Ireland, as the case
may be.

(11) Each appropriate authority—

(a) must issue (and may from time to time revise) a statement of the
35Secretary of State’s or, as the case may be, that Department’s policy in
relation to making directions under this section,

(b) must publish the up-to-date text of the statement whenever it is issued
or revised, and

(c) must have regard to the statement in making any direction under this
40section.

(12) For the purposes of this section—

• “appropriate authority” means—

  (a)

  the Secretary of State, or

  (b)

  the Department of Enterprise, Trade and Investment;

• 45“relevant generating station” means a generating station which satisfies
  paragraphs (a) and (b) of section 47(4);

Energy BillPage 49

• “relevant plant” means—

  (a)

  in relation to a direction by the Secretary of State, fossil fuel
  plant which consists of or includes a relevant generating station
  in Great Britain;

  (b)

  5in relation to a direction by the Department of Enterprise, Trade
  and Investment, fossil fuel plant which consists of or includes a
  relevant generating station in Northern Ireland.

49 Monitoring and enforcement

(1) It is the duty of the appropriate national authority to make arrangements for
10monitoring compliance with, and enforcement of, the emissions limit duty.

(2) The appropriate national authority may by regulations make any provision
mentioned in Schedule 5 (monitoring compliance with, and enforcement of,
the emissions limit duty).

(3) The arrangements under subsection (1) must include arrangements for giving
15effect to directions under section 48 (and, in particular, for compliance by
enforcing authorities with any requirements imposed on them under
subsection (9) of that section).

(4) In this section (and Schedule 5), the “appropriate national authority” means—

(a) in relation to England, the Secretary of State;

(b) 20in relation to Scotland, the Scottish Ministers;

(c) in relation to Wales, the Welsh Ministers;

(d) in relation to Northern Ireland, the Department of Environment.

(5) Subsection (4) is subject to paragraph 5 of Schedule 5 (which provides for the
Secretary of State to make certain provision for Scotland, Wales and Northern
25Ireland).

50 Interpretation of Chapter 8

(1) In this Chapter—

• “carbon capture and storage technology” means technology for doing, or
  contributing to the doing of, any of the following things—

  (a)

  30capturing carbon dioxide (or any substance consisting
  primarily of carbon dioxide) that has been produced by, or in
  connection with, generation of electricity on a commercial scale;

  (b)

  transporting such carbon dioxide (or substance) that has been
  captured;

  (c)

  35disposing of such carbon dioxide (or substance) that has been
  captured, by way of permanent storage;

• “CCS plant” means plant that uses, or is capable of using, carbon capture
  and storage technology;

• “distribution system” has the meaning given by section 4(4) of EA 1989
  40(and “distributed” is to be read accordingly);

• “emissions limit duty” means the duty imposed by section 47(1);

• “ETS Directive” means Directive 2003/87/EC of the European Parliament
  and of the Council (as amended from time to time);

• “fossil fuel” means—

  (a)

  45coal;

  Energy BillPage 50

  (b)

  lignite;

  (c)

  peat;

  (d)

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

  (e)

  crude liquid petroleum;

  (f)

  5bitumen;

  (g)

  any substance which—

  (i)

  is produced directly or indirectly from a substance
  mentioned in paragraphs (a) to (f) for use as a fuel, and

  (ii)

  when burned, produces a greenhouse gas (within the
  10meaning given in section 92 of the Climate Change Act
  2008);

• “fossil fuel plant” has the meaning given by section 47(3);

• “gasification plant” means plant which—

  (a)

  uses fossil fuel, and

  (b)

  15produces fuel for use in an electricity generating station;

• “network generating station” means a station that exports to a network;

• “relevant consent” means—

  (a)

  consent granted under section 36 of EA 1989 or Article 39 of the
  Electricity (Northern Ireland) Order 1992 (S.I. 1992/231 (N.I. 1)S.I. 1992/231 (N.I. 1)),
  20or

  (b)

  an order granting development consent under the Planning Act
  2008;

• “transmission system” has the meaning given by section 4(4) of EA 1989;

• “year” means any calendar year for which the emissions limit is defined
  25by section 47.

(2) For the purposes of this Chapter, a generating station exports to a network
when it is generating any electricity that is conveyed from it by means of a
transmission system or is distributed by means of a distribution system.

