Energy Bill

House of Commons

Session 2007 - 08
Internet Publications
Other Bills before Parliament

Energy Bill

Energy Bill
Part 2 — Electricity from renewable sources
29

(b)
to make payments to the Northern Ireland authority in respect of costs
(or a proportion of costs) which have been or are expected to be
incurred by that authority in connection with the performance of its
functions conferred by or under Articles 52 to 55 of the Energy
(Northern Ireland) Order 2003.
5
(2)
A renewables obligation order—
(a)
may exclude amounts of a specified description from being
used as mentioned in subsection (1);
(b)
may prevent the Authority using amounts to make payments in
respect of costs of a specified description.
10
32J
Information
(1)
A renewables obligation order may provide for the Authority to
require—
(a)
an electricity supplier to provide the Authority with
information, or with information of a particular kind, which in
15
the Authority’s opinion is relevant to the question whether the
supplier is discharging, or has discharged, its renewables
obligation;
(b)
a person to provide the Authority with information, or with
information of a particular kind, which in the Authority’s
20
opinion is relevant to the question whether a renewables
obligation certificate is, or was or will in future be, required to
be issued to the person.
(2)
That information must be given to the Authority in whatever form it
requires.
25
(3)
A renewables obligation order may—
(a)
require operators of generating stations generating electricity
(wholly or partly) from biomass to give specified information,
or information of a specified kind, to the Authority;
(b)
specify what, for this purpose, constitutes “biomass”;
30
(c)
require the information to be given in a specified form and
within a specified period;
(d)
authorise or require the Authority to postpone the issue of
certificates under section 32B to the operator of a generating
station who fails to comply with a requirement imposed by
35
virtue of paragraph (a) or (c) until such time as the failure is
remedied;
(e)
authorise or require the Authority to refuse to issue certificates
to such a person or to refuse to issue them unless the failure is
remedied within a prescribed period.
40
(4)
The Authority may publish information obtained by virtue of
subsection (3).
(5)
No person is required by virtue of this section to provide any
information which the person could not be compelled to give in
evidence in civil proceedings in the High Court or, in Scotland, the
45
Court of Session.
32K
Renewables obligation order: general provision
(1)
A renewables obligation order may—

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(a)
make further provision as to the functions of the Authority in
relation to the matters dealt with by the order;
(b)
make transitional provision and savings;
(c)
provide for anything falling to be calculated or otherwise
determined under the regulations to be calculated or
5
determined by such persons, in accordance with such
procedure and by reference to such matters and to the opinion
of such persons, as may be specified in the order;
(d)
make different provision for different cases or circumstances.
(2)
Provision made by virtue of subsection (1)(b) may, in particular,
10
include provision about the treatment of certificates issued under
section 32B before the substitution of that section by section 36 of the
Energy Act 2008.
(3)
Provision made by virtue of subsection (1)(d) may, in particular,
make—
15
(a)
different provision in relation to different suppliers;
(b)
different provision in relation to generating stations of different
descriptions;
(c)
different provision in relation to different localities.
(4)
In subsection (3) “supplier” means an electricity supplier or a Northern
20
Ireland supplier.
32L
Renewables obligation orders: procedure
(1)
Before making a renewables obligation order, the Secretary of State
must consult—
(a)
the Authority,
25
(b)
the Council,
(c)
the electricity suppliers to whom the proposed order would
apply,
(d)
such generators of electricity from renewable sources as the
Secretary of State considers appropriate, and
30
(e)
such other persons, if any, as the Secretary of State considers
appropriate.
(2)
A renewables obligation order is not to be made unless a draft of the
instrument containing it has been laid before and approved by a
resolution of each House of Parliament.
35
32M
Interpretation of sections 32 to 32M
(1)
In this section and sections 32 to 32L—
“banding provision” is to be construed in accordance with section
32D(3);
“fossil fuel” means—
40
(a)
coal,
(b)
lignite,
(c)
natural gas (within the meaning of the Energy Act 1976),
(d)
crude liquid petroleum,
(e)
petroleum products (within the meaning of that Act), or
45
(f)
any substance produced directly or indirectly from a
substance mentioned in paragraphs (a) to (e);

