Energy Bill

House of Commons

Session 2007 - 08
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Other Bills before Parliament

Energy Bill

Energy Bill
Part 1 — Gas Importation and Storage
Chapter 3 — Storage of carbon dioxide
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(2)
Information is not to be included in the register if the Secretary of State thinks
that disclosure of the information—
(a)
would be contrary to the interests of national security, or
(b)
would prejudice to an unreasonable degree a person’s commercial
interests.
5
(3)
Information excluded from the register by virtue of subsection (2)(b) is treated,
subject to subsection (4), as ceasing to prejudice a person’s commercial
interests at the end of the period of 4 years beginning with the date on which
the Secretary of State made the decision to exclude it.
(4)
The Secretary of State may, on the application of the person whose commercial
10
interests are affected, decide whether the information should be included in
the register at the end of the period mentioned in subsection (3) or should
continue to be excluded.
(5)
Where information of any description is excluded from the register by virtue
of subsection (2)(b), a statement is to be included in the register indicating the
15
existence of information of that description.
(6)
The Secretary of State must—
(a)
secure that the register maintained under this section is available for
inspection by the public free of charge, and
(b)
afford to members of the public facilities for obtaining copies of entries,
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on payment of a fee.
(7)
In this section “prescribed” means prescribed by regulations made by the
Secretary of State.
Abandonment of offshore installations
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Abandonment of installations
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(1)
Part 4 of the Petroleum Act 1998 (c. 17) (“the 1998 Act”) applies in relation to a
carbon storage installation as it applies in relation to an offshore installation within the
meaning given by section 44 of the 1998 Act.
(2)
But the Secretary of State may make regulations providing that Part 4 of the 1998 Act
applies in relation to a carbon storage installation with such modifications as may be
30
specified in the regulations.
(3)
In this section, “carbon storage installation” means an installation established
or maintained for the purposes of an activity mentioned in section 16(2)(a), (b)
or (c).
Termination of the licence
35
30
Termination of licence: regulations
(1)
The Secretary of State may by regulations make provision—
(a)
about the circumstances in which a licence may be terminated;
(b)
imposing obligations on the Secretary of State in respect of a carbon
storage facility on or after the termination of a licence relating to the
40
facility.

Energy Bill
Part 1 — Gas Importation and Storage
Chapter 3 — Storage of carbon dioxide
16

(2)
Regulations under this section may, in particular, make provision about financial
arrangements to be made in relation to a closed carbon storage facility on or after the
termination of a licence relating to the facility.
(3)
A licence has effect subject to any regulations under this section.
Miscellaneous
5
31
Safety zones
Sections 21, 23 and 24 of the Petroleum Act 1987 (c. 12) (safety zones) apply in
relation to a carbon storage installation as they apply in relation to an
installation within section 21(1) of that Act.
32
Enhanced petroleum recovery: power to make orders
10
(1)
The use of carbon dioxide, in a controlled place, for a purpose ancillary to
getting petroleum is to be regarded as—
(a)
an activity within section 16(2), or
(b)
the storage of gas for the purposes of section 1(3)(b),

only in the circumstances specified by the Secretary of State by order.
15
(2)
Subsection (1) and orders made under it are without prejudice to Part 1 of the
Petroleum Act 1998 (c. 17).
(3)
An order under subsection (1) may provide that the use of carbon dioxide, in a
designated place, for a purpose ancillary to getting petroleum is to be
regarded, for the purposes of this Chapter, as the use of carbon dioxide in a
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controlled place for such a purpose.
(4)
A designated place means a place designated by the order which is a place in,
under or over waters in an area designated under section 1(7) of the
Continental Shelf Act 1964 (c. 29), other than waters in a Gas Importation and
Storage Zone.
25
(5)
In this section “petroleum” has the meaning given by section 1 of the Petroleum
Act 1998.
33
Power of Secretary of State to transfer functions
(1)
The Secretary of State may by order transfer to another person any function
conferred on the Secretary of State by or under this Chapter, other than a power
30
to make regulations or an order.
(2)
A function transferred by an order under subsection (1) reverts to the Secretary
of State if the order is revoked.
(3)
An order under subsection (1) may—
(a)
transfer different functions to different persons;
35
(b)
transfer functions to a person in respect of all activities within section
16(2) or only specified activities;
(c)
transfer the same function to different persons in respect of different
activities;
(d)
transfer functions to different persons in respect of different places.
40
(4)
An order under subsection (1) may—

Energy Bill
Part 1 — Gas Importation and Storage
Chapter 4 — General provisions about gas importation and storage
17

