Energy Bill (HL Bill 57)

certificate is, or was or will in future be, required to be issued to
the person;

(b) the Northern Ireland authority to require a person to provide it
with information, or with information of a particular kind,
5which 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) That information must be given to the relevant authority in whatever
form it requires.

(3) 10A certificate purchase order may—

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

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

(c) 15require 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
of certificates to the operator of a generating station who fails to
comply with a requirement imposed by virtue of paragraph (a)
20or (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
failure is remedied within a specified period.

(4) The relevant authority may publish information obtained by virtue of
25subsection (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
evidence in civil proceedings in the High Court or, in Scotland, the
Court of Session.

32Y 30 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
35power 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
40power 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
45mentioned 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) 5In 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) 10the “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
35amounts 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
52003 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)S.I. 2003/419 (N.I. 6));

• 10“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.

32Z Certificate purchase orders: general provision

(1) 15A 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) make transitional provision and savings;

(c) provide for anything falling to be calculated or otherwise
20determined 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
may be specified in the order;

(d) make different provision for different cases or circumstances.

(2) 25Provision made by virtue of subsection (1)(b) may, in particular,
include provision for—

(a) renewables obligation certificates, issued in respect of a period
before the imposition of the certificate purchase obligation, to
be treated as if they were GB certificates issued in respect of a
30subsequent 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
be treated as if they were NI certificates issued in respect of a
subsequent period for which the order is in force.

(3) 35Provision made by virtue of subsection (1)(d) may, in particular,
make—

(a) different provision in relation to different suppliers;

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

(c) 40different 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
Ireland supplier.

(5) The Authority and the Northern Ireland authority may enter into
45arrangements 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
of, 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),
and by section 132(2) of the Energy Act 2013 (duties in relation to
strategy and policy statement), do not apply in relation to the exercise
5of a power under section 32N to make a certificate purchase order so far
as it is made for or in connection with imposing the certificate purchase
obligation on the purchasing body of NI certificates.

32Z1 Certificate purchase orders: procedure

(1) Before making a certificate purchase order, the Secretary of State must
10consult—

(a) the Authority,

(b) the Northern Ireland authority,

(c) the Council,

(d) the General Consumer Council for Northern Ireland,

(e) 15such 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
Secretary of State considers appropriate, and

(g) 20such 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
resolution of each House of Parliament.

(3) 25The 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
of the Northern Ireland department before making a certificate
30purchase 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) obtain the consent of the Northern Ireland department under
35subsection (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) Designation of the Northern Ireland department as the administrator of
40the certificate purchase levy by virtue of section 32P(8)(b) requires the
consent of that department.

32Z2 Interpretation of sections 32N to 32Z2

(1) In this section and sections 32N to 32Z1 (“the relevant sections”), the
following terms have the meanings given in section 32M(1)—

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

• “generated”;

• “Northern Ireland authority”;

Energy BillPage 54

• “Northern Ireland supplier”;

• “renewables obligation certificate”;

• “renewables obligation order”.

(2) In the relevant sections—

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

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

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

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

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

• 15“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
  1992, and “distributing” is to be construed accordingly;

• 20“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;

• “Northern Ireland RO certificate” means a certificate issued by the
  25Northern 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
  accordance with section 32N(4);

• 30“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)

  in relation to NI certificates, the Northern Ireland
  35authority;

• “relevant purchasing body” means—

  (a)

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

  (b)

  in relation to NI certificates, the purchasing body of NI
  40certificates;

• “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
  fuel;

• 45“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
  1992, 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,
5fossil 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,
10to 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
15relevant 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) 20In 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) 25An 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
30general 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) 35A 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) 40In section 106 (regulations and orders), in subsection (2)(b) after “32LA,” (as
inserted by section 55(3))” 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 32Z2;”.

CHAPTER 8 Emissions performance standard

57 Duty 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
5tonnes of carbon dioxide (“the emissions limit”) in any year, where—

and—

(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
10satisfies the conditions in subsection (4), together with any associated
gasification plant and any associated CCS plant.

(4) Those 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) 15uses—

(i) fossil fuel, or

(ii) fuel produced by gasification plant.

(5) Subsection (1) is subject to—

(a) section 58, and

(b) 20any 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
subsection (1) (“the emissions limit duty”);

(b) 25make 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
CCS plant associated with gasification plant) is associated with a
30generating 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
safety purposes, or in an emergency, or

(ii) 35by 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
emissions 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
5plant;

(f) specifying the meaning of any of the following expressions—

(i) “operator”, in relation to fossil fuel plant;

(ii) “installed generating capacity”;

(iii) “constructed pursuant to a relevant consent”, in relation to an
10electricity 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
implementing the ETS Directive.

