Energy Bill [HL]

Amendments
to be moved
in GRAND committee (on re-commitment)

Clause 66

LORD BOURNE OF ABERYSTWYTH

 

Page 38, line 5, leave out subsection (1)

 

Page 38, line 6, at beginning insert “In Part 1 of the Electricity Act 1989 (electricity
supply),”

 

Page 38, line 10, leave out “which is accredited after that date”

 

Page 38, line 11, at end insert—

“(1A)    Subsection (1) does not apply to electricity generated in the
circumstances set out in any one or more of sections 32LD to 32LL.”

 

Page 38, line 12, leave out “subsection (1)” and insert “this section and sections
32LD to 32LL”

 

Page 38, leave out lines 13 to 15

 

Page 38, leave out lines 22 and 23

 

Page 38, line 29, leave out “regulations under this section” and insert “sections
32LD to 32LL”

 

Page 38, leave out lines 34 to 36

 

Page 38, line 37, leave out subsection (3)

 

Page 39, line 7, leave out “accredited after 31st March 2016”

 

Page 39, line 9, leave out “accredited after 31st March 2016”

After Clause 66

LORD BOURNE OF ABERYSTWYTH

 

Insert the following new Clause—

“Onshore wind power: circumstances in which certificates may be issued after
31 March 2016

(1)     Part 1 of the Electricity Act 1989 (electricity supply) is amended as follows.

(2)     After section 32LC (inserted by section 66) insert—

“32LD           Onshore wind generating stations accredited, or additional
capacity added, on or before 31 March 2016

The circumstances set out in this section are where the electricity
is—

(a)   generated by an onshore wind generating station which was
accredited on or before 31 March 2016, and

(b)   generated using—

(i)   the original capacity of the station, or

(ii)   additional capacity which in the Authority’s view
first formed part of the station on or before 31 March
2016.

32LE          Onshore wind generating stations accredited, or additional
capacity added, between 1 April 2016 and 31 March 2017: grid and
radar delay condition met

The circumstances set out in this section are where the electricity
is—

(a)   generated using the original capacity of an onshore wind
generating station—

(i)   which was accredited during the period beginning
with 1 April 2016 and ending with 31 March 2017,
and

(ii)   in respect of which the grid and radar delay
condition is met, or

(b)   generated using additional capacity of an onshore wind
generating station, where—

(i)   the station was accredited on or before 31 March
2016,

(ii)   in the Authority’s view, the additional capacity first
formed part of the station during the period
beginning with 1 April 2016 and ending with 31
March 2017, and

(iii)   the grid and radar delay condition is met in respect
of the additional capacity.

32LF          Onshore wind generating stations accredited, or additional
capacity added, on or before 31 March 2017: approved
development condition met

The circumstances set out in this section are where the electricity
is—

(a)   generated using the original capacity of an onshore wind
generating station—

(i)   which was accredited on or before 31 March 2017,
and

(ii)   in respect of which the approved development
condition is met, or

(b)   generated using additional capacity of an onshore wind
generating station, where—

(i)   the station was accredited on or before 31 March
2016,

(ii)   in the Authority’s view, the additional capacity first
formed part of the station on or before 31 March
2017, and

(iii)   the approved development condition is met in
respect of the additional capacity.

32LG          Onshore wind generating stations accredited, or additional
capacity added, between 1 April 2017 and 31 March 2018: grid and
radar delay condition met

The circumstances set out in this section are where the electricity
is—

(a)   generated using the original capacity of an onshore wind
generating station—

(i)   which was accredited during the period beginning
with 1 April 2017 and ending with 31 March 2018,

(ii)   in respect of which the approved development
condition is met, and

(iii)   in respect of which the grid and radar delay
condition is met, or

(b)   generated using additional capacity of an onshore wind
generating station, where—

(i)   the station was accredited on or before 31 March
2016,

(ii)   in the Authority’s view, the additional capacity first
formed part of the station during the period
beginning with 1 April 2017 and ending with 31
March 2018,

(iii)   the approved development condition is met in
respect of the additional capacity, and

(iv)   the grid and radar delay condition is met in respect
of the additional capacity.

