PART 2 U.K.Electricity Market Reform

CHAPTER 3E+W+SCapacity Market

37Licence modifications for the purpose of the capacity marketE+W+S

(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.