Part I U.K. ELECTRICITY SUPPLY

IntroductoryU.K.

1 The Director General of Electricity Supply.U.K.

(1)The Secretary of State shall appoint an officer to be known as the Director General of Electricity Supply (in this Act referred to as “the Director”) for the purpose of carrying out the functions assigned or transferred to him by this Act.

(2)An appointment of a person to hold office as the Director shall be for a term not exceeding five years; but previous appointment to that office shall not affect eligibility for re-appointment.

(3)The Secretary of State may remove any person from office as the Director on the ground of incapacity or misbehaviour.

(4)Subject to subsections (2) and (3) above, the Director shall hold and vacate office as such in accordance with the terms of his appointment.

(5)The provisions of Schedule 1 to this Act shall have effect with respect to the Director.

2 Consumers’ committees.U.K.

(1)The Director shall establish committees, to be known as consumers’ committees, for the purposes of this Part.

(2)Each consumers’ committee shall be appointed for an area consisting of—

(a)the authorised area of a public electricity supplier; or

(b)if the Secretary of State so determines, the authorised areas of two or more such suppliers;

and any reference in this Part to the allocation of a public electricity supplier to a consumers’ committee shall be construed accordingly.

(3)Each consumers’ committee shall consist of—

(a)a chairman appointed by the Director after consultation with the Secretary of State; and

(b)such other members, not being less than ten or more than twenty, as the Director after consultation with the chairman may from time to time appoint.

(4)An appointment of a person to hold office as the chairman of a consumers’ committee shall be for a term not exceeding four years.

(5)Subject to subsection (4) above, the chairman and other members of a consumers’ committee shall hold and vacate office in accordance with the terms of the instruments appointing them and shall, on ceasing to hold office, be eligible for re-appointment.

(6)The provisions of Schedule 2 to this Act shall have effect with respect to each of the consumers’ committees.

(7)In this Part “public electricity supplier” and “authorised area”, in relation to such a supplier, have the meanings given by section 6(9) below.

3 General duties of Secretary of State and Director.E+W+S

(1)The Secretary of State and the Director shall each have a duty to exercise the functions assigned or transferred to him by this Part in the manner which he considers is best calculated—

(a)to secure that all reasonable demands for electricity are satisfied;

(b)to secure that licence holders are able to finance the carrying on of the activities which they are authorised by their licences to carry on; and

(c)subject to subsection (2) below, to promote competition in the generation and supply of electricity.

(2)The Secretary of State and the Director shall each have a duty to exercise the functions assigned or transferred to him by this Part in the manner which he considers is best calculated to secure—

(a)that the prices charged to tariff customers by public electricity suppliers for electricity supplied in pursuance of section 16(1) below to premises in any area of Scotland specified in an order made by the Secretary of State are in accordance with tariffs which do not distinguish (whether directly or indirectly) between different parts of that area; and

(b)that public electricity suppliers are not thereby disadvantaged in competing with persons authorised by a licence or exemption to supply electricity to such premises.

(3)Subject to subsections (1) and (2) above, the Secretary of State and the Director shall each have a duty to exercise the functions assigned or transferred to him by this Part in the manner which he considers is best calculated—

(a)to protect the interests of consumers of electricity supplied by persons authorised by licences to supply electricity in respect of—

(i)the prices charged and the other terms of supply;

(ii)the continuity of supply; and

(iii)the quality of the electricity supply services provided;

(b)to promote efficiency and economy on the part of persons authorised by licences to supply or transmit electricity and the efficient use of electricity supplied to consumers;

(c)to promote research into, and the development and use of, new techniques by or on behalf of persons authorised by a licence to generate, transmit or supply electricity;

(d)to protect the public from dangers arising from the generation, transmission or supply of electricity; and

(e)to secure the establishment and maintenance of machinery for promoting the health and safety of persons employed in the generation, transmission or supply of electricity;

and a duty to take into account, in exercising those functions, the effect on the physical environment of activities connected with the generation, transmission or supply of electricity.

(4)In performing his duty under subsection (3)(a)(i) above, the Secretary of State or the Director shall take into account, in particular, the protection of the interests of consumers of electricity in rural areas.

(5)In performing his duty under subsection (3)(a)(iii) above, the Secretary of State or the Director shall take into account, in particular, the interests of those who are disabled or of pensionable age.

(6)In this section references to the functions assigned to the Secretary of State by this Part do not include references to functions under section 36 or 37 below and references to the functions so assigned to the Director do not include references to functions relating to the determination of disputes.

(7)In this Part, unless the context otherwise requires—

• “exemption” means an exemption under section 5 below;

• “licence” means a licence under section 6 below and “licence holder” shall be construed accordingly.

Licensing of supply etc.E+W+S

4 Prohibition on unlicensed supply etc.E+W+S

(1)A person who—

(a)generates electricity for the purpose of giving a supply to any premises or enabling a supply to be so given;

(b)transmits electricity for that purpose; or

(c)supplies electricity to any premises,

shall be guilty of an offence unless he is authorised to do so by a licence or exemption.

(2)A person guilty of an offence under this section shall be liable—

(a)on summary conviction, to a fine not exceeding the statutory maximum;

(b)on conviction on indictment, to a fine.

(3)No proceedings shall be instituted in England and Wales in respect of an offence under this section except by or on behalf of the Secretary of State or the Director.

(4)In this Part, unless the context otherwise requires—

• “supply”, in relation to electricity, means supply through electric lines otherwise than to premises occupied by a licence holder for the purpose of carrying on the activities which he is authorised by his licence to carry on;

• “transmit”, in relation to electricity, means transmit by means of a transmission system, that is to say, a system which consists (wholly or mainly) of high voltage lines and electrical plant and is used for conveying electricity from a generating station to a substation, from one generating station to another or from one substation to another.

5 Exemptions from section 4.E+W+S

(1)The Secretary of State may, after consultation with the Director, by order grant exemption from paragraph (a) or (c) of section 4(1) above, but subject to compliance with such conditions (if any) as may be specified in the order.

(2)An exemption may be granted either—

(a)to persons of a particular class; or

(b)to a particular person;

and an exemption granted to persons of a particular class shall be published in such manner as the Secretary of State considers appropriate for bringing it to the attention of persons of that class.

(3)An exemption, unless previously revoked in accordance with any term contained in the exemption, shall continue in force for such period as may be specified in or determined by or under the exemption.

(4)The requirement to consult imposed by subsection (1) above shall not apply to the granting of any exemptions which, having regard to the provisions of section 4 above, need to be granted before the commencement of that section.

6 Licences authorising supply etc.E+W+S

(1)The Secretary of State after consultation with the Director, or the Director with the consent of, or in accordance with a general authority given by, the Secretary of State, may grant a licence authorising any person—

(a)to generate electricity for the purpose of giving a supply to any premises or enabling a supply to be so given;

(b)to transmit electricity for that purpose in that person’s authorised area; or

(c)to supply electricity to any premises in that person’s authorised area.

(2)The Secretary of State after consultation with the Director, or the Director with the consent of, or in accordance with a general authority given by, the Secretary of State, may—

(a)grant a licence authorising any person to supply electricity to any premises specified or of a description specified in the licence; or

(b)extend such a licence by adding to the premises or descriptions of premises specified in the licence.

(3)An application for a licence or extension shall be made in the prescribed manner and shall be accompanied by such fee (if any) as may be prescribed; and within 14 days after the making of such an application, the applicant shall publish a copy of the application in the prescribed manner.

(4)Before granting a licence under subsection (1)(b) or (c) above, the Secretary of State or the Director shall give notice—

(a)stating that he proposes to grant the licence;

(b)stating the reasons why he proposes to grant the licence; and

(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 licence may be made,

and shall consider any representations or objections which are duly made and not withdrawn.

(5)A notice under subsection (4) above shall be given by publishing the notice in such manner as the Secretary of State or the Director considers appropriate for bringing it to the attention of persons likely to be affected by the grant of the licence.

(6)A licence shall be in writing and, unless previously revoked in accordance with any term contained in the licence, shall continue in force for such period as may be specified in or determined by or under the licence.

(7)As soon as practicable after granting a licence, the Secretary of State shall send a copy of the licence to the Director and—

(a)in the case of a licence under paragraph (b) of subsection (1) above, to any licence holder under that paragraph whose authorised area previously included the whole or any part of the area designated in the licence;

(b)in the case of a licence under paragraph (c) of that subsection, to any public electricity supplier whose authorised area previously included the whole or any part of the area designated in the licence;

(c)in the case of a licence or extension under subsection (2) above, to any public electricity supplier whose authorised area includes any premises specified or described in the licence or extension.

(8)As soon as practicable after granting any licence or extension falling within paragraph (a), (b) or (c) of subsection (7) above, the Director shall send a copy of the licence or extension to any such person as is mentioned in that paragraph.

