Energy Act 2010
The Secretary of State may provide financial assistance in respect of CCS demonstration projects.
If relevant financial assistance is provided in respect of a CCS demonstration project, the Secretary of State may provide financial assistance in respect of additional CCS use at the demonstration station.
The Secretary of State may make a scheme specifying— for the purpose of enabling the administrator to provide the person or persons with financial assistance in respect of the project.
a CCS demonstration project, and
the person or persons carrying out the project,
If relevant financial assistance is provided in respect of a CCS demonstration project, the Secretary of State may make a scheme specifying— for the purpose of enabling the administrator to provide the person or persons with financial assistance in respect of the additional CCS use.
additional CCS use at the demonstration station, and
the person or persons carrying out the additional CCS use,
In this section “relevant financial assistance” means assistance provided—
by the Secretary of State, or
by the administrator under an assistance scheme.
An assistance scheme may, in particular—
make provision about any of the matters specified in subsection (2), and
impose obligations or confer functions on a person (including the Secretary of State).
These are the matters referred to in subsection (1)(a)—
what is to be carried out as part of the assisted activities;
financial assistance to be given in respect of assisted activities, including determination of the amount of financial assistance to be given, or to be given at a particular time, by reference to particular matters;
administration of the scheme;
safety and other standards applicable to assisted activities;
measurement and assessment of progress made in carrying out assisted activities;
postponement, reduction or withdrawal of financial assistance to be given, and repayment of financial assistance given, in respect of assisted activities, including postponement, reduction, withdrawal and repayment on account of financial assistance given in respect of assisted activities from other sources;
payments to the administrator by participants in assisted activities;
disclosure of knowledge obtained in, or relating to, assisted activities, including its disclosure to third parties;
audit of information (whether by the administrator or a third party), including requirements for audits to be paid for by the person whose information is subject to audit;
provision of information, including its provision to third parties;
changes to what is to be carried out as part of the assisted activities;
changes to the persons who are the participants in relation to assisted activities;
termination of the scheme;
compliance with the scheme, except imposition of penalties for non-compliance;
reviews and appeals.
The Secretary of State may amend or revoke an assistance scheme.
Before making, amending or revoking an assistance scheme, the Secretary of State must consult the following persons—
the administrator;
the Scottish Ministers, but only if the assisted activities are in Scotland;
such other persons as the Secretary of State thinks it is appropriate to consult.
If the Secretary of State makes or amends an assistance scheme, the Secretary of State must lay before Parliament the scheme as made or amended.
If the Secretary of State revokes an assistance scheme, the Secretary of State must lay before Parliament a memorandum of revocation of the scheme.
The power under section 1(3) or (4) or under subsection (3) of this section may not be exercised—
to make a scheme unless all persons who would, by the exercise of the power, be participants consent to the exercise of the power;
to amend a scheme unless—
the scheme allows for the exercise of the power,
regulations under section 3 allow for the exercise of the power, or
all relevant persons consent to the exercise of the power;
to revoke a scheme unless—
the scheme allows for the exercise of the power,
regulations under section 3 allow for the exercise of the power, or
all persons who are participants consent to the exercise of the power.
For the purposes of subsection (7)(b)(iii) each of the following is a relevant person in relation to a scheme that is to be amended—
each person who is a participant in relation to the scheme (including a person who would cease to be a participant by the exercise of the power);
a person who would, by the exercise of the power, be a participant in relation to the scheme.
The Secretary of State may, by regulations, make provision about assistance schemes.
Regulations under this section may, in particular— but the regulations may not create criminal offences.
make provision about any of the matters specified in section 2(2); and
despite the exception in section 2(2)(n), impose penalties (whether financial or not) in respect of failures to comply with the scheme;
Regulations under this section may not apply to an assistance scheme that is in existence at the time the regulations are made, except with the consent of each person who is, at that time, a participant in relation to that scheme.
Before making regulations under this section, the Secretary of State must consult the following persons—
the administrator;
the Scottish Ministers;
such other persons as the Secretary of State thinks it is appropriate to consult.
Subsection (4) may be satisfied by consultation before, as well as by consultation after, this section comes into force.
The following are subject to regulations under this section—
assistance schemes;
section 1(3) and (4);
section 2.
The Secretary of State may by regulations provide for an electricity supply levy to be charged in connection with provision of financial assistance—
in respect of CCS demonstration projects, and
in respect of additional CCS use at demonstration stations.
An electricity supply levy is a levy—
charged in respect of supplies of electricity that have been, or are expected to be, made, and
paid by the persons who make, or are expected to make, the supplies in respect of which the levy is charged.
The regulations may provide for different rates or different amounts of levy to be charged in different cases.
