Energy Bill [HL]

House of Commons

Session 2003 - 04
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Other Bills before Parliament

Energy Bill [HL]

Energy Bill [HL]
Part 1 — UK Energy Strategy: Security and Integrity of Supply
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[NOTE: The words marked in bold type were inserted by the Lords to avoid
questions of privilege.]
A
Bill
To
make provision for the decommissioning and cleaning up of installations and
sites used for, or contaminated by, nuclear activities; to make provision
relating to the civil nuclear industry; to make provision about radioactive
waste; to make provision for the development, regulation and encouragement
of the use of renewable energy sources; to make further provision in
connection with the regulation of the gas and electricity industries; to make
provision for the imposition of charges in connection with the carrying out of
the Secretary of State’s functions relating to energy matters; to make provision
for giving effect to international agreements relating to pipelines and offshore
installations; and for connected purposes.
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:—
Part 1
UK Energy Strategy: Security and Integrity of Supply
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Security and integrity of supply
The Secretary of State shall have a duty to ensure the integrity and security of
electricity and gas supply.
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2
Annual reports under section 1 of the Sustainable Energy Act 2003
(1)
In addition to the matters specified to be included in the annual reports
required under section 1 of the Sustainable Energy Act 2003 (c. 30), the reports
shall contain information on the development of new energy sources
including, but without prejudice to the generality of those words, energy
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derived from—
(a)
clean coal technology;
(b)
biomass;
(c)
biofuels;

Bill 93 53/3

Energy Bill [HL]
Part 2 — The Civil Nuclear Industry
Chapter 1 — Nuclear decommissioning
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(d)
fuel cells;
(e)
photovoltaics;
(f)
wave and tidal generation;
(g)
hydrogeneration;
(h)
microgeneration; and
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(i)
geothermal sources.
(2)
The information to be given shall describe any research, development and
demonstration work done in the reporting period on each of the energy sources
covered.
(3)
The annual reports shall set out what is being done by the Government, by
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government agencies, by UK research establishments, by UK universities and
by industry to ensure that the UK retains and expands, if necessary, the
scientific and engineering expertise and the resources to develop effectively
sources of energy enabling the UK to avoid undue reliance on imports and if
the decision is taken to develop any other energy source or technology,
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including nuclear, the UK will have the ability to do so.
(4)
The annual reports shall set out what is being done by the Government, by
government agencies, by UK research establishments, by UK universities and
by industry to ensure demand is reduced and efficiency is increased in UK
energy supply.
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(5)
Information given under this section shall exclude any information for which
commercial confidentiality, within the meaning of section 43 of the Freedom of
Information Act 2000 (c. 36), is claimed and upheld.
(6)
This section shall apply to any annual report published after the first day
appointed by the Secretary of State under section 194(2) of this Act.
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Annual report on energy efficiency
The Secretary of State shall publish in such form as he sees fit an annual report
setting out what steps he has taken and proposes to take to secure carbon
savings from domestic energy efficiency of 5MtC per annum by 2010 and a
further 4MtC per annum by 2020.
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Part 2
The Civil Nuclear Industry
Chapter 1
Nuclear decommissioning
Establishment of NDA
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The Nuclear Decommissioning Authority
(1)
There shall be a body corporate to be known as the Nuclear Decommissioning
Authority (“the NDA”).
(2)
The NDA is not to be treated—

Energy Bill [HL]
Part 2 — The Civil Nuclear Industry
Chapter 1 — Nuclear decommissioning
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(a)
except so far as necessary for the purposes of its function under section
10(2), as performing any duty or exercising any power on behalf of the
Crown; or
(b)
as enjoying any status, immunity or privilege of the Crown;

and the NDA’s property is not to be regarded as property of the Crown, or as
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held on behalf of the Crown.
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Constitution of NDA
(1)
The NDA—
(a)
shall consist of not fewer than seven and not more than thirteen
members; and
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(b)
shall have a membership comprising both non-executive members and
executive members.
(2)
The non-executive members shall be—
(a)
a chairman appointed by the Secretary of State; and
(b)
a number of other persons appointed by the Secretary of State (after
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consultation with the chairman);

