Utilities Bill - continued        House of Lords
PART IV, AMENDMENT OF THE ELECTRICITY ACT 1989 - continued
Electricity from renewable sources - continued

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Green certificates.     64. After section 32A of the 1989 Act there is inserted-
 
 
"Green certificates.     32B. - (1) An order under section 32 may provide for the Authority to issue from time to time, in accordance with such criteria (if any) as are specified in the order, a certificate to the operator of a generating station or to an electricity supplier.
 
    (2) A certificate is to certify-
 
 
    (a) that the generating station or, in the case of a certificate issued to an electricity supplier, a generating station specified in the certificate, has generated from renewable sources the amount of electricity stated in the certificate; and
 
    (b) that it has been supplied to customers in Great Britain (or the part of Great Britain stated in the certificate).
      (3) If an electricity supplier produces a certificate to the Authority, it is to count for the purposes of section 32(3) as sufficient evidence of the facts certified."
 
Alternative way of discharging renewables obligation: payments.     65. After section 32B of the 1989 Act there is inserted-
 
 
"Payment as alternative to complying with order under section 32.     32C. - (1) An order under section 32 may provide that instead of producing evidence under section 32(3), an electricity supplier may discharge (in whole or in part) its renewables obligation (or its obligation in relation to a particular period) by making a payment to the Authority.
 
    (2) The order may make provision-
 
 
    (a) as to the sum which for the purposes of subsection (1) is to correspond to the supply of a given amount of electricity;
 
    (b) for different such sums in relation to different periods;
 
    (c) for different such sums in relation to electricity generated in different ways specified in the order (such as those referred to in section 32A(1)(b) and (c)); and
 
    (d) for any such sum to be adjusted from time to time for inflation by a method specified in the order (which may refer to a specified scale or index or to other specified data of any description, including such a scale or index or such data in a form not current when the order was made, but in a subsequent form attributable to revision or any other cause and taking effect afterwards).
      (3) The Authority must pay the amounts received to electricity suppliers in accordance with a system of allocation specified in the order.
 
      (4) The system of allocation specified in the order may provide for payments to specified categories of electricity supplier only."
 
Abolition of fossil fuel levy.     66. Section 33 of the 1989 Act shall cease to have effect.
 
Supplementary.     67. - (1) The Secretary of State may by order made by statutory instrument make such provision as he considers necessary or expedient for the purpose of-
 
 
    (a) providing for section 32 of the 1989 Act to have effect, before its substitution by section 62 of this Act, with modifications specified in the order (but if this power is exercised the modifications must include the omission of subsections (3) and (4) of section 32);
 
    (b) saving orders under section 32 of the 1989 Act made before the coming into force of section 62;
 
    (c) preserving, modifying, replacing or otherwise dealing with arrangements (as mentioned in that section) made pursuant to such an order, including making provision for substituting different parties to the arrangements or for replacement arrangements to be between parties different from those party to the replaced arrangements;
 
    (d) requiring the continued payment of any fossil fuel levy payable by virtue of section 33 of the 1989 Act and providing for payments out of that levy despite the repeal of that section.
      (2) The power in subsection (1)(c) may be exercised both before the coming into force of section 62 and afterwards.
 
      (3) An order under this section may, in particular, provide for section 32 (apart from subsections (3) and (4)) or 33 of the 1989 Act (as they had effect immediately before the coming into force of section 62 or 66) to continue to have effect with modifications specified in the order.
 
      (4) An order under this section may, in particular-
 
 
    (a) provide for what is to happen in relation to the fossil fuel levy and payments out of it if in any month-
 
      (i) the cost referred to in section 33(5)(b) of the 1989 Act is greater than the cost referred to in section 33(5)(a) of the 1989 Act, or
 
      (ii) the same is true in relation to any other corresponding measures referred to in section 33 of the 1989 Act as modified under subsection (3);
 
    (b) provide in such a case for payments of amounts determined in accordance with the order (but not exceeding the difference between the sums referred to in paragraph (a)) to be made by, instead of to, the person to whom payments out of the fossil fuel levy would otherwise have been made.
      (5) An order under this section may provide-
 
 
    (a) that any specified requirement contained in it is to be treated as a relevant requirement for the purposes of Part I of the 1989 Act; and
 
    (b) for one of those requirements to be that a person referred to in paragraph (a) or (b) of subsection (6) is not to act or omit to act as set out there,
       but while subsections (3) and (4) of section 32 of the 1989 Act remain in force an order may not provide for anything which would be an offence under section 32(3) to be treated as a relevant requirement.
 
      (6) The persons, acts and omissions referred to in subsection (4)(b) are-
 
 
    (a) an act or omission by a person subject to requirements contained in the order which prevents any arrangements made pursuant to the order from securing such results as are specified in the order; and
 
    (b) an act or omission by a party to arrangements made pursuant to an order under section 32 of the 1989 Act made before the coming into force of section 62 of this Act (or such arrangements as modified or replaced by virtue of an order under this section) which prevents the arrangements from securing the result mentioned in subsection (2) of that section (or that subsection as modified by virtue of an order under this section), or such corresponding result as is specified in the order.
      (7) An order under this section may make different provision for different areas.
 
