LORDS amendments to the

Energy Bill

[The page and line references are to HL Bill 52, the bill as first printed for the Lords.]

Clause 20

Page 11, line 13, after “authority” insert “, after consulting the licence holder,”

Clause 34

Page 18, line 8, leave out “another person” and insert “a public body”

Page 18, line 14, leave out “persons” and insert “bodies”

Page 18, line 15, leave out “person” and insert “body”

Page 18, line 17, leave out “persons” and insert “bodies”

Page 18, line 19, leave out “persons” and insert “bodies”

Page 18, line 21, leave out “person” and insert “body”

Page 18, line 22, leave out “person’s” and insert “body’s”

Page 18, line 24, leave out “person” and insert “body”

Page 18, line 30, leave out “person” and insert “body”

Page 18, line 38, leave out “person” and insert “body”

Clause 35

Page 19, leave out line 23

Page 19, line 24, at end insert “, or

(c)    

if no provision has been made by virtue of paragraph (b), for the

general or residual purposes of that Act.”

Clause 37

Page 19, line 35, leave out “Secretary of State” and insert “relevant minister”

Page 19, line 35, at end insert—

“(1A)    

“The relevant minister” means—

(a)    

in the case of Scotland, the Scottish Ministers,

(b)    

in any other case, the Secretary of State.

(1B)    

In subsection (1A) “Scotland” includes—

(a)    

so much of the internal waters and territorial sea of the United

Kingdom as are adjacent to Scotland, and

(b)    

a Renewable Energy Zone, or any part of such a Zone, which is

designated by order under section 84(5) of the Energy Act 2004

(areas in relation to which Scottish Ministers have functions).”

Page 20, leave out lines 7 to 9 and insert “to customers in the relevant part of Great

Britain,”

Page 20, leave out lines 14 to 19 and insert “the amount of electricity supplied by it

during a specified period to customers in the relevant part of Great Britain.”

Page 20, line 27, after “in” insert “the relevant part of”

Page 21, line 2, after “in” insert “the relevant part of”

Page 21, line 9, at end insert—

“( )    

Except as provided by a renewables obligation order, a renewables

obligation certificate counts towards discharging the renewables

obligation regardless of whether the order under which it is issued is made

by the Secretary of State or the Scottish Ministers.”

Page 21, line 10, leave out from beginning to “may” in line 11 and insert “A

renewables obligation order”

Page 21, line 14, leave out “that” and insert “the relevant”

Page 23, line 42, at end insert—

“( )    

In this section “generating station”—

(a)    

in the case of an order made by the Scottish Ministers, means a

generating station which is situated in Scotland;

(b)    

in the case of an order made by the Secretary of State, means a

generating station which is not situated in Scotland.

( )    

For this purpose “Scotland” is to be construed in accordance with section

32(1B).”

Page 25, line 23, leave out “Secretary of State” and insert “relevant minister”

Page 26, line 9, after “made” insert “by the relevant minister”

Page 26, line 10, after “made” insert “by that minister”

Page 26, line 13, leave out “Secretary of State” and insert “relevant minister”

Page 26, line 16, leave out “Secretary of State” and insert “relevant minister”

Page 26, line 17, leave out “the Secretary of State” and insert “that minister”

Page 26, line 34, leave out from “awarded” to end of line 39 and insert “if—

(a)    

the generating station is of a specified description, or

(b)    

the circumstances of the case meet specified requirements.

( )    

The requirements specified under subsection (4)(b) may relate to the time

when the grant was awarded (whether a time before or after the coming

into force of this section).”

Page 26, line 42, leave out “each” and insert “a”

Page 27, line 5, at end insert—

“( )    

If the grant in respect of which an amount falls to be paid under paragraph

(a) or (b) of subsection (5) was paid by the Scottish Ministers, the references

in those paragraphs to the Secretary of State are to be read as references to

those Ministers.”

