PART 4 Amendment of Northern Ireland legislation

96 The Electricity (Northern Ireland) Order 1992
For Article 11A (compliance with Community obligations) substitute—

“11A Licences: further conditions
1 The conditions included in a licence must—
(a) require the licence holder to give to the Authority, in each year it is required by the Authority to do so, a report containing such information as the Authority may require in relation to—
(i) the present and likely future balance between supply and demand for electricity in Northern Ireland and Ireland;
(ii) additional generating capacity under construction or being planned for Northern Ireland and Ireland;
(iii) the quality and level of maintenance of the generating plant and equipment and of the transmission and distribution and supply systems in Northern Ireland and Ireland,
and to give a copy of that report to the Department;
(b) require the licence holder to keep accounts in accordance with requirements corresponding to those in Article 31 of the Directive and to have them audited in accordance with those requirements and must confer on the Department and the Authority a right of access to the holder’s accounts for the purpose of ensuring compliance with those requirements; and
(c) ensure that all customers can purchase electricity from the supplier of their choice.
2 For the purposes of paragraph (1)(b), the reference to Article 31 of the Directive is to be read as a reference to that Article with the modifications that—
(a) in paragraph (2), in the first sub-paragraph, the words from “adopted pursuant” to the end were omitted; and
(b) in paragraph (3), the third sentence were omitted.
3 Transmission and distribution licence conditions must ensure that the holder—
(a) does not disclose commercially sensitive information obtained in the course of carrying out its business, except in accordance with a legal duty to disclose information; and
(b) prevents information about its own activities which might be commercially advantageous from being disclosed in a discriminatory manner.
4 Transmission licence conditions must require the holder, as appropriate having regard to the activities authorised by the licence—
(a) to carry out tasks corresponding to the tasks mentioned in Article 12 or 15(1) of the Directive;
(b) where the holder carries out tasks corresponding to those mentioned in Article 15(1) of the Directive, to do so in accordance with such criteria as may be determined and published by the Authority;
(c) in relation to any task corresponding to a task mentioned in Article 15(3) to (5) of the Directive, to follow such rules as may be specified in the conditions;
(d) to use transparent, non-discriminatory and market-based procedures in procuring the energy used in the carrying out of the holder’s functions;
(e) where the holder balances electricity inputs to and offtakes from any transmission system used under the licence, to adopt and follow rules which are objective, transparent and non-discriminatory; and
(f) to comply with requirements corresponding to the requirements for system access laid down by Article 32 of the Directive.
5 For the purposes of paragraph (4), the references to Articles 12, 15 and 32 of the Directive are to be read as references to those Articles with the modifications that—
(a) Article 12 is to be read as if point (h) were omitted;
(b) Article 15 is to be read as if—
(i) references to “Member States” or to “regulatory authorities” (however expressed) were references to “the Authority”, except as provided in heads (iii) and (iv);
(ii) in paragraph (3), the reference to Article 16 of Directive 2009/28/EC were a reference to that Article with references in it to Member States being read as references to “the Authority”;
(iii) in paragraph (4), the reference to “the Member State concerned” were a reference to “Northern Ireland”;
(iv) in paragraph (5), for “where Member States have so provided or Member States” there were substituted a reference to “the Authority”;
(c) Article 32 is to be read as if—
(i) references to “Member States”, and to “the regulatory authorities”, were references to “the Authority”;
(ii) in paragraph (1), “in accordance with Article 37” were omitted; and
(iii) in paragraph (2), “in particular having regard to Article 3, and” were omitted.
6 Distribution licence conditions must require the holder—
(a) to carry out tasks corresponding to the tasks mentioned in Articles 25(1) and (7) of the Directive;
(b) not to discriminate between system users or classes of system users, and to provide system users with the information they need for efficient access to and use of the distribution system;
(c) when dispatching generating installations, to follow such rules as may be specified in the conditions for the purposes of giving priority to generating installations using renewable energy sources or waste or producing combined heat or power;
(d) to use transparent non-discriminatory and market-based procedures in procuring the energy used in the carrying out of the holder’s functions;
(e) where the holder balances electricity inputs to and offtakes from any distribution system used under the licence, to adopt and follow rules which are objective, transparent and non-discriminatory;
(f) to comply with requirements corresponding to the requirements for system access mentioned in Article 32 of the Directive;
(g) to facilitate (to the extent within the holder’s control) the ability of customers to have access to consumption data.
7 For the purposes of paragraph (6)(f), the reference to Article 32 of the Directive is to be read as a reference to that Article with the modifications set out in paragraph (5)(c).
8 Transmission licence conditions must—
(a) where the holder, or a holder of a transmission licence in relation to whom the holder is a related transmission licensee (within the meaning given by Article 10L(1)), is certified under the first certification ground in Article 10F, require that the ownership unbundling requirement in Article 10G continues to be met in relation to the holder;
(b) where the holder, or a holder of a transmission licence in relation to whom the holder is a related transmission licensee, is certified under the second certification ground in Article 10F, require the maintenance in force of arrangements by virtue of which the requirements mentioned in Article 9(9) of the Directive were met;
