15

 
 

(3)    

In section 4AA(2)(b) of the Gas Act 1986 (c. 44) (duty to have regard to

 

ability of licence holders to finance obligations) for “or the Utilities Act

 

2000” substitute “, the Utilities Act 2000 or Part 5 of the Energy Act 2008”.

 

(4)    

Sections 3A to 3D of the Electricity Act 1989 (c. 29) (principal objectives and

 

general duties) apply to the carrying out, as respects the matters mentioned

 

in subsection (5), of functions conferred on the Secretary of State or the

 

Authority by or under—

 

(a)    

sections (Feed-in tariffs: electricity) to (Feed-in tariffs: supplemental);

 

(b)    

sections (Power to amend licence conditions etc: transmission systems) to

 

(Section (Power to amend licence conditions etc: transmission systems):

 

supplemental);

 

(c)    

sections 81 to 83;

 

(d)    

section 89.

 

(5)    

The matters are—

 

(a)    

activities required to be authorised by electricity licences,

 

(b)    

such licences and the conditions of such licences,

 

(c)    

documents maintained in accordance with the conditions of such

 

licences, or agreements that give effect to documents so maintained,

 

and

 

(d)    

companies holding such licences.

 

(6)    

In section 3A(2)(b) of the Electricity Act 1989 (c. 29) (duty to have regard to

 

ability of licence holders to finance obligations) for “or Part 2 or 3 of the

 

Energy Act 2004” substitute “, Part 2 or 3 of the Energy Act 2004 or Part 2

 

or 5 of the Energy Act 2008”.

 

(7)    

In this section—

 

“the Authority” means the Gas and Electricity Markets Authority;

 

“electricity licence” means a licence for the purposes of section 4 of the

 

Electricity Act 1989 (c. 29) (prohibition on unlicensed activities);

 

“gas licence” means a licence for the purposes of section 5 of the Gas

 

Act 1986 (c. 44) (prohibition on unlicensed activities).”

Clause 94

67

Page 82, line 40, after “contains” insert “, or regulations which contain,”

68

Page 82, line 41, at end insert—

 

“( )    

section 13 (importation and storage of combustible gas:

 

inspectors),

 

( )    

section 27 (carbon dioxide storage: inspectors),”

69

Page 83, line 2, at end insert—

 

“( )    

section (Feed-in tariffs: electricity)(6) (feed-in tariffs for small-

 

scale electricity generation),”

70

Page 83, line 2, at end insert—

 

“( )    

section (Renewable heat incentives) (renewable heat

 

incentives);”

71

Page 83, line 5, after “section” insert “(Feed-in tariffs: supplemental)(3)(b),”

72

Page 83, line 5, after “section” insert (Section (Power to amend licence conditions etc:

 

transmission systems): supplemental)(3),”


 
 

16

 

Clause 99

73

Page 84, line 18, leave out subsection (1) and insert—

 

“(1)    

The following provisions come into force on the day on which this Act is

 

passed—

 

(a)    

section 37, so far as is necessary for enabling the exercise on or after

 

that day of any power to make an order that is conferred by virtue

 

of that section, and section 38(1);

 

(b)    

sections 81 to (Licensing of activities relating to smart meters) (and

 

sections 93 and 94 in so far as those sections apply in relation to

 

orders made under section 83(3)) and Schedule [Smart meters:

 

licensable activities];

 

(c)    

section (Application of general duties to functions relating to licences);

 

(d)    

this section and sections 95, 100, 101 and 102;

 

(e)    

paragraph 2B of Schedule 4 (and section 96(1) so far as it relates to

 

that paragraph).”

