Energy Bill [HL]

House of Commons

Session 2003 - 04
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Other Bills before Parliament

Energy Bill [HL]

Energy Bill [HL]
Part 2 — Sustainability and Renewable Energy Sources
Chapter 2 — Offshore production of energy
68

(4)
The waters to which this section applies are—
(a)
tidal waters and parts of the sea in or adjacent to Great Britain up to the
seaward limits of the territorial sea; and
(b)
waters in a Renewable Energy Zone.
(5)
In section 410(3) of the Communications Act 2003 (c. 21) (which enables Orders
5
in Council under section 11 of the Petroleum Act 1998 (c. 17) to extend certain
communications legislation to offshore installations), after “1998” insert “or
section 86 of the Energy Act 2004”.
(6)
In this section—

“court” includes any tribunal or regulatory authority;
10

“related line” means an electric line, or a part of an electric line, which—
(a)
falls within subsection (7); but
(b)
is not an electricity interconnector (within the meaning of Part 1
of the 1989 Act).
(7)
An electric line, or a part of an electric line, falls within this subsection if it—
15
(a)
is used for the conveyance of electricity to or from a renewable energy
installation;
(b)
is in the course of construction at a place where it is to be so used; or
(c)
has ceased to be so used (whether or not it is being decommissioned)
and since ceasing to be so used has not been used for any other purpose.
20
87
Orders in Council under sections 84 and 86
(1)
An Order in Council under section 84 or 86 that makes provision falling within
subsection (3) is subject to annulment in pursuance of a resolution of the
Scottish Parliament (but may by virtue of subsection (2) be subject also to the
negative resolution procedure).
25
(2)
An Order in Council under section 84 or 86 that makes provision not falling
within subsection (3) is subject to the negative resolution procedure.
(3)
Provision falls within this subsection so far as it is provision that would be
within the legislative competence of the Scottish Parliament if it were included
in an Act of that Parliament.
30
Application of 1989 Act offshore
88
Activities offshore requiring 1989 Act licences
(1)
In subsection (4) of section 4 of the 1989 Act (definitions for the purposes of Part
1), after the definition of “distribute” insert—

“‘generate’, in relation to electricity, means generate at a relevant
35
place;”.
(2)
After that subsection insert—
“(5)
In this section—

‘relevant place’ means a place in Great Britain, in the territorial sea
adjacent to Great Britain or in a Renewable Energy Zone; and
40

‘system’ means a system the whole or a part of which is at a
relevant place;

Energy Bill [HL]
Part 2 — Sustainability and Renewable Energy Sources
Chapter 2 — Offshore production of energy
69


and references in this section to premises are references to premises
situated at a relevant place, or at a place that is not in a Renewable
Energy Zone but is in an area designated under section 1(7) of the
Continental Shelf Act 1964.”
(3)
In section 6 of that Act (licences authorising supply etc.), after subsection (9)
5
insert—
“(10)
In this section ‘premises’ has the same meaning as in section 4.”
(4)
In section 64(1) of that Act (interpretation of Part 1), after the definitions of
“final order” and “provisional order” insert—

“‘generate’, in relation to electricity, has the meaning given by
10
section 4(4) above, and cognate expressions shall be construed
accordingly;”.
89
Modification of licence conditions for offshore transmission and distribution
(1)
If the Secretary of State considers it appropriate to do so for purposes
connected with offshore transmission or offshore distribution, he may—
15
(a)
modify the standard conditions of transmission licences or distribution
licences;
(b)
modify, for purposes that in relation to modifications made under
paragraph (a) are incidental, consequential or transitional purposes, the
conditions of a particular transmission licence or a particular
20
distribution licence;
(c)
modify a code maintained in accordance with the conditions of a
transmission licence or a distribution licence; and
(d)
modify an agreement that gives effect to a code so maintained.
(2)
Before making a modification under this section, the Secretary of State must
25
consult—
(a)
the holder of any licence being modified; and
(b)
such other persons as he considers appropriate.
(3)
Subsection (2) may be satisfied by consultation that took place wholly or partly
before the commencement of this section.
30
(4)
The Secretary of State must publish every modification made by him under this
section.
(5)
The publication must be in such manner as the Secretary of State considers
appropriate.
(6)
Where the Secretary of State makes modifications under subsection (1)(a) of the
35
standard conditions of licences of any type, GEMA must—
(a)
make (as nearly as may be) the same modifications of those standard
conditions for the purposes of their incorporation in licences of that
type granted after that time; and
(b)
publish the modifications in such manner as it considers appropriate.
40
(7)
A modification under subsection (1)(b) of part of a standard condition of a
licence does 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.
(8)
The Secretary of State’s powers under this section are exercisable only during
the eighteen months beginning with the commencement of this section.
45

