PART 2Electricity Market Reform

CHAPTER 6Access to markets etc

Power purchase agreement scheme

51Power purchase agreement scheme: regulations

1

The Secretary of State may by regulations make provision, in connection with any modifications made under section 50, for or in connection with a power purchase agreement scheme.

2

Any such regulations may in particular—

a

make provision for apportioning amongst licensed suppliers, or any of them, all or any part of the value of any or all of the costs or benefits of any licensed supplier in connection with the scheme;

b

confer functions on the Secretary of State or the Authority (which may include provision for directions to be given to the Authority by the Secretary of State);

c

make provision for the delegation of functions conferred on the Secretary of State or the Authority by the regulations or by virtue of section 50;

d

include provision for obligations imposed by the regulations on licensed suppliers to be enforceable by the Authority as if they were relevant requirements on a regulated person for the purposes of section 25 of EA 1989;

e

make provision about the provision of information in connection with the scheme.

3

Provision that may be included in regulations under this section by virtue of subsection (2)(a) includes, in particular, provision—

a

for requiring licensed suppliers to pay a levy to the Authority at specified times;

b

specifying how such a levy is to be calculated;

c

conferring an entitlement on a licensed supplier to receive a payment from the Authority.

4

Provision which may be included in regulations by virtue of subsection (3) includes provision for the Secretary of State or the Authority to determine what is to be taken into account as a cost or benefit of any licensed supplier in connection with the scheme and its value.

5

Regulations under this section may—

a

include incidental, supplementary and consequential provision;

b

make transitory or transitional provision or savings;

c

make different provision for different cases or circumstances or for different purposes;

d

make provision subject to exceptions.

6

Before making any regulations under this section, the Secretary of State must consult—

a

licensed suppliers,

b

the Authority, and

c

such other persons as the Secretary of State considers it appropriate to consult.

7

Subsection (6) may be satisfied by consultation before, as well as by consultation after, the passing of this Act.

8

Regulations under this section must be made by statutory instrument.

9

An instrument containing regulations under this section is subject to annulment in pursuance of a resolution of either House of Parliament.