Session 2010-11
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Energy Bill [HL]


MARSHALLED
LIST OF AMENDMENTS
TO BE MOVED
IN GRAND COMMITTEE

The amendments have been marshalled in accordance with the Instruction of 12th January 2011, as follows—

Clauses 1 to 68
Schedule 1
Clauses 69 to 85
Schedule 2
Clauses 86 to 102
Schedule 3
Clauses 103 to 105

[Amendments marked * are new or have been altered]

Clause 1

BARONESS SMITH OF BASILDON

LORD GRANTCHESTER

LORD DAVIES OF OLDHAM

The above-named Lords give notice of their intention to oppose the Question that Clause 1 stand part of the Bill.

Clause 2

LORD WHITTY

2*

Page 3, line 1, at end insert “and may only be offered by the green deal provider if all reasonable steps have been taken to install minimum measures as specified in an order made by the Secretary of State falling with paragraph (a)”

BARONESS SMITH OF BASILDON

LORD GRANTCHESTER

LORD DAVIES OF OLDHAM

The above-named Lords give notice of their intention to oppose the Question that Clause 2 stand part of the Bill.

Clause 3

BARONESS PARMINTER

LORD TEVERSON

LORD WHITTY

BARONESS SMITH OF BASILDON

3*

Page 4, line 25, at end insert—

“( ) requiring unannounced random inspections and mystery shopping of green deal participants on a regular basis”

LORD WHITTY

BARONESS SMITH OF BASILDON

LORD GRANTCHESTER

LORD DAVIES OF OLDHAM

4*

Page 4, line 25, at end insert—

“(j) requiring green deal participants to provide warranties that are—

(i) free for the bill payer; and

(ii) non binding for the bill player”

5*

Page 4, line 25, at end insert—

“(j) providing the improver, bill payer or subsequent bill payer with access to an appropriate and qualified single body to whom an unresolved complaint about a green deal participant can be elevated and who—

(i) makes a decision on redress which is non-binding to the complainant and binding to the opposite party;

(ii) can be approached at the behest of the complainant free of charge”

BARONESS PARMINTER

LORD TEVERSON

6*

Page 4, line 31, after “insurance” insert “that automatically opt in the bill payer for a period of time that is reasonable in view of the expectation of the life of the product sold”

LORD WHITTY

BARONESS SMITH OF BASILDON

LORD GRANTCHESTER

LORD DAVIES OF OLDHAM

7*

Page 4, line 31, after “insurance” insert “that automatically opts in the bill payer for a period of time—

(i) that extends beyond the last green deal repayment instalment; and

(ii) that is in reasonable expectation of the life of the product sold”

8*

Page 4, line 46, leave out from “participants” to end of line 47 and insert “must also extend to any other activities undertaken or matters sold at the time of undertaking any green deal energy efficiency improvements”

BARONESS SMITH OF BASILDON

LORD GRANTCHESTER

LORD DAVIES OF OLDHAM

The above-named Lords give notice of their intention to oppose the Question that Clause 3 stand part of the Bill.

After Clause 3

LORD TEVERSON

BARONESS PARMINTER

BARONESS SMITH OF BASILDON

9*

Insert the following new Clause—

“Protection for improvers

The Secretary of State shall have a duty to ensure through regulation, code of practice, and audit that improvers are protected from any collusion, anti-competitive activity, or being offered restricted options that favour particular products or organisations, on account of arrangements or agreements made between green deal providers whether advisers, installers, providers of finance or energy companies.”

Before Clause 4

LORD TEVERSON

BARONESS PARMINTER

10*

Insert the following new Clause—

“Duty of green deal providers

(1) It is the duty of green deal providers to ensure that the energy plan reasonably reflects the best overall energy solution or solutions for that property, while also taking into consideration the total cost, and the period of payback of any scheme.

(2) Green deal providers must be able to show evidence that they have taken due care to promote the best interests of the improver.

(3) Where appropriate, suitable options should be offered to improvers so that they may make a choice.

(4) An energy plan must include an estimate of the annual savings of carbon dioxide emissions.”

Clause 4

LORD WHITTY

BARONESS SMITH OF BASILDON

LORD GRANTCHESTER

LORD DAVIES OF OLDHAM

11*

Page 5, line 32, at end insert “based upon a standardised assessment, applying independently set criteria and in full consideration of the range and benefits of the improvements available to the improver with no bias towards any one green deal provider”

BARONESS SMITH OF BASILDON

LORD GRANTCHESTER

LORD DAVIES OF OLDHAM

The above-named Lords give notice of their intention to oppose the Question that Clause 4 stand part of the Bill.

