Energy Act 2011
- “oil processing operations” means any of the following operations—initial blending and such other treatment of petroleum as may be required to produce stabilised crude oil and other hydrocarbon liquids to the point at which a seller could reasonably make a delivery to a purchaser of such oil and liquids;receiving stabilised crude oil and other hydrocarbon liquids piped from an oil processing facility carrying out operations of a kind mentioned in paragraph (a), or storing oil or other hydrocarbon liquids so received, prior to their conveyance to another place (whether inside or outside Great Britain);loading stabilised crude oil and other hydrocarbon liquids piped from a facility carrying out operations of a kind mentioned in paragraph (a) or (b) for conveyance to another place (whether inside or outside Great Britain);
- “petroleum production project” means a project carried out by virtue of a licence granted under section 3 of the Petroleum Act 1998 or section 2 of the Petroleum (Production) Act 1934, or an equivalent project in a foreign sector of the continental shelf, and includes such a project which is used for the storage of gas;
- “terminal” includes—facilities for such initial blending and other treatment as may be required to produce stabilised crude oil and other hydrocarbon liquids to the point at which a seller could reasonably make a delivery to a purchaser of such oil and liquids;oil processing facilities;gas processing facilities; anda facility for the reception of gas prior to its conveyance to a place outside Great Britain.
Meaning of “associate” for the purposes of section 82
91
- (1) For the purposes of section 82(7)(d) and (9)(a) a person is an associate of another if—
- (a) either or both of them is a body corporate, and
- (b) one of them controls the other, or both are controlled by the same person or persons,
and subsections (2) to (6) set out the circumstances in which one person (“A”) controls another (“B”).
- (2) Where B is a company, A controls B if A possesses or is entitled to acquire—
- (a) one half or more of the issued share capital of B,
- (b) such rights as would entitle A to exercise one half or more of the votes exercisable in general meetings of B,
- (c) such part of the issued share capital of B as would entitle A to one half or more of the amount distributed if the whole of the income of B were in fact distributed among the shareholders, or
- (d) such rights as would, in the event of the winding up of B or in any other circumstances, entitle it to receive one half or more of the assets of B which would then be available for distribution among the shareholders.
- (3) Where B is a limited liability partnership, A controls B if A—
- (a) holds a majority of the voting rights in B,
- (b) is a member of B and has a right to appoint or remove a majority of other members, or
- (c) is a member of B and controls alone, or pursuant to an agreement with other members, a majority of the voting rights in B.
- (4) In subsection (3)(a) and (c) the references to “voting rights” are to the rights conferred on members in respect of their interests in a limited liability partnership to vote on those matters which are to be decided on by a vote of the members of the limited liability partnership.
- (5) In any case, A controls B if A has the power, directly or indirectly, to secure that the affairs of B are conducted in accordance with A's wishes.
- (6) In determining whether, by virtue of subsections (2) to (5), A controls B, A shall be taken to possess—
- (a) any rights and powers possessed by a person as nominee for it, and
- (b) any rights and powers possessed by a body corporate which it controls (including rights and powers which such a body corporate would be taken to possess by virtue of this paragraph).
CHAPTER 4 — Downstream gas processing facilities
Acquisition of rights to use gas processing facilities for downstream purposes
92
- (1) Section 12 of the Gas Act 1995 (acquisition of rights to use gas processing facilities) is amended as follows.
- (2) In the heading at the end insert “ for downstream purposes ”.
- (3) For “the Secretary of State” (in each place those words occur) substitute “ the Authority ”.
- (4) In subsection (1)—
- (a) in the words before paragraph (a), after “gas processing facility” insert “ which processes gas for a downstream purpose ”;
- (b) in that paragraph for “on that person's behalf” substitute “ for such a purpose ”.
- (5) After subsection (1) insert—
(1ZA) At least two months before publishing those conditions or any changes to them under subsection (1), the owner of the facility must— (a) publish a draft of the proposed conditions or changes; and (b) inform any person who has a right to have gas processed by the facility that the draft has been published. (1ZB) The owner of the facility must take into account any representations received about the proposed conditions or changes before publishing them, or a modified version of them, as final conditions or changes under subsection (1).
- (6) In subsection (1B) for “on his behalf” substitute “ for a downstream purpose ”.
- (7) In subsection (1D)—
- (a) omit the “and” immediately preceding paragraph (c);
- (b) after paragraph (c) insert
; and (d) that the gas is to be processed for a downstream purpose
.
- (8) In subsection (1G) for “he” substitute “ it ”.
- (9) In subsection (2)(b) for “his” substitute “ its ”.
- (10) For subsections (5) and (5A) substitute—
(5) Sections 28 to 30F of the 1986 Act (enforcement of relevant requirements etc) apply in relation to the owner of a gas processing facility as if— (a) references to “a licence holder” were references to the owner of the facility; and (b) references to a “relevant requirement” were references to a requirement imposed on the owner under this section. (5A) For the purposes of this section, gas is processed for “a downstream purpose” if it is processed with a view to its being put into a gas storage facility, an LNG import or export facility, a gas interconnector or a distribution system pipeline.
- (11) In subsection (6)—
- (a) in the definition of “gas processing facility” for the words from “carries” to the end substitute
— (a) carries out gas processing operations; (b) is operated otherwise than by a gas transporter; and (c) is not an LNG import or export facility;
;
- (b) insert, in the appropriate place, the following definitions—
- “authorised transporter” has the same meaning as in Part 1 of the 1986 Act;
;
“the Authority” means the Gas and Electricity Markets Authority;
;
“distribution system operator” has the meaning given by Article 2(6) of Directive 2009/73/EC of the European Parliament and of the Council of 13 July 2009 concerning common rules for the internal market in natural gas and repealing Directive 2003/55/EC;
;
“distribution system pipeline” means a pipeline operated by an authorised transporter who is a distribution system operator;
;
“gas interconnector” has the same meaning as in Part 1 of the 1986 Act;
;
“gas storage facility” means a facility in Great Britain (including the territorial sea adjacent to Great Britain and the sea in any area designated under section 1(7) of the Continental Shelf Act 1964) for either or both of the following— (a) the storage in porous strata, or in cavities in strata, of gas which has been, or will be, conveyed in a pipeline system operated by the holder of a licence under section 7 or 7ZA of the 1986 Act; (b) the storage of liquid gas which, if regasified, would be suitable for conveyance through pipes to premises in accordance with a licence under section 7 of the 1986 Act; but the reference in paragraph (b) to the storage of liquid gas does not include such temporary storage as is mentioned in the definition of “LNG import or export facility”;
;
“LNG import or export facility” means a facility in Great Britain (including the territorial sea adjacent to Great Britain and the sea in any area designated under section 1(7) of the Continental Shelf Act 1964) for— (a) the importation into Great Britain and regasification of liquid gas prior to its conveyance to a pipeline system operated by the holder of a licence under section 7 or section 7ZA of the 1986 Act, or the liquefaction of gas for the purpose of its export from Great Britain; and (b) any activity, including temporary storage of gas or liquid gas, which is necessary for that importation, regasification or liquefaction;
;
“storage”, in relation to liquid gas in a gas storage facility, includes any liquefaction of gas or regasification of liquid gas ancillary to the storage of liquid gas, and “stored”, in relation to liquid gas in a gas storage facility, shall be construed accordingly;
.
- (12) For subsection (7) substitute—
(7) Section 91 of the Energy Act 2011 (meaning of “associate”) applies for the purposes of subsection (3) of this section as it applies for the purposes of section 82(7)(d) and (9)(a) of that Act.
