Part I ELECTRICITY SUPPLY

Consumer protection: standards of performance

F341AF1Promotion of reductions in carbon emissions: F2electricity generators, electricity distributors and electricity suppliers

(1)

The Secretary of State may by order impose—

F4(za)

on each electricity generator (or each electricity generator of a specified description);

(a)

on each electricity distributor (or each electricity distributor of a specified description); and

(b)

on each electricity supplier (or each electricity supplier of a specified description),

an obligation to achieve, within a specified period and in accordance with the order, the F5carbon emissions reduction target to be determined by F6the Administrator under the order for that F7generator, distributor or supplier (and that obligation is referred to in this section as F8a “carbon emissions reduction obligation”).

F9(1A)

The power to make orders under this section may be exercised so as to impose more than one carbon emissions reduction obligation on a person in relation to the same period or to periods that overlap to any extent.

F10(2)

In this section “carbon emissions reduction target” means a target for the promotion of any of the following—

(a)

measures for improving energy efficiency, that is to say, efficiency in the use by consumers of electricity, gas conveyed through pipes or any other source of energy which is specified in the order;

(b)

if the order so provides—

(i)

measures for increasing the amount of electricity generated, or heat produced, by microgeneration;

(ii)

any other measures of a description specified in the order for increasing the amount of electricity generated, or heat produced, using low-emissions sources or technologies;

(iii)

measures for reducing the consumption of such energy as is mentioned in paragraph (a).

F11(2A)

In this section “the Administrator” means—

(a)

the Authority; or

(b)

if the order so provides, the Secretary of State or a specified body other than the Authority.

(3)

An order under this section may specify criteria by reference to which F12the Administrator is to determine F13carbon emissions reduction targets for the F14electricity generators, electricity distributors or electricity suppliers on whom obligations are imposed by the order.

(4)

The Secretary of State and F15(subject to any directions given under subsection (9B)) the Administrator shall carry out their respective functions under this section in the manner he or it considers is best calculated to ensure that F16—

(a)

no electricity generator is unduly disadvantaged in competing with other electricity generators,

(b)

no electricity distributor is unduly disadvantaged in competing with other electricity distributors, and

(c)

no electricity supplier is unduly disadvantaged in competing with other electricity suppliers.

(5)

The order may make provision generally in relation to the F17carbon emissions reduction obligations which it imposes, including in particular provision—

(a)

as to the treatment of persons who become F18electricity generators, electricity distributors or electricity suppliers after the beginning of the period to which the order relates;

(b)

as to the action which qualifies for the purpose of meeting the whole or any part of F19a carbon emissions reduction target;

F20(ba)

requiring part of a carbon emissions reduction target to be met by action of a specified description;

(bb)

requiring the whole or any part of a carbon emissions reduction target to be met by action relating to—

(i)

individuals of a specified description,

(ii)

property of a specified description,

(iii)

specified areas or areas of a specified description, or

(iv)

individuals or property of a specified description in specified areas or areas of a specified description;

(bc)

enabling the Administrator to direct a distributor or supplier to meet part of a carbon emissions reduction target by action relating to an individual named in the direction;

(bd)

preventing action from qualifying for the purpose of meeting the whole or any part of a carbon emissions reduction target unless such persons as are specified in, or determined in accordance with, the order—

(i)

have been consulted about the action;

(ii)

have consented to the action;

(be)

requiring action which qualifies for the purpose of meeting both a carbon emissions reduction target and a home-heating cost reduction target to be treated as qualifying only for the purpose of meeting such one of those targets as the distributor or supplier concerned elects;

(c)

determining, or specifying the method for determining, the contribution that any action makes towards meeting a carbon emissions reduction target;

(d)

requiring F21generators, distributors and suppliers to give to F22the Administrator specified information, or information of a specified nature, about their proposals for complying with their F23carbon emissions reduction obligations;

(e)

requiring F24the Administrator to determine—

(i)

whether any proposed action qualifies for the purpose of achieving the whole or any part of a person’s F25carbon emissions reduction target; and

F26(ii)

if so, what contribution the proposed action (or any result of that action specified in the determination) is to make towards achieving the carbon emissions reduction target;

(f)

requiring F27generators, distributors or suppliers to produce to F28the Administrator evidence of a specified kind demonstrating that they have complied with their F29carbon emissions reduction obligationsF30; and

(g)

requiring the Administrator or a specified body to offer services of a specified kind and authorising a specified fee to be charged to those who take up the offer.

