Energy Bill [HL]

House of Commons

Session 2003 - 04
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Energy Bill [HL]

Energy Bill [HL]
Part 3 — Energy Regulation
Chapter 4 — Further provisions about regulation
135

subsection (2) insert—
“(2A)
The Authority may enter the provisions of anything in the register in a
manner that excludes, so far as practicable, so much of the details of
those provisions as it considers it appropriate to exclude for the
purpose of maintaining the confidentiality of—
5
(a)
matters relating to the affairs of an individual the publication of
which would or might, in its opinion, seriously and
prejudicially affect the interests of that individual; and
(b)
matters relating specifically to the affairs of a particular body of
persons the publication of which would or might, in the
10
Authority’s opinion, seriously and prejudicially affect the
interests of that body.”
(2)
In subsection (2) of that section, after “Subject to” insert “subsection (2A) and
to”.
(3)
For section 49(3) of 1989 Act (matters needing to be excluded so far as
15
practicable from register to be kept by GEMA) substitute—
“(3)
The Authority may enter the provisions of anything in the register in a
manner that excludes, so far as practicable, so much of the details of
those provisions as it considers it appropriate to exclude for the
purpose of maintaining the confidentiality of—
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(a)
matters relating to the affairs of an individual the publication of
which would or might, in its opinion, seriously and
prejudicially affect the interests of that individual; and
(b)
matters relating specifically to the affairs of a particular body of
persons the publication of which would or might, in the
25
Authority’s opinion, seriously and prejudicially affect the
interests of that body.”
Areas with high distribution or transmission costs
176
Assistance for areas with high distribution costs
(1)
If it appears to the Secretary of State—
30
(a)
that the costs of distributing electricity within a particular area of Great
Britain are significantly higher (when calculated on a per customer
basis) than in other areas of Great Britain, and
(b)
that within that area there are at least 100,000 premises that are
connected to the same distribution system,
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he may make an order under this section.
(2)
An order under this section is one that establishes a scheme which—
(a)
requires authorised transmitters to make a payment each year to
relevant distributors distributing electricity in that area of Great Britain
of such amount as may be determined in accordance with provision
40
contained in the scheme;
(b)
requires the charges imposed by the authorised transmitters on
authorised suppliers to be adjusted in accordance with the scheme for
the purpose of enabling the transmitters to make that payment; and
(c)
requires relevant distributors in receipt of a payment under the order
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to secure, in accordance with the order, that the benefit of the payment

Energy Bill [HL]
Part 3 — Energy Regulation
Chapter 4 — Further provisions about regulation
136

is passed to the authorised suppliers supplying electricity in the area of
Great Britain in question.
(3)
An order under this section establishing a scheme in relation to the distribution
of electricity within a particular area must specify the area.
(4)
For the purpose of facilitating the implementation of a scheme for which an
5
order under this section provides, such an order may make such modifications
as the Secretary of State considers appropriate of the conditions of the licences
of authorised suppliers, of authorised transmitters and of authorised
distributors.
(5)
For the purpose of carrying out the functions conferred on him by or under this
10
section the Secretary of State may require—
(a)
an authorised supplier,
(b)
an authorised distributor, or
(c)
an authorised transmitter,

to supply him, in a specified form and within a specified time, with
15
information of a specified description.
(6)
No person may be required under this section to supply information he could
not be compelled to give in evidence in civil proceedings in the High Court or
the Court of Session.
(7)
Before making an order under this section, the Secretary of State must consult
20
such persons as he considers appropriate.
(8)
Subsection (7) may be satisfied by consultation that took place wholly or partly
before the commencement of this section.
(9)
An order under this section is subject to the negative resolution procedure.
(10)
Where a scheme established under this section in relation to the distribution of
25
electricity within a particular area is in force, no scheme shall be established
under this section in relation to the distribution of electricity outside that area.
(11)
Where a scheme is established under this section, it shall be the duty of the
Secretary of State to carry out a review of that scheme—
(a)
three years after its establishment; and
30
(b)
thereafter at three yearly intervals.
(12)
Part 1 of the 1989 Act shall have effect as if every requirement or other duty
imposed on a licence holder under this section were a relevant requirement
within the meaning of that Part (see section 25(8) of that Act).
(13)
In this section—
35

