Energy Bill [HL]

House of Lords

Session 2010 - 11
Internet Publications
Other Bills before Parliament

Energy Bill [HL]

Energy Bill [HL]
Part 1 — Energy efficiency
Chapter 5 — Information about energy consumption, efficiency and tariffs
52

71
Access to register of energy performance certificates etc: Scotland
(1)
The Scottish Ministers may make regulations for the purpose of authorising or
requiring the person keeping a register to disclose, in accordance with the
provision made in the regulations, the documents or data entered onto the
register.
5
(2)
The power under subsection (1) may be exercised, in particular, to make
provision—
(a)
excluding a document or data, or a specified part of a document or data,
from disclosure where the document or data relates to a specified
description of buildings;
10
(b)
excluding a document or data, or a specified part of a document or data,
from disclosure to a specified description of persons;
(c)
restricting the number of disclosures made to a specified description of
persons;
(d)
for a disclosure made to a specified description of persons to be subject
15
to specified conditions;
(e)
as to the sanctions for non-compliance with any condition specified by
virtue of paragraph (d) (including sanctions preventing or restricting
future disclosures);
(f)
in consequence of any provision which is made by virtue of paragraphs
20
(a) to (e).
(3)
In subsection (1) “a register” means a register maintained under regulation 10
of the Energy Performance of Buildings (Scotland) Regulations 2008 (S.S.I.
2008/309).
(4)
In subsection (2) “specified” means specified in the regulations made under
25
this section.
(5)
Regulations under this section—
(a)
may make different provision for different cases or circumstances or for
different purposes;
(b)
are to be made by statutory instrument.
30
(6)
A statutory instrument containing regulations under this section is subject to
annulment in pursuance of a resolution of the Scottish Parliament.
(7)
For the purposes of this section a reference to the disclosure of a document or
data includes a reference to disclosure of information derived from the
document or data.
35
Information about tariffs
72
Power to modify energy supply licences: information about tariffs
(1)
The Secretary of State may modify—
(a)
a condition of a particular licence under section 7A(1) of the Gas Act
1986 (supply licences);
40
(b)
the standard conditions incorporated in licences under that provision
by virtue of section 8 of that Act;
(c)
a condition of a particular licence under section 6(1)(d) of the Electricity
Act 1989 (supply licences);

Energy Bill [HL]
Part 1 — Energy efficiency
Chapter 5 — Information about energy consumption, efficiency and tariffs
53

(d)
the standard conditions incorporated in licences under that provision
by virtue of section 8A of that Act.
(2)
The power under subsection (1) may be exercised for the purpose only of
securing that a licence holder provides a customer on a domestic tariff with
information about one or more of the licence holder’s lowest domestic tariffs.
5
(3)
The information to be provided about a tariff by virtue of subsection (2) may,
in particular, include information about—
(a)
the amount of the tariff;
(b)
the amount the customer would have paid or saved in relation to any
past period if the customer had been on the tariff for that period;
10
(c)
the amount the customer would be likely to pay or save in relation to
any future period if the customer were on the tariff for that period;
(d)
where to find further information about the tariff;
(e)
how to switch to it.
(4)
Modifications under subsection (1) may, in particular, include provision
15
regarding—
(a)
which one or more domestic tariffs of a licence holder are its lowest
domestic tariffs;
(b)
which of its lowest domestic tariffs a licence holder must provide
information about;
20
(c)
how and when the information must be provided;
(d)
the form in which it must be provided.
(5)
The power under 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
25
as specified conditions are satisfied);
(b)
may be exercised differently in different cases or circumstances;
(c)
includes a power to make consequential modifications.
(6)
Provision included in licences by virtue of the power may make different
provision for different cases.
30
(7)
The power under subsection (1) may not be exercised after 1 November 2018.
(8)
In this section—
“domestic supply contract” means a contract for the supply of gas or
electricity by a licence holder to a customer at domestic premises
wholly or mainly for domestic purposes;
35
“domestic tariff” means a tariff under a domestic supply contract.
73
Power to modify energy supply licences: procedure and supplemental
(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
40
(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.

Energy Bill [HL]
Part 2 — Security of energy supplies
Chapter 1 — Electricity supply
54

