The Electricity and Gas (Energy Company Obligation) Order 2014

Nº documento:2014 No. 3219
 
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Statutory Instruments

Electricity

Gas

Made

4 th December 2014

Coming into force in accordance with article 1

The Secretary of State makes this Order in exercise of the powers conferred by sections 33 BC and 33 BD of the Gas Act 1986(1) , sections 41 A and 41 B of the Electricity Act 1989(2) , sections 103 and 103 A of the Utilities Act 2000(3) and section 2(2) of the European Communities Act 1972(4).

The Secretary of State has consulted the Gas and Electricity Markets Authority, Citizens Advice, Citizens Advice Scotland, electricity generators, electricity distributors, electricity suppliers, gas transporters, gas suppliers and such other persons as the Secretary of State considers appropriate.

A draft of this instrument has been approved by a resolution of each House of Parliament pursuant to sections 33 BC(12) and 33 BD(4) of the Gas Act 1986 , sections 41 A(12) and 41 B(4) of the Electricity Act 1989 , sections 103(5) and 103 A(6) of the Utilities Act 2000 and paragraph 2(2) of Schedule 2 to the European Communities Act 1972(5).

The Secretary of State is a Minister designated(6) for the purpose of section 2(2) of the European Communities Act 1972 in relation to energy and energy sources.

PART 1 Introduction

Citation and commencement

  1.   This Order may be cited as the Electricity and Gas (Energy Company Obligation) Order 2014 and comes into force on the day after the day on which this Order is made.

    Interpretation

  2.   (1)  In this Order—

    “2012 Order” means the Electricity and Gas (Energy Companies Obligation) Order 2012(7);

    “2014 low income and rural document” means the document entitled “The Future of the Energy Company Obligation: Small Area Geographies Eligible for ECO CSCO Support”, published by the Department of Energy and Climate Change on 18 th July 2014(8);

    “Administrator” means the Gas and Electricity Markets Authority established by section 1 of the Utilities Act 2000;

    “affordable warmth group” means a group of persons where each person in the group is in receipt of at least one of the benefits in Schedule 1 and meets the conditions in relation to that benefit which are specified in that Schedule;

    “area of low income” (except in relation to article 27) means an area in Great Britain which is described as an area of low income in the 2014 low income and rural document;

    “carbon qualifying action” (except in relation to the terms defined in paragraph (2)) has the meaning given in article 12(3);

    “carbon saving” means the lifetime tonnes of carbon dioxide that a qualifying action or surplus action will save;

    “carbon saving community obligation” means the obligation for the promotion of carbon saving community qualifying actions which is imposed on a supplier in respect of a phase;

    “carbon saving community qualifying action” (except in relation to the terms defined in paragraph (2)) has the meaning given in article 14(4);

    “cost saving” means, in relation to a heating qualifying action or a surplus action—

    the money that would be saved by that action over its expected lifetime in heating a home to 21 degrees Celsius in the main living areas and 18 degrees Celsius in all other areas; and

    where the action also results in savings in the cost of heating water, the money that would be saved by the action over its expected lifetime in heating water in that home;

    “cost score” means the contribution that a heating qualifying action or surplus action makes towards a supplier’s total home heating cost reduction obligation;

    “deprived rural area” means an area in Great Britain which is described as a deprived rural area in the 2014 low income and rural document;

    “district heating system” means a system that delivers heat through pipes or conduits to two or more domestic premises;

    “domestic customer” means a person living in domestic premises in Great Britain who is supplied with electricity or gas at those premises wholly or mainly for domestic purposes;

    “domestic premises” includes a mobile home;

    “dual licence-holder” means a person holding a licence under section 6(1)(d) of the Electricity Act 1989(9) and a licence under section 7 A of the Gas Act 1986(10);

    “electricity licence-holder” means a person holding a licence under section 6(1)(d) of the Electricity Act 1989 who does not also hold a licence under section 7 A of the Gas Act 1986;

    “gas licence-holder” means a person holding a licence under section 7 A of the Gas Act 1986 who does not also hold a licence under section 6(1)(d) of the Electricity Act 1989;

    “Green Deal report” means a report produced by a green deal assessor pursuant to a qualifying assessment in accordance with regulation 7 of the Green Deal Framework (Disclosure, Acknowledgment, Redress etc.) Regulations 2012(11);

    “group company” means a licence-holder which is a member of a group of companies that includes at least one other licence-holder; and “group” refers to the group of companies of which the licence-holder is a member;

