Clause 6

Energy Bill – in a Public Bill Committee at 1:45 pm on 21 February 2008.

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Model clauses

Question proposed, That the clause stand part of the Bill.

Photo of Malcolm Wicks Malcolm Wicks Minister of State (Energy), Department for Business, Enterprise & Regulatory Reform

I thought that at this stage the Committee might like me to make a short speech again. The clause makes provision for the Secretary of State to  make regulations that will set out model clauses that could be applied to all licences—that is, standard terms and conditions. Some of our discussion already applies to this clause as well. However, to ensure that the terms and conditions relate to the activities being undertaken, it will be possible to set out different model clauses for different cases, which follow from the general provisions contained in clause 88(2). For instance, it may be appropriate to have a different set of model clauses for offshore gas storage than for the unloading of LNG.

The Secretary of State will also have the power to modify or exclude particular model clauses when granting a particular licence, should the need arise. Furthermore, amended sets of model clauses may be laid down by making further regulations under the clause. Those new model clauses would apply only to licences granted after the amending regulations came into force. Such amendments would, of course, be made only where it was necessary in the light of experience or changed circumstances. We will consult fully on the draft regulations to give interested parties an opportunity to comment on those standard terms and conditions before the regulations are made. Once made, the regulations will be laid before Parliament, and will be subject to annulment for a period of 40 days. To further improve transparency, the model clauses will also be published on the DBERR website.

Question put and agreed to.

Clause 6 ordered to stand part of the Bill.