Scotland Bill (HL Bill 100)

Scotland BillPage 59

target that is represented by the part of it apportioned to measures
carried out in Scotland.

(7) In subsection (6)

(a) “compliance costs” means the total costs to gas suppliers of
5complying with carbon emissions reduction obligations that, in
relation to any period, are imposed by order under section
33BC, and

(b) “costs relating to Scotland” means the total costs to gas
suppliers of complying with obligations that, in relation to the
10same period, are imposed in relation to Scotland.

(8) The Scottish Ministers may not make an order under section 33BC
unless—

(a) they have consulted the Secretary of State about the proposed
order, and

(b) 15the Secretary of State has agreed to the order being made.

(9) Subsection (1) does not prevent the Secretary of State from making
provision under—

(a) section 33BC(1A), (3), (5)(a) or (7)(a), or

(b) section 33BC(2A) where an overall carbon emissions reduction
20target has not been apportioned under section 103(2A) of the
Utilities Act 2000.

(10) Subsection (1) does not prevent the Secretary of State from making any
other provision under section 33BC or from varying or revoking an
order made by the Scottish Ministers under that section—

(a) 25with the agreement of the Scottish Ministers, or

(b) without their agreement, if subsection (11) applies.

(11) This subsection applies if it appears to the Secretary of State, in the case
of obligations imposed in relation to Scotland (the “Scottish
obligations”), taking into account any provision made by the Scottish
30Ministers, that the Scottish obligations are, alone or in conjunction with
obligations imposed or to be imposed in relation to England and Wales,
likely to—

(a) cause detriment to the United Kingdom,

(b) adversely affect the ability of the United Kingdom to comply
35with an international agreement or arrangement in relation to
climate change or energy efficiency, or

(c) result in costs incurred by suppliers that are not broadly
equivalent in relation to England and Wales and in relation to
Scotland,

40and the Scottish Ministers have failed to comply with a request made to
them by the Secretary of State to make modifications specified by the
Secretary of State.

(12) In determining for the purposes of subsection (11), whether detriment
is likely to be caused to the United Kingdom, considerations that the
45Secretary of State may take into account include the costs imposed on
suppliers by virtue of obligations imposed or to be imposed by the
Secretary of State under section 33BC or any provision made by the
Scottish Ministers under that section.

Scotland BillPage 60

(13) A request by the Secretary of State to the Scottish Ministers for the
purposes of subsection (11)

(a) must be in writing;

(b) must specify only modifications that appear to the Secretary of
5State to be necessary to prevent the effect mentioned in
subsection (11)(a), (b) or (c);

(c) must specify the time within which the modifications are to be
made, which must not be less than 2 months from the date of the
request.”

(3) 10After section 33BD (promotion of reduction in home-heating costs) insert—

33BDA Scottish Ministers’ promotion of reductions in home-heating costs:
gas suppliers

(1) Where the Secretary of State under section 33BD imposes on gas
suppliers obligations to achieve a target within a specified period, the
15power to make orders under that section is exercisable by the Scottish
Ministers for the purposes of those obligations imposed in relation to
Scotland and not, except as provided by subsections (9) and (10), by the
Secretary of State.

(2) An obligation is imposed in relation to Scotland to the extent that
20measures to meet that obligation may be carried out in Scotland
(disregarding any power to elect under section 103A of the Utilities Act
2000).

(3) For the purposes of the exercise by the Scottish Ministers of the power
to make an order under section 33BD, that section applies with the
25following modifications—

(a) for subsection (1) there is substituted a power by order to
specify how gas suppliers may meet their obligations to achieve
the home-heating cost reduction target through measures
carried out in Scotland;

(b) 30subsection (3) is omitted;

(c) subsections (3), (5)(a), (7)(a) and (10A) of section 33BC as
applied by subsection (4) are omitted;

(d) in subsection (2)(a) at the beginning of sub-paragraph (ii) there
is inserted “where the Secretary of State has apportioned the
35overall home-heating cost reduction target under section
103A(3A) of the Utilities Act 2000, and”;

(e) in section 33BC(11) as applied by subsection (4) “Citizens
Advice” and “gas transporters” is omitted;

(f) in section 33BC(12) as applied by subsection (4) for the words
40from “shall not be made” to the end is substituted “is subject to
the affirmative procedure”;

(g) in section 33BC(12A) as applied by subsection (4) for the words
from “shall be subject to” to the end is substituted “is subject to
the negative procedure”;

(h) 45for “Secretary of State” in each place (including any references
in section 33BC that apply by virtue of subsection (4)), is
substituted “Scottish Ministers”.

