Citation, commencement, transitional and saving provisions for applications lodged before 1st October 2001

1. —(1) These Regulations may be cited as the Electricity (Applications for Licences and Extensions and Restrictions of Licences) Regulations 2001 and shall come into force on 1st October 2001.

(2) In relation to any application made before the date on which these Regulations come into force the Electricity (Applications for Licences and Extensions of Licences) Regulations 1990( 4 ) shall continue to apply to the exclusion of these Regulations.

Revocation

2. Subject to regulation 1, the Electricity (Applications for Licences and Extensions of Licences) Regulations 1990 are hereby revoked.

Interpretation

3. —(1) In these Regulations, unless the context otherwise requires—

“the 2000 Act” means the Utilities Act 2000;

“the Act” means the Electricity Act 1989;

“application” means an application for a licence, an application for an extension of a licence or an application for a restriction of a licence under the Act; and references to an application in respect of a licence shall be construed accordingly;

“the Authority” means the Gas and Electricity Markets Authority established by section 1 of the 2000 Act;

“distribution licence” means a licence granted or to be granted under section 6(1)(c) of the Act;

“domestic premises” means premises used wholly or mainly for domestic purposes;

“extension”, in relation to a supply licence, means an extension of the licence under section 6(4) of the Act and, in relation to a distribution licence, means an extension of the licence under section 6(6) of the Act;

“generation licence” means a licence granted or to be granted under section 6(1)(a) of the Act;

“restriction”, in relation to a supply licence, means a restriction of the licence under section 6(4) of the Act and, in relation to a distribution licence, means a restriction of the licence under section 6(6) of the Act;

“supply licence” means a licence granted or to be granted under section 6(1)(d) of the Act; and

“transmission licence” means a licence granted or to be granted under section 6(1)(b) of the Act.

(2) In these Regulations, unless the context otherwise requires, a reference to a standard condition is a reference to a standard condition in relation to licences under section 6(1)(a), (b), (c) and (d) of the Act which is determined under section 33(1) of the 2000 Act, subject to such modifications of the standard conditions made under Part I of the Act or the 2000 Act after the determination under that section.

(3) Unless the context otherwise requires, other expressions appearing in these Regulations shall have the same meaning, if any, as they have in Part I of the Act.

(4) In these Regulations, unless the context otherwise requires—

(a) any reference to a numbered regulation or Schedule is a reference to the regulation or Schedule bearing that number in these Regulations; and

(b) any reference to a numbered paragraph is a reference to the paragraph bearing that number in the regulation in which the reference occurs.

Manner of application

4 An application shall be—

(a) made in writing, addressed to the Authority and delivered or sent by prepaid post to the Authority at its principal office; and

(b) signed and dated by or on behalf of the applicant, stating, where signed on behalf of the applicant, the capacity of the signatory.

Form of application

5. An application shall—

(a) be in the form specified in Schedule 1 or a form to the like effect, and shall contain the information there specified; and

(b) be accompanied by the information and documents specified in Schedule 2.

Additional information and documents to accompany application

6. —(1) Subject to paragraphs (2) and (3)

(a) an application in respect of a generation licence shall be accompanied by the information and documents specified in Part I of Schedule 3;

(b) an application in respect of a transmission licence shall be accompanied by the information and documents specified in Part II of Schedule 3;

(c) an application in respect of a distribution licence shall be accompanied by the information and documents specified in Part III of Schedule 3; and

(d) an application in respect of a supply licence shall be accompanied by the information and documents specified in Part IV of Schedule 3.

(2) The obligation imposed by paragraph (1) shall, to the extent that information and documents are specified in Schedule 3 by reference to, or in relation to, a standard condition, apply—

(a) subject to paragraph (3), in the case of an application for a licence, as if the standard condition in question were to be included and have effect in any licence granted as a result of the application;

(b) in the case of an application for an extension or restriction of a licence, in relation to such of the standard conditions in question as have been included and have effect in that licence.

(3) Where a modification to any standard condition is requested in accordance with paragraph 3 of Schedule 1, the obligation imposed by paragraph (2)(a) above shall be modified accordingly.

Application fees

7. —(1) Subject to paragraph (2), each application of the description specified in column 1 of Schedule 4 shall be accompanied by the corresponding fee specified in column 2 of that Schedule.

(2) Where more than one such fee would, apart from this paragraph, be payable in respect of a particular application, only the higher or highest such fee, as the case may be, shall be payable.

Notice of applications

8. —(1) The period prescribed for the purpose of section 6A(3) of the Act (notice of applications) is seven days.

