House of Commons Public Bill Committee Proceedings

House of Commons

Session 2007 - 08
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Other Bills before Parliament

387

House of Commons

Wednesday 30th April 2008

Report Stage Proceedings

Energy Bill, As Amended

New Clauses

Exception for activities carried on partly on land etc

Mr Secretary Hutton

Added  NC6

To move the following Clause:—

‘(1)
This Chapter does not apply in relation to—

(a)
the use of a controlled place for the unloading of gas to an installation

which is connected with land by a permanent structure providing access

at all times and for all purposes;

(b)
the conversion of a natural feature of which part is in a controlled place

and part under land, if the operations necessary for the conversion take

place wholly or mainly on, over or under land;

(c)
the use of a place for the storage of gas, or the recovery of gas so stored,

where—

(i)
the gas was, or is to be, introduced into the store by means of a

well on land, and

(ii)
part of the place is a controlled place and part is under land;

(d)
the establishment or maintenance of an installation for the purposes of

activities falling within paragraph (a).

(2)
In this section—

“land” means—

(a)
land in England;

(b)
land in Wales;

(c)
land in Scotland landward of the low water mark;

“well” includes a borehole.’.

Report Stage Proceedings: 30th April 2008
388

Energy Bill, continued

Disposal of hazardous material

Mr Secretary Hutton

Added  NC7

To move the following Clause:—

‘(1)
Where the Secretary of State enters an agreement for, or in connection with, the

disposal of relevant hazardous material by or on behalf of the Secretary of State,

the agreement may provide for a fee to be paid to the Secretary of State.

(2)
The Secretary of State may not enter an agreement which provides for the

payment of a fee unless the consent of the Treasury has been obtained in relation

to the amount of the proposed fee.

(3)
The fee for which such an agreement provides may include—

(a)
such amount as the Secretary of State considers prudent by reason of any

uncertainty which exists about the relevant expenditure which will or

may be incurred in connection with the Secretary of State’s obligations

under the agreement in relation to the relevant hazardous material;

(b)
an amount in respect of such proportion as the Secretary of State

considers appropriate of the aggregate of—

(i)
the relevant expenditure which has been, will or may be, incurred

in connection with the design and construction of a repository in

which material (including any hazardous material to which the

agreement relates) is to be disposed of, and

(ii)
such amount as the Secretary of State considers it prudent to

make allowance for by reason of any uncertainty which exists

about the relevant expenditure which will or may be incurred as

mentioned in sub-paragraph (i).

(4)
In this section—

“hazardous material” has the meaning given by section 37 of the Energy Act

2004 (c. 20);

“relevant expenditure” means expenditure incurred by the Secretary of

State, the Nuclear Decommissioning Authority or any other person;

“relevant hazardous material” means hazardous material which is, or is

required to be, the subject of a funded decommissioning programme.’.

Power to amend licence conditions: smart meters

Mr Secretary Hutton

Added  NC8

To move the following Clause:—

‘(1)
The Secretary of State may modify—

(a)
a condition of a particular licence under section 6(1)(c) or (d) of the

Electricity Act 1989 (c. 29) (distribution and supply licences);

(b)
the standard conditions incorporated in licences under those provisions

by virtue of section 8A of that Act;

(c)
a condition of a particular licence under section 7 or 7A of the Gas Act

1986 (c. 44) (transporter, supply and shipping licences);

(d)
the standard conditions incorporated in licences under those provisions

by virtue of section 8 of that Act;

Report Stage Proceedings: 30th April 2008
389

Energy Bill, continued

(e)
a document maintained in accordance with the conditions of licences

under section 6(1) of the Electricity Act 1989 or section 7 or 7A of the

Gas Act 1986, or an agreement that gives effect to a document so

maintained.

(2)
The Secretary of State may exercise the power in subsection (1) for the purpose

only of—

(a)
requiring the holder of a licence to provide or install, or facilitate the

provision, installation or operation of, meters of a particular kind, or

(b)
requiring the holder of a licence to make arrangements related to the

matters mentioned in paragraph (a).

(3)
Modifications made by virtue of subsection (1) may include—

(a)
technical specifications for meters (including specifications in respect of

matters relevant to the ability to obtain remote access to meters);

(b)
a prohibition on the supply of gas or electricity through a meter other than

a meter which complies with a technical specification under paragraph

(a);

(c)
provision about the installation of meters which comply with a technical

specification under paragraph (a) (including provision about the

replacement of existing meters);

(d)
provision about electricity generated by a customer;

(e)
provision about the circumstances in which any pre-payment facilities of

a meter may be utilised;

(f)
provision about the use of a meter remotely to disconnect a customer’s

premises;

(g)
provision about the protection of consumers;

(h)
provision about access to, and the use of, an electricity distribution

system or part of an electricity distribution system for communication in

connection with a meter;

(i)
provision about access to information from meters (including provision

enabling a customer, or a person acting on a customer’s behalf, to have

access to information about the customer’s consumption of gas or

electricity);

(j)
provision about communication of information by or to meters (including

provision about its onward communication) and about the use of such

information;

(k)
provision requiring the holder of the licence to enter (or refrain from

entering) into an agreement of a specified kind, or with a specified

person;

(l)
provision specifying, or enabling the determination of, a date from which

a modification is to take effect.

