Be it enacted by the Queen's most Excellent Majesty, by and with the advice and consent of the Lords Spiritual and Temporal, and Commons, in this present Parliament assembled, and by the authority of the same, as follows:—
Purposes
The principal purpose of this Act is to enhance the United Kingdom's contribution to combating climate change.
In performing functions under this Act, the relevant persons and bodies shall have regard to—
the principal purpose set out in subsection (1),
the desirability of alleviating fuel poverty, and
the desirability of securing a diverse and viable long-term energy supply.
In this section “the relevant persons and bodies” means—
the Secretary of State;
any public authority.
Reports on greenhouse gas emissions
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Local authorities
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Microgeneration
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In section 1(1A) of the Sustainable Energy Act 2003 (c. 30) (annual reports on progress towards sustainable energy aims)—
omit “and” at the end of paragraph (b), and
at the end of paragraph (c) insert
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In section 33(1) of the Utilities Act 2000 (c. 27) (standard conditions of electricity licences)—
omit “or” at the end of paragraph (a), and
after paragraph (b) insert.
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In section 47 of the Electricity Act 1989 (functions of the Gas and Electricity Markets Authority), after subsection (1) insert—.
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In Schedule 1 to the Building Act 1984 (c. 55) (building regulations), in paragraph 7(a), after paragraph (xxiid) insert—.
Energy efficiency
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Building regulations relating to emissions and use of fuel and power
After section 35 of the Building Act 1984 (c. 55) insert—
In section 53 of that Act (effect of initial notice ceasing to be in force), after subsection (6) insert—
The Secretary of State—
must, not later than 6 months after this section comes into force, lay before Parliament a report as mentioned in subsection (2), and
may from time to time lay further such reports before Parliament.
A report under this section is a report on what, if any, steps—with a view to securing a greater incidence of compliance with relevant provisions of building regulations.
he has taken during the reporting period, or
he proposes to take,
In this section—“reporting period” means the period specified in the report as the period to which the report relates;“relevant provision”, in relation to building regulations, means a provision of building regulations which is in force at any time during the reporting period and which, in the opinion of the Secretary of State, was made—for the purpose of furthering the conservation of fuel and power, or otherwise in connection with the use of fuel and power, or for the purpose of reducing emissions of greenhouse gases.
Carbon emissions reduction targets
Section 33BC of the Gas Act 1986 (c. 44) (promotion of the efficient use by consumers of gas) is amended as follows.
In subsection (1)—
for “energy efficiency target” substitute “ carbon emissions reduction target ”, and
for “an “energy efficiency obligation”” substitute “ a “carbon emissions reduction obligation” ”.
For subsection (2) substitute—
After subsection (10) insert—
After subsection (12), add—
Section 41A of the Electricity Act 1989 (c. 29) (promotion of the efficient use by consumers of electricity) is amended as follows.
In subsection (1)—
for “energy efficiency target” substitute “ carbon emissions reduction target ”, and
for “an “energy efficiency obligation”” substitute “ a “carbon emissions reduction obligation” ”.
For subsection (2) substitute—
After subsection (10) insert—
After subsection (12), add—
Dynamic demand technologies
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Community energy and renewable heat
It shall be the duty of the Secretary of State to take such steps as he considers appropriate to promote community energy projects.
In the exercise of his duty under subsection (1), the Secretary of State shall have regard to the desirability of promoting—
schemes whose purpose or effect is the promotion of community energy projects,
investment by others in such schemes and community energy projects, and
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.
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).
Plant satisfies the condition in this subsection if its capacity does not exceed—
in the case of plant for the generation of electricity, 20 megawatts, and
in the case of plant for the production of heat, 100 megawatts thermal.
A parish council or community council may encourage or promote any of the following—
microgeneration within their area;
the use within their area of electricity generated, or heat produced, by microgeneration;
efficiency in the use, by persons in their area, of electricity, heat, gas, fuel and other descriptions or sources of energy;
reductions in the amounts of such energy, or sources of energy, used by persons in their area;
production in their area of—
biomass, or
any fuel derived from biomass;
use in their area of, or of electricity generated, or heat produced, from biomass or any such fuel.
The power conferred by subsection (1) includes, in particular, power—for the purpose of encouraging or facilitating any of the matters mentioned in that subsection.
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
to provide advice or assistance,
Assistance provided under subsection (1) may, if the council giving the assistance think appropriate—
be made subject to conditions, or
otherwise be provided on such terms as the council think appropriate.
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)—
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
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.
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.
The appropriate person may by order amend the list of matters mentioned in subsection (1) by—
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;
omitting any matter for the time being included in the list.
In subsection (6), “the appropriate person” means—
in relation to England, the Secretary of State, and
in relation to Wales, the National Assembly for Wales.
The power conferred by subsection (6) includes—
power to make different provision for different cases, and
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.
The power of the Secretary of State to make an order under subsection (6) is exercisable by statutory instrument.
No order under that subsection may be made by the Secretary of State unless a draft of the order has been—
laid before Parliament, and
approved by a resolution of each House.
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In section 1(1A) of the Sustainable Energy Act 2003 (c. 30) (annual reports on progress towards sustainable energy aims)—
at the end of paragraph (b) insert—, and
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Electricity from renewable sources
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Section 185 of the Energy Act 2004 (adjustment of transmission charges) is amended as provided in subsections (2) to (4).