(8) Provision that may be made by virtue of subsection (7)(d) includes provision
15for 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.

58 Introduction of carbon capture and storage: exemption from emissions limit

(1) The emissions limit duty does not apply during the exemption period in
20relation to fossil fuel plant for which there is a complete CCS system.

(2) For this purpose, a complete CCS system, in relation to fossil fuel plant, is a
system of plant and facilities for—

(a) capturing some or all of the carbon dioxide (or any substance consisting
primarily of carbon dioxide) that is produced by, or in connection with,
25generation of electricity by the generating station comprised in the
fossil fuel plant,

(b) transporting the carbon dioxide (or substance) captured, and

(c) disposing of it by way of permanent storage.

(3) The exemption period for any fossil fuel plant is the period—

(a) 30beginning with the first day on which the fossil fuel plant and its
complete CCS system are ready for use, and

(b) ending with—

(i) the expiry of 3 years beginning with that day, or

(ii) 31 December 2027,

35whichever is earlier.

(4) In subsection (3), “use” includes testing in connection with the generation of
electricity on a commercial scale.

(5) Subsection (1) is subject to any provision made by regulations under section
57(6)(b).

59 40Suspension etc of emissions limit in exceptional circumstances

(1) This section applies where an appropriate authority considers that there is an
electricity shortfall, or a significant risk of an electricity shortfall.

(2) Where this section applies, the appropriate authority may direct that, in
relation to relevant plant, the emissions limit duty is to be treated as—

(a) suspended for a period specified in the direction, or

(b) modified for a period specified in the direction.

(3) For the purposes of this section, there is an electricity shortfall when—

(a) the electricity available in Great Britain is insufficient to meet demands
5in Great Britain, or

(b) the electricity available in Northern Ireland is insufficient to meet
demands in Northern Ireland.

(4) For this purpose—

(a) electricity available in Great Britain or Northern Ireland includes
10electricity that is available there by virtue of an electricity
interconnector (within the meaning of Part 1 of EA 1989), and

(b) subject to that, it is for the appropriate authority to determine what is
to be regarded as available electricity.

(5) Before giving a direction under this section, the Secretary of State must
15consult—

(a) the Scottish Ministers,

(b) the Welsh Ministers, and

(c) such other persons as the Secretary of State considers it appropriate to
consult.

(6) 20As soon as practicable after giving a direction under this section, the Secretary
of State must lay before Parliament a document containing—

(a) a copy of the direction, and

(b) a statement of the Secretary of State’s reasons for making the direction.

(7) Before giving a direction under this section, the Department of Enterprise,
25Trade and Investment must consult such persons as it considers it appropriate
to consult.

(8) As soon as practicable after giving a direction under this section, the
Department of Enterprise, Trade and Investment must lay before the Northern
Ireland Assembly a document containing—

(a) 30a copy of the direction, and

(b) a statement of the Department’s reasons for making the direction.

(9) A direction under this section—

(a) is to be made in writing;

(b) may include incidental, supplementary and transitional provision;

(c) 35may be varied or revoked by a further direction under this section.

(10) Provision that may be made by virtue of subsection (9)(b) includes, in
particular, provision imposing requirements on enforcing authorities (within
the meaning of Schedule 5) for Great Britain or Northern Ireland, as the case
may be.

(11) 40Each appropriate authority—

(a) must issue (and may from time to time revise) a statement of the
Secretary of State’s or, as the case may be, that Department’s policy in
relation to making directions under this section,

(b) must publish the up-to-date text of the statement whenever it is issued
45or revised, and

(c) must have regard to the statement in making any direction under this
section.

(12) For the purposes of this section—

• “appropriate authority” means—

  (a)

  5the Secretary of State, or

  (b)

  the Department of Enterprise, Trade and Investment;

• “relevant generating station” means a generating station which satisfies
  paragraphs (a) and (b) of section 57(4);

• “relevant plant” means—

  (a)

  10in relation to a direction by the Secretary of State, fossil fuel
  plant which consists of or includes a relevant generating station
  in Great Britain;

  (b)

  in relation to a direction by the Department of Enterprise, Trade
  and Investment, fossil fuel plant which consists of or includes a
  15relevant generating station in Northern Ireland.

