Clause 36
Energy Bill
9:00 am
David Amess (Southend West, Conservative)
I remind the Committee that, with we are taking the following: New clause 6—Feed-in tariffs
‘(1) The Secretary of State may by regulations make provision to introduce feed-in tariffs for renewable micro-generation and decentralised energy.
(2) In this section—
“feed-in tariffs” means a requirement on utilities to buy electricity from renewable sources at a feed-in rate to be set by the Secretary of State, dependent on available renewable technology;
“micro-generation” means any generation under 250kW;
“renewable energy” means any form of energy produced in the generation stage without using fossil fuels or emitting carbon;
“a feed-in rate” means a guaranteed payment by the energy suppliers for each kilowatt of electricity generated.’.
New clause 8—Feed-in tariffs (No. 2)
‘(1) The Secretary of State may make regulations for the purposes of requiring designated electricity suppliers to purchase the electricity generated from renewable sources by small-scale generators (“feed-in tariffs”).
(2) For the purposes of subsection (1)—
(a) “small-scale generators” are persons generating electricity below a level to be determined by the Secretary of State following consultation,
(b) “renewable sources” are such energy sources as may be determined by the Secretary of State following consultation,
(c) “designated electricity suppliers” are those persons licensed by the Secretary of State to supply electricity as set out in section 6 of the Electricity Act 1989.
(3) The Secretary of State must consult for the purposes of determining the appropriate form of regulations as set out in subsection (5) below and must—
(a) commence such consultation within a period of six months of the day on which this Act is passed,
(b) determine a reasonable period of consultation,
(c) consult with—
(i) designated electricity suppliers,
(ii) the National Consumer Council (incorporating energywatch),
(iii) the Gas and Electricity Markets Authority (“GEMA”),
(iv) the National Grid,
(v) such generators of electricity from renewable sources as he considers appropriate,
(vi) such environmental organisations as he considers appropriate, and
(vii) such other persons as he considers appropriate.
(4) The Secretary of State shall, within six months after the end of such consultation, make regulations for the purpose of bringing into effect feed-in tariffs pursuant to subsection (1), in such manner as the Secretary of State shall consider appropriate.
(5) The regulations mentioned in subsection (4) above must—
(a) define the renewable sources in respect of which feed-in tariffs shall apply,
(b) define the maximum level of electricity generation in respect of which feed-in tariffs shall be available, as referred to in subsection (2)(a) above,
(c) define which persons generating electricity from renewable sources shall be eligible for feed-in tariffs,
(d) prescribe the means by which tariffs applicable under feed-in tariffs are to be calculated and, where necessary, amended,
(e) prescribe, where appropriate, the terms and duration of the feed-in tariff arrangements,
(f) make provision for the payment and incidence of the costs of connection of relevant small-scale generators to the National Grid,
(g) make provision for the regulation of feed-in tariff arrangements by a designated body,
(h) make provision for the Secretary of State to report periodically on the effectiveness of the regulations made under subsection (1) in achieving their objectives,
(i) provide for the making of any necessary amendments to distribution licences or supply licences held by any person, and
(j) make such changes as may be necessary to existing legislation, including that providing for the Renewables Obligation Order.’
New clause 14—Tariffs for renewable energy
‘(1) The Secretary of State may by order impose on each energy supplier falling within a specified description (a “designated energy supplier”) an obligation to reimburse producers of renewable energy falling within a specified description (a “renewable energy producer”) for each unit of renewable energy produced as set out in subsection (4) (and that reimbursement rate is referred to in this section as a “renewable energy tariff”).
(2) The descriptions of energy supplier upon which an order may impose the renewable energy tariff are those supplying electricity or gas—
(a) in Great Britain;
(b) in England and Wales; or
(c) in Scotland,
excluding such categories of supplier as are specified.
(3) In this section—
“renewable source” has the same meaning as in the Utilities Act 2000 (c. 27);
“renewable energy” means energy from renewable sources;
“renewables obligation” means the obligation specified in section 32 of the Electricity Act 1989 (c. 29);
“specified” means specified in the order.
(4) The renewable energy tariff shall set the reimbursement level for each kilowatt hour of energy produced by the renewable source and may—
(a) be set at different levels for different types of renewable source,
(b) be varied at different times as prescribed in the order or in successive orders.
(5) The order shall set out—
(a) the renewable sources in respect of which renewable energy tariffs shall apply,
(b) the tariff applicable to each renewable source,
(c) which installations shall be eligible for renewable energy tariffs, and any provisions to exclude installations accredited under the renewables obligation,
(d) which renewable energy producer shall be eligible to receive renewable energy tariffs,
(e) which designated energy supplier shall be responsible for paying the renewable energy tariff to a particular renewable energy producer,
(f) the terms and duration of the renewable energy tariff arrangements,
(g) how the amount of energy produced and upon which the renewable energy tariff is payable shall be measured, determined or deemed,
(h) provisions for the regulation of renewable energy tariff arrangements by a designated body,
(i) provision for the Secretary of State to report periodically on the effectiveness of the regulations made hereunder,
(j) any necessary amendment to distribution licences or supply licences held by any person, and
(k) such other provisions as may be required for the efficient and cost-effective operation of the renewable energy tariff.
(6) Before making an order, the Secretary of State must consult—
(a) the Authority,
(b) the energy suppliers to whom the proposed order would apply,
(c) representatives of renewable energy producers to whom the proposed order would apply, and
(d) any other persons he considers appropriate.
(7) An order under this section shall not be made unless a draft of the statutory instrument containing it has been laid before, and approved by a resolution of, each House of Parliament.’