Electricity Act 1989

Introductory

1The Director General of Electricity Supply

(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.

2Consumers' committees

(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.

3General duties of Secretary of State and Director

(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.