Energy Act 1983

PART I — Electricity

Private generation and supply

Removal of restrictions on supply etc.

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Section 23 of the Electric Lighting Act 1909 (which prohibits persons other than Electricity Boards from commencing to supply or distribute electricity) and section 11 of the Electricity (Supply) Act 1919 (which restricts the establishment and extension of generating stations) shall cease to have effect.

Notice of construction or extension of generating stations

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• (1) Subject to subsection (5) below, any person other than an Electricity Board or a local authority who proposes—

• (a) to construct or extend an electricity generating station having plant with a rating exceeding 10 megawatts, or

• (b) to extend an existing electricity generating station in such a way that it will have plant with such a rating,

shall give written notice of his proposal to the Area Board for the area in which the station is or will be or, if it is or will be within the district of a Scottish Board, to that Board.

• (2) The Secretary of State may make regulations as to the time when a notice under this section is to be given and the particulars which it is to contain.

• (3) A person who is required to give a notice under this section shall be guilty of an offence if the work of construction or extension begins without the required notice having been given.

• (4) A person guilty of an offence under this section shall be liable—

• (a) on conviction on indictment, to a fine, or

• (b) on summary conviction, to a fine not exceeding the statutory maximum.

• (5) This section shall not apply in a case in which section 35 of the Electricity (Scotland) Act 1979 applies.

• (6) References in this section to extending a generating station are references to increasing the rating of its plant.

Nuclear-powered generating stations

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• (1) Subject to subsection (5) below, no person shall construct, extend or become the operator of a nuclear-powered generating station without the consent of the Secretary of State.

• (2) A consent given for the purposes of this section may be subject to such conditions as the Secretary of State thinks fit.

• (3) A person who contravenes subsection (1) above, or any condition of a consent given for the purposes of this section, shall be guilty of an offence.

• (4) A person guilty of an offence under this section shall be liable—

• (a) on conviction on indictment, to a fine, or

• (b) on summary conviction, to a fine not exceeding the statutory maximum.

• (5) This section shall not apply to the construction, extension or operation of a generating station by an Electricity Board.

• (6) In this section " nuclear-powered generating station " means an electricity generating station the operation of which requires a licence under section 1 of the Nuclear Installations Act 1965 ; and references to extending a generating station are references to increasing the rating of its plant.

Hydro-electric generating stations in Scotland

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• (1) In section 35(1) of the Electricity (Scotland) Act 1979 (which relates to the control of private hydro-electric generating stations)—

• (a) for the word " establish " there shall be substituted the words " construct or extend " ;

• (b) the word " new " shall cease to have effect;

• (c) the word " private ", in both places where it occurs, shall cease to have effect; and

• (d) for the words " 50 kilowatts ", in both places where they occur, there shall be substituted the words " 1 megawatt " .

• (2) Section 35(2) of that Act shall cease to have effect.

Private generators and Electricity Boards

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• (1) In this section " private generator or supplier " means a person other than an Electricity Board or local authority who—

• (a) generates electricity, or

• (b) supplies electricity generated otherwise than by an Electricity Board or local authority.

• (2) Where a private generator or supplier requests an Electricity Board—

• (a) to give and continue to give a supply of electricity to premises where he generates electricity or from which he supplies electricity to others, or

• (b) to purchase electricity generated by him, or

• (c) to permit him to use the Board's transmission and distribution system for the purpose of giving a supply of electricity to any premises,

the Board shall offer to comply with the request unless on technical grounds it would not be reasonably practicable to do so.

• (3) Subject to sections 6 to 8 below, an offer under this section may include such reasonable terms and may be made subject to such reasonable conditions as the Board may determine, including—

• (a) terms requiring security to be given for the payment of any sums that may become payable to the Board, and

• (b) the condition that any necessary planning or other consents are obtained (including, in the case of an offer by the Central Electricity Generating Board, the consent of the Secretary of State under section 2(6) of the Electricity Act 1957).

• (4) Every offer under this section shall include such reasonable terms and conditions as the Board may consider necessary to secure that the control by Electricity Boards of the operation of the electricity supply system is not impaired.

• (5) If, before a request under this section can be complied with, it is necessary for any electric lines or other electrical plant to be provided, or for any other works to be carried out, the terms of an offer under this section—

• (a) shall include an undertaking by the Board to provide the lines or other plant or carry out the works, and

• (b) may require the person making the request to make payments to the Board in respect of any expenditure incurred by the Board in carrying out the undertaking.

• (6) A request under this section shall contain such particulars, and shall be in such form, as may be prescribed by regulations made by the Secretary of State ; and such regulations may make provision for the payment to the Board by the person making the request of fees to meet the Board's administrative expenses in dealing with the request.