Energy Bill [HL]
Part 2 — Sustainability and Renewable Energy Sources
Chapter 2 — Offshore production of energy
70

(9)
In this section—

“offshore distribution” means distribution within an area of offshore
waters of electricity generated by a generating station in such an area;

“offshore transmission” means transmission within an area of offshore
waters of electricity generated by a generating station in such an area;
5
and

“offshore waters” means—
(a)
waters in or adjacent to Great Britain which are between the
mean low water mark and the seaward limits of the territorial
sea; and
10
(b)
waters within an area designated under section 1(7) of the
Continental Shelf Act 1964 (c. 29).
(10)
Expressions used in this section and in Part 1 of the 1989 Act have the same
meanings in this section as in that Part.
90
Extension of transmission licences offshore
15
(1)
This section applies where, at the commencement of this section, a
transmission licence is in force that authorises a person to co-ordinate and
direct the flow of electricity onto and over a transmission system by means of
which electricity is transmitted within Great Britain, or within an area of Great
Britain (the “co-ordination licence”).
20
(2)
The Secretary of State may make such modifications of the co-ordination
licence as he considers appropriate for the purpose of applying the
authorisation and conditions of the licence in relation to the transmission of
electricity within one or both of the following—
(a)
an area of the territorial sea adjacent to Great Britain; and
25
(b)
an area designated under section 1(7) of the Continental Shelf Act 1964.
(3)
The modifications that may be made by the Secretary of State under subsection
(2) include such modifications of the co-ordination licence (including
modifications of the conditions included in it) as the Secretary of State
considers appropriate for incidental, consequential or transitional purposes.
30
(4)
Where the Secretary of State considers it appropriate to do so for purposes that
in relation to modifications made under subsection (2) are incidental or
consequential purposes, he may make—
(a)
modifications of the conditions of a particular licence (other than the
co-ordination licence);
35
(b)
modifications of the standard conditions of licences of any type.
(5)
Before making a modification under this section, the Secretary of State must
consult—
(a)
the holder of any licence being modified; and
(b)
such other persons as he considers appropriate.
40
(6)
Subsection (5) may be satisfied by consultation that took place wholly or partly
before the commencement of this section.
(7)
The Secretary of State must publish every modification made by him under this
section.
(8)
The publication must be in such manner as the Secretary of State considers
45
appropriate.

Energy Bill [HL]
Part 2 — Sustainability and Renewable Energy Sources
Chapter 2 — Offshore production of energy
71

(9)
A modification under subsection (2) or (4)(a) of part of a standard condition of
a licence does 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.
(10)
Where the Secretary of State makes modifications under subsection (4)(b) of
the standard conditions of licences of any type, GEMA must—
5
(a)
make (as nearly as may be) the same modifications of those standard
conditions for the purposes of their incorporation in licences of that
type granted after that time; and
(b)
publish the modifications in such manner as it considers appropriate.
(11)
The Secretary of State’s powers under this section are exercisable only during
10
the eighteen months beginning with the commencement of this section.
(12)
Expressions used in this section and in Part 1 of the 1989 Act have the same
meanings in this section as in that Part.
91
Competitive tenders for offshore transmission licences
After section 6B of the 1989 Act (applications for transmission licences) insert—
15
“6C
Competitive tenders for offshore transmission licences
(1)
The Authority may by regulations make such provision as appears to it
to be appropriate for facilitating the making, in prescribed cases, of a
determination on a competitive basis of the person to whom an
offshore transmission licence is to be granted.
20
(2)
That provision may include—
(a)
provision, in prescribed cases, for the publication of a proposal
to grant an offshore transmission licence;
(b)
provision for the inclusion in such a proposal of an invitation to
apply for such a licence;
25
(c)
provision restricting the making of applications for offshore
transmission licences and imposing requirements as to the
period within which they must be made;
(d)
provision for regulating the manner in which applications are
considered and determined.
30
(3)
Regulations under this section—
(a)
may make provision by reference to a determination by the
Authority or to the opinion of the Authority as to any matter;
and
(b)
may dispense with or supplement provision made in relation to
35
applications for transmission licences by or under section 6A or
6B above.
(4)
The approval of the Secretary of State is required for the making of
regulations under this section.
(5)
In this section—
40

‘offshore transmission licence’ means a transmission licence
authorising anything that forms part of a transmission system
to be used for purposes connected with offshore transmission;
and

Energy Bill [HL]
Part 2 — Sustainability and Renewable Energy Sources
Chapter 2 — Offshore production of energy
72


