(2) In subsection (1)—
(a) for “energy efficiency target” substitute “carbon emissions reduction target”, and
(b) for “an “energy efficiency obligation”” substitute “a “carbon emissions reduction obligation””.
(3) For subsection (2) substitute—
“(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).”
(4) After subsection (10) insert—
“(10A) An order under this section shall not include provision made by virtue of subsection (2)(b) which would be within the legislative competence of the Scottish Parliament if it were contained in an Act of that Parliament.”
(5) After subsection (12), add—
“(13) In this section—
“microgeneration” has the same meaning as in the Climate Change and Sustainable Energy Act 2006;
“plant” includes any equipment, apparatus or appliance.
(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.”
(1) Section 41A of the Electricity Act 1989 (c. 29) (promotion of the efficient use by consumers of electricity) is amended as follows.
(2) In subsection (1)—
(a) for “energy efficiency target” substitute “carbon emissions reduction target”, and
(b) for “an “energy efficiency obligation”” substitute “a “carbon emissions reduction obligation””.
(3) For subsection (2) substitute—
“(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).”
(4) After subsection (10) insert—
“(10A) An order under this section shall not include provision made by virtue of subsection (2)(b) which would be within the legislative competence of the Scottish Parliament if it were contained in an Act of that Parliament.”
(5) After subsection (12), add—
“(13) In this section—
“microgeneration” has the same meaning as in the Climate Change and Sustainable Energy Act 2006;
“plant” includes any equipment, apparatus or appliance.
(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.”
The Schedule (which makes amendments consequential on sections 15 and 16) has effect.
(1) The Secretary of State must, not later than 12 months after this section comes into force, publish a report on the contribution that is capable of being made by dynamic demand technologies to reducing emissions of greenhouse gases in Great Britain.
(2) The report must state the view of the Secretary of State as to whether it is appropriate to take any steps to promote the use of such technologies, and, if it is, what those steps are.
(3) In forming the view mentioned in subsection (2) the Secretary of State must have regard, in particular, to any matters which would prohibit or inhibit the use of any dynamic demand technology in any circumstance in which its use could be expected to make a contribution to reducing emissions of greenhouse gases in Great Britain; and the report must state the matters to which he has had regard.
(4) In this section—
“dynamic demand technology” means any technology which enables—
the consumption of electricity, at a particular time, by a device connected to a network, or
the generation of electricity, at a particular time, by an electricity microgenerating system connected to a network,
to be controlled or adjusted automatically by reference to, or to matters relating to, the frequency of alternating current on the network at that time;
“electricity microgenerating system” has the same meaning as in section 4;
“network” means a distribution system (within the meaning of Part 1 of the Electricity Act 1989 (c. 29)) or a transmission system (within the meaning of that Part).
(1) It shall be the duty of the Secretary of State to take such steps as he considers appropriate to promote community energy projects.
(2) In the exercise of his duty under subsection (1), the Secretary of State shall have regard to the desirability of promoting—
(a) schemes whose purpose or effect is the promotion of community energy projects,
(b) investment by others in such schemes and community energy projects, and
(c) the provision of advice and assistance (whether by public authorities or any other persons) to persons establishing and operating, or proposing to establish and operate, community energy projects.
(3) In this section—
“community energy project” means—
the use of relevant plant for a community purpose,
the installation of relevant plant for use for a community purpose, or
the adaptation of any plant for use as relevant plant for a community purpose;
“community purpose” means the purpose of—
generating electricity for consumption wholly or mainly in qualifying premises, or
producing heat for use wholly or mainly for heating qualifying premises;
“plant” includes any equipment, apparatus or appliance;
“premises” means any building or buildings (and for this purpose “building” includes part of a building);
“qualifying premises” means premises which—
are used wholly or mainly for purposes other than carrying on a trade, business or profession, and
in the case of premises which consist wholly or mainly of a dwelling or dwellings, contain at least five dwellings;
“relevant plant” means any plant which—
in generating electricity or (as the case may be) producing heat, relies wholly or mainly on a source of energy or a technology mentioned in section 82(7) of the Energy Act 2004 (c. 20) (microgeneration), and
satisfies the condition in subsection (4).
