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Energy Bill [HL]


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

97

 

121     

Use of green certificates issued in Northern Ireland

(1)   

After section 32B of the 1989 Act insert—

“32BA   

Use of green certificates issued in Northern Ireland

(1)   

An order under section 32 may provide that—

(a)   

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

5

(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

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

Northern Ireland certificate.

10

(2)   

In this section ‘Northern Ireland certificate’ means a certificate issued

by the Northern Ireland authority in accordance with provision

included, by virtue of Article 54 of the Energy (Northern Ireland) Order

2003 (S.I. 2003/419 (N.I. 6)), in an order under Article 52 of that Order

(renewables obligations for Northern Ireland suppliers).”

15

(2)   

The requirements of section 32(7) of the 1989 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.

(3)   

In Article 56(1) of the Energy (Northern Ireland) Order 2003 (power to amend

20

Part 7 of that Order to take account of amendments of corresponding Great

Britain provisions), the reference to amendments made to sections 32 to 32C of

the 1989 Act includes a reference to subsection (1) of this section.

(4)   

Subsection (3) extends to Northern Ireland only.

122     

Distributions to Northern Ireland suppliers

25

(1)   

In section 32C of the 1989 Act (payment of money to discharge renewables

obligation and distribution of fund to electricity suppliers), after subsection (4)

insert—

“(5)   

The references in subsections (3) and (4) to electricity suppliers include

references to persons who are Northern Ireland suppliers.”

30

(2)   

The requirements of section 32(7) of the 1989 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.

123     

Supplementary provision relating to renewables obligation in Great Britain

35

(1)   

In subsection (3) of section 32 of the 1989 Act (definition of renewables

obligation), for “and 32C” substitute “to 32C”.

(2)   

In subsection (7) of that section, for paragraph (d) substitute—

“(d)   

such generators of electricity from renewable sources as he

considers appropriate; and”.

40

(3)   

After subsection (8) of that section insert—

“(8A)   

In this section and in sections 32A to 32C—

 

 

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

98

 

   

‘generated’ means generated at any place whether situated in the

United Kingdom or elsewhere, and cognate expressions shall be

construed accordingly;

   

‘Northern Ireland authority’ means the Northern Ireland

Authority for Energy Regulation;

5

   

‘Northern Ireland supplier’ means an electricity supplier within

the meaning of Part 7 of the Energy (Northern Ireland) Order

2003.”

(4)   

In section 32A of that Act (supplementary provision relating to orders under

section 32), in subsection (3) for the words from “the differences” onwards

10

substitute “no supplier would by virtue of the differences be unduly

disadvantaged in competing with other suppliers”.

(5)   

After that subsection insert—

“(3A)   

In subsection (3) ‘supplier’ means an electricity supplier or a Northern

Ireland supplier.”

15

(6)   

In subsection (7) of that section, for “obligation imposed” substitute “matters

dealt with”.

(7)   

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

20

commencement of this section.

124     

Issue of green certificates in Northern Ireland

(1)   

Article 54 of the Energy (Northern Ireland) Order 2003 (S.I. 2003/419 (N.I. 6))

(which contains provision corresponding to provision contained in section 32B

of the 1989 Act) is amended as follows.

25

(2)   

After paragraph (2) insert—

“(2A)   

In paragraphs (1) and (2) ‘Northern Ireland’ does not include any part

of the territorial sea of the United Kingdom.

(2B)   

The provision that may be contained by virtue of this Article in an order

under Article 52 includes—

30

(a)   

provision for the person to whom a certificate is to be issued to

be determined either before or after the supply of the electricity

to which it relates; and

(b)   

provision for a determination as to the person to whom a

certificate is to be issued to be made in accordance with such

35

arrangements as may be specified in or determined under the

order.

(2C)   

In the case only of a certificate relating to electricity that has been

acquired, or is required to be acquired, under a qualifying

arrangement, the arrangements within paragraph (2B)(b) that may be

40

specified in or determined under the order include arrangements—

(a)   

requiring the determination of the person to whom the

certificate is to be issued to be made by reference to financial

bids made in respect of the certificate or in respect of both the

certificate and the electricity to which it relates; and

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

99

 

(b)   

requiring that person to make a payment, in accordance with

his bid, to such person as may be specified in or determined

under the order.

(2D)   

In the case only of a certificate relating to electricity that has been

acquired, or is required to be acquired, under a qualifying

5

arrangement, provision falling within paragraph (2B)(b) may require

the relevant person—

(a)   

to make and implement the arrangements that are specified in

or determined under the order; and

(b)   

to comply with directions given to him by the Authority for that

10

purpose.

(2E)   

A person who receives a payment in accordance with provision made

by virtue of paragraph (2C)(b) shall apply the money received in such

manner as the Department may direct.

(2F)   

A direction under paragraph (2E) may require that the money received

15

or part of that money be paid to the Department.

(2G)   

Part VI shall apply in relation to a requirement imposed by virtue of

paragraph (2D) or (2E) on a person who is not an electricity licence

holder as if he were an electricity licence holder.”

