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[AS AMENDED IN STANDING COMMITTEE C] |
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make provision about the reduction of emissions of greenhouse gases, the |
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alleviation of fuel poverty, the promotion of microgeneration and the use of |
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heat produced from renewable sources, the renewables obligation relating to |
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the generation and supply of electricity and the adjustment of transmission |
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charges for electricity; and for connected purposes. |
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Be it enacted by the Queen’s most Excellent Majesty, by and with the advice and |
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consent of the Lords Spiritual and Temporal, and Commons, in this present |
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Parliament assembled, and by the authority of the same, as follows:— |
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(1) | The principal purpose of this Act is to enhance the United Kingdom |
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contribution to combating climate change. |
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(2) | In performing functions under this Act, the relevant persons and bodies shall |
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(a) | the principal purpose set out in subsection (1); |
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(b) | the desirability of alleviating fuel poverty; and |
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(c) | the desirability of securing a diverse and viable long-term energy |
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(3) | In this section “the relevant persons and bodies” means— |
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(a) | the Secretary of State; |
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(b) | any public authority. |
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Reports on greenhouse gas emissions |
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2 | Annual report on greenhouse gas emissions |
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(1) | It shall be the duty of the Secretary of State in the course of each calendar year |
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to lay before Parliament a report on— |
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(a) | steps taken by government departments during the previous calendar |
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year to reduce emissions of greenhouse gases; and |
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(b) | the level of emissions of greenhouse gases in the United Kingdom |
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during the previous calendar year, including any increase or decrease |
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in that level recorded during that year. |
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(2) | In this section “greenhouse gases” means— |
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(e) | perfluorocarbons; and |
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(f) | sulphur hexafluoride. |
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3 | National targets for microgeneration |
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(1) | The Secretary of State must, during the period beginning with 1st November |
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2008 and ending with 31st March 2009— |
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(a) | designate one or more national microgeneration targets, and |
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(b) | publish a statement of that fact together with a copy of the target or |
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(2) | But subsection (1) does not apply unless on 1st November 2008 the Secretary of |
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State considers that it would be appropriate to designate one or more targets |
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(3) | For the purposes of this section, a national microgeneration target is a target in |
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(a) | the number of microgeneration systems installed in England and |
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(b) | the number of electricity microgenerating systems installed in |
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| as at a date specified in the target (“the target date”). |
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(4) | The matters to which the Secretary of State must have regard in determining |
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whether subsection (1) applies include, in particular— |
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(a) | the number of microgeneration systems installed in England and |
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(b) | the number of electricity microgenerating systems installed in |
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(c) | the strategy published under section 82 of the Energy Act 2004 (c. 20) |
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(d) | the results of any research carried out into the effect that designating a |
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target under subsection (1) could be expected to have on the number of |
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microgeneration systems that are installed in England and Wales, and |
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the number of electricity microgenerating systems that are installed in |
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Scotland, by the target date. |
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(5) | If a target is designated under subsection (1), the Secretary of State must take |
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reasonable steps to secure that the target is met. |
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(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. |
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(7) | At any time before the target date, the Secretary of State may review the target |
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and, if he considers it appropriate to do so, revise the target. |
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(8) | If under subsection (7) the Secretary of State revises a target— |
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(a) | he must publish a statement of that fact together with a copy of the |
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(b) | the revised target is treated for the purposes of subsection (5) and |
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section 4 as the target designated under subsection (1). |
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“electricity microgenerating system” means a microgeneration system for |
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“microgeneration system” means any plant or system of plant for |
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generating electricity or producing heat— |
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(a) | which, in generating electricity or (as the case may be) |
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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 |
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Energy Act 2004 (c. 20), and |
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(b) | whose capacity to generate electricity or (as the case may be) to |
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produce heat does not exceed the capacity mentioned in |
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subsection (8) of that section; |
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“plant” includes any equipment, apparatus or appliance. |
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4 | National microgeneration targets: modification of section 1 of the Sustainable |
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(1) | This section applies if a target is designated under section 3. |
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(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 |
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“(1BA) | The report must also include such information as the Secretary of State |
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considers appropriate about things done during the reporting period |
