Energy Bill

Page 2, line 4, leave out subsection (5) and insert—

“(5)   The first decarbonisation order must be made before 1st April 2014 and the
year in relation to which the decarbonisation target range is set must be
2030.”

Page 2, line 9, leave out subsection (6) and insert—

“(6)   Before setting or amending a decarbonisation target range, the Secretary of
State shall take into account the advice of the Committee on Climate
Change including in relation to the most cost effective means of meeting
the target set out in section 1(1) of the Climate Change Act 2008, and, if they
do not accept the advice of the Committee on Climate Change, they shall
publish the reasons.”

Page 5, line 22, after “electricity” insert “in general;

( )   the strategy and objectives to be set out under section 136 of this Act
for addressing fuel poverty;”

Page 5, line 24, at end insert—

“(f)   the desirability of promoting effective competition between
persons engaged in, or in commercial activities connected with, the
generation, transmission, distribution or supply of electricity or the
provision or use of electricity interconnectors, wherever
appropriate”

Insert the following new Clause—

“Divestment of retail business

(1)   The Secretary of State must, by order subject to affirmative resolution in
each House of Parliament within two years of this Act coming into force,
require any electricity generator which also supplies electricity to either
domestic, commercial or industrial users to divest itself of its supplier
business so that, within two years of the order coming into force—

(a)   an electricity generator shall have no financial interest in, or
exercise any right over, a supplier of electricity or gas;

(b)   a supplier of electricity or gas shall have no financial interest in, or
exercise any right over, an electricity generator;

(c)   no person may hold a directorship of an electricity generator and a
supplier of electricity or gas concurrently,

and any contracts entered into between any of the divesting parties shall
cease to have effect when this section comes into effect.

(2)   An order under this section does not apply to generators which have a
direct contract to supply the majority of their output to a defined site
through a private transmission scheme.”

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

Page 6, line 5, at end insert—

“(2A)    The Secretary of State shall as soon as reasonably practicable, and
no later than five years from enactment of this section, by
regulations provide that contracts for difference are subject to a
competitive tendering process.

(2B)   These regulations shall be subject to the affirmative resolution of
both Houses of Parliament.”

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 9, line 26, leave out “may” and insert “shall”

Page 9, line 27, at end insert “and those amounts must be greater than zero”

Page 9, line 28, leave out “may” and insert “shall”

Page 11, line 20, at end insert—

“(d)   conferring on the Secretary of State further powers to require
operators of generating stations which use woody biomass fuel to
commit to a binding agreement to source no more than a specified
amount of woody biomass fuel that is grown in the UK”

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 18, line 21, at end insert—

“(4A)    Provision made by virtue of subsection (3)—

(a)   must secure that capacity market rules made by the Authority may
not confer functions on the Authority except with the consent of the
Secretary of State;

(b)   may permit any such consent to be given either in relation to
particular capacity market rules or generally in relation to capacity
market rules of a particular kind.”

Line 6, leave out paragraph (b)

Page 20, line 15, after “to” insert “the respective”

Page 20, line 15, after “Authority” insert “and the Secretary of State”

Page 20, line 34, leave out subsections (5) and (6) and insert—

“(5)   Subject to subsection (6), an instrument containing (whether alone or with
other provision) regulations under this Chapter may not be made unless a
draft of the instrument has been laid before and approved by a resolution
of each House of Parliament.

“(6)   An instrument containing only regulations within subsection (7) is subject
to annulment in pursuance of a resolution of either House of Parliament.

(7)   The regulations within this subsection are—

(a)   electricity capacity regulations which—

(i)   only make provision within section 27, and

(ii)   are not the first set of electricity capacity regulations to
make such provision;

(b)   regulations under section 32 which do not make provision
amending or repealing a provision of an enactment contained in
primary legislation.”

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.”

Leave out Clause 37 and insert the following new Clause—

“Pilot scheme for electricity demand reduction

(1)   The Secretary of State must—

(a)   make arrangements—

(i)   for the purposes of reducing demand for electricity; and

(ii)   wholly or partly for the purpose of determining provision to
be included in electricity capacity regulations; and

(b)   make arrangements for the purpose of piloting a measure (or
measures) to secure a reduction in the demand for electricity.

(2)   Arrangements under this section may be paid for either by money
provided by Parliament or by means established for the provision of
capacity agreements in sections 22 and 24.”

Insert the following new Clause—

“Capacity payments: gas

The Secretary of State shall have the power to make such arrangements as
are necessary for capacity payments to be made for the supply of gas if it is
deemed likely that this could allow gas to be supplied to consumers at
lower prices or more securely than otherwise.”

Insert the following new Clause—

“Strategy for electricity demand reduction

(1)   The Secretary of State shall within 12 months of the passing of this Act
publish a strategy setting out cost-effective policies for achieving a
reduction in demand for electricity.

(2)   The strategy must include a target expressed in terawatt hours for reducing
electricity by 2020.

(3)   The Secretary of State shall—

(a)   implement the strategy; and

(b)   report to Parliament each year on progress.”

