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Climate Change and Sustainable Energy Bill


Climate Change and Sustainable Energy Bill

1

 

A

Bill

[AS AMENDED IN STANDING COMMITTEE C]

To

make provision about the reduction of emissions of greenhouse gases, the

alleviation of fuel poverty, the promotion of microgeneration and the use of

heat produced from renewable sources, the renewables obligation relating to

the generation and supply of electricity and the adjustment of transmission

charges for electricity; 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

1       

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

5

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 Secretary of State;

(b)   

any public authority.

 
Bill 13354/1
 
 

Climate Change and Sustainable Energy Bill

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Reports on greenhouse gas emissions

2       

Annual report on greenhouse gas emissions

(1)   

It shall be the duty of the Secretary of State in the course of each calendar year

to lay before Parliament a report on—

(a)   

steps taken by government departments during the previous calendar

5

year to reduce emissions of greenhouse gases; and

(b)   

the level of emissions of greenhouse gases in the United Kingdom

during the previous calendar year, including any increase or decrease

in that level recorded during that year.

(2)   

In this section “greenhouse gases” means—

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(a)   

carbon dioxide;

(b)   

methane;

(c)   

nitrous oxide;

(d)   

hydrofluorocarbons;

(e)   

perfluorocarbons; and

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(f)   

sulphur hexafluoride.

Microgeneration

3       

National targets for microgeneration

(1)   

The Secretary of State must, during the period beginning with 1st November

2008 and ending with 31st March 2009—

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(a)   

designate one or more national microgeneration targets, and

(b)   

publish a statement of that fact together with a copy of the target or

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

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under that subsection.

(3)   

For the purposes of this section, a national microgeneration target is a target in

respect of—

(a)   

the number of microgeneration systems installed in England and

Wales, and

30

(b)   

the number of electricity microgenerating systems installed in

Scotland,

   

as at a date specified in the target (“the target date”).

(4)   

The matters to which the Secretary of State must have regard in determining

whether subsection (1) applies include, in particular—

35

(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)

40

(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

 
 

Climate Change and Sustainable Energy Bill

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the number of electricity microgenerating systems that are installed in

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)   

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

5

publish forthwith a statement of his reasons.

(7)   

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.

(8)   

If under subsection (7) the Secretary of State revises a target—

(a)   

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

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revised target, and

(b)   

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

section 4 as the target designated under subsection (1).

(9)   

In this section—

“electricity microgenerating system” means a microgeneration system for

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generating electricity;

“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

20

a technology mentioned in subsection (7) of section 82 of the

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;

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“plant” includes any equipment, apparatus or appliance.

4       

National microgeneration targets: modification of section 1 of the Sustainable

Energy Act 2003

(1)   

This section applies if a target is designated under section 3.

(2)   

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

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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 3 of the

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Climate Change and Sustainable Energy Act 2006 (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—

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(a)   

a sustainable energy report is a relevant sustainable energy report in

relation to a target designated under subsection (1) of section 3 if the

reporting period to which the report relates includes the period, or any

part of the period, to which the target relates,

 
 

Climate Change and Sustainable Energy Bill

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(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),

(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),

5

and

(d)   

“sustainable energy report” means a sustainable energy report which is

required to be published under that section.

5       

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

In section 1(1A) of the Sustainable Energy Act 2003 (annual reports on progress

10

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

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microgeneration in Great Britain published under

section 82 of the Energy Act 2004.”

6       

Sale of electricity generated by microgeneration: power to modify

distribution and supply licences etc

(1)   

Where the Secretary of State considers it appropriate to do so for the purpose

20

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

25

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

30

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

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(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

40

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

45

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

modifications of those standard conditions for the purposes of their

 
 

Climate Change and Sustainable Energy Bill

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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

5

(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 7

10

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

Electricity Act 1989 (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)

15

(microgeneration);

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

Act 1989.

(7)   

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

electricity licences)—

20

(a)   

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

(b)   

after paragraph (b) insert “or

(c)   

under section 6 of the Climate Change and Sustainable

Energy Act 2006 (sale of electricity generated by

microgeneration: power to modify distribution and

25

supply licences etc).”.