CHAPTER 5 — Special administration
Special administration under the Energy Act 2004
Amendment of section 166 of the Energy Act 2004
93
- (1) Section 166 of the Energy Act 2004 (indemnities) is amended as follows.
- (2) After subsection (3) insert—
(3AA) As soon as practicable after agreeing to indemnify persons under this section, the Secretary of State must lay a statement of the agreement before Parliament.
- (3) After subsection (6) insert—
(6A) Where a sum has been paid out by the Secretary of State in consequence of an indemnity agreed to under this section, the Secretary of State must lay a statement relating to that sum before Parliament— (a) as soon as practicable after the end of the financial year in which that sum is paid out; and (b) (except where subsection (4) does not apply in the case of the sum) as soon as practicable after the end of each subsequent relevant financial year. (6B) In relation to a sum paid out in consequence of an indemnity, a financial year is a relevant financial year for the purposes of subsection (6A) unless— (a) before the beginning of that year, the whole of that sum has been repaid to the Secretary of State under subsection (4); and (b) the company in question is not at any time during that year subject to liability to pay interest on amounts that became due under that subsection in respect of that sum.
Special administration under this Chapter
Energy supply company administration orders
94
- (1) An energy supply company administration order (referred to in this Chapter as an “esc administration order”) is an order which—
- (a) is made by the court in relation to an energy supply company; and
- (b) directs that, while the order is in force, the affairs, business and property of the company are to be managed by a person appointed by the court.
- (2) The person appointed in relation to a company for the purposes of an esc administration order is the energy administrator of the company.
- (3) The energy administrator of a company must manage its affairs, business and property, and exercise and perform all the powers and duties of an energy administrator, so as to achieve the objective set out in section 95.
- (4) In relation to an esc administration order applying to a non-GB company, references in this section to the affairs, business and property of the company are references only to its affairs and business so far as carried on in Great Britain and to its property in Great Britain.
- (5) In this Chapter—
- “energy supply company” means a company which is the holder of a relevant licence; and
- “relevant licence” means—a licence granted under section 7A(1)(a) or (b) of the Gas Act 1986 to supply gas, ora licence granted under section 6(1)(d) of the Electricity Act 1989 to supply electricity.
Objective of an energy supply company administration
95
- (1) The objective of an energy supply company administration is to secure—
- (a) that energy supplies are continued at the lowest cost which it is reasonably practicable to incur; and
- (b) that it becomes unnecessary, by one or both of the following means, for the esc administration order to remain in force for that purpose.
- (2) Those means are—
- (a) the rescue as a going concern of the company subject to the esc administration order; and
- (b) transfers falling within subsection (3).
- (3) A transfer falls within this subsection if it is a transfer as a going concern—
- (a) to another company, or
- (b) as respects different parts of the undertaking of the company subject to the esc administration order, to two or more different companies,
of so much of that undertaking as it is appropriate to transfer for the purpose of achieving the objective of the energy supply company administration.
- (4) The means by which transfers falling within subsection (3) may be effected include, in particular—
- (a) a transfer of the undertaking of the company subject to the esc administration order, or of a part of its undertaking, to a wholly-owned subsidiary of that company; and
- (b) a transfer to a company of securities of a wholly-owned subsidiary to which there has been a transfer falling within paragraph (a).
- (5) The objective of an energy supply company administration may be achieved by transfers falling within subsection (3) to the extent only that—
- (a) the rescue as a going concern of the company subject to the esc administration order is not reasonably practicable or is not reasonably practicable without such transfers;
- (b) the rescue of that company as a going concern will not achieve that objective or will not do so without such transfers;
- (c) such transfers would produce a result for the company's creditors as a whole that is better than the result that would be produced without them; or
- (d) such transfers would, without prejudicing the interests of those creditors as a whole, produce a result for the company's members as a whole that is better than the result that would be produced without them.
Application of certain provisions of the Energy Act 2004 in relation to esc administration orders
96
- (1) Sections 156 to 167 of, and Schedules 20 and 21 to, the Energy Act 2004 (special administration regime for energy licensees) apply in relation to an esc administration order as they apply in relation to an energy administration order within the meaning given by section 154(1) of that Act, but with the modifications set out in subsections (2) to (4).
- (2) In the application of those provisions generally—
- (a) for “energy administration”, in each place where it occurs, substitute “ energy supply company administration ”;
- (b) for “a protected energy company”, in each place where it occurs, substitute “ an energy supply company ”.
- (3) In the application of Schedule 20—
- (a) in paragraph 32(d), for the words from “ “ “energy administration application”” to “Energy Act 2004” substitute “ “ “energy supply company administration application” means an application to the court for an energy supply company administration order under Chapter 3 of Part 3 of the Energy Act 2004, as applied by section 96 of the Energy Act 2011”;
- (b) in paragraph 32(e), for “section 155 of the Energy Act 2004” substitute “ section 95 of the Energy Act 2011 ”;
- (c) in paragraph 36, for “section 154(4) of this Act” substitute “ section 94(4) of the Energy Act 2011 ”;
- (d) in paragraph 43, after “the Energy Act 2004” insert “ and section 96 of the Energy Act 2011 ”;
- (e) in paragraph 44(5), after “the Energy Act 2004” insert “ and section 96 of the Energy Act 2011 ”;
- (f) in paragraph 45, after “section 157(1)(e) of this Act” insert “ as applied by section 96 of the Energy Act 2011 ”;
- (g) in paragraph 47, after “Part 1 of this Schedule” insert “ and section 96 of the Energy Act 2011 ”.
- (4) In the application of Schedule 21—
- (a) in paragraph 1(b), for “section 155(3)” substitute “ section 95(3) of the Energy Act 2011 ”;
- (b) in paragraph 12, for “section 155” substitute “ section 95 of the Energy Act 2011 ”.
- (5) Sections 171 and 196 of the Energy Act 2004 (interpretation) apply for the purposes of the application by subsection (1) of the provisions mentioned in that subsection, but with the modifications set out in subsection (6).
- (6) In the application of section 171(1)—
- (a) insert, at the appropriate places, the following definitions—
- “energy supply company” has the meaning given by section 94(5) of the Energy Act 2011;
;
“energy supply company administration order” has the meaning given by section 94(1) of the Energy Act 2011;
;
“energy supply company administration rules” means rules made under section 411 of the 1986 Act by virtue of section 159(3) of this Act, for the purpose of giving effect to this Chapter as applied by section 96 of the Energy Act 2011;
;
“objective of the energy supply company administration” is to be construed in accordance with section 95 of the Energy Act 2011;
;
- (b) in the definition of “energy administrator” for “section 154(2)” substitute “ section 94(2) of the Energy Act 2011 ”;
- (c) in the definition of “relevant licence” for “section 154(5)” substitute “ section 94(5) of the Energy Act 2011 ”.
Conduct of administration, transfer schemes, etc
97
In section 159(3) of the Energy Act 2004 (conduct of administration, transfer schemes, etc under Chapter 3 of Part 3 of that Act), after “Chapter”, in the second place where it appears, insert “ (including this Chapter as applied by section 96 of the Energy Act 2011) ”.
Modifications of particular or standard conditions
98
- (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;
- (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—
- (a) the holder of any licence being modified; and
- (b) such other persons as the Secretary of State considers appropriate.
- (4) The Secretary of State must publish every modification made under this section.
- (5) The publication must be in such manner as the Secretary of State considers appropriate.
- (6) 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 regarded as a standard condition for the purposes of Part 1 of the Gas Act 1986 or Part 1 of the Electricity Act 1989.
- (7) 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—
- (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.
- (8) The Secretary of State's powers under this section are exercisable only during the eighteen months beginning with the commencement of this section.