“authorised distributor” and “authorised supplier” have the same
meanings as in Part 1 of the 1989 Act;

“authorised transmitter” means a person authorised by a licence under
section 6(1)(b) of that Act to participate in the transmission of
electricity;
40

“distributing”, “distribution” and “distribution system” have the same
meanings as in Part 1 of that Act;

“licence” means a licence for the purposes of section 4 of that Act;

“licence holder” has the same meaning as in Part 1 of that Act;

“premises” has the same meaning as in Part 1 of that Act;
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Energy Bill [HL]
Part 3 — Energy Regulation
Chapter 4 — Further provisions about regulation
137


“relevant distributor” means an authorised distributor who distributes
electricity by means of a distribution system to which at least 100,000
premises are connected.
177
Adjustment of transmission charges
(1)
The Secretary of State may make an order under this section if it appears to
5
him—
(a)
that a particular area of Great Britain is suitable as a location for the
generation of electricity from renewable sources;
(b)
that, as a result, that area represents an area of high potential for the
development of the generation of electricity from such sources; and
10
(c)
that that development is likely to be deterred, or otherwise hindered in
a material respect, by the level of charges that would (apart from the
order) be imposed by authorised transmitters on persons generating
electricity in that area from renewable sources.
(2)
An order under this section is one that establishes a scheme which—
15
(a)
limits the amounts of charges that authorised transmitters may impose
on persons so generating electricity in that area to amounts determined
in accordance with provision contained in the scheme; and
(b)
requires the charges imposed by the authorised transmitters on
authorised suppliers to be adjusted in accordance with the scheme for
20
the purpose of making good shortfalls resulting from that limitation.
(3)
An order under this section establishing a scheme in relation to the generation
of electricity from renewable sources in a particular area must specify the area.
(4)
For the purpose of facilitating the implementation of a scheme an order under
this section may make such modifications as the Secretary of State considers
25
appropriate of the conditions of the licences of authorised transmitters and of
authorised suppliers.
(5)
For the purpose of carrying out the functions conferred on him by or under this
section the Secretary of State may require—
(a)
an authorised supplier,
30
(b)
an authorised distributor, or
(c)
an authorised transmitter,

to supply him, in a specified form and within a specified time, with
information of a specified description.
(6)
No person may be required under subsection (5) to supply information he
35
could not be compelled to give in evidence in civil proceedings in the High
Court or the Court of Session.
(7)
Before making an order under this section the Secretary of State must—
(a)
publish a draft of any scheme proposed to be established by the order;
(b)
publish an assessment of the costs likely to be incurred by different
40
persons in consequence of the order; and
(c)
consult authorised suppliers and such other persons likely to be
affected by the order as he considers appropriate.
(8)
An assessment published under subsection (7)(b) must set out, in particular,
the Secretary of State’s assessment of the likely effect of the order on charges
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for electricity in Great Britain.

Energy Bill [HL]
Part 3 — Energy Regulation
Chapter 4 — Further provisions about regulation
138

(9)
Subsection (7) may be satisfied by publications and consultation taking place
wholly or partly before the commencement of this section.
(10)
Where a scheme in relation to the generation of electricity from renewable
sources within a particular area is in force, no scheme shall be established in
relation to the generation of electricity from renewable sources outside that
5
area.
(11)
A scheme shall not be applied in relation to a time more than ten years after the
commencement of this section.
(12)
A scheme—
(a)
shall not be applied for a period of more than five years; but
10
(b)
subject to subsection (11), may be renewed at any time by a further
order under this section for a period of no more than five years from the
coming into force of the further order.
(13)
Part 1 of the 1989 Act shall have effect as if every requirement or other duty
imposed on a licence holder under this section were a relevant requirement
15
within the meaning of that Part (see section 25(8) of that Act).
(14)
In this section—

“authorised distributor” and “authorised supplier” have the same
meanings as in Part 1 of the 1989 Act;

“authorised transmitter” means a person authorised by a licence under
20
section 6(1)(b) of that Act to participate in the transmission of
electricity;

“licence” means a licence for the purposes of section 4 of that Act;

