Energy Bill

Page 6, line 4, at end insert “or (CFD notification: offer to contract on standard terms)”

Page 6, line 24, leave out subsection (8) and insert—

“(8)   An instrument containing regulations of any of the following kinds may
not be made unless a draft of the instrument has been laid before, and
approved by a resolution of, each House of Parliament (in each case,
whether or not the regulations also make other provision)—

(a)   the first regulations which make provision falling within each of the
following—

(i)   section (CFD notification: offer to contract on standard terms);

(ii)   section (Modification of standard terms);

(iii)   section 13;

(iv)   section 14;

(b)   regulations which make provision falling within—

(i)   section 9;

(ii)   section 10;

(iii)   section (CFD notifications);

(iv)   section (Allocation of CFDs);

(v)   section 11;

(vi)   section 12;

(vii)   section 15;

(viii)   section 16;

(ix)   section 17.”

Page 6, line 29, at end insert—

“( )   If, but for this subsection, an instrument containing regulations 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.”

Page 7, line 25, leave out “or the national system operator”

Page 8, line 31, leave out from beginning to end of line 33 and insert—

“( )   Any sum which—

(a)   an electricity supplier is required by virtue of regulations to pay to
a”

Page 8, line 36, at end insert—

(none0)   “may be recovered from the electricity supplier by the CFD
counterparty as a civil debt due to it.”

Page 8, line 44, leave out “or the national system operator”

Page 9, line 4, leave out “a direction under this section” and insert “this Chapter”

Page 9, line 15, leave out subsection (6)

Insert the following new Clause—

“Standard terms

(1)   The Secretary of State may issue standard terms and conditions of CFDs
(“standard terms”).

(2)   The Secretary of State may from time to time revise standard terms.

(3)   Standard terms issued or revised under this section must be in accordance
with provision made in regulations.

(4)   In issuing or revising standard terms the Secretary of State must have
regard to the matters mentioned in section 5(2).

(5)   The Secretary of State must publish standard terms as issued or revised
under this section.

(6)   In publishing standard terms the Secretary of State may designate
particular standard terms as terms that may not be modified under section
(Modification of standard terms).

(7)   Different standard terms may be issued for different categories of CFD.”

Insert the following new Clause—

“CFD notifications

(1)   The national system operator may, in accordance with provision made by
regulations, give a notification to a CFD counterparty (a “CFD
notification”) specifying—

(a)   an eligible generator, and

(b)   such other information as may be required for the purpose of
making an offer under section (CFD notification: offer to contract) to
contract with that generator.

(2)   A CFD notification must not be given if regulations made by virtue of
section 17 prevent the giving of the notification.

(3)   Regulations may make further provision about CFD notifications and in
particular provision about—

(a)   the circumstances in which a CFD notification may or must be
given;

(b)   the kinds of information mentioned in subsection (1)(b) that must
be specified in a CFD notification;

(c)   appeals against decisions not to give CFD notifications.

(4)   A CFD notification may not be given by virtue of regulations under this
section in relation to an electricity generating station in Northern Ireland
unless the Department of Enterprise, Trade and Investment consent to the
CFD notification.

(5)   But regulations may, with the consent of that Department, include
provision for circumstances in which consent under subsection (4) is not
required.

(6)   In subsection (4) “Northern Ireland” includes so much of the internal
waters and territorial sea of the United Kingdom as are adjacent to
Northern Ireland.”

Insert the following new Clause—

“Allocation of CFDs

(1)   Provision that may be included in regulations by virtue of section (CFD
notifications) includes in particular provision about how CFDs are to be
allocated to eligible generators (and for this purpose a CFD is “allocated”
to a generator if the generator is specified in a CFD notification).

(2)   Provision made by virtue of subsection (1) may include provision—

(a)   conferring power on the Secretary of State to make rules (an
“allocation framework”) about how CFDs are to be allocated;

(b)   for different periods within which CFDs are to be allocated
(“allocation rounds”);

(c)   for different allocation frameworks to apply in respect of different
allocation rounds;

(d)   for the publication of allocation frameworks;

(e)   about matters in relation to which provision may or must be made
in an allocation framework.

(3)   Provision made by regulations by virtue of subsection (2) may impose
requirements on the Secretary of State, including in particular—

(a)   requirements as to the giving of notice before an allocation round is
commenced;

(b)   restrictions on the circumstances in which amendments may be
made during an allocation round to an allocation framework or to
any other matter relevant to an allocation round (including any
amount by reference to which a limit on the CFDs allocated during
the round is to be determined).