74

Page 84, line 23, leave out subsections (3) to (5)

 

Clause 101

75

Page 85, line 9, at end insert—

 

“( )    

sections (Feed-in tariffs: electricity) to (Feed-in tariffs: supplemental)

 

(feed-in tariffs for electricity generation);”

76

Page 85, line 10, at end insert—

 

“( )    

sections (Power to amend licence conditions etc: transmission systems) to

 

(Section (Power to amend licence conditions etc: transmission systems):

 

supplemental);”

77

Page 85, line 13, at end insert—

 

“( )    

section (Renewable heat incentives) (renewable heat incentives);”

78

Page 85, line 13, at end insert—

 

“( )    

section (Application of general duties to functions relating to licences);”

Schedule 1

79

Page 87, line 5, leave out “Order” and insert “order or Order in Council”

80

Page 87, leave out line 7

81

Page 87, line 9, at end insert “, or

 

( )    

if no provision has been made by virtue of

 

paragraph (b), for the general or residual

 

purposes of that Act.”

82

Page 88, leave out line 38

83

Page 88, line 39, at end insert “, or

 

( )    

if no provision has been made by virtue of

 

paragraph (b), for the general or residual

 

purposes of that Act.”


 
 

17

 

Schedule 2

84

Page 105, line 20, leave out “asset owner” and insert “person who was the asset

 

owner immediately before the scheme came into operation”

85

Page 105, line 28, leave out “asset owner or the successful bidder” and insert “the

 

successful bidder or the person who was the asset owner immediately before the

 

scheme came into operation”

After Schedule 3

86

Insert the following new Schedule—

 

Smart meters: licensable activities

 

Part 1

 

Gas

 

1          

After section 41H of the Gas Act 1986 (c. 44), insert—

 

“41HA

 New licensable activities: smart meters

 

(1)    

The Secretary of State may by order amend this Part so as to

 

provide—

 

(a)    

for one or more activities within subsection (3) to be

 

added to the activities which are licensable activities, or

 

(b)    

where an order has previously been made under

 

paragraph (a) in relation to an activity, for the activity to

 

cease to be a licensable activity.

 

(2)    

For the purposes of this Part activities are licensable activities if

 

undertaking them without the authority of a licence or

 

exemption constitutes an offence under section 5(1).

 

(3)    

The activities within this subsection are activities connected with

 

the provision, installation or operation of relevant meters,

 

including the provision or installation of infrastructure, or the

 

provision of services, in connection with the communication of

 

information by or to such meters.

 

(4)    

In this section—

 

(a)    

“relevant meter” means a meter of a kind prescribed by

 

the order;

 

(b)    

a reference to a meter includes a reference to a visual

 

display unit, or any other device, associated with or

 

ancillary to a meter.

 

(5)    

An order under this section may make consequential,

 

transitional, incidental or supplementary provision, including—

 

(a)    

amendments (or repeals) in any provision of this Act or

 

any other enactment;

 

(b)    

in the case of an order under subsection (1)(a), provision

 

determining the conditions which are to be standard

 

conditions for the purposes of licences authorising the

 

undertaking of the activities;

 

(c)    

provision modifying any standard conditions of licences.


 
 

18

 
 

(6)    

Without prejudice to the generality of subsections (1) and (5), an

 

order under this section may also make provision—

 

(a)    

for licences to authorise the holder to carry out the

 

licensable activities in any area, or only in an area

 

specified in the licence;

 

(b)    

enabling the terms of the licence to be modified so as to

 

extend or restrict the area in which the licence holder may

 

carry on the licensable activities;

 

(c)    

specifying that a licence, and any modification of a

 

licence, must be in writing;

 

(d)    

for a licence, if not previously revoked, to continue in

 

force for such period as may be specified in or determined

 

by or under the licence;

 

(e)    

conferring functions on the Secretary of State or the

 

Authority.

 

(7)    

An order under this section may provide that it is to remain in

 

force only for the period specified in the order.

 

41HB  

Section 41HA: supplemental

 

(1)    

Before making an order under section 41HA, the Secretary of

 

State must consult—

 

(a)    

the Authority, and

 

(b)    

such other persons as the Secretary of State thinks

 

appropriate.

