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Public Bill Committee: 28th February 2008                

109

 

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


 
 

Public Bill Committee: 28th February 2008                

110

 

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;


 
 

Public Bill Committee: 28th February 2008                

111

 

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


 
 

Public Bill Committee: 28th February 2008                

112

 

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.


 
 

Public Bill Committee: 28th February 2008                

113

 

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.”’.

 



 
 

Public Bill Committee: 28th February 2008                

114

 

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;


 
 

Public Bill Committee: 28th February 2008                

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Energy Bill, continued

 
 

(c)    

to make modifications relating to the operation of, access to, or use of

 

pipe-line systems and distribution systems; and

 

(d)    

to make incidental, consequential, or transitional modifications.

 

(10)    

Before making modifications under this section, the Secretary of State must

 

consult the Authority, the holder of any licence being modified, and such other

 

persons as he considers appropriate.

 

(11)    

Subsection (10) may be satisfied by consultation undertaken before, as well as by

 

consultation undertaken after, the commencement of this section.

 

(12)    

Any modification under subsection (8)(b) of part of a standard condition of a

 

licence shall not prevent any other part of the condition from continuing to be

 

regarded as a standard condition for the purposes of Part 1 of the Gas Act 1986 or

 

Part 1 of the Electricity Act 1989.

 

(13)    

Where the Secretary of State modifies the standard conditions of licences of any

 

type under subsection (8)(b), the Authority must make the same modifications of

 

those standard conditions for the purposes of their incorporation into licences of

 

that type granted after that time.

 

(14)    

The Secretary of State must publish any modifications under this section in such

 

manner as he considers appropriate.

 

(15)    

The power of the Secretary of State under this section may not be exercised after

 

the end of the period of five years beginning with the passing of this Act.’.

 


 

Reports on meters

 

Paddy Tipping

 

Dr Alan Whitehead

 

Dr Brian Iddon

 

NC21

 

Parliamentary Star - white    

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)    

the number of smart meters that have been installed in that period,

 

including their effect on reducing carbon emissions and fuel bills;

 

(b)    

the discussions he has held with energy supply companies about—

 

(i)    

pre-payment meters,

 

(ii)    

the number of such meters in use, and

 

(iii)    

their tariffs;

 

(c)    

the progress that has been made in reducing carbon emissions through—

 

(i)    

increased use of renewable generation, and

 

(ii)    

energy conservation measures in households;

 

(d)    

the discussions he has held with energy supply companies about the

 

impact of pre-payment meters and their tariffs.’.

 



 
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