Part 2

Electricity from renewable sources

Feed-in tariffs for small-scale generation of electricity

Power to amend licence conditions etc: feed-in tariffs
41
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. which, in generating electricity, relies wholly or mainly on a source of energy or a technology mentioned in subsection (5), and
  2. 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 10 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.
S. 41 in force at 26.1.2009 by S.I. 2009/45, art. 2(a)(iv)
Word in s. 41(4) substituted (18.2.2014) by Energy Act 2013 (c. 32), ss. 146, 156(2)