60 Monitoring and enforcement

(1) It is the duty of the appropriate national authority to make arrangements for
monitoring compliance with, and enforcement of, the emissions limit duty.

(2) The appropriate national authority may by regulations make any provision
20mentioned in Schedule 5 (monitoring compliance with, and enforcement of,
the emissions limit duty).

(3) The arrangements under subsection (1) must include arrangements for giving
effect to directions under section 59 (and, in particular, for compliance by
enforcing authorities with any requirements imposed on them under
25subsection (10) of that section).

(4) In this section (and Schedule 5), the “appropriate national authority” means—

(a) in relation to England, the Secretary of State;

(b) in relation to Scotland, the Scottish Ministers;

(c) in relation to Wales, the Welsh Ministers;

(d) 30in relation to Northern Ireland, the Department of Environment.

(5) Subsection (4) is subject to paragraph 5 of Schedule 5 (which provides for the
Secretary of State to make certain provision for Scotland, Wales and Northern
Ireland).

61 Interpretation of Chapter 8

(1) 35In this Chapter—

• “carbon capture and storage technology” means technology for doing, or
  contributing to the doing of, any of the following things—

  (a)

  capturing carbon dioxide (or any substance consisting
  primarily of carbon dioxide) that has been produced by, or in
  40connection with, generation of electricity on a commercial scale;

  (b)

  transporting such carbon dioxide (or substance) that has been
  captured;

  (c)

  disposing of such carbon dioxide (or substance) that has been
  captured, by way of permanent storage;

Energy BillPage 60

• “CCS plant” means plant, or a system of plant and facilities, that uses, or
  is capable of using, carbon capture and storage technology;

• “distribution system” has the meaning given by section 4(4) of EA 1989
  (and “distributed” is to be read accordingly);

• 5“emissions limit duty” means the duty imposed by section 57(1);

• “ETS Directive” means Directive 2003/87/EC of the European Parliament
  and of the Council (as amended from time to time);

• “fossil fuel” means—

  (a)

  coal;

  (b)

  10lignite;

  (c)

  peat;

  (d)

  natural gas (within the meaning of the Energy Act 1976);

  (e)

  crude liquid petroleum;

  (f)

  bitumen;

  (g)

  15any substance which—

  (i)

  is produced directly or indirectly from a substance
  mentioned in paragraphs (a) to (f) for use as a fuel, and

  (ii)

  when burned, produces a greenhouse gas (within the
  meaning given in section 92 of the Climate Change Act
  202008);

• “fossil fuel plant” has the meaning given by section 57(3);

• “gasification plant” means plant which—

  (a)

  uses fossil fuel, and

  (b)

  produces fuel for use in an electricity generating station;

• 25“network generating station” means a station that exports to a network;

• “relevant consent” means—

  (a)

  consent granted under section 36 of EA 1989 or Article 39 of the
  Electricity (Northern Ireland) Order 1992 (S.I. 1992/231 (N.I. 1)S.I. 1992/231 (N.I. 1)),
  or

  (b)

  30an order granting development consent under the Planning Act
  2008;

• “transmission system” has the meaning given by section 4(4) of EA 1989;

• “year”, except in section 58, means any calendar year for which the
  emissions limit is defined by section 57.

(2) 35For the purposes of this Chapter, a generating station exports to a network
when it is generating any electricity that is conveyed from it by means of a
transmission system or is distributed by means of a distribution system.

62 Regulations under Chapter 8

(1) Any regulations made by the Secretary of State or the Welsh Ministers under
40this Chapter must be made by statutory instrument.

(2) Any power to make regulations under this Chapter that is exercisable by the
Department of Environment is to be exercisable by statutory rule for the
purposes of the Statutory Rules (Northern Ireland) Order 1979 (S.I. 1979/1573S.I. 1979/1573
(N.I. 12)).

(3) 45An instrument containing—

(a) regulations under section 57 (whether or not also containing
regulations by the Secretary of State under section 60), or

(b) regulations by the Secretary of State under section 60 which amend or
repeal any provision of primary legislation,

may not be made unless a draft has been laid before and approved by a
resolution of each House of Parliament.

(4) 5Any other instrument containing regulations made by the Secretary of State
under section 60 is subject to annulment in pursuance of a resolution of either
House of Parliament.

(5) If, but for this subsection, an instrument containing regulations by the
Secretary of State under this Chapter would be treated for the purposes of the
10standing 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.