Scotland BillPage 61

(4) The power of the Scottish Ministers under section 33BD does not
include power to make provision in relation to the subject-matter of
sections 88 to 90 of the Energy Act 2008 (smart meters).

(5) Where an overall home-heating cost reduction target has been
5apportioned under section 103A(3A) of the Utilities Act 2000, the
Scottish Ministers must—

(a) when making any order under section 33BD, comply with the
duty in subsection (6), and

(b) if the Secretary of State amends any order under that section,
10make any provision they think necessary, in consequence of the
amendment, to comply with that duty.

(6) The duty of the Scottish Ministers where subsection (5)(a) or (b) applies
is to exercise their powers under section 33BD (subject to subsection (8))
in the way they think most likely to secure that the proportion of
15compliance costs that is represented by costs relating to Scotland is no
greater than the proportion of the overall home-heating cost reduction
target that is represented by the part of it apportioned to measures
carried out in Scotland.

(7) In subsection (6)

(a) 20“compliance costs” means the total costs to gas suppliers of
complying with home-heating cost reduction obligations that,
in relation to any period, are imposed by order under section
33BD, and

(b) “costs relating to Scotland” means the total costs to gas
25suppliers of complying with obligations that, in relation to the
same period, are imposed in relation to Scotland.

(8) The Scottish Ministers may not make an order under section 33BD
unless—

(a) they have consulted the Secretary of State about the proposed
30order, and

(b) the Secretary of State has agreed to the order being made.

(9) Subsection (1) does not prevent the Secretary of State from making
provision under—

(a) section 33BD(3),

(b) 35section 33BC(3), (5)(a) or (7)(a) as applied by section 33BD(4), or

(c) section 33BD(2)(a) where an overall home-heating cost
reduction target has not been apportioned under section
103A(3A) of the Utilities Act 2000.

(10) Subsection (1) does not prevent the Secretary of State from making any
40other provision under section 33BD or from varying or revoking an
order made by the Scottish Ministers under that section—

(a) with the agreement of the Scottish Ministers, or

(b) without their agreement, if subsection (11) applies.

(11) This subsection applies if it appears to the Secretary of State, in the case
45of obligations imposed in relation to Scotland (the “Scottish
obligations”), taking into account any provision made by the Scottish
Ministers, that the Scottish obligations are, alone or in conjunction with
obligations imposed or to be imposed in relation to England and Wales,
likely to—

Scotland BillPage 62

(a) cause detriment to the United Kingdom,

(b) adversely affect the ability of the United Kingdom to comply
with an international agreement or arrangement in relation to
climate change or energy efficiency, or

(c) 5result in costs incurred by suppliers that are not broadly
equivalent in relation to England and Wales and in relation to
Scotland,

and the Scottish Ministers have failed to comply with a request made to
them by the Secretary of State to make modifications specified by the
10Secretary of State.

(12) In determining for the purposes of subsection (11), whether detriment
is likely to be caused to the United Kingdom, considerations that the
Secretary of State may take into account include the costs imposed on
suppliers by virtue of obligations imposed or to be imposed by the
15Secretary of State under section 33BD or any provision made by the
Scottish Ministers under that section.

(13) A request by the Secretary of State to the Scottish Ministers for the
purposes of subsection (11)—

(a) must be in writing;

(b) 20must specify only modifications that appear to the Secretary of
State to be necessary to prevent the effect mentioned in
subsection (11)(a), (b) or (c);

(c) must specify the time within which the modifications are to be
made, which must not be less than 2 months from the date of the
25request.”

(4) The Electricity Act 1989 is amended as follows.

(5) After section 41A (promotion of reduction in carbon emissions) insert—

41AA Scottish Ministers’ promotion of reductions in carbon emissions:
electricity suppliers

(1) 30Where the Secretary of State under section 41A imposes on electricity
suppliers obligations to achieve a target within a specified period, the
power to make orders under that section is exercisable by the Scottish
Ministers for the purposes of those obligations imposed in relation to
Scotland and not, except as provided by subsections (9) and (10), by the
35Secretary of State.

(2) An obligation is imposed in relation to Scotland to the extent that
measures to meet that obligation may be carried out in Scotland
(disregarding any power to elect under section 103 of the Utilities Act
2000).

