(b)    

a deposit of money;

(c)    

a performance bond or guarantee;

(d)    

an insurance policy;

(e)    

a letter of credit.”

Clause 57

Page 48, line 40, leave out “false or misleading information” and insert

“information which is false or misleading in a material respect”

Clause 67

Page 56, line 5, at end insert—

“( )    

In section 114(2) of that Act (interpretation), in the definition of “security”

after paragraph (c) insert—

“(ca)     an insurance policy;”.”

Clause 69

Page 58, line 42, leave out “from the installation” and insert “from any activity

within section 30(6)—

(i)    

which has been or is carried on (or is intended to be carried

on) from, by means of or on the installation, and

(ii)    

is an activity to which subsection (AA1) applies”

Page 58, line 44, at end insert—

“(AA1)    

 This subsection applies to an activity if—

(a)    

where the activity is the exploitation or exploration of mineral

resources, it relates to an oil field for which the installation is or is

to be established or maintained;

(b)    

where the activity is the conveyance of minerals, the minerals are

got, or to be got, from such an oil field;

(c)    

where the activity is the unloading, storage or recovery of gas, it

relates to a controlled place (within the meaning of Chapter 2 or 3

of Part 1 of the Energy Act 2008) for which the installation is or is to

be established or maintained;

(d)    

where the activity is the conveyance of gas being stored or

recovered, the storage or recovery of the gas relates to such a

controlled place;

(e)    

where the activity is within section 30(6)(c)—

(i)    

the installation is in an oil field in respect of which P has an

interest, or

(ii)    

the installation is in a controlled place in respect of which P

has a licence under Part 1 of the Energy Act 2008.

(AB1)    

For the purposes of subsection (AA1)—

(a)    

“oil field” means an area which the appropriate authority (within

the meaning of paragraph 1(2) of Schedule 1 to the Oil Taxation Act

1975) has determined to be an oil field for the purposes of Part 1 of

that Act,

(b)    

P has an interest in an oil field if P is entitled to derive, or has at any

time been entitled to derive, any financial or other benefit from

activities within section 30(6) (other than paragraph (c)) carried on

in the field.”

Clause 71

Page 60, line 39, at end insert—

“( )    

In this section “security” includes—

(a)    

a charge over a bank account or any other asset;

(b)    

a deposit of money;

(c)    

a performance bond or guarantee;

(d)    

an insurance policy;

(e)    

a letter of credit.”

Before Clause 80

Insert the following new Clause—

“Duties of the Gas and Electricity Markets Authority

(1)    

In section 4AA of the Gas Act 1986 (c. 44) (duties of the Gas and Electricity

Markets Authority)—

(a)    

in subsection (1) after “interests of” insert “existing and future”,

(b)    

after subsection (2)(b) insert “; and

(c)    

the need to contribute to the achievement of

sustainable development.”,

(c)    

omit subsection (5)(ba), and

(d)    

in subsection (6) for “this section “consumers” includes” substitute

“subsections (3) and (4) references to consumers include”.

(2)    

In section 3A of the Electricity Act 1989 (c. 29) (duties of the Gas and

Electricity Markets Authority)—

(a)    

in subsection (1) after “interests of” insert “existing and future”,

(b)    

after subsection (2)(b) insert “; and

(c)    

the need to contribute to the achievement of

sustainable development.”,

(c)    

omit subsection (5)(ba), and

(d)    

in subsection (6) for “this section “consumers” includes” substitute

“subsections (3) and (4) references to consumers include”.

Insert the following new Clause—

“Power to amend licence conditions etc: transmission systems

(1)    

The Secretary of State may modify—

(a)    

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

Electricity Act 1989 (c. 29) (generation, transmission, 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)(a) to (d) of that Act, or an agreement that

gives effect to a document so maintained.

(2)    

The Secretary of State may exercise the power conferred by subsection (1)

for the purpose only of facilitating—

(a)    

access to a transmission system in Great Britain or offshore waters;

(b)    

efficient use of a transmission system in Great Britain or offshore

waters.

