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Energy Bill [HL]


Energy Bill [HL]
Part 1 — Energy efficiency
Chapter 1 — Green deal

1

 

A

Bill

To

Make provision for the arrangement and financing of energy efficiency

improvements to be made to properties by owners and occupiers; about the

energy efficiency of properties in the private rented sector; about the

promotion by energy companies of reductions in carbon emissions and home-

heating costs; about information relating to energy consumption, efficiency

and tariffs; for increasing the security of energy supplies; about access to

upstream petroleum infrastructure; about a special administration regime for

energy supply companies; about designations under the Continental Shelf Act

1964; about licence modifications relating to offshore transmission and

distribution of electricity; about the decommissioning of nuclear sites; about

the powers of the Coal Authority; for the repeal of measures relating to home

energy efficiency; and for connected purposes.  

Be it enacted by the Queen’s most Excellent Majesty, by and with the advice and

consent of the Lords Spiritual and Temporal, and Commons, in this present

Parliament assembled, and by the authority of the same, as follows:—

Part 1

Energy efficiency

Chapter 1

Green deal

Introductory

5

1       

Green deal plans

(1)   

This section applies for the purposes of this Chapter.

(2)   

An energy plan is an arrangement made by the occupier or owner of a property

for a person to make energy efficiency improvements to the property.

(3)   

An energy plan is a green deal plan if—

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Energy Bill [HL]
Part 1 — Energy efficiency
Chapter 1 — Green deal

2

 

(a)   

the energy efficiency improvements are to be paid for wholly or partly

in instalments, and

(b)   

all of the requirements listed in paragraphs (a) to (e) of subsection (4)

are met in relation to the plan at the time when it is made.

(4)   

The requirements are—

5

(a)   

the property is an eligible property,

(b)   

the energy efficiency improvements fall within a description specified

in an order made by the Secretary of State (“qualifying energy

improvements”),

(c)   

the conditions mentioned in section 4 as to assessment of the property

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and other matters have been met,

(d)   

the conditions mentioned in section 5 as to the terms of the plan and

other matters are met, and

(e)   

a relevant energy supplier supplies, or is to supply, energy to the

property.

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(5)   

Subsection (6) applies to a green deal plan from the time when—

(a)   

improvements have been installed in accordance with section 7,

(b)   

the plan is confirmed in accordance with section 8, and

(c)   

the requirements imposed by virtue of section 9 or 10 are met.

(6)   

The payments in instalments agreed in the plan are to be—

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(a)   

made by the person who is for the time being liable to pay the energy

bills for the property, and

(b)   

made to the relevant energy supplier through the energy bills for the

property.

(7)   

Subsection (6) applies irrespective of whether the person referred to in

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paragraph (a) is the person who entered into the plan.

(8)   

Subsection (6) is subject to—

(a)   

provision made in regulations under section 30;

(b)   

any suspension or cancellation, by virtue of provision made in

regulations under section 3(3)(h) or (i), 6(4), 14 or 31, of liability to make

30

payments.

(9)   

For the purposes of subsection (4)(a) a property is an eligible property unless it

falls within a description specified in an order made by the Secretary of State.

2       

Green deal plans: supplementary

(1)   

This section applies for the purposes of this Chapter.

35

(2)   

The occupier or owner who makes the arrangement referred to in section 1(2)

is the “improver” and the person who makes the improvements is the “green

deal provider”.

(3)   

The person referred to in section 1(6)(a) is the “bill payer”.

(4)   

References to energy efficiency improvements, in relation to a property, are

40

to—

(a)   

measures for improving efficiency in the use in the property of

electricity, gas conveyed through pipes or any other source of energy

which is specified in an order made by the Secretary of State, or

 
 

Energy Bill [HL]
Part 1 — Energy efficiency
Chapter 1 — Green deal

3

 

(b)   

measures falling within subsection (5) or (6).