(a)
provide for the Secretary of State to make payments to a person to whom a
function has been transferred in respect of the person’s expenditure in
connection with the exercise of the function;
(b)
require any fee paid to such a person under this Chapter to be paid into the
Consolidated Fund;
5
(c)
make such modifications of section 188 of the Energy Act 2004 (c. 20) (power
to impose charges to fund energy functions), or any regulations made under
that section, as the Secretary of State considers appropriate in consequence of
the transfer of a function by virtue of this section.
(5)
The Secretary of State may give a direction to a person to whom functions have
10
been transferred under subsection (1) about—
(a)
whether, or in what circumstances, a function specified in the direction
is to be carried out;
(b)
the manner in which a function specified in the direction is to be carried
out.
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(6)
A direction under subsection (5) may be general or specific.
(7)
The Secretary of State may not give a direction under subsection (5) without
first consulting the person to whom the Secretary of State proposes to give the
direction.
Interpretation
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34
Chapter 3: interpretation
In this Chapter—
“carbon storage facility” has the meaning given by section 19(8);
“carbon storage installation” has the meaning given by section 29(3);
“closure”, in relation to a carbon storage facility, has the meaning given by
25
section 19(8);
“controlled place” has the meaning given by section 16(3);
“Gas Importation and Storage Zone” means an area designated under
section 1(5);
“installation” includes any floating structure or device maintained on a
30
station by whatever means;
“licence” means a licence granted under section 17(1), and “licence
holder” is to be construed accordingly.
Chapter 4
General provisions about gas importation and storage
35
35
Chapters 2 and 3: consequential amendments
Schedule 1 contains amendments relating to Chapters 2 and 3.

Energy Bill
Part 2 — Electricity from renewable sources
18

Part 2
Electricity from renewable sources
The renewables obligation
36
The renewables obligation
For sections 32 to 32C of the Electricity Act 1989 (c. 29) substitute—
5
“32
The renewables obligation
(1)
The Secretary of State may make a renewables obligation order.
(2)
A renewables obligation order is an order which imposes the
renewables obligation on each electricity supplier falling within a
specified description (a “designated electricity supplier”).
10
(3)
The descriptions of electricity supplier upon which a renewables
obligation order may impose the renewables obligation are those
supplying electricity—
(a)
in Great Britain,
(b)
in England and Wales, or
15
(c)
in Scotland,

excluding such categories of supplier (if any) as are specified.
(4)
The renewables obligation is that the designated electricity supplier
must, by each specified day, have produced to the Authority the
required number of renewables obligation certificates in respect of—
20
(a)
the amount of electricity supplied by it to customers in Great
Britain during a specified period, or
(b)
if the order imposes the renewables obligation only on those
supplying electricity in a part of Great Britain, the amount of
electricity supplied by it to customers in that part during a
25
specified period.
(5)
Subsection (4) is subject to sections 32A to 32M.
32A
Further provision about the renewables obligation
(1)
A renewables obligation order may make provision generally in
relation to the renewables obligation.
30
(2)
A renewables obligation order may, in particular, specify—
(a)
how the number of renewables obligation certificates required
to be produced by an electricity supplier in respect of the
amount of electricity supplied by it to customers in Great
Britain during a specified period is to be calculated;
35
(b)
different obligations for successive periods of time;
(c)
that renewables obligation certificates issued in respect of
electricity generated—
(i)
using specified descriptions of renewable sources,
(ii)
by specified descriptions of generating stations,
40
(iii)
in specified ways, or
(iv)
in other specified cases or circumstances,

Energy Bill
Part 2 — Electricity from renewable sources
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are to count towards discharging an electricity supplier’s
obligation only up to a specified number, or a specified
proportion, of the certificates required to be produced to
discharge the obligation;
(d)
that a specified number, or a specified proportion, of the
5
renewables obligation certificates produced by an electricity
supplier when discharging its renewables obligation must be
certificates in respect of electricity generated—
(i)
using specified descriptions of renewable sources,
(ii)
by specified descriptions of generating station,
10
(iii)
in specified ways, or
(iv)
in other specified cases or circumstances;
(e)
how the amount of electricity supplied by an electricity supplier
to customers in Great Britain during a specified period is to be
calculated;
15
(f)
that specified information, or information of a specified nature,
is to be given to the Authority;
(g)
the form in which such information is to be given and the time
by which it is to be given.
(3)
A renewables obligation certificate may count once only towards the
20
discharge of the renewables obligation.
(4)
If a renewables obligation order applies only to electricity suppliers in
a part of Great Britain, it may specify that the only renewables
obligation certificates which count towards discharging the renewables
obligation are certificates which are issued—
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(a)
in respect of electricity supplied to customers in that part of
Great Britain, or
(b)
in respect of electricity used in a permitted way (within the
meaning of section 32B(9) and (10)) in that part of Great Britain.
(5)
A renewables obligation order may, in relation to any specified period
30
(“the current period”)—
(a)
provide that renewables obligation certificates in respect of
electricity supplied in a later period may, when available, be
counted towards discharging the renewables obligation for the
current period;
35
(b)
provide that renewables obligation certificates in respect of
electricity supplied in the current period may, in a later period,
be counted towards discharging the renewables obligation for
that period;
(c)
specify how much later the later period referred to in paragraph
40
(a) or (b) may be;
(d)
specify a maximum proportion of the renewables obligation for
any period which may be discharged as mentioned in
paragraph (a) or (b);
(e)
specify a maximum proportion, or maximum number of, the
45
renewables obligation certificates issued in respect of electricity
supplied in any period which may be counted towards
discharging the renewables obligation for a different period.
(6)
For the purposes of subsection (5) a certificate which certifies that
electricity has been used in a permitted way (within the meaning of
50

