Energy Bill

Insert the following new Clause—

“Rising block tariff energy supply scheme

(1)   The Secretary of State shall have regard to the desirability of establishing
specifications for the introduction of a rising block tariff scheme governing
electricity and gas prices and shall consult representatives of the gas and
electricity supply industries prior to the establishment of such regulations.

(2)   A rising block tariff system of energy pricing is one in which there is a basic
threshold price for electricity and gas and an additional percentage price
premium applicable to each block of units above that threshold.

(3)   A national standard for rising block tariffs shall cover the following
matters—

(a)   the number of units of gas or electricity to be provided by the
supplier of the basic threshold price annually;

(b)   the number of units comprised in each subsequent block of units;

(c)   the additional price premium payable per unit applicable to each
block;

(d)   the calculation for the purposes of setting the minimum number of
units to be applied at the basic threshold price quarterly;

(e)   the arrangements for the setting of standing charges.

(4)   Nothing in this Act permits the Secretary of State to determine the basic
threshold price of electricity where a rising block tariff is in force.

(5)   The Secretary of State shall report to Parliament on the operation of the
scheme within 12 months of the coming into force of this section.”