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| Thursday 21st February 2008 |
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| For other Amendment(s) see the following page(s):
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| Energy Bill Committee 46-57 |
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| Clause 41, page 37, line 5, at end insert— |
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| | ‘(c) | activities preparatory to the matters mentioned in paragraph (b);’ |
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| | Member’s explanatory statement
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| | This amendment will enable planning activities that occur in relation to decommissioning, waste |
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| | management and disposal once the station has ceased operating to be regulated (and, in particu |
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| | lar, paid for from the decommissioning and waste fund) and ensure that the relevant planning ac |
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| Clause 41, page 37, line 9, after ‘(5)(a)’ insert ‘or (c)’. |
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| | Member’s explanatory statement
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| | This amendment will enable the Secretary of State to designate planning activities by order. It will |
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| | allow for the regulation of those activities to ensure that hte relevant activities take place and that |
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| | they are adequately funded. |
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| Clause 49, page 42, line 18, leave out ‘the Secretary of State determines’ and insert |
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| ‘the Secretary of State has reason to believe’. |
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| | Member’s explanatory statement
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| | This amendment alters the threshold that the Secretary of State must meet in order to exercise his |
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| | powers to gather inforamtion for the purposes of making a decision as to whether or not to propose |
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| | a modification to a programme. |
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| | Duties of the regulatory authority |
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| To move the following Clause:— |
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| | ‘(1) | For sections 4AA(1) and (2) of the Gas Act 1986 (c.44) substitute— |
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| | “(1) | The principal objective of the Secretary of State and the Gas and |
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| | Electricity Markets Authority (in this Act referred to as “the Authority”) |
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| | in carrying out their respective functions under this Part is to deliver a |
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| | secure and sustainable energy system operating within greenhouse gas |
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| | emission limits notified by the Secretary of State to the Authority in |
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| | accordance with the provisions of the Climate Change Act 2008 [c. ]. |
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| | (2) | The Secretary of State and the Authority shall carry out those functions |
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| | in the manner which he or it considers is best calculated to further the |
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| | principal objective, having regard to— |
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| | (a) | the protection of the interests of consumers in relation to gas or |
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| | heat conveyed through pipes, through effective competition |
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| | between persons engaged in, or in commercial activities |
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| | connected with, the transportation or supply of gas or heat; and |
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| | (b) | the need to secure that, so far as it is economical to meet them, |
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| | all reasonable demands in Great Britain for gas and heat |
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| | conveyed though pipes are met; and |
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| | (c) | the need to secure that licence holders are able to finance the |
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| | activities which are the subject of obligations imposed by or |
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| | under this Part or the Utilities Act 2000 (c.27).” |
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| | (2) | For section 3(1) and (2) of the Electricity Act 1989 (c.29) substitute— |
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| | “(1) | The principal objective of the Secretary of State and the Gas and |
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| | Electricity Markets Authority (in this Act referred to as “the Authority”) |
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| | in carrying out their respective functions under this Part is to deliver a |
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| | secure and sustainable energy system operating within greenhouse gas |
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| | emission limits notified by the Secretary of State to the Authority in |
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| | accordance with the provisions of the Climate Change Act 2008 [c ]. |
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| | (2) | The Secretary of State and the Authority shall carry out those functions |
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| | in the manner which he or it considers is best calculated to further the |
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| | principal objective, having regard to— |
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| | (a) | the protection of the interests of consumers in relation to |
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| | electricity conveyed by distribution systems, through effective |
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| | competition between persons engaged in, or in commercial |
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| | activities connected with, the generation, transmission, |
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| | distribution or supply of electriciy; and |
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| | (b) | the need to secure that all reasonable demands for electricity are |
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| | (c) | the need to secure that licence holders are able to finance the |
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| | activities which are the subject of obligations imposed by or |
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| | under this Part of the Utilities Act 2000 (c.27).”.’. |
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| | Access for renewable energy to the electricity and gas grids |
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| To move the following Clause:— |
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| | ‘(1) | After section 3A of the 1989 Electricity Act (c.29) there is inserted— |
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| | “3B | Access for renewable energy to the electricity networks |
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| | “(1) | In carrying out their respective functions, the Secretary of State and the |
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| | Authority shall ensure that— |
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| | (a) | transmission system operators and distribution system operators |
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| | guarantee the transmission and distribution of electricity |