‘prescribed’ means prescribed in or determined under regulations
made by the Authority.
(6)
In subsection (5) ‘offshore transmission’ means the transmission within
an area of offshore waters of electricity generated by a generating
station in such an area.
5
(7)
In subsection (6) ‘offshore waters’ means—
(a)
waters in or adjacent to Great Britain which are between the
mean low water mark and the seaward limits of the territorial
sea; and
(b)
waters within an area designated under section 1(7) of the
10
Continental Shelf Act 1964.”
92
Consents for generating stations offshore
(1)
In section 36(1) of the 1989 Act (consent required for construction etc. of
generating stations), after “constructed” insert “at a relevant place (within the
meaning of section 4), and a generating station at such a place shall not be”.
15
(2)
Before paragraph 8 of Schedule 8 to that Act (procedure for consents under
sections 36 and 37) insert—
“Generating stations not within areas of relevant planning authorities
7A    (1)
This paragraph applies to every case where an application for a
consent under section 36 of this Act relates to—
20
(a)
the construction or operation of a generating station the
whole or a part of which is to be, or is, at a place that is not
within the area of a relevant planning authority; or
(b)
the extension of a generating station at or to a place the whole
or a part of which is not within such an area.
25
      (2)
This Schedule shall have effect in relation to cases to which this
paragraph applies with the following modifications.
     (3)
In paragraph 1(1), for the words from ‘land to which’ onwards
substitute ‘place to which the application relates, that is, the place
where it is proposed to construct the generating station, where the
30
proposed extension will be or where the station proposed to be
operated is situated.’
      (4)
Paragraph 2 does not apply where no part of the place to which the
application relates is within the area of a relevant planning authority.
      (5)
In paragraph 4—
35
(a)
in sub-paragraph (1)—
(i)
in paragraph (a), for ‘land’ substitute ‘place’; and
(ii)
in paragraph (b), for ‘in the locality’ substitute ‘in the
area specified in or determined in accordance with
regulations made by the Secretary of State’;
40
(b)
in sub-paragraph (2), for the words from ‘the locality’
onwards substitute ‘the area specified in or determined in
accordance with regulations made by the Secretary of State.’;
and
(c)
in sub-paragraph (3), for ‘in the locality’ substitute ‘who are
45
likely to be affected by the consent applied for if it is given’.

Energy Bill [HL]
Part 2 — Sustainability and Renewable Energy Sources
Chapter 2 — Offshore production of energy
73

      (6)
Paragraph 5 does not apply; but sub-paragraphs (7) to (10) apply
where—
(a)
a public inquiry is to be held in accordance with paragraph
2(2) or 3(2); and
(b)
the application for consent relates to a place a part of which
5
is in the area of one or more relevant planning authorities.
      (7)
Except in so far as the Secretary of State otherwise directs, an inquiry
held in accordance with paragraph 2(2) must be confined to so much
of the application as relates to land within the area of the authority
by whom an objection has been made.
10
      (8)
The Secretary of State must have regard to objections made
otherwise than by the authority in question in determining whether
to give a direction under sub-paragraph (7) and in determining
(where he gives one) what direction to give.
      (9)
The Secretary of State may direct that separate inquiries may be held
15
in relation to any or each of the following—
(a)
so much of the application as relates to land within the area
of a particular relevant planning authority;
(b)
so much of the application as relates to anywhere that is not
within the area of a relevant planning authority.
20
     (10)
For the purposes of sub-paragraph (7) a planning authority that has
made an objection is to be treated as not having done so if the
Secretary of State proposes to accede to the application subject to
such modifications or conditions as meet that objection.”
(3)
In section 36(9) of that Act (definition of extension), after “land” insert “or area
25
of waters”.
(4)
The functions conferred by virtue of this section on the Secretary of State are
not to be exercisable by the Scottish Ministers, except in pursuance of an Order
in Council made after the passing of this Act under section 63 of the Scotland
Act 1998 (c. 46).
30
93
Application of regulations under 1989 Act offshore
(1)
In section 29 of the 1989 Act (regulations relating to supply and safety), after
subsection (1) insert—
“(1A)
Regulations under this section may include provision for securing the
purposes mentioned in subsection (1) in relation to the territorial sea
35
adjacent to Great Britain or any Renewable Energy Zone.”
(2)
In section 30 of that Act (electrical inspectors), after subsection (3) insert—
“(3A)
The regulations that may be made under this section include
regulations—
(a)
imposing duties on electrical inspectors in relation to anything
40
in the territorial sea adjacent to Great Britain or a Renewable
Energy Zone; or
(b)
making any other provision authorised by this section in
relation to activities carried on there.”