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Energy Bill, continued

(ii)	may provide for different types of connection, and

(iii)

shall provide for the sharing of costs to be enforced by a

mechanism based on objective, transparent and non-

discriminatory criteria taking into account the benefits

which initially and subsequently connected producers as

well as gas network operators derive from the

connections;

(e)	gas network operators are required to provide any new producer

wishing to be connected to the system with a comprehensive and

detailed estimate of the costs associated with the connection;

(f)	the charging of transport fees does not discriminate against gas

from renewable energy sources, including in particular gas from

renewable energy sources produced in peripheral regions, such

as island regions, and in regions of low population densitiy; and

(g)	fees charged by gas network operators for the transport of gas

from plants using renewable energy sources reflect realisable

cost benefits resulting from the plant’s connection to the

network.

(2)	The Secretary of State shall review and take the necessary measures to

improve the frameworks and rules for bearing and sharing of costs

referred to in paragraph (d) by 30th June 2011 at the latest, and every two

years thereafter, in order to ensure the integration of new producers.”’.

Tariffs for renewable energy

Dr Alan Whitehead

Dr Desmond Turner

Paddy Tipping

NC14

To move the following Clause:—

‘(1)	The Secretary of State may by order impose on each energy supplier falling

within a specified description (a “designated energy supplier”) an obligation to

reimburse producers of renewable energy falling within a specified description (a

“renewable energy producer”) for each unit of renewable energy produced as set

out in subsection (4) (and that reimbursement rate is referred to in this section as

a “renewable energy tariff”).

(2)	The descriptions of energy supplier upon which an order may impose the

renewable energy tariff are those supplying electricity or gas—

(a)	in Great Britain;

(b)	in England and Wales; or

(c)	in Scotland,

excluding such categories of supplier as are specified.

(3)	In this section—

“renewable source” has the same meaning as in the Utilities Act 2000 (c.

27);

“renewable energy” means energy from renewable sources;

“renewables obligation” means the obligation specified in section 32 of the

Electricity Act 1989 (c. 29);

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Energy Bill, continued

“specified” means specified in the order.

(4)	The renewable energy tariff shall set the reimbursement level for each kilowatt

hour of energy produced by the renewable source and may—

(a)	be set at different levels for different types of renewable source,

(b)	be varied at different times as prescribed in the order or in successive

orders.

(5)	The order shall set out—

(a)	the renewable sources in respect of which renewable energy tariffs shall

apply,

(b)	the tariff applicable to each renewable source,

(c)	which installations shall be eligible for renewable energy tariffs, and any

provisions to exclude installations accredited under the renewables

obligation,

(d)	which renewable energy producer shall be eligible to receive renewable

energy tariffs,

(e)	which designated energy supplier shall be responsible for paying the

renewable energy tariff to a particular renewable energy producer,

(f)	the terms and duration of the renewable energy tariff arrangements,

(g)	how the amount of energy produced and upon which the renewable

energy tariff is payable shall be measured, determined or deemed,

(h)	provisions for the regulation of renewable energy tariff arrangements by

a designated body,

(i)	provision for the Secretary of State to report periodically on the

effectiveness of the regulations made hereunder,

(j)	any necessary amendment to distribution licences or supply licences held

by any person, and

(k)	such other provisions as may be required for the efficient and cost-

effective operation of the renewable energy tariff.

(6)	Before making an order, the Secretary of State must consult—

(a)	the Authority,

(b)	the energy suppliers to whom the proposed order would apply,

(c)	representatives of renewable energy producers to whom the proposed

order would apply, and

(d)	any other persons he considers appropriate.

(7)	An order under this section shall not be made unless a draft of the statutory

instrument containing it has been laid before, and approved by a resolution of,

each House of Parliament.’.

Extension of Marine Renewables Deployment Fund

Steve Webb

Martin Horwood

NC15

To move the following Clause:—

‘The Secretary of State shall make regulations to extend the remit of the Marine

Renewables Deployment Fund to include support for the early development of

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Energy Bill, continued

wave and tidal technologies that need to complete pre-competitive research and

development through deployment and demonstration.’.

Social tariffs and energy assistance package

Paddy Tipping

Dr Alan Whitehead

Dr Brian Iddon

NC16

To move the following Clause:—

‘(1)	The Secretary of State may make regulations prescribing that domestic gas and

electricity suppliers (“suppliers”), or each gas and electricity supplier of a

specified description, shall make available energy assistance packages to such gas

and electricity customers or group or groups of gas and electricity customers as

are prescribed by the Secretary of State (“eligible consumers”).

