PART IIELECTRICITY SUPPLY

Licensing of supply, etc.

F1Licensing and Energy Efficiency11AC

1

Without prejudice to the generality of Article 11(1), a licence shall include such conditions as appear to the grantor to be requisite or expedient to ensure that any activity authorised by it is carried out in accordance with the requirements and prohibitions laid down by the Energy Efficiency Directive and referred to in the following paragraphs.

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F114

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5

The conditions included in a licence in accordance with paragraph (1) shall, in particular, in the case of a transmission licence include such conditions as appear to the grantor to be requisite or expedient to ensure that—

a

in relation to network regulation and network tariffs, the requirements of Article 15(1) fourth indent of and Annex XI to the Energy Efficiency Directive are complied with;

b

the licence holder complies with the requirements of F2Article 15(5) third sub-paragraph of and Annex XII to the Energy Efficiency Directive in relation to electricity from high efficiency co generation; F3and

c

where Article 15(6) of the Energy Efficiency Directive requires the licence holder to be responsible for conducting balancing services and other operational services—

i

such services are part of a service bidding process which is transparent, non discriminatory and open to scrutiny in accordance with the requirements of that provision; and

ii

in meeting the requirements for such services and ancillary services, the licence holder complies with Article 15(8), second indent of the Energy Efficiency Directive F12.

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6

The conditions included in a licence in accordance with paragraph (1) shall in particular in the case of a distribution licence include such conditions as appear to the grantor to be requisite or expedient to ensure that—

F5a

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b

in relation to network regulation and network tariffs, the requirements of Article 15(1), fourth indent of and Annex XI to the Energy Efficiency Directive are complied with;

c

the licence holder complies with the requirements of F6Article 15(5) third sub-paragraph and Annex XII to the Energy Efficiency Directive in relation to electricity from high efficiency co generation; F7and

d

where Article 15(6) of the Energy Efficiency Directive requires the licence holder to be responsible for conducting balancing services and other operational services—

i

such services are part of a service bidding process which is transparent, non discriminatory and open to scrutiny in accordance with the requirements of that provision; and

ii

in meeting the requirements for such services and ancillary services, the licence holder, complies with Article 15(8), second indent of the Energy Efficiency Directive F8.

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7

The duty on the Authority in paragraph (2) to include conditions in a licence shall only have effect where the Department—

a

has determined that it is technically possible, financially reasonable and proportionate in relation to the potential energy savings to implement a programme for the widespread provision of smart meters; and

b

notifies the Authority in writing to that effect.

8

In this Article—

F10a

"the Energy Efficiency Directive” means the European Parliament and Council Directive 2012/27/EU on energy efficiency as amended by European Parliament and Council Directive (EU) 2018/2002 and the Directive;

b

smart meter” means—

i

an electricity meter which can send and receive information using an electronic communications network; or

ii

an electricity meter and a device which is associated with or ancillary to that meter and which enables information to be sent and received by the meter using an electronic communication network;

c

electronic communication” has the same meaning as in Section 4(1) of the Electronic Communications Act (Northern Ireland) 2001; and

d

other expressions which are also used in the Energy Efficiency Directive shall have the same meaning as in that Directive.