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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 |
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| and as if, in subsection (1C), for “subsection (1A)” there were substituted |
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“subsections (1A) and (1BA)”. |
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(3) | For the purposes of this section— |
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(a) | a sustainable energy report is a relevant sustainable energy report in |
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relation to a target designated under subsection (1) of section 3 if the |
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reporting period to which the report relates includes the period, or any |
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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 |
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period beginning when it is designated and ending with the target date |
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(within the meaning of that section), |
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(c) | “reporting period”, in relation to a sustainable energy report, has the |
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meaning given by section 1 of the Sustainable Energy Act 2003 (c. 30), |
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(d) | “sustainable energy report” means a sustainable energy report which is |
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required to be published under that section. |
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5 | Reports under section 1 of the Sustainable Energy Act 2003: microgeneration |
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In section 1(1A) of the Sustainable Energy Act 2003 (annual reports on progress |
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towards sustainable energy aims)— |
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(a) | omit “and” at the end of paragraph (b), and |
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(b) | at the end of paragraph (c) insert “; and |
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(d) | things done during that period for the purpose of |
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implementing the strategy for the promotion of |
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microgeneration in Great Britain published under |
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section 82 of the Energy Act 2004.” |
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6 | Sale of electricity generated by microgeneration: power to modify |
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distribution and supply licences etc |
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(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 |
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generated by microgeneration, he may make— |
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(a) | relevant modifications of the conditions of a distribution licence or a |
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supply licence held by a particular person; |
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(b) | relevant modifications of the standard conditions of distribution |
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licences or supply licences. |
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(2) | For the purposes of subsection (1), “relevant modifications” means— |
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(a) | in relation to a distribution licence, modifications— |
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(i) | imposing conditions requiring the holder of such a licence to |
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provide information to holders of supply licences about the |
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connection to the distribution system, or use, of |
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microgeneration plant, or |
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(ii) | for the purposes of enabling or facilitating holders of supply |
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licences to satisfy any conditions of such licences of a |
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description mentioned in paragraph (b), and |
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(b) | in relation to a supply licence, modifications imposing conditions |
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requiring the holder of such a licence to offer to acquire electricity |
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generated by microgeneration by the licenceholder’s customers; |
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| and also includes incidental, consequential or transitional modifications. |
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(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 |
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condition from continuing to be regarded as a standard condition for the |
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purposes of Part 1 of the Electricity Act 1989 (c. 29). |
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(4) | Where the Secretary of State makes modifications under subsection (1)(b) of |
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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 |
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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 |
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(5) | Conditions included in a distribution licence or supply licence by virtue of a |
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power conferred by this section— |
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(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 |
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by section 7(2) to (4) of the Electricity Act 1989 (c. 29) (which applies to |
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the Gas and Electricity Markets Authority’s power with respect to |
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licence conditions under section 7(1)(a) of that Act). |
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(6) | In this section and section 7— |
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“distribution licence” has the meaning given by section 6(1)(c) of the |
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Electricity Act 1989 (licences authorising supply, etc); |
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“microgeneration plant” means plant used, or intended for use, for |
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generating electricity by microgeneration, where “plant” has the same |
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meaning as it has in section 82 of the Energy Act 2004 (c. 20) |
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“supply licence” has the meaning given by section 6(1)(d) of the Electricity |
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(7) | In section 33(1) of the Utilities Act 2000 (c. 27) (standard conditions of |
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(a) | omit “or” at the end of paragraph (a), and |
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(b) | after paragraph (b) insert “or |
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(c) | under section 6 of the Climate Change and Sustainable |
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Energy Act 2006 (sale of electricity generated by |
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microgeneration: power to modify distribution and |
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7 | Exercise of powers under section 6 |
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(1) | Before making any modification of a distribution licence or a supply licence |
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under section 6, the Secretary of State must consult— |
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(a) | the holder of any licence being modified, and |
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(b) | such other persons as he considers appropriate. |
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(2) | The Secretary of State must publish every modification made by him under |
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(3) | The publication must be in such manner as the Secretary of State considers |
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(4) | Where the Gas and Electricity Markets Authority makes modifications of |
