Amendments proposed to the Utilities Bill - continued House of Commons

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Modification of standard conditions of gas licences

   

Mrs Helen Liddell

NC23

To move the following Clause:—

    '(1) In section 8(7) of the 1986 Act (standard conditions of licences to be incorporated in gas licences), after "such that" there is inserted—

            "(a) the licence holder would not be unduly disadvantaged in competing with other holders of a licence under that subsection; and

            (b)".

    (2) In section 23 of the 1986 Act (modification of conditions by agreement), for subsection (6) there is substituted—

            "(6) The Authority shall not make any modifications under subsection (1)(a) unless the licence holder has consented to the modifications and, in the case of standard conditions of a licence under subsection (1) or (2) of section 7A, the Authority is of the opinion that the modifications—

            (a) are requisite to meet the circumstances of the particular case; and

            (b) are such that—

                (i) the licence holder would not be unduly disadvantaged in competing with other holders of licences under that subsection; and

                (ii) no other holder of such a licence would be unduly disadvantaged in competing with other holders of such licences (including the holder of the licence being modified).

            (6A) The modification under subsection (1)(a) of part of a standard condition of a licence shall not prevent any other part of the condition from continuing to be regarded as a standard condition for the purposes of this Part."

    (3) For subsections (7) to (9) of that section there is substituted—

            "(7) The Authority may not under subsection (1)(b) make any modifications of the standard conditions of any licences unless—

            (a) no notice of objection to those modifications is given to the Authority within the time specified in the notice under subsection (3) by any relevant licence holder;

            (b) if one or more relevant licence holders give notice of objection to the Authority within that time—

                (i) the proportion (expressed as a percentage) of the relevant licence holders who have given notice of objection is less than such percentage as may be prescribed; or

                (ii) the percentage given by subsection (8) is less than such percentage as may be prescribed;

            (c) subsection (10) applies to the case.

            (8) The percentage given by this subsection is the proportion (expressed as a percentage) of the relevant licence holders who have given notice of objection, weighted according to their market share in such manner as may be prescribed."'.

    (4) For subsection (12) of that section there is substituted—

            "(12) In this section—

            "prescribed" means prescribed by order made by the Secretary of State;

            "relevant licence holder", in relation to proposed modifications under subsection (1)(b) of standard conditions of licences of any type, means the holder of a licence of that type which-

                (a) is to be modified under the proposals by the inclusion of any new standard condition; or

                (b) includes any standard conditions to which the proposals relate, other than standard conditions which are not in effect (by virtue of anything done under section (Standard conditions of gas licences)(1) of the Utilities Act 2000) at the time specified in the notice under subsection (3).

            (13) A statutory instrument containing an order under this section shall not be made unless a draft of the instrument has been laid before and approved by a resolution of each House of Parliament.".


Electricity licence modification references

   

Mrs Helen Liddell

NC15

To move the following Clause:—

    '.—(1) Section 12 of the 1989 Act (licence modification references to the Competition Commission) is amended as follows.

    (2) For subsection (1) there is substituted—

            "(1) The Authority may make to the Competition Commission a reference which is so framed as to require the Commission to investigate and report on the questions—

            (a) whether any matters which relate to the carrying on of activities authorised or regulated by a particular licence and which are specified in the reference operate, or may be expected to operate, against the public interest; and

            (b) if so, whether the effects adverse to the public interest which those matters have or may be expected to have could be remedied or prevented by modifications of the conditions of the licence.

            (1A) The Authority may make to the Competition Commission a reference which is so framed as to require the Commission to investigate and report on the questions—

            (a) whether any matters which relate to the carrying on of activities authorised or regulated by licences of any type mentioned in section 6(1), and which are specified in the reference operate, or may be expected to operate, against the public interest; and

            (b) if so, whether the effects adverse to the public interest which those matters have or may be expected to have could be remedied or prevented by modifications of the standard conditions of licences of that type.".

    (3) In subsection (3)(b), for "conditions of the licence" there is substituted "relevant conditions".

    (4) In subsection (4), after "licence" at the end of paragraph (a) there is inserted "or, as the case may be, the relevant licence holders and the Council".

    (5) In subsection (5), for "this section" there is substituted "subsection (1A)".

    (6) After subsection (6) there is inserted—

            (6A) In this section and sections 13 and 14 below—

            "relevant conditions"—

                (a) in relation to a reference under subsection (1), means the conditions of the licence to which the reference relates; and

                (b) in relation to a reference under subsection (1A), means the standard conditions of the licences to which the reference relates; and

            "relevant licence holder" means the holder of a licence to which a reference under subsection (1A) relates.".'.


