|
| |
|
(b) | publish the modifications in such manner as it considers appropriate. |
| |
(8) | The power under subsection (1) may not be exercised after the end of the |
| |
period of eighteen months beginning with the day on which that subsection |
| |
| |
(9) | In subsection (2)(a), the reference to distribution systems is to be construed in |
| 5 |
accordance with section 4(4) of the 1989 Act. |
| |
132 | Alteration of transmission activities requiring licence |
| |
(1) | Section 4 of the 1989 Act (prohibition on unlicensed activities in connection |
| |
with supply of electricity) is amended as follows. |
| |
(2) | In subsection (1) (which lists the activities prohibited), for paragraph (b) |
| 10 |
| |
“(b) | participates in the transmission of electricity for that purpose;”. |
| |
(3) | After subsection (3) insert— |
| |
“(3A) | In subsection (1)(b) above, the reference to a person who participates in |
| |
the transmission of electricity is to a person who— |
| 15 |
(a) | co-ordinates, and directs, the flow of electricity onto and over a |
| |
transmission system by means of which the transmission of |
| |
electricity takes place, or |
| |
(b) | makes available for use for the purposes of such a transmission |
| |
system anything which forms part of it. |
| 20 |
(3B) | For the purposes of subsection (3A)(b), a person shall not be regarded |
| |
as making something available just because he consents to its being |
| |
made available by another.” |
| |
(4) | In subsection (4) (definitions for the purposes of Part 1), for the definition of |
| |
| 25 |
| “‘transmission’, in relation to electricity, means transmission by means of |
| |
| |
| ‘transmission system’ means a system which— |
| |
(a) | consists (wholly or mainly) of high voltage lines and electrical |
| |
| 30 |
(b) | is used for conveying electricity from a generating station to a |
| |
substation, from one generating station to another or from |
| |
one substation to another.” |
| |
133 | Transmission licences |
| |
(1) | In section 6 of the 1989 Act (licences authorising supply etc.), in subsection (1) |
| 35 |
(kinds of licence which may be granted), for paragraph (b) substitute— |
| |
“(b) | a licence authorising a person to participate in the transmission |
| |
of electricity for that purpose (‘a transmission licence’);”. |
| |
(2) | After subsection (6) of that section insert— |
| |
“(6A) | A transmission licence may authorise the holder to participate in the |
| 40 |
transmission of electricity in any area, or only in an area specified in the |
| |
| |
|
| |
|
| |
|
(6B) | The Authority may, with the consent of the holder of a transmission |
| |
licence, modify terms included in the licence in pursuance of subsection |
| |
| |
(3) | In section 7 (licence conditions: general), after subsection (2) insert— |
| |
“(2A) | Without prejudice to the generality of paragraph (a) of subsection (1), |
| 5 |
conditions included in a transmission licence by virtue of that |
| |
| |
(a) | require the licence holder not to carry on an activity which he |
| |
would otherwise be authorised by the licence to carry on, or |
| |
(b) | restrict where he may carry on an activity which he is |
| 10 |
authorised by the licence to carry on.” |
| |
134 | New standard conditions for transmission licences |
| |
(1) | If the Secretary of State considers it necessary or expedient to do so for the |
| |
purpose of implementing the new trading and transmission arrangements, he |
| |
may determine new standard conditions in relation to transmission licences. |
| 15 |
(2) | The Secretary of State shall publish any conditions determined under |
| |
subsection (1) in such manner as he considers appropriate. |
| |
(3) | Conditions published in accordance with subsection (2) shall be standard |
| |
conditions for the purposes of transmission licences, subject to any |
| |
modifications of the standard conditions for the purposes of licences of that |
| 20 |
| |
(a) | under Part 1 of the 1989 Act, or |
| |
| |
| after the determination under subsection (1). |
| |
(4) | The standard conditions for the purposes of transmission licences may contain |
| 25 |
| |
(a) | for any standard condition included in a transmission licence not to |
| |
have effect until brought into operation in such manner, and in such |
| |
circumstances, as may be specified in, or determined under, the |
| |
| 30 |
(b) | for the effect of any standard condition included in such a licence to be |
| |
suspended in such manner, and in such circumstances, as may be so |