- (9) In section 33(1) of the Utilities Act 2000 (standard conditions of generation, distribution and supply licences under Part 1 of the Electricity Act 1989), after “76” (as inserted by section 77(5) of this Act) insert “ or 98 ”.
- (10) In section 81(2) of the Utilities Act 2000 (standard conditions of transporter, supply and shipping licences under Part 1 of the Gas Act 1986), after “76” (as inserted by section 77(6) of this Act) insert “ or 98 ”.
- (11) In section 146(5) of the Energy Act 2004 (standard conditions of interconnector licences under Part 1 of the Electricity Act 1989), for “or under this Act” substitute “ , under this Act or under section 98 of the Energy Act 2011 ”.
- (12) In section 150(5) of the Energy Act 2004 (standard conditions of interconnector licences under Part 1 of the Gas Act 1986), for “or under this Act” substitute “ , under this Act or under section 98 of the Energy Act 2011 ”.
- (13) Sections 4AA to 4B of the Gas Act 1986 (principal objective and general duties) apply in relation to the powers of the Secretary of State under this section with respect to holders of gas licences as they apply in relation to functions of the Secretary of State under Part 1 of that Act.
- (14) Sections 3A to 3D of the Electricity Act 1989 (principal objective and general duties) apply in relation to the powers of the Secretary of State under this section with respect to holders of electricity licences as they apply in relation to functions of the Secretary of State under Part 1 of that Act.
- (15) In this section—
- (a) references to a gas licence are to a licence for the purposes of section 5 of the Gas Act 1986 (prohibition on unlicensed activities relating to gas), and
- (b) references to an electricity licence are to a licence for the purposes of section 4 of the Electricity Act 1989 (prohibition on unlicensed activities relating to electricity).
Licence conditions to secure funding of energy supply company administration
99
- (1) The modifications that may be made under section 98 include, in particular, 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 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 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 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 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
- (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 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 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 96 of this Act;
- (d) to repay a loan made to the company under that section as so applied, 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.
Modifications under the Enterprise Act 2002
100
- (1) The power to modify or apply enactments conferred on the Secretary of State 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—
- (a) sections 248 and 277 (amendments consequential on that Act); and
- (b) section 254 (power to apply insolvency law to foreign companies).
- (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 96 of the Energy Act 2011) ”.
Power to make further modifications of insolvency legislation
101
- (1) The power of the Secretary of State under paragraph 46 of Schedule 20 to the 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 96 of the Energy Act 2011) ”.
Interpretation of Chapter 5
102
- (1) In this Chapter—
- “business”, “member” and “property” have the same meanings as in the Insolvency Act 1986;
- “company” means—a company registered under the Companies Act 2006, oran unregistered company;
- “court”, in relation to a company, means the court—having jurisdiction to wind up the company, orthat would have such jurisdiction apart from section 221(2) or 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 94(2) and is to be construed in accordance with subsection (2) of this section;
- “energy supply company administration order” has the meaning given by section 94(1);
- “energy supply company'” has the meaning given by section 94(5);
- “modification” includes omission, addition or alteration, and cognate expressions are to be construed accordingly;
- “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 95;
- “relevant licence” has the meaning given by section 94(5);
- “subsidiary” and “wholly-owned subsidiary” have the meanings given by 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 Schedule B1 to the Insolvency Act 1986, as applied by Part 1 of Schedule 20 to the Energy Act 2004 and section 96 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 the provision made under section 158(5) of the Energy Act 2004, as applied by section 96 of this Act.
CHAPTER 6 — Continental shelf
Revocation etc of designations under Continental Shelf Act 1964
103
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 — Measures for reducing carbon emissions
Offshore electricity
Offshore transmission and distribution of electricity: extension of time for licence modifications and property scheme applications
104
- (1) In section 90 of the Energy Act 2004 (modification of licence conditions for 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 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 years” substitute “ 16 years ”.
Security of nuclear construction sites
Regulation of security of nuclear construction sites
105
- (1) Section 77 of the Anti-terrorism, Crime and Security Act 2001 (regulation of security of civil nuclear industry) is amended as follows.
- (2) In subsection (1) (list of matters that may be regulated) after paragraph (c) insert—
(cza) nuclear construction sites and equipment used or stored on such sites;
.
- (3) In subsection (7) after the definition of “equipment” insert—
“nuclear construction site” means a site— (a) on which works are being carried out with a view to its becoming a nuclear site used wholly or mainly for purposes other than defence purposes; and (b) which is situated within 5 kilometres of an existing nuclear site.
Decommissioning
Agreement about modifying decommissioning programme
106
- (1) Section 46 of the Energy Act 2008 (approval of a decommissioning programme) is amended as follows.
- (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. (3B) An agreement under subsection (3A) may subsequently be amended by the Secretary of State and the other party to the agreement. (3C) The Secretary of State may not make such an agreement or amend such an agreement unless satisfied that the agreement (or the agreement as amended) includes adequate provision for the modification of the programme in the event that the provision made by it for the technical matters (including the financing of the designated technical matters) ceases to be prudent. (3D) Provision in such an agreement (including the provision mentioned in subsection (3C)) may include provision— (a) for a determination by a third party in relation to a relevant matter specified in the agreement, and (b) for the Secretary of State to be bound by such a determination. (3E) A “relevant matter” is a matter relating to the provision made by the programme for the technical matters. (3F) Subsections (3A) to (3D) apply notwithstanding that the agreement or amendment fetters the Secretary of State's discretion. (3G) 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 programme is subject.
- (3) In subsection (4) for “(3)” substitute “ (3B) ”.
Abandonment: infrastructure converted for CCS demonstration projects
107
- (1) The Energy Act 2008 is amended as follows.
