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Energy Bill, continued

“feed-in tariffs” means a requirement on utilities to buy electricity from

renewable sources at a feed-in rate to be set by the Secretary of State,

dependent on available renewable technology;

“micro-generation” means any generation under 250kW;

“renewable energy” means any form of energy produced in the generation

stage without using fossil fuels or emitting carbon;

“a feed-in rate” means a guaranteed payment by the energy suppliers for

each kilowatt of electricity generated.’.

Carbon capture competitions

Steve Webb

Martin Horwood

NC7

To move the following Clause:—

‘In any competitive process relating to carbon capture initiated by the Secretary

of State, equal status shall be given to all carbon capture technologies.’.

Feed-in tariffs (No. 2)

Steve Webb

Martin Horwood

NC8

To move the following Clause:—

‘(1)	The Secretary of State may make regulations for the purposes of requiring

designated electricity suppliers to purchase the electricity generated from

renewable sources by small-scale generators (“feed-in tariffs”).

(2)	For the purposes of subsection (1)—

(a)	“small-scale generators” are persons generating electricity below a level

to be determined by the Secretary of State following consultation,

(b)	“renewable sources” are such energy sources as may be determined by

the Secretary of State following consultation,

(c)	“designated electricity suppliers” are those persons licensed by the

Secretary of State to supply electricity as set out in section 6 of the

Electricity Act 1989.

(3)	The Secretary of State must consult for the purposes of determining the

appropriate form of regulations as set out in subsection (5) below and must—

(a)	commence such consultation within a period of six months of the day on

which this Act is passed,

(b)	determine a reasonable period of consultation,

(c)	consult with—

(i)	designated electricity suppliers,

(ii)	the National Consumer Council (incorporating energywatch),

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Energy Bill, continued

(iii)

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

(iv)	the National Grid,

(v)	such generators of electricity from renewable sources as he

considers appropriate,

(vi)	such environmental organisations as he considers appropriate,

and

(vii)

such other persons as he considers appropriate.

(4)	The Secretary of State shall, within six months after the end of such consultation,

make regulations for the purpose of bringing into effect feed-in tariffs pursuant to

subsection (1), in such manner as the Secretary of State shall consider

appropriate.

(5)	The regulations mentioned in subsection (4) above must—

(a)	define the renewable sources in respect of which feed-in tariffs shall

apply,

(b)	define the maximum level of electricity generation in respect of which

feed-in tariffs shall be available, as referred to in subsection (2)(a) above,

(c)	define which persons generating electricity from renewable sources shall

be eligible for feed-in tariffs,

(d)	prescribe the means by which tariffs applicable under feed-in tariffs are

to be calculated and, where necessary, amended,

(e)	prescribe, where appropriate, the terms and duration of the feed-in tariff

arrangements,

(f)	make provision for the payment and incidence of the costs of connection

of relevant small-scale generators to the National Grid,

(g)	make provision for the regulation of feed-in tariff arrangements by a

designated body,

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

effectiveness of the regulations made under subsection (1) in achieving

their objectives,

(i)	provide for the making of any necessary amendments to distribution

licences or supply licences held by any person, and

(j)	make such changes as may be necessary to existing legislation, including

that providing for the Renewables Obligation Order.’.

Report on payment of energy bills

Charles Hendry

Mr John Baron

NC9

To move the following Clause:—

‘The Secretary of State shall, in each calendar year following that in which this

Act is passed, lay before Parliament a report on—

(a)	his assessment of the number of households able to pay their energy bills

in full and on time in order to illustrate the number facing difficulty in

paying, and

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Energy Bill, continued

(b)	the progress that has been made towards lowering this number.’.

Renewable heat obligation

Charles Hendry

Mr John Baron

NC10

To move the following Clause:—

‘(1)	The Secretary of State shall make regulations which introduce a renewable heat

obligation on suppliers of fossil heating fuels.

(2)	In this section a “renewable heat obligation” means a market-based regulation

which requires suppliers of fossil fuels for the purpose of heating, to replace, over

a specified period, a rising proportion of their supply with metered units of

renewable heat energy.

(3)	The regulations must provide that renewable heat energy units—

(a)	are not eligible for support under the Renewable Obligation on suppliers

of electricity, and

(b)	may be generated using—

(i)

biofuel;

(ii)	blended and co-fired biofuel;

(iii)

any solid, liquid, gaseous or electrical source of energy (other

than fossil fuel or nuclear) which is produced—

(a)	wholly by energy from a renewable source, or

(b)	wholly by a process powered wholly by such

energy;

(iv)	electricity, where there is a net surplus of useable heat energy

relative to the electrical input.

(4)	Regulations made under this section must be made within a period of 12 months

beginning on the date on which this Act is passed.’.

Duty to encourage a reduction in emissions of greenhouse gases

Charles Hendry

Mr John Baron

NC11

To move the following Clause:—

‘In section 3A of the Electricity Act (c. 29) (the principal objective and general

duties of the Secretary of State and the Authority), at end of subsection (1), insert

“while reducing the emissions of greenhouse gases in accordance with

Government targets for greenhouse gas emissions reductions.’.

