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promote
sustainable energy and energy efficiency; to make further provision
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in respect of the regulation
of the gas and electricity industries; to provide |
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OFGEM with new environmental
and social duties; to make further provision |
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about the role of local
authorities in meeting the United Kingdom’s carbon |
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reduction and fuel poverty
targets; 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 |
Sustainable
energy plans |
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(1) |
Every local authority
must annually prepare and publish a document (a |
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“sustainable energy
plan”), specifying the local authority's contribution
to |
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combating climate change. |
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(2) |
A sustainable energy plan
must aim to meet or exceed any relevant targets set |
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5 |
by the Secretary of State
for the reduction of greenhouse gases and the |
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alleviation of fuel poverty. |
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(3) |
A sustainable energy plan
must specify the local authority's requirements |
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relating to the matters
set out in subsection (4) in respect of applications for |
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(4) |
The matters referred to
in subsection (3) are— |
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(a) |
the generation of power
or conversion of energy from renewable |
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sources as part of the proposed
development; |
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(b) |
the generation of low carbon
power as part of the proposed |
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15 |
(c) |
the use of electrical and
heat energy from a local distribution network |
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outwith the proposed development;
and |
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(d) |
an energy efficiency standard
in all, part or parts of the proposed |
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development that exceeds
that required by any building regulations in |
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force at the time of the
application. |
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20 |
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“combating climate change” shall be construed in
accordance with section |
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1 of the Climate
Change and Sustainable Energy Act 2006 (c. 19); |
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“fuel poverty”
shall be construed in accordance with the provisions of |
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section 1 of the Warm
Homes and Energy Conservation Act 2000 (c. 31); |
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“greenhouse gas”
shall have the meaning given by section 26 of the |
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Climate
Change and Sustainable Energy Act 2006; |
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“local authority”
means a county borough council, a district council, a |
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metropolitan district council
or a London Borough Council. |
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2 |
Gas
and Electricity Markets Authority: duty to encourage reductions
in |
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household energy consumption |
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(1) |
The 1989 Act is amended
as follows. |
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(2) |
In subsection 5 of section
3A (the principal objective and general duties of the |
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Secretary of State and
the Authority) there is inserted— |
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“(bb) |
to promote the establishment
of energy services companies |
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delivering
long-term, sustainable, secure and affordable heat |
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15 |
and
power; to encourage persons authorised by licences or |
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exemptions
to undertake measures to reduce household energy |
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consumption;
to promote local power generation and heat |
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(3) |
The 1986 Act is amended
as follows. |
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(4) |
In subsection 5 of section
4AA (the principal objective and general duties of the |
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Secretary of State and
the Authority) there is inserted— |
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“(bb) |
to promote the establishment
of energy services companies |
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delivering
long-term, sustainable, secure and affordable heat |
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and
power; to encourage persons authorised by licences or |
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exemptions
to undertake measures to reduce household energy |
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consumption;
to promote local power generation and heat |
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3 |
Citizen’s
Electricity Entitlement |
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(1) |
The Secretary of State
shall determine an additional standard condition in |
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relation to electricity
supply licences for the purpose of defining an amount of |
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electricity which shall
be supplied at the supplier's lowest tariff (the “citizen's
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electricity entitlement”). |
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(2) |
The Secretary of State
shall publish the condition determined under subsection |
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(1) in such manner as he
considers appropriate. |
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(3) |
A condition published
in accordance with subsection (2) shall be a standard |
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condition for the purposes
of electricity supply licences, subject to any |
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modification of the standard
conditions for the purposes of licences of that type |
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made under Part 1 of the
1989 Act after the determination under subsection (1). |
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(4) |
After section 8A(1B) of
the 1989 Act, there is inserted— |
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“(1C) |
Subject to subsection
(2), each condition which by virtue of section 3 of |
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the
Energy Markets, Carbon Reduction and Warm Homes Act 2007 is
a |
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standard
condition for the purposes of supply licences shall be |
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incorporated
by reference in each supply licence granted on or after the
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day
on which section 3 of that Act comes into force”. |
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4 |
Citizen’s
Gas Entitlement |
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(1) |
The Secretary of State
shall determine an additional standard condition in |
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relation to gas supply
