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Session 2007 - 08
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Other Bills before Parliament



Energy Bill


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

After Clause 40



Insert the following new Clause—


“Feed-in tariffs: electricity



The Secretary of State may modify—



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


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



the standard conditions incorporated in licences under those


provisions by virtue of section 8A of that Act;



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.



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


purpose only of—



establishing, or making arrangements for the administration of, a


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


generation of electricity;



requiring or enabling the holder of a distribution licence to make


arrangements for the distribution of electricity generated by small-


scale low-carbon generation;



requiring the holder of a licence to make arrangements related to


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



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



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




for onward payment to such a generator, in specified





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





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;



provision about the circumstances in which no payment, or a


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





provision about the circumstances in which a payment may be


recovered from a small-scale low-carbon generator;



a requirement for the holder of a supply licence or distribution


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



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);



provision conferring an entitlement on the holder of a supply


licence or distribution licence to receive a payment from the





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—



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


source of energy or a technology mentioned in subsection


(5), and



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).



The sources of energy and technologies are—









fuel cells;






water (including waves and tides);









solar power;



geothermal sources;



combined heat and power systems with an electrical capacity of 50


kilowatts or less.



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


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



The power conferred by subsection (1)—



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);



may be exercised differently in different cases or circumstances;



includes a power to make incidental, supplemental, consequential


or transitional modifications.



Provision included in a licence by virtue of that power—



need not relate to the activities authorised by the licence;



may make different provision for different cases.”




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


Line 64, leave out “3” and insert “5”





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Revised 20 November 2008