Part 2Electricity from renewable sources

Feed-in tariffs for small-scale generation of electricity

I141Power to amend licence conditions etc: feed-in tariffs

1

The Secretary of State may modify—

a

a condition of a particular licence under section 6(1)(c) or (d) of the Electricity Act 1989 (distribution and supply licences);

b

the standard conditions incorporated in licences under those provisions by virtue of section 8A of that Act;

c

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.

2

The Secretary of State may exercise the power in subsection (1) for the purpose only of—

a

establishing, or making arrangements for the administration of, a scheme of financial incentives to encourage small-scale low-carbon generation of electricity;

b

requiring or enabling the holder of a distribution licence to make arrangements for the distribution of electricity generated by small-scale low-carbon generation;

c

requiring the holder of a licence to make arrangements related to the matters mentioned in paragraph (a) or (b).

3

Modifications made by virtue of subsection (1) may include—

a

provision requiring the holder of a supply licence to make a payment to a small-scale low-carbon generator, or to the Authority for onward payment to such a generator, in specified circumstances;

b

provision specifying how a payment under paragraph (a) is to be calculated;

c

provision for the level of payment under paragraph (a) to decrease year by year in accordance with a formula published, or to be published, by the Secretary of State;

d

provision about the circumstances in which no payment, or a reduced payment, may be made to a small-scale low-carbon generator;

e

provision about the circumstances in which a payment may be recovered from a small-scale low-carbon generator;

f

a requirement for the holder of a supply licence or distribution licence to pay a levy to the Authority at specified times;

g

provision specifying how a levy under paragraph (f) is to be calculated (which may require specified matters to be determined by the Authority or the Secretary of State);

h

provision conferring an entitlement on the holder of a supply licence or distribution licence to receive a payment from the Authority.

4

In this section—

  • “Authority” means the Gas and Electricity Markets Authority;

  • “distribution licence” means a licence under section 6(1)(c) of the Electricity Act 1989 (c. 29);

  • “owner”, in relation to any plant which is the subject of a hire purchase agreement, a conditional sale agreement or any agreement of a similar nature, means the person in possession of the plant under that agreement;

  • “plant” includes any equipment, apparatus or appliance;

  • “small-scale low-carbon generation” means the use, for the generation of electricity, of any plant—

    1. a

      which, in generating electricity, relies wholly or mainly on a source of energy or a technology mentioned in subsection (5), and

    2. b

      the capacity of which to generate electricity does not exceed the specified maximum capacity;

  • “small-scale low-carbon generator” means an owner of plant used or intended to be used for small-scale low-carbon generation, whether or not the person is also operating or intending to operate the plant;

  • “specified maximum capacity” means the capacity specified by the Secretary of State by order, which must not exceed F110 megawatts;

  • “supply licence” means a licence under section 6(1)(d) of the Electricity Act 1989 (c. 29).

5

The 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 with an electrical capacity of 50 kilowatts or less.

6

The Secretary of State may by order modify the list of sources of energy and technologies for the time being listed in subsection (5).

7

The power conferred by subsection (1)—

a

may be exercised generally, only in relation to specified cases or subject to exceptions (including provision for a case to be excepted only so long as specified conditions are satisfied);

b

may be exercised differently in different cases or circumstances;

c

includes a power to make incidental, supplemental, consequential or transitional modifications.

8

Provision included in a licence by virtue of that power—

a

need not relate to the activities authorised by the licence;

b

may make different provision for different cases.