The regulations may secure that the levy is not to be charged in respect of particular descriptions of supplies of electricity.
The regulations may, in particular, make provision about any of the following matters—
what is a supply of electricity for the purposes of the levy;
when a supply of electricity is, or is expected to be, made for those purposes;
who makes, or is expected to make, a supply of electricity for those purposes;
payment of the levy, including interest in respect of late payment;
administration of the levy;
audit of information (whether by the administrator or a third party), including requirements for audits to be paid for by the person whose information is subject to audit;
provision of information, including its provision to third parties;
enforcement of the levy, including— but not including the creation of criminal offences;
imposition of penalties (whether financial or not, and whether or not in addition to interest charged in respect of late payment), and
recovery of the levy as a debt due to the Crown,
insolvency of persons liable to pay the levy;
reviews and appeals.
Before making regulations under this section, the Secretary of State must consult the following persons—
the administrator;
such other persons as the Secretary of State thinks it is appropriate to consult.
Subsection (6) may be satisfied by consultation before, as well as by consultation after, this section comes into force.
The Secretary of State must, for each reporting period, prepare a report on progress during the reporting period—
in decarbonising electricity generation in Great Britain (covering separately generation by coal-fired generating stations), and
in the development and use of carbon capture and storage technology in Great Britain.
Each of the first three reports under subsection (1) must include an assessment by the Secretary of State—
of whether use of carbon capture and storage technology in generation of electricity on a commercial scale has been, or when it will be, successfully demonstrated;
of whether coal-fired generating stations for which appropriate consent is given on or after 1st January 2020 that are built in Great Britain can be expected to be constructed so as to enable use of carbon capture and storage technology on all their generating capacity.
A report under subsection (1) must also include a review of whether, having regard to the other matters contained in the report, any government policies should be revised and, if so, why.
In preparing a report under subsection (1), the Secretary of State must—
consult the Scottish Ministers and the Welsh Ministers;
take into account any relevant points raised by reports by the Committee on Climate Change under section 36 of the Climate Change Act 2008 (reports on progress).
The Secretary of State must, within 1 year after the end of a reporting period, lay before Parliament a document containing the report under subsection (1) for that period.
In this section—
“appropriate consent” means consent under section 36 of the Electricity Act 1989 or section 114(1)(a) of the Planning Act 2008;
“coal-fired generating station” means an electricity generating station powered wholly or mainly by coal;
“CCS demonstration project” has the meaning given in section 7;
“administrator” means the person who is the administrator by virtue of section 6;
the period beginning with the passing of this Act and ending with 2011;
the 3 year period beginning with 2012 and each subsequent 3 year period;
The Authority is the administrator for the purposes of this Part.
But the Secretary of State may, by regulations, make provision for a public body to become the administrator (whether in place of the Authority or a person who is administrator by virtue of previous regulations under this section).
Before making regulations under this section, the Secretary of State must consult the following persons—
the person who would cease to be administrator by virtue of the regulations;
such other persons as the Secretary of State thinks it is appropriate to consult.
In this section “public body” includes the Secretary of State.
In this Part, “CCS demonstration project” means—
a project to demonstrate and assess carbon capture and storage technology through its use in commercial electricity generation, or
a project to prepare for, or assess the feasibility of, a project falling within paragraph (a) of this definition.
In this Part, “additional CCS use” means—
the use of carbon capture and storage technology in commercial electricity generation (including bringing the technology into such use), apart from such use in a CCS demonstration project, or
activities to prepare for, or assess the feasibility of, use of carbon capture and storage technology falling within paragraph (a) of this definition.
In this Part, “carbon capture and storage technology” means technology for doing, or contributing to the doing of, any of the following things—
capturing carbon dioxide that has been produced by, or in connection with, commercial electricity generation;
transporting such carbon dioxide that has been captured;
disposing of such carbon dioxide that has been captured, by way of permanent storage.
For the purposes of this section—
In this Part—
“assisted activities”, in relation to an assistance scheme, means the CCS demonstration project or additional CCS use specified in an assistance scheme;
“carbon capture and storage technology” has the meaning given in section 7;
The Secretary of State may by regulations make one or more schemes for the purpose of reducing fuel poverty.
A scheme under this section (“a support scheme”) must make provision requiring benefits to be provided by licensed suppliers to whom the scheme applies.
A scheme must provide for the benefits provided under it, taken as a whole, to be provided wholly or mainly to customers determined by or in accordance with the scheme.
