Climate Change and Sustainable Energy Bill

House of Commons

Session 2005 - 06
Internet Publications
Other Bills before Parliament

Climate Change and Sustainable Energy Bill

Climate Change and Sustainable Energy Bill
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A
Bill
To
make provision about the reduction of emissions of greenhouse gases, the
alleviation of fuel poverty, the promotion of microgeneration and the
introduction of a renewable heat obligation; and for connected purposes.
Be it enacted by the Queen’s most Excellent Majesty, by and with the advice and
consent of the Lords Spiritual and Temporal, and Commons, in this present
Parliament assembled, and by the authority of the same, as follows:—
Purposes and reports
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Purposes
(1)
The principal purpose of this Act is to enhance the United Kingdom
contribution to combating climate change.
(2)
In performing functions under this Act, the relevant persons and bodies shall
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have regard to—
(a)
the principal purpose set out in subsection (1);
(b)
the desirability of alleviating fuel poverty; and
(c)
the desirability of securing a diverse and viable long-term energy
supply.
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(3)
In this section “the relevant persons and bodies” means—
(a)
the Prime Minister;
(b)
the Chancellor of the Exchequer;
(c)
the Secretary of State;
(d)
any public authority.
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Annual report on greenhouse gas emissions
(1)
It shall be the duty of the Prime Minister in the course of each year to lay before
Parliament a report on—
(a)
steps that the government has taken to reduce emissions of greenhouse
gases during the period to which the report relates; and
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Bill 17 54/1

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(b)
the level of emissions of greenhouse gases in the United Kingdom,
including any increase or decrease in that level recorded during the
period to which the report relates.
(2)
It shall be the duty of the Prime Minister, in the course of each year and
following the laying before Parliament of the report under subsection (1) in
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that year, to make a motion for a resolution approving that report in the House
of Commons.
(3)
It shall be the duty of a Minister of the Crown, in the course of each year and
following the laying before Parliament of the report under subsection (1) in
that year, to make a motion for a resolution approving that report in the House
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of Lords.
(4)
In this section “greenhouse gases” means—
(a)
carbon dioxide;
(b)
methane;
(c)
nitrous oxide;
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(d)
hydrofluorocarbons;
(e)
perfluorocarbons;
(f)
sulphur hexafluoride.
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Fiscal and economic report
(1)
The Chancellor of the Exchequer must, within one year of the passing of this
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Act, and annually thereafter, prepare and publish a report on such fiscal
measures he considers appropriate to assist with microgeneration and energy
efficiency.
(2)
In preparing the report under subsection (1), the Chancellor of the Exchequer
shall take reasonable steps to consult local authorities and such persons as in
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his opinion have an interest in—
(a)
enhancing the United Kingdom contribution to combating climate
change, and
(b)
alleviating fuel poverty.
Microgeneration
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National targets for microgeneration
(1)
It shall be the duty of the Secretary of State to establish an overall target for the
take-up of microgeneration in Great Britain.
(2)
The target established in accordance with subsection (1) may be expressed in
relation to—
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(a)
the reduction in emissions of carbon dioxide in Great Britain as a result
of the increase of the take-up of microgeneration within a specified
period of time, or
(b)
the number of microgeneration installations operating within a
specified period of time, or
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(c)
both those things.
(3)
The target established in accordance with subsection (1) shall be contained
within a report that is laid before each House of Parliament.

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(4)
A report under subsection (3) shall contain such information as the Secretary
of State considers appropriate relating to the expected contribution towards
meeting the target to be made by each of the relevant sources of energy and
technologies.
(5)
It shall be the duty of the Secretary of State to take such steps as he considers necessary
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to secure that the target established in accordance with subsection (1) is met.
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Local targets for microgeneration
(1)
It shall be the duty of each energy conservation authority in England and
Wales and Scotland to consider the contribution that microgeneration can
make to the fulfilment of the authority’s statutory duties and to the
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performance of its other functions relating to—
(a)
reducing emissions of carbon dioxide, and
(b)
alleviating fuel poverty.
(2)
In pursuance of its duty under subsection (1), an energy conservation authority
shall establish such local targets relating to microgeneration as it considers
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appropriate.
(3)
Targets established under subsection (2) shall be published in such form as the
authority establishing them considers appropriate.
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Annual reports on microgeneration strategy, etc.
The Secretary of State shall each year lay before Parliament a report on—
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(a)
the implementation of measures contained in the microgeneration
strategy under section 82 of the Energy Act 2004 (c. 20) in the form in
which it has most recently been published;
(b)
the achievement of any targets set for microgeneration pursuant to that
Act or otherwise; and
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(c)
the way in which that implementation and any steps towards achieving
any targets have assisted in—
(i)
reducing emissions of carbon dioxide, and
(ii)
alleviating fuel poverty.
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Sale of electricity produced by domestic microgeneration
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(1)
It shall be the duty of the Secretary of State, within twelve months of the
passing of this Act, to make an order establishing a scheme enabling electricity
produced by domestic microgeneration to be sold.
(2)
After the coming into force of the order made under subsection (1), a licensed
electricity supplier may only supply electricity to a domestic customer if that
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supplier also undertakes to buy at market rate any electricity produced by that
customer (or any group of customers of which that customer is a member) by
microgeneration.
(3)
In this section—
(a)
“domestic customer”,
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(b)
“domestic microgeneration”,
(c)
“group of customers”, and
(d)
“market rate”,