Insert the following new Clause—

“Electricity demand reduction: strategy

(1)   The Secretary of State shall within 12 months of the passing of this Act
publish a strategy setting out cost-effective policies to achieve a reduction
in demand for electricity, in addition to any savings made resulting from
existing policies, of at least 69TWh from a 2009 baseline by 2020 and a
further 32TWh from a 2013 baseline by 2030.

(2)   Before publishing the strategy the Secretary of State shall consult publically
such persons as may have information that will assist in drawing up the
strategy.

(3)   After publication under subsection (1), the Secretary of State shall—

(a)   implement the strategy, and

(b)   report to Parliament annually on progress against the strategy.”

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.”

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 14, at end insert “at a discount to a prevailing market price”

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 24, at end insert “(including provision for determining a market price
and the amount of a discount at any time)”

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).”

Insert the following new Clause—

“Closure of support under the renewables obligation

(1)   After section 32L of EA 1989 insert—

“32LA           Renewables obligation closure order

(1)   The Secretary of State may make a renewables obligation closure
order.

(2)   A renewables obligation closure order is an order which provides
that no renewables obligation certificates are to be issued under a
renewables obligation order in respect of electricity generated after
a specified date.

(3)   Provision made under subsection (2) may specify different dates in
relation to different cases or circumstances.

(4)   The cases or circumstances mentioned in subsection (2) may in
particular be described by reference to—

(a)   accreditation of a generating station, or

(b)   the addition of generating capacity to a generating station.

(5)   A renewables obligation closure order may include provision
about—

(a)   the meaning of “accreditation” and “generating capacity” in
subsection (4);

(b)   when generating capacity is to be treated as added to a
generating station for the purposes of that subsection.

(6)   References in this section to a renewables obligation order are
references to any renewables obligation order made under section
32 (whenever made, and whether or not made by the Secretary of
State).

(7)   Power to make provision in a renewables obligation order (and any
provision contained in such an order) is subject to provision
contained in a renewables obligation closure order; but this section
is not otherwise to be taken as affecting power to make provision in
a renewables obligation order of the kind mentioned in subsection
(2).

(8)   Section 32K applies in relation to a renewables obligation closure
order as it applies in relation to a renewables obligation order (and
subsection (3) above is not to be taken as limiting the application of
that section).

“32LB           Renewables obligation closure orders: procedure

(1)   Before making a renewables obligation closure order, the Secretary
of State must consult—

(a)   the Authority,

(b)   the Council,

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

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

(2)   The requirement to consult may be satisfied by consultation before,
as well as consultation after, the passing of the Energy Act 2013.

(3)   A renewables obligation closure order is not to be made unless a
draft of the instrument containing it has been laid before and
approved by a resolution of each House of Parliament.”

(2)   In section 32M(1) of EA 1989 (interpretation of sections 32 to 32M)—

(a)   for “32L” substitute “32LB”;

(b)   after the definition of “renewables obligation order” insert—

““renewables obligation closure order” is to be
construed in accordance with section 32LA;”;

(c)   in the definition of “specified”, after “renewables obligation order”
insert “or a renewables obligation closure order”.

(3)   In section 106 of EA 1989 (regulations and orders), in subsection (2)(b) after
“32,” insert “32LA,”.

(4)   In Article 56(1) of the Energy (Northern Ireland) Order 2003 (S.I. 2003/419
(N.I. 6)) (power to amend Part 7 of that Order to take account of
amendments of corresponding Great Britain provisions), the reference to
amendments made to sections 32 to 32C of EA 1989 includes a reference to
subsections (1) and (2) of this section.”

Page 42, leave out lines 45 to 47

Page 44, line 46, at end insert—

“32XA           Certificate purchase orders: corresponding provision

(1)   This section applies where the Secretary of State exercises a listed
power in the making of a certificate purchase order.

(2)   The Secretary of State must—

(a)   so far as the order is made for a GB purpose, exercise the
listed power in the way that the Secretary of State considers
will replicate the effect of provision contained in a
renewables obligation order (whenever made, and whether
or not made by the Secretary of State) by virtue of the
equivalent GB power;

(b)   so far as the order is made for a NI purpose, exercise the
listed power in the way that the Secretary of State considers
will replicate the effect of provision contained in an order
under Article 52 of the 2003 NI Order (whenever made) by
virtue of the equivalent NI power.

(3)   The duty in subsection (2) to exercise any listed power in the way
mentioned in that subsection applies only to the extent that it
appears to the Secretary of State that—

(a)   it is reasonably practicable to exercise the listed power in
that way, and

(b)   exercising the power in that way is not inconsistent with
other duties or requirements of the Secretary of State
(whether arising under this Act or another enactment, by
virtue of any EU obligation or otherwise).

(4)   In the Table—

(a)   a “listed power” is any power specified in the first column;

(b)   the “equivalent GB power”, in relation to a listed power, is
the power specified in the corresponding entry in the
second column;

(c)   the “equivalent NI power”, in relation to a listed power, is
the power specified in the corresponding entry in the third
column, and in that column references to an Article are to an
Article of the 2003 NI Order.