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Energy Bill, continued

Duties of the regulatory authority

Dr Alan Whitehead

Dr Desmond Turner

Paddy Tipping

NC12

To move the following Clause:—

‘(1)	For sections 4AA(1) and (2) of the Gas Act 1986 (c.44) substitute—

“(1)	The principal objective of the Secretary of State and the Gas and

Electricity Markets Authority (in this Act referred to as “the Authority”)

in carrying out their respective functions under this Part is to deliver a

secure and sustainable energy system operating within greenhouse gas

emission limits notified by the Secretary of State to the Authority in

accordance with the provisions of the Climate Change Act 2008 [c. ].

(2)	The Secretary of State and the Authority shall carry out those functions

in the manner which he or it considers is best calculated to further the

principal objective, having regard to—

(a)	the protection of the interests of consumers in relation to gas or

heat conveyed through pipes, through effective competition

between persons engaged in, or in commercial activities

connected with, the transportation or supply of gas or heat; and

(b)	the need to secure that, so far as it is economical to meet them,

all reasonable demands in Great Britain for gas and heat

conveyed though pipes are met; and

(c)	the need to secure that licence holders are able to finance the

activities which are the subject of obligations imposed by or

under this Part or the Utilities Act 2000 (c.27).”

(2)	For section 3(1) and (2) of the Electricity Act 1989 (c.29) substitute—

“(1)	The principal objective of the Secretary of State and the Gas and

Electricity Markets Authority (in this Act referred to as “the Authority”)

in carrying out their respective functions under this Part is to deliver a

secure and sustainable energy system operating within greenhouse gas

emission limits notified by the Secretary of State to the Authority in

accordance with the provisions of the Climate Change Act 2008 [c ].

(2)	The Secretary of State and the Authority shall carry out those functions

in the manner which he or it considers is best calculated to further the

principal objective, having regard to—

(a)	the protection of the interests of consumers in relation to

electricity conveyed by distribution systems, through effective

competition between persons engaged in, or in commercial

activities connected with, the generation, transmission,

distribution or supply of electriciy; and

(b)	the need to secure that all reasonable demands for electricity are

met; and

(c)	the need to secure that licence holders are able to finance the

activities which are the subject of obligations imposed by or

under this Part of the Utilities Act 2000 (c.27).”’.

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Energy Bill, continued

Access for renewable energy to the electricity and gas grids

Dr Alan Whitehead

Dr Desmond Turner

Paddy Tipping

NC13

To move the following Clause:—

‘(1)	After section 3A of the 1989 Electricity Act (c.29) there is inserted—

“3B	Access for renewable energy to the electricity networks

(1)	In carrying out their respective functions, the Secretary of State and the

Authority shall ensure that—

(a)	transmission system operators and distribution system operators

guarantee the transmission and distribution of electricity

produced from renewable energy sources, without prejudice to

the maintenance of the reliability and safety of the grid;

(b)	transmission system operators and distribution system operators

provide for priority access to the grid system for electricity

produced from renewable energy sources;

(c)	when dispatching electricity generating installations,

transmission system operators shall give priority to generating

installations using renewable energy sources insofar as the

security of the national electricity system permits;

(d)	transmission system operators and distribution system operators

are required to set up and publish their standard rules relating to

the bearing and sharing of costs of technical adaptations,

including grid connections and grid reinforcements, which are

necessary in order to integrate new producers feeding electricity

produced from renewable energy sources into the interconnected

grid, and that such rules—

(i)	shall be based on objective, transparent and non-

discriminatory criteria taking particular account of all

the costs and benefits associated with the connection of

these producers to the grid and of the particular

circumstances of producers located in peripheral regions

and in regions of low population density,

(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 transmission system operators and distribution

system operators derive from connections;

(e)	transmission system operators and distribution system 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 transmission and distribution fees does not

discriminate against electricity from renewable energy sources,

including in particular electricity from renewable energy sources

produced in peripheral regions, such as island regions, and in

regions of low population densitiy;

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Energy Bill, continued

(g)	fees charged by transmission system operators and distribution

system operators for the transmission and distribution of

electricity from plants using renewable energy souces 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 intergration of new producers.

(2)	After section 4AA of the Gas Act 1986 (c.44) there is inserted—

“4AB	Access for renewable gas to the gas networks

(1)	In carrying out their respective functions, the Secretary of State and the

Authority shall ensure that—

(a)	gas network operators guarantee the transport of gas produced

from renewable energy sources, without prejudice to the

maintenance of the reliability and safety of the gas networks;

(b)	gas network operators provide for priority access to the gas

networks system for gas produced from renewable energy

sources;

(c)	when dispatching gas, network operators shall give priority to

renewable energy sources insofar as the security of the national

gas system permits;

(d)	gas network operators are required to set up and publish their

standard rules relating to the bearing and sharing of costs of

technical adaptations, such as gas network connections and gas

network upgrades, which are necessary in order to integrate new

producers feeding gas produced from renewable energy sources

in to the interconnected gas networks, and that such rules—

(i)	shall be based on objective, transparent and non-

discriminatory criteria taking particular account of all

the costs and benefits associated with the connection of

these producers to the gas networks and of the particular

circumstances of producers located in peripheral regions

and in regions of low population density,

(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.

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Energy Bill, continued

(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);

“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,

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Revised 4 March 2008