(4)   An allocation framework may—

(a)   confer functions on the national system operator with respect to the
allocation of CFDs;

(b)   specify targets to be met or taken into account by the national
system operator in giving CFD notifications by virtue of section
(CFD notifications), including targets relating to—

(i)   the means by which electricity is generated;

(ii)   the generating capacity of electricity generating stations;

(iii)   the geographical location of electricity generating stations;

(c)   make any provision that may be made by regulations by virtue of
subsection (3).

(5)   An allocation framework may include provision for—

(a)   the determination of a matter on a competitive basis;

(b)   calculations or determinations to be made under the framework,
including 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 framework.

(6)   An allocation framework may—

(a)   include incidental, supplementary and consequential provision;

(b)   make transitory or transitional provision and savings;

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

(d)   make provision subject to exceptions.

(7)   Any power conferred by virtue of subsection (2) to make an allocation
framework includes a power to amend, add to or remove an allocation
framework.

(8)   Subsections (4) to (7) are subject to any provision contained in regulations.”

Insert the following new Clause—

“CFD notification: offer to contract on standard terms

(1)   Where a CFD notification is given to a CFD counterparty under section
(CFD notifications), the CFD counterparty must, in accordance with
provision made by regulations, offer to contract with the eligible generator
specified in the notification on—

(a)   standard terms, or

(b)   standard terms as modified in accordance with any modification
agreement entered into between the CFD counterparty and the
eligible generator for the purposes of the CFD notification (see
section (Modification of standard terms)).

(2)   Regulations may make further provision about an offer to contract made
under this section, including provision about—

(a)   how a CFD counterparty is to apply or complete standard terms in
relation to the offer in accordance with information specified in a
CFD notification;

(b)   the time within which the offer must be made;

(c)   how the eligible generator to whom it is made may enter into a CFD
as a result of the offer;

(d)   what is to happen if the eligible generator does not enter into a CFD
as a result of it.

(3)   In this section, “standard terms”, in relation to a CFD notification, means
standard terms published under section (Standard terms), determined in
accordance with regulations as the standard terms that are to apply in
relation to the CFD notification.”

Insert the following new Clause—

“Modification of standard terms

(1)   This section applies where a person wishes to be specified as an eligible
generator in a CFD notification (“the potential CFD notification”).

(2)   A CFD counterparty and the person may, in accordance with provision
made by regulations, agree to modify standard terms for the purposes of
any offer that would be required under section (CFD notification: offer to
contract on standard terms) if the potential CFD notification is given (a
“modification agreement”).

(3)   A CFD counterparty may enter into a modification agreement providing
for the modification of any particular standard term only if—

(a)   the CFD counterparty is satisfied that—

(i)   the effect of the modification is minor, and

(ii)   the modification is necessary; and

(b)   the standard term has not been designated under section (Standard
terms) as a term that may not be modified under this section.

(4)   Regulations may make further provision about modification agreements,
including—

(a)   the circumstances in which a person may make an application for a
modification agreement;

(b)   the time by which an application must be made;

(c)   the procedure to be followed, and the information to be given, by
the person in making an application;

(d)   how a CFD counterparty is to determine an application (including
how it is to determine whether the effect of a modification is minor
and whether it is necessary);

(e)   the time by which determinations must be made;

(f)   the form of modification agreements.

(5)   Provision made by virtue of subsection (4)(d) may include provision under
which the CFD counterparty may make alternative proposals for
modifications in response to an application.

(6)   In this section “modify” includes add to, alter or omit, and “modification”
is to be read accordingly.”

Insert the following new Clause—

“Sections (CFD notifications) to (Modification of standard terms): further
provision

Provision made by regulations by virtue of any of sections (CFD
notifications) to (Modification of standard terms) may include provision for—

(a)   the determination of a matter on a competitive basis;

(b)   calculations or determinations to be made under the regulations,
including 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 regulations.”