(6) Regulations by the Scottish Ministers under section 60 are—

(a) if they amend or repeal any provision of primary legislation, subject to
the affirmative procedure;

(b) 15otherwise, subject to the negative procedure.

(7) An instrument containing regulations by the Welsh Ministers under section
60—

(a) may not be made if the regulations amend or repeal any provision of
primary legislation unless a draft has been laid before, and approved
20by a resolution of, the National Assembly for Wales;

(b) otherwise, is subject to annulment in pursuance of a resolution of the
National Assembly for Wales.

(8) Statutory rules containing regulations by the Department of Environment
under section 60 are—

(a) 25if the regulations amend or repeal any provision of primary legislation,
subject to affirmative resolution (within the meaning of section 41(6) of
the Interpretation Act (Northern Ireland) 1954), and

(b) otherwise, subject to negative resolution (within the meaning of section
41(4) of that Act).

(9) 30Any regulations under this Chapter may—

(a) include incidental, supplementary and consequential provision;

(b) make transitory or transitional provision or savings;

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

(d) 35make provision subject to exceptions.

(10) Regulations under section 57 that apply in relation to Northern Ireland may be
made only with the consent of the Department of Enterprise, Trade and
Investment.

(11) Before making any regulations under section 57 or 60, the Secretary of State
40must consult—

(a) in the case of regulations under section 57 that will apply in relation to
Scotland or Wales, the Scottish Ministers or the Welsh Ministers,
respectively, and

(b) in any case, such persons (or such other persons) as the Secretary of
45State considers it appropriate to consult.

(12) Before making any regulations under section 60, the Scottish Ministers or the
Welsh Ministers must consult such persons as they think appropriate.

(13) Subsections (11) and (12) may be satisfied by consultation before, as well as
after, the passing of this Act.

CHAPTER 9 Miscellaneous

63 Exemption from liability in damages

(1) 5The Secretary of State may include in regulations under section 6 or 27, or
under paragraph 6 of Schedule 2, provision that—

(a) the national system operator;

(b) any director of the national system operator;

(c) any employee, officer or agent of the national system operator,

10is not liable in damages for anything done or omitted in the exercise or
purported exercise of a relevant function specified in the regulations.

(2) A relevant function is a function conferred by or by virtue of Chapter

2

,

153 or 4

.

(3) Provision made by virtue of subsection (1) may not exempt a person from
liability for an act or omission which—

(a) is shown to be in bad faith;

(b) 20is unlawful by virtue of section 6(1) of the Human Rights Act 1998
(public authorities not to act incompatibly with convention rights);

(c) is a breach of a duty owed by virtue of section 27(4) of EA 1989
(compliance with final or provisional order under that Act).

(4) Whenever—

(a) 25the Secretary of State makes or revokes regulations of a kind mentioned
in subsection (1) or exercises a modification power under section 26 or
37 or paragraph 19 of Schedule 2, and

(b) provision is not in force under subsection (1) in respect of a relevant
function,

30the Secretary of State must publish a statement of the reasons why no such
provision is in force.

(5) In this section “national system operator” means the person operating the
national transmission system for Great Britain (and for this purpose
“transmission system” has the same meaning as in EA 1989 - see section 4(4) of
35that Act).

64 Licence modifications: general

(1) This section applies in relation to a power to make modifications conferred
by—

(a) section 26, 37, 45, 49 or 50, or

(b) 40paragraph 19 of Schedule 2.

(2) Before making modifications under a power to which this section applies (“a
relevant power”) the Secretary of State must lay a draft of the modifications
before Parliament.

(3) 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.

(4) If no such resolution is made within that period, the Secretary of State may
5make the modifications in the form of the draft.

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

(6) 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
10before 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).

(7) 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.

(8) 15A relevant power—

(a) may be exercised generally, only in relation to specified cases or subject
to exceptions (including provision for a case to be excepted only so long
as specified conditions are satisfied);

(b) may be exercised differently in different cases or circumstances;

(c) 20includes a power to make incidental, supplementary, consequential or
transitional modifications.

(9) Provision included in a licence, or in a document or agreement relating to
licences, by virtue of a relevant power—

(a) may make different provision for different cases;

(b) 25need not relate to the activities authorised by the licence;

(c) may do any of the things authorised for licences of that type by section
7(2A), (3), (4) or (6A) of EA 1989.

(10) The Secretary of State must publish details of any modifications made under a
relevant power as soon as reasonably practicable after they are made.