After Clause 4

LORD TEVERSON

BARONESS PARMINTER

12*

Insert the following new Clause—

“Local housing authorities

(1) Local housing authorities shall be empowered to arrange, with green deal providers, energy saving schemes that cover the whole or a part of housing estates, roads, districts or other local communities.

(2) Local housing authorities will negotiate on behalf of improvers to obtain savings that arise from economies of scale, which will be passed on to individual improvers.

(3) Local housing authorities will be empowered to award council tax rebates to participants in such communal schemes as incentives; and the rebates will be reclaimed from the Energy Company Obligation.”

Clause 5

LORD WHITTY

13*

Page 6, line 19, at end insert—

“(ii) that the structure of repayments over the length of the green deal plan must be equitable to the bill payer and any subsequent bill payer in accordance with a methodology to be in the form specified in the framework regulations;”

14*

Page 6, line 26, at end insert—

“(e) a term requiring the green deal provider to present to the improver the amount of the green deal plan in terms of total credit payable, the amount of the regular payments and an Annual Percentage Rate (APR) calculated in a manner consistent with Consumer Credit (Total Charge for Credit) Regulations 1980 and in accordance with any supplementary guidance before a contract is entered”

15*

Page 6, line 26, at end insert—

“( ) a term requiring the green deal provider only to offer a fixed rate for interest payments for the length of the green deal plan”

16*

Page 7, line 2, leave out “and any fee”

BARONESS SMITH OF BASILDON

LORD GRANTCHESTER

LORD DAVIES OF OLDHAM

The above-named Lords give notice of their intention to oppose the Question that Clause 5 stand part of the Bill.

Clause 6

BARONESS SMITH OF BASILDON

LORD GRANTCHESTER

LORD DAVIES OF OLDHAM

The above-named Lords give notice of their intention to oppose the Question that Clause 6 stand part of the Bill.

Clause 7

BARONESS SMITH OF BASILDON

LORD GRANTCHESTER

LORD DAVIES OF OLDHAM

The above-named Lords give notice of their intention to oppose the Question that Clause 7 stand part of the Bill.

Clause 8

BARONESS SMITH OF BASILDON

LORD GRANTCHESTER

LORD DAVIES OF OLDHAM

The above-named Lords give notice of their intention to oppose the Question that Clause 8 stand part of the Bill.

Clause 9

BARONESS SMITH OF BASILDON

LORD GRANTCHESTER

LORD DAVIES OF OLDHAM

The above-named Lords give notice of their intention to oppose the Question that Clause 9 stand part of the Bill.

Clause 10

BARONESS SMITH OF BASILDON

LORD GRANTCHESTER

LORD DAVIES OF OLDHAM

The above-named Lords give notice of their intention to oppose the Question that Clause 10 stand part of the Bill.

Clause 11

BARONESS SMITH OF BASILDON

LORD GRANTCHESTER

LORD DAVIES OF OLDHAM

The above-named Lords give notice of their intention to oppose the Question that Clause 11 stand part of the Bill.

Clause 12

BARONESS SMITH OF BASILDON

LORD GRANTCHESTER

LORD DAVIES OF OLDHAM

The above-named Lords give notice of their intention to oppose the Question that Clause 12 stand part of the Bill.

Clause 13

BARONESS SMITH OF BASILDON

LORD GRANTCHESTER

LORD DAVIES OF OLDHAM

The above-named Lords give notice of their intention to oppose the Question that Clause 13 stand part of the Bill.]

Clause 14

BARONESS SMITH OF BASILDON

LORD GRANTCHESTER

LORD DAVIES OF OLDHAM

The above-named Lords give notice of their intention to oppose the Question that Clause 14 stand part of the Bill.

Clause 15

BARONESS SMITH OF BASILDON

LORD GRANTCHESTER

LORD DAVIES OF OLDHAM

The above-named Lords give notice of their intention to oppose the Question that Clause 15 stand part of the Bill.

Clause 16

BARONESS SMITH OF BASILDON

LORD GRANTCHESTER

LORD DAVIES OF OLDHAM

The above-named Lords give notice of their intention to oppose the Question that Clause 16 stand part of the Bill.

Clause 17

BARONESS SMITH OF BASILDON

LORD GRANTCHESTER

LORD DAVIES OF OLDHAM

The above-named Lords give notice of their intention to oppose the Question that Clause 17 stand part of the Bill.

