Climate Change and Sustainable Energy Act 2006

The Climate Change and Sustainable Energy Act 2006 (c 19) is an Act of the Parliament of the United Kingdom which aims to boost the number of heat and electricity microgeneration installations in the United Kingdom, so helping to cut carbon emissions and reduce fuel poverty.

The Act was piloted through the House of Commons as a Private Member's Bill by Mark Lazarowicz, MP.

The Rt Hon Eric Forth MP, a well known opponent of Private Members' Bills who often fillibustered them in Parliament, died during the passage of this bill through Parliament, after having prolonged the debate during Third Reading and Report for a number of days.

Climate Change and Sustainable Energy Act 2006[1]
Long titleAn Act to make provision about the reduction of emissions of greenhouse gases, the alleviation of fuel poverty, the promotion of microgeneration and the use of heat produced from renewable sources, compliance with building regulations relating to emissions of greenhouse gases and the use of fuel and power, the renewables obligation relating to the generation and supply of electricity and the adjustment of transmission charges for electricity; and for connected purposes.
Citation2006 c 19
Royal assent21 June 2006
History of passage through Parliament
Text of statute as originally enacted
Revised text of statute as amended

Microgeneration in the United Kingdom

Microgeneration technologies are seen as having considerable potential by the Government. Microgeneration involves the local production of electricity by homes and businesses from low-energy sources including small scale wind turbines, ground source heat pumps and solar electricity installations.

The Government's own microgeneration strategy was launched in March 2006[2] was seen as a disappointment by many commentators [2]. In contrast, the Climate Change and Sustainable Energy Act has been viewed as a positive step.[3]

The Act

The principal measures in the act are to:

  • require the Secretary of State (DEFRA) to report annually on greenhouse gas emissions during the year plus steps taken to cut them;
  • require local authorities to take into account the content of a new 'energy measures report' that the Secretary of State will be required to publish within one year from the signing of the Act;
  • require the Secretary of State to set national microgeneration targets no later than 31 March 2009;
  • require the Secretary of State to expand the annual reports on progress towards sustainable energy aims (under the Sustainable Energy Act 2003), to include:
    • progress in meeting the microgeneration targets;
    • progress in meeting the target (under the Housing Act 2004) for the energy efficiency of residential accommodation in England;
    • progress in meeting the target (under the Housing Act 2004) for the emissions of carbon dioxide in England;
    • progress in meeting the target (under the Housing Act 2004) for the number of households in which one or more persons are living in fuel poverty;
    • things done to promote community energy projects;
    • things done to promote the use of heat from renewable sources.
  • give the Secretary of State the power to impose a duty on energy companies to buy energy from microgeneration schemes, if the industry fails to create a voluntary scheme within one year.
  • introduce a statutory review that, it is hoped, may change permitted development orders to allow certain domestic microgeneration without the need for planning permission. A consultation period on the proposed changes ends on June 27, 2007.[4]
  • make changes to the Building Regulations to:
    • include microgeneration within their scope;
    • increasing to two years the time limit for prosecuting contraventions of the Building Regulations relating to energy use, energy conservation or carbon emissions;
    • require the Secretary of State to report on compliance with these aspects of the Building Regulations and steps proposed to increase compliance.
  • change the energy efficiency provisions of the Gas Act 1986 and the Electricity Act 1989 to carbon emission based targets;
  • require the Secretary of State to report on the contribution that can be made by dynamic demand technology to cutting greenhouse gas emissions;
  • require the Secretary of State to promote community energy projects;
  • permit parish councils and community councils to incur expenditure (under the Local Government Act 1972) to encourage or promote microgeneration, biomass production, biomass fuels, and energy efficiency measures;
  • give a duty to the Secretary of State to promote the use of heat from renewable sources;
  • modify the Electricity Act 1989 to enable Renewables Obligation Certificates to be issued to a wider range of people and organisations;
  • modify the Energy Act 2004 with the aim of capping charges for the transmission of renewable electricity produced in the Scottish islands, so reducing production costs and encouraging wind power and wave power.

Microgeneration technologies

For the purposes of the Act, microgeneration technologies include:

See also


  1. ^ The citation of this Act by this short title is authorised by section 29(1) of this Act.
  2. ^ "Archived copy". Archived from the original on 2006-06-18. Retrieved 2006-07-25.CS1 maint: Archived copy as title (link)
  3. ^ [1].
  4. ^ "Changes to Permitted Development: Consultation Paper 1 - Permitted Development Rights for Householder Microgeneration". Department for Communities and Local Government. April 2007. Archived from the original on 2007-06-06. Retrieved 2007-05-01.