      (8) A statutory instrument containing an order under this section shall be subject to annulment in pursuance of a resolution of either House of Parliament.
 
 
Miscellaneous
Modification of licences: electricity trading arrangements.     68. - (1) After section 15 of the Electricity Act 1989 (modification of licences by order under other enactments) there is inserted-
 
 
"Licence modifications relating to new electricity trading arrangements.     15A. - (1) The Secretary of State may, in accordance with this section, modify-
 
    (a) the conditions of a particular licence; or
 
    (b) the standard conditions of licences of any type mentioned in section 6(1),
       where he considers it necessary or expedient to do so for the purpose of implementing, or facilitating the operation of, new arrangements relating to the trading of electricity.
 
      (2) The power to modify licence conditions under paragraph (a) or (b) of subsection (1) includes power-
 
 
    (a) to make modifications relating to the operation of transmission systems and distribution systems; and
 
    (b) to make incidental or consequential, or transitional, modifications.
      (3) Before making modifications under this section the Secretary of State shall consult the holder of any licence being modified and such other persons as he considers appropriate.
 
      (4) Any consultation undertaken by the Secretary of State before the commencement of this section shall be as effective, for the purposes of subsection (3), as if undertaken after that commencement.
 
      (5) Any modification of part of a standard condition of a licence under subsection (1)(a) shall not prevent any other part of the condition from continuing to be regarded as a standard condition for the purposes of this Part.
 
      (6) Where the standard conditions of licences of any type are modified under subsection (1)(b), the Secretary of State shall make (as nearly as may be) the same modifications of the standard conditions for the purposes of their incorporation in licences of that type granted after that time.
 
      (7) The Secretary of State shall publish any modifications under this section in such manner as he considers appropriate.
 
      (8) The power of the Secretary of State under this section may not be exercised after the end of the period of two years beginning with the passing of the Utilities Act 2000."
 
      (2) This section shall come into force on the passing of this Act.
 
Help for disadvantaged groups of electricity customers.     69. After section 43 of the 1989 Act there is inserted-
 
 
"Adjustment of charges to help disadvantaged groups of customers.     43A. - (1) If the Secretary of State considers that members of any group (a "disadvantaged group") of customers of authorised suppliers are treated less favourably than other customers of theirs as respects charges for electricity, he may make an order containing a scheme for the adjustment of charges for electricity with a view to eliminating or reducing the less favourable treatment.
 
    (2) The scheme may include-
 
 
    (a) provision for the adjustment of charges by authorised distributors or authorised transmitters (as well as by suppliers);
 
    (b) in relation to charges payable to suppliers, provision for the adjustment of charges payable by customers who are not members of the disadvantaged group (as well as by persons who are).
      (3) The scheme shall-
 
 
    (a) describe the disadvantaged group;
 
    (b) specify the persons whose charges are covered by the scheme; and
 
    (c) set out the basis of the adjustment of the charges.
      (4) If the scheme does not relate to the whole of Great Britain, it shall specify the area or areas to which it relates.
 
      (5) The scheme may-
 
 
    (a) require authorised suppliers, authorised distributors or authorised transmitters to supply information of any specified description, in any specified form, to any other such persons; and
 
    (b) provide for the modification of the conditions of licences,
       for the purpose of facilitating the implementation of the scheme.
 
      (6) An order shall not be made under this section unless a draft of the statutory instrument containing it has been laid before, and approved by a resolution of, each House of Parliament.
 
Orders: supplementary.     43B. - (1) Before making an order under section 43A, the Secretary of State shall give notice-
 
 
    (a) stating that he proposes to make an order and setting out its effect;
 
    (b) stating the reasons why he proposes to make the order; and
 
    (c) specifying the time (not being less than 28 days from the date of publication of the notice) within which representations or objections with respect to the proposed order may be made,
       and shall consider any representations or objections which are duly made and not withdrawn.
 
      (2) The notice shall be given-
 
 
    (a) by serving a copy of it on the persons whose charges are covered by the proposed order; and
 
    (b) by publishing it in such manner as the Secretary of State considers appropriate for bringing the proposed order to the attention of other persons likely to be affected by it.
      (3) An order under section 43A shall continue in force for such period not exceeding three years as is specified in the order; but that does not prevent the making of another order to come into force at the end of that period.
 
      (4) The Secretary of State may by order require authorised suppliers, authorised distributors or authorised transmitters to supply information of any specified description, in any specified form, to any other such persons for the purpose of enabling the making of an order under section 43A.
 
      (5) The Authority-
 
 
    (a) shall monitor the effect of orders under section 43A and report its findings to the Secretary of State whenever he directs it to do so; and
 
    (b) may require authorised suppliers, authorised distributors or authorised transmitters to supply to the Authority, in any specified form, such information as it requires for carrying out that duty.
      (6) In section 43A references to customers do not include customers of a description excluded by an order made by the Secretary of State.
 
      (7) In this section and section 43A "authorised transmitter" means a person authorised by a licence or exemption to transmit electricity."
 
 
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