Electricity Order 1992 (Amendment) Regulations (Northern Ireland) 2005

Explanatory Note

(This note is not part of the Regulations)

These Regulations inter alia amend the Electricity (Northern Ireland) Order 1992 (“the 1992 Order”) to ensure that it conforms with the requirements of Directive 2003/54/EC of the European Parliament and of the Council concerning common rules for the internal market in electricity (“the Directive”). They revoke and replace the Electricity Order 1992 (Amendment) Regulations (Northern Ireland) 1999 which implemented Community obligations under Directive 96/92/EC which was replaced by the Directive.

Part I contains certain introductory provisions.

Part II amends the 1992 Order, as follows—

(a) regulation 4 substitutes a new definition of “the Directive” for the one in Article 3 of the 1992 Order (Interpretation of Part II);

(b) regulation 5 substitutes a new Article 11A in the 1992 Order requiring the inclusion of appropriate conditions in licences to ensure that the authorised activities comply with the requirements of the Directive;

(c) regulation 5 also inserts a new Article 11B into the 1992 Order to provide for additional capacity or energy efficiency measures in the eventuality of a projected shortfall in electricity generating capacity;

(d) regulation 6 amends the general duties of the holder of a transmission licence to ensure that those duties reflect the requirements of the Directive for long-term planning and security of supply;

(e) regulation 7 narrows the scope of the exemption in Article 20(2) of the 1992 Order from the obligation of the public electricity supplier to supply anyone who applies to it for an electricity supply;

(f) regulation 8 provides for the exercise of a dispute resolution function in relation to electricity by the Northern Ireland Authority for Energy Regulation (“the Authority”) to take place in accordance with the requirements of the Directive;

(g) regulation 9 amends Article 39 of the 1992 Order by prohibiting the grant by the Department of its consent for the construction or extension of a generating station unless it is satisfied that the generating station meets certain specified criteria;

(h) regulation 10 amends Article 40 of the 1992 Order by prohibiting the grant by the Department of its consent for an overhead line which is a direct line within the meaning of the Directive unless it is satisfied that the station meets certain specified criteria.

Part III in particular amends the electricity functions of the Authority and the Department of Enterprise, Trade and Investment under Article 12 of the Energy (Northern Ireland) Order 2003 (“the Energy Order”) to ensure that they reflect the requirements of the Directive.

In addition to implementing the Directive, this Part also extends financial penalties under Article 45 of the Energy Order to any licence holder who infringes the provisions of Regulation 1228/2003 of the European Parliament and Council on conditions for access to the network for cross-border exchanges in electricity.

Part IV provides for the modification of licences already issued under the 1992 Order to ensure compliance with the provisions of the Directive.