(2) The notice of an application to be published within the prescribed period—

(a) in respect of an application for an extension of a distribution licence, shall be published—

(i) where the application relates solely to premises in any part of England and Wales, in the London Gazette; or

(ii) where the application relates solely to premises in any part of Scotland, in the Edinburgh Gazette; and

(b) in respect of any other application, shall be published in the London and Edinburgh Gazettes.

(3) Notice of an application in respect of a generation licence shall also be published within the prescribed period, in such newspapers as are calculated to ensure that the notice is circulated throughout every area in which is or may be located any generating station to be operated under the licence.

(4) Notice of an application in respect of a transmission licence shall also be published within the prescribed period, where the application relates to the transmission of electricity in an authorised area, in such newspapers as are calculated to ensure that the notice is circulated throughout that area.

(5) Notice of an application in respect of a distribution licence shall also be published within the prescribed period, where the application relates to the distribution of electricity in any area or only in an area specified, in such newspapers as are calculated to ensure that the notice is circulated throughout that area.

(6) Notice of an application in respect of a supply licence which would authorise, or authorises, the supply of electricity to domestic premises shall also be published within the prescribed period—

(a) where the application relates to premises of a specified description and is not limited to premises situated in an area specified in the application, in such newspapers as are calculated to ensure that the notice is circulated throughout Great Britain;

(b) where the application relates to premises situated in an area specified in the application, in such newspapers as are calculated to ensure that the notice is circulated throughout that area;

(c) where the application relates to particular premises, in such newspapers as are calculated to ensure that the notice is circulated throughout the area or areas in which those premises are situated.

(7) The applicant shall deliver, or send by prepaid post, a copy of the London and Edinburgh Gazettes and of each newspaper in which notice of the application is published in accordance with this regulation to the Authority at its principal office within seven days of their publication.

(8) In this regulation “the prescribed period” means the period referred to in paragraph (1).

Regulation 5

SCHEDULE 1 FORM OF APPLICATION IN RESPECT OF A GENERATION LICENCE, TRANSMISSION LICENCE, DISTRIBUTION LICENCE OR SUPPLY LICENCE UNDER THE ELECTRICITY ACT 1989

Regulation 5

SCHEDULE 2 DOCUMENTS AND OTHER INFORMATION TO ACCOMPANY AN APPLICATION

Financial Information

1. Where the applicant is a company, the documents specified in sub-paragraph (1) and, if the applicant is a subsidiary undertaking, also those specified in sub-paragraphs (2) and, if applicable, (3) below.

(1) Copies of—

(a) the most recent audited annual report and accounts of the applicant in respect of which an auditors' report has been prepared, together with that auditors' report;

(b) the audited annual report and accounts of the applicant for the two financial years preceding that to which the accounts referred to in sub-paragraph (a) above relate, together with the appropriate auditors' reports; and

(c) such interim accounts and management accounts (whether audited or not) as may have been prepared in respect of a period more recent than that covered by any of the documents specified in sub-paragraphs (a) and (b) above.

(2) Copies of—

(a) the most recent audited annual accounts in respect of the group of which the subsidiary undertaking forms part and in respect of which an auditors' report has been prepared, together with that report;

(b) the audited annual accounts in respect of that group for the two financial years preceding that to which the accounts referred to in sub-paragraph (a) above relate, together with the appropriate auditors' reports; and

(c) such interim accounts and management accounts for that group (whether audited or not) as may have been prepared in respect of a period more recent than that covered by any of the documents specified in sub-paragraphs (a) and (b) above.

(3) If the documents specified in sub-paragraph (2) above do not include the consolidated audited annual accounts for any parent undertaking or subsidiary undertaking of the applicant established outside Great Britain, copies of such accounts, together with any auditors' reports, as indicate the financial state of affairs of the group in question—

(a) at the time of the application; and

(b) at the end of each of the three financial years preceding that time.

2. Where the applicant is not a company, such accounts and other information as indicate the financial state of affairs of the applicant and its profit and loss, and the statements for the most recent period, together with copies of the latest audited annual accounts where such accounts have been prepared, and of any person in whom effective control of the applicant resides—

(a) at the time of the application; and

(b) at the end of each of the three financial years preceding that time.

3. Where any of the documents mentioned in paragraph 1 or, where applicable, paragraph 2 above is not supplied, an explanation of why it is not supplied together with such financial information to the like effect as can reasonably be supplied.

4. A statement giving such further particulars (if any), whether by way of financial projections, sources of finance or otherwise, as will, in conjunction with such information and documents as is provided in accordance with paragraphs 1, 2, or 3 above, indicate whether the applicant would be likely to be able to finance the activities authorised by its licence if the application were granted.

