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(1)Section 172 of the Energy Act 2004 (annual report by Secretary of State on security of energy supplies) is amended as follows.
(2)After subsection (2) insert—
“(2A)In 2012 and in every subsequent calendar year the report must also include, in particular, as regards each of the assessment periods, an assessment by the Secretary of State of what electricity supply capacity is required.
(2B)For the purposes of subsection (2A) the electricity supply capacity required is the capacity required for the purpose of meeting the demands of consumers for the supply of electricity in Great Britain, including spare capacity to allow for unexpected demands or unexpected loss of capacity.
(2C)The assessment periods, in relation to a report under subsection (1), are—
(a)each of the four calendar years immediately following the year of the report; or
(b)any other periods that the Secretary of State specifies by order.
(2D)An assessment by virtue of subsection (2A) must take into account, in particular—
(a)the generation of electricity;
(b)the operation of electricity interconnectors;
(c)the storage of electricity;
(d)the extent to which the available capacity of a generating station is likely to be lower than its maximum possible capacity due to routine maintenance, weather conditions or any other expected limitation on its operation;
(e)demand side response.”
(3)In subsection (3), after “report” insert “ , other than the assessment by virtue of subsection (2A), ”.
(4)After subsection (3) insert—
“(3A)An order under this section is subject to the negative resolution procedure.”
(5)In subsection (4)—
(a)after the definition of “consumers” insert—
“ “demand side response” means the cessation of, or a reduction in, the provision of electricity to a person at times of high demand, by agreement with the person;”;
(b)after “distribution system,” insert “ “ electricity interconnector ”, “generating station”, “generation”, “supply,” ”.
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