Legalize / United Kingdom / Public General Act

Energy Act 2011

Type Public General Act

Publication 2011-10-18

State In force

Department Statute Law Database

Source legislation.gov.uk

Reform history JSON API

Part 1 — Energy efficiency

CHAPTER 1 — Green deal

Introductory

Green deal plans

1

(1) This section applies for the purposes of this Chapter.

(2) An energy plan is an arrangement made by the occupier or owner of a property for a person to make energy efficiency improvements to the property.

(3) An energy plan is a green deal plan if—

(a) the energy efficiency improvements are to be paid for wholly or partly in instalments, and

(b) all of the requirements listed in paragraphs (a) to (e) of subsection (4) are met in relation to the plan at the time when it is made.

(4) The requirements are—

(a) the property is an eligible property,

(b) the energy efficiency improvements fall within a description specified in an order made by the Secretary of State (“qualifying energy improvements”),

(d) the conditions mentioned in section 5 as to the terms of the plan and other matters are met, and

(e) a relevant energy supplier supplies, or is to supply, energy to the property.

(5) Subsection (6) applies to a green deal plan from the time when—

(a) improvements have been installed in accordance with section 7,

(b) the plan is confirmed in accordance with section 8, and

(6) The payments in instalments agreed in the plan are to be—

(a) made by the person who is for the time being liable to pay the energy bills for the property,

(b) made to the relevant energy supplier through the energy bills for the property,

(d) recovered and held by the relevant energy supplier as agent and trustee for the person who made the improvements (unless the relevant energy supplier is also that person).

(7) Subsection (6) applies irrespective of whether the person referred to in paragraph (a) is the person who entered into the plan.

(8) Subsection (6) is subject to—

(a) provision made in regulations under section 34;

(b) any suspension or cancellation, by virtue of provision made in regulations under section 3(3)(h) or (i), 6(4), 16 or 35, of liability to make payments.

(9) For the purposes of subsection (4)(a) a property is an eligible property unless it falls within a description specified in an order made by the Secretary of State.

Consultation

2

(1) This section applies for the purposes of this Chapter.

(2) The occupier or owner who makes the arrangement referred to in section 1(2) is the “improver” and the person who makes the improvements is the “green deal provider”.

(3) The person referred to in section 1(6)(a) is the “bill payer”.

(4) References to energy efficiency improvements, in relation to a property, are to—

(a) measures for improving efficiency in the use in the property of electricity, gas conveyed through pipes or any other source of energy which is specified in an order made by the Secretary of State, or

(b) measures falling within subsection (5) or (6).

(5) Measures fall within this subsection if—

(a) they are any of the following—

(i) measures for increasing the amount of electricity generated, or heat produced, by microgeneration (within the meaning given by section 26(1) of the Climate Change and Sustainable Energy Act 2006);

(ii) any other measures for increasing the amount of electricity generated, or heat produced, using low-emissions sources or technologies;

(iii) measures for reducing the consumption of such energy as is mentioned in subsection (4), and

(b) they are specified in an order made by the Secretary of State.

(6) Measures fall within this subsection if—

(a) they are installed at the property for the purpose of supplying to it any of the following types of energy—

(i) electricity generated by a generating station operated for the purposes of producing heat, or a cooling effect, in association with electricity;

(ii) heat produced in association with electricity or steam produced from (or air or water heated by) such heat;

(iii) any gas or liquid subjected to a cooling effect produced in association with electricity, and

(b) they are specified in an order made by the Secretary of State.

(7) For the purposes of subsection (5)(a)(ii) electricity is generated, or heat is produced, using low-emissions sources or technologies if it is generated, or produced, by plant which relies wholly or mainly on a source of energy or a technology mentioned in section 26(2) of the Climate Change and Sustainable Energy Act 2006.

(8) For the purposes of subsection (6) “generating station” and “supplying” are to be read in accordance with section 64(1) of the Electricity Act 1989.

(9) “Energy” (except in this section), “energy bill”, “occupier”, “owner” and “relevant energy supplier” have the meaning given in regulations made by the Secretary of State.

(10) Regulations under subsection (9) may also make provision as to the circumstances in which a person who is not a bill payer for the purposes of this Chapter may be treated as a bill payer for those purposes.

Framework regulations

3

(1) The Secretary of State must by regulations establish a scheme making provision for the Secretary of State—

(a) to authorise persons to act as green deal assessors, green deal providers or green deal installers in connection with green deal plans (either individually or through membership of a body specified in, or authorised under, the scheme);

(b) to regulate the conduct of those assessors, providers or installers (“green deal participants”).

