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Energy Bill

commons AMENDMENT

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

After Clause 40

LORDS AMENDMENT NO. 42

42

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

 
 
HL Bill 9554/3

 
 

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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);

 
 

 
 

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(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.”

 

COMMONS AGREEMENT WITH AMENDMENT

 

The Commons agree to Lords Amendment 42 with the following Amendment—

42A

Line 64, leave out “3” and insert “5”

 
 

 
 

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