The Electricity (Class Exemptions from the Requirement for a Licence) (No. 2) Order 1995

Explanatory Note

(This note is not part of the Order)

This Order re-enacts the Electricity (Class Exemptions from the Requirement for a Licence) Order 1990 (as amended) (“the 1990 Order”) with further amendments. It grants exemption from the requirements of section 4(1)(a) of the Electricity Act 1989 (which prohibits the generation of electricity without a licence) and section 4(1)(c) of that Act (which prohibits the supply of electricity to premises without a licence) to persons of various classes. The classes of persons who are exempt from the requirement to hold a licence to generate electricity are set out in Schedule 2 and the classes of persons who are exempt from the requirement to hold a licence to supply electricity to premises are set out in Schedule 3. Article 4 provides for conditions which are attached to the exemptions set out in Schedules 2 and 3, and article 5, together with certain paragraphs in Schedules 2 and 3, provide for the circumstances in which the exemptions cease to have effect.

In addition to minor and drafting amendments, this Order makes the following changes of substance:

• the duration of the transitional exemptions granted to persons falling within Class C in Schedule 2 and Class E in Schedule 3 is extended until 31st March 1998;

• it sets out circumstances in which, for the purposes of Class C in Schedule 3, electricity which a person purchases pursuant to the pooling and settlement agreement shall be treated as the output of a generating station at which that person generates electricity.

The 1990 Order, the Electricity (Class Exemptions from the Requirement for a Licence) (Amendment) Order 1994, the Electricity (Class Exemptions from the Requirement for a Licence) (Amendment) (No. 2) Order 1994 and the Electricity (Class Exemptions from the Requirement for a Licence) Order 1995 are revoked.