(9)In this Part—

• “authorised area”, in relation to a person authorised by a licence under paragraph (b) or (c) of subsection (1) above to transmit or supply electricity, means so much of the area designated as such in the licence as is not for the time being designated in a subsequent licence under that paragraph;

• “public electricity supplier” means any person who is authorised by a licence under subsection (1)(c) above to supply electricity except where he is acting otherwise than for purposes connected with the supply of electricity to premises in his authorised area.

(10)Neither the requirement to consult imposed by subsection (1) or (2) above nor subsections (3) and (4) above shall apply to the granting of any licences which, having regard to the provisions of section 4 above, need to be granted before the commencement of that section.

(11)Any sums received by the Secretary of State or the Director under this section shall be paid into the Consolidated Fund.

7 Conditions of licences: general.E+W+S

(1)A licence may include—

(a)such conditions (whether or not relating to the activities authorised by the licence) as appear to the grantor to be requisite or expedient having regard to the duties imposed by section 3 above; and

(b)conditions requiring the rendering to the grantor of a payment on the grant of the licence, or payments during the currency of the licence, or both, of such amount or amounts as may be determined by or under the licence.

(2)Without prejudice to the generality of paragraph (a) of subsection (1) above, conditions included in a licence by virtue of that paragraph—

(a)may require the licence holder to enter into agreements with other persons for the use of any electric lines and electrical plant of his (wherever situated and whether or not used for the purpose of carrying on the activities authorised by the licence) for such purposes as may be specified in the conditions; and

(b)may include provision for determining the terms on which such agreements are to be entered into.

(3)Conditions included in a licence by virtue of subsection (1)(a) above may require the licence holder—

(a)to comply with any direction given by the Director as to such matters as are specified in the licence or are of a description so specified;

(b)except in so far as the Director consents to his doing or not doing them, not to do or to do such things as are specified in the licence or are of a description so specified;

(c)to refer for determination by the Director such questions arising under the licence as are specified in the licence or are of a description so specified; and

(d)to refer for approval by the Director such things falling to be done under the licence, and such contracts or agreements made before the grant of the licence, as are specified in the licence or are of a description so specified.

(4)Conditions included in a licence by virtue of subsection (1)(a) above may—

(a)instead of specifying or describing any contracts or agreements to which they apply, refer to contracts or agreements designated (whether before or after the imposition of the conditions) by the Secretary of State or the Director; and

(b)instead of containing any provisions which fall to be made, refer to provisions set out in documents so designated and direct that those provisions shall have such effect as may be specified in the conditions.

(5)Conditions included in a licence may contain provision for the conditions to cease to have effect or be modified at such times, in such manner and in such circumstances as may be specified in or determined by or under the conditions.

(6)Any provision included by virtue of subsection (5) above in a licence shall have effect in addition to the provision made by this Part with respect to the modification of the conditions of a licence.

(7)Any sums received by the Secretary of State or the Director in consequence of the provisions of any condition of a licence shall be paid into the Consolidated Fund.

8 Conditions for funding certain companies engaged in nuclear generation in Scotland.]E+W+S

(1)Without prejudice to section 7(1)(a) above, it may be a condition of a licence granted to a company (“the licence holder”) that it shall from time to time provide any company to which subsection (2) below applies, comes to apply or has at any time applied with such funds as may be determined by or under the condition in respect of such of that company’s liabilities as may be so determined.

(2)This subsection applies to any company engaging in the operation of a nuclear generating station in Scotland while—

(a)deemed for the purposes of the M4Companies Act 1985 to be a subsidiary of the licence holder; or

(b)a related company of the licence holder (as defined in paragraph 92 of Schedule 4 to that Act).

(3)Subsection (3) of section 7 above applies in respect of a condition included in a licence by virtue of this section as it applies in respect of a condition so included by virtue of subsection (1)(a) of that section.

9 General duties of licence holders.E+W+S

(1)It shall be the duty of a public electricity supplier to develop and maintain an efficient, co-ordinated and economical system of electricity supply.

(2)It shall be the duty of the holder of a licence authorising him to transmit electricity—

(a)to develop and maintain an efficient, co-ordinated and economical system of electricity transmission; and

(b)subject to subsection (3) below, to facilitate competition in the supply and generation of electricity.

(3)Subsection (2)(b) above shall apply in Scotland in relation to a person who is also the holder of a licence authorising him to supply or generate electricity as if the duty to facilitate competition in the supply or, as the case may be, the generation of electricity were a duty to make his transmission system available to his competitors on terms which neither prevent nor restrict such competition.

(4)For the purposes of subsection (3) above a person’s competitors are any other persons authorised (whether by a licence or exemption) to supply or, as the case may be, generate electricity.

10 Powers etc. of licence holders.E+W+S

(1)Subject to subsection (2) below, Schedule 3 to this Act (which provides for the compulsory acquisition of land) and Schedule 4 to this Act (which confers other powers and makes other provision) shall have effect—

(a)in relation to a public electricity supplier or a person authorised by a licence to transmit electricity; and

(b)to the extent that his licence so provides, in relation to any other licence holder;

and references in those Schedules to a licence holder shall be construed accordingly.

(2)Where any provision of either of the Schedules mentioned in subsection (1) above is applied to a licence holder by his licence, it shall have effect subject to such restrictions, exceptions and conditions as may be included in the licence for the purpose of qualifying that provision as so applied or any power or right conferred by or under it.

(3)A licence under section 6(1)(a) above may provide that Schedule 4 to this Act shall have effect in relation to the licence holder as if—

(a)any reference to any purpose connected with the carrying on of the activities which he is authorised by his licence to carry on included a reference to any purpose connected with the supply to any premises of heat produced in association with electricity and steam produced from and air and water heated by such heat; and

(b)any reference to electric lines or electrical plant included a reference to pipes and associated works used or intended to be used for conveying heat so produced, and steam produced from and air and water heated by such heat;

and in this subsection “associated works”, in relation to pipes, means any of the following connected with the pipes, namely, any valve, filter, stopcock, pump, meter, inspection chamber and manhole and such other works as may be prescribed.

(4)A licence under paragraph (b) or (c) of section 6(1) above may provide that, where any part of the licence holder’s authorised area is designated in a subsequent licence under that paragraph, Schedule 4 to this Act shall have effect in relation to the licence holder 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.

(5)The provisions of Schedule 5 to this Act (which provide for the acquisition of water rights for hydro-electric stations in Scotland) shall have effect.

Modification of licencesE+W+S

11 Modification by agreement.E+W+S

(1)Subject to the following provisions of this section, the Director may modify the conditions of a licence if the holder of the licence consents to the modifications.

(2)Before making modifications under this section, the Director shall give notice—

(a)stating that he proposes to make the modifications and setting out their effect;

(b)stating the reasons why he proposes to make the modifications; and

(c)specifying the period (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.

(3)A notice under subsection (2) above shall be given—

(a)by publishing the notice in such manner as the Director 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

(b)by serving a copy of the notice on the holder of the licence.

(4)The Director shall also send a copy of a notice under subsection (2) above to the Secretary of State; and if, within the period specified in the notice, the Secretary of State directs the Director not to make any modifications, the Director shall comply with the direction.

12 Modification references to Monopolies Commission.E+W+S

(1)The Director may make to the Monopolies and Mergers Commission (in this Part referred to as “the Monopolies Commission”) a reference which is so framed as to require the Commission to investigate and report on the questions—

(a)whether any matters which—

(i)relate to the generation, transmission or supply of electricity in pursuance of a licence; and

(ii)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.

(2)The Director may, at any time, by notice given to the Monopolies Commission vary a reference under this section by adding to the matters specified in the reference or by excluding from the reference some or all of the matters so specified; and on receipt of any such notice the Commission shall give effect to the variation.

(3)The Director may specify in a reference under this section, or a variation of such a reference, for the purpose of assisting the Monopolies Commission in carrying out the investigation on the reference—

(a)any effects adverse to the public interest which, in his opinion, the matters specified in the reference or variation have or may be expected to have; and

(b)any modifications of the conditions of the licence by which, in his opinion, those effects could be remedied or prevented.

(4)As soon as practicable after making a reference under this section or a variation of such a reference, the Director—

(a)shall serve a copy of the reference or variation on the holder of the licence; and

(b)shall publish particulars of the reference or variation in such manner as he considers appropriate for the purpose of bringing the reference or variation to the attention of persons likely to be affected by it.

(5)The Director shall also send a copy of a reference under this section, or a variation of such a reference, to the Secretary of State; and if, before the end of the period of 28 days beginning with the day on which the Secretary of State receives the copy of the reference or variation, the Secretary of State directs the Monopolies Commission not to proceed with the reference or, as the case may require, not to give effect to the variation, the Commission shall comply with the direction.

(6)It shall be the duty of the Director, for the purpose of assisting the Monopolies Commission in carrying out an investigation on a reference under this section, to give to the Commission—

(a)any information in his possession which relates to matters falling within the scope of the investigation and—

(i)is requested by the Commission for that purpose; or

(ii)is information which, in his opinion, it would be appropriate for that purpose to give to the Commission without any such request; and

(b)any other assistance which the Commission may require, and which it is within his power to give, in relation to any such matters;

and the Commission, for the purpose of carrying out any such investigation, shall take account of any information given to them for that purpose under this subsection.

