Energy Markets Bill

House of Commons

Session 2004 - 05
Internet Publications
Other Bills before Parliament

Energy Markets Bill

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(b)
that the holder of the relevant supply licence has not applied
under subsection (1) to convert that licence to a domestic energy
efficiency licence, and
(c)
that the holder of the relevant supply licence has received
written notice of the Authority’s intention to exercise its power
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under subsection (2) at least six months before that power is to
be exercised.
(4)
The application shall be made in such form and manner, and shall
contain, or be accompanied by, such information and documents and
such fee (if any), as may be prescribed.
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(5)
Within the prescribed period after the making of the application, the
applicant shall publish a notice of the application in the prescribed
manner.
(6)
Where the Authority proposes to refuse the application, it shall give to
the applicant a notice—
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(a)
stating that it proposes to refuse the application;
(b)
stating the reasons why it proposes to refuse the application;
and
(c)
specifying the time within which representations with respect
to the proposed refusal may be made,
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and shall consider any representations which are duly made and not
withdrawn.
(7)
Where the Authority grants a domestic energy efficiency licence in
consequence of an application under this section, it shall as soon as
practicable thereafter send a notice of the grant to any person who
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holds a licence and whose interests may, in the opinion of the
Authority, be affected by the grant.
(8)
In this section ‘prescribed’ means prescribed in regulations made by
the Authority.
(9)
Any sums received by the Authority under this section shall be paid
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into the Consolidated Fund.”
(5)
In section 7 (conditions of licences: general), after subsection (2A), insert—
“(2B)
Without prejudice to the generality of paragraph (a) of subsection (1),
conditions included in a domestic energy efficiency licence by virtue of
that paragraph may—
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(a)
require the licence holder to provide such services as may be
specified in the licence;
(b)
in particular, require the licence holder to provide such services
as may be specified in the licence that are necessary—
(i)
to secure that the number of premises that are supplied
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with electricity under the licence that are below the
thermal comfort level of SAP 70 is reduced, and
(ii)
to secure that the measures provided by the licence
holder to improve the heating, cooling, lighting and
thermal insulation of premises are additional to
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measures that would be provided under a supply
licence or otherwise;

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(c)
in particular, require the licence holder to take such other
measures as are, in the view of the Authority, appropriate in
order to improve or promote domestic energy efficiency;
(d)
require the licence holder to meet such conditions relating to the
price of electricity supplied to him falling within subsection
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(2C) as may be specified in the licence; and
(e)
exempt the licence holder from such other licence conditions as
the Authority determines to be appropriate, having regard to
the considerations specified in subsection (2D).
(2C)
A condition falls within this subsection if it relates to the differential in
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price between—
(a)
electricity sold by the holder of a domestic energy efficiency
licence on the one hand, and
(b)
electricity purchased by the holder of a domestic energy
efficiency licence which was generated by microgeneration on
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the other.
(2D)
The considerations specified in this subsection are—
(a)
the extent of progress towards meeting the targets as
established or revised under section 6ZA(1),
(b)
the extent to which exemption from a particular condition
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would assist in the development of collective agreements for
the supply of services under a domestic energy efficiency
licence in a particular locality, and
(c)
the extent to which exemption from a particular condition
would assist in the provision of services to premises in new
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housing developments under a domestic energy efficiency
licence.
(2E)
For the purposes of subsection (2B)(b)(i), ‘SAP’ means the Standard
Assessment Procedure rating determined in accordance with the
procedure described in the document entitled ‘Government’s Standard
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Assessment Procedure for Energy Rating of Dwellings’ (2001 edition).”
Electricity transmission
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Additional standard condition for transmission licence
(1)
The Secretary of State shall determine an additional standard condition in
relation to transmission licences for the purpose of reducing the differential in
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price between—
(a)
electricity sold by the holder of a transmission licence on the one hand,
and
(b)
electricity purchased by the holder of a transmission licence from the
holder of a distribution licence, a supply licence or a domestic energy
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efficiency licence on the other.
(2)
The Secretary of State shall publish the condition determined under subsection
(1) in such manner as he considers appropriate.
(3)
A condition published in accordance with subsection (2) shall be a standard
condition for the purposes of transmission licences, subject to any
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modifications of the standard conditions for the purposes of licences of that
type made—

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(a)
under Part 1 of the 1989 Act, or
(b)
under the 2004 Act,

after the determination under subsection (1).
(4)
Section 137(4) of the 2004 Act (provisions of standard conditions) applies to a
condition under this section as it applies to a condition to which that subsection
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relates.
(5)
After section 8A(1A) of the 1989 Act, insert—
“(1ZB)
Subject to subsection (2), each condition which by virtue of section 8 of
the Energy Markets Act 2005 is a standard condition for the purposes
of transmission licences shall be incorporated by reference in each
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transmission licence granted on or after the day on which section 8 of
that Act comes into force.”
(6)
In this section “distribution licence”, “supply licence”, “domestic energy
efficiency licence” and “transmission licence” have the meanings given in
section 6(1) of the 1989 Act (licences authorising supply, etc.).
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Miscellaneous and final provisions
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Consequential amendments
The Schedule (which contains consequential amendments) shall have effect.
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Interpretation
In this Act—
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“the 1986 Act” means the Gas Act 1986 (c. 44);
“the 1989 Act” means the Electricity Act 1989 (c. 29);
“the 2003 Act” means the Sustainable Energy Act 2003 (c. 30);
“the 2004 Act” means the Energy Act 2004 (c. 20);
“the Authority” means the Gas and Electricity Markets Authority;
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“the relevant energy markets” means—
(a)
the gas supply market regulated under Part 1 of the 1986 Act
(gas supply), and
(b)
the electricity market regulated under Part 1 of the 1989 Act
(electricity supply).
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Financial provisions
(1)
There shall be paid out of money provided by Parliament any expenditure incurred by
the Secretary of State by virtue of this Act.
(2)
Any sums received by the Authority under or by virtue of any enactment the receipt of
which is attributable to this Act shall be paid into the Consolidated Fund.
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Short title, commencement and extent
(1)
This Act may be cited as the Energy Markets Act 2005.
(2)
Sections 2 to 9 shall come into force on such date as the Secretary of State may
by order determine.

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(3)
The power of the Secretary of State to make an order under subsection (2) is a
power exercisable by statutory instrument.
(4)
The power conferred under subsection (2) includes power—
(a)
to make different provision for different cases (including different
provision in respect of different areas);
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(b)
to bring provisions into force in relation to a specified area or a
specified description of persons for the purpose of conducting a trial of
the arrangements under which the provisions will have effect when
brought into force in relation to other areas or descriptions of persons;
(c)
to make provision subject to such exemptions and exceptions as the
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Secretary of State thinks fit; and
(d)
to make such incidental, supplemental, consequential and transitional
provision as the Secretary of State thinks fit.
(5)
This Act does not extend to Northern Ireland.