Part IV

Amendment of the Electricity Act 1989

Electricity licensing

Licences authorising supply etc. of electricity
30
For section 6 of the 1989 Act there is substituted—

Licences authorising supply, etc
6
1
The Authority may grant any of the following licences—
a
a licence authorising a person to generate electricity for the purpose of giving a supply to any premises or enabling a supply to be so given (“a generation licence”);
b
a licence authorising a person to transmit electricity for that purpose in that person’s authorised area (“a transmission licence”);
c
a licence authorising a person to distribute electricity for that purpose (“a distribution licence”); or
d
a licence authorising a person to supply electricity to premises (“a supply licence”).
2
The same person may not be the holder of both a distribution licence and a supply licence.
3
A supply licence may authorise the holder to supply electricity—
a
to any premises;
b
only to premises specified in the licence, or to premises of a description so specified; or
c
only to any premises situated in a specified area, or to premises of a specified description which are so situated.
4
The Authority may, with the consent of the holder of a supply licence, modify terms included in the licence in pursuance of subsection (3) so as to extend or restrict the premises to which the licence holder may give a supply of electricity.
5
A distribution licence may authorise the holder to distribute electricity in any area, or only in an area specified in the licence.
6
The Authority may, with the consent of the holder of a distribution licence, modify terms included in the licence in pursuance of subsection (5) so as to extend or restrict the area within which the licence holder may distribute electricity.
7
A licence and any extension or restriction of a licence under subsection (4) or (6) shall be in writing.
8
A licence shall, unless previously revoked in accordance with any term of the licence, continue in force for such period as may be specified in or determined by or under the licence.
9
In this Part—
- “authorised area”, in relation to the holder of a transmission licence, means so much of the area designated as such in the licence as is not for the time being designated in a subsequent transmission licence;
- “electricity distributor” means any person who is authorised by a distribution licence to distribute electricity except where he is acting otherwise than for purposes connected with the carrying on of activities authorised by the licence;
- “electricity supplier” means any person who is authorised by a supply licence to supply electricity except where he is acting otherwise than for purposes connected with the carrying on of activities authorised by the licence.

Procedure for licence applications
6A
1
This section applies to any application—
a
for a licence; or
b
for the extension or restriction of a licence under section 6(4) or (6).
2
The application shall be made in such form and manner, and shall contain, or be accompanied by, such information and documents and such fee (if any), as may be prescribed.
3
Within the prescribed period after the making of the application the applicant shall publish a notice of the application in the prescribed manner.
4
Where the Authority proposes to refuse the application, it shall give to the applicant a notice—
a
stating that it proposes to refuse the application;
b
stating the reasons why it proposes to refuse the application; and
c
specifying the time within which representations with respect to the proposed refusal may be made,
and shall consider any representations which are duly made and not withdrawn.
5
Where the Authority grants the licence, extension or restriction applied for, it shall as soon as practicable thereafter send a notice of the grant to any person who holds a licence and whose interests may, in the opinion of the Authority, be affected by the grant.
6
In this section “prescribed” means prescribed in regulations made by the Authority.
7
Any sums received by the Authority under this section shall be paid into the Consolidated Fund.

Applications for transmission licences
6B
1
This section applies to applications for a transmission licence (in addition to the requirements of section 6A).
2
The applicant shall give notice of the application to any person who holds a transmission licence and whose authorised area includes the whole or any part of the area to which the application relates.
3
Before granting the transmission licence applied for, the Authority shall give notice—
a
stating that it proposes to grant the licence;
b
stating the reasons why it proposes to grant the licence; and
c
specifying the time (not being less than 28 days from the date of publication of the notice) within which representations or objections with respect to the proposed licence may be made,
and shall consider any representations or objections which are duly made and not withdrawn.
4
A notice under subsection (3) shall be given by publication in such manner as the Authority considers appropriate for the purpose of bringing the matters to which the notice relates to the attention of persons likely to be affected by them.
5
The Authority shall send a copy of a notice under subsection (3) to—
a
the applicant;
b
the Secretary of State; and
c
any person who holds a transmission licence and whose authorised area includes the whole or any part of the area to which the application relates.