PART 2Electricity Market Reform

CHAPTER 3Capacity Market

37Licence modifications for the purpose of the capacity market

1

The Secretary of State may, for any purpose related to provision that is made by this Chapter, or any purpose for which provision may be made under this Chapter, modify—

a

a condition of a particular licence under section 6(1)(a) to (e) of EA 1989 (generation, transmission, distribution, supply and interconnector licences);

b

the standard conditions incorporated in licences under those provisions by virtue of section 8A of that Act;

c

a document maintained in accordance with the conditions of licences under those provisions, or an agreement that gives effect to a document so maintained.

2

A modification under this section may in particular include a modification—

a

to provide for a new document to be prepared and maintained in accordance with the conditions of a licence;

b

to provide for an agreement to give effect to a document so maintained;

c

to confer functions on the national system operator.

3

Provision included in a licence, or in a document or agreement relating to licences, by virtue of the modification power may in particular include provision of any kind that may be included in electricity capacity regulations.

4

Before making a modification under this section, the Secretary of State must consult—

a

the holder of any licence being modified,

b

the Authority, and

c

such other persons as the Secretary of State considers it appropriate to consult.

5

Subsection (4) may be satisfied by consultation before, as well as by consultation after, the passing of this Act.