Clause 18

BARONESS SMITH OF BASILDON

LORD GRANTCHESTER

LORD DAVIES OF OLDHAM

The above-named Lords give notice of their intention to oppose the Question that Clause 18 stand part of the Bill.

Clause 19

BARONESS SMITH OF BASILDON

LORD GRANTCHESTER

LORD DAVIES OF OLDHAM

The above-named Lords give notice of their intention to oppose the Question that Clause 19 stand part of the Bill.

Clause 20

BARONESS SMITH OF BASILDON

LORD GRANTCHESTER

LORD DAVIES OF OLDHAM

The above-named Lords give notice of their intention to oppose the Question that Clause 20 stand part of the Bill.

Before Clause 30

BARONESS PARMINTER

LORD TEVERSON

17*

Insert the following new Clause—

“Annual report

(1) The Secretary of State must lay before each House of Parliament an annual report on the operation of Chapter 1 of Part 1 of this Act.

(2) Such an annual report must include appropriate indicators to assess whether the targets for emission reductions are being met.”

Clause 30

LORD WHITTY

18*

Page 19, line 32, leave out paragraph (a)

19*

Page 19, line 39, leave out paragraph (d)

Clause 31

LORD WHITTY

BARONESS SMITH OF BASILDON

LORD GRANTCHESTER

LORD DAVIES OF OLDHAM

20*

Page 20, line 22, leave out “(including any fee which may be payable)”

Clause 39

LORD WHITTY

21*

Page 25, line 26, leave out “(including any fee which may be payable)”

Clause 42

LORD WHITTY

22*

Page 27, line 32, leave out “(including any fee which may be payable)”

23*

Page 27, line 46, leave out “(including any fee which may be payable)”

Clause 45

LORD WHITTY

24*

Page 30, line 22, leave out “(including any fee which may be payable)”

Clause 52

LORD WHITTY

25*

Page 34, line 33, leave out “(including any fee which may be payable)”

Clause 55

LORD WHITTY

26*

Page 36, line 42, leave out “(including any fee which may be payable)”

27*

Page 37, line 11, leave out “(including any fee which may be payable)”

Clause 58

LORD WHITTY

28*

Page 39, line 31, leave out “(including any fee which may be payable)”

Before Clause 61

LORD TEVERSON

BARONESS PARMINTER

29*

Insert the following new Clause—

“Carbon neutral buildings and developments

(1) The Secretary of State shall make building regulations that require newly built domestic housing to be designed and constructed in such a way as to be carbon neutral.

(2) These regulations will apply either to individual dwellings or to new developments as a whole.

(3) These regulations shall come into force during 2016.

(4) Within one year of the passing of this Act, the Secretary of State shall, by order made by statutory instrument, prescribe the date at which building regulations will come into force that require commercial buildings or commercial developments as a whole to be carbon neutral.

(5) The definition of the term carbon neutral shall be determined by the Secretary of State following consultation with the construction industry, the Climate Change Committee, environmental groups, energy companies and other experts and interested parties.”

After Clause 64

BARONESS MADDOCK

LORD TEVERSON

30*

Insert the following new Clause—

“Advice on benefits of new or under-utilised technologies

(1) For the purpose of enabling the Secretary of State to assess the benefits of new or under-utilised technologies in reducing home heating costs and dealing with fuel poverty, the Secretary of State must request the advice of the bodies specified in subsection (2) on the following technologies—

(a) passive flue gas heat recovery systems (“PFGHR systems”);

(b) voltage optimisation technologies;

(c) standby down-powering technologies;

(d) dynamic demand technologies;

(e) district network connection technologies; and

(f) such other technologies as the Secretary of State thinks appropriate.

(2) The bodies referred to in subsection (1) are—

(a) the Energy Saving Trust;

(b) the Fuel Poverty Advisory Group.

(3) A request for advice made pursuant to subsection (1) may also include a request for advice as to how those technologies can assist in combating climate change.

(4) The Climate Change Committee must within 12 months of the coming into force of this section consider and produce a report on the ways in which the technologies specified in subsection (1) can assist in reducing carbon emissions.

(5) In this section—

“PFGHR systems” means technology that can use the waste heat from condensing boilers in order to heat water;

“voltage optimisation technologies” are technologies that lower the input of voltage to electrical equipment from that at which electricity is currently generated;

“standby down-powering technologies” are methods by which electrical equipment is turned off, or reduced, during periods of non-use;

“dynamic demand” has the same meaning as in the Climate Change and Sustainable Energy Act 2006;

“district network connection technologies” are technologies that enable consumers to link up lower cost and lower polluting energy generation.”

