Energy Bill [HL]

House of Commons

Session 2003 - 04
Internet Publications
Other Bills before Parliament

Energy Bill [HL]

Energy Bill [HL]
Part 2 — Sustainability and Renewable Energy Sources
Chapter 3 — Decommissioning of offshore installations
92

(a)
organisations appearing to him to be representative of persons who
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
5
partly—
(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.
10
Supplementary provisions of Chapter 3 of Part 2
113
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
15
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;
20
(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);
25
(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.
30
(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
35
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
40
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.

Energy Bill [HL]
Part 2 — Sustainability and Renewable Energy Sources
Chapter 3 — Decommissioning of offshore installations
93

(6)
A person who contravenes the requirements of this section is guilty of an
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—
5
(a)
to participation on behalf of another person; or
(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 106.
114
Offences relating to decommissioning programmes
10
(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
two years or to a fine, or to both.
15
(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
(c)
by or with the consent of the Director of Public Prosecutions or (as the
20
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—
(a)
a director, manager, secretary or other similar officer of the body
25
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.
(4)
Where such an offence—
30
(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
proceeded against and dealt with accordingly.
35
(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.
(6)
Section 3 of the Territorial Waters Jurisdiction Act 1878 (c. 73) (consents to
40
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—

Energy Bill [HL]
Part 2 — Sustainability and Renewable Energy Sources
Chapter 4 — Renewables obligations
94

(a)
a provision of this Chapter; or
(b)
regulations made under section 112;

“director”, in relation to a body corporate whose affairs are managed by
its members, means a member of the body corporate.
115
Interpretation of Chapter 3 of Part 2
5
(1)
Expressions used in this Chapter and in Chapter 2 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 106(2);

“extend” and “extension”, in relation to an electric line, have the same
10
meanings as they have in Chapter 2 of this Part and this Chapter in
relation to a renewable energy installation;

“recipient”, in relation to a notice under section 106, means the person or
any one or more of the persons to whom that notice was given;

“relevant object” has the meaning given by section 106(10);
15

“security” includes—
(a)
a charge over a bank account or any other asset;
(b)
a deposit of money;
(c)
a performance bond or guarantee;
(d)
a letter of credit; and
20
(e)
a letter of comfort;

“waters regulated under this Chapter” has the meaning given by section
106(10).
(3)
References in this Chapter to providing a security include references—
(a)
to securing its maintenance or renewal; and
25
(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
programme was submitted are references, in the case of a programme
30
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
are British citizens, and
35
(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 4
Renewables obligations
116
Discharge of renewables obligation in Great Britain by payment
40
(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”.

Energy Bill [HL]
Part 2 — Sustainability and Renewable Energy Sources
Chapter 4 — Renewables obligations
95

(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
substitute—
“(a)
that an electricity supplier may (in whole or in part) discharge
its renewables obligation by making a payment to the Authority
5
before the day specified as the day by which evidence must be
produced for the purposes of section 32(3); and
(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
10
the order where the payment for which the order provides is
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)—
15
(a)
after paragraph (a) insert—
“(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
20
section 32(3);”
(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”.
25
(4)
After subsection (3) of that section insert—
“(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
30
for the purposes of section 32(3), and
(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
35
effect subject to provision made by virtue of this subsection).”
(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.”
40
(6)
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.
117
Issue of green certificates in Great Britain
45
(1)
Section 32B of the 1989 Act (green certificates) is amended as follows.

Energy Bill [HL]
Part 2 — Sustainability and Renewable Energy Sources
Chapter 4 — Renewables obligations
96

(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).”
5
(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”.
10
(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
15
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
20
(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
25
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
30
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—
35
“(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
40
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
45
1992.”

Energy Bill [HL]
Part 2 — Sustainability and Renewable Energy Sources
Chapter 4 — Renewables obligations
97

(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.
118
Use of green certificates issued in Northern Ireland
5
(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
(b)
subject to such conditions as may be so specified,
10

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.
(2)
In this section ‘Northern Ireland certificate’ means a certificate issued
15
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).”
(2)
The requirements of section 32(7) of the 1989 Act (consultation before making
20
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
Part 7 of that Order to take account of amendments of corresponding Great
25
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.
119
Distributions to Northern Ireland suppliers
(1)
In section 32C of the 1989 Act (payment of money to discharge renewables
30
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.”
(2)
The requirements of section 32(7) of the 1989 Act (consultation before making
35
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.
120
Supplementary provision relating to renewables obligation in Great Britain
(1)
In subsection (3) of section 32 of the 1989 Act (definition of renewables
40
obligation), for “and 32C” substitute “to 32C”.

Energy Bill [HL]
Part 2 — Sustainability and Renewable Energy Sources
Chapter 4 — Renewables obligations
98

(2)
In subsection (7) of that section, for paragraph (d) substitute—
“(d)
such generators of electricity from renewable sources as he
considers appropriate; and”.
(3)
After subsection (8) of that section insert—
“(8A)
In this section and in sections 32A to 32C—
5

‘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;
10

‘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
15
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.”
20
(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
25
commencement of this section.
121
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.
30
(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—
35
(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
40
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