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Explanatory Memorandum to Electricity (Single Wholesale Market) (Northern Ireland) Order 2007

Main Elements of the Order

17.The Order is in twelve articles and four schedules. Articles 1 and 2 are introductory.

18.Articles 3, 4 and 5 (Licences) make provision for (1) the Department or the Authority to modify the conditions of licences for the generation, transmission or supply of electricity in connection with the SEM, (2) the introduction of a licensing regime in respect of the function of market operator of the SEM, which consists of being responsible pursuant to the trading and settlement code referred to in the MOU for calculating charges and other payments due under that code (the “SEM Operator”), and (3) the Authority to make property arrangements schemes to facilitate the transfer of property, rights and obligations between the owner and the operator of a transmission system for the purposes of implementing the SEM. Further details in relation to the power in respect of property arrangements schemes are provided at Schedule 1.

19.Articles 6-8 inclusive (The SEM Committee) provide for the establishment of a special committee of the Authority to be known as the Single Electricity Market Committee (the “SEM Committee”) which shall take any decision as to the exercise of certain functions of the Authority, where it considers such functions materially affect or are likely materially to affect the SEM. Schedule 2 (The SEM Committee) provides further details with respect to the SEM Committee, such as its composition and proceedings. Article 8 and Schedule 3 provide powers for officers of the Authority to enter the premises of licence holders in relation to the investigation of licence contraventions.

20.Article 9 and 10 (Objectives and duties of the Department, the Authority and the SEM Committee) provide for the imposition of new SEM-related duties on the Department, the Authority and the SEM Committee in carrying out their functions in relation to the SEM.

21.Articles 11 and 12 (Miscellaneous) clarify the effect of the Order on certain agreements between licence holders and provide for certain minor and consequential amendments to be made in accordance with Schedule 4.

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