- (2) After section 30 insert—
(30A) (1) The Secretary of State may by order designate an installation as an eligible CCS installation. (2) But an order may not be made under subsection (1) in relation to— (a) a carbon storage installation established or maintained under a licence granted by the Scottish Ministers, or (b) any other installation established or maintained wholly or partly in Scotland. (3) An order under subsection (1) ceases to have effect if the installation in relation to which it is made becomes an installation within subsection (2)(a). (4) An eligible CCS installation qualifies for change of use relief if— (a) the installation is or has been used as part of a CCS demonstration project, and (b) the trigger event has occurred in relation to the installation at a time when the installation was so used (whether before or after it was designated under this section). (5) The trigger event occurs— (a) in relation to an installation used for the injection of captured carbon dioxide into a carbon storage facility as part of a CCS demonstration project, when captured carbon dioxide is first present at the installation, and (b) in relation to an installation used as part of a CCS demonstration project for any other purpose, when captured carbon dioxide is first present at another installation used as mentioned in paragraph (a) as part of the same project. (6) Where an eligible CCS installation qualifies for change of use relief— (a) an abandonment programme notice must not be served on a person who is within section 30(1) of the 1998 Act only because one or more of subsections (7) to (9) applies in relation to the person (but this does not affect the validity of a notice served on any such person before the installation qualified for change of use relief), and (b) a proposal must not be made under section 34(1)(b) of the 1998 Act if the effect of the proposal (if implemented) would be to impose an abandonment liability on a person who is within section 34(2)(a) of the 1998 Act only because one or more of subsections (7) to (10) applies in relation to the person. (7) This subsection applies in relation to a person if— (a) the person is within paragraph (b) of section 30(1) of the 1998 Act in relation to the installation only by virtue of the fact that the person had a right mentioned in section 30(5)(a) of that Act when an activity mentioned in section 30(6) of that Act was last carried on from, by means of or on the installation, and (b) any such activity was last so carried on before the trigger event occurred in relation to the installation. (8) This subsection applies in relation to a person if— (a) the person is within paragraph (ba) of section 30(1) of the 1998 Act in relation to the installation, and (b) the transfer mentioned in sub-paragraph (i) of that paragraph took place before the trigger event occurred in relation to the installation. (9) This subsection applies in relation to a person if the person is within paragraph (e) of section 30(1) of the 1998 Act only by virtue of being associated with a body corporate which is within subsection (7) or (8). (10) This subsection applies in relation to a person if the person has been within any of paragraphs (a), (b), (c), (d) or (e) of section 30(1) of the 1998 Act in relation to the installation, but only at a time— (a) when the installation was an offshore installation (within the meaning given by section 44 of the 1998 Act), and (b) before the trigger event occurred in relation to the installation. (11) The power conferred by subsection (1) does not include a power to revoke an order made under that subsection. (12) In this section— - “abandonment liability”, in relation to an installation, means a duty to secure that an abandonment programme for the installation is carried out; - “abandonment programme”, in relation to an installation, means a programme in respect of the installation approved, or having effect as if approved, by the Secretary of State under section 32 of the 1998 Act; - “abandonment programme notice” means a notice served under section 29(1) of the 1998 Act; - “captured carbon dioxide” means carbon dioxide that has been produced by, or in connection with, commercial electricity generation and captured with a view to its disposal by way of permanent storage; - “carbon dioxide”, “CCS demonstration project” and “commercial electricity generation” have the same meanings as in Part 1 of the Energy Act 2010 (see section 7 of that Act); - “carbon storage facility” has the same meaning as in section 20; - “Scotland” has the same meaning as in the Scotland Act 1998 (see section 126(1) of that Act). (13) Section 30(8) to (9) of the 1998 Act (when one body corporate is associated with another) apply for the purposes of this section. (30B) (1) The Secretary of State may by order designate a submarine pipeline as an eligible CCS pipeline. (2) An eligible CCS pipeline qualifies for change of use relief if— (a) the pipeline is or has been used as part of a CCS demonstration project for a purpose other than the transport of petroleum, and (b) the trigger event has occurred in relation to the pipeline at a time when the pipeline was so used (whether before or after it was designated under this section). (3) The trigger event— (a) in relation to a pipeline used to transport captured carbon dioxide as part of a CCS demonstration project, occurs when captured carbon dioxide is first present in the pipeline, and (b) in relation to a pipeline used as part of a CCS demonstration project for any other purpose, occurs— (i) when captured carbon dioxide is first present in another pipeline used as part of the same project, or (ii) if earlier, when captured carbon dioxide is first present at an installation used as part of the same project for the injection of captured carbon dioxide into a carbon storage facility. (4) Where an eligible CCS pipeline qualifies for change of use relief, a proposal must not be made under section 34(1)(b) of the 1998 Act if the effect of the proposal (if implemented) would be to impose an abandonment liability on a person who is within section 34(2)(b) of the 1998 Act only because subsection (5) applies in relation to the person. (5) This subsection applies in relation to a person if the person has been within any of paragraphs (a) to (c) of section 30(2) of the 1998 Act in relation to the pipeline, but only at a time— (a) when the pipeline was used solely for activities other than activities connected with any mentioned in section 17(2)(a), (b) or (c), and (b) before the trigger event occurred in relation to the pipeline. (6) The power conferred by subsection (1) does not include a power to revoke an order made under that subsection. (7) In this section— - “abandonment liability”, in relation to a submarine pipeline, is a duty to secure that an abandonment programme for the pipeline is carried out; - “abandonment programme”, in relation to a submarine pipeline, means a programme in respect of the pipeline approved, or having effect as if approved, by the Secretary of State under section 32 of the 1998 Act; - “captured carbon dioxide” and “CCS demonstration project” have the same meanings as in section 30A; - “carbon storage facility” has the same meaning as in section 20; - “petroleum” has the same meaning as in Part 1 of the 1998 Act (see section 1 of that Act) and includes petroleum that has undergone any processing; - “submarine pipeline” has the same meaning as in Part 4 of the Petroleum Act 1998 (see section 45 of that Act).
- (3) In the cross heading before section 30, for “installations” substitute “ infrastructure ”.
- (4) In section 30 (abandonment of installations)—
- (a) in subsection (1) (application of Part 4 of Petroleum Act 1998 in relation to abandonment of carbon storage installations)—
- (i) for “ “the 1998 Act”” substitute “ referred to in this section and sections 30A and 30B as “the 1998 Act” ”, and
- (ii) at the end insert “ and section 30A ”,
- (b) after subsection (4) (power to make regulations modifying Part 4 of the 1998 Act in its application to carbon storage installations) insert—
(4A) The power in subsection (4) is subject to section 30A.
, and
- (c) in subsection (5) (meaning of “carbon storage installation”) after “this section” insert “ and section 30A ”.
- (5) In section 105(2) (parliamentary control of subordinate legislation), after paragraph (a) insert—
(aa) an order which contains provision made under section 30A or 30B only (powers to designate installations and submarine pipelines as eligible CCS installations and eligible CCS pipelines);
.
Carbon dioxide pipelines
Carbon dioxide pipelines: powers of compulsory acquisition
108
- (1) The Pipe-lines Act 1962 is amended as follows.
- (2) In section 12 (orders for compulsory acquisition of rights over land for pipe-line construction)—
- (a) in subsection (1), for “the next following section” substitute “ section 13 ”;
- (b) in subsections (2), (4), (5)(a) and (b), (5A) (in both places), (6) and (7), after “a compulsory rights order” insert “ under this section ”;
- (c) in subsection (3), after “compulsory rights orders” insert “ under this section ”.
- (3) After section 12 insert—
(12A) (1) This section applies in relation to a pipe-line (or a length of a pipe-line) that is intended to be converted into a pipe-line (or length) used for conveying carbon dioxide. (2) The owner of the pipe-line may apply to the Secretary of State for an order under subsection (3) in relation to land in which the pipe-line (or a length of the pipe-line) is situated. (3) An order under this subsection is an order authorising the owner of the pipe-line to do one or more of the following— (a) to use the pipe-line (or length of the pipe-line) in the land described in the order to convey carbon dioxide; (b) to execute pipe-line works in the land which are necessary in consequence of the presence of the pipe-line (or length) in the land; (c) to execute pipe-line works in the land to enable the pipe-line (or length) to be used to convey carbon dioxide or in consequence of its use to convey carbon dioxide; (d) to exercise, in relation to the pipe-line (or length), such of the rights mentioned in Schedule 4 as may be specified in the order. An order under this subsection is referred to in this Act as a “compulsory rights order”. (4) A compulsory rights order under this section may be made subject to conditions (see section 13). (5) On receiving an application under subsection (2), the Secretary of State may grant or refuse the application. (6) Part 1 of Schedule 2, as modified by Part 2 of that Schedule, has effect in relation to applications for compulsory rights orders under this section. (7) A compulsory rights order under this section enures for the benefit of the owner for the time being of the pipe-line. (8) The Secretary of State may by order revoke a compulsory rights order under this section, in whole or in part, if— (a) the pipe-line (or length of the pipe-line) is diverted from the land described in the order, (b) the pipe-line (or length) is abandoned, (c) the pipe-line (or length) ceases to be used to convey carbon dioxide, or (d) the owner of the pipe-line makes an application for the revocation of the order. (9) A compulsory rights order under this section does not affect any right over the land described in the order that would not have been affected had the land been compulsorily purchased by virtue of a compulsory purchase order. (10) A compulsory rights order under this section does not authorise the disregard of any enactment or of any instrument having effect by virtue of any enactment. (11) A compulsory rights order under this section is not to be taken to confer a right of support for the pipeline (or length of pipeline). (12) A compulsory rights order under this section is to be subject to special parliamentary procedure. (13) For the purposes of this section, “carbon dioxide” includes any substance consisting primarily of carbon dioxide. Compulsory Rights Orders under Sections 12 and 12A: Supplementary Provisions
.