(3)   

After paragraph (3) insert—

20

“(4)   

An order under Article 52 may confer on the Authority functions in

Northern Ireland in relation to the issue of Great Britain certificates.

(5)   

In this Article—

   

‘Great Britain certificates’ means certificates that are or may be

issued by the Gas and Electricity Markets Authority in

25

accordance with provision included, by virtue of section 32B of

the Electricity Act 1989, in an order under section 32 of that Act;

   

‘qualifying arrangement’ means an arrangement made pursuant

to an order under Article 35 of the Electricity Order (or such an

arrangement as modified or replaced by virtue of an order

30

under Article 57 of this Order);

   

‘relevant person’ means, in relation to electricity that is acquired,

or is required to be acquired, under a qualifying arrangement,

the person who acquired it, or who is required to acquire it.”

(4)   

The requirements of Article 52(6) of that Order (consultation before making an

35

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.

(5)   

This section extends to Northern Ireland only.

125     

GEMA’s power to act on behalf of Northern Ireland regulator

40

(1)   

GEMA and the Northern Ireland Authority for Energy Regulation (“the

Northern Ireland Authority”) shall be entitled—

(a)   

to enter into arrangements for GEMA to act on behalf of the Northern

Ireland Authority for, or in connection with, the carrying out of the

2003 renewables obligations functions; and

45

(b)   

to give effect to those arrangements.

 

 

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

100

 

(2)   

In this section “the 2003 renewables obligations functions” means the functions

conferred on the Northern Ireland Authority under or for the purposes of

Articles 52 to 55 of the Energy (Northern Ireland) Order 2003 (S.I. 2003/419

(N.I. 6)) (renewable obligations for Northern Ireland suppliers).

126     

Consultation in relation to Northern Ireland renewables orders

5

(1)   

This section applies where the Department of Enterprise, Trade and

Investment in Northern Ireland amends the provisions of Part 7 of the 2003

Order (renewables obligations for Northern Ireland suppliers) by way of an

amending order to take account of amendments of the 1989 Act made by this

Chapter.

10

(2)   

In the case of a renewables order containing provision made by virtue of the

amending order, the requirements of Article 52(6) of the 2003 Order

(consultation before making a renewables order) may be satisfied by

consultation that took place wholly or partly before the amending order came

into force (including consultation taking place before the commencement of

15

this section).

(3)   

In this section—

   

“amending order” means an order under Article 56 of the 2003 Order;

   

“the 2003 Order” means the Energy (Northern Ireland) Order 2003

(S.I. 2003/419 (N.I. 6));

20

   

“renewables order” means an order under Article 52 of the 2003 Order.

(4)   

This section extends to Northern Ireland only.

127     

Modification of conditions of Northern Ireland electricity licences

(1)   

In Part 7 of the Energy (Northern Ireland) Order 2003 (renewable energy

sources), after Article 58 insert—

25

“58A    

Modifications of licences in connection with Energy Act 2004

(1)   

Where the Department or the Authority considers it necessary or

expedient to do so in connection with—

(a)   

amendments of this Order made by section 124 of the Energy

Act 2004, or

30

(b)   

provision made by an order under Article 56 to take account of

amendments of the Electricity Act 1989 made by Chapter 3 of

Part 3 of that Act of 2004,

   

it may modify the conditions of an electricity licence.

(2)   

The power to make modifications under this Article includes power to

35

make incidental, consequential or transitional modifications.

(3)   

Before making a modification of a licence condition under this Article

the Department shall consult the Authority and the licence holder.

(4)   

Before making a modification of a licence condition under this Article

the Authority shall—

40

(a)   

consult the licence holder; and

(b)   

obtain the consent of the Department to the modification.

(5)   

Paragraphs (3) and (4)(a) may be satisfied by consultation—

 

 

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

101

 

(a)   

that, in the case of a modification within paragraph (1)(b), took

place wholly or partly before the order in question comes into

force; and

(b)   

that, in any case, took place wholly or partly before the

commencement of this Article.

5

(6)   

Where the Department or the Authority makes any modifications

under this Article it shall publish those modifications in such manner

as it considers appropriate.

(7)   

The power conferred by virtue of paragraph (1)(a) may not be exercised

after the end of the period of two years beginning with the

10

commencement of this Article.

(8)   

The power conferred by virtue of paragraph (1)(b) may not be exercised

in relation to an order under Article 56 after the end of the period of two

years beginning with the day on which the order comes into force.”

(2)   

This section extends to Northern Ireland only.

15

128     

Renewable transport fuel obligation

(1)   

In order to comply with EU Directive 2003/30/EC, which requires Member

States of the European Union to demonstrate how biofuels are to be placed on

their markets in increasing quantities, the Secretary of State may, by

regulations, introduce a renewable transport fuel obligation.