(3) 40For the purposes of the exercise by the Scottish Ministers of the power
to make an order under section 41A, that section applies with the
following modifications—

(a) for subsection (1) there is substituted a power by order to
specify how electricity suppliers may meet their obligations to
45achieve the carbon emissions reduction target through
measures carried out in Scotland;

(b) subsections (1A), (3), (5)(a), (7)(a) and (10A) are omitted;

Scotland BillPage 63

(c) in subsection (2A) at the beginning of paragraph (b) there is
inserted “where the Secretary of State has apportioned the
overall carbon emissions reduction target under section 103(2A)
of the Utilities Act 2000, and”

(d) 5in subsection (11) “Citizens Advice” and “electricity
distributors” is omitted;

(e) in subsection (12), for the words from “shall not be made” to the
end is substituted “is subject to the affirmative procedure”;

(f) in subsection (12A) for the words from “shall be subject to” to
10the end is substituted “is subject to the negative procedure”.

(g) for “Secretary of State” in each place is substituted with
“Scottish Ministers”.

(4) The power of the Scottish Ministers under section 41A does not include
power to make provision in relation to the subject-matter of sections 88
15to 90 of the Energy Act 2008 (smart meters).

(5) Where an overall carbon emissions reduction target has been
apportioned under section 103(2A) of the Utilities Act 2000, the Scottish
Ministers must—

(a) when making any order under section 41A, comply with the
20duty in subsection (6), and

(b) if the Secretary of State amends any order under that section,
make any provision they think necessary, in consequence of the
amendment, to comply with that duty.

(6) The duty of the Scottish Ministers where subsection (5)(a) or (b) applies
25is to exercise their powers under section 41A (subject to subsection (8))
in the way they think most likely to secure that the proportion of
compliance costs that is represented by costs relating to Scotland is no
greater than the proportion of the overall carbon emissions reduction
target that is represented by the part of it apportioned to measures
30carried out in Scotland.

(7) In subsection (6)

(a) “compliance costs” means the total costs to electricity suppliers
of complying with carbon emissions reduction obligations that,
in relation to any period, are imposed by order under section
3541A, and

(b) “costs relating to Scotland” means the total costs to electricity
suppliers of complying with obligations that, in relation to the
same period, are imposed in relation to Scotland.

(8) The Scottish Ministers may not make an order under section 41A
40unless—

(a) they have consulted the Secretary of State about the proposed
order, and

(b) the Secretary of State has agreed to the order being made.

(9) Subsection (1) does not prevent the Secretary of State from making
45provision under—

(a) section 41A(1A), (3), (5)(a) or (7)(a), or

(b) section 41A(2A) where an overall carbon emissions reduction
target has not been apportioned under section 103(2A) of the
Utilities Act 2000.

Scotland BillPage 64

(10) Subsection (1) does not prevent the Secretary of State from making any
other provision under section 41A or from varying or revoking an
order made by the Scottish Ministers under that section—

(a) with the agreement of the Scottish Ministers, or

(b) 5without their agreement, if subsection (11) applies.

(11) This subsection applies if it appears to the Secretary of State, in the case
of obligations imposed in relation to Scotland (the “Scottish
obligations”), taking into account any provision made by the Scottish
Ministers, that the Scottish obligations are, alone or in conjunction with
10obligations imposed or to be imposed in relation to England and Wales,
likely to—

(a) cause detriment to the United Kingdom,

(b) adversely affect the ability of the United Kingdom to comply
with an international agreement or arrangement in relation to
15climate change or energy efficiency, or

(c) result in costs incurred by suppliers that are not broadly
equivalent in relation to England and Wales and in relation to
Scotland,

and the Scottish Ministers have failed to comply with a request made to
20them by the Secretary of State to make modifications specified by the
Secretary of State.

(12) In determining for the purposes of subsection (11), whether detriment
is likely to be caused to the United Kingdom, considerations that the
Secretary of State may take into account include the costs imposed on
25suppliers by virtue of obligations imposed or to be imposed by the
Secretary of State under section 41A or any provision made by the
Scottish Ministers under that section.

(13) A request by the Secretary of State to the Scottish Ministers for the
purposes of subsection (11)—

(a) 30must be in writing;

(b) must specify only modifications that appear to the Secretary of
State to be necessary to prevent the effect mentioned in
subsection (11)(a), (b) or (c);

(c) must specify the time within which the modifications are to be
35made, which must not be less than 2 months from the date of the
request.”

(6) After section 41B (promotion of reduction in home-heating costs) insert—

41BA Scottish Ministers’ promotion of reductions in home-heating costs:
electricity suppliers

(1) 40Where the Secretary of State under section 41B imposes on electricity
suppliers obligations to achieve a target within a specified period, the
power to make orders under that section is exercisable by the Scottish
Ministers for the purposes of those obligations imposed in relation to
Scotland and not, except as provided by subsections (9) and (10), by the
45Secretary of State.