Page 11, line 23, at end insert—

“( )   the determination of an application for a modification agreement
under section (Modification of standard terms);”

Page 12, line 6, leave out “The Secretary of State may by order provide” and insert
“Regulations may make provision”

Page 12, line 7, leave out “direction under section 10” and insert “notification under
section (CFD notifications)”

Page 12, line 10, leave out “order” and insert “regulations”

Page 12, line 12, leave out “direction by virtue of this Chapter” and insert
“notification under that section”

Page 12, line 13, leave out “direction” and insert “notification”

Page 12, line 14, leave out “order” and insert “regulations”

Page 12, line 15, leave out paragraph (c)

Page 12, line 20, leave out “order” and insert “regulations”

Page 12, line 22, leave out “order” and insert “regulations”

Page 12, leave out lines 23 to 30

Page 12, line 32, leave out “or an order under section 17”

Page 12, line 45, at end insert—

“( )   Before publishing standard terms under section (Standard terms) the
Secretary of State must consult such persons as the Secretary of State
considers it appropriate to consult.”

Page 13, line 1, leave out “The requirement” and insert “A requirement under this
section”

Page 20, line 42, at end insert—

“( )   If, but for this subsection, an instrument containing electricity capacity
regulations 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.”

Page 21, line 26, at end insert—

“( )   Subsection (7) may be satisfied by consultation before, as well as
consultation after, the passing of this Act.”

Page 22, line 6, at end insert—

“and such arrangements are referred to in this section as “a pilot scheme”.

(2)   The Secretary of State must review the operation and effectiveness of any
pilot scheme.

(3)   The Secretary of State must set out the results and conclusions of the review
in a report to Parliament—

(a)   by laying a copy of the report before each House of Parliament, or

(b)   if the Secretary of State determines that the report should be made
orally, by making a statement to the House of Parliament of which
that Secretary of State is a member.

(4)   A report under subsection (3) must be made as soon as reasonably
practicable after the conclusion of the pilot scheme to which the report
relates.”

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) Regulation 2011.”

Page 57, line 16, at end insert “their”

Page 57, line 37, after “site” insert “(its “associated site”)”

Page 64, line 20, leave out “with the consent of the Secretary of State” and insert “in
accordance with section (Procedure for issue, revision or withdrawal of codes of
practice)—

(a)   ”

Page 64, line 23, leave out from beginning to “revise” and insert—

“(b)   ”

Page 64, line 25, leave out subsections (3) to (5)

Insert the following new Clause—

“Procedure for issue, revision or withdrawal of codes of practice

(1)   The ONR may—

(a)   issue or revise a code of practice under section 71 only in
accordance with subsection (8);

(b)   withdraw a code of practice under that section only in accordance
with subsection (11).

(2)   Before issuing, or revising or withdrawing, a code of practice, the ONR
must submit a proposal to the Secretary of State.

(3)   Before submitting a proposal to the Secretary of State the ONR must
consult—

(a)   any government department or other person that the Secretary of
State has directed the ONR to consult, and

(b)   any other government department or other person that the ONR
considers it appropriate to consult,

about the proposal.

(4)   A direction under subsection (3)(a) may be general or may relate to a
particular code, or codes of a particular kind.

(5)   A proposal for issuing or revising a code of practice must include a draft
code of practice or, as the case may be, proposed revisions of a code of
practice.

(6)   Where the ONR submits a proposal for issuing or revising a code of
practice to the Secretary of State, the Secretary of State may approve the
draft code of practice, or proposed revisions, as the case may be—

(a)   without modification, or

(b)   with the consent of the ONR, with modifications.

(7)   If the Secretary of State approves the draft code or proposed revisions, the
Secretary of State must lay before Parliament the draft code or proposed
revisions in the form approved.

(8)   Where—

(a)   the Secretary of State has laid a draft code or proposed revisions of
a code before Parliament, and

(b)   no negative resolution is made within the 40-day period,

the ONR may issue the code in the form of the draft laid before Parliament
or, as the case may be, make the proposed revisions in the form so laid.

(9)   For the purpose of subsection (8)—

(a)   a “negative resolution”, in relation to a draft code or proposed
revisions, means a resolution of either House of Parliament not to
approve the draft code or proposed revisions;

(b)   the “40-day period”, in relation to a draft of a code or proposed
revisions, means the period of 40 days beginning with the day on
which the draft is laid before 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).

(10)   For the purposes of calculating the 40-day period, no account is to be taken
of any period during which—

(a)   Parliament is dissolved or prorogued, or

(b)   both Houses are adjourned for more than 4 days.

