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PART 2 U.K.Electricity Market Reform

CHAPTER 2U.K.Contracts for Difference

26Licence modificationsU.K.

(1)The Secretary of State may modify—

(a)a condition of a particular licence under section 6(1)(a), (b) or (c) of EA 1989 (generation, transmission and distribution licences);

(b)the standard conditions incorporated in licences under that provision by virtue of section 8A(1A) of that Act;

(c)a document maintained in accordance with the conditions of licences under that provision, or an agreement that gives effect to a document so maintained.

(2)The Secretary of State may make a modification under subsection (1) only for the purpose of—

(a)conferring functions on the national system operator in connection with its functions by or by virtue of this Chapter;

(b)allowing or requiring services to be provided to a CFD counterparty;

(c)enforcing obligations under a CFD.

(3)Provision included in a licence, or in a document or agreement relating to licences, by virtue of the power under subsection (1) may in particular include provision of a kind that may be included in regulations.

(4)Before making a modification under this section, the Secretary of State must consult—

(a)the Scottish Ministers,

(b)the Welsh Ministers,

(c)the holder of any licence being modified,

(d)any person who is a holder of a licence to supply electricity under section 6(1)(d) of EA 1989,

(e)any person who is a holder of a licence to supply electricity under Article 10(1)(c) of the Electricity (Northern Ireland) Order 1992 (S.I. 1992/231 (N.I. 1)),

(f)the Department of Enterprise, Trade and Investment,

(g)the Authority, and

(h)such other persons as the Secretary of State considers it appropriate to consult.

(5)Subsection (4) may be satisfied by consultation before, as well as by consultation after, the passing of this Act.