(2) An obligation is imposed in relation to Scotland to the extent that
measures to meet that obligation may be carried out in Scotland
(disregarding any power to elect under section 103A of the Utilities Act
2000).

Scotland BillPage 65

(3) For the purposes of the exercise by the Scottish Ministers of the power
to make an order under section 41B, that section applies with the
following modifications—

(a) for subsection (1) there is substituted a power by order to
5specify how electricity suppliers may meet their obligations to
achieve the home-heating cost reduction target through
measures carried out in Scotland;

(b) subsection (3) is omitted;

(c) subsections (3), (5)(a), (7)(a) and (10A) of section 41A as applied
10by subsection (4) are omitted;

(d) in subsection (2)(a) at the beginning of sub-paragraph (ii) there
is inserted “where the Secretary of State has apportioned the
overall home-heating costs reduction target under section
103A(3A) of the Utilities Act 2000, and”;

(e) 15in section 41A(11) as applied by subsection (4) “Citizens
Advice” and “electricity distributors” is omitted;

(f) in section 41A(12) as applied by subsection (4) for the words
from “shall not be made” to the end is substituted “is subject to
the affirmative procedure”;

(g) 20in section 41A(12A) as applied by subsection (4) for the words
from “shall be subject to” to the end is substituted “is subject to
the negative procedure”;

(h) for “Secretary of State” in each place (including any references
in section 41A that apply by virtue of subsection (4)), is
25substituted “Scottish Ministers”.

(4) The power of the Scottish Ministers under section 41B does not include
power to make provision in relation to the subject-matter of sections 88
to 90 of the Energy Act 2008 (smart meters).

(5) Where an overall home-heating cost reduction target has been
30apportioned under section 103A(3A) of the Utilities Act 2000, the
Scottish Ministers must—

(a) when making any order under section 41B, comply with the
duty in subsection (6), and

(b) if the Secretary of State amends any order under that section,
35make any provision they think necessary, in consequence of the
amendment, to comply with that duty.

(6) The duty of the Scottish Ministers where subsection (5)(a) or (b) applies
is to exercise their powers under section 41B (subject to subsection (8))
in the way they think most likely to secure that the proportion of
40compliance costs that is represented by costs relating to Scotland is no
greater than the proportion of the overall home-heating cost reduction
target that is represented by the part of it apportioned to measures
carried out in Scotland.

(7) In subsection (6)

(a) 45“compliance costs” means the total costs to electricity suppliers
of complying with home-heating cost reduction obligations
that, in relation to any period, are imposed by order under
section 41B, and

Scotland BillPage 66

(b) “costs relating to Scotland” means the total costs to electricity
suppliers of complying with obligations that, in relation to the
same period, are imposed in relation to Scotland.

(8) The Scottish Ministers may not make an order under section 41B
5unless—

(a) they have consulted the Secretary of State about the proposed
order, and

(b) the Secretary of State has agreed to the order being made.

(9) Subsection (1) does not prevent the Secretary of State from making
10provision under—

(a) section 41B(3),

(b) section 41A(3), (5)(a) or (7)(a) as applied by section 41B(4), or

(c) section 41B(2)(a) where an overall home-heating cost reduction
target has not been apportioned under section 103A(3A) of the
15Utilities Act 2000.

(10) Subsection (1) does not prevent the Secretary of State from making any
other provision under section 41B or from varying or revoking an order
made by the Scottish Ministers under that section—

(a) with the agreement of the Scottish Ministers, or

(b) 20without their agreement, if subsection (11) applies.

(11) This subsection applies if it appears to the Secretary of State, in the case
of obligations imposed in relation to Scotland (the “Scottish
obligations”), taking into account any provision made by the Scottish
Ministers, that the Scottish obligations are, alone or in conjunction with
25obligations imposed or to be imposed in relation to England and Wales,
likely to—

(a) cause detriment to the United Kingdom,

(b) adversely affect the ability of the United Kingdom to comply
with an international agreement or arrangement in relation to
30climate change or energy efficiency, or

(c) result in costs incurred by suppliers that are not broadly
equivalent in relation to England and Wales and in relation to
Scotland,

and the Scottish Ministers have failed to comply with a request made to
35them by the Secretary of State to make modifications specified by the
Secretary of State.