(3)    

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.

(4)    

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

of the period of 2 years beginning with the day on which that subsection

comes into force.

(5)    

Provision included in a licence by virtue of that power—

(a)    

need not relate to the activities authorised by the licence;

(b)    

may do any of the things authorised by section 7(2) to (4) of the

Electricity Act 1989 (c. 29) (which apply to the Gas and Electricity

Markets Authority’s power with respect to licence conditions

under section 7(1)(a)).

(6)    

In this section—

“offshore waters” means—

(a)    

waters in or adjacent to Great Britain which are between the

low water mark and the seaward limits of the territorial sea,

and

(b)    

waters within an area designated under section 1(7) of the

Continental Shelf Act 1964 (c. 29);

“transmission system” has the meaning given by section 4(4) of the

Electricity Act 1989 (c. 29).”

Insert the following new Clause—

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

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)    

The Secretary of State must publish details of any modifications as soon as

reasonably practicable after they are made.

(4)    

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

amend licence conditions etc: transmission systems).”

Insert the following new Clause—

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

supplemental

(1)    

A modification under section (Power to amend licence conditions etc:

transmission systems) 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 (Power to

amend licence conditions etc: transmission systems)(1)(b) 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 provisions

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 etc: transmission systems).”

Clause 80

Page 72, line 34, leave out from “(1)” to end of line 36 and insert “for “in each

calendar year, beginning with 2004,” substitute “, for each reporting period,”

Page 72, line 38, leave out from “(c),” to end of line 40

Page 72, line 41, leave out “to (3), and” and insert “and (1C),

( )    

for subsections (2) and (3) substitute—

“(2)    

“Reporting period”, for the purposes of subsections (1) to

(1AA), means—

(a)    

the period beginning with 24 February 2008 and

ending with 31 December 2008, and

(b)    

each successive calendar year.

(3)    

A sustainable energy report must be published during the

period beginning with 1 January and ending with 31

October following the reporting period to which it relates

(“the publication period”).”, and”

Page 73, line 9, leave out sub-paragraph (ii)

Page 73, leave out lines 12 to 18

After Clause 83

Insert the following new Clause—

“Licensing of activities relating to smart meters

Schedule (Smart meters: licensable activities) contains amendments to the Gas

Act 1986 (c. 44) and the Electricity Act 1989 (c. 29).”

After Clause 89

Insert the following new Clause—

“Costs connected with making an offer of connection

(1)    

Section 16A of the Electricity Act 1989 (c. 29) (procedure for requiring a

connection) is amended as follows.

(2)    

After subsection (4) insert—

“(4A)    

The Secretary of State may, after consulting the Authority, make

provision by regulations for the purpose of entitling an electricity

distributor to require a person requiring a connection in pursuance

of section 16(1) to pay connection offer expenses to such extent as is

reasonable in all the circumstances.

(4B)    

In this section “connection offer expenses” means expenses

which—

(a)    

are of a kind specified by the regulations, and

(b)    

have been reasonably incurred by the electricity distributor.

(4C)    

Regulations under subsection (4A) may specify—

(a)    

circumstances in which an electricity distributor may not

require the payment of connection offer expenses by virtue

of the regulations;

(b)    

the manner in which expenses reasonably incurred by an

electricity distributor are to be calculated for the purposes of

subsection (4B)(b).”

(3)    

In subsection (5) for “and any information” to “connection” substitute “,

any information requested under subsection (3) and any amount payable

by virtue of subsection (4A) to the distributor by the person requiring the

connection, the distributor shall give to that person”.”

After Clause 90

Insert the following new Clause—

“Renewable heat incentives

(1)    

The Secretary of State may make regulations—

(a)    

establishing a scheme to facilitate and encourage renewable

generation of heat, and

(b)    

about the administration and financing of the scheme.

