Sections 106 – 110 and Schedules 6 - 8: Supplementary
165.Section 107 makes provision for Parliament to fund expenditure resulting from changes introduced by the Act. Section 108 and Schedules 6, 7 (see below) and 8 deal with consequential amendments, transitional provisions, savings and repeals. Section 109 gives the Secretary of State the power to make any necessary transitional provisions and savings.
166.Schedule 7: Transitional provisions and savings. Part 1 of schedule 7 provides a mechanism to facilitate the legal separation of electricity supply and distribution, by enabling suppliers to make schemes to transfer their property, rights and liabilities to new nominated companies. Such transfer schemes are subject to the approval of the Secretary of State, who may modify them before giving approval.
167.The provision also has the effect of enabling the Scottish utility companies to use schemes to transfer their generation and transmission activities, as well as supply and distribution, into separate companies, in order to further the development of competition in the Scottish market.
168.Part II of the schedule provides for the Secretary of State to make licensing schemes in respect of gas and electricity licences. They are necessary in order to ensure the continuity of licensing for those holding licences granted under the 1986 Act and the 1989 Act at the time that this Act was passed. They also provide the vehicle by which the standard conditions of licences, which are to be determined and published by the Secretary of State under sections 33(1) (electricity) and 81(2) (gas), will be incorporated into such licences. Part III requires schemes to be made to determine the terms and conditions to be incorporated into contracts between the successors to the public electricity suppliers and customers formerly taking a tariff supply from the PESs. There are provisions for the Authority to make a scheme where the supplier fails to do so.
169.Part IV provides for other miscellaneous transitional provisions relating to the Authority and Council.