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“generated” means generated at any place whether situated in the
United Kingdom or elsewhere, and cognate expressions are to
be construed accordingly;
“Northern Ireland authority” means the Northern Ireland
Authority for Utility Regulation;
5
“Northern Ireland supplier” means an electricity supplier within
the meaning of Part 7 of the Energy (Northern Ireland) Order
2003;
“the renewables obligation” is to be construed in accordance with
section 32(4);
10
“renewables obligation certificate” is to be construed in
accordance with section 32B;
“renewables obligation order” is to be construed in accordance
with section 32;
“renewable sources” means sources of energy other than fossil fuel
15
or nuclear fuel, but includes waste of which not more than a
specified proportion is waste which is, or is derived from, fossil
fuel;
“specified”, in relation to a renewables obligation order, means
specified in the order.
20
(2)
For the purposes of the definition of “renewable sources”, a renewables
obligation order may make provision—
(a)
about what constitutes “waste”;
(b)
about how the proportion of waste which is, or is derived from,
fossil fuel is to be determined;
25
(c)
about what, subject to such exceptions as may be specified,
constitutes sufficient evidence of that proportion in any
particular case;
(d)
authorising the Authority, in specified circumstances, to require
an operator of a generating station to arrange—
30
(i)
for samples of any fuel used (or to be used) in the
generating station, or of any gas or other substance
produced as a result of the use of such fuel, to be taken
by a person, and analysed in a manner, approved by the
Authority, and
35
(ii)
for the results of that analysis to be made available to the
Authority.
(3)
A renewables obligation order may make provision, for the purposes of
sections 32 to 32L, about the circumstances in which electricity is to be
regarded as having been supplied—
40
(a)
to customers in Great Britain;
(b)
to customers in Northern Ireland.”
37
Section 36: supplemental provision
(1)
In the case of an order made under section 32 of the Electricity Act 1989 (c. 29)
after the commencement of section 36, the requirements of section 32L(1) of
45
that Act (as substituted by section 36) may be satisfied by consultation
undertaken before that commencement or the passing of this Act.
(2)
Where a NI amending order is made, the Secretary of State may, by order—

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(a)
make consequential amendments to any reference to a provision of the
NI Energy Order contained in sections 32 to 32M of the Electricity Act
1989 (c. 29) (as substituted by section 36);
(b)
amend section 32K(2) of that Act (as so substituted) so as to extend it to
certificates issued before the relevant time by the Northern Ireland
5
Authority for Utility Regulation under provision included, by virtue of
Article 54 of the NI Energy Order, in an order made under Article 52 of
that Order
(3)
In this section—
“NI amending order” means an order under Article 56 of the NI Energy
10
Order which (by virtue of section 39(2)) makes amendments to Part 7 of
that Order to take account of any amendments made or proposed to be
made by section 36;
“NI Energy Order” means the Energy (Northern Ireland) Order 2003 (S.I.
2003/419 (N.I. 6));
15
“the relevant time” means the time when the first order made under
Article 52 of the NI Energy Order by virtue of a NI amending order
comes into force.
38
Existing savings relating to section 32 of the Electricity Act 1989
In section 67 of the Utilities Act 2000 (c. 27) (savings relating to section 32 of the
20
Electricity Act 1989 etc), in subsection (1)(c) for “(as mentioned in that section)
made pursuant to such an order” substitute “made pursuant to such an order
(or such arrangements as modified or replaced by virtue of an order under this
section)”.
39
The Northern Ireland renewables obligation
25
(1)
In section 121 of the Energy Act 2004 (c. 20) (power of Gas and Electricity
Markets Authority to act on behalf of Northern Ireland regulator)—
(a)
in subsection (1) for “Energy” substitute “Utility”,
(b)
in subsection (2) for “Articles 52” to the end substitute “the Northern
Ireland provisions.”, and
30
(c)
after that subsection insert—
“(3)
For this purpose “the Northern Ireland provisions” means—
(a)
Articles 52 to 55 of the Energy (Northern Ireland) Order
2003 (renewables obligations for Northern Ireland
suppliers), and
35
(b)
any provision made (whether before or after the passing
of the Energy Act 2008) by an order under Article 56 of
the Energy (Northern Ireland) Order 2003 which
amends Part 7 of that Order.”
(2)
In Article 56(1) of the NI Energy Order (power to amend Part 7 of that Order to
40
take account of amendments of corresponding Great Britain provisions), the
reference to amendments made to sections 32 to 32C of the Electricity Act 1989
includes a reference to section 36 of this Act.
(3)
In the case of an order under Article 52 of the NI Energy Order made by virtue
of a NI amending order, the requirements of Article 52(6) of the NI Energy
45
Order (consultation before making a renewables order) may be satisfied by

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consultation undertaken before the NI amending order came into force or the
passing of this Act.
(4)
In this section “NI amending order” and “NI Energy Order” have the same
meaning as in section 37.
Offshore electricity transmission
5
40
Offshore electricity transmission
(1)
Part 1 of the Electricity Act 1989 (c. 29) (electricity supply) is amended as
follows.
(2)
After section 6C insert—
“6D
Section 6C: supplemental provision
10
(1)
The provision made by regulations under section 6C(1) may also
include—
(a)
provision requiring a person within subsection (2), in relation to
a tender exercise, to make payments to the Authority, in
prescribed circumstances, in respect of the Authority’s tender
15
costs in relation to the exercise;
(b)
provision requiring a person within subsection (2)(a) (“the
relevant person”) in prescribed circumstances—
(i)
to pay a deposit of a prescribed amount to the
Authority, or to provide the Authority with security in a
20
form approved by it, or
(ii)
to make arrangements for a person approved by the
Authority to pay to the Authority such a deposit or
provide it with such security,