In subsection (1)(a), for “of Great Britain” substitute “ in Great Britain ”.
After subsection (3) insert—
In subsection (11), for “more than ten years after the commencement of this section” substitute “ later than 4 October 2024 ”.
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.
Miscellaneous and final provisions
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).
Those sources of energy and technologies are—
biomass;
biofuels;
fuel cells;
photovoltaics;
water (including waves and tides);
wind;
solar power;
geothermal sources;
heat from air, water or the ground;
combined heat and power systems.
That capacity is—
in relation to the generation of electricity, 50 kilowatts;
in relation to the production of heat, 45 kilowatts thermal.
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.
The power to make an order under subsection (4) —
is exercisable by statutory instrument, and
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.
No order under that subsection may be made unless a draft of the order—
has been laid before Parliament, and
has been approved by a resolution of each House.
There shall be paid out of money provided by Parliament—
any expenditure incurred by a Minister of the Crown by virtue of this Act, and
any increase attributable to this Act in the sums payable out of money so provided under any other enactment.
The power of the Secretary of State to make an order under subsection (3)—
is exercisable by statutory instrument, and
includes power to make such transitory, transitional or saving provision as the Secretary of State considers necessary or expedient.
This Act may be cited as the Climate Change and Sustainable Energy Act 2006.
Gas Act 1986 (c. 44)
The Gas Act 1986 is amended as provided in paragraphs 2 and 3.
Section 33BC (promotion of the efficient use by consumers of gas) is amended as follows.
For the sidenote substitute “ Promotion of reductions in carbon emissions: gas transporters and gas suppliers ”.
In subsection (3), for “energy efficiency targets” substitute “ carbon emissions reduction targets ”.
In subsection (5)—
for “energy efficiency obligations”, in the first place it occurs, substitute “ carbon emissions reduction obligations ”,
in paragraph (b), for “an energy efficiency target” substitute “ a carbon emissions reduction target ”,
in paragraph (c), after “efficiency” insert “ , increases in the amount of electricity generated, or heat produced, by microgeneration or otherwise using low-emissions sources or technologies or reductions in energy consumption ”,
in paragraphs (d) and (f), for “energy efficiency obligations” substitute “ carbon emissions reduction obligations ”, and
in paragraph (e)—
in sub-paragraph (i), for “energy efficiency target” substitute “ carbon emissions reduction target ”, and
in sub-paragraph (ii), after “efficiency” insert “ , increase in the amount of electricity generated, or heat produced, by microgeneration or otherwise using low-emissions sources or technologies or reduction in energy consumption ”.
In subsection (6), for “energy efficiency obligation” substitute “ carbon emissions reduction obligation ”.
In subsection (7), for “energy efficiency target” in each of paragraphs (a), (b), (d) and (e) substitute “ carbon emissions reduction target ”.
In section 33DA(1)(a)(ii) (publication of statistical information relating to performance in respect of energy efficiency obligations), for “energy efficiency obligations” substitute “ carbon emissions reduction obligations ”.
Electricity Act 1989 (c. 29)
The Electricity Act 1989 is amended as provided in paragraphs 5 and 6.
Section 41A (promotion of the efficient use by consumers of electricity) is amended as follows.
For the sidenote substitute “ Promotion of reductions in carbon emissions: electricity distributors and electricity suppliers ”.
In subsection (3), for “energy efficiency targets” substitute “ carbon emissions reduction targets ”.
In subsection (5)—
for “energy efficiency obligations”, in the first place it occurs, substitute “ carbon emissions reduction obligations ”,
in paragraph (b), for “an energy efficiency target” substitute “ a carbon emissions reduction target ”,
in paragraph (c), after “efficiency” insert “ , increases in the amount of electricity generated, or heat produced, by microgeneration or otherwise using low-emissions sources or technologies or reductions in energy consumption ”,
in paragraphs (d) and (f), for “energy efficiency obligations” substitute “ carbon emissions reduction obligations ”, and
in paragraph (e)—
in sub-paragraph (i), for “energy efficiency target” substitute “ carbon emissions reduction target ”, and
in sub-paragraph (ii), after “efficiency” insert “ , increase in the amount of electricity generated, or heat produced, by microgeneration or otherwise using low-emissions sources or technologies or reduction in energy consumption ”.
In subsection (6), for “energy efficiency obligation” substitute “ carbon emissions reduction obligation ”.
In subsection (7), for “energy efficiency target” in each of paragraphs (a), (b), (d) and (e) substitute “ carbon emissions reduction target ”.
In section 42AA(1)(a)(ii) (publication of statistical information relating to performance in respect of energy efficiency obligations), for “energy efficiency obligations” substitute “ carbon emissions reduction obligations ”.
Utilities Act 2000 (c. 27)
Section 103 of the Utilities Act 2000 (overall energy efficiency targets) is amended as follows.
In the sidenote, for “energy efficiency targets” substitute “ carbon emissions reduction targets ”.
In subsection (1)—
in each of paragraphs (a) and (b), for “energy efficiency requirements for” substitute “ promotion of reductions in carbon emissions: ”, and
for “improvements in energy efficiency” substitute “ the measures mentioned in subsection (2) of each of those sections ”.
In subsection (3), for “energy efficiency targets” substitute “ carbon emissions reduction targets ”.