(4) Plant satisfies the condition in this subsection if its capacity does not exceed—
(a) in the case of plant for the generation of electricity, 20 megawatts, and
(b) in the case of plant for the production of heat, 100 megawatts thermal.
(1) A parish council or community council may encourage or promote any of the following—
(a) microgeneration within their area;
(b) the use within their area of electricity generated, or heat produced, by microgeneration;
(c) efficiency in the use, by persons in their area, of electricity, heat, gas, fuel and other descriptions or sources of energy;
(d) reductions in the amounts of such energy, or sources of energy, used by persons in their area;
(e) production in their area of—
(i) biomass, or
(ii) any fuel derived from biomass;
(f) use in their area of, or of electricity generated, or heat produced, from biomass or any such fuel.
(2) The power conferred by subsection (1) includes, in particular, power—
(a) on application, to provide information about goods or services available within their area (whether offered or provided by public authorities or by any other persons), or
(b) to provide advice or assistance,
for the purpose of encouraging or facilitating any of the matters mentioned in that subsection.
(3) Assistance provided under subsection (1) may, if the council giving the assistance think appropriate—
(a) be made subject to conditions, or
(b) otherwise be provided on such terms as the council think appropriate.
(4) For the purposes of subsections (4) to (7B) of section 137 of the Local Government Act 1972 (c. 70) (power of local authorities to incur expenditure for certain purposes not otherwise authorised)—
(a) any expenditure incurred by a parish council or community council under this section is to be treated as having been incurred under that section, and
(b) any purpose for which expenditure may be incurred under this section is to be treated as a purpose for which such a council are authorised by that section to incur expenditure.
(5) Subsection (4) applies to expenditure incurred by a parish council or community council under section 142 of the Local Government Act 1972 on information as to the services provided by them under this section, or otherwise relating to their functions under this section, as it applies to expenditure incurred under this section.
(6) The appropriate person may by order amend the list of matters mentioned in subsection (1) by—
(a) adding any other matter whose addition would in the opinion of the person making the order be likely to contribute to reduction of greenhouse gases in England and Wales;
(b) omitting any matter for the time being included in the list.
(7) In subsection (6), “the appropriate person” means—
(a) in relation to England, the Secretary of State, and
(b) in relation to Wales, the National Assembly for Wales.
(8) The power conferred by subsection (6) includes—
(a) power to make different provision for different cases, and
(b) power to make such supplemental or consequential provision (including provision modifying this section) and such transitional or saving provision as the person making the order thinks fit.
(9) The power of the Secretary of State to make an order under subsection (6) is exercisable by statutory instrument.
(10) No order under that subsection may be made by the Secretary of State unless a draft of the order has been—
(a) laid before Parliament, and
(b) approved by a resolution of each House.
(1) It shall be the duty of the Secretary of State to take such steps as he considers appropriate to promote the use of heat produced from renewable sources.
(2) For the purposes of subsection (1), heat produced by any plant is produced from renewable sources to the extent that the plant is fuelled by renewable sources.
(3) The steps which the Secretary of State may take for the purposes of subsection (1) include, in particular, steps for the purpose of promoting—
(a) the installation of plant which is or may be fuelled by renewable sources,
(b) the adaptation of plant so as to enable it to be fuelled by renewable sources, or
(c) the production of heat by plant which is fuelled partly by renewable sources and partly by other sources.
(4) In this section—
“fossil fuel” means coal, substances produced directly or indirectly from coal, lignite, natural gas, crude liquid petroleum or petroleum products (and “natural gas” and “petroleum products” have the same meanings as in the Energy Act 1976 (c. 76));
“plant” includes any equipment, apparatus or appliance;
“renewable sources” means sources of energy other than fossil fuel or nuclear fuel.