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| | produced from renewable energy sources, without prejudice to |
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| | the maintenance of the reliability and safety of the grid; |
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| | (b) | transmission system operators and distribution system operators |
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| | provide for priority access to the grid system for electricity |
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| | produced from renewable energy sources; |
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| | (c) | when dispatching electricity generating installations, |
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| | transmission system operators shall give priority to generating |
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| | installations using renewable energy sources insofar as the |
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| | security of the national electricity system permits; |
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| | (d) | transmission system operators and distribution system operators |
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| | are required to set up and publish their standard rules relating to |
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| | the bearing and sharing of costs of technical adaptations, |
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| | including grid connections and grid reinforcements, which are |
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| | necessary in order to integrate new producers feeding electricity |
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| | produced from renewable energy sources into the interconnected |
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| | grid, and that such rules— |
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| | (i) | shall be based on objective, transparent and non- |
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| | discriminatory criteria taking particular account of all |
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| | the costs and benefits associated with the connection of |
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| | these producers to the grid and of the particular |
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| | circumstances of producers located in peripheral regions |
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| | and in regions of low population density, |
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| | (ii) | may provide for different types of connection, and |
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| | (iii) | shall provide for the sharing of costs to be enforced by a |
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| | mechanism based on objective, transparent and non- |
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| | discriminatory criteria taking into account the benefits |
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| | which initially and subsequently connected producers as |
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| | well as transmission system operators and distribution |
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| | system operators derive from connections; |
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| | (e) | transmission system operators and distribution system operators |
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| | are required to provide any new producer wishing to be |
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| | connected to the system with a comprehensive and detailed |
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| | estimate of the costs associated with the connection; |
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| | (f) | the charging of transmission and distribution fees does not |
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| | discriminate against electricity from renewable energy sources, |
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| | including in particular electricity from renewable energy sources |
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| | produced in peripheral regions, such as island regions, and in |
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| | regions of low population densitiy; |
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| | (g) | fees charged by transmission system operators and distribution |
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| | system operators for the transmission and distribution of |
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| | electricity from plants using renewable energy souces reflect |
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| | realisable cost benefits resulting from the plant’s connection to |
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| | the network. Such cost benefits could arise from the direct use of |
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| | (2) | The Secretary of State shall review and take the necessary measures to |
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| | improve the frameworks and rules for bearing and sharing of costs |
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| | referred to in paragraph (d) by 30th June 2011 at the latest, and every two |
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| | years thereafter, in order to ensure the intergration of new producers. |
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| | (2) | After section 4AA of the Gas Act 1986 (c.44) there is inserted— |
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| | “4AB | Access for renewable gas to the gas networks |
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| | (1) | In carrying out their respective functions, the Secretary of State and the |
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| | Authority shall ensure that— |
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| | (a) | gas network operators guarantee the transport of gas produced |
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| | from renewable energy sources, without prejudice to the |
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| | maintenance of the reliability and safety of the gas networks; |
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| | (b) | gas network operators provide for priority access to the gas |
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| | networks system for gas produced from renewable energy |
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| | (c) | when dispatching gas, network operators shall give priority to |
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| | renewable energy sources insofar as the security of the national |
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| | (d) | gas network operators are required to set up and publish their |
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| | standard rules relating to the bearing and sharing of costs of |
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| | technical adaptations, such as gas network connections and gas |
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| | network upgrades, which are necessary in order to integrate new |
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| | producers feeding gas produced from renewable energy sources |
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| | in to the interconnected gas networks, and that such rules— |
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| | (i) | shall be based on objective, transparent and non- |
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| | discriminatory criteria taking particular account of all |
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| | the costs and benefits associated with the connection of |
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| | these producers to the gas networks and of the particular |
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| | circumstances of producers located in peripheral regions |
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| | and in regions of low population density, |