(12) In determining for the purposes of subsection (11), whether detriment
is likely to be caused to the United Kingdom, considerations that the
Secretary of State may take into account include the costs imposed on
40suppliers by virtue of obligations imposed or to be imposed by the
Secretary of State under section 41B or any provision made by the
Scottish Ministers under that section.

(13) A request by the Secretary of State to the Scottish Ministers for the
purposes of subsection (11)—

(a) 45must be in writing;

(b) must specify only modifications that appear to the Secretary of
State to be necessary to prevent the effect mentioned in
subsection (11)(a), (b) or (c);

Scotland BillPage 67

(c) must specify the time within which the modifications are to be
made, which must not be less than 2 months from the date of the
request.”

(7) Where an amendment made by this section imposes a requirement to consult
5or to obtain consent, the requirement may be satisfied by consultation
undertaken or consent obtained before this section comes into force.

59 Apportionment of targets

(1) The Utilities Act 2000 is amended as follows.

(2) Section 103 (overall carbon emissions reduction targets) is amended as follows.

(3) 10After subsection (2) insert—

(2A) Where an overall target applies in relation to a section mentioned in
subsection (1) the order specifying the target may make provision for
the target to be apportioned between—

(a) measures carried out in England and Wales, and

(b) 15measures carried out in Scotland,

by reference to such criteria as may be specified in the order.”

(4) After subsection (3) insert—

(3A) Where a target is apportioned under subsection (2A) for the purposes
of a section, an order under that section may include provision for a
20supplier to elect, subject to any conditions specified in the order,—

(a) that, for the purposes of meeting the carbon emissions
reduction target under an obligation imposed by the order in
relation to England and Wales, a measure carried out in
Scotland is to be treated instead as carried out in England and
25Wales;

(b) that, for the purposes of meeting the carbon emissions
reduction target under an obligation imposed by the order in
relation to Scotland, a measure carried out in England and
Wales is to be treated instead as carried out in Scotland.

(3B) 30An order under subsection (2A) may not make provision under
subsection (3A)(b) unless the Scottish Ministers have agreed to such
provision being made.”

(5) Section 103A (overall home-heating cost reduction targets) is amended as
follows.

(6) 35After subsection (3) insert—

(3A) Where an overall target applies in relation to a section mentioned in
subsection (1) the order specifying the target may make provision for
the target to be apportioned between—

(a) measures carried out in England and Wales, and

(b) 40measures carried out in Scotland,

by reference to such criteria as may be specified in the order.”

Scotland BillPage 68

(7) After subsection (4) insert—

(4A) Where a target is apportioned under subsection (3A) for the purposes
of a section, an order under that section may include provision for a
supplier to elect, subject to any conditions specified in the order,—

(a) 5that, for the purposes of meeting the home-heating cost
reduction target under an obligation imposed by the order in
relation to England and Wales, a measure carried out in
Scotland is to be treated instead as carried out in England and
Wales;

(b) 10that, for the purposes of meeting the home-heating cost
reduction target under an obligation imposed by the order in
relation to Scotland, a measure carried out in England and
Wales is to be treated instead as carried out in Scotland.

(4B) An order under subsection (3A) may not make provision under
15subsection (4A)(b) unless the Scottish Ministers have agreed to such
provision being made.”

(8) Section 103B (power to require information) is amended as follows.

(9) In the heading after “Secretary of State” insert “and the Scottish Ministers”.

(10) In subsection (1) at the beginning insert “Subject to subsection (1A),” and after
20that subsection insert—

(1A) The Scottish Ministers may exercise the power in subsection (1)(b) and
(c) in order to require information to review the operation of any carbon
emissions reduction order or home-heating cost reduction order made
by the Scottish Ministers and to establish and maintain a measures
25record in relation to such orders.”

(11) In subsection (2)—

(a) after the first “Secretary of State” insert “or the Scottish Ministers”, and

(b) after the second “Secretary of State” insert “and the Scottish Ministers”.

(12) After subsection (6) insert—

(6A) 30Information obtained by virtue of subsection (1A) may be disclosed by
the Scottish Ministers—

(a) to the Secretary of State;

(b) to the Welsh Ministers for the purpose of enabling them to
review the operation and effect in Wales of a carbon emissions
35reduction order or home-heating cost reduction order.”

(13) In section 105 (general restrictions on disclosure of information), in subsection
(3) after paragraph (a) insert—

(aza) it is made for the purpose of facilitating the performance by a
body specified as the Administrator under an order under
40section 33BC or 33BD of the Gas Act 1986 or under section 41A
or 41B of the Electricity Act 1989 of its functions under that
section and the order;”.