 

(2)    

The power to make such an order may not be exercised after the

 

end of the period of 5 years beginning with the day on which

 

section 41HA comes into force.

 

(3)    

An order under section 41HA may not be made unless a draft of

 

the statutory instrument containing the order has been laid

 

before, and approved by a resolution of, each House of

 

Parliament.

 

(4)    

Subsections (1) to (3) of section 47 apply in relation to orders

 

under section 41HA as they apply in relation to regulations

 

under this Part.

 

41HC  

Competitive tendering for licences for new licensable activities

 

(1)    

The Secretary of State may by regulations make provision for a

 

determination on a competitive basis of the person to whom a

 

licence in respect of new licensable activities is to be granted.

 

(2)    

In this section “new licensable activities” means one or more

 

activities which are the subject of an order under section

 

41HA(1)(a).

 

(3)    

The regulations may—

 

(a)    

provide for the determination to be made by the Secretary

 

of State or the Authority;

 

(b)    

provide, in prescribed cases, for the publication of a

 

proposal to grant a licence in respect of the new licensable

 

activities;

 

(c)    

provide for the inclusion in such a proposal of an

 

invitation to apply for such a licence;


 
 

19

 
 

(d)    

impose conditions in relation to the making of an

 

application for a licence;

 

(e)    

impose restrictions in relation to persons who may apply

 

for a licence;

 

(f)    

impose requirements as to the period within which

 

applications must be made;

 

(g)    

make provision for regulating the manner in which

 

applications are to be considered or determined;

 

(h)    

authorise or require the Secretary of State or the

 

Authority, when determining to whom a licence is to be

 

granted, to have regard to the person’s suitability for

 

being granted both the licence and an electricity licence;

 

(i)    

confer on the Authority or the Secretary of State functions

 

in connection with tender exercises.

 

(4)    

The regulations may also include provision—

 

(a)    

enabling the Secretary of State or the Authority to require

 

prescribed persons, in relation to a tender exercise, to

 

make payments, in the form and manner prescribed, in

 

respect of tender costs;

 

(b)    

about the effect on a person’s participation in the tender

 

exercise of a failure to comply with a requirement

 

imposed by virtue of paragraph (a), and the

 

circumstances in which the tender exercise is to stop as a

 

result of such a failure.

 

(5)    

In this section—

 

“electricity licence” means a licence for an activity to which

 

an order under section 56FA(1)(a) of the Electricity Act

 

1989 applies;

 

“prescribed” means prescribed in or determined under

 

regulations under this section;

 

“tender costs”, in relation to a tender exercise, means any

 

costs incurred or likely to be incurred by the Authority or

 

the Secretary of State for the purposes of the exercise;

 

“tender exercise” means the steps taken in accordance with

 

regulations with a view to determining to whom a

 

particular licence is to be granted.

 

(6)    

Any sums received by the Secretary of State or the Authority

 

under regulations made by virtue of this section are to be paid

 

into the Consolidated Fund.”

 

Part 2

 

Electricity

 

2          

After section 56F of the Electricity Act 1989 (c. 29) insert—

 

“56FA

 New licensable activities: smart meters

 

(1)    

The Secretary of State may by order amend this Part so as to

 

provide—

 

(a)    

for one or more activities within subsection (3) to be

 

added to the activities which are licensable activities, or


 
 

20

 
 

(b)    

where an order has previously been made under

 

paragraph (a) in relation to an activity, for the activity to

 

cease to be a licensable activity.

 

(2)    

For the purposes of this Part activities are licensable activities if

 

undertaking them without the authority of a licence or

 

exemption constitutes an offence under section 4(1).

 

(3)    

The activities within this subsection are activities connected with

 

the provision, installation or operation of relevant meters,

 

including the provision or installation of infrastructure, or the

 

provision of services, in connection with the communication of

 

information by or to such meters.