    “group of companies” means a holding company and the wholly-owned subsidiaries of that holding company where “holding company” and “wholly-owned subsidiary” have the same meaning as in section 1159 of the Companies Act 2006(12);

    “heating qualifying action” (except in relation to the terms defined in paragraph (2)) has the meaning given in article 16(3);

    “licence-holder” means an electricity licence-holder, a gas licence-holder or a dual licence-holder;

    “lifetime tonnes of carbon dioxide” means the amount in tonnes of carbon dioxide that is expected to be saved over the lifetime of a measure installed under this Order;

    “mobile home” means a home which is—

    a caravan within the meaning of Part I of the Caravan Sites and Control of Development Act 1960(13) (disregarding the amendment made by section 13(2) of the Caravan Sites Act 1968(14)); and

    used as a dwelling for the purposes of—

    Part I of the Local Government Finance Act 1992(15) if it is situated in England or Wales;

    Part II of the Local Government Finance Act 1992 if it is situated in Scotland;

    “MtCO2” means million lifetime tonnes of carbon dioxide;

    “new supplier” has the meaning given in article 4(3);

    “notification period” means—

    1 st January 2014 to 31 st December 2014 for phase 1; and

    1 st January 2015 to 31 st December 2015 for phase 2 ,

    and a reference in this Order, in relation to a phase, to the relevant notification period is to the notification period for that phase;

    “phase” means one of the two phases as follows—

    the twelve months ending with 31 st March 2016 (“phase 1”); and

    the twelve months ending with 31 st March 2017 (“phase 2”);

    “provisional solid wall minimum requirement” means the amount determined for a supplier in respect of phase 1 or phase 2 under article 7(2) , and which is used to determine a supplier’s solid wall minimum requirement under article 13;

    “Publicly Available Specification” means the Publicly Available Specification 2030:2014 , Edition 1(16);

    “qualifying action” means (except in relation to the terms defined in paragraph (2)) , as appropriate, a carbon qualifying action, a carbon saving community qualifying action or a heating qualifying action;

    “qualifying boiler” means—

    in the case of a boiler to be repaired, a boiler which the Administrator is satisfied—

    is not functioning efficiently or has broken down; and

    has a seasonal energy efficiency value of not less than 86% when assessed against the Standard Assessment Procedure;

    in the case of a boiler to be replaced, a boiler which the Administrator is satisfied—

    is not functioning efficiently or has broken down; and

    cannot be economically repaired;

    “qualifying electric storage heater” means—

    in the case of an electric storage heater to be repaired, an electric storage heater which the Administrator is satisfied has broken down and has a responsiveness rating when assessed against the Standard Assessment Procedure of more than 0.2; and

    in the case of an electric storage heater to be replaced, an electric storage heater (“H”) which—

    the Administrator is satisfied has broken down and cannot be economically repaired; or

    is located at the same premises as an electric storage heater which falls within paragraph (a) or sub-paragraph (i) and H has a responsiveness rating when assessed against the Standard Assessment Procedure equal to or less than 0.2;

    “qualifying supply” means the supply to domestic customers of 400 gigawatt hours of electricity or 2000 gigawatt hours of gas;

    “qualifying warranty” means a warranty which meets the requirements set out in Schedule 3;

    “recommended measure” means a measure recommended in—

    a Green Deal report which has been produced in respect of the domestic premises at which the measure is to be installed; or

    recommended in a report, other than a Green Deal report, by a chartered surveyor pursuant to an assessment of those domestic premises performed for the purpose of identifying measures for improving the energy efficiency of the premises;

    “Reduced Data Standard Assessment Procedure” means the Government’s Reduced Data Standard Assessment Procedure for energy ratings of dwellings (2012 Edition, version 9.92)(17);

    “relevant district heating connection” means a connection of premises to a district heating system where the premises—

    have flat roof, loft, rafter, room-in-roof or wall insulation; or

    do not include the top floor of the building in which they are located and all of the external walls of the building are insulated, except for a wall which has—

    one or more parts which are of solid wall construction; or

    a cavity which cannot be insulated;

    “relevant in-use factor” means—

    where a measure is specified in the first column of the table in Schedule 2 , the percentage specified for that measure in the second column of that table; or

    where a measure is not so specified, 15%;

    “relevant year” means 2014 or 2015;

    “rural area” means an area in Great Britain...

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