(7)In determining for the purposes of this section whether any particular matter operates, or may be expected to operate, against the public interest, the Monopolies Commission shall have regard to the matters as respects which duties are imposed on the Secretary of State and the Director by section 3 above.

(8)Sections 70 (time limit for report on merger reference), 81 (procedure in carrying out investigations) and 85 (attendance of witnesses and production of documents) of the 1973 Act, Part II of Schedule 3 to that Act (performance of functions of the Monopolies Commission) and section 24 of the 1980 Act (modifications of provisions about performance of such functions) shall apply in relation to references under this section as if—

(a)the functions of the Commission in relation to those references were functions under the 1973 Act;

(b)the expression “merger reference” included a reference under this section;

(c)in the said section 70, references to the Secretary of State were references to the Director and the reference to three months were a reference to six months;

(d)in paragraph 11 of the said Schedule 3, the reference to section 71 of the 1973 Act were a reference to subsection (2) above; and

(e)paragraph 16(2) of that Schedule were omitted;

and in this Part “the 1973 Act” means the M5Fair Trading Act 1973 and “the 1980 Act” means the M6Competition Act 1980.

(9)For the purposes of references under this section the Secretary of State shall appoint not less than eight additional members of the Monopolies Commission; and if any functions of the Commission in relation to any such reference are performed by a group—

(a)the chairman of the Commission shall select one, two or three of those additional members to be members of the group; and

(b)the number of regular members to be selected by him under paragraph 10 of Schedule 3 to the 1973 Act shall be reduced accordingly.

13 Reports on modification references.E+W+S

(1)In making a report on a reference under section 12 above, the Monopolies Commission—

(a)shall include in the report definite conclusions on the questions comprised in the reference together with such an account of their reasons for those conclusions as in their opinion is expedient for facilitating a proper understanding of those questions and of their conclusions;

(b)where they conclude that any of the matters specified in the reference operate, or may be expected to operate, against the public interest, shall specify in the report the effects adverse to the public interest which those matters have or may be expected to have; and

(c)where they conclude that any adverse effects so specified could be remedied or prevented by modifications of the conditions of the licence, shall specify in the report modifications by which those effects could be remedied or prevented.

(2)Where, on a reference under section 12 above, the Monopolies Commission conclude that the holder of the licence is a party to an agreement to which the M7Restrictive Trade Practices Act 1976 applies, the Commission, in making their report on that reference, shall exclude from their consideration the question whether the provisions of that agreement, in so far as they are provisions by virtue of which it is an agreement to which that Act applies, operate, or may be expected to operate, against the public interest; and paragraph (b) of subsection (1) above shall have effect subject to the provisions of this subsection.

(3)Section 82 of the 1973 Act (general provisions as to reports) shall apply in relation to reports of the Monopolies Commission on references under section 12 above as it applies to reports of the Commission under that Act.

(4)A report of the Monopolies Commission on a reference under section 12 above shall be made to the Director.

(5)Subject to subsection (6) below, the Director—

(a)shall, on receiving such a report, send a copy of it to the holder of the licence to which the report relates and to the Secretary of State; and

(b)shall, not less than 14 days after that copy is received by the Secretary of State, publish the report in such manner as he considers appropriate for bringing the report to the attention of persons likely to be affected by it.

(6)If it appears to the Secretary of State that the publication of any matter in such a report would be against the public interest or the commercial interests of any person, he may, before the end of the period of 14 days mentioned in paragraph (b) of subsection (5) above, direct the Director to exclude that matter from every copy of the report to be published by virtue of that paragraph.

14 Modification following report.E+W+S

(1)Where a report of the Monopolies Commission on a reference under section 12 above—

(a)includes conclusions to the effect that any of the matters specified in the reference operate, or may be expected to operate, against the public interest;

(b)specifies effects adverse to the public interest which those matters have or may be expected to have;

(c)includes conclusions to the effect that those effects could be remedied or prevented by modifications of the conditions of the licence; and

(d)specifies modifications by which those effects could be remedied or prevented,

the Director shall, subject to the following provisions of this section, make such modifications of the conditions of that licence as appear to him requisite for the purpose of remedying or preventing the adverse effects specified in the report.

(2)Before making modifications under this section, the Director shall have regard to the modifications specified in the report.

(3)Before making modifications under this section, the Director shall give notice—

(a)stating that he proposes to make the modifications and setting out their effect;

(b)stating the reasons why he proposes to make the modifications; and

(c)specifying the period (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.

(4)A notice under subsection (3) above shall be given—

(a)by publishing the notice in such manner as the Director considers appropriate for the purpose of bringing the matters to which the notice relates to the attention of persons likely to be affected by the making of the modifications; and

(b)by serving a copy of the notice on the holder of the licence.

15 Modification by order under other enactments.E+W+S

(1)Where in the circumstances mentioned in subsection (2) below the Secretary of State by order exercises any of the powers specified in—

(a)Parts I and II of Schedule 8 to the 1973 Act; or

(b)section 10(2)(a) of the 1980 Act,

the order may also provide for the modification of the conditions of a licence to such extent as may appear to him to be requisite or expedient for the purpose of giving effect to or of taking account of any provision made by the order.

(2)Subsection (1) above shall have effect where—

(a)the circumstances are as mentioned in section 56(1) of the 1973 Act (order on report on monopoly reference) and the monopoly situation exists in relation to the generation, transmission or supply of electricity;

(b)the circumstances are as mentioned in section 73(1) of that Act (order on report on merger reference) and the two or more enterprises which ceased to be distinct enterprises were both engaged in the generation, transmission or supply of electricity; or

(c)the circumstances are as mentioned in section 10(1) of the 1980 Act (order on report on competition reference) and the anti-competitive practice relates to the generation, transmission or supply of electricity.

(3)In this section expressions which are also used in the 1973 Act or the 1980 Act have the same meanings as in that Act.

Supply by public electricity suppliersE+W+S

16 Duty to supply on request.E+W+S

(1)Subject to the following provisions of this Part and any regulations made under those provisions, a public electricity supplier shall, upon being required to do so by the owner or occupier of any premises—

(a)give a supply of electricity to those premises; and

(b)so far as may be necessary for that purpose, provide electric lines or electrical plant or both.

(2)Where any person requires a supply of electricity in pursuance of subsection (1) above, he shall give to the public electricity supplier a notice specifying—

(a)the premises in respect of which the supply is required;

(b)the day on which the supply is required to commence;

(c)the maximum power which may be required at any time; and

(d)the minimum period for which the supply is required to be given.

(3)Where a public electricity supplier receives from any person a notice under subsection (2) above requiring him to give a supply of electricity to any premises and—

(a)he has not previously given a supply of electricity to those premises; or

(b)the giving of the supply requires the provision of electric lines or electrical plant or both; or

(c)other circumstances exist which make it necessary or expedient for him to do so,

the supplier shall, as soon as practicable after receiving that notice, give to that person a notice under subsection (4) below.

(4)A notice under this subsection shall—

(a)state the extent to which the proposals specified in the other person’s notice under subsection (2) above are acceptable to the supplier and specify any counter proposals made by the supplier;

(b)state whether the prices to be charged by the supplier will be determined by a tariff under section 18(1) below, or a special agreement under section 22(1) below, and specify the tariff or the proposed terms of the agreement;

(c)specify any payment which that person will be required to make under subsection (1) of section 19 below, or under regulations made under subsection (2) of that section;

(d)specify any security which that person will be required to give under section 20 below;

(e)specify any other terms which that person will be required to accept under section 21 below; and

(f)state the effect of section 23 below.

(5)In this section and sections 17 to 23 below—

(a)any reference to giving a supply of electricity includes a reference to continuing to give such a supply;

(b)any reference to requiring a supply of electricity includes a reference to requiring such a supply to continue to be given; and

(c)any reference to the provision of an electric line or an item of electrical plant is a reference to the provision of such a line or item either by the installation of a new one or by the modification of an existing one.

17 Exceptions from duty to supply.E+W+S

(1)Nothing in section 16(1) above shall be taken as requiring a public electricity supplier to give a supply of electricity to any premises if—

(a)such a supply is being given to the premises by a private electricity supplier; and

(b)that supply is given (wholly or partly) through the public electricity supplier’s electric lines and electrical plant;

and in this Part “private electricity supplier” means a person, other than a public electricity supplier, who is authorised by a licence or exemption to supply electricity.

(2)Nothing in section 16(1) above shall be taken as requiring a public electricity supplier to give a supply of electricity to any premises if and to the extent that—

(a)he is prevented from doing so by circumstances not within his control; or

(b)circumstances exist by reason of which his doing so would or might involve his being in breach of regulations under section 29 below, and he has taken all such steps as it was reasonable to take both to prevent the circumstances from occurring and to prevent them from having that effect; or

(c)it is not reasonable in all the circumstances for him to be required to do so.