(5)   The duty in subsection (2), so far as it has effect in relation to the
exercise of the listed power under section 32V(1) to specify different
amounts of electricity in relation to different cases or circumstances,
applies only to the first exercise of that listed power.

(6)   The relevant part of Great Britain to which a renewables obligation
order relates may be ignored for the purposes of subsection (2)(a).

(7)   It does not matter for the purposes of subsection (2) whether or not
a renewables obligation order, or an order made under Article 52 of
the 2003 NI Order, is in force at the time when the listed powers in
question are being exercised.

(8)   In this section—

“2003 NI Order” means the Energy (Northern Ireland) Order
2003 (S.I. 2003/419 (N.I. 6));

“GB purpose” means the purpose of imposing the certificate
purchase obligation on the purchasing body of GB
certificates;

“NI purpose” means the purpose of imposing the certificate
purchase obligation on the purchasing body of NI
certificates.”

Page 45, line 37, after “Part)” insert “, and by section 123(2) of the Energy Act 2013
(duties in relation to strategy and policy statement),”

Page 48, line 25, leave out ““32,”” and insert ““32LA,” (as inserted by section
(Closure of support under the renewables obligation)(3))”

Page 49, line 1, leave out “Until (and including) 2044,”

Page 49, line 1, leave out “2044” and insert “2029”

Page 49, line 1, at end insert—

“(2A)    The statutory rate of emissions set in subsection (2) must be
reviewed every three years in line with the decarbonisation
reporting process required under the Energy Act 2010.

(2B)   The statutory rate of emissions will apply to new fossil fuel plants
at the point at which they are consented.

(2C)   The Secretary of State may by regulations, and following the
approval of Parliament, change the statutory rate of emissions
following a review made under subsection (2A).

(2D)   The statutory rate of emission applying to a fossil fuel plant will
remain at the rate which was applied when consented for its
lifetime.”

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.”

Insert the following new Clause—

“Energy storage systems

The Secretary of State must—

(a)   set out a plan to support the development of storage systems for
electricity that is generated from renewable sources;

(b)   put in place pilot schemes to store renewable energy and reduce the
problem associated with intermittency of supply;

(c)   set targets in relation to the provision of renewable energy storage
capacity; and

(d)   set out progress made on these issues in the form of a report, which
must be laid before Parliament.”

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) Regulations 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 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 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 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).””

Page 92, line 39, at end insert—

“( )   The Authority must demonstrate that it has complied with its general
environmental duties as stipulated in national and international
legislation.”

Page 92, line 39, at end insert—

“( )   The Secretary of State shall issue guidance on social and environmental
policies to which the Authority shall have regard in carrying out its
functions.”

Page 94, line 36, at end insert “and in accordance with any guidance issued under
this section”

Page 94, line 36, at end insert—

“( )   The Secretary of State must issue guidance about arrangements for wider
public engagement including consultation on social and environmental
matters.”

Page 100, line 16, at end insert—

“(ba)   require information to be provided in a form that is clear and easy
to understand;”

Page 100, line 18, leave out from “information” to “about” in line 23

Page 100, line 24, after “terms” insert “to be provided”

Page 100, line 24, at end insert—

“(c)   make provision about the way in which information is to be
provided, which may in particular require information to be
provided—

(i)   by means of a code or otherwise using a format readable by
an electronic device, or

(ii)   in a way which facilitates processing of the information by
means of an electronic device.”

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.”

Insert the following new Clause—

“Transparency for consumers

The power under section 130 to modify energy supply licences may be
exercised so as to make provision requiring a licence holder to provide
information on a consumer bill that breaks down the total cost charged to
the consumer by showing each of—

(a)   the amount that goes to Government environmental levies or
programmes;

(b)   the amount that goes to administration costs;

(c)   the amount that goes to wholesale energy costs;

(d)   the amount for raw energy costs; and

(e)   any other categories of cost.”

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.”

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.”

Insert the following new Clause—

“Amendment of Electricity Act 1989: generating station and overhead line
development by non licence-holders

In Schedule 9 to Electricity Act 1989 (preservation of amenity and fisheries),
after paragraph 4 insert—

“4A    (1)   Sub-paragraph (2) applies where a person who is neither a
licence holder nor authorised by exemption to generate,
distribute, supply or participate in the transmission of electricity
applies for the consent of the Secretary of State under section 36
or 37 of this Act.

(2)   Paragraphs 1 and 3 above apply to the making and consideration
of the application as they apply to the making and consideration
of relevant proposals made by a person who is a licence holder or
so authorised by exemption.””

Page 113, line 1, leave out sub-paragraph (iv) and insert—

“( )   section 49 (transition to certificate purchase scheme);”

Page 113, line 6, at end insert—

“( )   Section (Closure of support under the renewables obligation)(4) extends to
Northern Ireland only.”

Page 113, line 32, leave out paragraph (c) and insert—

“( )   section 49 (transition to certificate purchase scheme);”

Page 114, line 7, at end insert—

“( )   section (Closure of support under the renewables obligation) (closure of
support under the renewables obligation);”