A support scheme may apply to— and, in any of those cases, may apply to such suppliers of any description, including any description specified by reference to supplies, whether of gas or electricity, or both, and whether made by the suppliers or by them and associated persons.
licensed gas suppliers,
licensed electricity suppliers, or
both licensed gas suppliers and licensed electricity suppliers,
A support scheme may in particular provide for scheme customers to be determined in any of the following ways—
by reference to membership of, or to family or other relationship to a member of, a fuel poverty risk group;
by scheme suppliers;
by, or by reference to evidence provided by, the Secretary of State (or a person providing services to the Secretary of State).
Provision included in a support scheme by virtue of subsection (5)(b) may specify requirements about criteria to be applied in determining who are to be scheme customers.
A support scheme may specify—
the form of benefits and ways in which they are to be provided under the scheme;
the amounts of any benefits to be so provided.
Subsection (7)(a) includes, in particular, power to provide for—
payments to be made to or in respect of scheme customers;
charges for supplies of gas or electricity to scheme customers to be lower than charges for comparable supplies to other customers;
benefits to be provided in the form of goods or services.
Subsection (7)(b) includes, in particular, power for a support scheme to make provision—
as to the aggregate amount of benefits to be provided under it (or any part of it) by scheme suppliers, or any scheme supplier, in any period specified in the scheme;
as to the amount of any benefit to be provided under it to any scheme customer;
as to how any amount is to be determined for the purposes of the scheme, including, in particular, provision—
for determining the amount of any benefit provided under the scheme;
for any determination to be made by a scheme supplier;
for any amount of a benefit or benefits to be provided under the scheme to be determined by reference to the amount of any benefit or benefits provided or to be provided under any other support scheme;
for payments by a scheme supplier to be treated as amounts of benefits provided under the scheme;
for amounts of benefits provided by a scheme supplier under the scheme to be adjusted by reference to payments made or received, or to be made or received, by the scheme supplier under a relevant reconciliation mechanism;
for benefits provided under the scheme in any period specified in the scheme to be treated as having been provided in any other period so specified.
Payments by a scheme supplier within subsection (9)(c)(iv) include, in particular—
the whole, or any part specified in the scheme, of payments in respect of costs incurred for the purposes of determining scheme customers (including to the Secretary of State or the Authority under a requirement imposed under section 10(3));
payments under pre-existing arrangements.
In this section, “relevant reconciliation mechanism”, in relation to a support scheme, means a reconciliation mechanism operated in relation to the scheme (or any part of it) under section 11.
A support scheme may make provision about arrangements to be made by scheme suppliers to ensure that, so far as practicable, scheme customers receive the benefits to be provided under the scheme, which may in particular include provision about—
arrangements for enabling scheme suppliers to identify scheme customers;
arrangements for drawing to the attention of scheme customers—
the fact that benefits are available under the scheme, and
ways of applying for those benefits;
arrangements for paying or otherwise providing the benefits.
A support scheme may include provision for prohibiting scheme suppliers from discriminating against scheme customers or persons who, if they were customers of scheme suppliers, would be scheme customers.
A support scheme—
may require scheme suppliers to make payments to the Secretary of State or the Authority in respect of costs which either of them incurs for the purposes of the provision of evidence as mentioned in section 9(5)(c) for the purposes of the scheme, and
must make provision for the payment into the Consolidated Fund of any sums so received.
Without prejudice to section 31(5), a support scheme may in particular—
provide for different criteria to be applied for the purpose of identifying scheme customers of different scheme suppliers;
provide for different benefits, or different amounts of benefits, to be provided by different scheme suppliers or to different scheme customers;
impose requirements in relation to scheme suppliers by reference to pre-existing arrangements.
A support scheme may make provision for requiring scheme suppliers to provide to the Authority such information as the Authority may require for the purpose of carrying out its functions in relation to the scheme.
A support scheme may provide that, in such cases or circumstances as may be specified in the scheme, the Secretary of State may determine that any requirement of the scheme— and the support scheme may provide for any such determination to be made subject to such conditions or limitations as the Secretary of State thinks appropriate.
is not to apply, or
is to apply subject to modifications,
If the Secretary of State makes, amends or revokes, a determination in accordance with provision included in a support scheme by virtue of subsection (6), the Secretary of State must lay before Parliament a memorandum of the determination, amendment or revocation.
The Secretary of State may by regulations make provision for the establishment and operation of a reconciliation mechanism.
In this section and section 12, “reconciliation mechanism” means arrangements for securing that, after adjustment under the arrangements, the amounts of benefits provided by scheme suppliers under a support scheme or schemes (or part of a support scheme) correspond, so far as reasonably practicable, to an equitable distribution between the scheme suppliers in question of the aggregate amount of benefits provided under the scheme or schemes (or that part of a scheme).