(11) 30If under a relevant power the Secretary of State makes modifications of the
standard conditions of a licence, the Authority must—

(a) make the same modification of those standard conditions for the
purposes of their incorporation in licences of that type granted after
that time, and

(b) 35publish the modification.

(12) A modification made under a relevant power of part of a standard condition of
a licence does not prevent any other part of the condition from continuing to
be regarded as a standard condition for the purposes of Part 1 of EA 1989.

(13) The power conferred by a relevant power to “modify” (in relation to licence
40conditions or a document) includes a power to amend, add to or remove, and
references to modifications are to be construed accordingly.

65 Consequential amendments

(1) In section 3A of EA 1989 (principal objective and general duties), in subsection
(2)(b) for “or sections 26 to 29 of the Energy Act 2010” substitute “, sections 26
45to 29 of the Energy Act 2010 or Part 2 of the Energy Act 2013”.

(2) In section 33(1) of the Utilities Act 2000 (standard conditions of electricity
licences)—

(a) after paragraph (e) omit “or”;

(b) after paragraph (f) insert “or

(g) 5under the Energy Act 2013.”.

(3) In section 137(3) of the Energy Act 2004 (standard conditions of transmission
licences)—

(a) after paragraph (d) omit “or”;

(b) after paragraph (e) insert “, or

(f) 10under the Energy Act 2013,”.

(4) In section 146(5) of the Energy Act 2004 (standard conditions for electricity
interconnectors), for “or under section 98 of the Energy Act 2011” substitute “,
under section 98 of the Energy Act 2011 or section 37 or 45 of the Energy Act
2013.”.

66 15Review of certain provisions of Part 2

(1) As soon as reasonably practicable after the end of the period of 5 years
beginning with the day on which this Act is passed, the Secretary of State must
carry out a review of the provisions of the following Chapters of this Part—

(a) Chapter 2 (contracts for difference);

(b) 20Chapter 3 (capacity market);

(c) Chapter 5 (conflicts of interest and contingency arrangements);

(d) Chapter 6 (access to markets);

(e) Chapter 7 (the renewables obligation: transitional arrangements);

(f) Chapter 8 (emissions performance standard).

(2) 25The Secretary of State must set out the conclusions of the review in a report.

(3) The report must, in particular—

(a) set out the objectives of the provisions of each Chapter subject to
review,

(b) assess the extent to which those objectives have been achieved, and

(c) 30assess whether those objectives remain appropriate and, if so, the
extent to which those objectives could be achieved in a way that
imposes less regulation.

(4) The Secretary of State must lay the report before Parliament.

Part 3 35Nuclear Regulation

CHAPTER 1 The ONR’s purposes

67 The ONR’s purposes

In this Part, “the ONR’s purposes” means—

(a) the nuclear safety purposes (see section 68),

(b) 40the nuclear site health and safety purposes (see section 69),

(c) the nuclear security purposes (see section 70),

(d) the nuclear safeguards purposes (see section 72), and

(e) the transport purposes (see section 73).

68 Nuclear safety purposes

(1) 5In this Part, the “nuclear safety purposes” means the purposes of protecting
persons against risks of harm from ionising radiations from GB nuclear sites,
including through—

(a) the design and construction of relevant nuclear installations and their
associated sites,

(b) 10arrangements for the operation and decommissioning of, and other
processes connected with, relevant nuclear installations,

(c) arrangements for the storage and use of nuclear matter on GB nuclear
sites, and

(d) arrangements to minimise those risks in the event of an escape or
15release of such ionising radiations.

(2) For this purpose, ionising radiations from GB nuclear sites are ionising
radiations from—

(a) relevant nuclear installations, or

(b) nuclear matter stored or used on a GB nuclear site;

20and an escape or release of ionising radiations from a GB nuclear site includes
ionising radiations from nuclear matter that has escaped or been released on or
from a GB nuclear site.

(3) In this section—

• “GB nuclear site” means a nuclear site in England, Wales or Scotland;

• 25“nuclear installation” has the same meaning as in the Nuclear Installations
  Act 1965 (see section 26 of that Act);

• “nuclear matter” has the same meaning as in that Act (see section 26 of
  that Act);

• “relevant nuclear installation” means a nuclear installation on a site (its
  30“associated site”) in England, Wales or Scotland for which a nuclear site
  licence is required by virtue of the installation (and includes a proposed
  or former nuclear installation in respect of which such a licence would
  be or has ever been so required).

