House of Lords portcullis
House of Lords
Session 2010 - 11
Internet Publications
Other Bills before Parliament

Energy Bill [HL]


Energy Bill [HL]
Part 2 — Security of energy supplies
Chapter 4 — Special administration

72

 

92      

Modifications of particular or standard conditions

(1)   

Where the Secretary of State considers it appropriate to do so in connection

with the provision made by this Chapter, the Secretary of State may make—

(a)   

modifications of the conditions of a gas or electricity licence held by a

particular person;

5

(b)   

modifications of the standard conditions of such licences of any type.

(2)   

The power to make modifications under this section includes power to make

incidental, consequential or transitional modifications.

(3)   

Before making a modification under this section, the Secretary of State must

consult—

10

(a)   

the holder of any licence being modified; and

(b)   

such other persons as the Secretary of State considers appropriate.

(4)   

Subsection (3) may be satisfied by consultation that took place wholly or partly

before the commencement of this section.

(5)   

The Secretary of State must publish every modification made under this

15

section.

(6)   

The publication must be in such manner as the Secretary of State considers

appropriate.

(7)   

A modification under subsection (1)(a) of part of a standard condition of a

licence does not prevent any other part of the condition from continuing to be

20

regarded as a standard condition for the purposes of Part 1 of the Gas Act 1986

or Part 1 of the Electricity Act 1989.

(8)   

Where the Secretary of State makes modifications under subsection (1)(b) of

the standard conditions of licences of any type, the Gas and Electricity Markets

Authority must—

25

(a)   

make (as nearly as may be) the same modifications of those standard

conditions for the purposes of their incorporation in licences of that

type granted after that time; and

(b)   

publish the modifications in such manner as it considers appropriate.

(9)   

The Secretary of State’s powers under this section are exercisable only during

30

the eighteen months beginning with the commencement of this section.

(10)   

In section 81(2) of the Utilities Act 2000 (standard conditions of licences under

Part 1 of the Gas Act 1986), after “72” (as inserted by section 73(7) of this Act)

insert “or 92”.

(11)   

In this section “gas or electricity licence” means a licence for the purposes of

35

section 5 of the Gas Act 1986 or section 4 of the Electricity Act 1989 (prohibition

on unlicensed activities).

93      

Licence conditions to secure funding of energy supply company

administration

(1)   

The modifications that may be made under section 92 include, in particular,

40

modifications imposing conditions requiring the holder of the licence—

(a)   

so to modify the charges imposed by the licence holder for anything

done by the licence holder in the carrying on of the licensed activities as

 
 

Energy Bill [HL]
Part 2 — Security of energy supplies
Chapter 4 — Special administration

73

 

to raise such amounts as may be determined by or under the

conditions; and

(b)   

to pay the amounts so raised to such persons as may be so determined

for the purpose of—

(i)   

their applying those amounts in making good any shortfall in

5

the property available for meeting the expenses of an energy

supply company administration; or

(ii)   

enabling those persons to secure that those amounts are so

applied.

(2)   

Those modifications may include modifications imposing on the licence holder

10

an obligation to apply amounts paid to the licence holder in pursuance of

conditions falling within subsection (1)(a) or (b) in making good any such

shortfall.

(3)   

For the purposes of this section—

(a)   

there is a shortfall in the property available for meeting the costs of an

15

energy supply company administration if, in a case where a company

is or has been subject to an energy supply company administration

order, the property available (apart from conditions falling within

subsection (1) or (2)) for meeting relevant debts is insufficient for

meeting them; and

20

(b)   

amounts are applied in making good that shortfall if they are paid in or

towards discharging so much of a relevant debt as cannot be met out of

the property otherwise available for meeting relevant debts.

(4)   

In this section “relevant debt” in relation to a case in which a company is or has

been subject to an energy supply company administration order, means an

25

obligation—

(a)   

to make payments in respect of the expenses or remuneration of any

person as the energy administrator of that company;

(b)   

to make a payment in discharge of a debt or liability of that company

arising out of a contract entered into at a time when the order was in

30

force by the person who at that time was the energy administrator of

that company;

(c)   

to repay the whole or a part of a grant made to that company under

section 165 of the Energy Act 2004 as applied by section 90 of this Act;

(d)   

to repay a loan made to the company under that section as so applied,

35

or to pay interest on such a loan;

(e)   

to make a payment under section 166(4) of that Act as so applied; or

(f)   

to make a payment under section 167(5) of that Act as so applied.

