Utilities Bill - continued        House of Commons
PART I, GAS AND ELECTRICITY - continued
Obligations of electricity distributors - continued

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Power to require security.     38. - (1) Section 20 of the 1989 Act (power to require security) is amended as follows.
 
      (2) For subsection (1) there is substituted-
 
 
    "(1) Subject to the following provisions of this section, an electricity distributor may require any person who requests a connection in pursuance of section 16(1) to give him reasonable security for the payment to him of all money which may become due to him in respect of making the connection.
 
      (1A) If a person fails to give any security required under subsection (1), or the security given has become invalid or insufficient, the electricity distributor may if he thinks fit-
 
 
    (a) refuse to make the connection, or provide the line or plant, for so long as the failure continues; or
 
    (b) cease maintaining the connection."
      (3) In subsection (3), for "public electricity supplier" and "supplier" (in both places) there is substituted respectively "electricity distributor" and "distributor".
 
      (4) Subsections (2) and (4) shall cease to have effect.
 
Additional terms of connection.     39. For section 21 of the 1989 Act (additional terms of connection) there is substituted-
 
 
"Additional terms of connection.     21. An electricity distributor supplier may require any person who requests a connection in pursuance of section 16(1) above to accept in respect of the making of the connection-
 
    (a) any restrictions which must be imposed for the purpose of enabling the distributor to comply with regulations under section 29; and
 
    (b) any terms restricting any liability of the distributor for economic loss resulting from negligence or breach of any contractual duty of care which are specified in as order made by the Secretary of State as a term it is reasonable for persons his description to be required to accept."
General duties of electricity distributors.     40. In section 9 of the 1989 Act (general duties of licence holders), for subsection (1) there is substituted-
 
 
    "(1) It shall be the duty of an electricity distributor-
 
 
    (a) to develop and maintain an efficient, co-ordinated and economical system of electricity distribution;
 
    (b) to facilitate competition in the supply and generation of electricity."
Powers of licence holders.     41. - (1) Section 10 of the 1989 Act (powers of licence holders) is amended as follows.
 
      (2) In subsection (1), in paragraph (a) the words "a public electricity supplier or" shall cease to have effect and, in paragraph (b) after "to" (in the second place it appears) there is substituted "an electricity distributor or".
 
      (3) In subsection (3), for "A licence under section 6(1)(a) above" there is substituted "A generation licence".
 
      (4) In subsection (4), for "A licence under paragraph (b) or (c) of section 6(1) above" there is substituted "A transmission licence".
 
 
Electricity performance standards
Standards of performance in individual cases.     42. - (1) In section 39 of the 1989 Act-
 
 
    (a) in subsection (2)(a), after "section" there is inserted "or their rights under section 39A"; and
 
    (b) subsections (5), (5A) and (6) shall cease to have effect.
      (2) After section 39 of the 1989 Act there is inserted-
 
 
"Standards of performance in individual cases: electricity distributors.     39A. - (1) The Authority may-
 
    (a) with the consent of the Secretary of State;
 
    (b) after consulting-
 
      (i) electricity distributors and electricity suppliers;
 
      (ii) persons or bodies appearing to the Authority to be representative of persons likely to be affected by the regulations; and
 
    (c) after arranging for such research as the Authority considers appropriate with a view to discovering the views of a representative sample of persons likely to be so affected and considering the results,
  make regulations prescribing such standards of performance in connection with the activities of electricity distributors, so far as affecting customers or potential customers of electricity suppliers, as in the Authority's opinion ought to be achieved in individual cases.
 
      (3) If an electricity distributor fails to meet a prescribed standard, he shall make to any person who is affected by the failure and is of a prescribed description such compensation as may be determined by or under the regulations.
 