Page 27, leave out lines 16 to 27

Page 32, line 21, leave out “Secretary of State” and insert “relevant minister”

Page 32, line 28, leave out “Secretary of State” and insert “relevant minister”

Page 32, line 29, leave out “Secretary of State” and insert “relevant minister”

Page 32, line 31, after “made” insert “by the Secretary of State”

Page 32, line 33, at end insert—

“( )    

A renewables obligation order is not to be made by the Scottish Ministers

unless a draft of the instrument containing it has been laid before and

approved by a resolution of the Scottish Parliament.”

Page 33, line 8, at end insert—

““the relevant minister” has the meaning given by section 32;

“the relevant part of Great Britain”” means—

(a)    

in the case of a renewables obligation order made by the

Secretary of State, England and Wales (including so much of

the internal waters and territorial sea of the United

Kingdom as are adjacent to England or Wales);

(b)    

in the case of a renewables obligation order made by the

Scottish Ministers, Scotland (including so much of the

internal waters and territorial sea of the United Kingdom as

are adjacent to Scotland);”

Page 33, line 37, at end insert—

“( )    

For the purposes of the definition of “the relevant part of Great Britain”, the

territorial sea adjacent to England is the territorial sea adjacent to the

United Kingdom, other than the territorial sea adjacent to Scotland, Wales

or Northern Ireland.

( )    

An Order in Council under section 126(2) of the Scotland Act 1998 (c. 46)

(apportionment of sea areas) has effect for the purposes of this section and

sections 32 to 32L if, or to the extent that, the Order is expressed to apply—

(a)    

by virtue of this subsection, for those purposes, or

(b)    

if no provision has been made by virtue of paragraph (a), for the

general or residual purposes of that Act.

( )    

An order or Order in Council made under or by virtue of section 158(3) or

(4) of the Government of Wales Act 2006 (apportionment of sea areas) has

effect for the purposes of this section if, or to the extent that, the order or

Order in Council is expressed to apply—

(a)    

by virtue of this subsection, for those purposes, or

(b)    

if no provision has been made by virtue of paragraph (a), for the

general or residual purposes of that Act.

( )    

An Order in Council under section 98(8) of the Northern Ireland Act 1998

(c. 46) (apportionment of sea areas) has effect for the purposes of this

section if, or to the extent that, the Order is expressed to apply—

(a)    

by virtue of this subsection, for those purposes, or

(b)    

if no provision has been made by virtue of paragraph (a), for the

general or residual purposes of that Act.”

Page 33, line 41, at end insert—

“( )    

to customers in the relevant part of Great Britain;”

After Clause 40

Insert the following new Clause—

“Feed-in tariffs: electricity

(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 document maintained in accordance with the conditions of

licences under section 6(1) of that Act, 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)    

establishing, or making arrangements for the administration of, a

scheme of financial incentives to encourage small-scale low-carbon

generation of electricity;

(b)    

requiring or enabling the holder of a distribution licence to make

arrangements for the distribution of electricity generated by small-

scale low-carbon generation;

(c)    

requiring the holder of a licence to make arrangements related to

the matters mentioned in paragraph (a) or (b).

(3)    

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

(a)    

provision requiring the holder of a supply licence to make a

payment to a small-scale low-carbon generator, or to the Authority

for onward payment to such a generator, in specified

circumstances;

(b)    

provision specifying how a payment under paragraph (a) is to be

calculated;

(c)    

provision for the level of payment under paragraph (a) to decrease

year by year in accordance with a formula published, or to be

published, by the Secretary of State;

(d)    

provision about the circumstances in which no payment, or a

reduced payment, may be made to a small-scale low-carbon

generator;

(e)    

provision about the circumstances in which a payment may be

recovered from a small-scale low-carbon generator;

(f)    

a requirement for the holder of a supply licence or distribution

licence to pay a levy to the Authority at specified times;

(g)    

provision specifying how a levy under paragraph (f) is to be

calculated (which may require specified matters to be determined

by the Authority or the Secretary of State);

(h)    

provision conferring an entitlement on the holder of a supply

licence or distribution licence to receive a payment from the

Authority.