- (4) In section 66 (general interpretation provisions), in subsection (1), in the definition of “compulsory rights order”, for “subsection (1) of section twelve” substitute “ sections 12(1) and 12A(3) ”.
- (5) In Schedule 2—
- (a) in the shoulder reference, after “12,” insert “ 12A, ”;
- (b) in paragraph 10(1), for “subsection (3) of section twelve of this Act” substitute “ sections 12(3) and 12A(6) ”.
- (6) In Schedule 4, in the shoulder reference, for “Section 12” substitute “ Sections 12 and 12A ”.
Carbon emissions reduction
Contribution to carbon budgeting under the Climate Change Act 2008
109
- (1) The Secretary of State must prepare and publish an annual report on the extent to which—
- (a) green deal plans under Chapter 1 of Part 1, and
- (b) the energy company obligations provisions,
have contributed to the Secretary of State fulfilling the duty under section 4(1)(b) of the Climate Change Act 2008 (carbon budgeting).
- (2) The “energy company obligations provisions” means—
- (a) sections 33BC and 33BD of the Gas Act 1986 and sections 41A and 41B of the Electricity Act 1989 (promotion of reductions in carbon emissions and home-heating costs),
- (b) sections 103 and 103A of the Utilities Act 2000 (overall carbon emissions and home-heating cost reduction targets), and
- (c) section 103B of the Utilities Act 2000 (Secretary of State's power to require information about carbon emissions and home-heating cost reduction targets).
- (3) The first report under this section must be published before the end of 2014.
- (4) The Secretary of State must lay before Parliament a copy of each report under this section.
Energy efficiency aim
110
- (1) The Secretary of State must take such action as he considers appropriate to improve the energy efficiency of residential accommodation in England so as to contribute to the Secretary of State fulfilling the duty under section 1(1) of the Climate Change Act 2008 (reduction of net UK carbon account by 2050).
- (2) In subsection (1) “residential accommodation” has the meaning given by section 1 of the Home Energy Conservation Act 1995.
- (3) Section 2 of the Sustainable Energy Act 2003 (energy efficiency of residential accommodation) ceases to have effect.
- (4) In section 9 of the Sustainable Energy Act 2003 (citation, extent and commencement), in subsections (3) and (5) leave out “2,”.
Electricity from renewable sources
Adjustment of electricity transmission charges
111
In section 185(11) of the Energy Act 2004 (areas suitable for renewable electricity generation: end date for schemes adjusting transmission charges) for “2024” substitute “ 2034 ”.
Electricity from renewable sources: National Park authorities and Broads Authority
112
- (1) This section applies to a body which is a National Park authority or the Broads Authority.
- (2) The body may—
- (a) produce electricity from a renewable source;
- (b) establish and operate generating stations and other installations for the purpose of producing electricity from a renewable source;
- (c) make grants or loans to enable other persons to do anything which the body may do by virtue of paragraph (a) or (b);
- (d) use, sell or otherwise dispose of electricity produced by virtue of the powers conferred by this section.
- (3) A “renewable source” is—
- (a) in England and Wales, a source listed in regulation 2 of the Sale of Electricity by Local Authorities (England and Wales) Regulations 2010 (S.I. 2010/1910);
- (b) in Scotland, a source listed in regulation 2 of the Sale of Electricity by Local Authorities (Scotland) Regulations 2010 (S.I. 2010/1908).
- (4) Any regulations which—
- (a) are made in exercise of the power conferred by section 11(3) of the Local Government (Miscellaneous Provisions) Act 1976 (power to prescribe the circumstances in which local authorities may sell electricity), and
- (b) amend, revoke or re-enact regulation 2 of the Sale of Electricity by Local Authorities (England and Wales) Regulations 2010,
may amend subsection (3)(a) for the purpose of providing what is a “renewable source” in England and Wales.
- (5) Any regulations which—
- (a) are made in exercise of the power conferred by section 170A(3) of the Local Government (Scotland) Act 1973 (power to prescribe the circumstances in which local authorities may sell electricity), and
- (b) amend, revoke or re-enact regulation 2 of the Sale of Electricity by Local Authorities (Scotland) Regulations 2010,
may amend subsection (3)(b) for the purpose of providing what is a “renewable source” in Scotland.
- (6) Nothing in this section—
- (a) exempts a body from the requirements of Part 1 of the Electricity Act 1989, or
- (b) affects what a body has power to do apart from this section.
Northern Ireland: renewable heat incentives
Renewable heat incentives in Northern Ireland
113
- (1) The Department of Enterprise, Trade and Investment may make regulations—
- (a) establishing a scheme to facilitate and encourage renewable generation of heat in Northern Ireland, and
- (b) about the administration and financing of the scheme.
- (2) Regulations under this section may, in particular—
- (a) make provision for the Department or NIAUR to make payments, or to require designated fossil fuel suppliers to make payments, in specified circumstances, to—
- (i) the owner of plant used or intended to be used for the renewable generation of heat, whether or not the owner is also operating or intending to operate the plant;
- (ii) a producer of biogas or biomethane;
- (iii) a producer of biofuel for generating heat;
- (b) make provision about the calculation of such payments;
- (c) make provision about the circumstances in which such payments may be recovered;
- (d) require designated fossil fuel suppliers to provide specified information to the Department or NIAUR;
- (e) make provision for payments to fossil fuel suppliers in specified circumstances;
- (f) make provision about the enforcement of obligations imposed by or by virtue of the regulations (which may include a power for the Department or NIAUR to impose financial penalties);
- (g) confer functions on the Department or NIAUR, or both.
- (3) In this section—
- “biofuel” means liquid or gaseous fuel which is produced wholly from biomass;
- “biogas” means gas produced by the anaerobic or thermal conversion of biomass;
- “biomass” means material, other than fossil fuel or peat, which is, or is derived directly or indirectly from, plant matter, animal matter, fungi or algae;
- “biomethane” means biogas which is suitable for conveyance through pipes to premises in accordance with a licence under Article 8(1)(a) of the Gas (Northern Ireland) Order 1996 (S.I. 1996/275 (N.I. 2)) (licences to convey gas);
- “the Department” means the Department of Enterprise, Trade and Investment;
- “designated fossil fuel suppliers” means—if the regulations so provide, a specified class of fossil fuel suppliers, andin any other case, all fossil fuel suppliers;
- “fossil fuel” means—coal;lignite;natural gas (within the meaning of the Energy Act 1976);crude liquid petroleum;petroleum products (within the meaning of that Act);any substance produced directly or indirectly from a substance mentioned in paragraphs (a) to (e);
- “fossil fuel supplier” means a person who supplies fossil fuel to consumers for the purpose of generating heat;
- “functions” includes powers and duties;
- “modify” includes amend, add to or repeal;
- “NIAUR” means the Northern Ireland Authority for Utility Regulation;
- “owner”, in relation to any plant which is the subject of a hire purchase agreement, a conditional sale agreement or any agreement of a similar nature, means the person in possession of the plant under that agreement;
- “plant” includes any equipment, apparatus or appliance;
- “renewable generation of heat” means the generation of heat by means of a source of energy or technology mentioned in subsection (4).