      (4) The regulations may-
 
 
    (a) prescribe circumstances in which electricity distributors are to inform customers or potential customers of electricity suppliers of their rights under this section;
 
    (b) prescribe such standards of performance in relation to any duty arising under paragraph (a) as, in the Authority's opinion, ought to be achieved in all cases;
 
    (c) make provision as to the manner in which compensation under this section is to be made;
 
    (d) prescribe circumstances in which electricity distributors are to be exempted from any requirements of the regulations or this section; and
 
    (e) if the Authority is of the opinion that the differences are such that no electricity distributor would be unduly disadvantaged in competing with other electricity distributors, make different provision with respect to different electricity distributors.
      (5) Provision made under subsection (4)(c) may-
 
 
    (a) require or permit compensation to be made on behalf of electricity distributors by electricity suppliers to customers or potential customers; and
 
    (b) require electricity suppliers to provide services to electricity distributors in connection with the making of compensation under this section.
      (6) The making of compensation under this section in respect of any failure to meet a prescribed standard shall not prejudice any other remedy which may be available in respect of the act or omission which constituted that failure.
 
Standards of performance in individual cases: disputes.     39B. - (1) Any dispute arising under section 39 or 39A or regulations made under either of those sections-
 
 
    (a) may be referred to the Authority by either party or, with the agreement of either party, by the Council; and
 
    (b) on such a reference, shall be determined by order made by the Authority or by such other person as may be prescribed.
      (2) A person making an order under subsection (1) shall include in the order his reasons for reaching his decision with respect to the dispute.
 
      (3) The practice and procedure to be followed in connection with any such determination shall be such as may be prescribed.
 
      (4) An order under subsection (1) shall be final and shall be enforceable-
 
 
    (a) in England and Wales, as if it were a judgment of a county court; and
 
    (b) in Scotland, as if it were an extract registered decree arbitral bearing a warrant for execution issued by the sheriff."
Overall standards of performance.     43. After section 40 of the 1989 Act there is inserted-
 
 
"Overall standards of performance: electricity distributors.     40A. - (1) The Authority may from time to time-
 
    (a) determine such standards of overall performance in connection with the activities of electricity distributors as, in its opinion, ought to be achieved by them; and
 
    (b) arrange for the publication, in such form and in such manner as it considers appropriate, of the standards so determined.
      (2) Different standards may be determined for different electricity distributors if the Authority is of the opinion that the differences are such that no electricity distributor would be unduly disadvantaged in competing with other electricity distributors.
 
      (3) It shall be the duty of every electricity distributor to conduct his business in such a way as can reasonably be expected to lead to his achieving the standards set under this section."
 
Standards of performance: procedures.     44. After section 40A of the 1989 Act (which is inserted by section 43 above) there is inserted-
 
 
"Procedures for prescribing or determining standards of performance.     40B. - (1) Before prescribing standards of performance in regulations under section 39 or 39A, or determining standards of performance under section 40 or 40A, the Authority shall-
 
    (a) arrange for such research as the Authority considers appropriate with a view to discovering the views of a representative sample of persons likely to be affected and considering the results;
 
    (b) publish a notice of its proposals in accordance with subsections (2) and (3) and consider any representations which are duly made in respect of those proposals; and
 
    (c) consult the Council and other persons or bodies mentioned in subsection (4).
      (2) The notice required by subsection (1)(b) is a notice-
 
 
    (a) stating that the Authority proposes to prescribe or determine standards of performance and setting out the standards of performance proposed;
 
    (b) stating the reasons why it proposes to prescribe or determine those standards of performance; and
 
    (c) specifying the time (not being less than 28 days from the date of publication of the notice) within which representations with respect to the proposals may be made.
      (3) A notice required by subsection (1)(b) shall be published in such manner as the Authority considers appropriate for the purpose of bringing it to the attention of those likely to be affected by the proposals.
 
      (4) The persons or bodies to be consulted by the Authority under subsection (1)(c) are-
 
 
    (a) electricity suppliers (in the case of standards of performance under section 39 or 40) or electricity distributors and electricity suppliers (in the case of standards of performance under section 39A or 40A); and
 
    (b) persons or bodies appearing to the Authority to be representative of persons likely to be affected by the regulations or determination.
      (5) The Authority shall make arrangements for securing that notices under subsection (1)(b), regulations under section 39 or 39A and determinations under section 40 or 40A are made available to the public by whatever means it considers appropriate."
 
 
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