(c) where the holder is certified under the third certification ground in Article 10F or is designated as an independent system operator for the purposes of that certification ground—
(i) require that requirements corresponding to the requirements mentioned in Articles 13(2) and 14(1) and (2) of the Directive which are relevant to the holder continue to be met; and
(ii) require that requirements corresponding to the requirements mentioned in Article 13(4) or 13(5) of the Directive which are relevant to the holder continue to be met; and
(d) require the holder to notify the Authority if any of the other conditions referred to in this paragraph ceases or is likely to cease to be met.
9 For the purposes of paragraph (8)(b), the reference to Article 9(9) of the Directive is to be treated as set out in Article 10F(9) of this Order.
10 For the purposes of paragraph (8)(c), the references to Articles 13(2), (4) and (5) and 14(2) of the Directive are to be read as references to those provisions with the following modifications—
(a) Article 13(2) is to be read as if it contained the modifications in Article 10F(10) of this Order;
(b) Article 13(4) is to be read as if—
(i) in the first sentence, “and” were inserted after “access charges”, and the words from “and payments” to “Regulation (EC) No. 714/2009” were omitted; and
(ii) in the third sentence “in accordance with this Chapter” were omitted;
(c) Articles 13(5) and 14(2) are to be read as if references to “the regulatory authority” were references to “the Authority”.
11 Subject to paragraph (8), distribution licence conditions must, in the case of a distribution licence granted to a person forming part of a vertically integrated undertaking—
(a) require that person to be independent in terms of its legal form, organisation and decision making from other activities not relating to distribution;
(b) require that person to meet criteria corresponding to the criteria set out in points (a) to (d) of Article 26(2) of the Directive; and
(c) require that person not to take advantage of its vertical integration to distort competition and, in particular, in its communication and branding, not to create confusion in respect of the separate identity of any supply branch of the vertically integrated undertaking;
12 For the purposes of paragraph (11)(b), Article 26(2) of the Directive is to be read as if—
(a) in point (c), instead of “in accordance with Article 37(6), it read “by the Authority”;
(b) in point (d), instead of to “the regulatory authority referred to in Article 35(1)”, it read “to the Authority”.
13 Transmission licence conditions must, in particular, in the case of a transmission licence granted to a person forming part of a vertically integrated undertaking who carries on the combined activity of transmission and distribution system operator to which Article 29 of the Directive applies, as appropriate having regard to the activities authorised by the licence, require that person to comply with requirements corresponding to the requirements mentioned in that provision in relation to those activities.
14 Paragraph (11)(a) does not prevent a person from acting as both a transmission system operator and a distribution system operator.
15 Transmission, distribution and supply licence conditions must require that any supply of electricity by the licence holder to a household customer, or (as the case may be) any transmission or distribution by a licence holder in connection with such a supply, meets specified quality standards.
16 Supply licence conditions must—
(a) require that any supply of electricity by a licence holder to a household customer is given at reasonable, easily and clearly comparable, transparent and non-discriminatory prices;
(b) require the introduction and maintenance of safeguards to help any consumers referred to in Article 12(3) of the Energy (Northern Ireland) Order 2003 in particular to avoid disconnection from an electricity supply;
(c) ensure that consumers of electricity have access to information corresponding to that mentioned in Article 3(9) of the Directive;
(d) ensure that household customers are not charged for changing supplier and are able to use transparent, simple and inexpensive complaints procedures;
(e) require that information provided to consumers of electricity (including information about the contractual terms and conditions offered to such consumers and dispute settlement mechanisms) by the holder of such a licence is transparent and accurate;
(f) make provision for customers wishing to change suppliers to be able to do so within 3 weeks;
(g) ensure that customers have consumption data at their disposal and are able to give access to that data to other suppliers free of charge;
(h) ensure that customers have access to information about sources of energy efficiency advice;
(i) require that the holder of a licence provides its customers with a copy of the guidance which is to be published by the Authority pursuant to Article 7(5) of the Energy (Northern Ireland) Order 2003;
(j) ensure that household customers are offered a wide choice of payment methods, which do not unduly discriminate between customers;
(k) ensure that the terms and conditions of supply contracts offered by the licence holder to household customers contain information corresponding to the information mentioned in point (a), and meet criteria corresponding to the criteria set out in points (a) and (d), of paragraph 1 of Annex I to the Directive;
(l) make provision for customers to be protected from unfair or misleading selling methods;
(m) ensure that household customers receive a final bill following changing suppliers no later than 6 weeks after the change of supplier has taken place; and
(n) ensure that the holder of the licence retains for at least 5 years data corresponding to the data mentioned in Article 40(1) and (2) of the Directive.
17 For the purposes of paragraph (16)(c), the reference to Article 3(9) of the Directive is to be read as a reference to that provision with the modification that, in the second sub-paragraph, the reference to an undertaking situated outside the Community is to be read as if it were a reference to an undertaking situated outside Northern Ireland.
18 For the purposes of paragraphs (15) and (16), “household customer” means a customer who purchases electricity for consumption by the customer’s own household.”

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