- (4) The sources of energy and technologies are—
- (a) biomass;
- (b) biofuels;
- (c) fuel cells;
- (d) water (including waves and tides);
- (e) solar power;
- (f) geothermal sources;
- (g) heat from air, water or the ground;
- (h) combined heat and power systems (but only if the system's source of energy is a renewable source within the meaning given by Article 55F of the Energy (Northern Ireland) Order 2003 (S.I. 2003/419 (N.I. 6)));
- (i) biogas.
- (5) The Department may by regulations—
- (a) modify the list of sources of energy and technologies in subsection (4);
- (b) modify the definition of “biofuel”, “biogas” or “biomass” in subsection (3).
- (6) The Department may by regulations make provision, for the purposes of subsection (2)(a)(iii) and the definition of “fossil fuel supplier”, specifying that particular activities do or do not constitute generating heat.
- (7) Any power to make regulations under this section is to be exercisable by statutory rule for the purposes of the Statutory Rules (Northern Ireland) Order 1979 (S.I. 1979/1573 (N.I. 12)).
- (8) Regulations under this section may not be made unless a draft of the regulations has been laid before, and approved by a resolution of, the Northern Ireland Assembly.
- (9) Regulations under this section may—
- (a) provide for a person to exercise a discretion in dealing with any matter;
- (b) include incidental, supplementary and consequential provision;
- (c) make transitory or transitional provisions or savings;
- (d) make provision generally, only in relation to specified cases or subject to exceptions (including provision for a case to be excepted only so long as conditions specified in the regulations are satisfied);
- (e) make different provision for different cases or circumstances or for different purposes.
Power for Gas and Electricity Markets Authority to act on behalf of Northern Ireland authority in connection with scheme under section 113
114
- (1) GEMA and a Northern Ireland authority may enter into arrangements for GEMA to act on behalf of the Northern Ireland authority for, or in connection with, the carrying out of any functions that may be conferred on the Northern Ireland authority under, or for the purposes of, any scheme that may be established, under section 113.
- (2) In this section—
- “GEMA” means the Gas and Electricity Markets Authority;
- “Northern Ireland authority” means—the Department of Enterprise, Trade and Investment, orthe Northern Ireland Authority for Utility Regulation.
Part 4 — Coal Authority
Additional powers of the Coal Authority: England and Wales
115
- (1) After section 4C of the Coal Industry Act 1994 insert—
(4CA) (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; (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 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 ”.
Additional powers of the Coal Authority: Scotland
116
- (1) After section 4F of the Coal Industry Act 1994 insert—
(4G) (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; (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.
- (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 ”.
Part 5 — Miscellaneous and general
Miscellaneous
Amendment of section 137 of the Energy Act 2004
117
In section 137(3) of the Energy Act 2004 (standard conditions of transmission licences under Part 1 of the Electricity Act 1989)—
- (a) in paragraph (a) omit “or”, and
- (b) after paragraph (b) insert—
(c) under the Energy Act 2008, (d) under the Energy Act 2010, or (e) under the Energy Act 2011,
.
Amendment and repeal of measures relating to home energy efficiency
118
- (1) The Home Energy Conservation Act 1995—
- (a) ceases to have effect in Scotland;
- (b) ceases to apply in relation to energy conservation authorities in Wales.
- (2) In section 1 of that Act (interpretation) in the definition of “energy conservation measures” after “promotion,” insert “ any available financial assistance, ”.
- (3) In section 1 of the Sustainable Energy Act 2003 (annual report on progress towards sustainable energy aims)—
- (a) subsection (1)(e) and the “and” immediately preceding it cease to have effect, and
- (b) subsection (1AA) ceases to have effect.
- (4) In section 4 of that Act (energy efficiency of residential accommodation: energy conservation authorities) subsection (13)(b) ceases to have effect.
- (5) Section 217 of the Housing Act 2004 (energy efficiency of residential accommodation in England) ceases to have effect.
General
Consultation
119
A requirement for the Secretary of State to consult which arises under or by virtue of this Act may be satisfied by consultation before, as well as consultation after, the passing of this Act.
Extent
120
- (1) Subject to subsections (2) to (6), this Act extends to England and Wales and Scotland only.
- (2) The following provisions extend to England and Wales only—
- (a) section 9 (documents containing information about green deal plans: England and Wales),
- (b) section 14(3) to (5) (acknowledgment of green deal plan in respect of property in England or Wales),
- (c) section 15(3) (further provision made in regulations for acknowledgment of such a plan),
- (d) sections 42 to 53 (private rented sector: England and Wales),
- (e) section 74 (access to register of energy performance certificates etc: England and Wales),
- (f) section 110 (energy efficiency aim), and
- (g) section 115 (additional powers of the Coal Authority: England and Wales).
- (3) The following provisions extend to Scotland only—
- (a) section 10 (documents containing information about green deal plans: Scotland),
- (b) section 14(6) to (8) (acknowledgment of green deal plan in respect of property in Scotland),
- (c) section 15(4) (further provision made in regulations for acknowledgment of such a plan),
- (d) section 35(6) (green deal appeals: revocation or amendment of delegated legislation by Scottish Ministers),
- (e) sections 54 to 65 (private rented sector: Scotland),
- (f) section 75 (access to register of energy performance certificates etc: Scotland), and
- (g) section 116 (additional powers of the Coal Authority: Scotland).
- (4) Section 113 (renewable heat incentives in Northern Ireland) extends to Northern Ireland only.
- (5) Section 114 (power for Gas and Electricity Markets Authority to act on behalf of Northern Ireland authority in connection with scheme under section 113) extends to England and Wales, Scotland and Northern Ireland.
- (6) Subject to section 118(1) and subsection (7) below, an amendment or repeal of an enactment has the same extent as the enactment amended or repealed.
- (7) The amendments made by sections 25 to 29 (green deal: modifying consumer credit legislation) extend to England and Wales and Scotland only.
Commencement
121
- (1) The provisions of this Act come into force on such day as the Secretary of State may by order made by statutory instrument appoint, subject to subsections (2) to (5).
- (2) The following provisions come into force on such day as the Scottish Ministers may by order appoint—
- (a) section 10 (documents containing information about green deal plans: Scotland);
- (b) section 14(6) to (8) (acknowledgment of green deal plan in respect of property in Scotland);
- (c) section 15(4) (further provision made in regulations for acknowledgment of such a plan);
- (d) section 35(6) (green deal appeals: revocation or amendment of delegated legislation by Scottish Ministers);
- (e) sections 54 to 65 (private rented sector: Scotland);
- (f) section 75 (access to register of energy performance certificates etc: Scotland).
- (3) The following provisions come into force at the end of the period of two months beginning with the day on which this Act is passed—
- (a) sections 66 to 72 (reducing carbon emissions and home-heating costs);
- (b) section 73 (smart meters);
- (c) section 74 (access to register of energy performance certificates etc: England and Wales);
- (d) sections 76 to 78 (information about tariffs);
- (e) sections 79 and 80 (security of electricity supply);
- (f) sections 93 to 102 (special administration);
- (g) section 103 (designations under Continental Shelf Act 1964);
- (h) subsection (3) of section 104 (offshore transmission and distribution of electricity);
- (i) section 105 (regulation of security of nuclear construction sites);
- (j) section 106 (agreement about modifying decommissioning programme);
- (k) section 107 (abandonment: infrastructure converted for CCS demonstration projects);
- (l) section 111 (adjustment of electricity transmission charges);
- (m) section 112 (electricity from renewable sources: National Park authorities and Broads Authority);
- (n) sections 113 and 114 (renewable heat incentives in Northern Ireland).
