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145

 

House of Commons

 
 

Thursday 6th March 2008

 

Public Bill Committee

 

New Amendments handed in are marked thus Parliamentary Star

 

Other Amendments not tabled within the required notice period are marked thus Parliamentary Star - white

 

Energy Bill


 

Note

 

The Amendments have been arranged in accordance with the Order of the

 

Committee [5th February 2008].

 


 

Malcolm Wicks

 

3

 

Clause  65,  page  52,  line  36,  at end insert—

 

‘(5)    

In subsection (4) “enactment” includes an instrument made under an enactment.’.

 

Member’s explanatory statement

 

This amendment ensures that for the purposes of the provisions about financial security for

 

decommissioning of offshore renewables installations in the Bill, references to an enactment

 

include secondary legislation.

 


 

Malcolm Wicks

 

4

 

Clause  69,  page  57,  line  35,  at end insert ‘or Northern Ireland legislation’.

 

Member’s explanatory statement

 

This amendment ensures that for the purposes of the provisions about financial security for

 

decommissioning of oil and gas installations, where references are made to an enactment,

 

Northern Ireland legislation is included where appropriate and relevant.

 



 
 

Public Bill Committee: 6th March 2008                  

146

 

Energy Bill, continued

 
 

John Robertson

 

28

 

Clause  73,  page  62,  line  26,  leave out from ‘all’ to end of line 27 and insert

 

‘existing apparatus, works and associated services necessary for the existing and future

 

operation of such pipe-line or network of a similar nature with a third party.”’.

 

John Robertson

 

30

 

Clause  73,  page  62,  leave out lines 31 and 32 and insert—

 

‘(d)    

separating, purifying, blending, odorising or compressing upstream gas

 

for the purpose of—’.

 

John Robertson

 

29

 

Clause  73,  page  63,  line  6,  leave out from ‘all’ to ‘and’ in line 7 and insert ‘existing

 

apparatus, works and associated services necessary for the existing and future operation

 

of such pipe-line or network of a similar nature with a third party”,’.

 


 

Steve Webb

 

Martin Horwood

 

22

 

Page  69,  line  10,  leave out Clause 78.

 


 

Charles Hendry

 

Mr John Baron

 

47

 

Clause  85,  page  75,  line  8,  at end add—

 

‘(3)    

This section does not apply to electricity display devices.

 

(4)    

In this section, “electricity display device” means a device that can be attached to

 

a meter board in order to provide information on the amount of electricity being

 

used.’.

 


 

New Clauses

 

Smart meters

 

Charles Hendry

 

Mr John Baron

 

NC1

 

To move the following Clause:—

 

‘(1)    

The Secretary of State shall make regulations which require smart meters to be

 

installed for gas and electricity in all homes by the end of a specified period of ten

 

years from the date on which the regulations are made.


 
 

Public Bill Committee: 6th March 2008                  

147

 

Energy Bill, continued

 
 

(2)    

In this section a “smart meter” means a gas or electricity meter with two-way

 

communication capabilities including communication capability to a display

 

which illutstrates household usage and cost per unit consumed.

 

(3)    

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

 

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

 


 

Information on ETS allocations

 

Charles Hendry

 

Mr John Baron

 

NC2

 

To move the following Clause:—

 

‘(1)    

Companies involved in the generation of electricity must publish information in

 

their Annual Reports on the amount and value of any allocation they have

 

received from the EU ETS and the amount that has been paid for such an

 

allocation.

 

(2)    

Companies failing to publish the information required under subsection (1) shall

 

be guilty of an offence, and shall be liable on conviction to a fine not exceeding

 

level 5 on the standard scale.’.

 


 

Repayment in cases of over-charging

 

Charles Hendry

 

Mr John Baron

 

NC3

 

To move the following Clause:—

 

‘(1)    

The Secretary of State shall by regulations make provision about the repayment

 

of sums by energy suppliers following over-charging of consumers.

 

(2)    

Regulations under subsection (1) may, in particular—

 

(a)    

make provision about the circumstances in which energy suppliers are

 

required to make repayments and the time limits for such repayments;

 

(b)    

provide for the Authority to determine charges to be made on energy

 

companies which fail to meet requirements relating to repayments.’.

 


 

Information on contributions towards environmental taxes

 

Charles Hendry

 

Mr John Baron

 

NC4

 

To move the following Clause:—


 
 

Public Bill Committee: 6th March 2008                  

148

 

Energy Bill, continued

 
 

‘(1)    

The Secretary of State shall make regulations requiring energy utilities

 

companies to specify the proportion of those consumers’ energy bills that

 

contribute towards environmental taxes.

 

(2)    

In this section “environmental taxes” means—

 

(a)    

the Renewables Obligation Certificates,

 

(b)    

charges resulting from the EU Emissions Trading Scheme, and

 

(c)    

charges resulting from the Carbon Emissions Reduction Targets and

 

future additional environmental charges.’.

 


 

Annual report on gas storage

 

Charles Hendry

 

Mr John Baron

 

NC5

 

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 appropriate volume of onshore gas storage to ensure

 

long-term energy security, and

 

(b)    

the progress that has been made towards reaching that target.’.

 


 

Feed-in tariffs

 

Charles Hendry

 

Mr John Baron

 

NC6

 

To move the following Clause:—

 

‘(1)    

The Secretary of State may by regulations make provision to introduce feed-in

 

tariffs for renewable micro-generation and decentralised energy.

 

(2)    

In this section—

 

“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.’.

 



 
 

Public Bill Committee: 6th March 2008                  

149

 

Energy Bill, continued

 
 

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),

 

(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—


 
 

Public Bill Committee: 6th March 2008                  

150

 

Energy Bill, continued

 
 

(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

 

(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.


 
 

Public Bill Committee: 6th March 2008                  

151

 

Energy Bill, continued

 
 

(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.’.

 


 

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


 
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