(3)
The Secretary of State must publish details of any modifications as soon as
reasonably practicable after they are made.
(4)
A modification of part of a standard condition of a particular 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 Gas Act 1986 or Part 1 of
5
the Electricity Act 1989.
(5)
Where the Secretary of State makes a modification of the standard conditions
of a licence of any type, the Gas and Electricity Markets Authority must make
the same modification of those standard conditions for the purposes of their
incorporation in licences of that type granted after that time.
10
(6)
In section 33(1) of the Utilities Act 2000 (standard conditions of electricity
licences)—
(a)
after paragraph (d) omit “or”;
(b)
after paragraph (e) insert “or
(f)
under section 72 of the Energy Act 2011.”
15
(7)
In section 81(2) of the Utilities Act 2000 (standard conditions of gas licences)—
(a)
for “2008 or” substitute “2008,”;
(b)
after “2010” insert “or under section 72 of the Energy Act 2011”.
(8)
In this section “modification” means a modification under section 72.
74
General duties of the Secretary of State
20
(1)
Sections 4AA to 4B of the Gas Act 1986 (principal objective and general duties)
apply in relation to functions of the Secretary of State under section 72 or 73 of
this Act with respect to holders of licences under section 7A(1) of that Act as
they apply in relation to functions of the Secretary of State under Part 1 of that
Act.
25
(2)
Sections 3A to 3D of the Electricity Act 1989 (principal objective and general
duties) apply in relation to functions of the Secretary of State under section 72
or 73 of this Act with respect to holders of licences under section 6(1)(d) of that
Act as they apply in relation to functions of the Secretary of State under Part 1
of that Act.
30
Part 2
Security of energy supplies
Chapter 1
Electricity supply
75
Annual report by Gas and Electricity Markets Authority on security of
35
electricity supply
Before section 47 of the Electricity Act 1989 (and after the cross-heading
immediately preceding that section) insert—
“47ZA
Annual report by Authority on security of electricity supply
(1)
The Authority must, before 1 September 2012, and before that date in
40
every subsequent calendar year—

Energy Bill [HL]
Part 2 — Security of energy supplies
Chapter 1 — Electricity supply
55

(a)
prepare a report on the future demand for, and supply of,
electricity in Great Britain, in accordance with subsection (2),
and
(b)
send the report to the Secretary of State.
(2)
A report under subsection (1) must include, as regards each forecast
5
period—
(a)
a forecast of the peak demand for the supply of electricity to
consumers in Great Britain;
(b)
an assessment of different possible capacity margins for that
supply, and of the degree of protection that each would provide
10
against the risk of shortfalls in supply due to unexpected
demand or unexpected loss of capacity.
(3)
The forecast periods in relation to a report under subsection (1) are—
(a)
each of the four calendar years immediately following the year
of the report; or
15
(b)
any other periods that the Secretary of State specifies by order.
(4)
A forecast by virtue of subsection (2)(a) must be expressed as a single
figure in megawatts rounded to the nearest 100 megawatts, unless the
Secretary of State directs otherwise.
(5)
An assessment by virtue of subsection (2)(b) must take into account, in
20
particular—
(a)
the generation of electricity;
(b)
the operation of electricity interconnectors;
(c)
the storage of electricity;
(d)
the extent to which the available capacity of a generating station
25
is likely to be lower than its maximum possible capacity due to
routine maintenance, weather conditions or any other expected
limitation on its operation;
(e)
demand side response.
(6)
A forecast or assessment by virtue of subsection (2) may to any extent
30
be made by, or based on information provided by—
(a)
the holder of a transmission licence;
(b)
any other person.
(7)
The Secretary of State may give the Authority directions regarding—
(a)
the form of a report under subsection (1);
35
(b)
the manner in which such a report must be prepared or sent;
(c)
the manner in which a forecast or assessment by virtue of
subsection (2) must be made or expressed (including, in
particular, the method of calculation of any of the things
mentioned in subsection (2)(a) or (b)).
40
(8)
In this section—
“capacity margin” means the amount by which the peak demand
for the supply of electricity is exceeded by the capacity likely to
be available to meet that demand;
“consumers” includes both existing and future consumers;
45

Energy Bill [HL]
Part 2 — Security of energy supplies
Chapter 1 — Electricity supply
56

“demand side response” means the cessation of, or a reduction in,
the provision of electricity to a person at times of high demand,
by agreement with the person.”
76
Annual report by Secretary of State on security of energy supplies
(1)
Section 172 of the Energy Act 2004 (annual report by Secretary of State on
5
security of energy supplies) is amended as follows.
(2)
After subsection (2) insert—
“(2A)
In 2012 and in every subsequent calendar year the report must also
include, in particular, as regards each of the assessment periods, an
assessment by the Secretary of State of what electricity supply capacity
10
is required.
(2B)
For the purposes of subsection (2A) the electricity supply capacity
required is the capacity required for the purpose of meeting the
demands of consumers for the supply of electricity in Great Britain,
including spare capacity to allow for unexpected demands or
15
unexpected loss of capacity.
(2C)
The assessment periods, in relation to a report under subsection (1),
are—
(a)
each of the four calendar years immediately following the year
of the report; or
20
(b)
any other periods that the Secretary of State specifies by order.
(2D)
An assessment by virtue of subsection (2A) must take into account, in
particular—
(a)
the generation of electricity;
(b)
the operation of electricity interconnectors;
25
(c)
the storage of electricity;
(d)
the extent to which the available capacity of a generating station
is likely to be lower than its maximum possible capacity due to
routine maintenance, weather conditions or any other expected
limitation on its operation;
30
(e)
demand side response.”
(3)
In subsection (3), after “report” insert “, other than the assessment by virtue of
subsection (2A),”.
(4)
After subsection (3) insert—
“(3A)
An order under this section is subject to the negative resolution
35
procedure.”
(5)
In subsection (4)—
(a)
after the definition of “consumers” insert—
““demand side response” means the cessation of, or a reduction in,
the provision of electricity to a person at times of high demand,
40
by agreement with the person;”;
(b)
after “distribution system,” insert ““electricity interconnector”,
“generating station”, “generation”, “supply,””.