(3)Paragraph (c) of subsection (2) above shall not apply in relation to a supply of electricity which is being given to any premises unless the public electricity supplier gives to the occupier, or to the owner if the premises are not occupied, not less than seven working days’ notice of his intention to discontinue the supply in pursuance of that paragraph.

18 Power to recover charges.E+W+S

(1)Subject to the following provisions of this section, the prices to be charged by a public electricity supplier for the supply of electricity by him in pursuance of section 16(1) above shall be in accordance with such tariffs (which, subject to any condition included in his licence, may relate to the supply of electricity in different areas, cases and circumstances) as may be fixed from time to time by him.

(2)A tariff fixed by a public electricity supplier under subsection (1) above —

(a)shall be so framed as to show the methods by which and the principles on which the charges are to be made as well as the prices which are to be charged; and

(b)shall be published in such manner as in the opinion of the supplier will secure adequate publicity for it.

(3)A tariff fixed by a public electricity supplier under subsection (1) above may include—

(a)a standing charge in addition to the charge for the actual electricity supplied;

(b)a charge in respect of the availability of a supply of electricity; and

(c)a rent or other charge in respect of any electricity meter or electrical plant provided by the supplier;

and such a charge as is mentioned in paragraph (b) above may vary according to the extent to which the supply is taken up.

(4)In fixing tariffs under subsection (1) above, a public electricity supplier shall not show undue preference to any person or class of persons, and shall not exercise any undue discrimination against any person or class of persons.

19 Power to recover expenditure.E+W+S

(1)Where any electric line or electrical plant is provided by a public electricity supplier in pursuance of section 16(1) above, the supplier may require any expenses reasonably incurred in providing it to be defrayed by the person requiring the supply of electricity to such extent as is reasonable in all the circumstances.

(2)The Secretary of State may, after consultation with the Director, make provision by regulations for entitling a public electricity supplier to require a person requiring a supply of electricity in pursuance of section 16(1) above to pay to the supplier, in respect of any expenses reasonably incurred in providing any electric line or electrical plant used for the purpose of giving that supply, such amount as may be reasonable in all the circumstances if—

(a)the supply is required within the prescribed period after the provision of the line or plant; and

(b)a person for the purpose of supplying whom the line or plant was provided (“the initial contributor”) has made a payment to the supplier in respect of those expenses.

(3)Regulations under subsection (2) above may require a public electricity supplier who, in pursuance of this section or the regulations, has recovered any amount in respect of expenses reasonably incurred in providing any electric line or electrical plant—

(a)to exercise his rights under the regulations in respect of those expenses; and

(b)to apply any payments received by him in the exercise of those rights in making such payments as may be appropriate towards reimbursing the initial contributor and any persons previously required to make payments under the regulations.

(4)Any reference in this section to any expenses reasonably incurred in providing an electric line or electrical plant includes a reference to the capitalised value of any expenses likely to be so incurred in maintaining it, in so far as they will not be recoverable by the supplier as part of the charges made by him for the supply.

20 Power to require security.E+W+S

(1)Subject to the following provisions of this section, a public electricity supplier may require any person who requires a supply of electricity in pursuance of subsection (1) of section 16 above to give him reasonable security for the payment to him of all money which may become due to him—

(a)in respect of the supply; or

(b)where any electric line or electrical plant falls to be provided in pursuance of that subsection, in respect of the provision of the line or plant;

and if that person fails to give such security, the supplier may if he thinks fit refuse to give the supply, or to provide the line or plant, for so long as the failure continues.

(2)Where any person has not given such security as is mentioned in subsection (1) above, or the security given by any person has become invalid or insufficient—

(a)the public electricity supplier may by notice require that person, within seven days after the service of the notice, to give him reasonable security for the payment of all money which may become due to him in respect of the supply; and

(b)if that person fails to give such security, the supplier may if he thinks fit discontinue the supply for so long as the failure continues;

and any notice under paragraph (a) above shall state the effect of section 23 below.

(3)Where any money is deposited with a public electricity supplier by way of security in pursuance of this section, the supplier shall pay interest, at such rate as may from time to time be fixed by the supplier with the approval of the Director, on every sum of 50p so deposited for every three months during which it remains in the hands of the supplier.

(4)A public electricity supplier shall not be entitled to require security in pursuance of subsection (1)(a) above if—

(a)the person requiring the supply is prepared to take the supply through a pre-payment meter; and

(b)it is reasonably practicable in all the circumstances (including in particular the risk of loss or damage) for the supplier to provide such a meter.

21 Additional terms of supply.E+W+S

A public electricity supplier may require any person who requires a supply of electricity in pursuance of section 16(1) above to accept in respect of the supply—

(a)any restrictions which must be imposed for the purpose of enabling the supplier to comply with regulations under section 29 below; and

(b)any terms restricting any liability of the supplier for economic loss resulting from negligence which it is reasonable in all the circumstances for that person to be required to accept.

22 Special agreements with respect to supply.E+W+S

(1)Notwithstanding anything in sections 16 to 21 above, a person who requires a supply of electricity in pursuance of section 16(1) above—

(a)may enter into a special agreement with the public electricity supplier for the supply on such terms as may be specified in the agreement; and

(b)shall enter into such an agreement in any case where—

(i)the maximum power to be made available at any time exceeds 10 megawatts; or

(ii)it is otherwise reasonable in all the circumstances for such an agreement to be entered into.

(2)The Secretary of State may by order provide that subsection (1) above shall have effect as if for the wattage mentioned in paragraph (b) there were substituted such other wattage as may be specified in the order; but before making such an order, he shall consult with public electricity suppliers and with persons or bodies appearing to him to be representative of persons likely to be affected.

(3)So long as any such agreement as is mentioned in subsection (1) above is effective, the rights and liabilities of the parties to the agreement shall be those arising under the agreement and not those provided for by sections 16 to 21 above; but nothing in this subsection shall prejudice the giving of a notice under section 16(2) above specifying as the day on which the supply is required to commence the day on which such an agreement ceases to be effective.

(4)In this Part “tariff customer” means a person who requires a supply of electricity in pursuance of section 16(1) above and is supplied by the public electricity supplier otherwise than on the terms specified in such an agreement as is mentioned in subsection (1) above.

23 Determination of disputes.E+W+S

(1)Any dispute arising under sections 16 to 22 above between a public electricity supplier and a person requiring a supply of electricity—

(a)may be referred to the Director by either party; and

(b)on such a reference, shall be determined by order made either by the Director or, if he thinks fit, by an arbitrator, or in Scotland arbiter, appointed by him;

and the practice and procedure to be followed in connection with any such determination shall be such as the Director may consider appropriate.

(2)Where any dispute arising under sections 16 to 22 above between a public electricity supplier and a person requiring a supply of electricity to continue to be given falls to be determined under this section, the Director may give directions as to the circumstances in which, and the terms on which, the supplier is to continue to give the supply pending the determination of the dispute.

(3)Where any dispute arising under section 20(1) above falls to be determined under this section, the Director may give directions as to the security (if any) to be given pending the determination of the dispute.

(4)Directions under subsection (2) or (3) above may apply either in cases of particular descriptions or in particular cases.

(5)An order under this section—

(a)may include such incidental, supplemental and consequential provision (including provision requiring either party to pay a sum in respect of the costs or expenses incurred by the person making the order) as that person considers appropriate; and

(b)shall be final and—

(i)in England and Wales, shall be enforceable, in so far as it includes such provision as to costs or expenses, as if it were a judgment of the county court;

(ii)in Scotland, shall be enforceable as if it were an extract registered decree arbitral bearing a warrant for execution issued by the sheriff.

(6)In including in an order under this section any such provision as to costs or expenses as is mentioned in subsection (5) above, the person making the order shall have regard to the conduct and means of the parties and any other relevant circumstances.

24 The public electricity supply code.E+W+S

The provisions of Schedule 6 to this Act (which relate to the supply of electricity by public electricity suppliers) shall have effect.

Enforcement of preceding provisionsE+W+S

25 Orders for securing compliance.E+W+S

(1)Subject to subsections (2) and (5) and section 26 below, where the Director is satisfied that a licence holder is contravening, or is likely to contravene, any relevant condition or requirement, he shall by a final order make such provision as is requisite for the purpose of securing compliance with that condition or requirement.

(2)Subject to subsection (5) below, where it appears to the Director—

(a)that a licence holder is contravening, or is likely to contravene, any relevant condition or requirement; and

(b)that it is requisite that a provisional order be made,

he shall (instead of taking steps towards the making of a final order) by a provisional order make such provision as appears to him requisite for the purpose of securing compliance with that condition or requirement.

(3)In determining for the purposes of subsection (2)(b) above whether it is requisite that a provisional order be made, the Director shall have regard, in particular—

(a)to the extent to which any person is likely to sustain loss or damage in consequence of anything which, in contravention of the relevant condition or requirement, is likely to be done, or omitted to be done, before a final order may be made; and

(b)to the fact that the effect of the provisions of this section and section 27 below is to exclude the availability of any remedy (apart from under those provisions or for negligence) in respect of any contravention of a relevant condition or requirement.

