Part II

Objectives of regulation of gas and electricity

Electricity

Objectives and duties under 1989 Act.
13
For section 3 of the 1989 Act (general duties of Secretary of State and Director) there is substituted—

The principal objective and general duties of the Secretary of State and the Authority.
3A
1
The principal objective of the Secretary of State and the Gas and Electricity Markets Authority (in this Act referred to as “the Authority”) in carrying out their respective functions under this Part is to protect the interests of consumers in relation to electricity conveyed by distribution systems, wherever appropriate by promoting effective competition between persons engaged in, or in commercial activities connected with, the generation, transmission, distribution or supply of electricity.
2
The Secretary of State and the Authority shall carry out those functions in the manner which he or it considers is best calculated to further the principal objective, having regard to—
a
the need to secure that all reasonable demands for electricity are met; and
b
the need to secure that licence holders are able to finance the activities which are the subject of obligations imposed by or under this Part or the Utilities Act 2000.
3
In performing that duty, the Secretary of State or the Authority shall have regard to the interests of—
a
individuals who are disabled or chronically sick;
b
individuals of pensionable age;
c
individuals with low incomes; and
d
individuals residing in rural areas;
but that is not to be taken as implying that regard may not be had to the interests of other descriptions of consumer.
4
The Secretary of State and the Authority may, in carrying out any function under this Part, have regard to—
a
the interests of consumers in relation to gas conveyed through pipes (within the meaning of the Gas Act 1986); and
b
any interests of consumers in relation to—
i
telecommunication services and telecommunication apparatus (within the meaning of the Telecommunications Act 1984); or
ii
water services or sewerage services (within the meaning of the Water Industry Act 1991),
which are affected by the carrying out of that function.
5
Subject to subsection (2), the Secretary of State and the Authority shall carry out their respective functions under this Part in the manner which he or it considers is best calculated—
a
to promote efficiency and economy on the part of persons authorised by licences or exemptions to transmit, distribute or supply electricity and the efficient use of electricity conveyed by distribution systems;
b
to protect the public from dangers arising from the generation, transmission, distribution or supply of electricity; and
c
to secure a diverse and viable long-term energy supply,
and shall, in carrying out those functions, have regard to the effect on the environment of activities connected with the generation, transmission, distribution or supply of electricity.
6
In this section “consumers” includes both existing and future consumers.
7
In this section and sections 3B and 3C, references to functions of the Secretary of State or the Authority under this Part include a reference to functions under the Utilities Act 2000 which relate to electricity conveyed by distribution systems.
8
In this Part, unless the context otherwise requires—
- “exemption” means an exemption granted under section 5;
- “licence” means a licence under section 6 and “licence holder” shall be construed accordingly.
S. 13 wholly in force at 20.12.2000, see s. 102(2)(3) and S.I. 2000/3343, art. 2, Sch. (subject to arts. 3-15)
1986 c. 44.
1984 c. 12.
1991 c. 56.