Energy Bill (HL Bill 48)

(d) being used, as respects part, as mentioned in one of paragraphs
(a), (b) or (c) and as respects the remainder—

(i) as mentioned in one of the other paragraphs, or

(ii) as respects part, as mentioned in one of the other
5paragraphs and as respects the remainder as mentioned
in the other;

(e) being used, as respects part, as mentioned in paragraph (a), (b),
(c) or (d) and as respects the remainder by being supplied by a
Northern Ireland supplier to customers in Northern Ireland.

(10) 10Paragraph (9) of Article 54 of the Energy (Northern Ireland) Order 2003
(meaning of supply of electricity through a private wire network)
applies for the purposes of subsection (9)(b) as it applies for the
purposes of paragraph (8)(b) of that Article.

32U Sections 32S and 32T: supplemental provision

(1) 15A certificate purchase order may provide—

(a) that no certificates are to be issued in respect of electricity
generated in specified cases or circumstances, or

(b) that certificates are to be issued in respect of a proportion only
of the electricity generated in specified cases or circumstances.

(2) 20In particular, provision made by virtue of subsection (1) may specify—

(a) electricity generated using specified descriptions of renewable
sources,

(b) electricity generated by specified descriptions of generating
station, or

(c) 25electricity generated in specified ways.

(3) Provision made by virtue of subsection (1)(b) may include—

(a) provision about how the proportion is to be determined;

(b) provision about what, subject to such exceptions as may be
specified, constitutes sufficient evidence of any matter required
30to be established for the purpose of determining that
proportion;

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

(i) 35for samples of any fuel used (or to be used) in the
generating station, or of any gas or other substance
produced 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, and

(ii) 40for the results of that analysis to be made available to the
relevant authority.

(4) In the case of electricity generated by a generating station fuelled or
driven—

(a) partly by renewable sources, and

(b) 45partly by fossil fuel (other than waste which constitutes a
renewable source),

only the proportion attributable to the renewable sources is to be
regarded as generated from such sources.

(5) A certificate purchase order may specify—

(a) how the proportion referred to in subsection (4) is to be
determined, and

(b) the consequences for the issuing of certificates if a generating
5station of the type mentioned in that subsection uses more than
a specified proportion of fossil fuel during a specified period.

(6) Those consequences may include the consequences that no certificates
are to be issued in respect of any electricity generated by that
generating station during that period.

(7) 10A certificate purchase order may provide that ownership of a certificate
may be transferred—

(a) only to persons of a specified description;

(b) only if other specified conditions are met.

(8) A certificate purchase order may specify circumstances in which the
15relevant authority may revoke a certificate before the certificate
purchase obligation in respect of the certificate is discharged (whether
before or after the certificate is presented for payment).

(9) A certificate purchase order must—

(a) prohibit the issue of GB certificates certifying that electricity has
20been supplied to customers in Northern Ireland by virtue of
section 32S(5) or (7) where the Northern Ireland authority has
notified the Authority that it is not satisfied that the electricity
in question has been supplied to customers in Northern Ireland,
and

(b) 25require the revocation of such a certificate if the Northern
Ireland authority so notifies the Authority at a time between the
issue of the certificate and its presentation for payment for the
purposes of the certificate purchase obligation.

(10) A certificate purchase order may make provision requiring a person to
30whom a certificate is issued to pay to the relevant authority an amount
equal to any amount that has been paid in respect of the certificate
under the certificate purchase obligation if it appears to the authority
that—

(a) the certificate should not have been issued to that person, and

(b) 35it is not possible to secure the recovery of such an amount by
refusing to issue another certificate to the person.

(11) Provision under subsection (10) may include provision about
enforcement and appeals.

(12) The Authority must pay any amounts it receives by virtue of subsection
40(10) into the Consolidated Fund.

(13) The Northern Ireland authority must pay any amounts it receives by
virtue of subsection (10) into the Consolidated Fund of Northern
Ireland.

32V Certificate purchase orders: amounts of electricity stated in certificates

(1) 45A certificate purchase order may specify the amount of electricity to be
stated in each certificate, and different amounts may be specified in
relation to different cases or circumstances.

(2) In particular, different amounts may be specified in relation to—

(a) electricity generated from different renewable sources;

(b) electricity generated by different descriptions of generating
station;

(c) 5electricity generated in different ways.

(3) In this section “banding provision” means provision made in a
certificate purchase order by virtue of subsection (1).

(4) Before making any banding provision, the Secretary of State must have
regard to the following matters—

(a) 10the costs (including capital costs) associated with generating
electricity from each of the renewable sources or with
transmitting or distributing electricity so generated;

(b) the income of operators of generating stations in respect of
electricity generated from each of those sources or associated
15with the generation of such electricity;

(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) 20the 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
25impact 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) 30For 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
35with 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) 40After 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) 45may 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

State 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
5banding provision.

(2) The 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
10descriptions as may be specified, or

(b) so 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
15obligation 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) the effect of any banding provision made in an order under
Article 52 of the Energy (Northern Ireland) Order 2003, by
20virtue 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) Section 32V(4) and (7) do not apply in relation to provision of the kind
mentioned in subsection (2) or (3) above.

