Office of Public Sector Information
PART IV continued
(1) If the Secretary of State proposes to make an order providing for activities to cease to be licensable activities (otherwise than on an application by the Authority under section 56E), he shall give notice—
(a) stating that he proposes to make an order providing for the activities to cease to be licensable activities; and
(b) specifying a reasonable period (not being less than 28 days from the date of publication of the notice) within which representations or objections may be made with respect to the proposal,
and shall consider any representations or objections duly made (and not withdrawn).
(2) The notice shall be given—
(a) by serving a copy on the Authority and the Council; and
(b) by publishing it in such manner as the Secretary of State considers appropriate for bringing it to the attention of persons appearing to him to be likely to be affected by such an order.”
For sections 16 and 17 of the 1989 Act (duty to supply on request and exceptions to that duty) there are substituted—
(1) An electricity distributor is under a duty—
(a) to make a connection between a distribution system of his and any premises, when required to do so by—
(i) the owner or occupier of the premises; or
(ii) an authorised supplier acting with the consent of the owner or occupier of the premises,
for the purpose of enabling electricity to be conveyed to or from the premises;
(b) to make a connection between a distribution system of his and any distribution system of another authorised distributor, when required to do so by that authorised distributor for the purpose of enabling electricity to be conveyed to or from that other system.
(2) Any duty under subsection (1) includes a duty to provide such electric lines or electrical plant as may be necessary to enable the connection to be used for the purpose for which it is required.
(3) The duties under this section shall be performed subject to such terms as may be agreed under section 16A for so long as the connection is required.
(4) In this section and sections 16A to 23—
(a) any reference to making a connection includes a reference to maintaining the connection (and continuing to provide the necessary electric lines or electrical plant);
(b) any reference to requiring a connection includes a reference to requiring the connection to be maintained (and the continued provision of the necessary electric lines and electrical plant); and
(c) any reference to the provision of any electric line or electrical plant is a reference to the provision of such a line or an item of electrical plant either by the installation of a new one or by the modification of an existing one.
(5) The duties under this section are subject to the following provisions of this Part and any regulations made under those provisions.
(1) Where a person requires a connection to be made by an electricity distributor in pursuance of section 16(1), he shall give the distributor a notice requiring him to offer terms for making the connection.
(2) That notice must specify—
(a) the premises or distribution system to which a connection to the distributor’s system is required;
(b) the date on or by which the connection is to be made; and
(c) the maximum power at which electricity may be required to be conveyed through the connection.
(3) The person requiring a connection shall also give the distributor such other information in relation to the required connection as the distributor may reasonably request.
(4) A request under subsection (3) shall be made as soon as practicable after the notice under subsection (1) is given (if not made before that time).
(5) As soon as practicable after receiving the notice under subsection (1) and any information requested under subsection (3) the distributor shall give to the person requiring the connection a notice—
(a) stating the extent (if any) to which his proposals are acceptable to the distributor and specifying any counter proposals made by him;
(b) specifying any payment which that person will be required to make under section 19(1) or regulations under section 19(2);
(c) specifying any security which that person will be required to give under section 20; and
(d) stating any other terms which that person will be required to accept under section 21.
(6) A notice under subsection (5) shall also contain a statement of the effect of section 23.
(1) Nothing in section 16(1) requires an electricity distributor to make a connection if and to the extent that—
(a) he is prevented from doing so by circumstances not within his control;
(b) circumstances exist by reason of which his doing so would or might involve his being in breach of regulations under section 29, and he has taken all such steps as it was reasonable to take both to prevent the circumstances from occurring and to prevent them from having that effect; or
(c) it is not reasonable in all the circumstances for him to be required to do so.
(2) Without prejudice to the generality of subsection (1) an electricity distributor is not required to make a connection if—
(a) making the connection involves the distributor doing something which, without the consent of another person, would require the exercise of a power conferred by any provision of Schedule 3 or 4;
(b) the distributor’s licence does not provide for that provision to have effect in relation to him; and
(c) any necessary consent has not, at the time the request is made, been given.
(3) Subsection (1)(c) does not permit an electricity distributor to disconnect any premises or distribution system to which a connection is being maintained by him unless the distributor gives—
(a) where the connection is to premises, to the occupier or to the owner if the premises are not occupied;
(b) where the connection is to another distribution system, to the person who is authorised by a licence or exemption to run that system,
not less than seven working days' notice of his intention to disconnect the premises or distribution system.”
Section 18 of the 1989 Act (charging by reference to tariffs) shall cease to have effect.
(1) Section 19 of the 1989 Act (power to recover expenditure) is amended as follows.
(2) In subsection (1) for “a public electricity supplier”, “supplier” and “supply of electricity” there is substituted respectively “an electricity distributor”, “distributor” and “connection”.