(4)Subject to subsection (5) and section 26 below, the Director shall confirm a provisional order, with or without modifications, if—

(a)he is satisfied that the licence holder to whom the order relates is contravening, or is likely to contravene, any relevant condition or requirement; and

(b)the provision made by the order (with any modifications) is requisite for the purpose of securing compliance with that condition or requirement.

(5)The Director shall not make a final order or make or confirm a provisional order in relation to a licence holder if he is satisfied—

(a)that the duties imposed on him by section 3 above preclude the making or, as the case may be, the confirmation of the order;

(b)that the licence holder has agreed to take and is taking all such steps as it appears to the Director for the time being to be appropriate for the licence holder to take for the purpose of securing or facilitating compliance with the condition or requirement in question; or

(c)that the contraventions were, or the apprehended contraventions are, of a trivial nature.

(6)Where the Director is satisfied as mentioned in subsection (5) above, he shall—

(a)serve notice that he is so satisfied on the licence holder; and

(b)publish the notice in such manner as he considers appropriate for the purpose of bringing the matters to which the notice relates to the attention of persons likely to be affected by them.

(7)A final or provisional order—

(a)shall require the licence holder to whom it relates (according to the circumstances of the case) to do, or not to do, such things as are specified in the order or are of a description so specified;

(b)shall take effect at such time, being the earliest practicable time, as is determined by or under the order; and

(c)may be revoked at any time by the Director.

(8)In this Part—

• “final order” means an order under this section other than a provisional order;

• “provisional order” means an order under this section which, if not previously confirmed in accordance with subsection (4) above, will cease to have effect at the end of such period (not exceeding three months) as is determined by or under the order;

• “relevant condition”, in relation to a licence holder, means any condition of his licence;

• “relevant requirement”, in relation to a licence holder, means any duty or other requirement imposed on him by or under section 9 or sections 16 to 23 above.

26 Procedural requirements.E+W+S

(1)Before he makes a final order or confirms a provisional order, the Director shall give notice—

(a)stating that he proposes to make or confirm the order and setting out its effect;

(b)setting out—

(i)the relevant condition or requirement for the purpose of securing compliance with which the order is to be made or confirmed;

(ii)the acts or omissions which, in his opinion, constitute or would constitute contraventions of that condition or requirement; and

(iii)the other facts which, in his opinion, justify the making or confirmation of the order; and

(c)specifying the period (not being less than 28 days from the date of publication of the notice) within which representations or objections with respect to the proposed order or proposed confirmation may be made,

and shall consider any representations or objections which are duly made and not withdrawn.

(2)A notice under subsection (1) above shall be given—

(a)by publishing the notice in such manner as the Director considers appropriate for the purpose of bringing the matters to which the notice relates to the attention of persons likely to be affected by them; and

(b)by serving a copy of the notice, and a copy of the proposed order or of the order proposed to be confirmed, on the licence holder to whom the order relates.

(3)The Director shall not make a final order with modifications, or confirm a provisional order with modifications, except—

(a)with the consent to the modifications of the licence holder to whom the order relates; or

(b)after complying with the requirements of subsection (4) below.

(4)The requirements mentioned in subsection (3) above are that the Director shall—

(a)serve on the licence holder to whom the order relates such notice as appears to him requisite of his proposal to make or confirm the order with modifications;

(b)in that notice specify the period (not being less than 28 days from the date of the service of the notice) within which representations or objections with respect to the proposed modifications may be made; and

(c)consider any representations or objections which are duly made and not withdrawn.

(5)As soon as practicable after making a final order or making or confirming a provisional order, the Director shall—

(a)serve a copy of the order on the licence holder to whom the order relates; and

(b)publish the order in such manner as he considers appropriate for the purpose of bringing it to the attention of persons likely to be affected by it.

(6)Before revoking a final order or a provisional order which has been confirmed, the Director shall give notice—

(a)stating that he proposes to revoke the order and setting out its effect; and

(b)specifying the period (not being less than 28 days from the date of publication of the notice) within which representations or objections with respect to the proposed revocation may be made,

and shall consider any representations or objections which are duly made and not withdrawn.

(7)If, after giving a notice under subsection (6) above, the Director decides not to revoke the order to which the notice relates, he shall give notice of his decision.

(8)A notice under subsection (6) or (7) above shall be given—

(a)by publishing the notice in such manner as the Director considers appropriate for the purpose of bringing the matters to which the notice relates to the attention of persons likely to be affected by them; and

(b)by serving a copy of the notice on the licence holder to whom the order relates.

27 Validity and effect of orders.E+W+S

(1)If the licence holder to whom a final or provisional order relates is aggrieved by the order and desires to question its validity on the ground—

(a)that its making or confirmation was not within the powers of section 25 above; or

(b)that any of the requirements of section 26 above have not been complied with in relation to it,

he may, within 42 days from the date of service on him of a copy of the order, make an application to the court under this section.

(2)On any such application the court may, if satisfied that the making or confirmation of the order was not within those powers or that the interests of the licence holder have been substantially prejudiced by a failure to comply with those requirements, quash the order or any provision of the order.

(3)Except as provided by this section, the validity of a final or provisional order shall not be questioned by any legal proceedings whatever.

(4)The obligation to comply with a final or provisional order shall be a duty owed to any person who may be affected by a contravention of the order.

(5)Where a duty is owed by virtue of subsection (4) above to any person, any breach of the duty which causes that person to sustain loss or damage shall be actionable at the suit or instance of that person.

(6)In any proceedings brought against a licence holder in pursuance of subsection (5) above, it shall be a defence for him to prove that he took all reasonable steps and exercised all due diligence to avoid contravening the order.

(7)Without prejudice to any right which any person may have by virtue of subsection (5) above to bring civil proceedings in respect of any contravention or apprehended contravention of a final or provisional order, compliance with any such order shall be enforceable by civil proceedings by the Director for an injunction or for interdict or for any other appropriate relief.

(8)In this section and section 28 below “the court” means the High Court in relation to England and Wales and the Court of Session in relation to Scotland.

28 Power to require information etc.E+W+S

(1)Where it appears to the Director that a licence holder may be contravening, or may have contravened, any relevant condition or requirement, the Director may, for any purpose connected with such of his functions under section 25 above as are exercisable in relation to that matter, serve a notice under subsection (2) below on any person.

(2)A notice under this subsection is a notice signed by the Director and—

(a)requiring the person on whom it is served to produce, at a time and place specified in the notice, to the Director or to any person appointed by the Director for the purpose, any documents which are specified or described in the notice and are in that person’s custody or under his control; or

(b)requiring that person, if he is carrying on a business, to furnish, at a time and place and in the form and manner specified in the notice, to the Director such information as may be specified or described in the notice.

(3)No person shall be required under this section to produce any documents which he could not be compelled to produce in civil proceedings in the court or, in complying with any requirement for the furnishing of information, to give any information which he could not be compelled to give in evidence in any such proceedings.

(4)A person who without reasonable excuse fails to do anything required of him by notice under subsection (2) above shall be liable on summary conviction to a fine not exceeding level 5 on the standard scale.

(5)A person who intentionally alters, suppresses or destroys any document which he has been required by any notice under subsection (2) above to produce shall be liable—

(a)on summary conviction, to a fine not exceeding the statutory maximum;

(b)on conviction on indictment, to a fine.

(6)If a person makes default in complying with a notice under subsection (2) above, the court may, on the application of the Director, make such order as the court thinks fit for requiring the default to be made good; and any such order may provide that all the costs or expenses of and incidental to the application shall be borne by the person in default or by any officers of a company or other association who are responsible for its default.

Provisions with respect to supply generallyE+W+S

29 Regulations relating to supply and safety.E+W+S

(1)The Secretary of State may make such regulations as he thinks fit for the purpose of—

(a)securing that supplies of electricity are regular and efficient;

(b)protecting the public from dangers arising from the generation, transmission or supply of electricity, from the use of electricity supplied or from the installation, maintenance or use of any electric line or electrical plant; and

(c)without prejudice to the generality of paragraph (b) above, eliminating or reducing the risks of personal injury, or damage to property or interference with its use, arising as mentioned in that paragraph.

(2)Without prejudice to the generality of subsection (1) above, regulations under this section may—

(a)prohibit the supply or transmission of electricity except by means of a system approved by the Secretary of State;

(b)make provision requiring notice in the prescribed form to be given to the Secretary of State, in such cases as may be specified in the regulations, of accidents and of failures of supplies or transmissions of electricity;

(c)make provision as to the keeping, by persons authorised by a licence or exemption to supply or transmit electricity, of maps, plans and sections and as to their production (on payment, if so required, of a reasonable fee) for inspection or copying;

(d)make provision for relieving persons authorised by a licence to supply electricity from any obligation to supply in such cases as may be prescribed;

(e)make provision requiring compliance with notices given by the Secretary of State specifying action to be taken in relation to any electric line or electrical plant, or any electrical appliance under the control of a consumer, for the purpose of—

(i)preventing or ending a breach of regulations under this section; or

(ii)eliminating or reducing a risk of personal injury or damage to property or interference with its use;

(f)provide for particular requirements of the regulations to be deemed to be complied with in the case of any electric line or electrical plant complying with specified standards or requirements;

(g)provide for the granting of exemptions from any requirement of the regulations for such periods as may be determined by or under the regulations.