(4)    

In this section—

“Authority” means the Gas and Electricity Markets Authority;

“distribution licence” means a licence under section 6(1)(c) of the

Electricity Act 1989 (c. 29);

“owner”, in relation to any plant which is the subject of a hire purchase

agreement, a conditional sale agreement or any agreement of a

similar nature, means the person in possession of the plant under

that agreement;

“plant” includes any equipment, apparatus or appliance;

“small-scale low-carbon generation” means the use, for the generation

of electricity, of any plant—

(a)    

which, in generating electricity, relies wholly or mainly on a

source of energy or a technology mentioned in subsection

(5), and

(b)    

the capacity of which to generate electricity does not exceed

the specified maximum capacity;

“small-scale low-carbon generator” means an owner of plant used or

intended to be used for small-scale low-carbon generation, whether

or not the person is also operating or intending to operate the plant;

“specified maximum capacity” means the capacity specified by the

Secretary of State by order, which must not exceed 3 megawatts;

“supply licence” means a licence under section 6(1)(d) of the

Electricity Act 1989 (c. 29).

(5)    

The sources of energy and technologies are—

(a)    

biomass;

(b)    

biofuels;

(c)    

fuel cells;

(d)    

photovoltaics;

(e)    

water (including waves and tides);

(f)    

wind;

(g)    

solar power;

(h)    

geothermal sources;

(i)    

combined heat and power systems with an electrical capacity of 50

kilowatts or less.

(6)    

The Secretary of State may by order modify the list of sources of energy and

technologies for the time being listed in subsection (5).

(7)    

The power conferred by subsection (1)—

(a)    

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);

(b)    

may be exercised differently in different cases or circumstances;

(c)    

includes a power to make incidental, supplemental, consequential

or transitional modifications.

(8)    

Provision included in a licence by virtue of that power—

(a)    

need not relate to the activities authorised by the licence;

(b)    

may make different provision for different cases.”

Insert the following new Clause—

“Power to amend licence conditions etc: procedure

(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 2 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 (Feed-in

tariffs: electricity)(1).”

Insert the following new Clause—

“Feed-in tariffs: supplemental

(1)    

A modification under section (Feed-in tariffs: electricity) 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 Electricity Act 1989 (c. 29).

(2)    

Where the Secretary of State makes modifications under section (Feed-in

tariffs: electricity)(1)(b) of the standard conditions of a licence of any type,

the Gas and Electricity Markets Authority (“the 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—

(a)    

make provision conferring functions on the Authority or the

Secretary of State (or both) in connection with the administration of

any scheme established by virtue of section (Feed-in tariffs:

electricity);

(b)    

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 paragraph (a) or section (Feed-in tariffs:

electricity).”

Clause 41

Page 38, leave out lines 5 to 8 and insert “after subsection (1) insert—

“(1A)    

An electric line is a relevant offshore line for the purposes of the definition

in subsection (1) of “high voltage line” if—

(a)    

it is wholly or partly in an area of GB internal waters, an area of the

territorial sea adjacent to the United Kingdom or an area designated

under section 1(7) of the Continental Shelf Act 1964, and

(b)    

it is—

(i)    

used to convey electricity to a place in Scotland, or

(ii)    

constructed wholly or mainly for the purpose of conveying,

to any other place, electricity generated by a generating

station situated in an area mentioned in paragraph (a).”

Clause 51

Page 46, leave out lines 4 and 5 and insert—

“(5A)    

The Secretary of State must publish guidance about factors which it may be

appropriate to consider in deciding whether or not—”

Page 46, line 10, at end insert—

“( )    

When making a decision of a kind mentioned in subsection (5A), the

Secretary of State must have regard to the guidance for the time being in

force under this section.”

Clause 53

Page 46, line 43, at end insert—

“( )    

In this section “security” includes—

(a)    

a charge over a bank account or any other asset;