F31(5A)

If the order makes provision by virtue of subsection (5)(bc) enabling the Administrator to direct a distributor or supplier to meet part of a carbon emissions reduction target by action relating to an individual named in the direction the order may also make provision—

(a)

authorising the Administrator to require specified persons to provide it with information for the purpose of enabling it to identify and select individuals who are to be the subject of a direction;

(b)

specifying criteria in accordance with which the Administrator is to select individuals who are to be the subject of a direction;

(c)

determining, or specifying the method for determining, which distributor or supplier is to be given a direction in relation to any particular individual selected in accordance with provision made under paragraph (b);

(d)

authorising the Administrator, if it gives a direction to a distributor or supplier, to provide the distributor or supplier with information relating to the individual concerned for the purpose of assisting the distributor or supplier to comply with the direction;

(e)

as to the times at which a direction may be given;

(f)

as to the circumstances in which a direction need not be complied with.

(5B)

Provision made by virtue of subsection (5)(c) may in particular provide for an action to be treated as making a greater contribution than it would otherwise do if the action relates to—

(a)

an individual of a specified description,

(b)

a property of a specified description, or

(c)

both an individual of a specified description and a property of a specified description.

(6)

The order may make provision authorising the F32the Administrator to require a F33generator, distributor or supplier to provide it with specified information, or information of a specified nature, relating to—

(a)

his proposals for complying with his F34carbon emissions reduction obligation; or

(b)

the question whether he has complied with that obligation.

(7)

The order may make provision as to circumstances in which—

(a)

a person’s F35carbon emissions reduction target may be altered during the period to which the order relates;

(b)

the whole or any part of a person’s F35carbon emissions reduction target may be treated as having been achieved by action taken otherwise than by or on behalf of that person;

(c)

any action taken before the period to which the order relates may be treated as qualifying action taken during that period;

(d)

the whole or any part of a person’s F36carbon emissions reduction target may be transferred to another F37electricity generator, electricity distributor or electricity supplier or to a gas transporter or gas supplier (within the meaning of Part I of the M1Gas Act 1986); or

(e)

a person may carry forward the whole or any part of his F36carbon emissions reduction target for the period to which the order relates to a subsequent period.

F38(7A)

The order may—

(a)

make provision for any specified requirement contained in it to be treated as a relevant requirement for the purposes of this Part; or

(b)

if it provides for the Administrator to be a person other than the Authority, make provision for and in connection with enabling the Administrator to enforce any requirement imposed by the order.

(7B)

Provision made by virtue of paragraph (b) of subsection (7A) may, in particular, include provision corresponding to or applying (with or without modifications) any of sections 25 to 28.

(8)

The order may—

(a)

provide for exceptions from any requirement of the order;

F39(b)

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(c)

make supplementary, incidental and transitional provision; and

(d)

subject to subsection (4), make different provision for different cases (including different provision in relation to different F40generators, distributors or suppliers).

(9)

The order may include provision for treating the promotion of the supply to premises of—

(a)

electricity generated by a generating station which is operated for the purposes of producing heat, or a cooling effect, in association with electricity;

(b)

heat produced in association with electricity or steam produced from (or air or water heated by) such heat;

(c)

any gas or liquid subjected to a cooling effect produced in association with electricity,

as promotion of energy efficiency.

F41(9A)

The order may make provision requiring the Administrator to give guidance to distributors or suppliers concerning such matters relating to the order as are specified.

(9B)

The Administrator shall carry out its functions under this section in accordance with any general or specific directions given to it by the Secretary of State.

(10)

No person shall be required by virtue of this section to provide any information which he could not be compelled to give in evidence in civil proceedings in the High Court or, in Scotland, the Court of Session.

F42(10A)

The Secretary of State must obtain the consent of the Scottish Ministers before making an order under this section which contains provision that—

(a)

is included by virtue of subsection (2)(b),

(b)

extends to Scotland, and

(c)

would be within the legislative competence of the Scottish Parliament if contained in an Act of that Parliament.

(11)

Before making an order under this section the Secretary of State shall consult the Authority, the Council, F43electricity generators, electricity distributors and electricity suppliers and such other persons as he considers appropriate.

(12)

An order under this section shall not be made unless a draft of the instrument containing it has been laid before, and approved by a resolution of, each House of Parliament.

F44(12A)

Subsection (12) does not apply to an order under this section made only for the purpose of amending an earlier order under this section so as to alter the provision included in the earlier order by virtue of any of paragraphs (b), (ba) or (c) of subsection (5). But such an order shall be subject to annulment in pursuance of a resolution of either House of Parliament.

(12B)

If an order under this section provides for the Administrator to be a body other than the Authority, the Secretary of State may make payments to the body of such amounts as the Secretary of State considers appropriate.

F45(13)

In this section—

F46“home-heating cost reduction target” has the meaning given by section 41B(2)(a);

“microgeneration” has the same meaning as in the Climate Change and Sustainable Energy Act 2006;

“plant” includes any equipment, apparatus or appliance.

F47“specified” means specified in the order.

(14)

For the purposes of subsection (2)(b)(ii), electricity is generated, or heat is produced, using low-emissions sources or technologies if it is generated, or produced, by plant which relies wholly or mainly on a source of energy or a technology mentioned in section 26(2) of the Climate Change and Sustainable Energy Act 2006.