| |
| |
(c) | for any standard condition included in such a licence which is |
| |
suspended to be brought back into operation in such manner, and in |
| 35 |
such circumstances, as may be so specified or determined. |
| |
(5) | In section 8A of the 1989 Act (standard conditions of licences), in subsection (1) |
| |
(incorporation in future licences of conditions which are standard conditions |
| |
by virtue of section 33(1) of the Utilities Act 2000 (c. 27)), for the words from |
| |
“section 6(1)” to “supply licences)” substitute “section 6(1)(a), (c) or (d) (that is |
| 40 |
to say, generation licences, distribution licences or supply licences)”. |
| |
(6) | In that section, after subsection (1) insert— |
| |
“(1A) | Subject to subsection (2), each condition which by virtue of section |
| |
134(3) of the Energy Act 2004 is a standard condition for the purposes |
| |
of transmission licences shall be incorporated by reference in each |
| 45 |
|
| |
|
| |
|
transmission licence granted on or after the day on which section 134(6) |
| |
of that Act comes into force.” |
| |
(7) | The power under subsection (1) may not be exercised— |
| |
(a) | after the end of the period of eighteen months beginning with the day |
| |
on which that subsection comes into force, or |
| 5 |
(b) | on or after the day on which subsections (5) and (6) come into force. |
| |
135 | Conversion of existing transmission licences |
| |
Schedule 17 (which makes provision for a licensing scheme in relation to |
| |
existing transmission licences) has effect. |
| |
136 | Grant of transmission licences |
| 10 |
(1) | If the Secretary of State considers it necessary or expedient to do so for the |
| |
purpose of implementing the new trading and transmission arrangements, he |
| |
| |
(a) | require GEMA to grant a transmission licence to such person, and on |
| |
such terms and subject to such conditions, as the direction may |
| 15 |
| |
(b) | require GEMA to refuse an application for a transmission licence. |
| |
(2) | The Secretary of State shall consult GEMA before issuing a direction under |
| |
| |
(3) | Subsection (2) may be satisfied by consultation before, as well as by |
| 20 |
consultation after, the commencement of this section. |
| |
(4) | The powers under subsection (1) may not be exercised after the end of the |
| |
period of eighteen months beginning with the day on which that subsection |
| |
| |
(5) | The power under subsection (1)(a) may only be exercised on one occasion and |
| 25 |
then only to require the grant of a single licence. |
| |
(6) | The power under subsection (1)(b) may not be exercised once the power under |
| |
subsection (1)(a) has been exercised. |
| |
137 | Duties to provide information etc. to Secretary of State |
| |
(1) | If GEMA receives an application for a transmission licence at a time when the |
| 30 |
power under section 136(1)(b) is exercisable, it shall as soon as practicable send |
| |
a copy of the application to the Secretary of State. |
| |
(2) | GEMA shall provide the Secretary of State with all such information as he may |
| |
require for the purposes of or in connection with the carrying-out of any of his |
| |
functions under this Chapter. |
| 35 |
(3) | Each holder of a licence under section 6 of the 1989 Act shall provide the |
| |
Secretary of State with all such information and other assistance as he may |
| |
require for the purposes of or in connection with the carrying-out of any of his |
| |
functions under this Chapter. |
| |
(4) | Section 105(1) of the Utilities Act 2000 (c. 27) (general restrictions on disclosure |
| 40 |
of information) does not apply to a disclosure made in pursuance of this |
| |
| |
|
| |
|
| |
|
138 | Property arrangements schemes |
| |
Schedule 18 (which makes provision about property arrangements schemes) |
| |
| |
139 | Interpretation of Chapter 1 of Part 4 |
| |
| 5 |
| “transmission licence” means a licence under section 6(1)(b) of the 1989 |
| |
| |
and references to the new trading and transmission arrangements are to be |
| |
construed in accordance with section 130. |
| |
140 | Amendments consequential on Chapter 1 of Part 4 |
| 10 |
(1) | Schedule 19 (which makes amendments consequential on the provisions of this |
| |
| |
| |
(a) | a modification under section 131, or |
| |
(b) | a scheme under Schedule 17, |
| 15 |
| is to reduce in any respect the area in which the holder of a transmission licence |
| |
may carry on activities, Schedule 4 to the 1989 Act shall have effect in relation |