(2)	The regulations shall—

(a)	set out the group or groups of gas and electricity customers who are to be

eligible for energy assistance packages;

(b)	specify the component parts of an energy assistance package, including

but not limited to obligations to—

(i)	supply gas or electricity or both at a reduced cost (the “social

tariff”) to an eligible consumer;

(ii)	provide energy efficiency and heating measures that are

available to an eligible consumer through suppliers’ existing and

future energy efficiency obligations;

(iii)

refer an eligible consumer to the relevant energy efficiency and

heating schemes funded by national and local government;

(iv)	refer to such services that are able to verify that the recipient is

claiming or is able to claim all the financial assistance to which

they are entitled.

(c)	specify the interval or intervals at which an eligible consumer’s

entitlement to the energy assistance package should be reviewed.

(3)	The regulations shall set out the discounting mechanism that suppliers shall be

required to apply in order to ensure that the social tariff represents a rate lower

than any other rate available to other customers of that supplier, regardless of the

eligible customer’s payment method.

(4)	The regulations shall specify the criteria by which the Secretary of State is to

determine targets that will set out the number of energy assistance packages

suppliers on whom the obligations are imposed by the regulations should offer

and the time period in which these targets are to be met.

(5)	Particular provision in the regulations relating to the targets shall—

(a)	require suppliers to give to the Secretary of State such specific

information, or information of a specified nature, about their proposals

for complying with their respective energy assistance package as

required by the Secretary of State;

(b)	require gas and electricity suppliers to produce to the Secretary of State

evidence of a specified kind demonstrating that they have complied with

their obligations under this order;

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Energy Bill, continued

(c)	set out the method by which the Secretary of State will assess the

performance of each gas and electricity supplier against their respective

targets;

(d)	set out the sanctions available to the Secretary of State in any instance

where gas and electricity suppliers fail to achieve the targets they have

been set under these regulations.

(6)	The regulations shall prescribe the mechanisms by which the Secretary of State

shall ensure these regulations and resultant targets are implemented in a way that

falls on each supplier on whom these regulations are imposed, to ensure that no

supplier is unduly disadvantaged in competing with other suppliers as a result of

these obligations.

(7)	The regulations shall set out the obligations upon other relevant departments and

agencies of government to assist suppliers and other agencies deemed appropriate

in—

(a)	the efficient delivery of energy assistance packages to eligible

consumers;

(b)	offering the income maximisation service component of the energy

assistance package described in (2)(b)(iii) above.

(8)	The regulations may—

(a)	provide for derogations from any of the requirements contained therein;

(b)	make supplementary, incidental and transitional provisions;

(c)	set out the arrangements applicable to suppliers who enter the supply

market after the beginning of the period to which the regulations relate.

(9)	Before making any regulation under this section the Secretary of State shall

consult the Gas and Electricity Markets Authority (“the Authority”), the Gas and

Electricity Consumers Council (“the Council”) and suppliers and such other

persons as he considers appropriate.

(10)	Any regulations under this section shall not be made unless a draft of the

instrument containing it has been laid before, and approved by a resolution of,

each House of Parliament.’.

Member’s explanatory statement

This Amendment provides the Secretary of State with a permissive power to instruct energy

companies to bring forward measures to reduce fuel poverty.

Use of biomethane

Dr Alan Whitehead

Dr Desmond Turner

Paddy Tipping

NC17

To move the following Clause:—

‘(1)	In section 32(8) of the Electricity Act 1989 (c. 29), in the definition of “renewable

sources”, at end insert—

‘(2)    

“and shall include the use of any gas drawn from a gas network to which

premises supplied by the supplier are connected where at the time the gas

is drawn from the network the supplier has arranged for the shipping to

the consumer at those premises of the same quantity of renewable

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Energy Bill, continued

biomethane gas and that quantity has been introduced to the gas

transmission or distribution system to which the consumer’s premises are

connected.”.

(3)	In section 124 of the Energy Act 2004 (c. 20), after subsection (5) insert—

“(6)	For the purposes of this section ‘supplied’ shall include supply of any gas

or other fuel drawn from a gas or other fuel network to any premises

where at the time the gas or other fuel is drawn from the network by a

consumer the supplier has arranged for the shipping to the consumer at

the same premises of the same quantity of renewable transport fuel and

that quantity has been introduced to the gas transmission or distribution

system to which those premises are connected.”’.

Provision for regulations for a carbon dioxide performance standard on electricity

generating stations

Steve Webb

Martin Horwood

NC18

To move the following Clause:—

‘After section 36B of the Electricity Act 1989 insert—

“36C	Generating stations: carbon dioxide emissions performance standard

(1)	The Secretary of State may by regulation prescribe a carbon dioxide

emission performance standard applying to any generating stations

requiring consent for construction or extension under section 36.

(2)	Regulations under this section must prescribe a carbon dioxide emission

performance standard that is in no case greater than 400 kilograms of

carbon dioxide per megawatt hour of electricity generated at any

individual generating station.