(3) For subsection (2) there is substituted—
“(2) The Secretary of State may, after consultation with the Authority, make provision by regulations for entitling an electricity distributor to require a person requiring a connection in pursuance of section 16(1) to pay to the distributor, in respect of any expenses reasonably incurred in providing any electric line or electrical plant used for the purpose of making the connection, such amount as may be reasonable in all the circumstances if—
(a) the connection is required within the prescribed period after the provision of the line or plant; and
(b) a person (“the initial contributor”) has made a payment to the distributor in respect of those expenses, the line or plant having been provided for the purpose of making a connection to any premises or distribution system as required by that person.”
(4) In subsection (3) for “a public electricity supplier” there is substituted “an electricity distributor.”
(5) In subsection (4) for the words from “maintaining” to the end there is substituted “continuing to provide it”.
(1) Section 20 of the 1989 Act (power to require security) is amended as follows.
(2) For subsection (1) there is substituted—
“(1) Subject to the following provisions of this section, an electricity distributor may require any person who requires a connection in pursuance of section 16(1) to give him reasonable security for the payment to him under section 19 in respect of the provision of any electric line or electrical plant.
(1A) If a person fails to give any security required under subsection (1), or the security given has become invalid or insufficient, and he fails to provide alternative or additional security, the electricity distributor may if he thinks fit—
(a) if the connection has not been made, refuse to provide the line or plant for so long as the failure continues; or
(b) if the connection is being maintained, disconnect the premises or distribution system in question.”
(3) In subsection (3), for “a public electricity supplier” and “supplier” (in each place) there is substituted respectively “an electricity distributor” and “distributor”.
(4) Subsections (2) and (4) shall cease to have effect.
For section 21 of the 1989 Act (additional terms of connection) there is substituted—
An electricity distributor may require any person who requires a connection in pursuance of section 16(1) above to accept in respect of the making of the connection—
(a) any restrictions which must be imposed for the purpose of enabling the distributor to comply with regulations under section 29;
(b) any terms which it is reasonable in all the circumstances for that person to be required to accept; and
(c) without prejudice to the generality of paragraph (b), any terms restricting any liability of the distributor for economic loss resulting from negligence which it is reasonable in all the circumstances for that person to be required to accept.”
For section 22 of the 1989 Act (special agreements with respect to supply) there is substituted—
(1) Notwithstanding anything in sections 16 to 21, a person who requires a connection in pursuance of section 16(1) may enter into an agreement with the electricity distributor (referred to in this Part as a “special connection agreement”) for the making of the connection on such terms as may be agreed by the parties.
(2) So long as a special connection agreement is effective, the rights and liabilities of the parties shall be those arising under the agreement and not those provided for by sections 16 to 21.
(3) Nothing in subsection (2) prevents the giving of a notice under section 16A(1) requiring a connection to be made as from the time when a special connection agreement ceases to be effective.”
In section 9 of the 1989 Act (general duties of licence holders), for subsection (1) there is substituted—
“(1) It shall be the duty of an electricity distributor—
(a) to develop and maintain an efficient, co-ordinated and economical system of electricity distribution;
(b) to facilitate competition in the supply and generation of electricity.”
(1) In section 24 of the 1989 Act (the public electricity supply code), for “supply of electricity by public electricity suppliers” there is substituted “distribution and supply of electricity”.
(2) For Schedule 6 to the 1989 Act (the public electricity supply code) there is substituted the provisions of Schedule 4.
Schedule 5 (which amends Schedule 7 to the 1989 Act) has effect.
(1) Section 10 of the 1989 Act (powers of licence holders) is amended as follows.
(2) In subsection (1), in paragraph (a) the words “a public electricity supplier or” shall cease to have effect and, in paragraph (b) after “to” (in the second place it appears) there is inserted “an electricity distributor or”.
(3) In subsection (3), for “A licence under section 6(1)(a) above” there is substituted “A generation licence”.
(4) After subsection (3) there is inserted—
“(3A) Subsection (3) applies in relation to any purpose connected with the supply to any premises of any gas or liquid subjected to a cooling effect produced in association with electricity as it applies to a purpose mentioned in that subsection.”
(5) In subsection (4), for “A licence under paragraph (b) or (c) of section 6(1) above” there is substituted “A transmission licence”.
(1) In section 39 of the 1989 Act—
(a) in subsection (2)(a), after “section” there is inserted “or their rights under section 39A”; and
(b) subsections (5), (5A) and (6) shall cease to have effect.
(2) After section 39 of the 1989 Act there is inserted—
(1) The Authority may with the consent of the Secretary of State make regulations prescribing such standards of performance in connection with the activities of electricity distributors, so far as affecting customers or potential customers of electricity suppliers, as in the Authority’s opinion ought to be achieved in individual cases.
