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1.—(1) This paragraph applies where—
(a)a customer owns or occupies premises which are connected to an exempt distribution system;
(b)the customer is taking a supply of electricity through that system from—
(i)the distribution exemption holder that operates or has control of the system; or
(ii)a person related to the distribution exemption holder; and
(c)the customer—
(i)has served on the distribution exemption holder a notice expressing the customer’s interest in taking a supply of electricity from a third party supplier through that system; and
(ii)has provided with the notice evidence that at least one third party supplier would be willing to supply the customer with electricity through that system, and has identified any such third party supplier in the notice.
(2) In this Schedule “expression of interest” means a notice served under sub-paragraph (1).
(3) Within 5 working days beginning with the day on which it receives the expression of interest, the distribution exemption holder must provide any person related to it that is currently supplying the customer with electricity with a copy of the expression of interest.
(4) Within 10 working days beginning with the day on which it receives the expression of interest, the distribution exemption holder must serve on the customer—
(a)a notice informing the customer that it will take the steps in sub-paragraph (6) with a view to giving a third party supplier access to its distribution system; or
(b)a notice informing the customer that the distribution exemption holder considers—
(i)that it would need to increase the capacity of its distribution system in order to give a third party supplier access to that distribution system; and
(ii)that one of the conditions in sub-paragraph (5) is met.
(5) Those conditions are—
(a)that it is not technically feasible to provide the increase in capacity in question;
(b)that providing that increase in capacity would have a significant and adverse economic impact on the distribution exemption holder or any other person.
(6) Where the distribution exemption holder has served on the customer a notice under sub-paragraph (4)(a), the distribution exemption holder must—
(a)serve on any third party supplier identified in the expression of interest a notice specifying—
(i)any metering arrangements that the distribution exemption holder considers would be required to enable access to be given; and
(ii)whether it would be willing to give access through contractual arrangements which would not require a connection to be made or modified; and
(b)provide each such third party supplier with any other documents or information that it may reasonably request.
(7) The distribution exemption holder must serve the notice required by sub-paragraph (6)(a) within 20 working days beginning with the day on which it receives the expression of interest.
(8) The distribution exemption holder must provide any documents or information requested by a third party supplier under sub-paragraph (6)(b)—
(a)within 20 working days beginning with the day of the distribution exemption holder’s receipt of the expression of interest; or
(b)if the request is made at a time when there are fewer than 10 working days remaining in the 20 working day period mentioned in paragraph (a) above, within 10 working days beginning with the day of the distribution exemption holder’s receipt of the request.
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