(3)Regulations under this section may provide that any person—

(a)who contravenes any specified provision of the regulations; or

(b)who does so in specified circumstances,

shall be liable on summary conviction to a fine not exceeding level 5 on the standard scale; but nothing in this subsection shall affect any liability of any such person to pay compensation in respect of any damage or injury which may have been caused by the contravention.

(4)No proceedings shall be instituted in England and Wales in respect of an offence under this section except by or on behalf of the Secretary of State or the Director of Public Prosecutions.

30 Electrical inspectors.E+W+S

(1)The Secretary of State may appoint competent and impartial persons to be electrical inspectors under this Part.

(2)The duties of an electrical inspector under this Part shall be as follows—

(a)to inspect and test, periodically and in special cases, electric lines and electrical plant belonging to persons authorised by a licence or exemption to generate, transmit or supply electricity;

(b)to examine, periodically and in special cases, the generation, transmission or supply of electricity by such persons;

(c)to inspect and test, if and when required by any consumer, any such lines and plant on the consumer’s premises, for the purpose of determining whether any requirement imposed by or under this Part in respect of the lines or plant or the supply of electricity through or by them has been complied with; and

(d)such other duties as may be imposed by regulations under this section or as the Secretary of State may determine.

(3)The Secretary of State may by regulations—

(a)prescribe the manner in which and the times at which any duties are to be performed by electrical inspectors;

(b)require persons authorised by a licence or exemption to generate, transmit or supply electricity—

(i)to furnish electrical inspectors with records or other information; and

(ii)to allow such inspectors access to premises and the use of electrical plant and other facilities;

(c)make provision for relieving persons authorised by a licence to supply electricity from any obligation to supply in such cases as may be prescribed; and

(d)prescribe the amount of the fees which are to be payable to such inspectors.

(4)Any fees received by electrical inspectors shall be paid to the Secretary of State; and any sums received by him under this subsection shall be paid into the Consolidated Fund.

31 Use etc. of meters.E+W+S

The provisions of Schedule 7 to this Act (which relate to the use, certification, testing and maintenance of electricity meters) shall have effect.

Protection of public interestE+W+S

32 Electricity from non-fossil fuel sources.E+W+S

(1)The Secretary of State may, after consultation with the Director and with the suppliers concerned, by order require each public electricity supplier in England and Wales or each such supplier in Scotland, before a day specified in the order, to make (in so far as he has not already done so) and produce evidence to the Director showing that he has made—

(a)such arrangements; or

(b)where a previous order under this subsection has had effect in relation to him, such additional arrangements,

as will secure the result mentioned in subsection (2) below.

(2)The result referred to in subsection (1) above is that, for a period specified in the order, there will be available to the public electricity supplier—

(a)from non-fossil fuel generating stations; or

(b)if the order so provides, from non-fossil fuel generating stations of any particular description,

an aggregate amount of generating capacity which is not less than that specified in relation to him in the order; and an order under subsection (1) above may make different provision for different suppliers.

(3)A public electricity supplier who—

(a)fails to comply with an order under subsection (1) above; or

(b)having complied with such an order, by any act or omission of his prevents the arrangements made by him from securing the result mentioned in subsection (2) above,

shall be liable on conviction on indictment to a fine.

(4)No proceedings shall be instituted in England and Wales in respect of an offence under this section except by or on behalf of the Secretary of State.

(5)Subject to subsection (6) below, if throughout any period a public electricity supplier—

(a)is entitled under a contract to purchase, at any wattage specified in the contract, electricity generated by a particular non-fossil fuel generating station; or

(b)himself operates a non-fossil fuel generating station and, of the station’s capacity, any wattage does not fall to be regarded, by virtue of paragraph (a) above, as available to any other person,

a generating capacity of that wattage shall be regarded for the purposes of this section as available to that supplier from that station for that period.

(6)The amount of a non-fossil fuel generating station’s capacity which may be regarded as available for the purposes of this section shall not exceed that station’s declared net capacity; and where different parts of such a station’s capacity fall to be regarded as available to different persons, any excess over that station’s declared net capacity shall be apportioned between those persons in such manner as the Director may determine.

(7)If the Secretary of State is satisfied that any such arrangements as are mentioned in subsection (1) above have been made before the day specified in the first order under that subsection, he may certify that those arrangements—

(a)have been made by such one or more public electricity suppliers as are specified in the certificate; and

(b)are such as will secure such a result as is so specified;

and a certificate under this subsection shall be conclusive evidence of the matters stated in it.

(8)In this section—

• “coal products” means any substances produced directly or indirectly from coal;

• “declared net capacity”, in relation to a non-fossil fuel generating station, means the highest generation of electricity (at the main alternator terminals) which can be maintained indefinitely without causing damage to the plant less—

(a)so much of that capacity as is consumed by the plant; and

(b)in the case of a station which is capable of being fuelled by a fossil fuel, so much of that capacity as the Director may determine;

• “fossil fuel” means coal, coal products, lignite, natural gas, crude liquid petroleum or petroleum products;

• “natural gas” and “petroleum products” have the same meanings as in the M14Energy Act 1976;

• “non-fossil fuel generating station” means a generating station which is (or may be) fuelled or driven otherwise than by a fossil fuel;

and for the purposes of this section a public electricity supplier shall be regarded as such a supplier in England and Wales or such a supplier in Scotland, according as his authorised area falls wholly or mainly in England and Wales or wholly or mainly in Scotland.

(9)The Secretary of State may by regulations provide—

(a)that subsections (5) to (8) above shall have effect in relation to any non-fossil fuel generating station which is driven by water, wind or solar power with such modifications as may be prescribed; and

(b)that electricity generated outside the United Kingdom shall be treated for the purposes of subsection (5)(a) above as generated by a non-fossil fuel generating station in such circumstances and to such extent as may be prescribed.

(10)In relation to any time before the commencement of section 4 above, any requirement imposed by subsection (1) above to consult with public electricity suppliers in England and Wales or public electricity suppliers in Scotland shall be construed as a requirement to consult with the Area Boards or, as the case may be, the Scottish Boards.

33 Fossil fuel levy.E+W+S

(1)Where the Secretary of State has made one or more orders under section 32 above in relation to public electricity suppliers in England and Wales, or public electricity suppliers in Scotland, he may by regulations provide—

(a)for the imposition on such suppliers, and on persons authorised by a licence under section 6(2) above to supply electricity within the authorised area of such a supplier, of a levy in respect of each qualifying month;

(b)for the collection of payments in respect of that levy by a prescribed person; and

(c)for the making by that person to such suppliers, out of the payments so collected, of payments in respect of each qualifying month.

(2)The amount of any payment which is required by regulations under this section to be made by any person in respect of the levy shall be calculated, by such method as may be specified by the regulations, by reference to the aggregate amount charged by that person for leviable electricity supplied by him during the qualifying month.

(3)The amount of any payment required to be made to a public electricity supplier by regulations under this section shall be the aggregate of the amounts given by subsections (4) and (5) below.

(4)The amount given by this subsection is a one-twelfth part of any advance payments which, in pursuance of qualifying arrangements, fall to be made by the public electricity supplier during the relevant year; and in this subsection “the relevant year” means whichever one of the following periods the qualifying month falls within, namely—

(a)the period of twelve months beginning on the day appointed by the first order under section 32 above which has effect in relation to the supplier; and

(b)each successive period of twelve months.

(5)The amount given by this subsection is the difference between—

(a)the total cost to the supplier of purchasing or generating any electricity supplied by him during the qualifying month which was generated in pursuance of qualifying arrangements; and

(b)what would have been the total cost to him of purchasing or generating that electricity if it had been generated by a fossil fuel generating station,

calculated (in each case) by such method as may be specified by regulations under this section and including any advance or deferred payments other than, in the case of the cost mentioned in paragraph (a) above, payments taken into account under subsection (4) above.

(6)Regulations under this section may—

(a)impose requirements (whether as to the furnishing of records or other information or the affording of facilities for the examination and testing of meters or otherwise) on persons authorised by a licence to supply, transmit or generate electricity;

(b)make provision as to the times at which payments falling to be made in pursuance of the regulations (whether payments by way of levy or payments to public electricity suppliers) are to be so made; and

(c)require the amount of any overpayment or underpayment which is made by or to any person (whether it arises because an estimate turns out to be wrong or otherwise) to be set off against or added to any subsequent liability or entitlement of that person.

(7)The Secretary of State shall exercise the powers conferred by this section in the manner which he considers is best calculated to secure that the sums realised by the levy are sufficient (after payment of the administrative expenses of the prescribed person) to pay to each public electricity supplier in respect of each qualifying month the payment required to be made to him by the regulations.