and (subject to subsection (1)) it is for the Secretary of State to determine how
many non-executive members there are to be in addition to the chairman.
(3)
The executive members shall be—
(a)
a person appointed by the non-executive members to be the NDA’s
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chief executive; and
(b)
the other persons (if any) appointed by them (after consultation with
the chief executive) to be executive members in addition to the chief
executive;

and it is for the non-executive members to determine (subject to subsection (8))
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whether there are to be executive members in addition to the chief executive,
and (if so) how many.
(4)
The approval of the Secretary of State is required for the appointment of the
chief executive.
(5)
Before—
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(a)
appointing a person to be the chairman or otherwise to be a non-
executive member of the NDA, or
(b)
approving the appointment of a person to be the chief executive,

the Secretary of State must consult the Scottish Ministers.
(6)
Subsection (5) may be satisfied by consultation that took place wholly or partly
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before the commencement of this section.
(7)
If there are executive members in addition to the chief executive, each must be
a member of the staff of the NDA.
(8)
Where the Secretary of State so provides by a direction to the NDA, the non-
executive members must secure that the number of executive members in
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addition to the chief executive—
(a)
is not less than the minimum set by the direction; and
(b)
does not exceed the maximum so set;

and the direction must not set a maximum of more than three.

Energy Bill [HL]
Part 2 — The Civil Nuclear Industry
Chapter 1 — Nuclear decommissioning
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(9)
The Secretary of State must exercise his powers under this section to secure, so
far as practicable, that the number of executive members is at all times less than
the number of non-executive members.
(10)
Schedule 1 (which contains further provision about the constitution, staffing
and proceedings of the NDA) has effect; and subsections (1) to (9) have effect
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subject to paragraph 4 of that Schedule.
Principal function of NDA
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Designated responsibilities
(1)
The principal function of the NDA shall be to have responsibility for
securing—
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(a)
the operation, pending the commencement of their decommissioning,
of designated nuclear installations;
(b)
the decommissioning of those and other designated nuclear
installations;
(c)
the cleaning-up of designated nuclear sites;
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(d)
the operation of designated facilities for treating, storing, transporting
or disposing of hazardous material;
(e)
the treatment, storage, transportation and disposal, in designated
circumstances, of hazardous material; and
(f)
the decommissioning of designated installations comprised in NDA
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facilities.
(2)
The responsibilities of the NDA under this section are responsibilities to be
discharged by the performance of its duties under sections 18 and 19.
(3)
A designation for the purposes of this section—
(a)
of an installation, site or facility, and
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(b)
of the circumstances in which the NDA is to have responsibility for
securing the treatment, storage, transportation or disposal of matter or
waste,

has (subject to section 9) to be in the form of a direction given by the Secretary
of State to the NDA.
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(4)
A direction must not give the NDA a responsibility mentioned in this section
in relation to an installation, site or facility unless the person with control of it
at the time when the direction is given is—
(a)
a Crown appointee;
(b)
the UKAEA;
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(c)
a publicly owned company;
(d)
the NDA itself; or
(e)
a person who has consented to the giving of the direction.
(5)
A direction designating an installation, site or facility must specify the
paragraph or paragraphs of subsection (1) for the purposes of which it is being
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designated.
(6)
But, except in so far as the direction containing the designation otherwise
provides, the designation of a principal nuclear site for cleaning-up is to have
effect for the purposes of this Chapter as including a designation, as an

