59

House of Commons

Notices of Amendments

given on

Thursday 21st February 2008

For other Amendment(s) see the following page(s):

Energy Bill Committee 46-57

Public Bill Committee

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Energy Bill

Malcolm Wicks

25

Clause  41,  page  37,  line  5,  at end insert—

‘(c)	activities preparatory to the matters mentioned in paragraph (b);’

Member’s explanatory statement

This amendment will enable planning activities that occur in relation to decommissioning, waste

management and disposal once the station has ceased operating to be regulated (and, in particu­

lar, paid for from the decommissioning and waste fund) and ensure that the relevant planning ac­

tivities take place.

Malcolm Wicks

26

Clause  41,  page  37,  line  9,  after ‘(5)(a)’ insert ‘or (c)’.

Member’s explanatory statement

This amendment will enable the Secretary of State to designate planning activities by order. It will

allow for the regulation of those activities to ensure that hte relevant activities take place and that

they are adequately funded.

Malcolm Wicks

27

Clause  49,  page  42,  line  18,  leave out ‘the Secretary of State determines’ and insert

‘the Secretary of State has reason to believe’.

Member’s explanatory statement

This amendment alters the threshold that the Secretary of State must meet in order to exercise his

powers to gather inforamtion for the purposes of making a decision as to whether or not to propose

a modification to a programme.

Notices of Amendments: 21st February 2008

60

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).”.’.

Notices of Amendments: 21st February 2008

61

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;

Notices of Amendments: 21st February 2008

62

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. Such cost benefits could arise from the direct use of

the low-voltage grid.

(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

Notices of Amendments: 21st February 2008

63

Energy Bill, continued

network. Such cost benefits could arise from the direct use of

low-voltage gas networks.

(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,

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

Notices of Amendments: 21st February 2008

64

Energy Bill, continued

(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

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;

Notices of Amendments: 21st February 2008

65

Energy Bill, continued

(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;

(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.

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Revised 22 February 2008