(5)   

Measures fall within this subsection if—

(a)   

they are any of the following—

(i)   

measures for increasing the amount of electricity generated, or

heat produced, by microgeneration (within the meaning given

5

by section 26(1) of the Climate Change and Sustainable Energy

Act 2006);

(ii)   

any other measures for increasing the amount of electricity

generated, or heat produced, using low-emissions sources or

technologies;

10

(iii)   

measures for reducing the consumption of such energy as is

mentioned in subsection (4), and

(b)   

they are specified in an order made by the Secretary of State.

(6)   

Measures fall within this subsection if—

(a)   

they are installed at the property for the purpose of supplying to it any

15

of the following types of energy—

(i)   

electricity generated by a generating station operated for the

purposes of producing heat, or a cooling effect, in association

with electricity;

(ii)   

heat produced in association with electricity or steam produced

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from (or air or water heated by) such heat;

(iii)   

any gas or liquid subjected to a cooling effect produced in

association with electricity, and

(b)   

they are specified in an order made by the Secretary of State.

(7)   

For the purposes of subsection (5)(b)(ii) electricity is generated, or heat is

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produced, using low-emissions sources or technologies if it is generated, or

produced, by plant which relies wholly or mainly on a source of energy or a

technology mentioned in section 26(2) of the Climate Change and Sustainable

Energy Act 2006.

(8)   

For the purposes of subsection (6) “generating station” and “supplying” are to

30

be read in accordance with section 64(1) of the Electricity Act 1989.

(9)   

“Energy” (except in this section), “energy bill”, “occupier”, “owner” and

“relevant energy supplier” have the meaning given in regulations made by the

Secretary of State.

(10)   

Regulations under subsection (9) may also make provision as to the

35

circumstances in which a person who is not a bill payer for the purposes of this

Chapter may be treated as a bill payer for those purposes.

3       

Framework regulations

(1)   

The Secretary of State may by regulations establish a scheme making provision

for the Secretary of State—

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(a)   

to authorise persons to act as green deal assessors, green deal providers

or green deal installers in connection with green deal plans (either

individually or through membership of a body specified in, or

authorised under, the scheme);

(b)   

to regulate the conduct of those assessors, providers or installers

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(“green deal participants”).

 
 

Energy Bill [HL]
Part 1 — Energy efficiency
Chapter 1 — Green deal

4

 

(2)   

Regulations under subsection (1) are referred to in this Chapter as “the

framework regulations”.

(3)   

The scheme established by the framework regulations may, in particular, make

provision—

(a)   

requiring the payment of a fee in connection with initial or continued

5

authorisation under the scheme;

(b)   

for the establishment and maintenance of a register of green deal

participants and of persons from whom authorisation under the

scheme has been withdrawn;

(c)   

requiring green deal participants to provide the information required

10

under the scheme;

(d)   

for the issuing of a code of practice;

(e)   

requiring green deal participants to comply with the code of practice as

a condition of their authorisation;

(f)   

requiring green deal providers to enter into an agreement with the

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holder of a licence under section 7 of 7A of the Gas Act 1986 (gas

transporter, shipper or supply licences) or section 6(1)(c) or (d) of the

Electricity Act 1989 (electricity distributor and supply licences) and to

comply with that agreement as a condition of their authorisation;

(g)   

requiring that an agreement mentioned in paragraph (f) be approved

20

by the Secretary of State before being entered into;

(h)   

for securing compliance with any condition or any other requirement

of the scheme, code or agreement;

(i)   

as to the consequences of non-compliance with any such condition or

requirement.