in respect of any liability which the relevant person has, or may
25
in future have, by virtue of paragraph (a);
(c)
provision requiring the owner of a regulated asset, in a case
where a transitional tender exercise has been held, to make a
payment of a prescribed amount to the Authority in respect of
any costs incurred by the Authority in connection with any
30
assessment of the costs which have been, or ought to have been,
incurred in connection with that asset;
(d)
provision about the times at which payments are to be made
under regulations made by virtue of paragraph (a) or (c) or
deposits or other forms of security are to be provided under
35
regulations made by virtue of paragraph (b);
(e)
provision about—
(i)
the circumstances in which a payment made in
accordance with regulations made by virtue of
paragraph (a) is to be repaid (wholly or in part);
40
(ii)
the circumstances in which such a repayment is to
include an amount representing interest accrued on the
whole or part of the payment;
(iii)
the circumstances in which a deposit (including any
interest accrued on it) or other security provided in
45
accordance with regulations made by virtue of

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paragraph (b) is to be released or forfeited (wholly or in
part);
(f)
the effect on a person’s participation in the tender exercise of a
failure to comply with a requirement imposed by virtue of this
subsection, and the circumstances in which the tender exercise
5
is to stop as a result of such a failure.
(2)
The persons within this subsection, in relation to a tender exercise,
are—
(a)
the person who made the connection request for the purposes
of which the tender exercise has been, is being or is to be, held;
10
(b)
any person who submits an application for the offshore
transmission licence to which the tender exercise relates.
(3)
For the purposes of subsection (2)(a) a person makes a connection
request when the person—
(a)
makes an application to the holder of a co-ordination licence (in
15
accordance with any provision made by the licence) for an offer
of connection to and use of a transmission system, or
(b)
before the coming into force of section 180 of the Energy Act
2004 (meaning of “high voltage line”), makes an application to
the holder of a distribution licence (in accordance with any
20
provision made by the licence) for an offer of connection to and
use of a system in circumstances where the application is for
connection to and use of that system by a system—
(i)
which was a distribution system at the time the
application was made (or would have been had it been
25
in existence at that time), and
(ii)
which consists (wholly or mainly) of electric lines of a
nominal voltage of 132 kilovolts.
(4)
A person (“P”) is to be treated as within subsection (2)(a) if—
(a)
P would have made the connection request, but for the fact that
30
another person had already made an application within
subsection (3)(a) or (b), and
(b)
the benefit of that application, or any agreement resulting from
it, is vested in P.
(5)
Where regulations are made by virtue of subsection (1)(a) or (b),
35
regulations made by virtue of subsection (1)(e) must ensure that, as
soon as reasonably practicable after a tender exercise is finished, steps
are taken by the Authority, in accordance with the regulations, to
ensure that the aggregate of—
(a)
any fees under section 6A(2) in respect of applications for the
40
offshore transmission licence to which the tender exercise
relates,
(b)
any payments made in accordance with regulations made by
virtue of subsection (1)(a) and not repaid, and
(c)
the value of any security forfeited in accordance with
45
regulations made by virtue of subsection (1)(e)(iii),

does not exceed the Authority’s tender costs.
(6)
Where regulations under section 6C—

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(a)
restrict the making of applications for offshore transmission
licences, or
(b)
operate so as to prevent an application from being considered
or further considered, if the applicant does not meet one or
more prescribed requirements,
5

such regulations may make provision enabling a person to apply to the
Authority for a decision as to the effect of any such restriction or
requirement if the person were to make an application for such a
licence.
(7)
Regulations made by virtue of subsection (6) may enable the Authority
10
to charge a person who makes such an application a prescribed fee for
any decision given in response to it.
(8)
In this section—
“co-ordination licence” means a transmission licence which
authorises a person to co-ordinate and direct the flow of
15
electricity onto and over a transmission system—
(a)
by means of which the transmission of electricity takes
place, and
(b)
the whole or a part of which is at a relevant place (within
the meaning of section 4(5));
20
“offshore transmission licence” has the same meaning as in section
6C;
“prescribed” has the same meaning as in that section;
“regulated asset”, in relation to a tender exercise, means an asset
which the person granted the offshore transmission licence
25
requires in order to enable that person to comply with the
obligations under the licence;
“successful bidder”, in relation to a tender exercise, means the
person to whom, as a result of that exercise, the offshore
transmission licence has been, or is to be, granted;
30
“tender costs”, in relation to a tender exercise, means—
(a)
any costs incurred or likely to be incurred by the
Authority for the purposes of the exercise, and
(b)
such proportion as the Authority considers appropriate
of the costs which—
35
(i)
have been, or are likely to be, incurred by it
under or for the purposes of section 6C or of
regulations under that section, and
(ii)
are not directly attributable to a particular tender
exercise;
40
“tender exercise” means the steps taken in accordance with
regulations under section 6C with a view to determining to
whom a particular offshore transmission licence is to be
granted;
“transitional tender exercise” means a tender exercise in relation to
45
which paragraph 1(1) of Schedule 2A applies.
(9)
Any sums received by the Authority under regulations made by virtue of this
section are to be paid into the Consolidated Fund.