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
[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
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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 Secretary of State;
(b)
any public authority.

Bill 133 54/1

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Reports on greenhouse gas emissions
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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
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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
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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
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(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—
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(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)
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(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

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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
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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
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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.
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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,

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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),
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and
(d)
“sustainable energy report” means a sustainable energy report which is
required to be published under that section.
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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
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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.”
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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
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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
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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
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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
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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
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Electricity Markets Authority must make (as nearly as may be) the same
modifications of those standard conditions for the purposes of their

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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
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(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—
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“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)
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(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)—
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(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).”.
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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
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(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
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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.
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Functions of the Gas and Electricity Markets Authority in relation to
microgeneration
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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
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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).”.
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Review of permitted development orders
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(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
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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;

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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.
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Building regulations: microgeneration
In Schedule 1 to the Building Act 1984 (c. 55) (building regulations), in
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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
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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
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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
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reduction obligation””.
(3)
For subsection (2) substitute—
“(2)
In this section “carbon emissions reduction target” means a target for
the promotion of—