Moved by
Baroness Verma
16: After Clause 10, insert the following new Clause—
“Standard terms
(1) The Secretary of State may issue standard terms and conditions of CFDs (“standard terms”).
(2) The Secretary of State may from time to time revise standard terms.
(3) Standard terms issued or revised under this section must be in accordance with provision made in regulations.
(4) In issuing or revising standard terms the Secretary of State must have regard to the matters mentioned in section 5(2).
(5) The Secretary of State must publish standard terms as issued or revised under this section.
(6) In publishing standard terms the Secretary of State may designate particular standard terms as terms that may not be modified under section (Modification of standard terms).
(7) Different standard terms may be issued for different categories of CFD.”
17: After Clause 10, insert the following new Clause—
“CFD notifications
(1) The national system operator may, in accordance with provision made by regulations, give a notification to a CFD counterparty (a “CFD notification”) specifying—
(a) an eligible generator, and
(b) such other information as may be required for the purpose of making an offer under section (CFD notification: offer to contract) to contract with that generator.
(2) A CFD notification must not be given if regulations made by virtue of section 17 prevent the giving of the notification.
(3) Regulations may make further provision about CFD notifications and in particular provision about—
(a) the circumstances in which a CFD notification may or must be given;
(b) the kinds of information mentioned in subsection (1)(b) that must be specified in a CFD notification;
(c) appeals against decisions not to give CFD notifications.
(4) A CFD notification may not be given by virtue of regulations under this section in relation to an electricity generating station in Northern Ireland unless the Department of Enterprise, Trade and Investment consent to the CFD notification.
(5) But regulations may, with the consent of that Department, include provision for circumstances in which consent under subsection (4) is not required.
(6) In subsection (4) “Northern Ireland” includes so much of the internal waters and territorial sea of the United Kingdom as are adjacent to Northern Ireland.”
18: After Clause 10, insert the following new Clause—
“Allocation of CFDs
(1) Provision that may be included in regulations by virtue of section (CFD notifications) includes in particular provision about how CFDs are to be allocated to eligible generators (and for this purpose a CFD is “allocated” to a generator if the generator is specified in a CFD notification).
(2) Provision made by virtue of subsection (1) may include provision—
(a) conferring power on the Secretary of State to make rules (an “allocation framework”) about how CFDs are to be allocated;
(b) for different periods within which CFDs are to be allocated (“allocation rounds”);
(c) for different allocation frameworks to apply in respect of different allocation rounds;
(d) for the publication of allocation frameworks;
(e) about matters in relation to which provision may or must be made in an allocation framework.
(3) Provision made by regulations by virtue of subsection (2) may impose requirements on the Secretary of State, including in particular—
(a) requirements as to the giving of notice before an allocation round is commenced;
(b) restrictions on the circumstances in which amendments may be made during an allocation round to an allocation framework or to any other matter relevant to an allocation round (including any amount by reference to which a limit on the CFDs allocated during the round is to be determined).
(4) An allocation framework may—
(a) confer functions on the national system operator with respect to the allocation of CFDs;
(b) specify targets to be met or taken into account by the national system operator in giving CFD notifications by virtue of section (CFD notifications), including targets relating to—
(i) the means by which electricity is generated;
(ii) the generating capacity of electricity generating stations;
(iii) the geographical location of electricity generating stations;
(c) make any provision that may be made by regulations by virtue of subsection (3).
(5) An allocation framework may include provision for—
(a) the determination of a matter on a competitive basis;
(b) calculations or determinations to be made under the framework, including by such persons, in accordance with such procedure and by reference to such matters and to the opinion of such persons, as may be specified in the framework.
(6) An allocation framework may—
(a) include incidental, supplementary and consequential provision;
(b) make transitory or transitional provision and savings;
(c) make different provision for different cases or circumstances or for different purposes;
(d) make provision subject to exceptions.
(7) Any power conferred by virtue of subsection (2) to make an allocation framework includes a power to amend, add to or remove an allocation framework.
(8) Subsections (4) to (7) are subject to any provision contained in regulations.”
19: After Clause 10, insert the following new Clause—
“CFD notification: offer to contract on standard terms
(1) Where a CFD notification is given to a CFD counterparty under section (CFD notifications), the CFD counterparty must, in accordance with provision made by regulations, offer to contract with the eligible generator specified in the notification on—
(a) standard terms, or
(b) standard terms as modified in accordance with any modification agreement entered into between the CFD counterparty and the eligible generator for the purposes of the CFD notification (see section (Modification of standard terms)).
(2) Regulations may make further provision about an offer to contract made under this section, including provision about—
(a) how a CFD counterparty is to apply or complete standard terms in relation to the offer in accordance with information specified in a CFD notification;
(b) the time within which the offer must be made;
(c) how the eligible generator to whom it is made may enter into a CFD as a result of the offer;
(d) what is to happen if the eligible generator does not enter into a CFD as a result of it.
(3) In this section, “standard terms”, in relation to a CFD notification, means standard terms published under section (Standard terms), determined in accordance with regulations as the standard terms that are to apply in relation to the CFD notification.”
20: After Clause 10, insert the following new Clause—
“Modification of standard terms
(1) This section applies where a person wishes to be specified as an eligible generator in a CFD notification (“the potential CFD notification”).
(2) A CFD counterparty and the person may, in accordance with provision made by regulations, agree to modify standard terms for the purposes of any offer that would be required under section (CFD notification: offer to contract on standard terms) if the potential CFD notification is given (a “modification agreement”).
(3) A CFD counterparty may enter into a modification agreement providing for the modification of any particular standard term only if—
(a) the CFD counterparty is satisfied that—
(i) the effect of the modification is minor, and
(ii) the modification is necessary; and
(b) the standard term has not been designated under section (Standard terms) as a term that may not be modified under this section.
(4) Regulations may make further provision about modification agreements, including—
(a) the circumstances in which a person may make an application for a modification agreement;
(b) the time by which an application must be made;
(c) the procedure to be followed, and the information to be given, by the person in making an application;
(d) how a CFD counterparty is to determine an application (including how it is to determine whether the effect of a modification is minor and whether it is necessary);
(e) the time by which determinations must be made;
(f) the form of modification agreements.
(5) Provision made by virtue of subsection (4)(d) may include provision under which the CFD counterparty may make alternative proposals for modifications in response to an application.
(6) In this section “modify” includes add to, alter or omit, and “modification” is to be read accordingly.”
21: After Clause 10, insert the following new Clause—
“Sections (CFD notifications) to (Modification of standard terms): further provision
Provision made by regulations by virtue of any of sections (CFD notifications) to (Modification of standard terms) may include provision for—
(a) the determination of a matter on a competitive basis;
(b) calculations or determinations to be made under the regulations, including by such persons, in accordance with such procedure and by reference to such matters and to the opinion of such persons, as may be specified in the regulations.”