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| | (ii) | may provide for different types of connection, and |
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| | (iii) | shall provide for the sharing of costs to be enforced by a |
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| | mechanism based on objective, transparent and non- |
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| | discriminatory criteria taking into account the benefits |
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| | which initially and subsequently connected producers as |
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| | well as gas network operators derive from the |
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| | (e) | gas network operators are required to provide any new producer |
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| | wishing to be connected to the system with a comprehensive and |
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| | detailed estimate of the costs associated with the connection; |
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| | (f) | the charging of transport fees does not discriminate against gas |
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| | from renewable energy sources, including in particular gas from |
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| | renewable energy sources produced in peripheral regions, such |
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| | as island regions, and in regions of low population densitiy; and |
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| | (g) | fees charged by gas network operators for the transport of gas |
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| | from plants using renewable energy sources reflect realisable |
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| | cost benefits resulting from the plant’s connection to the |
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| | network. Such cost benefits could arise from the direct use of |
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| | low-voltage gas networks. |
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| | (2) | The Secretary of State shall review and take the necessary measures to |
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| | improve the frameworks and rules for bearing and sharing of costs |
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| | referred to in paragraph (d) by 30th June 2011 at the latest, and every two |
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| | years thereafter, in order to ensure the integration of new producers.”.’. |
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| | Tariffs for renewable energy |
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| To move the following Clause:— |
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| | ‘(1) | The Secretary of State may by order impose on each energy supplier falling |
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| | within a specified description (a “designated energy supplier”) an obligation to |
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| | reimburse producers of renewable energy falling within a specified description (a |
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| | “renewable energy producer”) for each unit of renewable energy produced as set |
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| | out in subsection (4) (and that reimbursement rate is referred to in this section as |
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| | a “renewable energy tariff”). |
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| | (2) | The descriptions of energy supplier upon which an order may impose the |
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| | renewable energy tariff are those supplying electricity or gas— |
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| | (b) | in England and Wales; or |
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| | | excluding such categories of supplier as are specified. |
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| | “renewable source” has the same meaning as in the Utilities Act 2000 (c. |
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| | “renewable energy” means energy from renewable sources; |
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| | “renewables obligation” means the obligation specified in section 32 of the |
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| | Electricity Act 1989 (c. 29); |
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| | “specified” means specified in the order. |
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| | (4) | The renewable energy tariff shall set the reimbursement level for each kilowatt |
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| | hour of energy produced by the renewable source and may— |
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| | (a) | be set at different levels for different types of renewable source, |
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| | (b) | be varied at different times as prescribed in the order or in successive |
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| | (5) | The order shall set out— |
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| | (a) | the renewable sources in respect of which renewable energy tariffs shall |
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| | (b) | the tariff applicable to each renewable source, |
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| | (c) | which installations shall be eligible for renewable energy tariffs, and any |
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| | provisions to exclude installations accredited under the renewables |
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| | (d) | which renewable energy producer shall be eligible to receive renewable |
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| | (e) | which designated energy supplier shall be responsible for paying the |
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| | renewable energy tariff to a particular renewable energy producer, |
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| | (f) | the terms and duration of the renewable energy tariff arrangements, |
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| | (g) | how the amount of energy produced and upon which the renewable |
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| | energy tariff is payable shall be measured, determined or deemed, |
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| | (h) | provisions for the regulation of renewable energy tariff arrangements by |
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| | (i) | provision for the Secretary of State to report periodically on the |
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| | effectiveness of the regulations made hereunder, |
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| | (j) | any necessary amendment to distribution licences or supply licences held |
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| | (k) | such other provisions as may be required for the efficient and cost- |
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| | effective operation of the renewable energy tariff. |
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| | (6) | Before making an order, the Secretary of State must consult— |
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| | (b) | the energy suppliers to whom the proposed order would apply; |
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| | (c) | representatives of renewable energy producers to whom the proposed |
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| | (d) | any other persons he considers appropriate. |
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| | (7) | An order under this section shall not be made unless a draft of the statutory |
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| | instrument containing it has been laid before, and approved by a resolution of, |
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| | each House of Parliament.’. |
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| | Extension of Marine Renewables Deployment Fund |