(2) If an electricity distributor fails to meet a prescribed standard, he shall make to any person who is affected by the failure and is of a prescribed description such compensation as may be determined by or under the regulations.
(3) The regulations may—
(a) prescribe circumstances in which electricity distributors are to inform customers or potential customers of electricity suppliers of their rights under this section;
(b) prescribe such standards of performance in relation to any duty arising under paragraph (a) as, in the Authority’s opinion, ought to be achieved in all cases;
(c) make provision as to the manner in which compensation under this section is to be made;
(d) prescribe circumstances in which electricity distributors are to be exempted from any requirements of the regulations or this section; and
(e) if the Authority is of the opinion that the differences are such that no electricity distributor would be unduly disadvantaged in competing with other electricity distributors, make different provision with respect to different electricity distributors.
(4) Provision made under subsection (3)(c) may—
(a) require or permit compensation to be made on behalf of electricity distributors by electricity suppliers to customers or potential customers; and
(b) require electricity suppliers to provide services to electricity distributors in connection with the making of compensation under this section.
(5) The making of compensation under this section in respect of any failure to meet a prescribed standard shall not prejudice any other remedy which may be available in respect of the act or omission which constituted that failure.
(6) In this section “prescribed” means prescribed by regulations under this section.
(1) Any dispute arising under section 39 or 39A or regulations made under either of those sections—
(a) may be referred to the Authority by either party or, with the agreement of either party, by the Council; and
(b) on such a reference, shall be determined by order made by the Authority or, if it thinks fit, by such person (other than the Council) as may be prescribed.
(2) A person making an order under subsection (1) shall include in the order his reasons for reaching his decision with respect to the dispute.
(3) The practice and procedure to be followed in connection with any such determination shall be such as may be prescribed.
(4) An order under subsection (1) shall be final and shall be enforceable—
(a) in England and Wales, as if it were a judgment of a county court; and
(b) in Scotland, as if it were an extract registered decree arbitral bearing a warrant for execution issued by the sheriff.
(5) In this section “prescribed” means prescribed by regulations made by the Authority with the consent of the Secretary of State.”
After section 40 of the 1989 Act there is inserted—
(1) The Authority may from time to time—
(a) determine such standards of overall performance in connection with the activities of electricity distributors as, in its opinion, ought to be achieved by them; and
(b) arrange for the publication, in such form and in such manner as it considers appropriate, of the standards so determined.
(2) Different standards may be determined for different electricity distributors if the Authority is of the opinion that the differences are such that no electricity distributor would be unduly disadvantaged in competing with other electricity distributors.
(3) It shall be the duty of every electricity distributor to conduct his business in such a way as can reasonably be expected to lead to his achieving the standards set under this section.”
After section 40A of the 1989 Act (which is inserted by section 55 above) there is inserted—
(1) Before prescribing standards of performance in regulations under section 39 or 39A, or determining standards of performance under section 40 or 40A, the Authority shall—
(a) arrange for such research as the Authority considers appropriate with a view to discovering the views of a representative sample of persons likely to be affected and consider the results;
(b) publish a notice of its proposals in accordance with subsections (2) and (3) and consider any representations which are duly made in respect of those proposals; and
(c) consult the Council and other persons or bodies mentioned in subsection (4).
(2) The notice required by subsection (1)(b) is a notice—
(a) stating that the Authority proposes to prescribe or determine standards of performance and setting out the standards of performance proposed;
(b) stating the reasons why it proposes to prescribe or determine those standards of performance; and
(c) specifying the time (not being less than 28 days from the date of publication of the notice) within which representations with respect to the proposals may be made.
(3) A notice required by subsection (1)(b) shall be published in such manner as the Authority considers appropriate for the purpose of bringing it to the attention of those likely to be affected by the proposals.
(4) The persons or bodies to be consulted by the Authority under subsection (1)(c) are—
(a) electricity suppliers (in the case of standards of performance under section 39 or 40) or electricity distributors and electricity suppliers (in the case of standards of performance under section 39A or 40A); and
(b) persons or bodies appearing to the Authority to be representative of persons likely to be affected by the regulations or determination.
(5) The Authority shall make arrangements for securing that notices under subsection (1)(b), regulations under section 39 or 39A and determinations under section 40 or 40A are made available to the public by whatever means it considers appropriate.”
(1) Section 42 of the 1989 Act is amended as follows.
(2) In subsection (1), paragraph (c) (and the word “and” preceding it) shall cease to have effect.
(3) After subsection (1) there is inserted—
“(1A) The Authority shall from time to time collect information with respect to—
(a) the compensation made by electricity distributors under section 39A above;
(b) the levels of overall performance achieved by electricity distributors.”
(4) In subsection (2) for the words from the beginning to “year” there is substituted “At such times” and in paragraph (b) the words “or 41 above” shall cease to have effect.