“licence holder” has the same meaning as in Part 1 of that Act;

“renewable sources” means sources of energy in relation to which the
25
following condition is satisfied, namely, that the production of
evidence in respect of electricity generated from those sources is
capable of satisfying a renewables obligation imposed by an order
under section 32 of that Act (obligation in respect of electricity
generated from renewable sources);
30

“scheme” means a scheme established by an order under this section.
(15)
The power to make an order containing provision authorised by this section is
subject to the affirmative resolution procedure.
178
Restrictions on disclosure of information
In section 105 of the Utilities Act 2000 (c. 27) (general restrictions on disclosure
35
of information)—
(a)
in subsection (1)(a) for “or Part I of the 1989 Act” substitute “, Part 1 of
the 1989 Act or section 176(5) or 177(5) of the Energy Act 2004”; and
(b)
in subsection (3)(a) after “1989 Act” insert “, section 176 or 177 of the
Energy Act 2004”.
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Payments into Scottish Consolidated Fund
179
Payments of sums raised by fossil fuel levy
(1)
If the Scottish Ministers so direct, the person prescribed under section 33(1)(b)
of the 1989 Act (collection of fossil fuel levy) must pay an amount into the

Energy Bill [HL]
Part 4 — Miscellaneous and Supplemental
139

Scottish Consolidated Fund out of money that has been paid under section
33(5A) of that Act.
(2)
The Scottish Ministers shall, in making budget proposals to the Scottish
Parliament, include provision that the required amount for the financial year
to which the proposals relate be used for the purpose of promoting the use of
5
energy from renewable sources.
(3)
In subsection (2)—

“budget proposals” means proposals made, in relation to each Bill for a
Budget Act, for the use of resources;

“the required amount” means an amount of money equal to the total of
10
the amounts paid into the Scottish Consolidated Fund under
subsection (1) in the financial year in question; and

“renewable sources” means sources of energy other than fossil fuel or
nuclear fuel.
(4)
In subsection (3), “fossil fuel” means coal, substances produced directly or
15
indirectly from coal, lignite, natural gas, crude liquid petroleum, or petroleum
products (and “natural gas” and “petroleum products” have the same
meanings as in the Energy Act 1976 (c. 76)).
(5)
The Scottish Ministers’ duty under subsection (2) is without prejudice to any
power or duty of theirs apart from this section to spend money for the purpose
20
mentioned in that subsection.
(6)
In this section references to section 33 of the 1989 Act are references to that
section as it has effect in Scotland.
Part 4
Miscellaneous and Supplemental
25
Imposition of charges
180
Power to impose charges to fund energy functions
(1)
The Secretary of State may by regulations make provision requiring the
payment to him of charges in respect of any of the following—
(a)
services or facilities provided or made available by him in the carrying
30
out of his relevant energy functions;
(b)
the consideration or supervision by him, for purposes connected with
the carrying out of any of those functions, of any matter;
(c)
the issue by him, in the carrying out of those functions, of a licence;
(d)
the doing of anything else which is done by him—
35
(i)
in the carrying out of any of those functions; or
(ii)
for purposes which are incidental to, or otherwise connected
with, the carrying out of any of those functions.
(2)
The matters in respect of which charges may be imposed under this section
include—
40
(a)
the performance of a duty imposed on the Secretary of State; and
(b)
things done in relation to, or to activities carried on in, the territorial sea
adjacent to the United Kingdom or an area designated under section
1(7) of the Continental Shelf Act 1964 (c. 29).

Energy Bill [HL]
Part 4 — Miscellaneous and Supplemental
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(3)
The persons who may be made liable for charges imposed by regulations
under this section are—
(a)
any of the persons to whom, or on whose application, the service or
facility in question is provided or made available;
(b)
any of the persons on whose application the matter in question is
5
considered, or to whom that matter relates;
(c)
any of the persons whose activities are supervised;
(d)
any of the persons to whom, or on whose application, the licence in
question is issued;
(e)
any of the persons on whose application the other thing is done.
10
(4)
In exercising his powers under this section to fix the amount of the charge to
be paid by a person of a particular description, the Secretary of State may fix
any amount that appears to him to be appropriate having regard to the costs
that the Secretary of State is likely to incur in the carrying out—
(a)
in relation to persons of that description, or
15
(b)
in a manner that benefits persons of that description,