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| To move the following Clause:— |
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| | ‘The Secretary of State shall make regulations to extend the remit of the Marine |
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| | Renewables Deployment Fund to include support for the early development of |
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| | wave and tidal technologies that need to complete pre-competitive research and |
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| | development through deployment and demonstration.’. |
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| | Social tariffs and energy assistance package |
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| To move the following Clause:— |
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| | ‘(1) | The Secretary of State may make regulations prescribing that domestic gas and |
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| | electricity suppliers (“suppliers”), or each gas and electricity supplier of a |
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| | specified description, shall make available energy assistance packages to such gas |
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| | and electricity customers or group or groups of gas and electricity customers as |
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| | are prescribed by the Secretary of State (“eligible consumers”). |
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| | (2) | The regulations shall— |
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| | (a) | set out the group or groups of gas and electricity customers who are to be |
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| | eligible for energy assistance packages; |
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| | (b) | specify the component parts of an energy assistance package, including |
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| | but not limited to obligations to— |
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| | (i) | supply gas or electricity or both at a reduced cost (the “social |
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| | tariff”) to an eligible consumer; |
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| | (ii) | provide energy efficiency and heating measures that are |
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| | available to an eligible consumer through suppliers’ existing and |
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| | future energy efficiency obligations; |
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| | (iii) | refer an eligible consumer to the relevant energy efficiency and |
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| | heating schemes funded by national and local government; |
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| | (iv) | refer to such services that are able to verify that the recipient is |
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| | claiming or is able to claim all the financial assistance to which |
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| | (c) | specify the interval or intervals at which an eligible consumer’s |
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| | entitlement to the energy assistance package should be reviewed. |
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| | (3) | The regulations shall set out the discounting mechanism that suppliers shall be |
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| | required to apply in order to ensure that the social tariff represents a rate lower |
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| | than any other rate available to other customers of that supplier, regardless of the |
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| | eligible customer’s payment method. |
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| | (4) | The regulations shall specify the criteria by which the Secretary of State is to |
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| | determine targets that will set out the number of energy assistance packages |
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| | suppliers on whom the obligations are imposed by the regulations should offer |
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| | and the time period in which these targets are to be met. |
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| | (5) | Particular provision in the regulations relating to the targets shall— |
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| | (a) | require suppliers to give to the Secretary of State such specific |
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| | information, or information of a specified nature, about their proposals |
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| | for complying with their respective energy assistance package as |
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| | required by the Secretary of State; |
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| | (b) | require gas and electricity suppliers to produce to the Secretary of State |
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| | evidence of a specified kind demonstrating that they have complied with |
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| | their obligations under this order; |
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| | (c) | set out the method by which the Secretary of State will assess the |
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| | performance of each gas and electricity supplier against their respective |
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| | (d) | set out the sanctions available to the Secretary of State in any instance |
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| | where gas and electricity suppliers fail to achieve the targets they have |
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| | been set under these regulations. |
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| | (6) | The regulations shall prescribe the mechanisms by which the Secretary of State |
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| | shall ensure these regulations and resultant targets are implemented in a way that |
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| | falls on each supplier on whom these regulations are imposed, to ensure that no |
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| | supplier is unduly disadvantaged in competing with other suppliers as a result of |
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| | (7) | The regulations shall set out the obligations upon other relevant departments and |
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| | agencies of government to assist suppliers and other agencies deemed appropriate |
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| | (a) | the efficient delivery of energy assistance packages to eligible |
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| | (b) | offering the income maximisation service component of the energy |
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| | assistance package described in (2)(b)(iii) above. |
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| | (a) | provide for derogations from any of the requirements contained therein; |
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| | (b) | make supplementary, incidental and transitional provisions; |
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| | (c) | set out the arrangements applicable to suppliers who enter the supply |
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| | market after the beginning of the period to which the regulations relate. |
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| | (9) | Before making any regulation under this section the Secretary of State shall |
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| | consult the Gas and Electricity Markets Authority (“the Authority”), the Gas and |
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| | Electricity Consumers Council (“the Council”) and suppliers and such other |
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| | persons as he considers appropriate. |
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