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(4)   

The code of practice issued for the purposes of the scheme may, in particular,

make provision—

(a)   

as to the qualification and training of green deal participants;

(b)   

as to their handling of queries or complaints;

(c)   

requiring green deal participants to have such arrangements for

30

insurance as are specified in the code;

(d)   

as to the payment of green deal assessors by green deal providers or

green deal installers and the payment of green deal installers by green

deal providers;

(e)   

as to the circumstances in which green deal assessors may charge

35

customers for qualifying assessments of properties and as to the

amount of any such charge;

(f)   

as to the provision of information by green deal providers to improvers

and bill payers and prospective improvers and bill payers;

(g)   

as to marketing in connection with green deal plans.

40

(5)   

The code may include provision for regulating a body specified or authorised

for the purposes of subsection (1)(a).

(6)   

The scheme and the code may make different provision for different

circumstances or cases or for different purposes.

(7)   

The provision made by the scheme or code in relation to green deal

45

participants may also extend to matters in connection with any energy plans

which are not green deal plans.

 
 

Energy Bill [HL]
Part 1 — Energy efficiency
Chapter 1 — Green deal

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(8)   

The provision made for the purposes of subsection (3)(h) or (i) may, in

particular, include provision enabling the Secretary of State to—

(a)   

cancel any liability to pay for a qualifying assessment of a property;

(b)   

require a green deal provider to suspend or cancel the liability of a bill

payer to make payments under a green deal plan;

5

(c)   

require a green deal participant to rectify a qualifying energy

improvement or its installation;

(d)   

require a green deal participant to pay compensation or a financial

penalty;

(e)   

withdraw, or require a body specified or authorised for the purposes of

10

subsection (1)(a) to withdraw, an authorisation to act as a green deal

participant.

(9)   

For the purposes of this section references to a qualifying assessment are to an

energy efficiency assessment which meets the requirements specified in the

framework regulations and deals with such other matters as may be so

15

specified.

(10)   

This section is without prejudice to the powers conferred on the Secretary of

State by other provisions of this Chapter to make provision in or under the

framework regulations.

Green deal plan

20

4       

Assessment of property etc

(1)   

For the purposes of section 1(4)(c) the conditions as to assessment of the

property and other matters are—

(a)   

the conditions set out in subsections (2) to (9), and

(b)   

such other conditions (whether relating to the green deal assessor, the

25

green deal provider, the improver or any other person) as are specified

in the framework regulations.

(2)   

The first condition is that a qualifying assessment of the property has been

carried out by a person authorised by virtue of the framework regulations to

act as a green deal assessor.

30

(3)   

The second condition is that the green deal assessor has recommended the

energy efficiency improvements.

(4)   

The third condition is that the green deal provider has given an estimate, on the

basis specified in the framework regulations, of the savings likely to be made

on the energy bills for the property if the improvements are carried out.

35

(5)   

The fourth condition is that the green deal provider has given an estimate, on

the basis specified in the framework regulations, of the period over which the

savings mentioned in subsection (4) are likely to be made.

(6)   

The fifth condition is that the green deal provider is authorised by virtue of the

framework regulations to act as a green deal provider.

40

(7)   

The sixth condition is that the green deal provider has offered to carry out the

improvements on the basis that the whole or part of the cost will be repaid in

instalments over a period after the improvements have been made.

 
 

Energy Bill [HL]
Part 1 — Energy efficiency
Chapter 1 — Green deal

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(8)   

The seventh condition is that the green deal provider meets any requirement

specified in the framework regulations as to the relationship between—

(a)   

the estimated total of the proposed instalments, and

(b)   

the estimate mentioned in subsection (4).

(9)   

The eighth condition is that the green deal provider meets any requirement

5

specified in the framework regulations as to the relationship between—

(a)   

the period for which the instalments are proposed to be paid, and

(b)   

the period estimated under subsection (5).

(10)   

In subsection (2) the reference to a qualifying assessment is to be read in

accordance with section 3(9).

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5       

Terms of plan etc

(1)   

For the purposes of section 1(4)(d), the conditions as to the terms of the plan

and other matters are—

(a)   

the conditions set out in subsections (2) to (4), and

(b)   

such other conditions as are specified in the framework regulations.