of the relevant energy functions in respect of which the charge is imposed.
(5)
The provision that may be made by regulations under this section includes—
(a)
provision specifying the times at which charges imposed under such
regulations become due;
20
(b)
provision specifying the manner in which they are to be paid; and
(c)
provision for charges that must be paid periodically in respect of any
matter.
(6)
Regulations under this section are subject to the negative resolution procedure.
(7)
The references in this section to the Secretary of State’s relevant energy
25
functions are references to the powers and duties of the Secretary of State by or
under any of the following—
(a)
the Pipe-lines Act 1962 (c. 58);
(b)
so much of the Prevention of Oil Pollution Act 1971 (c. 60) as has effect
in connection with anything specified in subsection (8);
30
(c)
the Energy Act 1976 (c. 76);
(d)
so much of Part 2 of the Food and Environment Protection Act 1985
(c. 48) as has effect in connection with anything specified in subsection
(8);
(e)
the Gas Act 1986 (c. 44);
35
(f)
the 1989 Act;
(g)
the Gas Act 1995 (c. 45);
(h)
the Petroleum Act 1998 (c. 17);
(i)
so much of the Pollution Prevention and Control Act 1999 (c. 24) as has
effect in connection with anything specified in subsection (8);
40
(j)
Chapters 2 and 3 of Part 2 of this Act;
(k)
Chapters 2 to 4 of Part 3 of this Act;
(l)
so much of any Community instrument as has effect in connection with
anything specified in subsection (8).
(8)
The matters mentioned in subsection (7) are—
45
(a)
the carrying out of exploration for petroleum;
(b)
the winning or production of petroleum;

Energy Bill [HL]
Part 4 — Miscellaneous and Supplemental
141

(c)
the generation, transmission, distribution or supply of electricity;
(d)
the conveyance, supply, storage or processing of gas;
(e)
pipelines for the conveyance of petroleum that are situated in Great
Britain;
(f)
offshore installations and submarine pipelines;
5
(g)
Renewable Energy Zones and renewable energy installations;
(h)
the protection of the environment from activities carried on in
connection with anything mentioned in the preceding paragraphs.
(9)
In this section—

“application” includes a requirement, and cognate expressions are to be
10
construed accordingly;

“gas” has the same meaning as in the Gas Act 1986 (c. 44);

“issue”, in relation to a licence, includes grant and serve, and also refuse,
modify, revoke and renew, and cognate expressions are to be construed
accordingly;
15

“licence” includes an authorisation, consent, approval, exemption,
certificate or notice;

“offshore installation” has the same meaning as in Part 4 of the Petroleum
Act 1998 (c. 17);

“petroleum” has the same meaning as in Part 1 of that Act;
20

“pipeline” means a pipeline within the meaning of Part 3 of that Act or a
pipe-line within the meaning of the Pipe-lines Act 1962 (c. 58);

“Renewable Energy Zone” and “renewable energy installation” have the
same meanings as in Chapter 2 of Part 2 of this Act;

“supervision”, in relation to activities, includes the carrying out of an
25
inspection of any premises or thing used or apparently used in
connection with those activities.
(10)
The power to make regulations under this section—
(a)
is in addition to every other power to impose charges in connection
with the carrying out by the Secretary of State of his relevant energy
30
functions; and
(b)
is to be disregarded in construing those other powers.
(11)
The Secretary of State must pay sums received by him by virtue of regulations
under this section into the Consolidated Fund.
International agreements relating to pipelines and offshore installations
35
181
Power to modify Petroleum Act 1998
(1)
Her Majesty may by Order in Council make any modifications of the
Petroleum Act 1998 that Her Majesty considers appropriate for the purpose of
securing that effect is given to an international agreement to which this section
applies.
40
(2)
This section applies to an international agreement (whether entered into before
or after the passing of this Act) which relates in whole or in part to the
construction, operation, use, decommissioning or abandonment of a pipeline
or offshore installation.
(3)
The power under this section to modify the Petroleum Act 1998 includes—
45