(2)    

Regulations under this section may, in particular—

(a)    

make provision for the Secretary of State or the Authority to make

payments, or to require designated fossil fuel suppliers to make

payments, in specified circumstances, to—

(i)    

the owner of plant used or intended to be used for the

renewable generation of heat, whether or not the owner is

also operating or intending to operate the plant;

(ii)    

a producer of biogas or biomethane;

(iii)    

a producer of biofuel for generating heat;

(b)    

make provision about the calculation of such payments;

(c)    

make provision about the circumstances in which such payments

may be recovered;

(d)    

require designated fossil fuel suppliers to provide specified

information to the Secretary of State or the Authority;

(e)    

require the payment of a levy by designated fossil fuel suppliers to

the Secretary of State or the Authority;

(f)    

make provision about the calculation of the levy;

(g)    

make provision for payments to fossil fuel suppliers in specified

circumstances;

(h)    

make provision about the enforcement of obligations imposed by or

by virtue of the regulations (which may include a power for the

Secretary of State or the Authority to impose financial penalties);

(i)    

confer functions on the Secretary of State or the Authority, or both.

(3)    

In this section—

“Authority” means the Gas and Electricity Markets Authority;

“biofuel” means liquid or gaseous fuel which is produced wholly from

biomass;

“biogas” means gas produced by the anaerobic conversion of organic

matter;

“biomass” means material, other than fossil fuel, which is, or is

derived directly or indirectly from, plant matter, animal matter,

fungi or algae;

“biomethane” means biogas which is suitable for conveyance through

pipes to premises in accordance with a licence under section 7 of the

Gas Act 1986 (c. 44) (gas transporter licences);

“designated fossil fuel suppliers” means—

(a)    

if the regulations so provide, a specified class of fossil fuel

suppliers, and

(b)    

in any other case, all fossil fuel suppliers;

“fossil fuel” means—

(a)    

coal;

(b)    

lignite;

(c)    

natural gas (within the meaning of the Energy Act 1976

(c. 76));

(d)    

crude liquid petroleum;

(e)    

petroleum products (within the meaning of that Act);

(f)    

any substance produced directly or indirectly from a

substance mentioned in paragraphs (a) to (e);

“fossil fuel supplier” means a person who supplies fossil fuel to

consumers for the purpose of generating heat;

“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;

“renewable generation of heat” means the generation of heat by

means of a source of energy or technology mentioned in subsection

(4).

(4)    

The sources of energy and technologies are—

(a)    

biomass;

(b)    

biofuels;

(c)    

fuel cells;

(d)    

water (including waves and tides);

(e)    

solar power;

(f)    

geothermal sources;

(g)    

heat from air, water or the ground;

(h)    

combined heat and power systems (but only if the system’s source

of energy is a renewable source within the meaning given by

section 32M of the Electricity Act 1989 (c. 29)).

(5)    

Regulations may—

(a)    

modify the list of sources of energy and technologies in subsection

(4);

(b)    

modify the definition of “biogas” or “biomass” in subsection (3).

(6)    

Regulations may make provision, for the purposes of subsection (2)(a)(iii)

and the definition of “fossil fuel supplier”, specifying that particular

activities do or do not constitute generating heat.

(7)    

Before making regulations under this section which extend to Scotland, the

Secretary of State must—

(a)    

if the regulations contain any provision which would be within the

legislative competence of the Scottish Parliament if it were

contained in an Act of that Parliament, obtain the consent of the

Scottish Ministers;

(b)    

in any other case, consult the Scottish Ministers.”

After Clause 91

Insert the following new Clause—

“Application of general duties to functions relating to licences

(1)    

Sections 4AA to 4B of the Gas Act 1986 (c. 44) (principal objectives and

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

in subsection (2), of functions conferred on the Secretary of State or the

Authority by or under—

(a)    

sections 81 to 83;

(b)    

section 86.

(2)    

The matters are—

(a)    

activities required to be authorised by gas 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.