| |
to him as if any reference to the activities which he is authorised by his licence |
| |
to carry on included a reference to the activities which he was previously so |
| |
| 20 |
| |
The Secretary of State may by order make in connection with the coming into |
| |
force of any provision of this Chapter such transitional provision or saving as |
| |
he considers necessary or expedient. |
| |
| 25 |
Interconnectors for electricity and gas |
| |
Electricity interconnectors |
| |
142 | Operators of electricity interconnectors to be licensed |
| |
(1) | The 1989 Act is amended as follows. |
| |
(2) | In subsection (1) of section 4 (licensable activities), at the end of paragraph (c) |
| 30 |
| |
(d) | participates in the operation of an electricity interconnector,”. |
| |
(3) | Before subsection (4) of that section insert— |
| |
“(3C) | A reference in this Part to participating in the operation of an electricity |
| |
interconnector is a reference to— |
| 35 |
(a) | co-ordinating and directing the flow of electricity into or |
| |
through an electricity interconnector; or |
| |
|
| |
|
| |
|
(b) | making such an interconnector available for use for the |
| |
conveyance of electricity; |
| |
| and a person is not to be regarded as participating in the transmission |
| |
of electricity by reason only of activities constituting participation in |
| |
the operation of an electricity interconnector. |
| 5 |
(3D) | For the purposes of subsection (3C)(b), a person shall not be regarded |
| |
as making something available just because he consents to its being |
| |
made available by another. |
| |
(3E) | In this Part ‘electricity interconnector’ means so much of an electric line |
| |
or other electrical plant as— |
| 10 |
(a) | is situated at a place within the jurisdiction of Great Britain; and |
| |
(b) | subsists wholly or primarily for the purposes of the conveyance |
| |
of electricity (whether in both directions or in only one) between |
| |
Great Britain and a place within the jurisdiction of another |
| |
| 15 |
(3F) | For the purposes of this section— |
| |
(a) | a place is within the jurisdiction of Great Britain if it is in Great |
| |
Britain, in the territorial sea adjacent to Great Britain or in an |
| |
area designated under section 1(7) of the Continental Shelf Act |
| |
| 20 |
(b) | a place is within the jurisdiction of another country or territory |
| |
if it is in that country or territory or in waters in relation to |
| |
which authorities of that country or territory exercise |
| |
| |
(4) | In section 5(1) (power of the Secretary of State to grant exemptions from |
| 25 |
licensing), for “or (c)” substitute “, (c) or (d)”. |
| |
(5) | In section 6 (power to grant licences), after subsection (1)(d) insert “or |
| |
(e) | a licence authorising a person to participate in the operation of |
| |
an electricity interconnector (‘an interconnector licence’).” |
| |
(6) | After subsection (2) of that section insert— |
| 30 |
“(2A) | The same person may not be the holder of an interconnector licence and |
| |
the holder of a licence falling within any of paragraphs (a) to (d) of |
| |
| |
(7) | Before subsection (7) of that section insert— |
| |
“(6C) | An interconnector licence authorising participation in the operation of |
| 35 |
an electricity interconnector— |
| |
(a) | must specify the interconnector or interconnectors in relation to |
| |
which participation is authorised; and |
| |
(b) | may limit the forms of participation in the operation of an |
| |
interconnector which are authorised by the licence.” |
| 40 |
143 | Standard conditions for electricity interconnectors |
| |
(1) | The Secretary of State must, before the commencement of subsection (6), |
| |
determine standard conditions for electricity interconnector licences. |
| |
(2) | Those standard conditions may contain provision— |
| |
|
| |
|
| |
|
(a) | for a standard condition included in an electricity interconnector |
| |
licence not to have effect until brought into operation in such manner, |
| |
and in such circumstances, as may be specified in or determined under |
| |
| |
(b) | for the effect of a standard condition included in such a licence to be |
| 5 |
suspended in such manner, and in such circumstances, as may be so |
| |
specified or determined; or |
| |
(c) | for a standard condition included in such a licence the effect of which |
| |
is for the time being suspended to be brought back into operation in |
| |
such manner, and in such circumstances, as may be so specified or |