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Part 2 — The Civil Nuclear Industry
Chapter 1 — Nuclear decommissioning
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installation to be decommissioned, of every installation situated in or on that
site.
(7)
The Secretary of State must—
(a)
lay before Parliament a copy of every direction containing a
designation;
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(b)
publish the contents of every such direction in the manner which, in his
opinion, is most appropriate for bringing it to the attention of persons
likely to be affected by it; and
(c)
send a copy of every direction giving the NDA a responsibility in
relation to an installation, site or facility to the person with control of
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that installation, site or facility.
(8)
The Scottish Ministers must lay before the Scottish Parliament a copy of every
direction which by virtue of section 9 is given jointly by them and the Secretary
of State.
(9)
The Secretary of State may exclude—
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(a)
from what he lays before Parliament and publishes under this section,
and
(b)
from what is to be laid before the Scottish Parliament by the Scottish
Ministers,

anything the publication of which he considers to be against the interests of
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national security.
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Additional responsibilities under designating directions
(1)
Where the NDA is given a responsibility for securing the operation of an
installation or facility, a direction may also give the NDA further
responsibilities in relation to the management of the site where that installation
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or facility is situated.
(2)
Where the NDA is given a responsibility in relation to a principal nuclear site,
a direction may give the NDA further responsibilities in relation to the
operation or management of any one or more of the following—
(a)
research facilities situated in or on that site;
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(b)
facilities other than research facilities which are situated in or on that
site and are neither nuclear installations nor NDA facilities;
(c)
other land (whether or not adjacent to that site) which is owned or
occupied, together with it, by the person with control of the principal
nuclear site; and
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(d)
facilities of any description situated in or on such other land.
(3)
The NDA is not to be given further responsibilities under subsection (1) or (2)
except where the Secretary of State considers it appropriate to do so—
(a)
for the purpose of facilitating the carrying out by the NDA of any of its
functions; or
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(b)
for a purpose otherwise incidental to the carrying out of those
functions.
(4)
Where a direction gives the NDA a responsibility for securing the treatment,
storage, transportation or disposal of matter or waste, it may also give the NDA
responsibility for securing the design, construction and operation of a facility
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for that purpose.

Energy Bill [HL]
Part 2 — The Civil Nuclear Industry
Chapter 1 — Nuclear decommissioning
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(5)
Subsection (4) of section 6 applies to giving the NDA a responsibility
mentioned in this section as it applies to giving it a responsibility mentioned in
that section.
(6)
In this section “direction” means a direction under section 6.
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Supplemental provisions of designating directions
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(1)
A direction comes into force at the time which is specified in the direction or
determined in accordance with provision contained in it.
(2)
A direction giving the NDA responsibilities in relation to an installation, site or
facility which—
(a)
is a nuclear installation, a principal nuclear site or a facility situated in
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or on a principal nuclear site, but
(b)
is not one in relation to which the NDA is to have a financial
responsibility under section 24,

may require the person with control of the installation, site or facility to make
payments to the Secretary of State.
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(3)
A direction may also impose requirements with respect to the charges which
(subject to section 24) are to be imposed by the NDA in connection with the
discharge of responsibilities given to the NDA by the direction.
(4)
Subject to subsections (5) and (6), a direction may be modified or revoked by a
subsequent direction.
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(5)
A direction must not modify or revoke a direction relating to the responsibility
of the NDA in relation to an installation, site or facility unless the person with
control of the installation, site or facility is, at the time when the modification
or revocation comes into force—
(a)
a Crown appointee;
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(b)
the UKAEA;
(c)
a publicly owned company;
(d)
the NDA itself; or
(e)
a person who has consented to the modification or revocation.
(6)
A direction in so far as it gives the NDA responsibility—
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(a)
for the decommissioning of an installation, or
(b)
for the cleaning-up of a principal nuclear site,

may be revoked only if the condition set out in subsection (7) is satisfied.
(7)
The condition is—
(a)
in the case of a direction given by the Secretary of State, that he is
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satisfied that the NDA has discharged all its responsibilities in relation
to the decommissioning or cleaning-up of the installation or site; and
(b)
in the case of a direction given jointly by the Secretary of State and the
Scottish Ministers, that he and those Ministers are so satisfied.
(8)
The Secretary of State must pay sums received by him by virtue of subsection
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(2) into the Consolidated Fund.
(9)
In this section “direction” means a direction under section 6.