sc170902.13-19

House of Commons

Session 2005 - 06
Internet Publications
Other Bills before Parliament

S.C.C.
13

House of Commons

Thursday 9th February 2006

Standing Committee Proceedings

Standing Committee C

Climate Change and Sustainable Energy Bill

[second Sitting]

Mark Lazarowicz

Agreed to

To move, That, if proceeedings on the Climate Change and Sustainable Energy Bill are

not completed at this day’s sitting, the Committee do meet on Tuesday 28th February at

Four o’clock.

Mark Lazarowicz

Agreed to

To move, That the remaining proceedings on the Bill be taken in the following order,

namely, new Clauses of which notice was given on or before 8th February 2006 other than

new Clauses relating to commencement, Clause 5, remaining new Clauses, Clauses 11 to

14, new Schedules, remaining proceedings on the Bill.

NEW CLAUSES OF WHICH NOTICE WAS GIVEN ON OR BEFORE 8TH FEBRUARy 2006

OTHER THAN NEW CLAUSES RELATING TO COMMENCEMENT

Fiscal and economic measures

Mark Lazarowicz

Not called  NC1

To move the following Clause:—

‘(1)
The Chancellor of the Exchequer must at least once in every year consider ways

in which fiscal and economic measures may be used to assist with

microgeneration and energy efficiency.

(2)
The Chancellor of the Exchequer may, if he considers it expedient to do so,

discharge his duty pursuant to subsection (1) as part of the budget process.

(3)
The Chancellor of the Exchequer shall publish the results of his considerations

pursuant to subsection (1) in any way that he thinks fit.

S.C.C.Standing Committee Proceedings: 9th February 2006
14

Climate Change and Sustainable Energy Bill, continued

(4)
This section shall come into force on 1st April 2007.’.

National targets for microgeneration

Mark Lazarowicz

As amended, added  nc5

To move the following Clause:—

‘(1)
The Secretary of State must, during the period beginning with 1st November 2008

and ending with 31st March 2009—

(a)
designate one or more national microgeneration targets, and

(b)
publish a statement of that fact together with a copy of the target or
5
targets.

(2)
But subsection (1) does not apply unless on 1st November 2008 the Secretary of

State considers that it would be appropriate to designate one or more targets under

that subsection.

(3)
For the purposes of this section, a national microgeneration target is a target in
10
respect of—

(a)
the number of microgeneration systems installed in England and Wales,

and

(b)
the number of electricity microgenerating systems installed in Scotland,


as at a date specified in the target (“the target date”).
15
(4)
The matters to which the Secretary of State must have regard in determining

whether subsection (1) applies include, in particular—

(a)
the number of microgeneration systems installed in England and Wales,

(b)
the number of electricity microgenerating systems installed in Scotland,

(c)
the strategy published under section 82 of the Energy Act 2004 (c. 20)
20
(microgeneration), and

(d)
the results of any research carried out into the effect that designating a

target under subsection (1) could be expected to have on the number of

microgeneration systems that are installed in England and Wales, and the

number of electricity microgenerating systems that are installed in
25
Scotland, by the target date.

(5)
If a target is designated under subsection (1), the Secretary of State must take

reasonable steps to secure that the target is met.

(6)
At any time before the target date, the Secretary of State may review the target

and, if he considers it appropriate to do so, revise the target.
30
(7)
If under subsection (6) the Secretary of State revises a target—

(a)
he must publish a statement of that fact together with a copy of the

revised target, and

(b)
the revised target is treated for the purposes of subsection (5) and section

(National microgeneration targets: modification of section 1 of the
35
Sustainable Energy Act 2003) as the target designated under subsection

(1).

(8)
In this section—

“electricity microgenerating system” means a microgeneration system for

generating electricity;

S.C.C.Standing Committee Proceedings: 9th February 2006
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Climate Change and Sustainable Energy Bill, continued

40
“microgeneration system” means any plant or system of plant for generating

electricity or producing heat—

(a)
which, in generating electricity or (as the case may be) producing

heat, relies wholly or mainly on a source of energy or a

technology mentioned in subsection (7) of section 82 of the
45
Energy Act 2004 (c. 20), and

(b)
whose capacity to generate electricity or (as the case may be) to

produce heat does not exceed the capacity mentioned in

subsection (8) of that section;

“plant” includes any equipment, apparatus or appliance.’.

As an Amendment to Mark Lazarowicz’s proposed New Clause (National targets for

microgeneration) (NC5):—

Gregory Barker

Agreed to  (a)

Line  27,  at end insert—

‘(5A)
If the Secretary of State does not designate a target under subsection (1) he shall

publish forthwith a statement of his reasons.’.

National microgeneration targets: modification of section 1 of the Sustainable Energy Act

2003

Mark Lazarowicz

Added  nc6

To move the following Clause:—

‘(1)
This section applies if a target is designated under section (National targets for

microgeneration).

