41A Promotion of the efficient use by consumers of electricity.

1

The Secretary of State may by order impose—

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 energy efficiency target to be determined by the Authority under the order for that distributor or supplier (and that obligation is referred to in this section as an “energy efficiency obligation”).

2

In this section “energy efficiency target” means a target for the promotion of improvements in 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.

3

An order under this section may specify criteria by reference to which the Authority is to determine energy efficiency targets for the electricity distributors or electricity suppliers on whom obligations are imposed by the order.

4

The Secretary of State and the Authority shall carry out their respective functions under this section in the manner he or it considers is best calculated to ensure that no electricity distributor is unduly disadvantaged in competing with other electricity distributors and no electricity supplier is unduly disadvantaged in competing with other electricity suppliers.

5

The order may make provision generally in relation to the energy efficiency obligations which it imposes, including in particular provision—

a

as to the treatment of persons who become 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 an energy efficiency target;

c

as to the method by which improvements in energy efficiency attributable to any qualifying action are to be assessed;

d

requiring distributors and suppliers to give to the Authority specified information, or information of a specified nature, about their proposals for complying with their energy efficiency obligations;

e

requiring the Authority to determine—

i

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

ii

if so, what improvement in energy efficiency is to be attributed for that purpose to the proposed action or to any result of that action specified in the determination; and

f

requiring distributors or suppliers to produce to the Authority evidence of a specified kind demonstrating that they have complied with their energy efficiency obligations.

6

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

a

his proposals for complying with his energy efficiency 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 energy efficiency target may be altered during the period to which the order relates;

b

the whole or any part of a person’s energy efficiency 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 energy efficiency target may be transferred to another 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 energy efficiency target for the period to which the order relates to a subsequent period.

8

The order may—

a

provide for exceptions from any requirement of the order;

b

provide that any specified requirement contained in it is to be treated as a relevant requirement for the purposes of this Part;

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 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.

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.

11

Before making an order under this section the Secretary of State shall consult the Authority, the Council, 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.