(5) After subsection (2) there is inserted—
“(2A) At such times as may be specified in a direction given by the Authority, each electricity distributor shall furnish to the Authority the following information, namely—
(a) as respects each standard prescribed by regulations under section 39A, the number of cases in which compensation was made and the aggregate amount or value of that compensation; and
(b) as respects each standard determined under section 40A, such information with respect to the level of performance achieved by the distributor as may be so specified.”
(6) Subsection (3) shall cease to have effect.
For section 42A of the 1989 Act there is substituted—
(1) The Authority may make regulations requiring such information as may be specified or described in the regulations about—
(a) the standards of overall performance determined under section 40 or 40A; and
(b) the levels of performance achieved as respects those standards,
to be given by electricity suppliers or electricity distributors to customers or potential customers of electricity suppliers.
(2) Regulations under this section may include provision—
(a) specifying the form and manner in which and the frequency with which information is to be given; and
(b) requiring information about the matters mentioned in subsection (1)(a) or (b) and relating to electricity distributors to be given by electricity distributors to electricity suppliers and by electricity suppliers to their customers or potential customers.”
(1) After section 27 of the 1989 Act there is inserted—
(1) Where the Authority is satisfied that a licence holder—
(a) has contravened or is contravening any relevant condition or requirement; or
(b) has failed or is failing to achieve any standard of performance prescribed under section 39 or 39A,
the Authority may, subject to section 27C, impose on the licence holder a penalty of such amount as is reasonable in all the circumstances of the case.
(2) The Authority shall not impose a penalty on a licence holder under subsection (1) where it is satisfied that the most appropriate way of proceeding is under the [1998 c. 41.] Competition Act 1998.
(3) Before imposing a penalty on a licence holder under subsection (1) the Authority shall give notice—
(a) stating that it proposes to impose a penalty and the amount of the penalty proposed to be imposed;
(b) setting out the relevant condition or requirement or the standard of performance in question;
(c) specifying the acts or omissions which, in the opinion of the Authority, constitute the contravention or failure in question and the other facts which, in the opinion of the Authority, justify the imposition of a penalty and the amount of the penalty proposed; and
(d) specifying the period (not being less than 21 days from the date of publication of the notice) within which representations or objections with respect to the proposed penalty may be made,
and shall consider any representations or objections which are duly made and not withdrawn.
(4) Before varying any proposal stated in a notice under subsection (3)(a) the Authority shall give notice—
(a) setting out the proposed variation and the reasons for it; and
(b) specifying the period (not being less than 21 days from the date of publication of the notice) within which representations or objections with respect to the proposed variation may be made,
and shall consider any representations or objections which are duly made and not withdrawn.
(5) As soon as practicable after imposing a penalty, the Authority shall give notice—
(a) stating that it has imposed a penalty on the licence holder and its amount;
(b) setting out the relevant condition or requirement or the standard of performance in question;
(c) specifying the acts or omissions which, in the opinion of the Authority, constitute the contravention or failure in question and the other facts which, in the opinion of the Authority, justify the imposition of the penalty and its amount; and
(d) specifying a date, no earlier than the end of the period of 42 days from the date of service of the notice on the licence holder, by which the penalty is required to be paid.
(6) The licence holder may, within 21 days of the date of service on him of a notice under subsection (5), make an application to the Authority for it to specify different dates by which different portions of the penalty are to be paid.
(7) Any notice required to be given under this section shall be given—
(a) by publishing the notice 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;
(b) by serving a copy of the notice on the licence holder; and
(c) by serving a copy of the notice on the Council.
(8) No penalty imposed by the Authority under this section may exceed 10 per cent. of the turnover of the licence holder (determined in accordance with provisions specified in an order made by the Secretary of State).
(9) An order under subsection (8) shall not be made unless a draft of the instrument containing it has been laid before and approved by a resolution of each House of Parliament.
(10) Any sums received by the Authority by way of penalty under this section shall be paid into the Consolidated Fund.
(11) The power of the Authority under subsection (1) is not exercisable in respect of any contravention or failure before the commencement of section 59 of the Utilities Act 2000.
(1) The Authority shall prepare and publish a statement of policy with respect to the imposition of penalties and the determination of their amount.
(2) In deciding whether to impose a penalty, and in determining the amount of any penalty, in respect of a contravention or failure the Authority shall have regard to its statement of policy most recently published at the time when the contravention or failure occurred.
(3) The Authority may revise its statement of policy and where it does so shall publish the revised statement.
(4) Publication under this section shall be in such manner as the Authority considers appropriate for the purpose of bringing the matters contained in the statement of policy to the attention of persons likely to be affected by them.
(5) The Authority shall undertake such consultation as it considers appropriate when preparing or revising its statement of policy.
Utilities Act 2000