Proposed business

5. An outline statement of the business proposals, for that business of the applicant to which the application relates, for the next five years including annual forecasts of costs, sales and revenues and project financing, stating the assumptions underlying the figures provided. (The statement of the first year’s forecasts of costs, sales and revenues and project financing to be broken down on a month by month basis.)

6. Details of any expected subsequent substantial capital outflows including major decommissioning costs.

7. Estimates of net annual cash flows for subsequent periods sufficient to demonstrate the financial security and feasibility of the project(s) to which the application relates.

Expertise of applicant

8. A statement giving such particulars of the applicant, and of any sub-contractors or other persons on whose expertise the applicant proposes to rely, as may indicate whether the applicant has or will acquire the necessary skills to undertake the activities in respect of which the application is made.

Interpretation

7. In this Schedule—

• “annual accounts” has the meaning given by section 262(1) of the 1985 Act and shall be construed in accordance with section 261(2) of that Act;

• “auditors' report” means a report prepared under section 235(1) of the 1985 Act;

• “company” means

  (i)

  a company within the meaning of section 735 of the 1985 Act; or

  (ii)

  a body corporate, incorporated in and having a principal place of business in Great Britain, other than a body corporate mentioned in section 718(2) of the 1985 Act;

• “group” has the meaning given by section 262 of the 1985 Act;

• “group accounts” means such accounts as are required to be prepared by section 227 of the 1985 Act, or, as the case may be, delivered under section 228(2)(e) of that Act, together with any accounts required to be delivered in accordance with section 243(2) of that Act;

• “parent undertaking” and “subsidiary undertaking” have the meanings given by section 258 of the 1985 Act; and

• “the 1985 Act” means the Companies Act 1985.

Regulation 6

SCHEDULE 3

PART I FURTHER INFORMATION AND DOCUMENTS TO ACCOMPANY AN APPLICATION IN RESPECT OF A GENERATION LICENCE

1. Provide a sufficient description adequately specifying( 5 ) the actual or proposed location of each generating station intended to be operated under the licence (if granted). Description of proposed location must be sufficient to make clear the nature and extent of the proposed development.

2. Provide a statement of—

(a) the number of generating stations to be operated;

(b) a description of how each of those stations will, in each case, be fuelled or driven;

(c) the date when any proposed generating stations are expected to be commissioned;

(d) the maximum power (MW) for each of the next five years expected to be available from each generating station at any one time and the aggregate power (MW) expected to be available from each generating station during any year (Exclude (in each case) such wattage as is expected to be consumed at the station);

(e) the expected life of each generating station;

(f) for each generating station for each of the next five years, the numbers of generating units and the capacity of each generating unit; and

(g) particulars of the person or persons to whom the applicant intends for each of the next five years to provide electricity and particulars of the distribution of that electricity, including details of the lines to be constructed.

3. A statement of the extent (if any) to which the applicant considers it necessary for powers under Schedule 3 (compulsory acquisition of land etc ) and under Schedule 4 (other powers etc) to the Act to be given through the licence for which he is applying.

PART II FURTHER INFORMATION AND DOCUMENTS TO ACCOMPANY AN APPLICATION IN RESPECT OF A TRANSMISSION LICENCE

1. Provide a sufficient description adequately specifying( 6 ) the actual or proposed locations of the electric lines and electrical plant constituting the intended transmission system, and the area to which the application relates.

2. An indication of the extent to which, and the locations in which, those lines are or will be placed underground.

3. An identification of the voltages of the electrical lines forming part of the intended transmission system.

4. Provide a statement of—

(a) particulars of the person or persons from whom, and the points at which, the applicant expects for the next five years to receive the electricity which he will transmit; particulars of the transmission of the electricity; particulars of the expected off-take points; and quantities,

(b) interconnections to other transmission systems,

(c) proposed metering arrangements,

(d) schedule of generating plant owned by the applicant including pumped storage, clutched gas turbine generators and synchronous compensators,

(e) forecast annual maximum demands for each of the next five years in his transmission system (GW) and energy (GWh) to be transmitted,

(f) summary large scale map, together with detailed maps providing information on areas where activities are concentrated as necessary,

Together with—

(g) a single line diagram of the transmission system should be provided. All transmission voltage levels (400 and 275 kV in England and Wales and 400, 275 and 132 kV in Scotland) should be shown on the diagram.