32LH          Onshore wind generating stations accredited, or additional
capacity added, between 1 April 2017 and 31 December 2017:
investment freezing condition met

The circumstances set out in this section are where the electricity
is—

(a)   generated using the original capacity of an onshore wind
generating station—

(i)   which was accredited during the period beginning
with 1 April 2017 and ending with 31 December
2017, and

(ii)   in respect of which both the approved development
condition and the investment freezing condition are
met, or

(b)   generated using additional capacity of an onshore wind
generating station, where—

(i)   the station was accredited on or before 31 March
2016,

(ii)   in the Authority’s view, the additional capacity first
formed part of the station during the period
beginning with 1 April 2017 and ending with 31
December 2017, and

(iii)   both the approved development condition and the
investment freezing condition are met in respect of
the additional capacity.

32LI          Onshore wind generating stations accredited, or additional
capacity added, between 1 January 2018 and 31 December 2018:
grid and radar delay condition met

The circumstances set out in this section are where the electricity
is—

(a)   generated using the original capacity of an onshore wind
generating station—

(i)   which was accredited during the period beginning
with 1 January 2018 and ending with 31 December
2018,

(ii)   in respect of which both the approved development
condition and the investment freezing condition are
met, and

(iii)   in respect of which the grid and radar delay
condition is met, or

(b)   generated using additional capacity of an onshore wind
generating station, where—

(i)   the station was accredited on or before 31 March
2016,

(ii)   in the Authority’s view, the additional capacity first
formed part of the station during the period
beginning with 1 January 2018 and ending with 31
December 2018,

(iii)   both the approved development condition and the
investment freezing condition are met in respect of
the additional capacity, and

(iv)   the grid and radar delay condition is met in respect
of the additional capacity.

32LJ          The approved development condition

(1)     This section applies for the purposes of sections 32LF to 32LI.

(2)     The approved development condition is met in respect of an
onshore wind generating station if the documents specified in
subsections (4), (5) and (6) were provided to the Authority with the
application for accreditation of the station.

(3)     The approved development condition is met in respect of
additional capacity if the documents specified in subsections (4), (5)
and (6) were provided to the Authority on or before the date on
which the Authority made its decision that the additional capacity
could form part of an onshore wind generating station.

(4)     The documents specified in this subsection are—

(a)   evidence that—

(i)   planning permission for the station or additional
capacity was granted on or before 18 June 2015, and

(ii)   any conditions as to the time period within which
the development to which the permission relates
must be begun have not been breached,

(b)   evidence that—

(i)   planning permission for the station or additional
capacity was refused on or before 18 June 2015, but
granted after that date following an appeal or
judicial review, and

(ii)   any conditions as to the time period within which
the development to which the permission relates
must be begun have not been breached,

(c)   evidence that—

(i)   an application for 1990 Act permission or 1997 Act
permission was made on or before 18 June 2015 for
the station or additional capacity,

(ii)   the period allowed under section 78(2) of the 1990
Act or (as the case may be) section 47(2) of the 1997
Act ended on or before 18 June 2015 without any of
the things mentioned in section 78(2)(a) to (b) of the
1990 Act or section 47(2)(a) to (c) of the 1997 Act
being done in respect of the application,

(iii)   the application was not referred to the Secretary of
State, Welsh Ministers or Scottish Ministers in
accordance with directions given under section 77 of
the 1990 Act or section 46 of the 1997 Act,

(iv)   1990 Act permission or 1997 Act permission was
granted after 18 June 2015 following an appeal, and

(v)   any conditions as to the time period within which
the development to which the permission relates
must be begun have not been breached, or

(d)   a declaration by the operator of the station that, to the best
of the operator’s knowledge and belief, planning
permission is not required for the station or additional
capacity.

(5)     The documents specified in this subsection are—

(a)   a copy of an offer from a licensed network operator made on
or before 18 June 2015 to carry out grid works in relation to
the station or additional capacity, and evidence that the
offer was accepted on or before that date (whether or not the
acceptance was subject to any conditions or other terms), or

(b)   a declaration by the operator of the station that, to the best
of the operator’s knowledge and belief, no grid works were
required to be carried out by a licensed network operator in
order to enable the station to be commissioned or the
additional capacity to form part of the station.

(6)     The documents specified in this subsection are a declaration by the
operator of the station that, to the best of the operator’s knowledge
and belief, as at 18 June 2015 a relevant developer of the station or
additional capacity (or a person connected, within the meaning of
section 1122 of the Corporation Tax Act 2010, with a relevant
developer of the station or additional capacity)—

(a)   was an owner or lessee of the land on which the station or
additional capacity is situated,

(b)   had entered into an agreement to lease the land on which
the station or additional capacity is situated,

(c)   had an option to purchase or to lease the land on which the
station or additional capacity is situated, or

(d)   was a party to an exclusivity agreement in relation to the
land on which the station or additional capacity is situated.

