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| Modification of conditions of particular licence. |
33. - (1) In section 11 of the 1989 Act (modification of licence conditions by agreement), for subsection (1) there is substituted-
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"(1) Subject to the following provisions of this section, the Authority may modify the conditions of a particular licence.
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(1A) The Authority may not make any modifications under this section unless the licence holder has consented to the modifications and, in the case of standard conditions of the licence, the Authority is of the opinion that the modifications-
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(a) are requisite to meet the circumstances of the particular case; and |
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(i) the licence holder would not be unduly disadvantaged in competing with other holders of licences of that type; and
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(ii) no other holder of a licence of the same type would be unduly disadvantaged in competing with other holders of such licences (including the holder of the licence being modified)."
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(2) After subsection (4) of that section there is inserted-
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"(5) The modification under this section 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."
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| Modification of standard conditions of licences. |
34. After section 11 of the 1989 Act there is inserted-
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| "Modification of standard conditions of licences. |
11A. - (1) Subject to the following provisions of this section, the Authority may modify the standard conditions of licences of any type mentioned in section 6(1).
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(2) Where at any time the Authority modifies the standard conditions of licences of any type under this section the Authority may make such incidental or consequential modifications as it considers necessary or expedient of any conditions of any licence of that type.
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(3) Before making any modifications under this section, the Authority shall give notice-
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(a) stating that it proposes to make the modifications and setting out their effect; |
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(b) stating the reasons why it proposes to make the modifications; and |
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(c) specifying the time (not being less than 28 days from the date of publication of the notice) within which representations or objections with respect to the proposed modifications may be made;
and shall consider any representations or objections which are duly made and not withdrawn. |
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(4) A notice under subsection (3) shall be given-
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(a) by publishing the notice in such manner as the Authority considers appropriate for the purpose of bringing the notice to the attention of persons likely to be affected by the making of the modifications; and |
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(b) by sending a copy of the notice to each relevant licence holder, to the Secretary of State and to the Council. |
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(5) If, within the time specified in the notice under subsection (3), the Secretary of State directs the Authority not to make any modification, the Authority shall comply with the direction.
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(6) The Authority may not under this section make any modifications of the standard conditions of licences of any type unless-
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(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; |
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(b) if one or more relevant licence holders give notice of objection to the Authority within that time- |
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(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; and
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(ii) the percentage given by subsection (7) is less than such percentage as may be prescribed; or
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(c) subsection (8) applies to the case. |
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(7) 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.
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(8) This subsection applies where the Authority is satisfied that-
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(a) the effect of the standard conditions is such as to impose a burden affecting relevant licence holders in the carrying on of activities to which the modifications relate; |
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(b) the modifications would remove or reduce the burden without removing any necessary protection; and |
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(c) the modifications are such that no holder of a licence of the type in question would be unduly disadvantaged in competing with other holders of such licences. |
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(9) Where the Authority modifies the standard conditions of licences of any type-
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(a) the Authority 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 |
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(b) the Authority shall publish the modifications in such manner as it considers appropriate. |
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(10) In this section-
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"prescribed" means prescribed in an order made by the Secretary of State; and |
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"relevant licence holder", in relation to proposed modifications of standard conditions of licences of any type, means the holder of a licence of that type- |
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(a) which is to be modified under the proposals by the inclusion of any new standard condition; or
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(b) which includes any standard conditions to which the proposals relate, other than standard conditions which are not in effect (by virtue of standard conditions under section 32(2) of the Utilities Act 2000) at the time specified in the notice under subsection (3).
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(11) 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."
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| Electricity licence modification references. |
35. - (1) Section 12 of the 1989 Act (licence modification references to the Competition Commission) is amended as follows.
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(2) For subsection (1) there is substituted-
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"(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-
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(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 |
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(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. |
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(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-
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(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 |
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(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.". |
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(3) In subsection (3)(b), for "conditions of the licence" there is substituted "relevant conditions".
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(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".
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(5) In subsection (5), for "this section" there is substituted "subsection (1A)".
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(6) After subsection (6) there is inserted-
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"(6A) In this section and sections 13 and 14 below-
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(a) in relation to a reference under subsection (1), means the conditions of the licence to which the reference relates; and
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(b) in relation to a reference under subsection (1A), means the standard conditions of the licences to which the reference relates; and
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"relevant licence holder" means the holder of a licence to which a reference under subsection (1A) relates.". |
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| Reports on modification references. |
36. - (1) Section 13 (reports on modification references) of the 1989 Act is amended as follows.
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(2) In subsection (1)(c), for "conditions of the licence" there is substituted "relevant conditions".
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(3) In subsection (5)-
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(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 |
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(b) in paragraph (b), for "publish the report" there is substituted "send another copy to the Council and publish that other copy". |
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(4) After subsection (5) of that section there is inserted-
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"(5A) Subject to subsection (6), the Authority shall-
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(a) on receiving a report on a reference under section 12(1A), send a copy of it to the Secretary of State; and |
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(b) not less than 14 days after that copy is received by the Secretary of State- |
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(i) send another copy to the Council and to each relevant licence holder; and
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(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.".
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(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."
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| Modification following report. |
37. - (1) Section 14 of the 1989 Act (modification following report) is amended as follows.
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(2) In subsection (1), for "the conditions of the licence" and "the conditions of that licence" there is substituted "the relevant conditions".
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(3) After subsection (1) there is inserted-
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"(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.".
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(4) In subsection (4)(b) after "licence" there is inserted "or, as the case may be, the relevant licence holders".
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(5) After subsection (4) there is inserted-
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"(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.
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(6) Where the Authority modifies the standard conditions of licences of any type as mentioned in subsection (1A), the Authority-
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(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 |
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(b) shall publish the modifications made for those purposes in such manner as it considers appropriate.". |
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| Modification by order under other enactments. |
38. - (1) Section 15 of the 1989 Act (modification of licences by order under enactments other than the 1989 Act) is amended as follows.
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(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),".
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(3) After subsection (2) there is inserted-
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"(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.
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(2B) Where the Secretary of State modifies under subsection (1) the standard conditions of licences of any type-
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(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 |
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(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. |
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(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.".
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(4) In subsection (2)(a), after "transmission" there is inserted ", distribution".'.
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(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-
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(i) which ceased to be distinct enterprises; or
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(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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