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Energy Bill [HL]


Energy Bill [HL]
Part 3 — Renewable Energy Sources
Chapter 2 — Decommissioning of offshore installations

91

 

(b)   

ends with the date of payment.

(7)   

The rate of interest shall be a rate determined by the Secretary of State to be

comparable with commercial rates.

Decommissioning regulations

114     

Regulations about decommissioning

5

(1)   

The Secretary of State may make regulations relating to the decommissioning

of relevant objects in waters regulated under this Chapter.

(2)   

The provision that may be contained in regulations under this section includes,

in particular—

(a)   

provision prescribing standards in respect of decommissioning;

10

(b)   

provision prescribing standards and safety requirements in respect of

anything left in place where a relevant object is not wholly removed;

(c)   

provision about the security that a person may be required to provide

under this Chapter;

(d)   

provision for the prevention of pollution;

15

(e)   

provision for inspections, including provision as to the payment of the

costs of inspections.

(3)   

Regulations under this section may include provision making it an offence to

contravene provisions of the regulations.

(4)   

Where the regulations under this section create an offence, they must make

20

provision as to the mode of trial and punishment of offenders; but there is no

power for regulations under this section—

(a)   

to impose a penalty of imprisonment on summary conviction, or to

impose a maximum fine, on summary conviction, of more than the

statutory maximum; or

25

(b)   

to impose a maximum term of imprisonment, on conviction on

indictment, of more than two years.

(5)   

Before making regulations under this section, the Secretary of State must

consult—

(a)   

organisations appearing to him to be representative of persons who

30

will be affected by the regulations; and

(b)   

any other persons he considers appropriate.

(6)   

Before making regulations under this section containing provision that relates

to the decommissioning of relevant objects which are to be or are, wholly or

partly—

35

(a)   

in Scottish waters, or

(b)   

in waters in a Scottish part of a Renewable Energy Zone,

   

the Secretary of State must consult the Scottish Ministers.

(7)   

Regulations under this section are subject to the negative resolution procedure.

 

 

Energy Bill [HL]
Part 3 — Renewable Energy Sources
Chapter 2 — Decommissioning of offshore installations

92

 

Supplementary provisions of Chapter 2 of Part 3

115     

Duty to inform Secretary of State

(1)   

A person who becomes responsible for a relevant object must notify the

Secretary of State that he has become so responsible.

(2)   

For the purposes of this section a person becomes responsible for a relevant

5

object if—

(a)   

he makes a proposal to construct the object in waters regulated under

this Chapter;

(b)   

he makes a proposal for the extension or decommissioning in such

waters of the object;

10

(c)   

he makes a proposal to operate or use the object on completion of its

construction in such waters;

(d)   

he makes a proposal to operate or use the object on completion in such

waters of any extension of it;

(e)   

he becomes a party to a proposal mentioned in paragraphs (a) to (d);

15

(f)   

he begins in such waters to construct, to extend, to operate or use or to

decommission the object;

(g)   

he begins to participate in any of the following activities carried on in

such waters, the construction, extension, operation or use or

decommissioning of the object.

20

(3)   

A person is not required to notify the Secretary of State that he has made a

proposal, or become a party to a proposal, at any time before at least one of the

statutory consents required for enabling effect to be given to the proposal has

been given or applied for.

(4)   

A person who notifies the Secretary of State under this section that he has made

25

a proposal, or has become a party to a proposal—

(a)   

must specify in the notification what statutory consents required for

giving effect to the proposal have been given, and what applications for

such consents have been made; and

(b)   

must notify him subsequently whenever such a consent or application

30

is given or made.

(5)   

A notification under this section must be given within such period after the

obligation to give the notification arises as may be prescribed by regulations

made by the Secretary of State.

(6)   

A person who contravenes the requirements of this section is guilty of an

35

offence.

(7)   

Regulations under this section are subject to the negative resolution procedure.

(8)   

A reference in this section to participation in activities does not include a

reference—

(a)   

to participation on behalf of another person; or

40

(b)   

to participation by acting in pursuance of an agreement to provide a

service or services to a person carrying on those activities.

(9)   

In this section “statutory consent” has the same meaning as in section 108.

 

 

Energy Bill [HL]
Part 3 — Renewable Energy Sources
Chapter 2 — Decommissioning of offshore installations

93

 

116     

Offences relating to decommissioning programmes

(1)   

A person guilty of an offence under a provision of this Chapter is liable—

(a)   

on summary conviction, to a fine not exceeding the statutory

maximum;

(b)   

on conviction on indictment, to imprisonment for a term not exceeding

5

two years or to a fine, or to both.