51 Regulations under Chapter 8

(1) 30Any regulations made by the Secretary of State or the Welsh Ministers under
this Chapter must be made by statutory instrument.

(2) Any power to make regulations under this Chapter that is exercisable by the
Department of Environment is to be exercisable by statutory rule for the
purposes of the Statutory Rules (Northern Ireland) Order 1979 (S.I. 1979/1573S.I. 1979/1573
35(N.I. 12)).

(3) An instrument containing—

(a) regulations under section 47 (whether or not also containing
regulations by the Secretary of State under section 49), or

(b) regulations by the Secretary of State under section 49 which amend or
40repeal any provision of primary legislation,

may not be made unless a draft has been laid before and approved by a
resolution of each House of Parliament.

(4) Any other instrument containing regulations made by the Secretary of State
under section 49 is subject to annulment in pursuance of a resolution of either
45House of Parliament.

(5) If, but for this subsection, an instrument containing regulations by the
Secretary of State under this Chapter would be treated for the purposes of the
standing orders of either House of Parliament as a hybrid instrument, it is to
proceed in that House as if it were not a hybrid instrument.

(6) 5Regulations by the Scottish Ministers under section 49 are—

(a) if they amend or repeal any provision of primary legislation, subject to
the affirmative procedure;

(b) otherwise, subject to the negative procedure.

(7) An instrument containing regulations by the Welsh Ministers under section
1049—

(a) may not be made if the regulations amend or repeal any provision of
primary legislation unless a draft has been laid before, and approved
by a resolution of, the National Assembly for Wales;

(b) otherwise, is subject to annulment in pursuance of a resolution of the
15National Assembly for Wales.

(8) Statutory rules containing regulations by the Department of Environment
under section 49 are—

(a) if the regulations amend or repeal any provision of primary legislation,
subject to affirmative resolution (within the meaning of section 41(6) of
20the Interpretation Act (Northern Ireland) 1954), and

(b) otherwise, subject to negative resolution (within the meaning of section
41(4) of that Act).

(9) Any regulations under this Chapter may—

(a) include incidental, supplementary and consequential provision;

(b) 25make transitory or transitional provision or savings;

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

(d) make provision subject to exceptions.

(10) Regulations under section 47 that apply in relation to Northern Ireland may be
30made only with the consent of the Department of Enterprise, Trade and
Investment.

(11) Before making any regulations under section 47 or 49, the Secretary of State
must consult—

(a) in the case of regulations under section 47 that will apply in relation to
35Scotland or Wales, the Scottish Ministers or the Welsh Ministers,
respectively, and

(b) in any case, such persons (or such other persons) as the Secretary of
State considers it appropriate to consult.

(12) Before making any regulations under section 49, the Scottish Ministers or the
40Welsh Ministers must consult such persons as they think appropriate.

(13) Subsections (11) and (12) may be satisfied by consultation before, as well as
after, the passing of this Act.

CHAPTER 9 Miscellaneous

52 Exemption from liability in damages

(1) The Secretary of State may include in regulations under section 6 or 21, or
under paragraph 6 of Schedule 2, provision that—

(a) 5the national system operator;

(b) any director of the national system operator;

(c) any employee, officer or agent of the national system operator,

is not liable in damages for anything done or omitted in the exercise or
purported exercise of a relevant function specified in the regulations.

(2) 10A relevant function is a function conferred by or by virtue of Chapter

2

,

3 or 4

.

(3) 15Provision made by virtue of subsection (1) may not exempt a person from
liability for an act or omission which—

(a) is shown to be in bad faith;

(b) is unlawful by virtue of section 6(1) of the Human Rights Act 1998
(public authorities not to act incompatibly with convention rights);

(c) 20is a breach of a duty owed by virtue of section 27(4) of EA 1989
(compliance with final or provisional order under that Act).

(4) Whenever—

(a) the Secretary of State makes or revokes regulations of a kind mentioned
in subsection (1) or exercises a modification power under section 20 or
2531 or paragraph 19 of Schedule 2, and

(b) provision is not in force under subsection (1) in respect of a relevant
function,

the Secretary of State must publish a statement of the reasons why no such
provision is in force.