Energy Bill [HL]
Part 2 — Security of energy supplies
Chapter 2 — Gas supply
57

Chapter 2
Gas supply
77
Power of the Gas and Electricity Markets Authority to direct a modification of
the Uniform Network Code
(1)
After section 36B of the Gas Act 1986 insert—
5
“36C
Power to direct a modification of the UNC
(1)
The Authority may direct the operator of the gas National
Transmission System to make a modification to which this section
applies and which is specified in the direction to the Uniform Network
Code.
10
(2)
This section applies to a modification—
(a)
which relates to the arrangements contained in the Code in
respect of a Gas Supply Emergency, and
(b)
which the Authority considers is a market-based modification.
(3)
The Authority may give a direction under this section only if it
15
considers that the modification will do either or both of the following—
(a)
decrease the likelihood of a Gas Supply Emergency occurring;
(b)
decrease the duration or severity of a Gas Supply Emergency
which occurs.
(4)
In the exercise of the power under this section the Authority must have
20
regard to the purposes of Standard Special Condition A11 of licences
granted under section 7 of this Act.
(5)
For the purposes of subsection (2), a modification is “market-based” if
it relates to the creation of financial incentives for gas shippers or gas
transporters.
25
(6)
Before giving a direction under this section the Authority must consult
such persons as it considers appropriate.
(7)
In this section—
“Gas Supply Emergency” and “National Transmission System”
have the meaning given by the Uniform Network Code;
30
“the Uniform Network Code” means the document of that title
required to be prepared pursuant to Standard Special Condition
A11 of licences granted under section 7 of this Act.”
(2)
The requirement of subsection (6) of section 36C of the Gas Act 1986 may be
satisfied by consultation undertaken before the commencement of subsection
35
(1) of this section or the passing of this Act.
(3)
In section 38A of the Gas Act 1986 (reasons for decisions), in subsection (1),
after paragraph (e) insert—
“(ea)
the giving of a direction under section 36C;”.
(4)
In section 173 of the Energy Act 2004 (appeals to the Competition
40

Energy Bill [HL]
Part 2 — Security of energy supplies
Chapter 3 — Upstream petroleum infrastructure
58

Commission), after subsection (2) insert—
“(2A)
This section also applies to a decision by GEMA to give a direction
under section 36C of the Gas Act 1986 (power to direct a modification
of the Uniform Network Code).
(2B)
But subsection (2A) does not have effect in relation to such a decision if
5
it falls within a description of decisions for the time being excluded
from the right of appeal under this section by an order made by the
Secretary of State.”
(5)
In section 175 of the Energy Act 2004 (determination of appeals), in subsection
(4)(b) for “the purposes for which the relevant condition has effect” substitute
10
“—
(i)
the purposes for which the relevant condition has effect
(in the case of an appeal by virtue of section 173(2)), or
(ii)
the purposes of the power to give a direction under
section 36C of the Gas Act 1986 or the purposes of
15
Standard Special Condition A11 of licences granted
under section 7 of that Act (in the case of an appeal by
virtue of section 173(2A))”.
(6)
In Schedule 22 to the Energy Act 2004 (procedure for appeals under section 173
of that Act), in paragraph 3(6) (suspension of a decision) after “direction” insert
20
“(including a direction being appealed against by virtue of section 173(2A) of
this Act)”.
Chapter 3
Upstream petroleum infrastructure
78
Acquisition of rights to use upstream petroleum infrastructure
25
(1)
This section applies where—
(a)
a person makes an application to the owner of a relevant upstream
petroleum pipeline for a right to have things of a kind specified in the
application conveyed by the pipeline during such period as is so
specified and in such quantities as are so specified;
30
(b)
a person makes an application to the owner of a relevant oil processing
facility for a right to have petroleum of a kind specified in the
application processed by the facility during such period as is so
specified and in such quantities as are so specified; or
(c)
a person makes an application to the owner of a relevant gas processing
35
facility for a right to have gas of a kind specified in the application
processed by the facility during such period as is so specified and in
such quantities as are so specified.

And references in this section to “the access application” are to the application
made to the owner of the pipeline or facility.
40
(2)
For the purposes of subsection (1) an upstream petroleum pipeline, an oil
processing facility or a gas processing facility is “relevant” if and in so far as it
is situated—
(a)
in Great Britain;
(b)
in the territorial sea adjacent to Great Britain; or
45