(2)
Section 1 of the Sustainable Energy Act 2003 (c. 30) applies in relation to every

relevant sustainable energy report as if after subsection (1B) there were

inserted—

“(1BA)
The report must also include such information as the Secretary of State

considers appropriate about things done during the reporting period for

the purpose of meeting any target designated under section (National

targets for microgeneration) of the Climate Change and Sustainable

Energy Act 2005 (national targets for microgeneration).”,


and as if, in subsection (1C), for “subsection (1A)” there were substituted

“subsections (1A) and (1BA)”.

(3)
For the purposes of this section—

(a)
a sustainable energy report is a relevant sustainable energy report in

relation to a target designated under subsection (1) of section (National

targets for microgeneration) if the reporting period to which the report

relates includes the period, or any part of the period, to which the target

relates,

(b)
a target designated under subsection (1) of that section relates to the

period beginning when it is designated and ending with the target date

(within the meaning of that section),

S.C.C.Standing Committee Proceedings: 9th February 2006
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Climate Change and Sustainable Energy Bill, continued

(c)
“reporting period”, in relation to a sustainable energy report, has the

meaning given by section 1 of the Sustainable Energy Act 2003 (c. 30),

and

(d)
“sustainable energy report” means a sustainable energy report which is

required to be published under that section.’.

Reports under section 1 of the Sustainable Energy Act 2003: microgeneration

Mark Lazarowicz

Added  nc7

To move the following Clause:—

‘In section 1(1A) of the Sustainable Energy Act 2003 (c. 30) (annual reports on

progress towards sustainable energy aims)—

(a)
omit “and” at the end of paragraph (b), and

(b)
at the end of paragraph (c) insert “; and

(d)
things done during that period for the purpose of

implementing the strategy for the promotion of

microgeneration in Great Britain published under

section 82 of the Energy Act 2004.”.’.

Sale of electricity generated by microgeneration: power to modify distribution and supply

licences etc

Mark Lazarowicz

Added  nc8

To move the following Clause:—

‘(1)
Where the Secretary of State considers it appropriate to do so for the purpose of

increasing the amount of the electricity consumed in Great Britain that is

generated by microgeneration, he may make—

(a)
relevant modifications of the conditions of a distribution licence or a

supply licence held by a particular person;

(b)
relevant modifications of the standard conditions of distribution licences

or supply licences.

(2)
For the purposes of subsection (1), “relevant modifications” means—

(a)
in relation to a distribution licence, modifications—

(i)
imposing conditions requiring the holder of such a licence to

provide information to holders of supply licences about the

connection to the distribution system, or use, of microgeneration

plant, or

(ii)
for the purposes of enabling or facilitating holders of supply

licences to satisfy any conditions of such licences of a

description mentioned in paragraph (b), and

S.C.C.Standing Committee Proceedings: 9th February 2006
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Climate Change and Sustainable Energy Bill, continued

(b)
in relation to a supply licence, modifications imposing conditions

requiring the holder of such a licence to offer to acquire electricity

generated by microgeneration by the licenceholder’s customers;


and also includes incidental, consequential or transitional modifications.

(3)
A modification under subsection (1)(a) of part of a standard condition of a

distribution licence or supply 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 Electricity Act 1989 (c. 29).

(4)
Where the Secretary of State makes modifications under subsection (1)(b) of the

standard conditions of distribution licences or supply licences, the Gas and

Electricity Markets Authority must make (as nearly as may be) the same

modifications of those standard conditions for the purposes of their incorporation

in distribution licences or, as the case may be, supply licences granted after that

time.

(5)
Conditions included in a distribution licence or supply licence by virtue of a

power conferred by this section—

(a)
need not relate to the activities authorised by the licence, and

(b)
may do any of the things authorised in relation to licences of that kind by

section 7(2) to (4) of the Electricity Act 1989 (c. 29) (which applies to the

Gas and Electricity Markets Authority’s power with respect to licence

conditions under section 7(1)(a) of that Act).

(6)
In this section and section (Exercise of powers under section (Sale of electricity

generated by microgeneration: power to modify distribution and supply licences

etc))—

“distribution licence” has the meaning given by section 6(1)(c) of the

Electricity Act 1989 (c. 29) (licences authorising supply, etc);

“microgeneration plant” means plant used, or intended for use, for

generating electricity by microgeneration, where “plant” has the same

meaning as it has in section 82 of the Energy Act 2004 (c. 20)

(microgeneration);

“supply licence” has the meaning given by section 6(1)(d) of the Electricity

Act 1989 (c. 29).