External links


British Energy Efficiency Federation

The British Energy Efficiency Federation (or BEEF) was founded in 1996 by the United Kingdom Government to provide a forum for consultation between existing industry associations in the energy sector.

Carbon Emission Reduction Target

The Carbon Emission Reduction Target (CERT) in the United Kingdom (formerly the Energy Efficiency Commitment) is a target imposed on the gas and electricity transporters and suppliers under Section 33BC of the Gas Act 1986 and Section 41A of the Electricity Act 1989, as modified by the Climate Change and Sustainable Energy Act 2006The original Energy Efficiency Commitment 1 (2002–2005) program required that all electricity and gas suppliers with 15,000 or more domestic customers must achieve a combined energy saving of 62 TWh by 2005 by assisting their customers to take energy-efficiency measures in their homes: suppliers had to achieve at least half of their energy savings in households on income-related benefits and tax credits.

In the second phase of the Energy Efficiency Commitment (2005–2008) scheme, energy saving targets were raised to 130 TWh suppliers, and here suppliers with at least 50,000 domestic customers (including affiliated licenses) were eligible for an obligation.

The third phase of CERT (previously known as Energy Efficiency Commitment 3) originally ran from 2008 to 2011 and increased the previous targets to 154 MtC. A consultation document was published alongside the 2007 Energy White Paper, and responses were invited by 15 August 2007. The new scheme is regulated by Electricity and Gas (Carbon Emissions Reduction) Order 2008 (S.I. 2008/188). In 2009 the UK Government increased the emission reduction target by a further 20% to 185 MtC. In 2010 the Government increased the target to 293 MtC, to be achieved over an extended period running until the end of 2012 (see The Electricity and Gas (Carbon Emissions Reduction) (Amendment) Order 2010: S.I.2010/1958).

From 2013 CERT will be superseded by the Energy Company Obligation (ECO)

Climate and energy

The correlation between climate and energy rests on known causal relationships between human population growth, rising energy consumption and land use and the resulting greenhouse gas emissions and climate change.

The concern for climate change control and mitigation has consequently spurred policy makers and scientists to treat energy use and global climate as an inextricable nexus with effects also going in reverse direction and create various initiatives, institutions and think tanks for a high-level treatment of the relationships:

Major Economies Forum on Energy and Climate Change (global)

Americas Energy and Climate Symposium (Americas)

Ministry of Climate, Energy and Building (Denmark)

Business for Innovative Climate and Energy Policy (US)

United States House Select Committee on Energy Independence and Global Warming (US)

European Union climate and energy package (EU)

Department of Energy and Climate Change (UK)

White House Office of Energy and Climate Change Policy (US)

Department of Climate Change and Energy Efficiency (Australia)

Minister for the Environment and Energy (Australia)

Climate Change and Sustainable Energy Act 2006

Wuppertal Institute for Climate, Environment and Energy (Germany)

Center for Climate and Energy Solutions (UK)

City of Oakland Energy and Climate Action Plan (US)

Energy and Climate Change Select Committee (UK)

San Diego Journal of Climate and Energy Law (US)

Renewable Energy Sources and Climate Change Mitigation (United Nations)

Coal Authority

The Coal Authority is a non-departmental public body of the United Kingdom government.

Energy Institute

The Energy Institute (EI) is a UK chartered professional membership body.

Energy Retail Association

The Energy Retail Association (ERA) was a trade association which promoted the interests of electricity and gas retailers in the domestic market in Great Britain, formed in 2003. In April 2012 it merged with the Association of Electricity Producers and the UK Business Council for Sustainable Energy to become Energy UK.


Expro (officially Expro International Group) is an international oil and gas service company, specializing in well flow management, headquartered in Reading, United Kingdom.