(7)     In this section—

“the 1990 Act” means the Town and Country Planning Act
1990;

“1990 Act permission” means planning permission under the
1990 Act (except outline planning permission, within the
meaning of section 92 of that Act);

“the 1997 Act” means the Town and Country Planning
(Scotland) Act 1997;

“1997 Act permission” means planning permission under the
1997 Act (except planning permission in principle, within
the meaning of section 59 of that Act);

“exclusivity agreement”, in relation to land, means an
agreement by the owner or a lessee of the land not to permit
any person (other than the persons identified in the
agreement) to construct an onshore wind generating station
on the land;

“planning permission” means—

(a)   consent under section 36 of this Act,

(b)   1990 Act permission,

(c)   1997 Act permission, or

(d)   development consent under the Planning Act 2008.

32LK          The investment freezing condition

(1)     This section applies for the purposes of sections 32LH and 32LI.

(2)     The investment freezing condition is met in respect of an onshore
wind generating station if the documents specified in subsection (4)
were provided to the Authority with the application for
accreditation of the station.

(3)     The investment freezing condition is met in respect of additional
capacity if the documents specified in subsection (4) were provided
to the Authority on or before the date on which the Authority made
its decision that the additional capacity could form part of an
onshore wind generating station.

(4)     The documents specified in this subsection are—

(a)   a declaration by the operator of the station that, to the best
of the operator’s knowledge and belief, as at 1 May 2016—

(i)   the relevant developer required funding from a
recognised lender before the station could be
commissioned or additional capacity could form
part of the station,

(ii)   a recognised lender was not prepared to provide
that funding until enactment of the Energy Act 2016,
because of uncertainty over whether the Act would
be enacted and its wording if enacted, and

(iii)   the station would have been commissioned, or the
additional capacity would have formed part of the
station, on or before 31 March 2017 if the funding
had been provided before enactment of that Act, and

(b)   a letter or other document, dated on or before 1 May 2016,
from a recognised lender confirming (whether or not the
confirmation is subject to any conditions or other terms) that
the lender was not prepared to provide funding in respect
of the station or additional capacity until enactment of the
Energy Act 2016, because of uncertainty over whether the
Act would be enacted and its wording if enacted.

(5)     In this section “recognised lender” means a provider of debt finance
which has been issued with an investment grade credit rating by a
registered credit rating agency.

(6)     For the purposes of subsection (5)—

“investment grade credit rating” means a credit rating
commonly understood by registered credit rating agencies
to be investment grade;

“registered credit rating agency” means a credit rating agency
registered in accordance with Regulation (EC) No 1060/
2009 of the European Parliament and the Council of 16
September 2009 on credit rating agencies.

32LL          The grid and radar delay condition

(1)     This section applies for the purposes of sections 32LE, 32LG and
32LI.

(2)     The grid and radar delay condition is met in respect of an onshore
wind generating station if, on or before the date on which the
Authority made its decision to accredit the station, the documents
specified in subsection (4), (5) or (6) were—

(a)   submitted by the operator of the station, and

(b)   received by the Authority.

(3)     The grid and radar delay condition is met in respect of additional
capacity if, on or before the date on which the Authority made its
decision that the additional capacity could form part of an onshore
wind generating station, the documents specified in subsection (4),
(5) or (6) were—

(a)   submitted by the operator of the station, and

(b)   received by the Authority.

(4)     The documents specified in this subsection are—

(a)   evidence of an agreement with a network operator (“the
relevant network operator”) to carry out grid works in
relation to the station or additional capacity (“the relevant
grid works”);

(b)   a copy of a document written by, or on behalf of, the
relevant network operator which estimated or set a date for
completion of the relevant grid works (“the planned grid
works completion date”) which was no later than the
primary date;

(c)   a letter from the relevant network operator confirming
(whether or not such confirmation is subject to any
conditions or other terms) that—

(i)   the relevant grid works were completed after the
planned grid works completion date, and

(ii)   in the relevant network operator’s opinion, the
failure to complete the relevant grid works on or
before the planned grid works completion date was
not due to any breach by a generating station
developer of any agreement with the relevant
network operator; and

(d)   a declaration by the operator of the station that, to the best
of the operator’s knowledge and belief, the station would
have been commissioned, or the additional capacity would
have formed part of the station, on or before the primary
date if the relevant grid works had been completed on or
before the planned grid works completion date.