(8)In this section—

• “advance payment” means any payment made or expense incurred in relation to a particular generating station before electricity is first generated by that station, and any reference to the making of advance payments shall be construed accordingly;

• “deferred payment” means any payment made or expense incurred in relation to a particular generating station after electricity ceases to be generated by that station;

• “fossil fuel generating station” means a generating station fuelled by a fossil fuel;

• “leviable electricity” means electricity which—

(a)is generated by a fossil fuel generating station; or

(b)is generated by a non-fossil fuel generating station in pursuance of qualifying arrangements;

• “non-fossil fuel generating station” means a generating station fuelled or driven otherwise than by a fossil fuel;

• “qualifying arrangements” in relation to a public electricity supplier, means any arrangements evidence of the making of which he has produced to the Director in pursuance of an order under section 32 above and which—

(a)were made jointly with one or more other public electricity suppliers; and

(b)satisfy such other requirements as may be prescribed;

• “qualifying month” in relation to a public electricity supplier or a person authorised by a licence under section 6(2) above to supply electricity within the authorised area of such a supplier, means a month beginning on or after the day appointed by the first order under section 32 above which has effect in relation to that supplier;

and other expressions which are used in section 32 above have the same meanings as in that section.

34 Fuel stocks etc. at generating stations.E+W+S

(1)This section applies to any generating station which—

(a)is of a capacity not less than 50 megawatts; and

(b)is fuelled otherwise than by waste or manufactured gases;

and in this subsection “waste” has the same meaning as in the M15Control of Pollution Act 1974.

(2)The Secretary of State may by order provide that subsection (1) above shall have effect as if for the capacity mentioned in paragraph (a) there were substituted such other capacity (not exceeding 100 megawatts) as may be specified in the order.

(3)In respect of any generating station to which this section applies, the Secretary of State may give a direction requiring the person who operates it—

(a)to make such arrangements with respect to stocks of fuel and other materials held at or near that generating station for the purposes of its operation as will—

(i)enable those stocks to be brought within a specified time to, and thereafter maintained at, a specified level; and

(ii)ensure that they do not fall below that level, except as may be permitted by the terms of the direction or by a direction under subsection (4) below;

(b)to create such stocks and make such arrangements with respect to them;

and the amount of any stocks may be specified by reference to the period for which it would enable the generating station to be maintained in operation.

(4)In respect of any generating station to which this section applies, the Secretary of State may give a direction—

(a)authorising or requiring the person who operates it to make such use as may be specified of any stocks held at or near that generating station; and

(b)requiring that person to operate, or not to operate, that generating station for specified periods, at specified levels of capacity or using specified fuels.

(5)In subsections (3) and (4) above “specified” means specified by or under the Secretary of State’s direction; and a direction may—

(a)specify the cases and circumstances in which any stocks are to be treated as held at or near any generating station;

(b)specify the extent to which the direction may be treated as complied with where, under arrangements made or approved by the Secretary of State, access can be had to stocks held for the use of a number of consumers;

(c)specify the manner in which any period mentioned in subsection (3) or (4) above is to be determined;

(d)require anything falling to be specified under the direction to be specified by such persons and by reference to such matters as may be specified.

(6)A direction under subsection (3) or (4) above which confers on any person the function of specifying anything falling to be specified under the direction may require that person to exercise that function in such manner as may be specified by the direction.

35 Provisions supplementary to section 34.E+W+S

(1)The Secretary of State may give a direction requiring any person authorised by a licence to transmit electricity to give to the Secretary of State, after consultation with specified persons, any information or advice which the Secretary of State may reasonably require for purposes connected with the exercise of his functions under section 34 above.

(2)The Secretary of State may give a direction requiring any person authorised by a licence to transmit electricity to operate his transmission system, at any time when a direction under section 34(4) above is in force, either in a specified manner or with a view to achieving specified objectives.

(3)In subsections (1) and (2) above “specified” means specified by or under the Secretary of State’s direction; and a person authorised by a licence to transmit electricity shall give effect to any direction given to him under subsection (2) above notwithstanding any other duty imposed on him by or under this Part.

(4)The Secretary of State shall lay before each House of Parliament a copy of every direction given under section 34 above or this section unless he is of the opinion that disclosure of the direction is against the interests of national security or the commercial interests of any person.

(5)A person who, without reasonable excuse, contravenes or fails to comply with a direction of the Secretary of State under section 34 above or this section shall be liable—

(a)on summary conviction, to a fine not exceeding the statutory maximum;

(b)on conviction on indictment, to a fine.

(6)No proceedings shall be instituted in England and Wales in respect of an offence under this section except by or on behalf of the Secretary of State.

(7)Paragraphs 1 to 4, 7 and 8 of Schedule 2 to the M16Energy Act 1976 (administration of Act and other matters) shall have effect as if—

(a)section 34 above were contained in that Act;

(b)the powers of paragraph 1 were exercisable for any purpose connected with securing compliance with a direction under that section;

(c)information obtained by virtue of that paragraph could lawfully be disclosed to any person by whom anything falls to be specified under such a direction; and

(d)the powers conferred by sub-paragraph (1)(c) of that paragraph included power to direct that information and forecasts be furnished to any such person.

36 Consent required for construction etc. of generating stations. E+W+S

(1)Subject to subsections (2) and (4) below, a generating station shall not be constructed, extended or operated except in accordance with a consent granted by the Secretary of State.

(2)Subsection (1) above shall not apply to a generating station whose capacity—

(a)does not exceed the permitted capacity, that is to say, 50 megawatts; and

(b)in the case of a generating station which is to be constructed or extended, will not exceed the permitted capacity when it is constructed or extended;

and an order under this subsection may make different provision for generating stations of different classes or descriptions.

(3)The Secretary of State may by order provide that subsection (2) above shall have effect as if for the permitted capacity mentioned in paragraph (a) there were substituted such other capacity as may be specified in the order.

(4)The Secretary of State may by order direct that subsection (1) above shall not apply to generating stations of a particular class or description, either generally or for such purposes as may be specified in the order.

(5)A consent under this section—

(a)may include such conditions (including conditions as to the ownership or operation of the station) as appear to the Secretary of State to be appropriate; and

(b)shall continue in force for such period as may be specified in or determined by or under the consent.

(6)Any person who without reasonable excuse contravenes the provisions of this section shall be liable on summary conviction to a fine not exceeding level 5 on the standard scale.

(7)No proceedings shall be instituted in England and Wales in respect of an offence under this section except by or on behalf of the Secretary of State.

(8)The provisions of Schedule 8 to this Act (which relate to consents under this section and section 37 below) shall have effect.

(9)In this Part “extension”, in relation to a generating station, includes the use by the person operating the station of any land (wherever situated) for a purpose directly related to the generation of electricity by that station and “extend” shall be construed accordingly.

37 Consent required for overhead lines. E+W+S

(1)Subject to subsection (2) below, an electric line shall not be installed or kept installed above ground except in accordance with a consent granted by the Secretary of State.

(2)Subsection (1) above shall not apply—

(a)in relation to an electric line which has a nominal voltage not exceeding 20 kilovolts and is used or intended to be used for supplying a single consumer;

(b)in relation to so much of an electric line as is or will be within premises in the occupation or control of the person responsible for its installation; or

(c)in such other cases as may be prescribed.

(3)A consent under this section—

(a)may include such conditions (including conditions as to the ownership and operation of the line) as appear to the Secretary of State to be appropriate;

(b)may be varied or revoked by the Secretary of State at any time after the end of such period as may be specified in the consent; and

(c)subject to paragraph (b) above, shall continue in force for such period as may be specified in or determined by or under the consent.

(4)Any person who without reasonable excuse contravenes the provisions of this section shall be liable on summary conviction to a fine not exceeding level 3 on the standard scale.

(5)No proceedings shall be instituted in England and Wales in respect of an offence under this section except by or on behalf of the Secretary of State.

38 Preservation of amenity and fisheries.E+W+S

The provisions of Schedule 9 to this Act (which relate to the preservation of amenity and fisheries) shall have effect.]

Consumer protection: standards of performanceE+W+S

39 Electricity supply: performance in individual cases.E+W+S

‐

(1)The Director may—

(a)with the consent of the Secretary of State; and

(b)after consultation with public electricity suppliers and with persons or bodies appearing to the Director to be representative of persons likely to be affected,

make regulations prescribing such standards of performance in connection with the provision by such suppliers of electricity supply services to tariff customers as, in his opinion, ought to be achieved in individual cases.

(2)Regulations under this section may—

(a)prescribe circumstances in which public electricity suppliers are to inform persons of their rights under this section;

(b)prescribe such standards of Performance in relation to any duty arising under paragraph (a) above as, in the Director’s opinion, ought to be achieved in all cases; and

(c)prescribe circumstances in which public electricity suppliers are to be exempted from any requirements of the regulations or this section,

and may make different provision for different public electricity suppliers.

(3)If a public electricity supplier 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 making of compensation under this section in respect of any failure by a public electricity supplier 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.