94      

Modifications under the Enterprise Act 2002

(1)   

The power to modify or apply enactments conferred on the Secretary of State

40

by each of the sections of the Enterprise Act 2002 mentioned in subsection (2)

includes power to make such consequential modifications of this Chapter as

the Secretary of State considers appropriate in connection with any other

provision made under that section.

(2)   

Those sections are—

45

(a)   

sections 248 and 277 (amendments consequential on that Act); and

(b)   

section 254 (power to apply insolvency law to foreign companies).

 
 

Energy Bill [HL]
Part 2 — Security of energy supplies
Chapter 4 — Special administration

74

 

(3)   

In section 170(1) of the Energy Act 2004 (modification of Chapter 3 of Part 3 of

that Act under the Enterprise Act 2002) after “Chapter” insert “(including this

Chapter as applied by section 90 of the Energy Act 2011)”.

95      

Power to make further modifications of insolvency legislation

(1)   

The power of the Secretary of State under paragraph 46 of Schedule 20 to the

5

Energy Act 2004 (conduct of energy administration) to make modifications

includes power to make such modifications as the Secretary of State considers

appropriate in relation to any provision made by or under this Chapter.

(2)   

In paragraph 46 of that Schedule, after “Chapter” insert “(including this

Chapter as applied by section 90 of the Energy Act 2011)”.

10

96      

Interpretation of Chapter 4

(1)   

In this Chapter—

“business”, “member” and “property” have the same meanings as in the

Insolvency Act 1986;

“company” means—

15

(a)   

a company registered under the Companies Act 2006, or

(b)   

an unregistered company;

“court”, in relation to a company, means the court—

(a)   

having jurisdiction to wind up the company, or

(b)   

that would have such jurisdiction apart from section 221(2) or

20

441(2) of the Insolvency Act 1986 (exclusion of winding up

jurisdiction in case of companies having principal place of

business in, or incorporated in, Northern Ireland);

“energy administrator” has the meaning given by section 88(2) and is to

be construed in accordance with subsection (2) of this section;

25

“energy supply company administration order” has the meaning given by

section 88(1);

“energy supply company’” has the meaning given by section 88(5);

“modification” includes omission, addition or alteration, and cognate

expressions are to be construed accordingly;

30

“non-GB company” means a company incorporated outside Great Britain;

“objective of the energy supply company administration” is to be

construed in accordance with section 89;

“relevant licence” has the meaning given by section 88(5);

“subsidiary” and “wholly-owned subsidiary” have the meanings given by

35

section 1159 of the Companies Act 2006;

“unregistered company” means a company that is not registered under

the Companies Act 2006.

(2)   

In this Chapter references to the energy administrator of a company—

(a)   

include references to a person appointed under paragraph 91 or 103 of

40

Schedule B1 to the Insolvency Act 1986, as applied by Part 1 of Schedule

20 to the Energy Act 2004 and section 90 of this Act to be the energy

administrator of that company; and

(b)   

where two or more persons are appointed to be the energy

administrator of that company, are to be construed in accordance with

45

 
 

Energy Bill [HL]
Part 3 — Low carbon generation

75

 

the provision made under section 158(5) of the Energy Act 2004, as

applied by section 90 of this Act.

Chapter 5

Continental shelf

97      

Revocation etc of designations under Continental Shelf Act 1964

5

In section 1(7) of the Continental Shelf Act 1964 (power by Order in Council to

designate an area as an area within which rights with respect to the sea bed etc

are exercisable), for “revoke Orders for the purpose of consolidating them”

substitute “revoke, amend or re-enact Orders”.

Part 3

10

Low carbon generation

Offshore electricity

98      

Offshore transmission and distribution of electricity: extension of time for

licence modifications and property scheme applications

(1)   

In section 90 of the Energy Act 2004 (modification of licence conditions for

15

offshore transmission and distribution of electricity), in each of subsections (3)

and (8) (time periods for consulting on and making modifications) for “the

commencement of this section” substitute “the passing of the Energy Act 2011”.

(2)   

In section 91 of the Energy Act 2004 (extension of electricity transmission

licences offshore), in each of subsections (6) and (11) (time periods for

20

consulting on and making modifications) for “the commencement of this

section” substitute “the passing of the Energy Act 2011”.

(3)   

In Schedule 2A to the Electricity Act 1989 (property schemes in respect of

licences for offshore transmission of electricity), in paragraph 5(5) (maximum

possible period during which an application for a scheme may be made) for “7

25

years” substitute “16 years”.

Decommissioning nuclear sites

99      

Agreement about modifying decommissioning programme

(1)   

Section 46 of the Energy Act 2008 (approval of a decommissioning programme)

is amended as follows.