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standard conditions under section 6(4), it must publish the modifications in |
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such manner as it considers appropriate. |
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(5) | The Secretary of State’s powers under section 6 are exercisable only during the |
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(a) | begins with the first anniversary, and |
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(b) | ends with the third anniversary, |
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| of the commencement of that section. |
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(6) | Sections 3A to 3D of the Electricity Act 1989 (principal objectives and general |
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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 |
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section as they apply in relation to the carrying out of functions conferred on |
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him, or on it, by or under Part 1 of that Act. |
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8 | Functions of the Gas and Electricity Markets Authority in relation to |
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In section 47 of the Electricity Act 1989 (c. 29) (functions of the Gas and |
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Electricity Markets Authority), after subsection (1) insert— |
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“(1A) | The activities to which subsection (1) applies also include, in particular, |
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activities connected with the generation of electricity by |
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microgeneration or with the transmission and supply of electricity so |
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(1B) | In subsection (1A), “microgeneration” has the same meaning as it has in |
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section 82 of the Energy Act 2004 (Secretary of State’s strategy for |
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promotion of microgeneration).”. |
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9 | Review of permitted development orders |
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(1) | The Secretary of State shall for the purpose mentioned in subsection (2) carry |
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out a review of the effect in England of development orders made by virtue of |
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section 59(2)(a) of the Town and Country Planning Act 1990 (c. 8) (which |
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confers power by order to grant planning permission for development or a |
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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 |
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to what provision (or further provision) such development orders should |
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make to facilitate development in England consisting of the installation, within |
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the curtilage of a dwellinghouse, of equipment, apparatus or appliances for |
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(3) | As soon as reasonably practicable after he has carried out the review, the |
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Secretary of State must lay before Parliament a report of the review, including |
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his view as mentioned in subsection (2) and the reasons for it. |
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(4) | The report must also set out what provision (or further provision), if any, the |
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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 |
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(5) | Where the Secretary of State proposes to make provision (or further provision) |
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in development orders in consequence of the review, he must— |
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(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 |
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virtue of that section make such provision in consequence of the review |
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as he considers appropriate, and |
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(b) | exercise those powers as soon as reasonably practicable after laying the |
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report before Parliament under subsection (3). |
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“dwellinghouse” does not include a building containing one or more flats, |
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or a flat contained within such a building; |
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“flat” means a separate and self-contained set of premises constructed or |
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adapted for use for the purpose of a dwelling and forming part of a |
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building from some other part of which it is divided horizontally. |
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10 | Building regulations: microgeneration |
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In Schedule 1 to the Building Act 1984 (c. 55) (building regulations), in |
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paragraph 7(a), after paragraph (xxiid) insert— |
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“(xxiie) | the production of heat or the generation of electricity |
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by microgeneration (as defined for the purposes of |
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this paragraph by building regulations),”. |
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11 | Reports under section 1 of the Sustainable Energy Act 2003: energy efficiency |
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of residential accommodation |
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(1) | Section 1 of the Sustainable Energy Act 2003 (c. 30) (annual reports on progress |
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towards sustainable energy aims) is amended as follows. |
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(a) | omit “and” at the end of paragraph (c), and |
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(b) | at the end of paragraph (d) insert “; and |
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(e) | achieving the target set out in section 217(1) of the |
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Housing Act 2004 (target for the energy efficiency of |
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residential accommodation in England).” |
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(3) | After subsection (1A) insert— |
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“(1AA) | The report must also include estimates of the effect of the progress |
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made in the reporting period towards achieving the target set out in |
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section 217(1) of the Housing Act 2004 on— |
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(a) | emissions of carbon dioxide in England, and |
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(b) | the number of households in which one or more persons are |
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Carbon emissions reduction targets |
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12 | Promotion of reductions in carbon emissions: gas transporters and suppliers |
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(1) | Section 33BC of the Gas Act 1986 (c. 44) (promotion of the efficient use by |
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consumers of gas) is amended as follows. |
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(a) | for “energy efficiency target” substitute “carbon emissions reduction |
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(b) | for “an “energy efficiency obligation”” substitute “a “carbon emissions |
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(3) | For subsection (2) substitute— |
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“(2) | In this section “carbon emissions reduction target” means a target for |
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