licences for the purpose of defining an amount of gas |
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which shall be supplied
at the supplier's lowest tariff (the “citizen's gas |
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5 |
(2) |
The Secretary of State
shall publish the condition determined under subsection |
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(1) in such manner as he
considers appropriate. |
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(3) |
A condition published
in accordance with subsection (2) shall be a standard |
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condition for the purposes
of gas supply licences, subject to any modification |
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of the standard conditions
for the purposes of licences of that type made under |
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Part 1 of the 1986 Act
after the determination under subsection (1). |
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(4) |
After section 8(2) of the
1986 Act, there is inserted— |
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“(2A) |
Subject to subsection
(3), each condition which by virtue of section 4 of |
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the
Energy Markets, Carbon Reduction and Warm Homes Act 2007 is
a |
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standard
condition for the purposes of supply licences shall be |
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15 |
incorporated
by reference in each supply licence granted on or after the
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day
on which section 4 of that Act comes into force”. |
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5 |
Buy-back
of renewable energy |
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(1) |
The Secretary of State
shall determine an additional standard condition in |
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relation to electricity
supply licences for the purpose of stipulating the |
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minimum price at which
a supplier must buy back electricity generated by |
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renewable sources by its
customers. |
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(2) |
The Secretary of State
shall publish the condition determined under subsection |
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(1) in such manner as he
considers appropriate. |
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(3) |
A condition published
in accordance with subsection (2) shall be a standard |
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condition for the purposes
of electricity supply licences, subject to any |
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modification of the standard
conditions for the purposes of licences of that type |
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made under Part 1 of the
1989 Act after the determination under subsection (1). |
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(4) |
After section 8A(1B) of
the 1989 Act, there is inserted— |
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“(1D) |
Subject to subsection
(2), each condition which by virtue of section 5 of |
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the
Energy Markets, Carbon Reduction and Warm Homes Act 2007 is
a |
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standard
condition for the purposes of supply licences shall be |
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incorporated
by reference in each supply licence granted on or after the
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day
on which section 5 of that Act comes into force”. |
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(5) |
In this section, “renewable
sources of energy” means power and heat generated |
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35 |
using the sources or technologies
listed in section 26(2) of the Climate Change |
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and Sustainable Energy
Act 2006. |
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6 |
Licensing
of electricity supply: exemption for local distribution networks |
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(1) |
The 1989 Act is amended
as follows. |
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(2) |
After
section 5 (exemptions from prohibition) there is inserted— |
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“5A |
Exemptions
from prohibition: small suppliers |
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(1) |
Persons who distribute
electrical power for the purpose of providing a |
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supply
to domestic consumers, or enabling a supply to be so provided
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with
that electrical power, shall be exempt from the provisions of
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5 |
section
4(1) if their distribution system is a local distribution network. |
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(2) |
In this section, “local
distribution network” has the meaning given by |
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section
7 of the Energy Markets, Carbon Reduction and Warm Homes |
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10 |
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“energy services
company” means— |
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(a) |
a publicly owned company,
or |
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(b) |
a community interest
company, within the meaning of section |
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|
26 of the Companies
(Audit, Investigations and Community |
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Enterprise) Act 2004
(c. 27), |
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(c) |
a public-private
partnership company within the meaning of |
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section 210 of the
Greater London Authority Act 1999 (c 29), or |
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(d) |
a private company
within the meaning given in section 4 of the |
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Companies Act 2006
(c. 46); |
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“local distribution
network” is a person's electricity distribution system
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where the electricity is
generated within a radius of 25 kilometres of its |
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“the 1986 Act”
is the Gas Act 1986 (c. 44); |
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“the 1989 Act”
is the Electricity Act 1989
(c. 29); |
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“relevant target”
means a target relating to a local authority area. |
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There
shall be paid out of money provided by Parliament— |
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(a) |
any
expenditure incurred by a Minister of the Crown by virtue of
this Act, and |
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(b) |
any
increase attributable to this Act in the sums payable out of
money so |
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provided
under any other enactment. |
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9 |
Short
title, commencement and extent |
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(1) |
This Act may be cited
as the Energy Markets, Carbon Reduction and Warm |
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(2) |
This Act, other than this
section, shall come into force at the end of the period |
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of 3 months beginning with
the day on which this Act is passed. |
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(3) |
This Act, except section
1,
extends to England and Wales and Scotland. |
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(4) |
Section 1 extends to England
and Wales only. |
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