(5)     The documents specified in this subsection are—

(a)   evidence of an agreement between a generating station
developer and a person who is not a generating station
developer (“the radar works agreement”) for the carrying
out of radar works (“the relevant radar works”);

(b)   a copy of a document written by, or on behalf of, a party to
the radar works agreement (other than a generating station
developer) which estimated or set a date for completion of
the relevant radar works (“the planned radar works
completion date”) which was no later than the primary date;

(c)   a letter from a party to the radar works agreement (other
than a generating station developer) confirming, whether or
not such confirmation is subject to any conditions or other
terms, that—

(i)   the relevant radar works were completed after the
planned radar works completion date, and

(ii)   in that party’s opinion, the failure to complete the
relevant radar works on or before the planned radar
works completion date was not due to any breach of
the radar works agreement by a generating station
developer; and

(d)   a declaration by the operator of the station that, to the best
of the operator’s knowledge and belief, the station would
have been commissioned, or the additional capacity would
have formed part of the station, on or before the primary
date if the relevant radar works had been completed on or
before the planned radar works completion date.

(6)     The documents specified in this subsection are—

(a)   the documents specified in subsection (4)(a), (b) and (c);

(b)   the documents specified in subsection (5)(a), (b) and (c); and

(c)   a declaration by the operator of the station that, to the best
of the operator’s knowledge and belief, the station would
have been commissioned, or the additional capacity would
have formed part of the station, on or before the primary
date if—

(i)   the relevant grid works had been completed on or
before the planned grid works completion date, and

(ii)   the relevant radar works had been completed on or
before the planned radar works completion date.

(7)     In this section “the primary date” means—

(a)   in a case within section 32LE(a)(i) or (b)(i) and (ii), 31 March
2016;

(b)   in a case within section 32LG(a)(i) and (ii) or (b)(i) to (iii), 31
March 2017;

(c)   in a case within section 32LI(a)(i) and (ii) or (b)(i) to (iii), 31
December 2017.”

(3)     In section 32M (interpretation of sections 32 to 32M)—

(a)   in subsection (1), for “32LB” substitute “32LL”;

(b)   at the appropriate places insert the following definitions—

““accredited”, in relation to an onshore wind
generating station, means accredited by the
Authority as a generating station which is capable of
generating electricity from renewable sources; and
“accredit” and “accreditation” are to be construed
accordingly;”;

““additional capacity”, in relation to an onshore wind
generating station, means any generating capacity
which does not form part of the original capacity of
the station;”;

““commissioned”, in relation to an onshore wind
generating station, means having completed such
procedures and tests in relation to the station as
constitute, at the time they are undertaken, the usual
industry standards and practices for commissioning
that type of generating station in order to
demonstrate that it is capable of commercial
operation;”;

““generating station developer”, in relation to an
onshore wind generating station or additional
capacity, means—

(a)   the operator of the station, or

(b)   a person who arranged for the construction
of the station or additional capacity;”;

““grid works”, in relation to an onshore wind
generating station, means—

(a)   the construction of a connection between the
station and a transmission or distribution
system for the purpose of enabling electricity
to be conveyed from the station to the
system, or

(b)   the carrying out of modifications to a
connection between the station and a
transmission or distribution system for the
purpose of enabling an increase in the
amount of electricity that can be conveyed
over that connection from the station to the
system;”;

““licensed network operator” means a distribution
licence holder or a transmission licence holder;”;

““network operator” means a distribution exemption
holder, a distribution licence holder or a
transmission licence holder;”;

““onshore wind generating station” has the meaning
given by section 32LC(2);”;

““original capacity”, in relation to an onshore wind
generating station, means the generating capacity of
the station as accredited;”;

““radar works” means—

(a)   the construction of a radar station,

(b)   the installation of radar equipment,

(c)   the carrying out of modifications to a radar
station or radar equipment, or

(d)   the testing of a radar station or radar
equipment;”;

““relevant developer”, in relation to an onshore wind
generating station or additional capacity, means a
person who—

(a)   applied for planning permission for the
station or additional capacity,

(b)   arranged for grid works to be carried out in
relation to the station or additional capacity,

(c)   arranged for the construction of any part of
the station or additional capacity,

(d)   constructed any part of the station or
additional capacity, or

(e)   operates, or proposes to operate, the
station;”.”

Clause 68

LORD BOURNE OF ABERYSTWYTH

 

Page 39, line 34, leave out “This Part comes” and insert “Sections 66, (Onshore wind
power: circumstances in which certificates may be issued after 31 March 2016
) and this
Part come”

Prepared 9th October 2015