Clause 9
Energy Bill
2:15 pm
Malcolm Wicks (Minister of State (Energy), Department for Business, Enterprise & Regulatory Reform; Croydon North, Labour)
The purpose of this clause is to provide the Secretary of State with a direction-making power.
I agree with the Liberal Democrat spokesman that the Secretary of State is a pretty busy character in this. Knowing Secretaries of State, they do occasionally delegate. You appreciate the formal use of this term.
It is to provide the Secretary of State with a direction-making power to direct a licence holder to take appropriate steps in the event of a breach of licence conditions. For example, if the licence requires equipment to be maintained to a good standard, a direction may require the equipment to be repaired or replaced. This provision is an important part of the suite of enforcement provisions and enables the Secretary of State to take a lighter-touch approach to remedy the breach before considering criminal proceedings, if he considers such an approach would be appropriate.
Moreover, it may not always be sufficient simply to punish the licence holder for breaching a licence provision. The Secretary of State may wish to direct the licence holder to comply in a way that minimises any damage already caused. Before issuing a direction, the Secretary of State must consult the licence holder. This will provide the licence holder with an opportunity to explain why the breach has occurred. If the licence holder fails to comply with the direction, the Secretary of State will have the power to ensure that the necessary action is taken and to recover the costs with financial interest from the licence holder.
The Secretary of State may also make arrangements for any person to comply with the direction on the licence holder’s behalf. Subsection (9) ensures that this clause does not affect any provision made by the licence itself. For instance, the licence may already include a power of direction in certain circumstances. Again, Mr. Amess, it touches on the importance of regular inspection to see whether things are going badly wrong in this respect, so that these directions can be made.