| 10 |
| |
(3) | The Secretary of State must publish the standard conditions determined by |
| |
| |
(4) | The publication must be in such manner as the Secretary of State considers |
| |
| 15 |
(5) | The standard conditions determined by the Secretary of State have effect |
| |
subject to any modifications made under Part 1 of the 1989 Act or under this |
| |
| |
(6) | Before subsection (2) of section 8A of the 1989 Act (standard conditions) |
| |
| 20 |
“(1B) | Subject to subsection (2), each condition which by virtue of section 143 |
| |
of the Energy Act 2004 is a standard condition for the purposes of |
| |
interconnector licences shall be incorporated, by reference, in each |
| |
interconnector licence granted on or after the commencement of |
| |
subsection (6) of that section.” |
| 25 |
(7) | In this section “electricity interconnector licence” means an interconnector |
| |
licence under section 6(1)(e) of the 1989 Act. |
| |
144 | Consequential amendments of the 1989 Act |
| |
(1) | The 1989 Act is amended as follows. |
| |
| 30 |
(a) | in subsection (1) (principal objective of GEMA in relation to electricity), |
| |
at the end insert “or the provision or use of electricity interconnectors”; |
| |
| |
(b) | in subsection (5)(a) (duty as to carrying out of functions), after |
| |
“electricity”, where first occurring, insert “or to participate in the |
| 35 |
operation of electricity interconnectors”. |
| |
(3) | In section 29 (regulations)— |
| |
(a) | in subsection (1)(b), after “electricity”, where first occurring, insert |
| |
“from the use of electricity interconnectors,”; |
| |
(b) | in subsection (2)(b), after “electricity” insert “or in the use of electricity |
| 40 |
| |
(c) | in subsection (2)(c), after “electricity” insert “or to participate in the |
| |
operation of an electricity interconnector”. |
| |
(4) | In section 30(2)(a) (duty of inspector to inspect apparatus belonging to a licence |
| |
holders), after “electricity” insert “or to participate in the operation of |
| 45 |
electricity interconnectors”. |
| |
|
| |
|
| |
|
(5) | In section 43 (concurrent functions of GEMA and the OFT under the Enterprise |
| |
Act 2002), in each of subsections (2A) and (3), after “electricity” insert “or the |
| |
use of electricity interconnectors”. |
| |
(6) | In section 58(2) (information protected by directions), after “electricity” insert |
| |
“or to participate in the operation of electricity interconnectors”. |
| 5 |
(7) | In section 64(1) (interpretation), after the definitions of “electricity distributor” |
| |
and “electricity supplier” insert— |
| |
| “‘electricity interconnector’ has the meaning given by section |
| |
| |
(8) | In section 98(1) (statistical information)— |
| 10 |
(a) | after “electricity”, where first occurring, insert “or the use of electricity |
| |
| |
(b) | at the end insert “or to participate in the operation of electricity |
| |
| |
145 | Grant of electricity interconnector licences to existing operators |
| 15 |
(1) | This section applies where a person is participating in the operation of an |
| |
electricity interconnector at the time when the power of GEMA to grant |
| |
electricity interconnector licences comes into force. |
| |
(2) | The Secretary of State shall have power to grant such a licence to that person |
| |
under section 6 of the 1989 Act. |
| 20 |
(3) | Sections 6A(5), 7 and 8A of the 1989 Act (notice of licence and licence |
| |
conditions) shall have effect in relation to the grant of licences by the Secretary |
| |
of State by virtue of this section as if— |
| |
(a) | references in those sections to GEMA included references to the |
| |
| 25 |
(b) | in section 8A, the words “the Secretary of State and” in subsection (4)(b) |
| |
and subsection (5) were omitted. |
| |
(4) | Before granting a licence to a person by virtue of this section, the Secretary of |
| |
| |
| 30 |
| |
(c) | such other persons as the Secretary of State considers appropriate. |
| |
(5) | Subsection (4) may be satisfied by consultation that took place wholly or partly |
| |
before the commencement of this section. |
| |
| 35 |
| “electricity interconnector licence” means an interconnector licence under |
| |
section 6(1)(e) of the 1989 Act; and |
| |
| “participating in the operation of an electricity interconnector” has the |
| |
same meaning as in Part 1 of the 1989 Act. |
| |
| 40 |
146 | Operators of gas interconnectors to be licensed |
| |
(1) | The Gas Act 1986 (c. 44) is amended as follows. |
| |
|
| |
|