5. A description of the applicant’s proposed arrangements for compliance with the applicable requirements of standard conditions C7 (Charges for Use of System) C7B (Connection Charging Methodology) and C7D (Requirement to Offer Terms).

6. A description of the applicant’s proposed arrangements for compliance with the continuity of supply requirements in regulations made under section 29 of the Act.

PART III FURTHER INFORMATION AND DOCUMENTS TO ACCOMPANY AN APPLICATION IN RESPECT OF A DISTRIBUTION LICENCE( 7 )

1. Provide a sufficient description adequately specifying( 8 ) the actual or proposed location of the system of electric lines and electrical plant by means of which the applicant intends to enable a supply of electricity to be given, indicating which plant and lines are to be constructed and which are existing plant and lines, and further identifying any parts of that system which will not be owned by or otherwise in the possession or control of the applicant, and the area to which the application relates.

2. A statement of the extent (if any) to which the applicant considers it necessary for powers under Schedule 3 (compulsory acquisition of land etc. ) and under Schedule 4 (other powers etc.) to the Act to be given through the licence for which he is applying.

3. Provide a statement of—

(a) particulars of the person or persons from whom the applicant intends for each of the next five years to receive the electricity which he will distribute, particulars of the arrangements made for distribution of electricity; particulars of the expected off-take points; and quantities.

(b) forecast annual maximum demand for each of the next five years in his distribution system (MW) and energy (GWh) to be distributed,

(c) details of the voltage levels and types (AC or DC), and frequency of operation. Include details of expected circuit length per voltage level for each of the next five years;

(d) details of estimated connections per voltage level;

(d) details of any existing or proposed embedded generating station, including location, type, the maximum power (MW) for each of the next five years expected to be available from each generating station at any one time, and the aggregate power (MW) for each of the next five years expected to be available from each generating station during any year. Exclude (in each case) such wattage as is expected to be consumed on site;

Together with—

(f) detailed map or maps, to scale sufficient to show clearly the area to which the application relates. This should include the distribution system above 11kV, location of infeeds (Grid Supply Points), overhead lines, interconnectors, cable routes and associated substations. Showing which lines, cables and substations are to be constructed and which are already in existence.

4. A map drawn to an appropriate scale showing the actual or proposed configuration of the distribution system the applicant would operate if the application were granted, showing—

(i) all electric lines and electrical plant effecting connection to the system operated by any other authorised distributor; and

(ii) all points through which it is proposed that electricity would be conveyed to the applicant’s distribution system.

5. Such particulars as will indicate whether any distribution system through which the applicant would be authorised to convey electricity if the application were granted would be operated safely.

6. Particulars of the applicant’s proposed arrangements to secure the performance of any obligations in relation to supplies of electricity illegally taken imposed on him by paragraph 4 of Schedule 6 to the Act.

7. Particulars of the applicant’s proposed arrangements for compliance with the applicable requirements of standard conditions 4 (Basis of Charges for Use of System and Connection to System: Requirements for Transparency), 4B (Requirement to Offer Terms for Use of System and Connection), 5 (Distribution System Planning Standard and Quality of Service), 6 (Safety and Security of Supplies Enquiry Service), 7 (Provision of Information about Theft or Abstraction of Electricity, Damage and Meter Interference), 8 (Provisions Relating to the Connection of Metering Equipment), 9 (Distribution Code) and 19 (Code of Practice on Procedures with Respect to Site Access).

8. A description of the applicant’s proposed arrangements for compliance with the continuity of supply requirements in regulations made under section 29 of the Act.

Restriction of a distribution licence

9. If the application is for a restriction of a licence—

(a) an estimate of—

(i) the total number of premises to which the applicant distributes electricity at the time of the application and to which the applicant would cease to distribute if the application were acceded to (“relevant premises”);

(ii) the aggregate maximum demand (MW) which the applicant reasonably expects to be distributed to the relevant premises in the twelve months following the application; and

(iii) the number of premises to which the applicant would distribute electricity, and the aggregate maximum demand (MW) which would be distributed to those premises by him, in each of the three years following the coming into effect of the restriction if the application were acceded to; and

(b) unless there are, at the date of the application, no relevant consumers (within the meaning set out in sub-paragraph (c) below) in relation to the applicant, a description of the applicant’s proposed arrangements to ensure compliance with section 16 of the Act (ensuring the connection of all such relevant consumers is maintained).

(c) For the purposes of sub-paragraph (b), a person is a relevant consumer if—

(i) immediately before the restriction takes effect, he is connected to the distribution system of the holder of the licence; and

(ii) his premises are to be excluded from the licence by the restriction.