7       

Exercise of powers under section 6

(1)   

Before making any modification of a distribution licence or a supply licence

under section 6, the Secretary of State must consult—

(a)   

the holder of any licence being modified, and

30

(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.

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(4)   

Where the Gas and Electricity Markets Authority makes modifications of

standard conditions under section 6(4), it must publish the modifications in

such manner as it considers appropriate.

(5)   

The Secretary of State’s powers under section 6 are exercisable only during the

period which—

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(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 (principal objectives and general

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

45

 
 

Climate Change and Sustainable Energy Bill

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State, or on the Gas and Electricity Markets Authority, by section 6 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.

8       

Functions of the Gas and Electricity Markets Authority in relation to

microgeneration

5

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

10

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).”.

9       

Review of permitted development orders

15

(1)   

The Secretary of State shall for the purpose mentioned in subsection (2) carry

out a review of the effect in England of development orders made by virtue of

section 59(2)(a) of the Town and Country Planning Act 1990 (c. 8) (which

confers power by order to grant planning permission for development or a

class of development specified in the order).

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(2)   

The purpose of the review is to enable the Secretary of State to form a view as

to what provision (or further provision) such development orders should

make to facilitate development in England consisting of the installation, within

the curtilage of a dwellinghouse, of equipment, apparatus or appliances for

microgeneration.

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(3)   

As soon as reasonably practicable after he has carried out the review, the

Secretary of State must lay before Parliament a report of the review, including

his view as mentioned in subsection (2) and the reasons for it.

(4)   

The report must also set out what provision (or further provision), if any, the

Secretary of State proposes to make in development orders by virtue of section

30

59(2)(a) of the Town and Country Planning Act 1990 in consequence of the

review.

(5)   

Where the Secretary of State proposes to make provision (or further provision)

in development orders in consequence of the review, he must—

(a)   

exercise his powers under section 59 of the Town and Country

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Planning Act 1990 so as to provide that development orders made by

virtue of that section make such provision in consequence of the review

as he considers appropriate, and

(b)   

exercise those powers as soon as reasonably practicable after laying the

report before Parliament under subsection (3).

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(6)   

In this section—

“dwellinghouse” does not include a building containing one or more flats,

or a flat contained within such a building;

 
 

Climate Change and Sustainable Energy Bill

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“flat” means a separate and self-contained set of premises constructed or

adapted for use for the purpose of a dwelling and forming part of a

building from some other part of which it is divided horizontally.

10      

Building regulations: microgeneration

In Schedule 1 to the Building Act 1984 (c. 55) (building regulations), in

5

paragraph 7(a), after paragraph (xxiid) insert—

“(xxiie)   

the production of heat or the generation of electricity

by microgeneration (as defined for the purposes of

this paragraph by building regulations),”.

Energy efficiency

10

11      

Reports under section 1 of the Sustainable Energy Act 2003: energy efficiency

of residential accommodation

(1)   

Section 1 of the Sustainable Energy Act 2003 (c. 30) (annual reports on progress

towards sustainable energy aims) is amended as follows.

(2)   

In subsection (1)—

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(a)   

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

(b)   

at the end of paragraph (d) insert “; and

(e)   

achieving the target set out in section 217(1) of the

Housing Act 2004 (target for the energy efficiency of

residential accommodation in England).”

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(3)   

After subsection (1A) insert—

“(1AA)   

The report must also include estimates of the effect of the progress

made in the reporting period towards achieving the target set out in

section 217(1) of the Housing Act 2004 on—

(a)   

emissions of carbon dioxide in England, and

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(b)   

the number of households in which one or more persons are

living in fuel poverty.”

Carbon emissions reduction targets

12      

Promotion of reductions in carbon emissions: gas transporters and suppliers

(1)   

Section 33BC of the Gas Act 1986 (c. 44) (promotion of the efficient use by

30

consumers of gas) is amended as follows.

(2)   

In subsection (1)—

(a)   

for “energy efficiency target” substitute “carbon emissions reduction

target”, and

(b)   

for “an “energy efficiency obligation”” substitute “a “carbon emissions

35

reduction obligation””.

(3)   

For subsection (2) substitute—

“(2)   

In this section “carbon emissions reduction target” means a target for

the promotion of—

 
 

 
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