20

(2)   

Regulations made under subsection (1) may—

(a)   

require relevant parts of the road transport fuel industry to

demonstrate that a specified proportion of their product is renewable;

(b)   

set targets for the proportion of road transport fuel to be renewable;

and

25

(c)   

provide for penalties for failure to meet targets.

(3)   

For the purposes of the obligation, renewable transport fuels shall be defined

as liquid or gaseous fuel for transport produced from biomass or other

renewable fuels.

(4)   

The power conferred by this section on the Secretary of State to make

30

regulations is exercisable by statutory instrument subject to affirmative

resolution of both Houses of Parliament.

(5)   

In this section—

   

“biomass” means the biodegradable fraction of products, waste and

residues from agriculture (including vegetable and animal substances),

35

forestry and related industries, as well as the biodegradable fraction of

industrial and municipal waste;

   

“other renewable fuels” means fuels, other than biofuels, which originate

from renewable energy sources and are used for transport purposes.

 

 

Energy Bill [HL]
Part 3 — Renewable Energy Sources
Chapter 4 — Microgeneration

102

 

Chapter 4

Microgeneration

129     

Strategy for microgeneration

(1)   

For the purposes of promoting and developing the use of new and renewable

energy sources, the Secretary of State shall within twelve months of the passing

5

of this Act publish a strategy for microgeneration (“the strategy”).

(2)   

In drawing up the strategy or any revision of the strategy, the Secretary of State

shall consider the role of microgeneration in—

(a)   

reducing the emission of carbon dioxide,

(b)   

alleviating fuel poverty,

10

(c)   

reducing the need for reinforcement of electricity networks, and

(d)   

ensuring security of supply of electricity.

(3)   

In preparing the strategy or any revision of the strategy, the Secretary of State

shall consult such persons as in his opinion are producers of energy by means

of microgeneration.

15

(4)   

The strategy shall include such targets for the generation of energy by

microgeneration as in the opinion of the Secretary of State are practicable and

cost effective.

(5)   

It shall be the duty of the Secretary of State to take reasonable steps to—

(a)   

implement the strategy, and

20

(b)   

ensure that any targets included in the strategy are met.

(6)   

The Secretary of State may from time to time revise the strategy, and any

revised strategy may set new targets for the generation of energy by

microgeneration, and it shall be the duty of the Secretary of State to take

reasonable steps to—

25

(a)   

implement the revised strategy, and

(b)   

ensure that any targets included in the revised strategy are met.

(7)   

In this section the following terms shall have the following meanings—

   

“new and renewable energy sources” means sources of production of

energy from or by means of—

30

(a)   

wind power,

(b)   

solar power,

(c)   

ground source heat,

(d)   

micro combined heat and power systems,

(e)   

micro hydro power, and

35

(f)   

other low or zero carbon sources;

   

“microgeneration” means generation of energy by means of equipment

installed in, or for use by, a single unit or a small number of units of

residential accommodation or office accommodation.

 

 

Energy Bill [HL]
Part 4 — Energy Regulation
Chapter 1 — Electricity trading and transmission

103

 

Part 4

Energy Regulation

Chapter 1

Electricity trading and transmission

130     

“New trading and transmission arrangements”

5

(1)   

References in this Chapter to the new trading and transmission arrangements

are to new arrangements relating to the trading and transmission of electricity

in Great Britain designed—

(a)   

to promote the creation of a single competitive wholesale electricity

trading market, and

10

(b)   

to introduce a single set of arrangements for access to and use of any

transmission system in Great Britain.

(2)   

Expressions used in subsection (1) have the same meaning as in Part 1 of the

1989 Act (electricity supply), as amended by section 132.

131     

Power to modify licence conditions

15

(1)   

If the Secretary of State considers it necessary or expedient to do so for the

purpose of implementing the new trading and transmission arrangements

(whether wholly or partly), he may modify—

(a)   

the conditions of a particular licence under section 6 of the 1989 Act

(licences authorising supply etc.), or

20

(b)   

the standard conditions of licences of any of the types of licence

mentioned in subsection (1) of that section (generation, transmission,

distribution or supply licences).

(2)   

The power under subsection (1) includes—

(a)   

power to make modifications relating to the operation of distribution

25

systems, and

(b)   

power to make incidental, consequential or transitional modifications.

(3)   

Before making modifications under this section, the Secretary of State shall

consult the holder of any licence being modified and such other persons as he

considers appropriate.

30

(4)   

Subsection (3) may be satisfied by consultation before, as well as by

consultation after, the commencement of this section.

(5)   

The Secretary of State shall publish any modifications under subsection (1) in

such manner as he considers appropriate.

(6)   

Any modification under subsection (1)(a) of part of a standard condition of a

35

licence shall not prevent any other part of the condition from continuing to be

regarded as a standard condition for the purposes of Part 1 of the 1989 Act.

(7)   

Where the Secretary of State modifies the standard conditions of licences of any

type under subsection (1)(b), GEMA shall—

(a)   

make (as nearly as may be) the same modifications of those standard

40

conditions for the purposes of their incorporation in licences of that

type granted after that time, and

 

 

 
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