(2) Regulations under subsection (1) are referred to in this Chapter as “the framework regulations”.

(3) The scheme established by the framework regulations may, in particular, make provision—

(a) requiring the payment of a fee in connection with initial or continued authorisation under the scheme;

(b) for the establishment and maintenance of a register of green deal participants and of persons from whom authorisation under the scheme has been withdrawn;

(d) for the issuing, revision or revocation of a code of practice;

(e) requiring green deal participants to comply with the code of practice as a condition of their authorisation;

(f) requiring green deal providers to enter into an agreement with the holder of a licence under section 7 or 7A of the Gas Act 1986 (gas transporter, shipper or supply licences) or section 6(1)(c) or (d) of the Electricity Act 1989 (electricity distributor and supply licences) and to comply with that agreement as a condition of their authorisation;

(g) requiring that an agreement mentioned in paragraph (f) be approved by the Secretary of State before being entered into;

(h) for securing compliance with any condition or any other requirement of the scheme, code or agreement;

(i) as to the consequences of non-compliance with any such condition or requirement.

(4) The code of practice issued for the purposes of the scheme may, in particular, make provision—

(a) as to the qualification and training of green deal participants;

(b) as to their handling of queries or complaints;

(d) as to the payment of green deal assessors by green deal providers or green deal installers and the payment of green deal installers by green deal providers;

(e) as to the circumstances in which green deal assessors may charge customers for qualifying assessments of properties and as to the amount of any such charge;

(f) requiring green deal assessors to act with impartiality;

(g) as to the provision of information by green deal providers to improvers and bill payers and prospective improvers and bill payers;

(h) as to marketing in connection with green deal plans.

(5) The code may include provision for regulating a body specified or authorised for the purposes of subsection (1)(a).

(6) The scheme and the code may make different provision for different circumstances or cases or for different purposes.

(7) The provision made by the scheme or code in relation to green deal participants may also extend to matters in connection with any energy plans which are not green deal plans.

(8) The provision made for the purposes of subsection (3)(h) or (i) may, in particular, include provision enabling the Secretary of State to—

(a) cancel any liability to pay for a qualifying assessment of a property;

(b) require a green deal provider to suspend or cancel the liability of a bill payer to make payments under a green deal plan;

(d) require a green deal participant to pay compensation or a financial penalty;

(e) withdraw, or require a body specified or authorised for the purposes of subsection (1)(a) to withdraw, an authorisation to act as a green deal participant;

(f) withdraw authorisation from a body authorised for the purposes of subsection (1)(a) as a body whose members are authorised to act as green deal participants.

(9) For the purposes of this section references to a qualifying assessment are to an energy efficiency assessment which meets the requirements specified in the framework regulations and deals with such other matters as may be so specified.

(10) This section is without prejudice to the powers conferred on the Secretary of State by other provisions of this Chapter to make provision in or under the framework regulations.

(11) In this Chapter references to a code of practice include references to a code of practice which has been revised by virtue of subsection (3)(d).

Green deal plan

Assessment of property etc

4

(1) For the purposes of section 1(4)(c) the conditions as to assessment of the property and other matters are—

(a) the conditions set out in subsections (2) to (9), and

(b) such other conditions (whether relating to the green deal assessor, the green deal provider, the improver or any other person) as are specified in the framework regulations.

(2) The first condition is that a qualifying assessment of the property has been carried out by a person authorised by virtue of the framework regulations to act as a green deal assessor.

(3) The second condition is that the green deal assessor has recommended the energy efficiency improvements.

(4) The third condition is that the green deal provider has given an estimate, on the basis specified in the framework regulations, of the savings likely to be made on the energy bills for the property if the improvements are carried out.

(5) The fourth condition is that the green deal provider has given an estimate, on the basis specified in the framework regulations, of the period over which the savings mentioned in subsection (4) are likely to be made.

(6) The fifth condition is that the green deal provider is authorised by virtue of the framework regulations to act as a green deal provider.

(7) The sixth condition is that the green deal provider has offered to carry out the improvements on the basis that the whole or part of the cost will be repaid in instalments over a period after the improvements have been made.

(8) The seventh condition is that the green deal provider meets any requirement specified in the framework regulations as to the relationship between—

(a) the estimated total of the proposed instalments, and

(b) the estimate mentioned in subsection (4).