69 Nuclear site health and safety purposes

(1) 35In this Part, the “nuclear site health and safety purposes” means so much of the
general purposes of Part 1 of the 1974 Act as consists of the following
purposes—

(a) securing the health, safety and welfare of persons at work on GB
nuclear sites;

(b) 40protecting persons, other than persons at work on GB nuclear sites,
against risks to health or safety arising out of or in connection with the
activities of persons at work on GB nuclear sites;

(c) controlling the storage and use on GB nuclear sites of dangerous
substances and generally preventing the unlawful acquisition,
45possession and use of such substances on or from such sites.

(2) In this section—

(a) “dangerous substances” means radioactive, explosive, highly
flammable or otherwise dangerous substances, other than nuclear
matter;

(b) “GB nuclear site” and “nuclear matter” have the same meanings as in
5section 68.

(3) Section 1(3) of the 1974 Act (interpretation of references to risks relating to
persons at work) applies for the purposes of this section as it applies for the
purposes of Part 1 of the 1974 Act.

70 Nuclear security purposes

(1) 10In this Part, the “nuclear security purposes” means the purposes of ensuring
the security of—

(a) civil nuclear premises;

(b) nuclear material used or stored on civil nuclear premises and
equipment or software used or stored on such premises in connection
15with activities involving nuclear material;

(c) other radioactive material used or stored on civil nuclear sites and
equipment or software used or stored on civil nuclear sites in
connection with activities involving such other radioactive material;

(d) civil nuclear construction sites and equipment used or stored on civil
20nuclear construction sites;

(e) equipment or software in the United Kingdom which—

(i) is capable of being used in, or in connection with, the
enrichment of uranium, and

(ii) is in the possession or control of a person involved in uranium
25enrichment activities;

(f) sensitive nuclear information which is in the United Kingdom in the
possession or control of—

(i) a person who is involved in activities on or in relation to civil
nuclear premises or who is proposing or likely to become so
30involved;

(ii) a person involved in uranium enrichment activities; or

(iii) a person who is storing, transporting or transmitting the
information for or on behalf of a person falling within sub-
paragraph (i) or (ii);

(g) 35nuclear material which is being (or is expected to be)—

(i) transported within the United Kingdom or its territorial sea,

(ii) transported (outside the United Kingdom and its territorial sea)
to or from any civil nuclear premises in the United Kingdom, or

(iii) carried on board a United Kingdom ship,

40other than material being (or expected to be) so transported or carried
for defence purposes;

(h) information relating to the security of anything mentioned in
paragraphs (a) to (g).

(2) For the purposes of subsection (1), ensuring the security of any site or premises
45includes doing so by means of the design of, or of anything on, the site or
premises.

(3) In this section—

• “civil nuclear construction site” means a site—

  Energy BillPage 67

  (a)

  on which works are being carried out with a view to its
  becoming a civil nuclear site, and

  (b)

  which is situated within 5 kilometres of an existing nuclear site;

• “civil nuclear premises” means—

  (a)

  5a civil nuclear site, or

  (b)

  other premises on which nuclear material is used or stored
  which are not controlled or operated wholly or mainly for
  defence purposes;

• “civil nuclear site” means a nuclear site other than one controlled or
  10operated wholly or mainly for defence purposes;

• “defence purposes” means the purposes of the department of the
  Secretary of State with responsibility for defence;

• “enrichment of uranium” means a treatment of uranium that increases the
  proportion of isotope 235 contained in the uranium;

• 15“equipment” includes equipment that has not been assembled and its
  components;

• “nuclear material” means any fissile material in the form of—

  (a)

  uranium metal, alloy or compound, or

  (b)

  plutonium metal, alloy or compound,

  20or any other fissile material prescribed by regulations made by the
  Secretary of State;

• “sensitive nuclear information” means—

  (a)

  information relating to, or capable of use in connection with, the
  enrichment of uranium, or

  (b)

  25information of a description for the time being specified in a
  notice under section 71;

• “United Kingdom ship” means a ship registered in the United Kingdom
  under Part 2 of the Merchant Shipping Act 1995.

71 Notice by Secretary of State to ONR specifying sensitive nuclear information

(1) 30This section applies where the Secretary of State considers that information of
any description relating to activities carried out on or in relation to civil nuclear
premises is information which needs to be protected in the interests of national
security.

(2) The Secretary of State may give a notice to the ONR under this section
35specifying that description of information.