After Clause 67

BARONESS MADDOCK

LORD TEVERSON

31*

Insert the following new Clause—

“Sustainable energy plans

(1) The purpose of this section is to facilitate the involvement of principal councils and of citizens resident in their areas in action taken to promote sustainable energy policies in order to help achieve the following objectives—

(a) the reduction of carbon emissions;

(b) the reduction of home heating costs;

(c) the security of energy supplies;

(d) the achievement of national fuel poverty targets.

(2) Every principal council may, and if the condition specified in subsection (3) is satisfied apply must, publish a sustainable energy plan (“a plan”) specifying the body’s contribution to achieving the objectives specified in subsection (1).

(3) The condition referred to in subsection (2) is that a petition requesting the publication of a plan, signed by at least 5% of electors in the area of the council, has been delivered to the council.

(4) The Secretary of State must, within 12 months of the passing of this Act, make regulations specifying the rules for the drawing up and presenting of petitions pursuant to this section.

(5) Without prejudice to the generality, a plan must specify the steps that the council proposes to take to promote, namely—

(a) energy efficiency in buildings;

(b) microgeneration;

(c) renewable energy;

(d) combined heat and power.

(6) A plan prepared by a council may—

(a) request such new functions as in the opinion of the council would enable it to make a greater contribution to achieving the objectives specified in subsection (1); and

(b) make a recommendation to the Secretary of State for a transfer of functions from another body to itself provided that no such recommendation may be made unless the council has consulted the person to whose functions it relates.

(7) Within six months of receiving any request pursuant to subsection (6)(a) or recommendation pursuant to subsection (6)(b), the Secretary of State must—

(a) either adopt and implement, or take the necessary steps to commence the process of implementation, or

(b) reject,

the request or recommendation and in either case shall give reasons for the decision.

(8) Where any functions are conferred or transferred pursuant to this section, the Secretary of State shall ensure that the monies necessary for the discharge of those functions are provided or transferred.

(9) Any principal council on which functions are conferred or to which functions are transferred under this section must determine how the functions are then performed.

(10) Where the Secretary of State is spending money in an area covered by a plan in order to achieve any of the objectives specified in subsection (1), and in the Minister’s opinion—

(a) any measure contained in a plan is a more efficient way of achieving the Minister’s objectives; and

(b) offers better value,

then the Minister shall provide resources for the principal council to implement those measures in its plan.

(11) Before drawing up a plan pursuant to this section, a principal council must—

(a) consult such persons in its area as in its opinion will have an interest in the plan;

(b) establish a panel of representatives of local persons;

(c) consult and try to reach agreement with the panel about the content of the plan.

(12) A panel set up recognised pursuant to this section must include representatives of parish councils in the council’s areas.

(13) A principal council shall select the representatives of parish councils to be members of the panel, unless parish councils nominate or otherwise select a member to serve on the panel within 6 months of its establishment.

(14) In this section—

“fuel poverty” shall be construed in accordance with the provisions of section 1 of the Warm Homes and Energy Conservation Act 2000;

“principal council” means a county borough council, a district council, a metropolitan district council or a London Borough Council;

“microgeneration” has the same meaning given by section 26 of the Climate Change and Sustainable Energy Act 2006.”

32*

Insert the following new Clause—

“Promotion of reduction of home heating costs: reduced VAT rate

(1) For the purpose of enabling consumers to purchase energy efficient products in order to reduce home heating costs and carbon emissions, the Chancellor of the Exchequer must within 12 months lay before Parliament an order to reduce the rate of VAT to 5% on—

(a) passive flue gas heat recovery systems; and

(b) low emissivity glass.

(2) An order pursuant to this section shall be by statutory instrument subject to the negative resolution procedure.

(3) In this section—

“passive flue gas heat recovery systems” means technology that can use the waste heat from condensing boilers in order to heat water;

“low emissivity glass” has the same meaning as in Part L of the Building Regulations.”

After Clause 69

LORD TEVERSON

BARONESS PARMINTER

33*

Insert the following new Clause—

“Energy tariffs

Energy tariffs

(1) After consultation with electricity and gas retail sellers, and consumer groups, the Secretary of State shall introduce regulations that make it mandatory for electricity and gas through pipeline supply companies supplying to domestic properties to configure their tariffs so that the initial units of energy supplied are at a lower cost to the consumer than remaining units.

(2) The principles of the scheme shall be—

(a) that the number of lower priced initial units shall represent the average amount of energy required for a household of that size to keep warm, clean and fed to a modest but acceptable standard;

(b) the tariff price for the initial units shall be equal to the medium term marginal cost of the production of that energy;

(c) overall, the new combined tariff should be revenue neutral to the energy supply companies.