(4)
The power conferred by subsection (1)—

(a)
may be exercised to make different provision in relation to different

classes of customer;

(b)
may be exercised generally, only in relation to specified cases or subject

to exceptions (including provision for a case to be excepted only so long

as specified conditions are satisfied);

(c)
may be exercised differently in different cases or circumstances;

(d)
includes a power to make incidental, supplementary, consequential or

transitional modifications.

(5)
The power conferred by subsection (1) may not be exercised after the end of the

period of 5 years beginning with the day on which that subsection comes into

force.

Report Stage Proceedings: 30th April 2008
390

Energy Bill, continued

(6)
Provision included in a licence by virtue of that power—

(a)
need not relate to the activities authorised by the licence;

(b)
in the case of a licence under section 7 or 7A of the Gas Act 1986 (c. 44),

may do any of the things authorised by section 7B(5) of that Act (which

apply to the Gas and Electricity Market Authority’s power with respect

to licence conditions under section 7B(4)(a));

(c)
in the case of a licence under section 6(1)(c) or (d) of the Electricity Act

1989 (c. 29), may do any of the things authorised by section 7(2) to (4)

of that Act (which apply to that Authority’s power with respect to licence

conditions under section 7(1)(a)).

(7)
In this section a reference to a meter includes a reference to a visual display unit,

or any other device, associated with or ancillary to a meter.’.

Power to amend licence conditions: procedure

Mr Secretary Hutton

Added  NC9

To move the following Clause:—

‘(1)
Before making a modification, the Secretary of State must consult—

(a)
the holder of any licence being modified,

(b)
the Gas and Electricity Markets Authority, and

(c)
such other persons as the Secretary of State considers appropriate.

(2)
Subsection (1) may be satisfied by consultation before, as well as by consultation

after, the passing of this Act.

(3)
Before making modifications, the Secretary of State must lay a draft of the

modifications before Parliament.

(4)
If, within the 40-day period, either House of Parliament resolves not to approve

the draft, the Secretary of State may not take any further steps in relation to the

proposed modifications.

(5)
If no such resolution is made within that period, the Secretary of State may make

the modifications in the form of the draft.

(6)
Subsection (4) does not prevent a new draft of proposed modifications being laid

before Parliament.

(7)
The Secretary of State must publish details of any modifications as soon as

reasonably practicable after they are made.

(8)
In this section “40-day period”, in relation to a draft of proposed modifications,

means the period of 40 days beginning with the day on which the draft is laid

before Parliament (or, if it is not laid before each House of Parliament on the same

day, the later of the two days on which it is laid).

(9)
For the purposes of calculating the 40-day period, no account is to be taken of any

period during which Parliament is dissolved or prorogued or during which both

Houses are adjourned for more than 4 days.

(10)
In this section “modification” means a modification under section [Power to

amend licence conditions: smart meters].’.

Report Stage Proceedings: 30th April 2008
391

Energy Bill, continued

Smart meters: supplemental

Mr Secretary Hutton

Added  NC10

To move the following Clause:—

‘(1)
A modification under section [Power to amend licence conditions: smart meters]

of part of a standard condition of a licence does 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 (c. 44) or Part 1 of the Electricity Act 1989 (c. 29).

(2)
Where the Secretary of State makes modifications under section [Power to amend

licence conditions: smart meters](1)(b) or (d) of the standard conditions of a

licence of any type, the Gas and Electricity Markets Authority must—

(a)
make the same modification of those standard conditions for the purposes

of their incorporation in licences of that type granted after that time, and

(b)
publish the modification.

(3)
The Secretary of State may by order make such modifications of provision made

by or under an Act or an Act of the Scottish Parliament (whenever passed or

made) as the Secretary of State considers appropriate in consequence of provision

made under section [Power to amend licence conditions: smart meters].’.

Implementation of new metering arrangements

Steve Webb

Martin Horwood

Not called  NC1

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 the 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;

Report Stage Proceedings: 30th April 2008
392

Energy Bill, continued

(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;

(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.’.

Report Stage Proceedings: 30th April 2008
393

Energy Bill, continued

Carbon dioxide thresholds for electricity generating stations

Steve Webb

Martin Horwood

Not selected  NC2

To move the following Clause:—

‘(1)
The Secretary of State shall, by regulations, set a threshold for the emissions of

carbon dioxide from electricity generating stations.

(2)
The Secretary of State may not give approval for an electricity generating station

whose emissions of carbon dioxide exceed the threshold set in regulations made

under subsection (1).

(3)
The regulations in subsection (1) shall be made by statutory instrument, which

may not be made unless a draft of the instrument has been laid before, and

approved by a resolution of, each House of Parliament.’.

Regulations on new meters

Steve Webb

Martin Horwood

Not called  NC3

To move the following Clause:—

‘Where the Secretary of State makes regulations in connection with new metering

arrangements under—

(a)
this Act;

(b)
Part 1 of the Gas Act 1986; or

(c)
Part 1 of the Electricity Act 1989,

such regulations must require that such meters have the facility to use the data that

they collect on gas or electricity consumption for the purpose of assisting the

househoulder to select the gas or electricity tariff which is most to the

householder’s advantage.’.

Tariffs for renewable energy

Alan Simpson

Mr Alan Duncan

Martin Horwood

Mr Michael Meacher

Mr John Grogan

Colin Challen

Mr Bernard Jenkin

Mrs Linda Riordan

David Heyes

Kate Hoey

Mr Gordon Prentice

Mr Michael Clapham

Kelvin Hopkins

Ms Katy Clark

Negatived on division  NC4

To move the following Clause:—