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The noble Baroness, Lady Wilcox, has done a great service in tabling her amendment and asking her question. I of course understand that some sectors will argue for different treatment under the heat incentive. I know that there are some concerns that my amendment may disadvantage fossil-fuel CHP operators. I would say to the noble Baroness that the levy proposed would apply to suppliers of fossil fuel to consumers for the purpose of generating heat and not directly to consumers—that is, the owners of the CHP plant. I know that the powers in the government amendment are broad, but that has one advantage. As we develop the regulations and the consultation, we can take into account the argument put forward by the noble Baroness and the organisation that has talked to her.
Provision to designate fossil-fuel suppliers will allow the Secretary of State to exempt certain classes of fossil-fuel supplier if, after sufficient analysis and evidence, we believe that there is a disproportionate negative impact on any particular sector. A renewable heat
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Baroness Wilcox: My Lords, we are at the end of Third Reading. I take some comfort from the Minister’s reply, certainly on renewable heat and heat pumps. Obviously, we are nervous. Given that the Government have had a Damascene conversion so late in our consideration of the Bill and at Third Reading have brought forward amendments when we have so little time or information to go on, my colleagues in another place more than likely think that we have been rather wimpy and should have kept dividing the House.
Lord Hunt of Kings Heath: My Lords, as I have said in relation to the FIT scheme, I will make it clear to noble Lords how they can make a contribution during the consultation process. I should like to say at the Dispatch Box that I will do the same for the renewable heat incentive.
Baroness Wilcox: My Lords, I thank the noble Lord for that. There are times when one has to take on trust what the Government say they are going to do. The noble Lord, Lord Teverson, and I were quite nervous at some stages that these things would not come forward, but the Minister seems to have been true to his word, as well as he could be, albeit in broad terms. We can accept only what is before us. I agree with the noble Lord, Lord Teverson, that it is nice to see the word “geothermal”, but we have admitted that we have a special interest from Cornwall in that. I suspect that we will face another energy Bill before too long. I beg leave to withdraw my amendment.
Amendment No. 63, as an amendment to Amendment No. 60, by leave, withdrawn.
[Amendment No. 64, as an amendment to Amendment No. 60, not moved.]
On Question, Amendment No. 60 agreed to.
Lord Hunt of Kings Heath moved Amendment No. 65:
65: 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.
(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
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(d) companies holding such licences.
(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.
(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”.
“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).”
On Question, amendment agreed to.
Clause 94 [Parliamentary control of subordinate legislation]:
Lord Hunt of Kings Heath moved Amendments Nos. 66 to 69:
66: Clause 94, page 83, line 17, at end insert—
“( ) section (Feed-in tariffs: electricity)(6) (feed-in tariffs for small-scale electricity generation),”
67: Clause 94, page 83, line 17, at end insert—
“( ) section (Renewable heat incentives) (renewable heat incentives);”
69: Clause 94, page 83, line 20, after “section” insert (Section (Power to amend licence conditions etc: transmission systems): supplemental)(3),”
On Question, amendments agreed to.
Lord Hunt of Kings Heath moved Amendments Nos. 70 and 71:
70: Clause 99, page 84, line 32, leave out subsection (1) and insert—
“(1) The following provisions come into force on the day on which this Act is passed—
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(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).”
On Question, amendments agreed to.
Lord Hunt of Kings Heath moved Amendments Nos. 72 to 75:
72: Clause 101, page 85, line 23, at end insert—
“( ) sections (Feed-in tariffs: electricity) to (Feed-in tariffs: supplemental) (feed-in tariffs for electricity generation);”
73: Clause 101, page 85, line 24, at end insert—
“( ) sections (Power to amend licence conditions etc: transmission systems) to (Section (Power to amend licence conditions etc: transmission systems): supplemental);”
74: Clause 101, page 85, line 27, at end insert—
“( ) section (Renewable heat incentives) (renewable heat incentives).”
75: Clause 101, page 85, line 27, at end insert—
“( ) section (Application of general duties to functions relating to licences);”
On Question, amendments agreed to.
Schedule 2 [Property schemes]:
Lord Hunt of Kings Heath moved Amendments Nos. 76 and 77:
76: Schedule 2, page 105, line 20, leave out “asset owner” and insert “person who was the asset owner immediately before the scheme came into operation”
77: Schedule 2, 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”
On Question, amendments agreed to.
Lord Hunt of Kings Heath moved Amendment No. 78:
78: After Schedule 3, insert the following new Schedule—
Smart meters: licensable activitiesGas1 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).
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(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.
(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.
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).
(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;
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(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 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.
“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.”
Electricity2 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
(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.
(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—
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(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.
(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).
(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;
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(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.
“gas licence” means a licence for an activity to which an order under section 41HA of the Gas Act 1986 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.”
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