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have the meaning to be prescribed by regulations made by the Secretary of
State.
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Microgeneration and access to green energy certificates
(1)
In exercising any power or function conferred by any Act of Parliament, order
or regulations relating to green energy certificates, it shall be the duty of a
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public authority to have regard to the desirability of—
(a)
promoting microgeneration, and
(b)
minimising the cost and administrative burdens for domestic
customers in installing or operating, or seeking to instal or operate,
microgeneration installations.
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(2)
In performing its duty under (1), the Gas and Electricity Markets Authority
shall have particular regard to the relevance of that duty to the performance of
its functions relating to—
(a)
electricity metering (within the meaning of Schedule 7 to the Electricity
Act 1989 (c. 29)), and
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(b)
the collection of data from licensed electricity suppliers and others.
(3)
In this section—
“domestic customers” has the meaning to be prescribed by the Secretary
of State by regulations;
“green energy certificates” means—
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(a)
Renewable Obligation Certificates,
(b)
Levy Exemptions Certificates,
(c)
Renewable Electricity Guarantee of Origin Certificates;
“Levy Exemption Certificates” means certificates of that name issued in
exercise of powers under the Climate Change Levy (General)
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Regulations 2001 (S.I. 2001/838);
“Renewable Electricity Guarantee of Origin Certificates” means
certificates issued in exercise of powers under the Electricity
(Guarantees of Origin of Electricity Produced from Renewable Energy
Sources) Regulations 2003 (S.I. 2003/2562);
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“Renewable Obligation Certificates” means any certificate certifying the
matters in section 32B(2A) of the Electricity Act 1989.
Community energy
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Promotion of community energy
(1)
It shall be the duty of the Secretary of State to take such steps as he considers
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appropriate to promote community energy.
(2)
In the exercise of his duty under subsection (1), the Secretary of State—
(a)
may make such payments to such persons as he thinks fit;
(b)
shall have regard to the desirability of promoting—
(i)
investment by others in community energy,
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(ii)
the provision of relevant legal and other advice to community
energy schemes and other persons, and
(iii)
the provision of model constitutions, guidance, standard
agreements and protocols for such schemes and other persons.

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(3)
In this section—
“community energy” means activities in a local area which are concerned
in whole or in part with the taking of measures which will assist in
doing any of the following things—
(a)
promoting sustainable energy,
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(b)
alleviating fuel poverty,
(c)
securing a diverse and viable long-term energy supply;
“community energy schemes” means any schemes which—
(a)
are owned by more than three persons ordinarily resident
within the same local authority area;
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(b)
are established on a not-for-profit basis; and
(c)
are concerned in whole or in part with the taking of measures
which will assist in doing any of the following things—
(i)
promoting sustainable energy,
(ii)
alleviating fuel poverty,
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(iii)
securing a diverse and viable long-term energy supply;
“sustainable energy” shall be construed in accordance with the provisions
of section 1 of the Sustainable Energy Act 2003 (c. 30).
Renewable heat
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Renewable heat obligation
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(1)
The Secretary of State may by regulations introduce a renewable heat
obligation.
(2)
Regulations under subsection (1) may—
(a)
require suppliers of heating fuel to demonstrate that a specified
proportion of the fuel they supply is derived from renewable heat
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sources,
(b)
establish targets for the proportion of heating fuel supplied that is
renewable, and
(c)
provide for penalties on suppliers that fail to meet those targets.
(3)
Regulations under subsection (1) shall prescribe the meaning of “suppliers of
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heating fuel” and “renewable heat sources”, but the prescribed meaning of the
latter term shall include—
(a)
solid, liquid or gaseous fuels produced from biomass,
(b)
passive solar heating systems, and
(c)
geothermal systems.
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(4)
In this section—
“biomass” means the biodegradable fraction of product and residues from
agriculture, forestry and related industries;
“passive solar heating systems” means systems for the collection, transfer,
storage and use of solar energy for space, water and process heating or
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cooling;
“geothermal systems” means systems for collecting stored or geothermal
energy from ground or water sources, including through the use of heat
pumps.