- (4) The following provisions come into force on the day on which this Act is passed—
- (a) section 37 (preparatory expenditure: framework regulations);
- (b) section 81 (modification of the Uniform Network Code);
- (c) subsections (1) and (2) of section 104 (offshore transmission and distribution of electricity);
- (d) sections 119 and 120, this section and section 122 (general provisions).
- (5) Schedule 1 (reducing carbon emissions and home-heating costs: minor and consequential amendments) comes into force as follows—
- (a) paragraphs 1, 2, 7, 8(1), (2)(a), (3)(a) and (4) and 9 come into force at the end of the period of two months beginning with the day on which this Act is passed;
- (b) paragraphs 4 and 8(2)(b), (3)(b) and (5) come into force on 1 January 2013;
- (c) paragraphs 3, 5 and 6 come into force on 6 April 2014.
- (6) An order made by the Secretary of State or the Scottish Ministers under this section may—
- (a) appoint different days for different purposes;
- (b) make transitional provision and savings.
Short title
122
This Act may be cited as the Energy Act 2011.
SCHEDULE 1
Gas Act 1986
1
In section 33DA(1)(a) of the Gas Act 1986 (publication of statistical information about standards of performance) after sub-paragraph (ii) insert—
(iii) home-heating cost reduction obligations imposed by order under section 33BD; and
.
Electricity Act 1989
2
The Electricity Act 1989 is amended in accordance with paragraphs 3 to 6.
3
In section 6(9) (definition of “electricity distributor”, “electricity generator” and “electricity supplier”) omit the definition of “electricity generator”.
4
- (1) Section 41A (promotion of reductions in carbon emissions: electricity generators, electricity distributors and electricity suppliers) is amended as follows.
- (2) In the heading omit “electricity generators,”.
- (3) In subsection (1)—
- (a) omit paragraph (za) (power to impose carbon emission reduction obligation on electricity generators);
- (b) in the words after paragraph (b) omit “generator,”.
- (4) In subsection (3) omit “electricity generators,”.
- (5) In subsection (4) omit paragraph (a) (duty to carry out functions under the section in a way that does not inhibit competition between electricity generators).
- (6) In subsection (5)—
- (a) in paragraph (a) omit “electricity generators,”;
- (b) in paragraph (d) omit “generators,”;
- (c) in paragraph (f) omit “generators,”.
- (7) In subsection (6) omit “generator,”.
- (8) In subsection (7)(d) omit “electricity generator,”.
- (9) In subsection (8)(d) omit “generators,”.
- (10) In subsection (11) omit “electricity generators,”.
5
- (1) Section 42AA (publication of statistical information about standards of performance) is amended as follows.
- (2) In paragraph (a) of subsection (1)—
- (a) omit “electricity generators,”;
- (b) after sub-paragraph (ii) insert—
(iii) home-heating cost reduction obligations imposed by order under section 41B; and
.
- (3) In paragraph (b) of subsection (1) omit “generators,”.
- (4) In subsection (2) omit “electricity generators,”.
6
In section 64(1) (interpretation etc of Part 1) in the definition of “electricity distributor”, “electricity generator” and “electricity supplier” omit “, “electricity generator””.
Utilities Act 2000
7
The Utilities Act 2000 is amended in accordance with paragraphs 8 and 9.
8
- (1) Section 103 (overall carbon emissions reduction targets) is amended as follows.
- (2) In subsection (1)—
- (a) in the words before paragraph (a) for “by the Authority of its functions” substitute “ of the functions of the Administrator ”;
- (b) in paragraph (b) omit “generators,”.
- (3) In subsection (2)—
- (a) in the words before paragraph (a) for “the Authority to apportion the target” substitute “ the target to be apportioned ”
- (b) in paragraph (b) omit “electricity generators,”.
- (4) In subsection (3) for “The Authority” substitute “ The Administrator ”.
- (5) In subsection (4) omit “electricity generators,”.
9
In section 105 (general restriction on disclosure of information) in subsection (3) (circumstances in which the restriction does not apply to a disclosure) after paragraph (a) insert—
(ab) it is required by a notice under section 103B of this Act or is permitted by subsection (6) of that section;
.
SCHEDULE 2
Pipe-lines Act 1962
1
The Pipe-lines Act 1962 is amended in accordance with paragraphs 2 to 7.
2
In section 9 (provisions for securing that a pipeline is so constructed as to reduce necessity for construction of others)—
- (a) in subsection (8) for the words from “applications” to the end substitute
with respect to the proposed pipe-line— (a) an application of a kind mentioned in subsection (1)(a) of section 82 of the Energy Act 2011 (acquisition of rights to use upstream petroleum infrastructure), and (b) if applicable, an application under subsection (4) of that section.
;
- (b) after subsection (8) insert—
(9) For the purposes of an application made with respect to a proposed pipe-line by virtue of subsection (8)— (a) sections 82 and 83 of the Energy Act 2011 shall have effect as if— (i) references to a pipe-line were references to the proposed pipe-line as it would be once constructed in accordance with the condition attached by virtue of subsection (1) of this section; (ii) references to the owner of a pipe-line were reference to the proposed owner of the proposed pipeline; (b) section 84 of the Energy Act 2011 shall be disregarded.
3
In section 9A (provisions for securing that an additional pipe-line is so constructed as to reduce necessity for construction of other pipe-lines)—
- (a) in subsection (8) for the words from “applications” to the end substitute
with respect to the proposed pipe-line— (a) an application of a kind mentioned in subsection (1)(a) of section 82 of the Energy Act 2011 (acquisition of rights to use upstream petroleum infrastructure), and (b) if applicable, an application under subsection (4) of that section.
;
- (b) after subsection (8) insert—
(9) For the purposes of an application made with respect to a proposed pipe-line by virtue of subsection (8)— (a) sections 82 and 83 of the Energy Act 2011 shall have effect as if— (i) references to a pipe-line were references to the proposed pipe-line as it would be once constructed in accordance with the notice served under subsection (1) of this section; (ii) references to the owner of a pipe-line were reference to the proposed owner of the proposed pipeline; (b) section 84 of the Energy Act 2011 shall be disregarded.
4
In section 10A(2) for “, 10(4) or 10E(9)” substitute “ or 10(4) ”.
5
Sections 10E to 10H (provisions for securing that upstream petroleum pipe-lines are so used as to reduce necessity for construction of other etc) are repealed.
6
In section 65(2) (meaning of “pipeline”) omit paragraph (g) and the “and” immediately before that paragraph.
7
In section 66(1) (general interpretation provisions)—
- (a) in paragraph (c) of the definition of “owner” for the words from “sections 10C” to “section 10E(2))” substitute “ section 10C ”;
- (b) for the definition of “upstream petroleum pipe-line” substitute—
“upstream petroleum pipe-line” has the meaning given by section 90(1) of the Energy Act 2011
.
Petroleum Act 1998
8
The Petroleum Act 1998 is amended in accordance with paragraphs 9 to 15.
9
In section 15 (authorisations for construction and use of controlled pipelines) in subsection (6) after “or 17G(6)” insert “ of this Act or section 89(4) and (5) of the Energy Act 2011 ”.
10
In section 16 (compulsory modifications of controlled pipelines) before subsection (1) insert—
(A3) Pipelines that are relevant upstream petroleum pipelines for the purposes of section 82(1) of the Energy Act 2011 are excepted from the operation of this section.
11
In section 17 (acquisition of rights to use controlled pipelines) for subsection (1A) substitute—
(1A) This section does not apply to— (a) controlled petroleum pipelines; (b) pipelines in, under or over the territorial sea adjacent to Great Britain which are used to convey gas directly from a terminal to a pipeline system operated by a gas transporter or to any premises; (c) gas interconnectors (within the meaning of Part 1 of the Gas Act 1986).