(3)	Regulations under this section may prescribe—

(a)	the ways in which proposed generating stations are able to

demonstrate compliance with the carbon dioxide emission

performance standard including by way of carbon capture and

storage;

(b)	the information that must be submitted with an application under

section 36 to demonstrate compliance with the carbon dioxide

emission performance standard;

(c)	how compliance by generating stations that have demonstrated

compliance with the prescribed performance standard and are

granted consent under section 36 shall be monitored and

enforced, including appointing and conferring powers on an

appropriate agency to carry out such monitoring and

enforcement;

(d)	any sources of electricity generation that are deemed to be

compliant with the carbon dioxide emission performance

standard including electricity generated from renewable sources.

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Energy Bill, continued

(4)	The Secretary of State shall not grant a consent under section 36 for any

generating station that does not comply with any prescribed standard.

(5)	Before making regulations under this section (including setting the level

of performance standard), the Secretary of State shall consult—

(a)	electricity generators;

(b)	the Gas and Electricity Markets Authority;

(c)	the Gas and Electricity Consumer Council;

(d)	the Environment Agency with regard to England and Wales;

(e)	the Scottish Environmental Protection Agency with regard to

Scotland;

(f)	other persons or bodies representing the interests of the

electricity industry, local government and the environment, and

(g)	any other persons or bodies as he may consider appropriate.

(6)	The Secretary of State must make regulations under this section no later

than 12 months from the date on which this Act is passed.

(7)	Any regulations under this section shall not be made unless a draft at the

instrument containing it has been laid before, and approved by a

resolution of, each House of Parliament.

(8)	In this section—

“carbon dioxide emission performance standard” means a standard

prescribed by regulation setting the maximum amount of carbon dioxide

that may be emitted from a generating station.”’.

Member’s explanatory statement

This Amendment gives the Secretary of State an enabling power to introduce a performance

standard that sets the maximum amount of carbon dioxide emissions from individual electricity

generating stations. The standard would apply to any generating stations requiring consent for

construction or extension under section 36 of the Electricity Act 1989.

Notices

John Robertson

NC19

To move the following Clause:—

‘(1)	Section 31 of the Petroleum Act 1998 (c. 17) (section 29 notices: supplementary

provisions) is amended as follows.

(2)	After subsection (2) insert—

“(2A)

Subject to subsection (3), the Secretary of State shall not give a notice

under section 29(1) in relation to an offshore installation to a person

within paragraph (b) or (c) of section 30(1) unless the person owns or has

owned any interest in the offshore installation.”.’.

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Energy Bill, continued

Implementation of new metering arrangements

Steve Webb

Martin Horwood

NC20

To move the following Clause:—

‘(1)	The relevant licensees for the purposes of this Part are—

(a)	gas suppliers and gas transporters within the meaning of Part 1 of the Gas

Act 1986 (c. 44); and

(b)	electricity suppliers and electricity distributors within the meaning of

Part 1 of the Electricity Act 1989 (c. 29).

(2)	The effective date for the purposes of this Part is the date which is 10 years after

the date on which section 79 comes into force.

(3)	Expressions used in this Part have the same meaning as in Part 1 of the Gas Act

1986 or Part 1 of the Electricity Act 1989.

(4)	As from the effective date, a relevant licensee must not supply gas or electricity

to any premises that is not subject to the provisions of this section.

(5)	The Secretary of State may exempt any relevant licensee from the prohibition

imposed by subsection (4) in relation to such premises, for such period of time,

and subject to such conditions as he considers appropriate in all the circumstances

of the case.

(6)	References in this Part to new metering arrangements are to arrangements

(including the provision and operation of any necessary communications and

data-handling infrastructure) designed to ensure that, by the effective date, all

premises supplied with gas or electricity in Great Britain will continue to be so

supplied through a meter that conforms to the following three requirements—

(a)	that the meter must record and be able to store measured consumption

data for multiple time periods;

(b)	that the meter, either on its own or with an ancillary device, must

facilitate remote access to such data; and

(c)	that the meter must meet any specifications that may be set out in any

regulations made by the Secretary of State under this Part, pursuant to his

duties under Part 1 of the Gas Act 1986 and Part 1 of the Electricity Act

1989, for the purposes of facilitating the introduction of new metering

arrangements.

(7)	This section may not be brought into force before 1st January 2010.

(8)	The Secretary of State may, in accordance with this section, modify—

(a)	the conditions of a particular licence held under section 7(1) or 7A(1) or

(2) of the Gas Act 1986 or under section 6(1) of the Electricity Act 1989;

(b)	the standard conditions of licences of any type mentioned in those

subsections

if he considers it necessary or expedient to do so for the purpose of securing the

implementation of the provisions of this section.

(9)	The power to make modifications under paragraph (a) or (b) of subsection (8)

includes powers—

(a)	to make modifications requiring licence holders, or classes of licence

holder, to cooperate together, under arrangements approved by the

Authority;

(b)	to make modifications requiring any relevant licensee to take or refrain

from taking any specified action, whether in relation to premises supplied

with gas or electricity or otherwise;

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Revised 26 February 2008