PART IV FURTHER INFORMATION AND DOCUMENTS TO ACCOMPANY AN APPLICATION IN RESPECT OF A SUPPLY LICENCE( 9 )

1. 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. (section 6(3) of the Act)

Please specify which of (a), (b) or (c) above is applicable. Provide a sufficient description adequately specifying( 10 ) the premises or a description of the premises and the location of the premises intended to be supplied, and, in the case of application that relates to (c) above, also the specified area. Also state whether the application relates to domestic premises.

2. For all applications for supply licences, or extensions of such licences, state whether the licence or extension is to authorise the supply of electricity to premises to which it is conveyed by a distributor, and if not give details of any exemption under section 5 of the Act under which the electricity is or will be conveyed to the premises.

3. Provide a statement of—

(a) approximate number and expected maximum demand of customers for each of next five years;

(b) forecast annual maximum demand (MW) and energy (GWh) to be supplied for each of the next five years; and

(c) where the application is for an extension to a supply licence, the annual quantity of electricity supplied by the applicant under the existing licence(s).

Supply to domestic premises

4. If the application relates to the supply of electricity to domestic premises—

(a) particulars, where appropriate, of the bond, other instrument or arrangements proposed to be taken out or made by the applicant in accordance with standard condition 33 (Last Resort Supply: Security for Payments);

(b) a draft copy of the scheme proposed to be made by the applicant under paragraph 3 of Schedule 6 to the Act (Deemed contracts in certain cases);

(c) particulars of the applicant’s proposed arrangements for compliance with the applicable requirements of standard conditions 7 (Duty to Offer Terms for Meter Provision), 16 (Procedures for the Detection and Prevention of Theft or Abstraction of Electricity, Damage and Meter Interference), 17 (Reading and Inspection of Meters), 24 (Code of Practice on Procedures with Respect to Site Access), 25 (Efficient Use of Electricity), 26 (Record of and Report on Performance), 27 (Preparation, Review of and Compliance with Customer Service Codes), 32 (Duty to Supply Domestic Customers), 35 (Code of Practice on Payment of Bills and Guidance for Dealing with Customers in Difficulty), 37 (Provision of Services for Persons who are of Personable Age or Disabled or Chronically Sick), 38 (Provision of Services for Persons who are Blind or Deaf) and 43 (Contractual Terms—Methods of Payment); and

(d) a description of the applicant’s proposed arrangements for compliance with the continuity of supply requirements in regulations made under section 29 of the Act.

Supply of electricity to premises which are not domestic premises

5. If the application relates to the supply of electricity to any premises which are not domestic premises–

(a) a draft copy of the scheme proposed to be made by the applicant under paragraph 3 of Schedule 6 to the Act (Deemed contracts in certain cases);

(b) particulars of the applicant’s proposed arrangements for compliance with the applicable requirements of standard conditions 7 (Duty to Offer Terms for Meter Provision) and 16 (Procedures for the Detection and Prevention of Theft or Abstraction of Electricity, Damage and Meter Interference); and

(c) a description of the applicant’s proposed arrangements for compliance with the continuity of supply requirements in regulations made under section 29 of the Act.

Restriction of a supply licence

6. If the application is for a restriction of a licence—

(a) an estimate of—

(i) the total number of premises to which the applicant supplies electricity at the time of the application and which the applicant would cease to supply if the application were acceded to (“relevant premises”);

(ii) the aggregate maximum demand (MW) which the applicant reasonably expects to be supplied to the relevant premises in the twelve months following the application; and

(iii) the number of premises to which the applicant would supply electricity, and the aggregate maximum demand (MW) which would be supplied to those premises by him, in each of the three years following the coming into effect of the restriction if the application were acceded to; and

(b) unless there are, at the date of the application, no relevant consumers (within the meaning set out in sub-paragraph (c) below) in relation to the applicant, a description of the applicant’s proposed arrangements under standard condition 22A (Restriction or Revocation: Securing Continuity of Supply) for—

(i) ensuring continuity of supply for all such relevant consumers: and

(ii) in the case of each such consumer who is supplied with electricity in pursuance of a contract (which does not include any contract which, by virtue of paragraph 3 of Schedule 6 to the Act, is deemed to have been made), securing such continuity on the same terms as nearly as may be as the terms of the contract.

(c) For the purposes of sub-paragraph (b), a person is a relevant consumer if—

(i) immediately before the restriction takes effect, he is being supplied with electricity by the holder of the licence; and

(ii) his premises are to be excluded from the licence by the restriction.

Regulation 7

SCHEDULE 4 APPLICATION FEES