In section 1(1A) of the Sustainable Energy Act 2003 (c. 30) (annual reports on progress towards sustainable energy aims)—
(a) at the end of paragraph (b) insert—
“(ba) things done during that period pursuant to section 19 of the Climate Change and Sustainable Energy Act 2006 for the purpose of promoting community energy projects;
(bb) things done during that period pursuant to section 21 of that Act for the purpose of promoting the use of heat produced from renewable sources;”, and
(b) in paragraph (c), after “sections 2 and 3” insert “of this Act”.
(1) Section 32B of the Electricity Act 1989 (c. 29) (green certificates) is amended as follows.
(2) In subsection (1), at the end insert “or, if the order so provides, to a person of any other description specified in the order”.
(3) In subsection (1A), at the end add “or, if the order provides that a certificate may certify the matters within subsection (2ZA), (2AA), (2AB) or (2AC), the matters within that subsection”.
(4) In subsections (2) and (2A), for “to an electricity supplier or to a Northern Ireland supplier,” substitute “otherwise than to the operator of a generating station,”.
(5) After subsection (2) insert—
“(2ZA) The matters within this subsection are—
(a) that two or more generating stations have, between them, generated from renewable sources the amount of electricity stated in the certificate; and
(b) that it has been supplied to customers in Great Britain (or the part of Great Britain stated in the certificate).”
(6) After subsection (2A) insert—
“(2AA) The matters within this subsection are—
(a) that two or more generating stations have, between them, generated from renewable sources the amount of electricity stated in the certificate;
(b) that none of them is a generating station mentioned in Article 54(1) of the Energy (Northern Ireland) Order 2003; and
(c) that the electricity has been supplied to customers in Northern Ireland.
(2AB) The matters within this subsection are—
(a) that the generating station, or, in the case of a certificate issued otherwise than to the operator of a generating station, a generating station specified in the certificate, has generated from renewable sources the amount of electricity stated in the certificate; and
(b) that the electricity has been used in a permitted way.
(2AC) The matters within this subsection are—
(a) that two or more generating stations have, between them, generated from renewable sources the amount of electricity stated in the certificate; and
(b) that the electricity has been used in a permitted way.
(2AD) For the purposes of subsections (2AB) and (2AC), electricity generated by a generating station, or generating stations, of any description is used in a permitted way if—
(a) it is used in one of the ways mentioned in subsection (2AE); and
(b) that way is specified in the order as a permitted way—
(i) in relation to all generating stations, or
(ii) in relation to generating stations of that description.
(2AE) Those ways are—
(a) being consumed by the operator of the generating station or generating stations by which it was generated;
(b) being provided to a distribution system or a transmission system in circumstances in which its supply to customers cannot be demonstrated;
(c) being used, as respects part, as mentioned in paragraph (a)and, as respects the remainder, as mentioned in paragraph (b);
(d) being used, as respects part, as mentioned in paragraph (a), (b) or (c) and, as respects the remainder, by being supplied to customers in Great Britain or customers in Northern Ireland, or both.”
(7) In subsection (2B), after “(2A)” insert “or (2AA)”.
(8) In subsection (3), after “(2)” insert “or (2AZ)”.
(9) In subsection (4), after “subsection (2A)” insert “or any of subsections (2AA) to (2AC)”.
(1) In section 32 of the Electricity Act 1989 (c. 29) (obligation in connection with energy from renewable sources), in subsection (5), after “supply” insert “or other use”.
(2) In section 32A(3) of that Act (orders under section 32: supplementary)—
(a) omit “and” at the end of paragraph (a), and
(b) after paragraph (b) insert “and
(c) different provision in relation to generating stations of different descriptions,”.
(3) In section 116 of the Energy Act 2004 (c. 20) (issue of green certificates in Great Britain), omit subsection (4)(b) (which amends section 32B(2)(a) of the Electricity Act 1989).
(4) The requirements of section 32(7) of the Electricity Act 1989 (consultation before making an order) may be satisfied in the case of an order containing provision made by virtue of section 23 or this section by consultation that took place wholly or partly before the commencement of that section or this section.