(9) The eighth condition is that the green deal provider meets any requirement specified in the framework regulations as to the relationship between—

(a) the period for which the instalments are proposed to be paid, and

(b) the period estimated under subsection (5).

(10) In subsection (2) the reference to a qualifying assessment is to be read in accordance with section 3(9).

Terms of plan etc

5

(1) For the purposes of section 1(4)(d), the conditions as to the terms of the plan and other matters are—

(a) the conditions set out in subsections (2) to (4), and

(b) such other conditions as are specified in the framework regulations.

(2) The first condition is that the plan includes the following terms—

(a) a term in which the improver agrees to—

(i) the amounts of the payments in instalments and the intervals at which, and period for which, they are payable;

(ii) such other matters as are specified in the regulations;

(b) a term in which the improver confirms that any necessary permissions or consents have been obtained in respect of the improvements;

(c) a term providing that the green deal provider may not take a charge over any person's property by way of security for payments;

(d) a term providing that the green deal plan does not prevent the bill payer from changing the intervals at which energy bills are to be paid.

(3) The second condition is that the plan does not include any of the following terms—

(a) a term making a person liable to make any payments under the green deal plan otherwise than in respect of the period for which the person is the bill payer in relation to the property;

(b) a term requiring the bill payer to make in any circumstances an early repayment of the whole or part of the amount outstanding under the green deal plan (except in accordance with the framework regulations or regulations under section 34, or provision made under them);

(c) a term providing for money to be advanced to the improver (except in accordance with the framework regulations or provision made under them).

(4) The third condition is that the agreements mentioned in paragraph (a) of subsection (2) and the permissions and consents mentioned in paragraph (b) of that subsection have not been withdrawn before the end of the period of 14 days beginning with the last day on which they were given.

(5) The conditions which may be specified in the framework regulations by virtue of subsection (1)(b) include, in particular—

(a) a condition that the plan includes a term so specified enabling the early repayment of the whole or part of the amount outstanding under the plan and making provision as to the calculation of the amount payable and any fee,

(b) a condition that the plan includes a term so specified guaranteeing the improvements and making provision as to who is to benefit from the guarantee,

(c) a condition that the plan includes a term so specified as to how any problems with the improvements installed, or arising in connection with the installation of them, are to be dealt with, and

(d) a condition requiring the agreements mentioned in subsection (2)(a) to be in the form specified in the framework regulations.

(6) References in this section to the agreements mentioned in subsection (2)(a) include references to the consent required by virtue of section 6(2)(a).

Consents and redress etc

6

(1) The framework regulations may make provision for dealing with cases where—

(a) at the time when a plan is entered into the improver and the bill payer are different persons;

(b) the bill payer at the time when a plan is entered into is a different person from the bill payer at any subsequent time (a “subsequent bill payer”).

(2) Provision which may be made by virtue of subsection (1) includes—

(a) provision requiring the term included in the plan by virtue of section 5(2)(a)(i) to be one to which the bill payer mentioned in subsection (1)(a) has consented, and

(b) provision as to the terms of the plan which are to bind or benefit that bill payer or a subsequent bill payer.

(3) Subsection (1) is subject to section 1(6).

(4) The framework regulations may make provision for the purpose of providing redress in cases where a permission or consent mentioned in section 5(2)(b) was not obtained or was improperly obtained.

(5) Provision included in framework regulations by virtue of subsection (4) may, in particular, enable the Secretary of State to—

(a) require a green deal provider to suspend or cancel the liability of a bill payer to make payments under a green deal plan;

(b) require a green deal provider to refund any such payments that have already been made;

(c) require an improver to pay compensation to the green deal provider in respect of the suspension, cancellation or refund.

Installation of improvements

7

(1) For the purposes of section 1(5)(a) improvements are installed in accordance with this section if the following three conditions are met.

(2) The first condition is that the person carrying out the installation of the improvements is authorised by virtue of the framework regulations to act as a green deal installer.

(3) The second condition is that any product installed in making the improvements—

(a) meets the standard specified in the code of practice in relation to the product or description of product, or

(b) is listed in a document which—

(i) is issued by the Secretary of State or a person authorised by the Secretary of State in connection with the code, and

(ii) is referred to in the code as listing the products which are to be taken as meeting the required standard.

Reading this document does not replace reading the official text published on legislation.gov.uk. Contains public sector information licensed under the Open Government Licence v3.0. We assume no responsibility for any inaccuracies arising from the conversion of the original CLML XML to this format.