 

(4)    

In this section—

 

(a)    

“relevant meter” means a meter of a kind prescribed by

 

the order;

 

(b)    

a reference to a meter includes a reference to a visual

 

display unit, or any other device, associated with or

 

ancillary to a meter.

 

(5)    

An order under this section may make consequential,

 

transitional, incidental or supplementary provision, including—

 

(a)    

amendments (or repeals) in any provision of this Act or

 

any other enactment;

 

(b)    

in the case of an order under subsection (1)(a), provision

 

determining the conditions which are to be standard

 

conditions for the purposes of licences authorising the

 

undertaking of the activities;

 

(c)    

provision modifying any standard conditions of licences.

 

(6)    

Without prejudice to the generality of subsections (1) and (5), an

 

order under this section may also make provision—

 

(a)    

for licences to authorise the holder to carry out the

 

licensable activities in any area, or only in an area

 

specified in the licence;

 

(b)    

enabling the terms of the licence to be modified so as to

 

extend or restrict the area in which the licence holder may

 

carry on the licensable activities;

 

(c)    

specifying that a licence, and any modification of a

 

licence, must be in writing;

 

(d)    

for a licence, if not previously revoked, to continue in

 

force for such period as may be specified in or determined

 

by or under the licence;

 

(e)    

conferring functions on the Secretary of State or the

 

Authority.

 

(7)    

An order under this section may provide that it is to remain in

 

force only for the period specified in the order.

 

56FB  

Section 56FA: supplemental

 

(1)    

Before making an order under section 56FA, the Secretary of

 

State must consult—

 

(a)    

the Authority, and

 

(b)    

such other persons as the Secretary of State thinks

 

appropriate.


 
 

21

 
 

(2)    

The power to make such an order may not be exercised after the

 

end of the period of 5 years beginning with the day on which

 

section 56FA comes into force.

 

(3)    

An order under section 56FA may not be made unless a draft of

 

the statutory instrument containing it has been laid before, and

 

approved by resolution of, each House of Parliament.

 

(4)    

Section 60 applies in relation to an order under this section as it

 

applies in relation to regulations under this Part.

 

56FC  

Competitive tenders for licences for new licensable activities

 

(1)    

The Secretary of State may by regulations make provision for a

 

determination on a competitive basis of the person to whom a

 

licence in respect of new licensable activities is to be granted.

 

(2)    

In this section “new licensable activities” means one or more

 

activities which are the subject of an order under section

 

56FA(1)(a).

 

(3)    

The regulations may—

 

(a)    

provide for the determination to be made by the Secretary

 

of State or the Authority;

 

(b)    

provide, in prescribed cases, for the publication of a

 

proposal to grant a licence in respect of the new licensable

 

activities;

 

(c)    

provide for the inclusion in such a proposal of an

 

invitation to apply for such a licence;

 

(d)    

impose conditions in relation to the making of an

 

application for a licence;

 

(e)    

impose restrictions in relation to persons who may apply

 

for a licence;

 

(f)    

impose requirements as to the period within which

 

applications must be made;

 

(g)    

make provision for regulating the manner in which

 

applications are to be considered or determined;

 

(h)    

authorise or require the Secretary of State or the

 

Authority, when determining to whom a licence is to be

 

granted, to have regard to the person’s suitability for

 

being granted both the licence and a gas licence;

 

(i)    

confer on the Authority or the Secretary of State functions

 

in connection with tender exercises.

 

(4)    

The regulations may also include provision—

 

(a)    

enabling the Secretary of State or the Authority to require

 

prescribed persons, in relation to a tender exercise, to

 

make payments, in the form and manner prescribed, in

 

respect of tender costs;

 

(b)    

about the effect on a person’s participation in the tender

 

exercise of a failure to comply with a requirement

 

imposed by virtue of paragraph (a), and the

 

circumstances in which the tender exercise is to stop as a

 

result of such a failure.

 

(5)    

In this section—