(5) 25Subsection (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) the circumstances of the case meet specified requirements.

(6) The requirements specified under subsection (5)(b) may relate to the
30time 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
provide for the operation of that provision in relation to electricity
generated by a generating station to which this subsection applies to be
35conditional 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
of the grant or part before the repayment date,

(b) to pay to the payer interest on an amount repayable under
40paragraph (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) if 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) 45For the purposes of subsection (7)—

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

(b) the 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) 5a grant awarded under section 5(1) of the Science and
Technology 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
10provision (as defined by section 1(f) of the Interpretation Act
(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) 15the Authority to require a person to provide it with information,
or with information of a particular kind, which in the
Authority’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) 20the Northern Ireland authority to require a person to provide it
with information, or with information of a particular kind,
which 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) 25That information must be given to the relevant authority in whatever
form it requires.

(3) A certificate purchase order may—

(a) require operators of generating stations generating electricity
(wholly or partly) from biomass to give specified information,
30or information of a specified kind, to the relevant authority;

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

(c) require 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
35of certificates to the operator of a generating station who fails to
comply with a requirement imposed by virtue of paragraph (a)
or (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
40failure is remedied within a specified period.

(4) The relevant authority may publish information obtained by virtue of
subsection (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
45evidence in civil proceedings in the High Court or, in Scotland, the
Court of Session.

32Y Certificate 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) 5make transitional provision and savings;

(c) provide 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
10may be specified in the order;

(d) make 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
15before 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) Northern Ireland RO certificates, issued in respect of a period
before the imposition of the certificate purchase obligation, to
20be 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,
make—

(a) different provision in relation to different suppliers;

(b) 25different provision in relation to generating stations of different
descriptions;

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

(4) In subsection (3) “supplier” means an electricity supplier or a Northern
30Ireland supplier.

(5) The Authority and the Northern Ireland authority may enter into
arrangements for the Authority to act on behalf of the Northern Ireland
authority for, or in connection with, the carrying out of any functions
conferred on the Northern Ireland authority under, or for the purposes
35of, 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)
do 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
40connection with imposing the certificate purchase obligation on the
purchasing body of NI certificates.

32Z Certificate purchase orders: procedure

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

(a) 45the Authority,

(b) the Northern Ireland authority,

(c) the Council,

(d) the 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
5Secretary 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
10resolution 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
15of 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
required to—

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

(b) 20obtain the consent of the Northern Ireland department under
subsection (4),

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

(6) 25Designation 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 Interpretation of sections 32N to 32Z1

(1) In this section and sections 32N to 32Z (“the relevant sections”), the
30following terms have the meanings given in section 32M(1)—

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

• “generated”;

• “Northern Ireland authority”;

• “Northern Ireland supplier”;

• 35“renewables obligation certificate”;

• “renewables obligation order”.

(2) In the relevant sections—

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

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

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

• “certificate purchase levy” is to be construed in accordance with
  45section 32P;

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

Energy BillPage 47

• “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
  51992, and “distributing” is to be construed accordingly;

• “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;

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

• “the purchasing body of GB certificates” is to be construed in
  15accordance with section 32N(4);

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

• “relevant authority” means—

  (a)

  in relation to GB certificates, the Authority;

  (b)

  20in relation to NI certificates, the Northern Ireland
  authority;

• “relevant purchasing body” means—

  (a)

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

  (b)

  25in relation to NI certificates, the purchasing body of NI
  certificates;

• “renewable sources” means sources of energy other than fossil fuel
  or nuclear fuel, but includes waste of which not more than a
  specified proportion is waste which is, or is derived from, fossil
  30fuel;

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

• “transmission system” includes a transmission system within the
  meaning of Part 2 of the Electricity (Northern Ireland) Order
  351992, 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) about what constitutes “waste”;

(b) about how the proportion of waste which is, or is derived from,
40fossil fuel is to be determined;

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

(d) authorising the relevant authority, in specified circumstances,
45to 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
produced as a result of the use of such fuel, to be taken
by a person, and analysed in a manner, approved by the
50relevant authority;

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

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

(5) 5In 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) A certificate purchase order may provide that “Northern Ireland”
includes the territorial sea adjacent to Northern Ireland.

(7) 10An 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
15general or residual purposes of that Act.

(8) References in the relevant sections to the supply of electricity to
customers 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) 20A certificate purchase order may make provision, for the purposes of
the relevant sections, about the circumstances in which electricity is to
be regarded as having been supplied—

(a) to customers in Great Britain;

(b) to customers in Northern Ireland.”

(3) 25In section 106 (regulations and orders), in subsection (2)(b) after “32,” insert
“32N, 32R(4),”.

(4) In 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

50 30Duty not to exceed annual carbon dioxide emissions limit

(1) The operator of any fossil fuel plant must secure that the emissions of carbon
dioxide 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—

35and—

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

(3) In 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) 5Those conditions are that the generating station—

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

(b) uses—

(i) fossil fuel, or

(ii) 10fuel 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
15subsection (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
20CCS 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
25safety 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
30emissions 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) 35“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
40implementing 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.