Energy Bill

Insert the following new Clause—

“Strategy on interconnection

Within 12 months of this Act coming into force, the Secretary of State shall
bring forward a strategy for the UK to increase its interconnection links
with other European countries, in order to support the continued
development of a European internal electricity market.”

Page 28, line 6, at end insert “; and the Secretary of State must exercise that power
and the power to make regulations under section 45 so as to ensure that a power
purchase agreement scheme begins to operate no later than the time at which the
first CFD is awarded”

Page 28, line 16, at end insert—

“( )   In determining the provision to be made under this section and section 45
the Secretary of State must have regard, in particular, to—

(a)   the desirability of ensuring that every electricity generator who is a
party to a CFD is able to borrow money commercially for its
business purposes at adequate levels, reasonable cost and over a
reasonable period;

(b)   accordingly, the need to ensure that the terms of every power
purchase agreement made under the scheme, and the level of the
associated strike price, are such that every such agreement is
demonstrably viable for the electricity generator who is party to it.”

Page 28, line 29, at end insert—

“( )   Provision under subsection (1) (including provision of the kind mentioned
in subsection (4)) must be such as to ensure that—

(a)   every electricity generator who is eligible to become a party to a
CFD is eligible to enter into a power purchase agreement under the
scheme;

(b)   an electricity generator who is so eligible may, by notice in writing,
require the Authority (or such other person on whom regulations
under section 45 confer the relevant functions) to secure, within no
later than seven days after the notice is given, that a licensed
supplier enter into a power purchase agreement with the generator
under the scheme;

(c)   the terms of each power purchase agreement entered into under the
scheme, including its duration, are such that the agreement is
demonstrably viable for the electricity generator who is party to it;

(d)   the price at which electricity is purchased under each power
purchase agreement entered into under the scheme is set, for the
duration of the agreement, by reference to a fixed discount from the
strike price or reference price under the associated CFD, at a level
that enables the generator to maintain adequate borrowings for its
business purposes at reasonable cost.”

Page 28, line 44, at end insert—

“( )   Provision of the kind mentioned in subsections (5) and (6) must be such as
to ensure that—

(a)   every electricity generator is entitled to have the question which
licensed supplier or suppliers is or are to be required or permitted
to enter into an agreement with that generator determined swiftly
and at minimal cost by one of the persons mentioned in subsection
(6)(a);

(b)   where a process of the kind mentioned in subsection (6)(a) is made
available, it is no more onerous for an electricity generator than a
process of the kind mentioned in subsection (6)(b).”

Page 130, line 3, at end insert—

“(iii)   substantial pollution abatement equipment dealing with
oxides of sulphur, oxides of nitrogen, heavy metal
emissions or particles is fitted to the generating station.”