(5)Any dispute arising under this section or regulations made under it—

(a)may be referred to the Director by either party; and

(b)on such a reference, shall be determined by order made either by the Director or, if he thinks fit, by the consumers’ committee to which the supplier is allocated or any sub–committee of that committee;

and the practice and procedure to be followed in connection with any such determination shall be such as may be prescribed.

(6)An order under subsection (5) above shall be final and shall be enforceable‐

(a)in England and Wales, as if it were a judgment of the county court;

(b)in Scotland, as if it were an extract registered decree arbitral bearing a warrant for execution issued by the sheriff.

(7)In this section “prescribed” means prescribed by regulations under this section.

40 Electricity supply: overall performance.U.K.

(1)The Director may, after consultation with public electricity suppliers and with persons or bodies appearing to him to be representative of persons likely to be affected, from time to time—

(a)determine such standards of overall performance in connection with the provision of electricity supply services as, in his opinion, ought to be achieved by such suppliers; and

(b)arrange for the publication, in such form and in such manner as he considers appropriate, of the standards so determined.

(2)Different standards may be determined under this section for different public electricity suppliers.

41 Promotion of efficient use of electricity.E+W+S

(1)The Director may, after consultation with public electricity suppliers and with persons or bodies appearing to him to be representative of persons likely to be affected, from time to time—

(a)determine such standards of performance in connection with the promotion of the efficient use of electricity by consumers as, in his opinion, ought to be achieved by such suppliers; and

(b)arrange for the publication, in such form and in such manner as he considers appropriate, of the standards so determined.

(2)Different standards may be determined under this section for different public electricity suppliers.

42 Information with respect to levels of performance.E+W+S

(1)The Director shall from time to time collect information with respect to—

(a)the compensation made by public electricity suppliers under section 39 above;

(b)the levels of overall performance achieved by such suppliers in connection with the provision of electricity supply services; and

(c)the levels of performance achieved by such suppliers in connection with the promotion of the efficient use of electricity by consumers.

(2)On or before such date in each year as may be specified in a direction given by the Director, each public electricity supplier shall furnish to the Director the following information, namely—

(a)as repects each standard prescribed by regulations under section 39 above, the number of cases in which compensation was made and the aggregate amount or value of that compensation; and

(b)as repects each standard determined under section 40 or 41 above, such information with respect to the level of performance achieved by the supplier as may be so specified.

(3)A public electricity supplier who without reasonable excuse fails to do anything required of him by subsection (2) above shall be liable on summary conviction to a fine not exceeding level 5 on the standard scale.

(4)The Director shall at least once in every year arrange for the publication, in such form and in such manner as he considers appropriate, of such of the information collected by or furnished to him under this section as it may appear to him expedient to give to customers or potential customers of public electricity suppliers.

(5)In arranging for the publication of any such information the Director shall have regard to the need for excluding, so far as that is practicable—

(a)any matter which relates to the affairs of an individual, where publication of that matter would or might, in the opinion of the Director, seriously and prejudicially affect the interests of that individual; and

(b)any matter which relates specifically to the affairs of a particular body of persons, whether corporate or unincorporate, where publication of that matter would or might, in the opinion of the Director, seriously and prejudicially affect the interests of that body.

Consumer protection: miscellaneousE+W+S

43 Functions with respect to competition.E+W+S

(1)If and to the extent that he is requested by the Director General of Fair Trading to do so, it shall be the duty of the Director to exercise the functions of that Director under Part III of the 1973 Act so far as relating to courses of conduct which are or may be detrimental to the interests of consumers of electricity, whether those interests are economic or interests in respect of health, safety or other matters; and references in that Part to that Director shall be construed accordingly.

(2)There are hereby transferred to the Director (so as to be exercisable concurrently with the Director General of Fair Trading)—

(a)the functions of that Director under sections 44 and 45 of the 1973 Act; and

(b)the functions of that Director under sections 50, 52, 53, 86 and 88 of that Act,

so far as relating to monopoly situations which exist or may exist in relation to commercial activities connected with the generation, transmission or supply of electricity; and references in Part IV and sections 86, 88 and 133 of that Act to that Director shall be construed accordingly.

(3)There are hereby transferred to the Director (so as to be exercisable concurrently with the Director General of Fair Trading) the functions of that Director under sections 2 to 10 and 16 of the 1980 Act so far as relating to courses of conduct which have or are intended to have or are likely to have the effect of restricting, distorting, or preventing competition in connection with the generation, transmission or supply of electricity; and references in those sections and in section 19 of that Act to that Director shall be construed accordingly.

(4)Before either Director first exercises in relation to any matter functions transferred by any of the following provisions, namely—

(a)paragraph (a) of subsection (2) above;

(b)paragraph (b) of that subsection; and

(c)subsection (3) above,

he shall consult the other Director; and neither Director shall exercise in relation to any matter functions transferred by any of those provisions if functions transferred by that provision have been exercised in relation to that matter by the other Director.

(5)It shall be the duty of the Director, for the purpose of assisting the Monopolies Commission in carrying out an investigation on a reference made to them by the Director by virtue of subsection (2) or (3) above, to give to the Commission—

(a)any information which is in his possession and which relates to matters falling within the scope of the investigation and—

(i)is requested by the Commission for that purpose; or

(ii)is information which in his opinion it would be appropriate for that purpose to give to the Commission without any such request; and

(b)any other assistance which the Commission may require and which it is within his power to give, in relation to any such matters,

and the Commission shall, for the purposes of carrying out any such investigation, take into account any information given to them for that purpose under this subsection.

(6)If any question arises as to whether subsection (2) or (3) above applies to any particular case, that question shall be referred to and determined by the Secretary of State; and no objection shall be taken to anything done under—

(a)Part IV or section 86 or 88 of the 1973 Act; or

(b)sections 2 to 10 of the 1980 Act,

by or in relation to the Director on the ground that it should have been done by or in relation to the Director General of Fair Trading.

(7)Expressions used in this section which are also used in the 1973 Act or the 1980 Act have the same meanings as in that Act.

44 Fixing of maximum charges for reselling electricity.E+W+S

(1)This section applies to electricity supplied to a consumer’s premises by an authorised electricity supplier, that is to say, a person who is authorised by a licence or exemption to supply electricity.

(2)The Director may from time to time fix maximum prices at which electricity to which this section applies may be resold, and shall publish any prices so fixed in such manner as in his opinion will secure adequate publicity for them.

(3)Different prices may be fixed under this section in different classes of cases, which may be defined by reference to areas, tariffs applicable to electricity supplied by the authorised electricity suppliers or any other relevant circumstances.

(4)If any person resells electricity to which this section applies at a price exceeding the maximum price fixed under this section and applicable thereto, the amount of the excess shall be recoverable by the person to whom the electricity was resold.

Investigation of complaintsE+W+S

45 Investigation of enforcement matters.E+W+S

(1)Subject to subsection (2) below, it shall be the duty of the Director to investigate any matter which appears to him to be an enforcement matter and which—

(a)is the subject of a representation (other than one appearing to the Director to be frivolous) made to the Director by or on behalf of a person appearing to the Director to have an interest in that matter; or

(b)is referred to him by a consumers’ committee under subsection (3) below.

(2)The Director may, if he thinks fit, require a consumers’ committee to investigate and report to him on any matter falling within subsection (1) above which relates to a person authorised by a licence to supply electricity in the committee’s area.

(3)It shall be the duty of each consumers’ committee to refer to the Director any matter which—

(a)appears to the committee to be an enforcement matter; and

(b)is the subject of a representation (other than one appearing to the committee to be frivolous) made to the committee by or on behalf of a person appearing to the committee to have an interest in that matter.

(4)In this section and section 46 below “enforcement matter” means any matter in respect of which any functions of the Director under section 25 above are or may be exercisable.

46 Investigation of certain other matters.E+W+S

(1)It shall be the duty of each consumers’ committee to investigate any matter which appears to the committee to be a relevant matter and which—

(a)is the subject of a representation (other than one appearing to the committee to be frivolous) made to the committee by or on behalf of a person appearing to the committee to have an interest in that matter; or

(b)is referred to the committee by the Director under subsection (2) below.

(2)Subject to subsection (3) below, it shall be the duty of the Director to refer to a consumers’ committee any matter which—

(a)appears to the Director to be a relevant matter; and

(b)is the subject of a representation (other than one appearing to the Director to be frivolous) made to the Director by or on behalf of a person appearing to the Director to have an interest in that matter.

(3)Nothing in subsection (2) above shall require the Director to refer to a consumers’ committee any matter in respect of which he is already considering exercising functions under this Part.

(4)Where on an investigation under subsection (1) above any matter appears to a consumers’ committee to be a matter in respect of which it would be appropriate for the Director to exercise any functions under this Part, the committee shall refer that matter to the Director with a view to his exercising those functions with respect to that matter.

(5)In this section “relevant matter”, in relation to a consumers’ committee, means any matter (other than an enforcement matter)—

(a)in respect of which any functions of the Director under this Part are or may be exercisable; and

(b)which relates to a public electricity supplier allocated to the committee or to any other person authorised by a licence to supply electricity in that committee’s area.