Energy Bill [HL]

House of Commons

Session 2003 - 04
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Other Bills before Parliament

Energy Bill [HL]

Energy Bill [HL]
Part 3 — Energy Regulation
Chapter 2 — Interconnectors for electricity and gas
106

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
of information) does not apply to a disclosure made in pursuance of this
section.
5
134
Property arrangements schemes
Schedule 18 (which makes provision about property arrangements schemes)
has effect.
135
Interpretation of Chapter 1 of Part 3
In this Chapter—
10
“transmission licence” means a licence under section 6(1)(b) of the 1989
Act;
and references to the new trading and transmission arrangements are to be
construed in accordance with section 126.
136
Amendments consequential on Chapter 1 of Part 3
15
(1)
Schedule 19 (which makes amendments consequential on the provisions of this
Chapter) has effect.
(2)
Where the effect of—
(a)
a modification under section 127, or
(b)
a scheme under Schedule 17,
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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
authorised to carry on.
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137
Transition
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.
Chapter 2
30
Interconnectors for electricity and gas
Electricity interconnectors
138
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)
35
insert “or
(d)
participates in the operation of an electricity interconnector,”.

Energy Bill [HL]
Part 3 — Energy Regulation
Chapter 2 — Interconnectors for electricity and gas
107

(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—
(a)
co-ordinating and directing the flow of electricity into or
through an electricity interconnector; or
5
(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.
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(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—
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(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
country or territory.
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(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
1964; and
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(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
jurisdiction.”
(4)
In section 5(1) (power of the Secretary of State to grant exemptions from
30
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—
35
“(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
subsection (1).”
(7)
Before subsection (7) of that section insert—
“(6C)
An interconnector licence authorising participation in the operation of
40
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.”
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Energy Bill [HL]
Part 3 — Energy Regulation
Chapter 2 — Interconnectors for electricity and gas
108

139
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
5
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 standard conditions;
(b)
for the effect of a standard condition included in such a licence to be
suspended in such manner, and in such circumstances, as may be so
10
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
determined.
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(3)
The Secretary of State must publish the standard conditions determined by
him under this section.
(4)
The publication must be in such manner as the Secretary of State considers
appropriate.
(5)
The standard conditions determined by the Secretary of State have effect
20
subject to any modifications made under Part 1 of the 1989 Act or under this
Act.
(6)
Before subsection (2) of section 8A of the 1989 Act (standard conditions)
insert—
“(1B)
Subject to subsection (2), each condition which by virtue of section 139
25
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.”
(7)
In this section “electricity interconnector licence” means an interconnector
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licence under section 6(1)(e) of the 1989 Act.
140
Consequential amendments of the 1989 Act
(1)
The 1989 Act is amended as follows.
(2)
In section 3A(5)(a) (duty as to carrying out of functions), after “electricity”,
where first occurring, insert “or to participate in the operation of electricity
35
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
interconnectors”;
(c)
in subsection (2)(c), after “electricity” insert “or to participate in the
operation of an electricity interconnector”.

Energy Bill [HL]
Part 3 — Energy Regulation
Chapter 2 — Interconnectors for electricity and gas
109

(4)
In section 30(2)(a) (duty of inspector to inspect apparatus belonging to licence
holders), after “electricity” insert “or to participate in the operation of
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
5
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”.
(7)
In section 64(1) (interpretation), after the definitions of “electricity distributor”
and “electricity supplier” insert—
10

“‘electricity interconnector’ has the meaning given by section
4(3E);”.
(8)
In section 98(1) (statistical information)—
(a)
after “electricity”, where first occurring, insert “or the use of electricity
interconnectors”; and
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(b)
at the end insert “or to participate in the operation of electricity
interconnectors”.
141
Grant of electricity interconnector licences to existing operators
(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
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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.
(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
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of State by virtue of this section as if—
(a)
references in those sections to GEMA included references to the
Secretary of State; and
(b)
in section 8A, the words “the Secretary of State and” in subsection (4)(b)
and subsection (5) were omitted.
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(4)
Before granting a licence to a person by virtue of this section, the Secretary of
State must consult—
(a)
that person;
(b)
GEMA; and
(c)
such other persons as the Secretary of State considers appropriate.
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(5)
Subsection (4) may be satisfied by consultation that took place wholly or partly
before the commencement of this section.
(6)
In this section—

“electricity interconnector licence” means an interconnector licence under
section 6(1)(e) of the 1989 Act; and
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“participating in the operation of an electricity interconnector” has the
same meaning as in Part 1 of the 1989 Act.