The Energy Act 2004 (Commencement No. 10) Order 2010

EXPLANATORY NOTE

(This note is not part of the Order)

This Order brings into force on 29th July 2010 sections 89 (activities offshore requiring Electricity Act 1989 licences) and 180(1) (meaning of ‘high voltage line’) of the Energy Act 2004 (the Act) in relation to electrical infrastructure as specified in article 2.

Section 89 of the Act inserts definitions in relation to ‘generate’, ‘relevant place’ and ‘system’ into section 4(4) (prohibitions on unlicensed supply etc) of the Electricity Act 1989 (c.29) and applies the definition of ‘premises’ from section 4 of that Act to section 6 (licences authorising supply etc) of that Act. Section 180(1) of the Act substitutes new definitions for ‘high voltage line’ and ‘low voltage line’ into section 64(1) (interpretation of Part 1) of the Electricity Act 1989.

Section 44(3) (definition of ‘relevant offshore line’) of the Energy Act 2008 (c.32) is being commenced by the Energy Act 2008 (Commencement No. 5) Order 2010 for the same purposes as sections 89 and 180(1) of the Act. Section 44(3) of the Energy Act 2008 inserts a new definition in relation to ‘relevant offshore line’ for the purposes of the definition of ‘high voltage line’ in section 64(1) of the Electricity Act 1989.

Article 2(a) of this Order commences sections 89 and 180(1) of the Act in relation to certain assets. The assets are those that have been the subject of a tender exercise undertaken in accordance with the offshore tender regulations made under section 6C (competitive tenders for offshore transmission licences) of the Electricity Act 1989, where they have transferred to the successful bidder of that tender exercise and where that bidder did not construct or install them. The effect is that a system for the conveyance of electricity means a system, the whole or part of which is in Great Britain, the territorial sea adjacent to Great Britain or in a Renewable Energy Zone and which consists of such assets. Operation of these assets will require a licence to be granted authorising the participation in transmission of electricity under section 6(1)(b) (licences authorising supply etc) of that Act.

In addition, article 2(b) of this Order commences sections 89 and 180(1) of the Act in relation to electrical infrastructure located partly in an area of offshore waters that is used to convey electricity generated only otherwise than in an area of offshore waters. The effect is that the operation of such electrical infrastructure will require a licence authorising the participation in transmission (or distribution as the case may be) of electricity under section 6(1)(b) or (c) of the Electricity Act 1989.