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Energy Efficiency Bill

This is the text of the Energy Efficiency Bill, as presented to the House of Commons on 18 June 1997.

Energy Efficiency Bill
1.Energy efficiency surveys of dwellings.
2.Guidance issued by the Secretary of State.
4.Short title, commencement and extent.





Make further provision for energy efficiency.

BE IT ENACTED by the Queen's most Excellent Majesty, by and with the advice and consent of the Lords Spiritual and Temporal, and Commons, in this present Parliament assembled, and by the authority of the same, as follows:-

Energy efficiency surveys of dwellings.     1. - (1) Each mortgage lender, as part of any survey or valuation required by it and in accordance with guidance given by the Secretary of State, shall-
    (a) provide the borrower with information on the energy efficiency of the dwelling to which the survey or valuation relates and practicable means of improving it; and
    (b) charge the borrower no more than the costs reasonably incurred in so doing.
      (2) This section shall not apply if the dwelling is less than three years old at the time of the survey or valuation or if the borrower has equivalent information that has been prepared within the previous twelve months.
      (3) For the purposes of this section measures which are applicable to the dwelling concerned and where the cost of installation will be repaid through energy savings or other benefits within a reasonable period of time shall constitute practicable means.
Guidance issued by the Secretary of State.     2. - (1) Within twelve months of the passing of this Act the Secretary of State shall, after consulting such persons as he considers appropriate, issue guidance in accordance with section 1 above.
      (2) Such guidance shall include-
    (a) the information to be provided, including-
      (i) a list of improvements which might be carried out to improve the energy efficiency of the dwelling in question (which may include guidance on any particular categories of improvement),
      (ii) an indicative range of costs and an indicative payback time for installing each of the energy efficiency improvements identified under paragraph (a) above in a dwelling broadly of the size and type for which the mortgage is granted, and
      (iii) an energy rating of the dwelling in question; and
    (b) a requirement on the mortgage lender to provide the information in a cost-effective way and within a specified time limit, and in any case not later than the actual draw down of the mortgage.
Interpretation.     3. In this Act-
    "dwelling" means a building or part of a building occupied or intended to be occupied as a separate dwelling and for the avoidance of doubt it is hereby stated that this does not include the communal parts of blocks of flats, caravans, mobile homes or houseboats or the commercial parts of any property comprising a mixed commercial and residential property;
    "energy rating" means a calculation of the energy rating of a dwelling by means of a procedure approved by the Secretary of State;
    "mortgage" means any loan secured wholly or partly against a dwelling or dwellings wholly or partly for the purpose of assisting with or enabling the purchase or remortgage of that dwelling;
    "mortgage lender" means any building society, clearing bank or other person but does not include an individual or individuals acting as such or a family trust;
    "survey or valuation" means any physical inspection of the property required by a mortgage lender for the purpose of providing a mortgage valuation report.
Short title, commencement and extent.     4. - (1) This Act may be cited as the Energy Efficiency Act 1998.
      (2) This Act shall come into force on a day to be appointed by the Secretary of State which shall be not later than twelve months after receiving Royal Assent.
      (3) The Secretary of State shall have the power to appoint different days for different purposes.
      (4) Any commencement order may contain such supplementary or transitional provisions as the Secretary of State considers necessary.
      (5) This Act shall apply to Northern Ireland.

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Prepared 3 February 1998