Franco-British Nuclear Forum

The first meeting of the Franco–British Nuclear Forum was held in Paris in November 2007, chaired by the Minister for Energy and the French Industry Minister. The working groups are focusing on specific areas for collaboration. A follow-up meeting on the issue in London was planned for March 2008,[1] but did not take place.[2]

Murco Petroleum

Murco Petroleum Limited is a United Kingdom based oil refining company. It was set up by Murphy Oil Corporation in 1960. The company owns a forecourt based chain of Costcutter convenience stores. In 1981, Murco purchased a 30% stake in Amoco's Milford Haven Refinery, and in 2007, they purchased the remaining 70%.In November 2014, it was announced that Milford Haven Refinery was to close, with the loss of around 350 jobs. In October 2008, they purchased Petrol Express Limited for £52 million from its parent company GNE Group, and the 63 sites brought Murco's total number of petrol stations to 230.

New Electricity Trading Arrangements

New Electricity Trading Arrangements (NETA) is the system of market trading arrangements under which electricity is traded in the United Kingdom's wholesale electricity market as of 27 March 2001. The arrangements provided that parties could trade off their imbalances close to real time.

Opus Energy

Opus Energy Limited supplies gas and electricity to businesses across the United Kingdom. It purchases electricity from wind, solar, hydro, and anaerobic digestion generators, and provides support to develop energy-generating sites. It is headquartered in Northampton, United Kingdom with an additional office in Oxford.

Regal Petroleum

Regal Petroleum plc is a petroleum company based in London with assets in Romania, Ukraine, Greece, and Egypt. It was founded by Frank Timiş in November 1996, and is listed on the London Alternative Investment Market.

Renewable energy in the United Kingdom

Renewable energy in the United Kingdom can be divided into production for electricity, heat, and transport.

From the mid-1990s renewable energy began to contribute to the electricity generated in the United Kingdom, building on a small hydroelectric generating capacity. This has been surpassed by wind power, for which the UK has large potential resources.

Interest has increased in recent years due to new UK and EU targets for reductions in carbon emissions and commercial incentives for renewable electricity such as the Renewable Obligation Certificate scheme (ROCs) and Feed in tariffs (FITs), as well as for renewable heat such as the Renewable Heat Incentive. The 2009 EU Renewable Directive established a target of 15% reduction in total energy consumption in the UK by 2020.

In 2017 renewable production generated:

27.9% of total electricity

7.7% of total heat energy

4.6% of total transport energy

Score Group plc

Score Group plc is an international engineering business based in Peterhead, Scotland.

Sunbury Research Centre

The Sunbury Research Centre -- also known as ICBT Sunbury -- is a main research institute of BP in north-east Surrey.

UK Power Networks

UK Power Networks is a distribution network operator for electricity covering South East England, the East of England and London. It manages three licensed distribution networks (Eastern Power Networks PLC, South Eastern Power Networks PLC and London Power Networks PLC) which together cover an area of 30000 square kilometres and approximately eight million customers.

In 2014 UK Power Networks was awarded £25 million from the electricity regulator Ofgem's Low Carbon Networks Fund for the Low Carbon London project. In 2011 it was awarded £6.7 million by Ofgem for another project, Flexible Plug and Play, which is researching new ways, technical and commercial, to connect renewable energy to the distribution network in Cambridgeshire.

As well as the three distribution arms UK Power Networks also operates UK Power Networks Services Holdings Limited, which develops and maintains electrical networks for clients including London Underground, Heathrow and Stansted airports, Docklands Light Railway and Canary Wharf.

United Kingdom Climate Change Programme

The United Kingdom's Climate Change Programme was launched in November 2000 by the British government in response to its commitment agreed at the 1992 United Nations Conference on Environment and Development (UNCED). The 2000 programme was updated in March 2006 following a review launched in September 2004.

In 2008, the UK was the world's 9th greatest producer of man-made carbon emissions, producing around 1.8% of the global total generated from fossil fuels.


WesternGeco is a geophysical services company. It is headquartered in the Schlumberger House on the property of London Gatwick Airport in Crawley, West Sussex, in Greater London.

Western Power Distribution

Western Power Distribution is the trading identity of four electricity distribution companies - WPD South West (operating in South West England), WPD South Wales (operating in South Wales) and WPD Midlands (operating in East Midlands and West Midlands). All of the companies act as the distribution network operator for their respective regions, and are registered in Bristol, England. Western Power Distribution serves approximately 7.7 million customers over its combined distribution areas.

Western Power Distribution is a subsidiary of the American utility corporation PPL.

It should not be confused with WPD, a wind farm company in north-western Europe, or Western Power Corporation, an electricity distributor in Australia.

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