Moved by
Lord Roper
55AB: After Clause 14, insert the following new Clause—
“Regulations: backstop power purchase agreements
(1) Regulations made under section 6 must include provision under which—
(a) every eligible generator who is a party to a CFD may, in specified circumstances, by notice in writing require the Authority (or such other person on whom the regulations confer functions) to secure, within no later than one month after the notice is given, that an electricity supplier (or a person of such other description as may be specified) enter into a power purchase agreement on terms set out in, or determined in accordance with, the regulations (a “backstop PPA”); and
(b) for the duration of the backstop PPA, the strike price under that CFD (or under any other CFD entered into in connection with the backstop PPA) is set at a level specified in, or determined in accordance with, the regulations.
(2) In determining the provision to be made under this section, the Secretary of State must have regard, in particular, to—
(a) the desirability of ensuring that every eligible generator who is a party to a CFD is able to borrow money commercially for its business purposes at reasonable cost and over a reasonable period (including borrowing which involves the lender taking an equity stake in the generator);
(b) accordingly, the need to ensure that the terms of every backstop PPA, and the level of the associated strike price, are such that every backstop PPA is demonstrably viable for the eligible generator.
(3) Where, at the time a CFD is made, regulations make provision for any matter referred to in subsection (1), subsequent regulations may not alter that provision in relation to that CFD during its term.
(4) The Secretary of State may exercise the powers conferred by Chapter 6 of this Part (modification of licence conditions) for the purpose of giving effect to provision made under this section.
(5) The Secretary of State must keep under review the effectiveness of provision proposed or made under this section for achieving the objects set out in paragraphs (a) and (b) of subsection (2).
(6) In this section, “specified” means specified in the regulations.”