Regulations under subsection (1) may—
require scheme suppliers in relation to whom a reconciliation mechanism applies to make payments to the person operating the mechanism (“the operator”) or to another scheme supplier in relation to whom it applies;
confer on scheme suppliers in relation to whom a reconciliation mechanism applies entitlements to receive payments from the operator or from another scheme supplier in relation to whom it applies;
make provision— for the purposes of the mechanism.
as to how the amount of any benefits provided under a support scheme is to be determined, and
as to what constitutes an equitable distribution (as mentioned in subsection (2)),
Regulations which provide for the amounts of any payments mentioned in subsection (3)(a) or (b) to be determined by the operator must, if the operator is not the Authority, include provision for appeals by scheme suppliers against any such determinations.
Without prejudice to section 31(6), regulations under subsection (1) may confer functions on the Authority, and may, in particular, provide for the Authority to be the operator.
Regulations under subsection (1) may make provision for requiring scheme suppliers in relation to whom a reconciliation mechanism applies to provide to the Authority or the operator such information as the Authority or, as the case may be, the operator may require for the purpose of carrying out its functions in relation to the mechanism.
The Secretary of State may, for the purpose of enabling or facilitating the establishment or operation of a reconciliation mechanism, modify—
a condition of a particular licence under section 6(1)(b) or (d) of the Electricity Act 1989 (transmission licences and supply licences);
the standard conditions incorporated in licences under those provisions by virtue of section 8A of that Act;
a document maintained in accordance with the conditions of licences under section 6(1) of that Act, or an agreement that gives effect to a document so maintained.
Provision included by virtue of the power in subsection (1) in licences, or in a document or agreement relating to licences, need not relate to the activities authorised by the licences.
Without prejudice to section 33(4), provision included by virtue of that power in a document or agreement relating to licences may make different provision for different cases.
Before making a modification under this section, the Secretary of State must consult—
holders of any licence being modified,
the Authority, and
such other persons as the Secretary of State thinks it is appropriate to consult.
The Authority must keep under review—
the operation of any support scheme, and
licensed suppliers’ compliance with it.
Before making regulations under section 9, 11 or 15, the Secretary of State must consult—
the Authority,
in the case of a support scheme that applies to licensed gas suppliers, or a reconciliation mechanism that applies in relation to them, licensed gas suppliers,
in the case of a support scheme that applies to licensed electricity suppliers, or a reconciliation mechanism that applies in relation to them, licensed electricity suppliers, and
such other persons as the Secretary of State thinks it is appropriate to consult.
Subsection (1) may be satisfied by consultation before, as well as by consultation after, this section comes into force.
The Secretary of State may not make regulations under section 9 except with the consent of the Treasury.
A support scheme—
must contain provision specifying a period (“the scheme period”) at the end of which the scheme is to cease to have effect, and
may provide for the Secretary of State to review the scheme, or any part of it—
after such period, or at such intervals, as may be specified in or determined in accordance with the scheme, or
when the Secretary of State is satisfied that one or more conditions specified in the scheme is satisfied.
Where a support scheme (“the current scheme”) has effect, no regulations may be made under section 9 to— except following a review of the current scheme conducted in accordance with provision made under subsection (4)(b).
amend or revoke the current scheme, or
make another support scheme that applies to any of the scheme suppliers to which the current scheme applies,
Nothing in subsection (5) is to be taken to prevent a support scheme or any part of it being renewed at the end of the scheme period by regulations under section 9 which provide for it to have effect for a further scheme period.
For the purposes of this Part, fuel poverty is reduced if—
the number of people living in fuel poverty is reduced, or
the extent to which any person is living in fuel poverty is reduced.
For the purposes of this Part—
a person is living in fuel poverty if the person is a member of a household living on a lower income in a home which cannot be kept warm at reasonable cost, and
the extent to which a person is living in fuel poverty is reduced if the difference between the cost of keeping the person’s home warm and what would be a reasonable cost for doing so is reduced.
The Secretary of State may by regulations make provision about—
what is to be regarded as living in fuel poverty for the purposes of this Part;
what is to be regarded as a reduction in the extent to which a person is living in fuel poverty for the purposes of this Part.
Provision made under subsection (3) may, in particular—
specify what is to be regarded for the purposes of subsection (2)(a) as a lower income, or a reasonable cost, or the circumstances in which a home is to be regarded for those purposes as being warm;
amend this section.
In this Part—
“licensed gas supplier” means the holder of a licence under section 7A(1) of the Gas Act 1986;
“licensed supplier” means a licensed electricity supplier or licensed gas supplier;
“pre-existing arrangements”, in relation to a scheme supplier, means arrangements made by the supplier before the commencement of section 9 with a view to reducing fuel poverty;