Environment Act 1995

38 (1) Section 3 of the [1989 c. 15.] Electricity Act 1989 (general duties of the Secretary of State and the Director General of Electricity Supply when exercising certain functions) shall be amended in accordance with the following provisions of this paragraph.

(2) In subsection (1)(c) (duty, subject to subsection (2), to promote competition), for the words “subsection (2)” there shall be substituted the words “subsections (2) and (2A)”.

(3) After subsection (2) (duties as regards the supply of electricity in Scotland in certain cases) there shall be inserted—

“(2A) If an order under section 32(1) below requires a public electricity supplier to make, or produce evidence showing that he has made, arrangements or additional arrangements which will secure the result mentioned in subsection (2B) below, the order, so far as relating to any such requirement, may be made for the purpose of, or for purposes which include, promoting the supply to any premises of—

(a) heat produced in association with electricity, or

(b) steam produced from, or air or water heated by, such heat.

(2B) The result referred to in subsection (2A) above is that, for a period specified in the order, there will be available to the public electricity supplier—

(a) from combined heat and power stations; or

(b) from combined heat and power stations of any particular description,

an aggregate amount of generating capacity which is not less than that specified in relation to him in the order.

(2C) In subsection (2B) above, “combined heat and power station” has the meaning given by section 32(8) below.”.

(4) In subsection (3) (further duties), for the words “and (2)” there shall be substituted the words “, (2) and (2A)”.