(2)   

No proceedings for a decommissioning offence shall be instituted in England

and Wales or Northern Ireland except—

(a)   

by the Secretary of State;

(b)   

by a person authorised in that behalf by the Secretary of State; or

10

(c)   

by or with the consent of the Director of Public Prosecutions or (as the

case may be) the Director of Public Prosecutions for Northern Ireland.

(3)   

Where a decommissioning offence is committed by a body corporate and is

proved to have been committed with the consent or connivance of, or to be

attributable to any neglect on the part of—

15

(a)   

a director, manager, secretary or other similar officer of the body

corporate, or

(b)   

a person who was purporting to act in any such capacity,

   

he (as well as the body corporate) is guilty of that offence and shall be liable to

be proceeded against and dealt with accordingly.

20

(4)   

Where such an offence—

(a)   

is committed by a Scottish firm, and

(b)   

is proved to have been committed with the consent or connivance of, or

to be attributable to any neglect on the part of, a partner of the firm,

   

he (as well as the firm) is guilty of that offence and shall be liable to be

25

proceeded against and dealt with accordingly.

(5)   

Where a decommissioning offence is committed outside the United Kingdom,

proceedings for the offence may be taken, and the offence may for all incidental

purposes be treated as having been committed, in any place in the United

Kingdom.

30

(6)   

Section 3 of the Territorial Waters Jurisdiction Act 1878 (c. 73) (consents to

prosecution of offences committed on the open sea by persons who are not

British citizens) does not apply to proceedings for a decommissioning offence.

(7)   

In this section—

   

“decommissioning offence” means an offence under—

35

(a)   

a provision of this Chapter; or

(b)   

regulations made under section 114;

   

“director”, in relation to a body corporate whose affairs are managed by

its members, means a member of the body corporate.

117     

Interpretation of Chapter 2 of Part 3

40

(1)   

Expressions used in this Chapter and in Chapter 1 of this Part have the same

meanings in this Chapter as in that Chapter.

(2)   

In this Chapter—

   

“decommissioning programme” has the meaning given by section 108(2);

 

 

Energy Bill [HL]
Part 3 — Renewable Energy Sources
Chapter 3 — Renewables obligations

94

 

   

“extend” and “extension”, in relation to an electric line, have the same

meanings as they have in Chapter 1 of this Part and this Chapter in

relation to a renewable energy installation;

   

“recipient”, in relation to a notice under section 108, means the person or

any one or more of the persons to whom that notice was given;

5

   

“relevant object” has the meaning given by section 108(10);

   

“security” includes—

(a)   

a charge over a bank account or any other asset;

(b)   

a deposit of money;

(c)   

a performance bond or guarantee;

10

(d)   

a letter of credit; and

(e)   

a letter of comfort;

   

“waters regulated under this Chapter” has the meaning given by section

108(10).

(3)   

References in this Chapter to providing a security include references—

15

(a)   

to securing its maintenance or renewal; and

(b)   

to ensuring that its value is adjusted from time to time to take account

of changes to the likely costs of the matters in respect of which it is

given.

(4)   

References in this Chapter to the person by whom a decommissioning

20

programme was submitted are references, in the case of a programme

submitted jointly by more than one person, to each of them.

(5)   

Provision made by or under this Chapter in relation to places outside the

United Kingdom—

(a)   

so far as it applies to individuals, applies to them whether or not they

25

are British citizens, and

(b)   

so far as it applies to bodies corporate, applies to them whether or not

they are incorporated under the law of any part of the United Kingdom.

Chapter 3

Renewables obligations

30

118     

Discharge of renewables obligation in Great Britain by payment

(1)   

In section 32(3) of the 1989 Act (renewables obligation), for the words from

“must” to “produce” substitute “must, by each specified day, have produced”.

(2)   

In section 32C of that Act (payment as an alternative to complying with a

renewables obligation), in subsection (1) for the words from “that” onwards

35

substitute—

“(a)   

that an electricity supplier may (in whole or in part) discharge

its renewables obligation by making a payment to the Authority

before the day specified as the day by which evidence must be

produced for the purposes of section 32(3); and

40

(b)    

that an electricity supplier’s renewables obligation that was not

discharged in whole or in part before the day so specified is to

be treated as having been discharged to the extent specified in

the order where the payment for which the order provides is

 

 

Energy Bill [HL]
Part 3 — Renewable Energy Sources
Chapter 3 — Renewables obligations

95

 

made to the Authority before the end of such period beginning

with that day as may be specified in the order.”

