Utilities Bill - continued        House of Commons
Electricity from renewable sources - continued

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Green certificates.     52. After section 32A of the 1989 Act there is inserted-
"Green certificates.     32B. - (1) An order under section 32 may provide for the Authority to issue from time to time, in accordance with such criteria (if any) as are specified in the order, a certificate to the operator of a generating station.
    (2) The certificate is to certify-
    (a) that the generating station has generated from renewable sources the amount of electricity stated in the certificate; and
    (b) that it has been supplied to customers in Great Britain (or the part of Great Britain stated in the certificate).
      (3) If an electricity supplier produces a certificate to the Authority, it is to count as evidence sufficient for the purposes of subsection (3) of section 32 that the supplier has discharged so much of the renewables obligation imposed by the order under that subsection as is evidenced by the certificate produced."
Alternative way of discharging renewables obligation: payments.     53. After section 32B of the 1989 Act there is inserted-
"Payment as alternative to complying with order under section 32.     32C. - (1) An order under section 32 may provide that instead of producing evidence under section 32(3), an electricity supplier may discharge (in whole or in part) its renewables obligation (or its obligation in relation to a particular period) by making a payment to the Authority.
    (2) The order may make provision as to how much by way of payment is to be treated as discharging the obligation under the order to demonstrate the supply of any amount of electricity specified in the order.
      (3) The Authority must pay the amounts received to electricity suppliers in accordance with a system of allocation specified in an order made by the Secretary of State.
      (4) The system of allocation specified in an order under subsection (3) may provide for payments to specified categories of electricity supplier only."
Modification and abolition of fossil fuel levy.     54. - (1) In section 33 of the 1989 Act (which provides for the fossil fuel levy), in subsection (5), for paragraph (b) there is substituted-
    "(b) a reference price specified in or determined in accordance with regulations under this section;".
      (2) Section 33 of the 1989 Act shall cease to have effect.
Transitional and saving provisions.     55. - (1) The Secretary of State may by order made by statutory instrument make such transitional and saving provision as he considers necessary or expedient for the purpose of-
    (a) saving orders under section 32 of the 1989 Act as that section had effect immediately before the coming into force of section 50;
    (b) dealing with arrangements (as mentioned in that section) made pursuant to such an order;
    (c) requiring the continued payment of any fossil fuel levy payable by virtue of section 33 of the 1989 Act (whether by or to an electricity supplier) despite the repeal of that section.
      (2) An order under this section may, in particular, provide for section 32 or 33 of the 1989 Act (as they had effect immediately before the coming into force of section 50 or 54(2)) to continue to have effect in relation to any of the things mentioned in paragraphs (a) to (c) of subsection (1) with modifications specified in the order.
      (3) A statutory instrument containing an order under this section shall be subject to annulment in pursuance of a resolution of either House of Parliament.
Modification of licences: electricity trading arrangements.     56. After section 15 of the 1989 Act (modification of licences by order under other enactments) there is inserted-
"Licence modifications relating to new electricity trading arrangements.     15A. - (1) The Secretary of State may, in accordance with this section, modify-
    (a) the conditions of any licence granted under section 6; or
    (b) any standard conditions of licences of any type,
  where he considers it necessary or expedient to do so for the purpose of implementing, or facilitating the effective operation of, new arrangements relating to the trading of electricity.
      (2) Without prejudice to the generality of subsection (1), the modifications which may be made under this section include modifications relating to consequential or transitional matters (including matters connected with the transmission or distribution of electricity).
      (3) Before making modifications under this section the Secretary of State shall consult the holder of the licence and such other persons as he considers appropriate.
      (4) Any consultation undertaken by the Secretary of State before the commencement of this section shall be as effective, for the purposes of subsection (3), as if undertaken after that commencement.
      (5) In determining the manner in which to exercise the power under this section, the Secretary of State shall have regard to the matters to which the Authority is required to have regard when determining the conditions of a licence.
      (6) The power of the Secretary of State under this section may not be exercised after the end of the period of two years beginning with the commencement of this section."
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