Part 7Market reform and consumer protection
Reduction targets: carbon emissions and home-heating costs
I1214Payment as alternative to complying with certain energy company obligations
1
In section 33BC of the Gas Act 1986 (promotion of reductions in carbon emissions: gas transporters and gas suppliers), after subsection (7B) insert—
7C
The order may make provision as to circumstances in which a transporter or supplier may meet the whole or any part of a carbon emissions reduction target by making a buy-out payment.
7D
In this section, “buy-out payment” means a payment—
a
of an amount (“the buy-out price”) determined by the Secretary of State,
b
to a person approved by the Administrator (an “approved person”),
c
for a purpose approved by the Administrator (an “approved purpose”).
7E
Provision made by virtue of subsection (7C) may include provision about the determination by the Secretary of State of the buy-out price, including provision—
a
enabling the Secretary of State to set different buy-out prices—
i
for different parts of the period to which the order relates;
ii
for different cases (including different buy-out prices for different transporters or suppliers);
b
requiring the Secretary of State to publish the buy-out price.
7F
If the order makes provision by virtue of subsection (7C), the order may also make provision—
a
as to the procedure to be followed by the Administrator in approving a person as an approved person or a purpose as an approved purpose;
b
specifying criteria by reference to which the Administrator is to determine whether to approve a person or purpose.
7G
Provision made by virtue of subsection (7C) may include further provision about buy-out payments, including in particular provision—
a
as to the procedure to be followed by a transporter or supplier who proposes to make a buy-out payment, including provision—
i
requiring a transporter or supplier to notify the Administrator of specified matters by a specified time;
ii
as to circumstances in which a transporter or supplier must make the buy-out payment to which notification given to the Administrator relates;
iii
about the process for seeking approval of a person as an approved person, or of a purpose as an approved purpose;
b
preventing a transporter or supplier from treating a buy-out payment as a payment pursuant to any other obligation (whether statutory or contractual), or vice versa;
c
setting out circumstances in which a requirement imposed on a transporter or supplier by provision made by virtue of subsection (5)(ba) or (bb) may be—
i
met, in whole or in part, by the making of a buy-out payment;
ii
varied as a result of a buy-out payment;
d
about the effect of provision included in the order by virtue of subsection (7)(c) to (e) on a person’s ability to meet the whole or any part of a carbon emissions reduction target by making a buy-out payment.
7H
Where an order includes provision for the making of a buy-out payment, the references in subsections (5)(be) and (7)(b) to action include a reference to the making of a buy-out payment.
2
In section 33BCA of the Gas Act 1986 (Scottish Ministers’ promotion of reductions in carbon emissions: gas suppliers)—
a
in subsection (3)—
ii
after paragraph (c) insert—
ca
in subsection (7F), for “order makes” is substituted
“Secretary of State has made”;cb
in subsection (7G), for “(7C)” is substituted
“(7F)”;cc
in subsection (7H), for “an order includes” is substituted
“the Secretary of State has made”;
3
In section 33BDA of the Gas Act 1986 (Scottish Ministers’ promotion of reductions in home-heating costs: gas suppliers)—
4
In section 41A of the Electricity Act 1989 (promotion of reductions in carbon emissions: electricity distributors and electricity suppliers), after subsection (7B) insert—
7C
The order may make provision as to circumstances in which a distributor or supplier may meet the whole or any part of a carbon emissions reduction target by making a buy-out payment.
7D
In this section, “buy-out payment” means a payment—
a
of an amount (“the buy-out price”) determined by the Secretary of State,
b
to a person approved by the Administrator (an “approved person”),
c
for a purpose approved by the Administrator (an “approved purpose”).
7E
Provision made by virtue of subsection (7C) may include provision about the determination by the Secretary of State of the buy-out price, including provision—
a
enabling the Secretary of State to set different buy-out prices—
i
for different parts of the period to which the order relates;
ii
for different cases (including different buy-out prices for different distributors or suppliers);
b
requiring the Secretary of State to publish the buy-out price.
7F
If the order makes provision by virtue of subsection (7C), the order may also make provision—
a
as to the procedure to be followed by the Administrator in approving a person as an approved person or a purpose as an approved purpose;
b
specifying criteria by reference to which the Administrator is to determine whether to approve a person or purpose.
7G
Provision made by virtue of subsection (7C) may include further provision about buy-out payments, including in particular provision—
a
as to the procedure to be followed by a distributor or supplier who proposes to make a buy-out payment, including provision—
i
requiring a distributor or supplier to notify the Administrator of specified matters by a specified time;
ii
as to circumstances in which a distributor or supplier must make the buy-out payment to which notification given to the Administrator relates;
iii
about the process for seeking approval of a person as an approved person, or of a purpose as an approved purpose;
b
preventing a distributor or supplier from treating a buy-out payment as a payment pursuant to any other obligation (whether statutory or contractual), or vice versa;
c
setting out circumstances in which a requirement imposed on a distributor or supplier by provision made by virtue of subsection (5)(ba) or (bb) may be—
i
met, in whole or in part, by the making of a buy-out payment;
ii
varied as a result of a buy-out payment;
d
about the effect of provision included in the order by virtue of subsection (7)(c) to (e) on a person’s ability to meet the whole or any part of a carbon emissions reduction target by making a buy-out payment.
7H
Where an order includes provision for the making of a buy-out payment, the references in subsections (5)(be) and (7)(b) to action include a reference to the making of a buy-out payment.
5
In section 41AA of the Electricity Act 1989 (Scottish Ministers’ promotion of reductions in carbon emissions: electricity suppliers)—
a
in subsection (3)—
ii
after paragraph (c) insert—
ca
in subsection (7F), for “order makes” is substituted
“Secretary of State has made”;cb
in subsection (7G), for “(7C)” is substituted
“(7F)”;cc
in subsection (7H), for “an order includes” is substituted
“the Secretary of State has made”;
iii
in paragraph (g), after “place” insert “other than in subsection (7D)(a)”
;
6
In subsection 41BA of the Electricity Act 1989 (Scottish Ministers’ promotion of reductions in home-heating costs: electricity suppliers)—