|
| |
|
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) |
| |
| |
“(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— |
| |
|
| |
|
| |
|
| ‘generated’ means generated at any place whether situated in the |
| |
United Kingdom or elsewhere, and cognate expressions shall be |
| |
| |
| ‘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 |
| |
| |
(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 |
| |
| 15 |
(6) | In subsection (7) of that section, for “obligation imposed” substitute “matters |
| |
| |
(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 |
| |
| |
(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 |
| |
| |
(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 |
| 45 |
|
| |
|
| |
|
(b) | requiring that person to make a payment, in accordance with |
| |
his bid, to such person as may be specified in or determined |
| |
| |
(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 |
| |
| |
(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 |
| |
(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. |
| |
| |
| ‘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. |
| |
|
| |
|
| |
|
(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 |
| |
| 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 |
| |
| |
| “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 |
| |
| 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 |
| |
| 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— |
| |
|
| |
|
| |
|
(a) | that, in the case of a modification within paragraph (1)(b), took |
| |
place wholly or partly before the order in question comes into |
| |
| |
(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; |
| |
| 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 |
| |
| |
(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. |
| |
| |
| “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. |
| |
|
| |
|
| |
|
| |
| |
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 |
| |
| 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 |
| |
| |
(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 |
| |
| 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 |
| |
| |
| |
(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. |
| |
|
| |
|
| |
|
| |
| |
| |
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 |
| |
| 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 |
| |
(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 |
| |
| 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 |
| |
|
| |
|