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Energy Act 2004

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This is the original version (as it was originally enacted).

Scheme-making power

This section has no associated Explanatory Notes

1(1)GEMA may, on application, make a scheme providing for—

(a)the transfer to the system operator of, or

(b)the creation in favour of the system operator of any rights in relation to,

property, rights or liabilities of an existing transmission licence holder.

(2)A scheme under sub-paragraph (1) (“a property arrangements scheme”) may also contain—

(a)provision for the creation, in relation to property which the scheme transfers, of an interest in or right over the property in favour of the relevant existing transmission licence holder;

(b)provision for the creation of any rights or liabilities as between the relevant existing transmission licence holder and the system operator;

(c)provision for imposing on the relevant existing transmission licence holder or the system operator an obligation to enter into a written agreement with, or to execute an instrument of another kind in favour of, the other;

(d)supplemental, incidental and consequential provision.

(3)The property, rights or liabilities which may be transferred by a property arrangements scheme include property, rights or liabilities which would not otherwise be capable of being transferred.

(4)If a property arrangements scheme provides for the division of an estate or interest in land and any rent is—

(a)payable in respect of the estate or interest under a lease, or

(b)charged on the estate or interest,

the scheme may contain provision for apportionment or division so that one part is payable in respect of, or charged on, only one part of the estate or interest and the other part is payable in respect of, or charged on, only the other part of the estate or interest.

(5)A property arrangements scheme that contains provision which adversely affects a third party may also contain provision requiring the system operator or the relevant existing transmission licence holder to pay the third party compensation.

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