Energy Bill
Part 2 — Electricity from renewable sources
20

section 32B(9) and (10)) in a particular period is to be treated as if it were
a certificate which certifies that electricity has been supplied in that
period.
32B
Renewables obligation certificates
(1)
A renewables obligation order may provide for the Authority to issue
5
from time to time, in accordance with such criteria (if any) as are
specified in the order, a certificate (“a renewables obligation
certificate”) to—
(a)
the operator of a generating station,
(b)
an electricity supplier or a Northern Ireland supplier, or
10
(c)
if the order so provides, a person of any other description
specified in the order.
(2)
A renewables obligation certificate is to certify—
(a)
the matters within subsection (3) or (4), or
(b)
if the order provides that a certificate may certify the matters
15
within subsection (5), (6), (7) or (8), the matters within that
subsection.
(3)
The matters within this subsection are—
(a)
that the generating station, or, in the case of a certificate issued
otherwise than to the operator of a generating station, a
20
generating station specified in the certificate, has generated
from renewable sources the amount of electricity stated in the
certificate, and
(b)
that it has been supplied by an electricity supplier to customers
in Great Britain (or the part of Great Britain stated in the
25
certificate).
(4)
The matters within this subsection are—
(a)
that the generating station, or, in the case of a certificate issued
otherwise than to the operator of a generating station, a
generating station specified in the certificate, has generated
30
from renewable sources the amount of electricity stated in the
certificate,
(b)
that the generating station in question is not a generating station
mentioned in Article 54(1) of the Energy (Northern Ireland)
Order 2003, and
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(c)
that the electricity has been supplied by a Northern Ireland
supplier to customers in Northern Ireland.
(5)
The matters within this subsection are—
(a)
that two or more generating stations have, between them,
generated from renewable sources the amount of electricity
40
stated in the certificate, and
(b)
that it has been supplied by an electricity supplier to customers
in Great Britain (or the part of Great Britain stated in the
certificate).
(6)
The matters within this subsection are—
45
(a)
that two or more generating stations have, between them,
generated from renewable sources the amount of electricity
stated in the certificate,

Energy Bill
Part 2 — Electricity from renewable sources
21

(b)
that none of them is a generating station mentioned in Article
54(1) of the Energy (Northern Ireland) Order 2003, and
(c)
that the electricity has been supplied by a Northern Ireland
supplier to customers in Northern Ireland.
(7)
The matters within this subsection are—
5
(a)
that the generating station, or, in the case of a certificate issued
otherwise than to the operator of a generating station, a
generating station specified in the certificate, has generated
from renewables sources the amount of electricity stated in the
certificate, and
10
(b)
that the electricity has been used in a permitted way.
(8)
The matters within this subsection are—
(a)
that two or more generating stations have, between them,
generated from renewables sources the amount of electricity
stated in the certificate, and
15
(b)
that the electricity has been used in a permitted way.
(9)
For the purposes of subsections (7) and (8), electricity generated by a
generating station, or generating stations, of any description is used in
a permitted way if—
(a)
it is used in one of the ways mentioned in subsection (10), and
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(b)
that way is specified in the order as a permitted way—
(i)
in relation to all generating stations, or
(ii)
in relation to generating stations of that description.
(10)
Those ways are—
(a)
being consumed by the operator of the generating station or
25
generating stations by which it was generated;
(b)
being supplied to customers in Great Britain through a private
wire network;
(c)
being provided to a distribution system or a transmission
system in circumstances in which its supply to customers
30
cannot be demonstrated;
(d)
being used, as respects part, as mentioned in one of paragraph
(a), (b) or (c) and as respects the remainder—
(i)
as mentioned in one of the other paragraphs, or
(ii)
as respects part, as mentioned in one of the other
35
paragraphs and as respects the remainder as mentioned
in the other;
(e)
being used, as respects part, as mentioned in paragraph (a), (b),
(c) or (d) and as respects the remainder by being supplied by an
electricity supplier to customers in Great Britain or by a
40
Northern Ireland supplier to customers in Northern Ireland, or
both.
(11)
For the purposes of subsection (10)(b) electricity is supplied through a
private wire network if it is conveyed to premises by a system which is
used for conveying electricity from a generating station in
45
circumstances where—
(a)
the operator of the generating station is exempt from section
4(1)(c) and does not hold a supply licence, and
(b)
the electricity is supplied to one or more customers—