(5) 30In this section “national system operator” means the person operating the
national transmission system for Great Britain (and for this purpose
“transmission system” has the same meaning as in EA 1989 - see section 4(4) of
that Act).

53 Licence modifications: general

(1) 35This section applies in relation to a power to make modifications conferred
by—

(a) section 20, 31, 39, 43 or 44, or

(b) paragraph 19 of Schedule 2.

(2) Before making modifications under a power to which this section applies (“a
40relevant power”) the Secretary of State must lay a draft of the modifications
before Parliament.

(3) If, within the 40-day period, either House of Parliament resolves not to
approve the draft, the Secretary of State may not take any further steps in
relation to the proposed modifications.

(4) 45If no such resolution is made within that period, the Secretary of State may
make the modifications in the form of the draft.

(5) Subsection (3) does not prevent a new draft of proposed modifications being
laid before Parliament.

(6) In this section “40-day period”, in relation to a draft of proposed modifications,
means the period of 40 days beginning with the day on which the draft is laid
5before Parliament (or, if it is not laid before each House of Parliament on the
same day, the later of the 2 days on which it is laid).

(7) For the purposes of calculating the 40-day period, no account is to be taken of
any period during which Parliament is dissolved or prorogued or during
which both Houses are adjourned for more than 4 days.

(8) 10A relevant power—

(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) 15includes a power to make incidental, supplementary, consequential or
transitional modifications.

(9) Provision included in a licence, or in a document or agreement relating to
licences, by virtue of a relevant power—

(a) may make different provision for different cases;

(b) 20need not relate to the activities authorised by the licence;

(c) may do any of the things authorised for licences of that type by section
7(2A), (3) or (4) of EA 1989.

(10) The Secretary of State must publish details of any modifications made under a
relevant power as soon as reasonably practicable after they are made.

(11) 25If under a relevant power the Secretary of State makes modifications of the
standard conditions of a licence, the Authority must—

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

(b) 30publish the modification.

(12) A modification made under a relevant power of part of a standard condition of
a licence does not prevent any other part of the condition from continuing to
be regarded as a standard condition for the purposes of Part 1 of EA 1989.

(13) The power conferred by a relevant power to “modify” (in relation to licence
35conditions or a document) includes a power to amend, add to or remove, and
references to modifications are to be construed accordingly.

54 Consequential amendments

(1) In section 3A of EA 1989 (principal objective and general duties), in subsection
(2)(b) for “or sections 26 to 29 of the Energy Act 2010” substitute “, sections 26
40to 29 of the Energy Act 2010 or Part 2 of the Energy Act 2013”.

(2) In section 33(1) of the Utilities Act 2000 (standard conditions of electricity
licences)—

(a) after paragraph (e) omit “or”;

(b) after paragraph (f) insert “or

(g) 45under the Energy Act 2013.”.

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

(a) after paragraph (d) omit “or”;

(b) after paragraph (e) insert “, or

(f) 5under the Energy Act 2013,”.

(4) In section 146(5) of the Energy Act 2004 (standard conditions for electricity
interconnectors), for “or under section 98 of the Energy Act 2011” substitute “,
under section 98 of the Energy Act 2011 or section 31 or 39 of the Energy Act
2013.”.

55 10Review of certain provisions of Part 2

(1) As soon as reasonably practicable after the end of the period of 5 years
beginning with the day on which this Act is passed, the Secretary of State must
carry out a review of the provisions of the following Chapters of this Part—

(a) Chapter 2 (contracts for difference);

(b) 15Chapter 3 (capacity market);

(c) Chapter 5 (conflicts of interest and contingency arrangements);

(d) Chapter 6 (access to markets);

(e) Chapter 7 (the renewables obligation: transitional arrangements);

(f) Chapter 8 (emissions performance standard).

(2) 20The Secretary of State must set out the conclusions of the review in a report.

(3) The report must, in particular—

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

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

(c) 25assess whether those objectives remain appropriate and, if so, the
extent to which those objectives could be achieved in a way that
imposes less regulation.