(11)   Where—

(a)   the ONR submits to the Secretary of State a proposal for the
withdrawal of a code of practice, and

(b)   the Secretary of State approves the proposal,

it may withdraw the code.

(12)   The ONR must—

(a)   publish any code of practice issued under section 71;

(b)   when it revises such a code, publish—

(i)   a notice to that effect, and

(ii)   a copy of the revised code;

(c)   when it withdraws such a code, publish a notice to that effect.”

Page 83, line 39, after “containing” insert “(whether alone or with other provision)”

Page 83, line 40, leave out from “regulations” to “or” in line 42 and insert “which
fall within subsection (2A)”

Page 83, line 45, at end insert—

“(2A)    Nuclear regulations fall within this subsection if—

(a)   they are the first nuclear regulations to be made,

(b)   they include provision amending or repealing any provision of—

(i)   the Nuclear Installations Act 1965, or

(ii)   the Nuclear Safeguards Act 2000, or

(c)   they include provision creating a new offence by virtue of section 67;

and for this purpose nuclear regulations which revoke and re-enact an
offence are not to be regarded as creating a new offence.”

Page 84, line 30, after “as” insert “—

(i)   ”

Page 84, line 32, at end insert—

“(ii)   regulations under section 76, or

(iii)   regulations under section 92.”

Page 84, line 43, leave out “section 15 of the 1974” and insert “section 14 of the 1974
Act (power to direct investigations and inquiries);

(ba)   section 15 of that”

Page 102, line 9, at end insert—

“(13)   A statutory instrument containing an order under subsection (10) is subject
to annulment in pursuance of an order of either House of Parliament.”

Page 102, line 13, leave out paragraph (a)

Page 102, line 21, leave out subsections (3) and (4) and insert—

“(3A)    Before making modifications under section 130(1) the Secretary of State
must lay a draft of the modifications before Parliament.

(3B)   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.

(3C)   If no such resolution is made within that period, the Secretary of State may
make the modifications in the form of the draft.

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

(3E)   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 before 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).

(3F)   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.

(3G)   The Secretary of State must publish details of any modifications made
under section 130(1) as soon as reasonably practicable after they are made.”

Page 117, line 2, leave out from “generator”” to “intends” in line 3 and insert “, in
relation to an investment contract, means—

(a)   a person who at the time the contract is entered into”

Page 117, line 5, after “who” insert “at that time”

Page 117, line 8, after “who” insert “at that time”

Page 117, line 19, at end insert—

“( )   In the case of a contract entered into with more than one person, the
reference in sub-paragraph (1)(c) to the parties is a reference to the
Secretary of State and any of those persons who is an electricity
generator.”

Page 120, line 15, leave out sub-paragraph (5) and insert—

“(5)   An instrument containing regulations of any of the following kinds may
not be made unless a draft of the instrument has been laid before, and
approved by a resolution of, each House of Parliament (in each case,
whether or not the regulations also make any other provision)—

(a)   the first regulations which make provision falling within
paragraph 10,

(b)   the first regulations which make provision falling within
paragraph 11, or

(c)   regulations which make provision falling within any other
paragraph of Parts 1 to 3 of this Schedule.”

Page 120, line 20, at end insert—

“( )   If, but for this sub-paragraph, an instrument containing regulations
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.”

Page 121, line 28, leave out sub-paragraph (10) and insert—

“(10)   Any sum which—

(a)   an electricity supplier is required by virtue of regulations to pay
to the Secretary of State, an investment contract counterparty or
a CFD counterparty, and

(b)   has not been paid by the date on which it is required by virtue of
regulations to be paid,

may be recovered from the electricity supplier by the Secretary of State, the investment contract counterparty or the CFD counterparty (as the case may be) as a civil debt due to that person.”

Page 157, line 9, leave out “or an” and insert “, an inspector or a health and safety”

Page 164, line 27, leave out “or under”

Page 172, line 9, after “A” insert “property transfer”

Page 177, line 47, at end insert—

“   (1)   Section 82 (general provisions as to interpretation and regulations) is
amended as follows.

(2)   In subsection (3)(b), after “subsection” insert “(3A) or”.

(3)   After subsection (3) insert—

“(3A)   In the case of a statutory instrument which also contains
regulations under section 66 of the Energy Act 2013 (nuclear
regulations), subsection (3) is subject to section 104 of that Act
(subordinate legislation).””