12
In section 17F (acquisition of rights to use controlled petroleum pipelines) in subsection (1) for the words from “, other” to the end substitute “ in, under or over the territorial sea adjacent to Northern Ireland ”.
13
In section 17G (section 17F: supplemental) in subsection (1) for “controlled waters” substitute “ the territorial sea adjacent to Northern Ireland ”.
14
In section 18 (termination of authorisations for construction and use of controlled pipelines) in subsection (6)(b) after “or 17F(9)” insert “ of this Act or section 82(11) of the Energy Act 2011 ”.
15
In section 19 (vesting of controlled pipelines on termination or subsequent issue of authorisations) in subsection (1)(b) after “or section 17F(9)” insert “ of this Act or section 82(11) of the Energy Act 2011 ”.
Energy Act 2008
16
The Energy Act 2008 is amended in accordance with paragraphs 17 and 18.
17
Sections 80 to 82 (third party access to oil processing facilities) are repealed.
18
In section 112 (extent) omit paragraph (c) of subsection (2).
Green deal plans: supplementary
Recovering green deal payments: gas suppliers
Recovering green deal payments: electricity suppliers
Exemption from Consumer Credit Act 1974 in relation to credit to business debtors
Duties to give debtors information and statements
Delegation and conferring of functions
Further provision about tenants' energy efficiency improvements regulations
Promotion of reductions in carbon emissions: electricity generators, distributors and suppliers
Promotion of reductions in home-heating costs: gas transporters and suppliers
Promotion of reductions in home-heating costs: electricity distributors and suppliers
Power of Secretary of State to require information: carbon emissions reduction targets and home-heating cost reduction targets
Annual report by Secretary of State on security of energy supplies
Power of the Gas and Electricity Markets Authority to direct a modification of the Uniform Network Code
Annual report by Secretary of State on security of energy supplies
Power of the Gas and Electricity Markets Authority to direct a modification of the Uniform Network Code
Power of Secretary of State to give a notice under section 82(11) on own initiative
Energy supply company administration orders
Power to make further modifications of insolvency legislation
Interpretation of Chapter 5
Power to make further modifications of insolvency legislation
Offshore transmission and distribution of electricity: extension of time for licence modifications and property scheme applications
Revocation etc of designations under Continental Shelf Act 1964
Offshore transmission and distribution of electricity: extension of time for licence modifications and property scheme applications
Abandonment: infrastructure converted for CCS demonstration projects
Abandonment: infrastructure converted for CCS demonstration projects
Carbon dioxide pipelines: powers of compulsory acquisition
Additional powers of the Coal Authority: England and Wales
Amendment and repeal of measures relating to home energy efficiency
Extent
Consultation
Extent
Gas Act 1986
Electricity Act 1989
Utilities Act 2000
Pipe-lines Act 1962
Petroleum Act 1998
Energy Act 2008
Editorial notes
[^c21152991]: S. 104 wholly in force at 18.12.2011; s. 104(1)(2) in force at Royal Assent and s. 104(3) in force at 18.12.2011 see s. 121(3)(h)(4)(c)
[^c21153001]: Sch. 1 para. 8 (1)(2)(a)(3)(a)(4) in force at 18.12.2011, see s. 121(5)(a)
[^key-dca47ffd6e587003f00b21adb35d5923]: S. 91 applied by 1995 c. 45, s. 12(7) (as substituted (21.3.2012) by Energy Act 2011 (c. 16), ss. 92(12), 121(1); S.I. 2012/873, art. 2(b)(ii))
[^key-e25467f9f1e60484588d95be34c20b1c]: S. 82 modified by 1962 c. 58, s. 9(9)(a) (as amended) (21.3.2012) by Energy Act 2011 (c. 16), s. 121(1), Sch. 2 paras. 2(b)(3)(b); S.I. 2012/873, art. 2(b)(i) (with art. 4)
[^key-b4d2556915f24ea80d777e8ab3d42f0d]: S. 83 modified by 1962 c. 58, s. 9(9)(a) (as amended) (21.3.2012) by Energy Act 2011 (c. 16), s. 121(1), Sch. 2 paras. 2(b)(3)(b); S.I. 2012/873, art. 2(b)(i) (with art. 4)
[^key-25ff6de53e10803f60f96deebfa3ffee]: S. 84 excluded by 1962 c. 58, s. 9(9)(b) (as amended) (21.3.2012) by Energy Act 2011 (c. 16), s. 121(1), Sch. 2 paras. 2(b)(3)(b); S.I. 2012/873, art. 2(b)(i) (with art. 4)
[^key-139b4b5f824bbb11fa3f837e2cf0f7ae]: S. 3 in force at 21.3.2012 by S.I. 2012/873, art. 2(a)(i)
[^key-ed22942995c6e90f1dfbcf4e5c60816e]: S. 6 in force at 21.3.2012 by S.I. 2012/873, art. 2(a)(ii)
[^key-4ba87b41d54301b5c618b397763a0130]: S. 16 in force at 21.3.2012 by S.I. 2012/873, art. 2(a)(iv)
[^key-58b487a4762246a9936f16b1264476da]: S. 17 in force at 21.3.2012 by S.I. 2012/873, art. 2(a)(v)
[^key-c54f6d19397209d2e485982401e28289]: S. 18 in force at 21.3.2012 by S.I. 2012/873, art. 2(a)(v)
[^key-1b7bbd290331ae3b5609fb61cbb6fac5]: S. 19 in force at 21.3.2012 by S.I. 2012/873, art. 2(a)(v)
[^key-4fd4f835504b209bce1bcc99d0f8fff1]: S. 20 in force at 21.3.2012 by S.I. 2012/873, art. 2(a)(v)
[^key-2905dac2ad97b68f520501b5fd5ec0c3]: S. 21 in force at 21.3.2012 by S.I. 2012/873, art. 2(a)(v)
[^key-afab581efade8e0823522043b1a1488e]: S. 22 in force at 21.3.2012 by S.I. 2012/873, art. 2(a)(v)
[^key-0c7c5696d3ffa04b96202563bad44c00]: S. 30 in force at 21.3.2012 by S.I. 2012/873, art. 2(a)(vi)
[^key-fe7130c536c633541e08ddc226ed03db]: S. 31 in force at 21.3.2012 by S.I. 2012/873, art. 2(a)(vii)
[^key-9c50d44c189fc7c5b70539b0f5e66364]: S. 32 in force at 21.3.2012 by S.I. 2012/873, art. 2(a)(viii)
[^key-fec59458bdba886f77fa1c4332e3cc9f]: S. 33 in force at 21.3.2012 by S.I. 2012/873, art. 2(a)(ix)
[^key-1634dd3ddae7c8047209a76d52ca121c]: S. 34 in force at 21.3.2012 by S.I. 2012/873, art. 2(a)(x)
[^key-3a491d2baacbfbec9bca6f905af3e121]: S. 35(1)-(5) (7) in force at 21.3.2012 by S.I. 2012/873, art. 2(a)(xi)
[^key-83a72c084eb901857dec989ae6187189]: S. 36 in force at 21.3.2012 by S.I. 2012/873, art. 2(a)(xii)
[^key-6824516d6eebdd48dd386fb7b5854546]: S. 38 in force at 21.3.2012 by S.I. 2012/873, art. 2(a)(xiii)
[^key-a85ed2e6296f7a59a5738f74eed8a78c]: S. 39 in force at 21.3.2012 by S.I. 2012/873, art. 2(a)(xiv)
[^key-40cd3c59f09d783114548b919cda30be]: S. 40 in force at 21.3.2012 by S.I. 2012/873, art. 2(a)(xv)
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