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(2)   

The first condition is that the plan includes the following terms—

(a)   

a term in which the improver agrees to—

(i)   

the amounts of the payments in instalments and the interval at

which, and period for which, they are payable;

(ii)   

such other matters as are specified in the regulations;

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(b)   

a term in which the improver confirms that any necessary permissions

or consents have been obtained in respect of the improvements;

(c)   

a term providing that the green deal provider may not take a charge

over any person’s property by way of security for payments;

(d)   

a term providing that the green deal plan does not prevent the bill

25

payer from changing the intervals at which energy bills are to be paid.

(3)   

The second condition is that the plan does not include any of the following

terms—

(a)   

a term making a person liable to make any payments under the green

deal plan otherwise than in respect of the period for which the person

30

is the bill payer in relation to the property;

(b)   

a term requiring the bill payer to make in any circumstances an early

repayment of the whole or part of the amount outstanding under the

green deal plan (except in accordance with the framework regulations

or regulations under section 30, or provision made under them);

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(c)   

a term providing for money to be advanced to the improver (except in

accordance with the framework regulations or provision made under

them).

(4)   

The third condition is that the agreements mentioned in paragraph (a) of

subsection (2) and the permissions and consents mentioned in paragraph (b) of

40

that subsection have not been withdrawn before the end of the period of 14

days beginning with the last day on which they were given.

(5)   

The conditions which may be specified in the framework regulations by virtue

of subsection (1)(b) include, in particular—

(a)   

a condition that the plan includes a term so specified enabling the early

45

repayment of the whole or part of the amount outstanding under the

 
 

Energy Bill [HL]
Part 1 — Energy efficiency
Chapter 1 — Green deal

7

 

plan and making provision as to the calculation of the amount payable

and any fee,

(b)   

a condition that the plan includes a term so specified guaranteeing the

improvements and making provision as to who is to benefit from the

guarantee,

5

(c)   

a condition that the plan includes a term so specified as to how any

problems with the improvements installed, or arising in connection

with the installation of them, are to be dealt with, and

(d)   

a condition requiring the agreements mentioned in subsection (2)(a) to

be in the form specified in the framework regulations.

10

(6)   

References in this section to the agreements mentioned in subsection (2)(a)

include references to the consent required by virtue of section 6(2)(a).

6       

Consents and redress etc

(1)   

The framework regulations may make provision for dealing with cases

where—

15

(a)   

at the time when a plan is entered into the improver and the bill payer

are different persons;

(b)   

the bill payer at the time when a plan is entered into is a different

person from the bill payer at any subsequent time (a “subsequent bill

payer”).

20

(2)   

Provision which may be made by virtue of subsection (1) includes—

(a)   

provision requiring the term included in the plan by virtue of section

5(2)(a)(i) to be one to which the bill payer mentioned in subsection

(1)(a) has consented, and

(b)   

provision as to the terms of the plan which are to bind or benefit that

25

bill payer or a subsequent bill payer.

(3)   

Subsection (1) is subject to section 1(6).

(4)   

The framework regulations may make provision for the purpose of providing

redress in cases where a permission or consent mentioned in section 5(2)(b)

was not obtained or was improperly obtained.

30

(5)   

Provision included in framework regulations by virtue of subsection (4) may,

in particular, enable the Secretary of State to—

(a)   

require a green deal provider to suspend or cancel the liability of a bill

payer to make payments under a green deal plan;

(b)   

require a green deal provider to refund any such payments that have

35

already been made;

(c)   

require an improver to pay compensation to the green deal provider in

respect of the suspension, cancellation or refund.

7       

Installation of improvements

(1)   

For the purposes of section 1(5)(a) improvements are installed in accordance

40

with this section if the following three conditions are met.

(2)   

The first condition is that the person carrying out the installation of the

improvements is authorised by virtue of the framework regulations to act as a

green deal installer.

 
 

 
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