Reports on modification references

   

Mrs Helen Liddell

NC16

To move the following Clause:—

    '(1) Section 13 (reports on modification references) of the 1989 Act is amended as follows.

    (2) In subsection (1)(c), for "conditions of the licence" there is substituted "relevant conditions".

    (3) In subsection (5)—

      (a) in paragraph (a), for the words from "such" to "relates" there is substituted "a report on a reference under section 12(1), send a copy of it to the licence holder"; and

      (b) in paragraph (b), for the words "publish the report" there is substituted "send another copy to the Council and publish that other copy".

    (4) After subsection (5) of that section there is inserted—

            "(5A) Subject to subsection (6), the Authority shall—

            (a) on receiving a report on a reference under section 12(1A), send a copy of it to the Secretary of State; and

            (b) not less than 14 days after that copy is received by the Secretary of State—

                (i) send another copy to the Council and to each relevant licence holder; and

                (ii) not less than 24 hours after complying with sub-paragraph (i) above, publish the copy sent to the Council in such manner as it considers appropriate for bringing the report to the attention of persons likely to be affected by it.".

    (5) In subsection (6) of that section, for the words from "paragraph (b)" to the end there is substituted "subsection (5) or (5A), direct the Authority to exclude that matter from the copy of the report, or (as the case may be) each copy of the report, to be sent and published as mentioned in paragraph (b) of that subsection.".'.


Modification following report

   

Mrs Helen Liddell

NC17

To move the following Clause:—

    '(1) Section 14 of the 1989 Act (modification following report) is amended as follows.

    (2) In subsection (1), for "the conditions of the licence" and "the conditions of that licence" there is substituted "the relevant conditions".

    (3) After subsection (1) there is inserted—

            "(1A) Where at any time it modifies under subsection (1) the standard conditions of licences of any type in consequence of a reference under section 12(1A), the Authority may make such incidental and consequential modifications as it considers necessary or expedient of any conditions of licences of that type granted before that time.".

    (4) In subsection (4)(b) after "licence" there is inserted "or, as the case may be, the relevant licence holders".

    (5) After subsection (4) there is inserted—

    "(5) The modification under subsection (1) of part of a standard condition of a particular licence in consequence of a reference under section 12(1) shall not prevent any other part of the condition from continuing to be regarded as a standard condition for the purposes of this Part.

    (6) Where the Authority modifies the standard conditions of licences of any type as mentioned in subsection (1A), the Authority—

      (a) shall also make (as nearly as may be) the same modifications of those conditions for the purposes of their incorporation in licences of that type granted after that time; and

      (b) shall publish the modifications made for those purposes in such manner as it considers appropriate."'.


Modification by order under other enactments

   

Mrs Helen Liddell

NC18

To move the following Clause:—

    '.—(1) Section 15 of the 1989 Act (modification of licences by order under enactments other than the 1989 Act) is amended as follows.

    (2) In subsection (1), for "the conditions of a licence" there is substituted "the conditions of a particular licence, or the standard conditions of licences of any type mentioned in section 6(1),".

    (3) After subsection (2) there is inserted—

            "(2A) The modification under subsection (1) of part of a standard condition of a particular licence shall not prevent any other part of the condition from continuing to be regarded as a standard condition for the purposes of this Part.

            (2B) Where the Secretary of State modifies under subsection (1) the standard conditions of licences of any type—

            (a) he shall also make (as nearly as may be) the same modifications of those conditions for the purposes of their incorporation in licences of that type granted after that time; and

            (b) he may, after consultation with the Authority, make such incidental or consequential modifications as he considers necessary or expedient of any conditions of any licence of that type granted before that time.

            (2C) Where at any time the Secretary of State modifies standard conditions under subsection (2B)(a) for the purposes of their incorporation in licences granted after that time, he shall publish those modifications in such manner as he considers appropriate.".

    (4) In subsection (2)(a), after "transmission" there is inserted ", distribution".'.

    (5) In subsection (2)(b), for the words from "and" to the end of the paragraph there is substituted "and at least one of the two or more enterprises—

                (i) which ceased to be distinct enterprises; or

                (ii) in the application of that provision as it has effect by virtue of section 75(4)(e) of that Act, which would cease to be distinct enterprises,

            was or, as the case may be, is engaged in the carrying on of activities authorised or regulated by a licence.".'

 
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