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

Part 3 30Nuclear Regulation

CHAPTER 1 The ONR’s purposes

56 The ONR’s purposes

In this Part, “the ONR’s purposes” means—

(a) the nuclear safety purposes (see section 57),

(b) 35the nuclear site health and safety purposes (see section 58),

(c) the nuclear security purposes (see section 59),

(d) the nuclear safeguards purposes (see section 61), and

(e) the transport purposes (see section 62).

57 Nuclear safety purposes

(1) In this Part, the “nuclear safety purposes” means the purposes of protecting
persons against risks of harm from ionising radiations from GB nuclear sites,
including through—

(a) 5the design and construction of relevant nuclear installations and
associated sites,

(b) arrangements for the operation and decommissioning of, and other
processes connected with, relevant nuclear installations,

(c) arrangements for the storage and use of nuclear matter on GB nuclear
10sites, and

(d) arrangements to minimise those risks in the event of an escape or
release of such ionising radiations.

(2) For this purpose, ionising radiations from GB nuclear sites are ionising
radiations from—

(a) 15relevant nuclear installations, or

(b) nuclear matter stored or used on a GB nuclear site;

and an escape or release of ionising radiations from a GB nuclear site includes
ionising radiations from nuclear matter that has escaped or been released on or
from a GB nuclear site.

(3) 20In this section—

• “GB nuclear site” means a nuclear site in England, Wales or Scotland;

• “nuclear installation” has the same meaning as in the Nuclear Installations
  Act 1965 (see section 26 of that Act);

• “nuclear matter” has the same meaning as in that Act (see section 26 of
  25that Act);

• “relevant nuclear installation” means a nuclear installation on a site in
  England, Wales or Scotland for which a nuclear site licence is required
  by virtue of the installation (and includes a proposed or former nuclear
  installation in respect of which such a licence would be or has ever been
  30so required).

58 Nuclear site health and safety purposes

(1) In this Part, the “nuclear site health and safety purposes” means so much of the
general purposes of Part 1 of the 1974 Act as consists of the following
purposes—

(a) 35securing the health, safety and welfare of persons at work on GB
nuclear sites;

(b) protecting persons, other than persons at work on GB nuclear sites,
against risks to health or safety arising out of or in connection with the
activities of persons at work on GB nuclear sites;

(c) 40controlling the storage and use on GB nuclear sites of dangerous
substances and generally preventing the unlawful acquisition,
possession and use of such substances on or from such sites.

(2) In this section—

(a) “dangerous substances” means radioactive, explosive, highly
45flammable or otherwise dangerous substances, other than nuclear
matter;

(b) “GB nuclear site” and “nuclear matter” have the same meanings as in
section 57.

(3) Section 1(3) of the 1974 Act (interpretation of references to risks relating to
persons at work) applies for the purposes of this section as it applies for the
purposes of Part 1 of the 1974 Act.

59 Nuclear security purposes

(1) 5In this Part, the “nuclear security purposes” means the purposes of ensuring
the security of—

(a) civil nuclear premises;

(b) nuclear material used or stored on civil nuclear premises and
equipment or software used or stored on such premises in connection
10with activities involving nuclear material;

(c) other radioactive material used or stored on civil nuclear sites and
equipment or software used or stored on civil nuclear sites in
connection with activities involving such other radioactive material;

(d) civil nuclear construction sites and equipment used or stored on civil
15nuclear construction sites;

(e) equipment or software in the United Kingdom which—

(i) is capable of being used in, or in connection with, the
enrichment of uranium, and

(ii) is in the possession or control of a person involved in uranium
20enrichment activities;

(f) sensitive nuclear information which is in the United Kingdom in the
possession or control of—

(i) a person who is involved in activities on or in relation to civil
nuclear premises or who is proposing or likely to become so
25involved;

(ii) a person involved in uranium enrichment activities; or

(iii) a person who is storing, transporting or transmitting the
information for or on behalf of a person falling within sub-
paragraph (i) or (ii);

(g) 30nuclear material which is being (or is expected to be)—

(i) transported within the United Kingdom or its territorial sea,

(ii) transported (outside the United Kingdom and its territorial sea)
to or from any civil nuclear premises in the United Kingdom, or

(iii) carried on board a United Kingdom ship,

35other than material being (or expected to be) so transported or carried
for defence purposes;

(h) information relating to the security of anything mentioned in
paragraphs (a) to (g).