The Bill goes hand in hand with the Climate Change and Sustainable Energy Bill, sponsored by Mark Lazarowicz MP which aims to promote renewable energy sources including microgeneration and renewable heat, making it cheaper and easier for people to generate their own energy. We reported on this Bill in the December issue of BSEE. Current press reports indicate that both bills have cross party support and those involved are working together to maximise the likelihood of both Bills becoming law.

Summary

The aims of the Bill are to:

• Create a system of annual reporting on energy efficiency targets particularly in relation to carbon dioxide emissions and fuel poverty.

• Remove planning obstructions to the development of domestic microgeneration making it easier for existing properties to be energy efficient.

• Amend building regulations to require energy efficiency in new properties.

• Assess the benefit and obstructions to the increased use of dynamic demand technologies.

Meeting energy efficiency targets

Under Section 217 of the Housing Act 2004 (the Act) targets were set in relation to energy efficiency in residential accommodation. The aim pursuant to the Act is to increase energy efficiency by 20 percent by 2010 based on the levels of efficiency in 2000. The Bill creates an obligation on the Secretary of State to report to parliament annually on the progress made towards achieving these targets specifically with regard to:

• Reduction in emission of carbon dioxide.

• The alleviation of fuel poverty. A person is in ‘fuel poverty’ when they live in a household on a low income and the house cannot be kept warm at a reasonable cost. This definition is set out in the Sustainable Energy Act 2003.

The aim is that this measure should have the effect of introducing standards of production in domestic equipment and improving the likelihood of meeting the s.217 Housing Act targets.

Removing planning obstructions

Under the current planning laws it is likely that if a householder wishes to install a home based energy producing device, such as a solar thermal device, they would have to apply for planning consent. This is seen as a potential barrier to many as it will increase the costs and time that must be invested to install the device.

The Bill does require an amendment to the Town and Country Planning (General Permitted Development) Order 1995 (the Order) to provide that a ‘small renewable energy development’ is classed as a permitted development within the meaning of the Order. The requirements to fall under this definition are as follows:

• The source of energy or technology must be one of the following:

- photovoltaic;

- wind;

- solar thermal; or

- a combined heat and power system

• The generation of energy by the development must be no more that 10 kilowatts.

The Secretary of State is also given the power when amending the Order to impose conditions which will need to be met in order for the development to fall within the definition. These conditions may relate to the environmental impact of the development including its appearance and possible noise issues.

Promoting microgeneration through Building Regulations

The Bill will require amendments to the Building Regulations to establish an energy efficiency rating including a minimum rating which new buildings will have to meet. The rating will be based on the estimated amount of energy generated by the building expressed as a percentage of energy use for a typical dwelling of the same type.

The Secretary of State will also be obliged when making further regulations to have regard to the desirability of promoting the availability of microgeneration in new buildings. These measures will ensure that new buildings will:

• Contain renewable and sustainable energy devices.

• Be required to produce a minimum standard of energy generation.

Dynamic Demand Technologies

Dynamic Demand Technologies, which are those technologies that have the ability to adjust their electricity consumption or output according to instantaneous power imbalances on the national electricity grid. The Bill amends the Sustainable Energy Act 2003 calling on the government to examine the carbon saving potential of household appliances which use this so-called off peak electricity. The Government must also examine any likely obstacles to its use and find ways to overcome them.

The joint promotion of this Bill together with the Climate Change and Sustainable Energy Bill aims to focus the attention of Parliament on energy use and global warming. However, it is of course uncertain whether, as a private members bill, this will receive enough parliamentary time to receive royal assent and become law. Although the second reading of the Bill did commence as planned on 11 November 2005, it was adjourned partway through and will recommence on 10 March 2006. A further update will be provided to outline the consequences, if any, of this second reading.

About George Davies Solicitors

George Davies were highly rated, in the North West, in nine different categories of the 2005 Legal 500 review and in Chambers and Partners UK Directory. They specialise in all aspects of commercial law and boast a substantial Property Department within which sits a niche Construction team with experience in a full spectrum of construction law services. The firm was commended in the Legal 500 for their strong movements forward in a variety of property and construction deals and Chambers specifically mention its achievements in Construction. The Head of Construction, Catherine Kay can be contacted on 0161 234 8861 or emailed at catherinekay@georgedavies.co.uk

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