Energy Act 2004

137 New standard conditions for transmission licences

(1) If the Secretary of State considers it necessary or expedient to do so for the purpose of implementing the new trading and transmission arrangements, he may determine new standard conditions in relation to transmission licences.

(2) The Secretary of State shall publish any conditions determined under subsection (1) in such manner as he considers appropriate.

(3) Conditions published in accordance with subsection (2) shall be standard conditions for the purposes of transmission licences, subject to any modifications of the standard conditions for the purposes of licences of that type made—

(a) under Part 1 of the 1989 Act, or

(b) under this Act,

after the determination under subsection (1).

(4) The standard conditions for the purposes of transmission licences may contain provision—

(a) for any standard condition included in a transmission licence not to have effect until brought into operation in such manner, and in such circumstances, as may be specified in, or determined under, the standard conditions;

(b) for the effect of any standard condition included in such a licence to be suspended in such manner, and in such circumstances, as may be so specified or determined;

(c) for any standard condition included in such a licence which is suspended to be brought back into operation in such manner, and in such circumstances, as may be so specified or determined.

(5) In section 8A of the 1989 Act (standard conditions of licences), in subsection (1) (incorporation in future licences of conditions which are standard conditions by virtue of section 33(1) of the Utilities Act 2000 (c. 27)), for the words from “section 6(1)” to “supply licences)” substitute “section 6(1)(a), (c) or (d) (that is to say, generation licences, distribution licences or supply licences)”.

(6) In that section, after subsection (1) insert—

“(1A) Subject to subsection (2), each condition which by virtue of section 137(3) of the Energy Act 2004 is a standard condition for the purposes of transmission licences shall be incorporated by reference in each transmission licence granted on or after the day on which section 137(6) of that Act comes into force.”

(7) The power under subsection (1) may not be exercised—

(a) after the end of the period of eighteen months beginning with the day on which that subsection comes into force, or

(b) on or after the day on which subsections (5) and (6) come into force.