(3)   

In subsection (2) of that section (supplementary provisions of order providing

for payments)—

(a)   

after paragraph (a) insert—

5

“(aa)   

for the sums that must be paid in order for an obligation

to be treated as having been discharged to increase at a

rate specified in the order for each day after the time by

which evidence had to be produced for the purposes of

section 32(3);”

10

(b)   

in paragraph (b), for “such sums” substitute “sums or rates falling

within paragraph (a) or (aa)”;

(c)   

in paragraph (c), after “sums” insert “or rates”; and

(d)   

in paragraph (d), after “sum” insert “or rate”.

(4)   

After subsection (3) of that section insert—

15

“(3A)   

An order under section 32 may, in the case of an electricity supplier’s

renewables obligation in relation to which provision is made by virtue

of subsection (1)(b), provide that during the period—

(a)   

beginning with the day specified for the production of evidence

for the purposes of section 32(3), and

20

(b)   

of such duration, or ending with such day, as may be specified

in the order,

   

no step under section 27A that is specified in the order shall be taken in

respect of a contravention of that obligation (and section 27A shall have

effect subject to provision made by virtue of this subsection).”

25

(5)   

After subsection (5) of that section insert—

“(6)   

References in this section to an electricity supplier’s renewables

obligation include references to its renewables obligation in relation to

a particular period.”

(6)   

The requirements of section 32(7) of the 1989 Act (consultation before making

30

an order) may be satisfied in the case of an order containing provision made by

virtue of this section by consultation that took place wholly or partly before the

commencement of this section.

119     

Issue of green certificates in Great Britain

(1)   

Section 32B of the 1989 Act (green certificates) is amended as follows.

35

(2)   

In subsection (1), for “or to an electricity supplier” substitute “, to an electricity

supplier or to a Northern Ireland supplier”.

(3)   

After that subsection insert—

“(1A)   

A certificate is to certify either the matters within subsection (2) or the

matters within subsection (2A).”

40

(4)   

In subsection (2)—

(a)   

for “A certificate is to certify” substitute “The matters within this

subsection are”;

(b)   

in paragraph (a), after “an electricity supplier” insert “or to a Northern

Ireland supplier”.

45

 

 

Energy Bill [HL]
Part 3 — Renewable Energy Sources
Chapter 3 — Renewables obligations

96

 

(5)   

After that subsection insert—

“(2A)   

The matters within this subsection are—

(a)   

that the generating station or, in the case of a certificate issued

to an electricity supplier or to a Northern Ireland supplier, a

generating station specified in the certificate, has generated

5

from renewable sources the amount of electricity stated in the

certificate;

(b)   

that the generating station in question is not a generating station

mentioned in Article 54(1) of the Energy (Northern Ireland)

Order 2003; and

10

(c)   

that the electricity has been supplied to customers in Northern

Ireland.

(2B)   

An order under section 32 must—

(a)   

prohibit the issue of a certificate certifying matters within

subsection (2A) where the Northern Ireland authority has

15

notified the Authority that it is not satisfied that the electricity

in question has been supplied to customers in Northern Ireland;

and

(b)   

require the revocation of such a certificate if the Northern

Ireland authority so notifies the Authority at a time between the

20

issue of the certificate and its production for the purposes of

provision made by virtue of subsection (4).”

(6)   

In subsection (3), after “Authority” insert “that certifies matters within

subsection (2)”.

(7)   

After that subsection insert—

25

“(4)   

An order under section 32 may provide that—

(a)   

in such cases as may be specified in the order, and

(b)   

subject to such conditions as may be so specified,

   

an electricity supplier may (to the extent provided for in accordance

with the order) discharge its renewables obligation (or its obligation in

30

relation to a particular period) by the production to the Authority of a

certificate that certifies matters within subsection (2A).

(5)   

References in this section to the supply of electricity to customers in

Northern Ireland shall be construed in accordance with the definition

of ‘supply’ in Article 3 of the Electricity (Northern Ireland) Order

35

1992.”

(8)   

The requirements of section 32(7) of that Act (consultation before making an

order) may be satisfied in the case of an order containing provision made by

virtue of this section by consultation that took place wholly or partly before the

commencement of this section.

40

120     

Electricity to be exempted when determining electricity supplied

In section 32A of the 1989 Act, after subsection (1)(h), insert—

“(i)   

that electricity generated by a generating station producing a

heating or cooling effect in association with electricity shall not

count towards the amount of electricity supplied by an

45

electricity supplier that is subject to the obligation.”

 

 

 
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