30

(2)   

After subsection (3) insert—

“(3A)   

When approving a programme the Secretary of State may agree to

exercise, or not to exercise, the section 48 power—

(a)   

in a particular manner;

(b)   

within a particular period.

35

(3B)   

An agreement under subsection (3A) may subsequently be amended by

the Secretary of State and the other party to the agreement.

 
 

Energy Bill [HL]
Part 4 — Coal Authority

76

 

(3C)   

Subsections (3A) and (3B) apply notwithstanding that the agreement or

amendment fetters the Secretary of State’s discretion.

(3D)   

In subsection (3A) “section 48 power” means the power of the Secretary

of State under section 48 to propose a modification of the programme

or a modification of the conditions to which the approval of the

5

programme is subject.”

(3)   

In subsection (4) for “(3)” substitute “(3B)”.

Part 4

Coal Authority

100     

Additional powers of the Coal Authority: England and Wales

10

(1)   

After section 4C of the Coal Industry Act 1994 insert—

“4CA    

Further powers relating to subsidence and water discharge

(1)   

The Authority may take such action as it considers appropriate (if

any)—

(a)   

with respect to subsidence arising otherwise than in connection

15

with coal-mining;

(b)   

for the purpose of preventing, or mitigating the effect of, the

discharge of water other than from a coal mine into or on to any

land or into any controlled waters.

(2)   

The powers conferred on the Authority by subsection (1) do not affect

20

any other function of the Authority.”

(2)   

In section 4A of that Act (power of the Coal Authority with respect to coal mine

water discharge), in subsection (2), for “and 4C” substitute “, 4C and 4CA”.

101     

Additional powers of the Coal Authority: Scotland

(1)   

After section 4F of the Coal Industry Act 1994 insert—

25

“4G     

Further powers relating to subsidence and water discharge: Scotland

(1)   

The Authority may take such action as it considers appropriate (if

any)—

(a)   

with respect to subsidence arising otherwise than in connection

with coal-mining;

30

(b)   

for the purpose of preventing, or mitigating the effect of, the

discharge of water other than from a coal mine into or on to any

land or into the water environment.

(2)   

The powers conferred on the Authority by subsection (1) do not affect

any other function of the Authority.”

35

(2)   

In section 4D of that Act (power of the Coal Authority with respect to coal mine

water discharge in Scotland), in subsection (2), for “and 4F” substitute “, 4F and

4G”.

 
 

Energy Bill [HL]
Part 5 — Miscellaneous and general

77

 

Part 5

Miscellaneous and general

Miscellaneous

102     

Repeal of measures relating to home energy efficiency

(1)   

Subject to the saving in subsection (2) of this section, the Home Energy

5

Conservation Act 1995 ceases to have effect in England and Wales and

Scotland.

(2)   

The definitions in section 1 of that Act continue to have effect for the purposes

of the Sustainable Energy Act 2003.

(3)   

Section 217 of the Housing Act 2004 (energy efficiency of residential

10

accommodation in England) ceases to have effect.

(4)   

Schedule 3 contains repeals and revocations consequential on this section.

General

103     

Extent

(1)   

Subject to subsections (2) to (5), this Act extends to England and Wales and

15

Scotland only.

(2)   

The following provisions extend to England and Wales only—

(a)   

sections 9 and 11(2) to (4) and (8) (documents containing information

about green deal plans: England and Wales),

(b)   

section 13(3) to (5) (acknowledgment of green deal plan in respect of

20

property in England or Wales),

(c)   

sections 35 to 47 (private rented sector: England and Wales),

(d)   

section 70 (access to register of energy performance certificates etc:

England and Wales), and

(e)   

section 100 (additional powers of the Coal Authority: England and

25

Wales).

(3)   

The following provisions extend to Scotland only—

(a)   

sections 10 and 11(5) to (7) and (9) (documents containing information

about green deal plans: Scotland),

(b)   

section 13(6) to (8) (acknowledgment of green deal plan in respect of

30

property in Scotland),

(c)   

sections 48 to 60 (private rented sector: Scotland),

(d)   

section 71 (access to register of energy performance certificates etc:

Scotland), and

(e)   

section 101 (additional powers of the Coal Authority: Scotland).

35

(4)   

Subject to section 102(1) and subsection (5) below, an amendment or repeal of

an enactment has the same extent as the enactment amended or repealed.

(5)   

The amendments made by sections 23 to 26 (green deal: modifying consumer

credit legislation) extend to England and Wales and Scotland only.

 
 

 
previous section contents continue
 
House of Lords home page Houses of Parliament home page House of Commons home page search page enquiries

© Parliamentary copyright 2010
Revised 9 December 2010