(5) The functions conferred by virtue of section 23 and this section on the Secretary of State are not to be exercisable by the Scottish Ministers, except in pursuance of an Order in Council made after the passing of this Act under section 63 of the Scotland Act 1998 (c. 46).
(1) Section 185 of the Energy Act 2004 (adjustment of transmission charges) is amended as provided in subsections (2) to (4).
(2) In subsection (1)(a), for “of Great Britain” substitute “in Great Britain”.
(3) After subsection (3) insert—
“(3A) If subsection (1) is satisfied in the case of two or more separate areas in Great Britain, an order under this section may relate to both, or all, of those areas.
(3B) This section has effect in relation to an order which, by virtue of subsection (3A), relates to two or more areas as if references in subsections (2), (3) and (10) to the area to which the scheme established by the order relates (however expressed) were references to the combined area.”
(4) In subsection (11), for “more than ten years after the commencement of this section” substitute “later than 4 October 2024”.
(5) Subsection (7) of section 185 may be satisfied in relation to any order to be made under that section after the commencement of this section by publications and consultation taking place wholly or partly before that commencement.
(1) In this Act—
“fuel poverty” shall be construed in accordance with the provisions of section 1 of the Warm Homes and Energy Conservation Act 2000 (c. 31);
“greenhouse gas” means any of the following—
carbon dioxide;
methane;
nitrous oxide;
hydrofluorocarbons;
perfluorocarbons;
sulphur hexafluoride;
“microgeneration” means the use for the generation of electricity or the production of heat of any plant (which, for this purpose, includes any equipment, apparatus or appliance)—
which, in generating electricity or (as the case may be) producing heat, relies wholly or mainly on a source of energy or a technology mentioned in subsection (2), and
the capacity of which to generate electricity or (as the case may be) to produce heat does not exceed the capacity mentioned in subsection (3);
“public authority” has the same meaning as in section 6 of the Human Rights Act 1998 (c. 42).
(2) Those sources of energy and technologies are—
(a) biomass;
(b) biofuels;
(c) fuel cells;
(d) photovoltaics;
(e) water (including waves and tides);
(f) wind;
(g) solar power;
(h) geothermal sources;
(i) combined heat and power systems.
(3) That capacity is—
(a) in relation to the generation of electricity, 50 kilowatts;
(b) in relation to the production of heat, 45 kilowatts thermal.
(4) The Secretary of State may by order amend subsection (2) by adding to the sources of energy and technologies for the time being listed any other source of energy or technology for the generation of electricity or production of heat if he considers that the use of that source of energy or technology would cut emissions of greenhouse gases in Great Britain.
(5) The power to make an order under subsection (4) —
(a) is exercisable by statutory instrument, and
(b) includes power to make such supplemental or consequential provision (including provision modifying this section) and such transitional or saving provision as the Secretary of State thinks fit.
(6) No order under that subsection may be made unless a draft of the order—
(a) has been laid before Parliament, and
(b) has been approved by a resolution of each House.
There shall be paid out of money provided by Parliament—
(a) any expenditure incurred by a Minister of the Crown by virtue of this Act, and
(b) any increase attributable to this Act in the sums payable out of money so provided under any other enactment.
(1) Sections 1, 3 to 5, 7 to 11, 13, 14, 18 to 21 and 23 to 25 come into force at the end of the period of two months beginning with the day on which this Act is passed.
(2) Sections 2, 6, 12 and 22 come into force on 1st January 2007.
(3) Sections 15 to 17 come into force in accordance with provision made by the Secretary of State by order.
(4) The power of the Secretary of State to make an order under subsection (3)—
(a) is exercisable by statutory instrument, and
(b) includes power to make such transitory, transitional or saving provision as the Secretary of State considers necessary or expedient.
(1) This Act may be cited as the Climate Change and Sustainable Energy Act 2006.
(2) Sections 3, 10, 11, 13, 14 and 19 to 21 extend to England and Wales only.
(3) Sections 4, 5, 7 to 9, 15 to 18 and 23 to 25 extend to England and Wales and Scotland only.