(7)
In section 33(1) of the Utilities Act 2000 (c. 27) (standard conditions of electricity

licences)—

(a)
omit “or” at the end of paragraph (a), and

(b)
after paragraph (b) insert “or

(c)
under section (Sale of electricity generated by

microgeneration: power to modify distribution and

supply licences etc) of the Climate Change and

Sustainable Energy Act 2005 (sale of electricity

generated by microgeneration: power to modify

distribution and supply licences etc)”.’.

Exercise of powers under section (Sale of electricity generated by microgeneration:

power to modify distribution and supply licences etc)

Mark Lazarowicz

Added  nc9

To move the following Clause:—

S.C.C.Standing Committee Proceedings: 9th February 2006
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Climate Change and Sustainable Energy Bill, continued

‘(1)
Before making any modification of a distribution licence or a supply licence

under section (Sale of electricity generated by microgeneration: power to modify

distribution and supply licences etc), the Secretary of State must consult—

(a)
the holder of any licence being modified, and

(b)
such other persons as he considers appropriate.

(2)
The Secretary of State must publish every modification made by him under that

section.

(3)
The publication must be in such manner as the Secretary of State considers

appropriate.

(4)
Where the Gas and Electricity Markets Authority makes modifications of

standard conditions under section (Sale of electricity generated by

microgeneration: power to modify distribution and supply licences etc)(4), it

must publish the modifications in such manner as it considers appropriate.

(5)
The Secretary of State’s powers under section (Sale of electricity generated by

microgeneration: power to modify distribution and supply licences etc) are

exercisable only during the period which—

(a)
begins with the first anniversary, and

(b)
ends with the third anniversary,


of the commencement of that section.

(6)
Sections 3A to 3D of the Electricity Act 1989 (c. 29) (principal objectives and

general duties) apply to the carrying out of functions conferred on the Secretary

of State, or on the Gas and Electricity Markets Authority, by section (Sale of

electricity generated by microgeneration: power to modify distribution and

supply licences etc) or this section as they apply in relation to the carrying out of

functions conferred on him, or on it, by or under Part 1 of that Act.’.

Functions of the Gas and Electricity Markets Authority in relation to microgeneration

Mark Lazarowicz

Added  nc10

To move the following Clause:—

‘In section 47 of the Electricity Act 1989 (c. 29) (functions of the Gas and

Electricity Markets Authority), after subsection (1) insert—

“(1A)
The activities to which subsection (1) applies also include, in particular,

activities connected with the generation of electricity by microgeneration

or with the transmission and supply of electricity so generated.

(1B)
In subsection (1A), “microgeneration” has the same meaning as it has in

section 82 of the Energy Act 2004 (Secretary of State’s strategy for

promotion of microgeneration)”.’.

S.C.C.Standing Committee Proceedings: 9th February 2006
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Climate Change and Sustainable Energy Bill, continued

Adjustment of transmission charges for electricity

Malcolm Wicks

Added  NC2

To move the following Clause:—

‘(1)
Section 185 of the Energy Act 2004 (c. 20) (adjustment of transmission charges)

is amended as provided in subsections (2) to (4).

(2)
In subsection (1)(a), for “of Great Britain” substitute “in Great Britain”.

(3)
After subsection (3) insert—

“(3A)
If subsection (1) is satisfied in the case of two or more separate areas in

Great Britain, an order under this section may relate to both, or all, of

those areas.

(3B)
This section has effect in relation to an order which, by virtue of

subsection (3A), relates to two or more areas as if references in

subsections (2), (3) and (10) to the area to which the scheme established

by the order relates (however expressed) were references to the combined

area.”

(4)
In subsection (11), for “more than ten years after the commencement of this

section” substitute “later than 4 October 2024”.

(5)
Subsection (7) of section 185 may be satisfied in relation to any order to be made

under that section after the commencement of this section by publications and

consultation taking place wholly or partly before that commencement.’.

Renewable heat

Malcolm Wicks

Added  NC3

To move the following Clause:—

‘(1)
It shall be the duty of the Secretary of State to take such steps as he considers

appropriate to promote the use of heat produced from renewable sources.

(2)
For the purposes of subsection (1), heat produced by any plant is produced from

renewable sources to the extent that the plant is fuelled by renewable sources.
5
(3)
The steps which the Secretary of State may take for the purposes of subsection (1)

include, in particular, steps for the purpose of promoting—

(a)
the installation of plant which is or may be fuelled by renewable sources,

(b)
the adaptation of plant so as to enable it to be fuelled by renewable

sources, or
10
(c)
the production of heat by plant which is fuelled partly by renewable

sources and partly by other sources.

(4)
In this section—

“fossil fuel” means coal, substances produced directly or indirectly from

coal, lignite, natural gas, crude liquid petroleum, or petroleum products
15
(and “natural gas” and “petroleum products” have the same meanings as

in the Energy Act 1976 (c. 76));

“plant” includes any equipment, apparatus or appliance;