(3) The scheme and its tariffs will be assessed and audited by the Office of the Gas and Electricity Markets, who will also be responsible for the capture, analysis, and reporting of all information to the Secretary of State regarding the implementation and management of the scheme.”

After Clause 74

BARONESS MADDOCK

LORD TEVERSON

34*

Insert the following new Clause—

“Cost benefit assessment of energy saving and energy generating

(1) The Secretary of State must within 12 months of the passing of this Act publish an assessment (“the assessment”) of the costs and benefits of saving energy compared with those of generating energy.

(2) In this section saving energy includes measures to—

(a) reduce demand for energy;

(b) conserve energy; and

(c) use energy more efficiently.

(3) Before publishing the assessment, the Secretary of State must consult—

(a) such bodies as in the Secretary of State’s opinion represent—

(i) the energy efficiency industry;

(ii) the energy generating industry; and

(iii) environmental interests; and

(b) such other persons as considered appropriate.

(4) The Secretary of State must take into account the assessment when making any estimates, projections or policies regarding the amount of energy that is required to be generated in order to satisfy the needs of the United Kingdom.”

After Clause 97

LORD TEVERSON

LORD OXBURGH

35

Insert the following new Clause—

“Geothermal power

(1) Within eighteen months of this Bill receiving Royal Assent, the Secretary of State shall, after a period of consultation with industry, geological experts, the devolved administrations, local authorities, energy producers and other interested parties, put into place for the United Kingdom a licensing system and regulations for the exploitation of heat from deep geothermal sources for both the direct use of that heat and for the generation of electricity.

(2) The licenses shall relate to—

(a) individual geographically delineated areas on land;

(b) the heat held by rocks greater than one kilometre below the surface.

(3) Licenses shall give exclusive exploration and production rights for the purpose of energy production from geothermal sources, both direct heat and electricity generation, to the licensee, for that area, and for a specific period of time.

(4) The Secretary of State shall lay down regulations for the method of allocation of licenses to those organisations wishing to explore or exploit those resources, or both.

(5) The Secretary of State shall undertake the first round of allocations within six months of the licensing regulations under subsection (1) being approved.

(6) Any organisation already undertaking exploration or exploitation from geothermal sources within the United Kingdom, in that they have already undertaken, at the time the licensing regime comes into force, boring for the purpose of exploiting geothermal heat to below one kilometre, shall be entitled to hold the first license awarded for that license area, and any licence fee or other consideration for that license area as a part of the licensing regime will then be determined by arbitration under rules determined by the Secretary of State reflecting the fees or other consideration paid for licenses deemed to have similar potential.

(7) The holding of a licence for the exploration or exploitation of deep geothermal heat, or both, shall not convey any automatic rights in terms of planning permissions for surface development, or give any rights in terms of surface access.”

Before Clause 99

LORD WHITTY

36*

Insert the following new Clause—

“Secretary of State not to grant petroleum licence incompatible with offshore renewable energy site

(1) In this section, “offshore renewable energy site” means a site in United Kingdom territorial waters or the REZ which is developed or operated, or is intended to be developed or operated, for—

(a) generating electricity from wind, wave or tidal energy, or

(b) transmitting electricity generated in that way,

in respect of which the Crown Estates have granted a lease, licence, agreement to lease or agreement to license for that purpose.

(2) The Secretary of State may not grant a licence under section 3 of the Petroleum Act 1998 (licence to search and bore for and get petroleum) to the extent that the licence would permit an activity within an offshore renewable energy site, unless the person entitled to the benefit of the lease, licence or agreement in respect of that site so agrees in writing to the grant.”

After Clause 99

LORD JUDD

BARONESS SMITH OF BASILDON

LORD GRANTCHESTER

37*

Insert the following new Clause—

“Bodies able to produce and supply renewable energy

Production and supply of renewable energy by National Park Authorities and the Broads Authority

(1) Section 11 of the Local Government (Miscellaneous Provisions) Act 1976 (production and supply of heat etc. by local authorities) is amended as follows.

(2) After subsection (1) insert—

“(1A) In subsection (1) the definition of “a local authority” shall be understood to include the Broads Authority and National Park Authorities when applied to subsection (1)(a), (b) and (d) (production of heat or electricity or both; establishment and operation of generating stations for production of heat or electricity or both; and use or sale of heat or electricity.”

(3) In subection (3), after “a local authority” insert “including the Broads Authority and National Park Authorities”.”