Charges for supplies by Electricity Boards

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• (1) Subject to subsection (2) below, the price to be paid for electricity supplied by an Electricity Board in compliance with requests under section 5 above shall be in accordance with tariffs fixed under section 37 of the Electricity Act 1947 or section 22 of the Electricity (Scotland) Act 1979.

• (2) Where, owing to special circumstances, the tariffs fixed under section 37 of the Electricity Act 1947 or section 22 of the Electricity (Scotland) Act 1979 are not appropriate to a supply requested under section 5 above, the terms of the Board's offer under section 5 shall specify the price proposed by the Board and any arrangements proposed for its revision.

Charges for purchases by Electricity Boards

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• (1) Each Electricity Board other than the Central Electricity Generating Board shall as soon as practicable after the commencement of this section fix tariffs of prices that will be paid by the Board for electricity purchased by it in compliance with requests under section 5 above.

• (2) In the case of any purchase in respect of which—

• (a) there is no tariff in force under this section which is applicable, or

• (b) the tariff applicable is not appropriate owing to special circumstances, the terms of the offer made by the Board under section 5 above shall specify the price proposed by the Board and any arrangements proposed for its revision.

• (3) The principles on which tariffs are fixed and prices proposed by an Electricity Board in accordance with this section shall include the principle that a purchase by the Board in compliance with a request under section 5 above should be on terms which—

• (a) will not increase the prices payable by customers of the Board for electricity supplied to them by the Board, and

• (b) will reflect the costs that would have been incurred by the Board but for the purchase.

• (4) The terms of an offer to purchase electricity in compliance with a request under section 5 above may include a requirement that the vendor shall make to the Board from time to time such reasonable payments as the Board may determine in respect of the costs of maintenance, operation and depreciation of the assets employed, and of the administrative expenses incurred, by the Board in complying with the request.

• (5) The amount of the payments to be made to the Board in accordance with subsection (4) above may include an amount designed to give the Board a return on the assets there referred to (taking into account any payment of the kind referred to in section 5(5) above) which is not greater than any return tot the Board expects to receive on comparable assets.

Charges for use of transmission and distribution systems

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• (1) Each Electricity Board shall as soon as practicable after the commencement of this section prepare tariffs of charges that will be made by the Board to persons permitted to use the Board's transmission and distribution system in pursuance of requests under section 5 above.

• (2) In any case where—

• (a) there is no tariff in force under this section which is applicable to the use requested, or

• (b) the tariff applicable is not appropriate owing to special circumstances,

the terms of the offer made by the Board under section 5 above shall specify the charge proposed by the Board and any arrangements proposed for its revision.

• (3) The principles on which tariffs are fixed and charges proposed by an Electricity Board in accordance with this section shall include the principle that charges should be no more than sufficient to provide a return on the relevant assets (taking into account any payments of the kind referred to in section 5(5) above) comparable to any return that the Board expects to receive on comparable assets; and for this purpose " relevant assets " means the assets employed by the Board in complying with requests for permission to use the Board's transmission and distribution system.

Disputes as to offers under section 5 etc.

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• (1) Any dispute as to—

• (a) whether it would be reasonably practicable for an Electricity Board to comply with a request made to it under section 5 above, or

• (b) whether a tariff which is applicable in the case of any supply, purchase or use requested under section 5 above is appropriate to that case, or

• (c) the price or charge proposed by an Electricity Board in a case in which no tariff is applicable and appropriate, or

• (d) the reasonableness of any other term or condition of an offer made by the Board under section 5 above, or

• (e) the reasonableness of any payment demanded by an Electricity Board in accordance with section 7(4) above,

may be referred to the Secretary of State for determination by him or, if he thinks fit, by an arbitrator (or in Scotland an arbiter) appointed by him.

• (2) The Secretary of State may make regulations as to the conduct of proceedings for the determination of disputes under this section; and the Arbitration Act 1950 and the Arbitration Act 1979 shall, in their application to disputes determined by an arbitrator appointed under this section, have effect subject to the provisions of such regulations.

• (3) Regulations under this section relating to the determination of disputes by the Secretary of State may include provision—

• (a) enabling the Secretary of State to require a party to the dispute to pay a sum determined by the Secretary of State towards any administrative expenses incurred by him in connection with the determination of the dispute, and

• (b) as to awards of costs or expenses as between the parties to the dispute.

• (4) Any sums paid to the Secretary of State by virtue of this section shall be paid into the Consolidated Fund.

• (5) Subsections (6) to (8) below shall have effect in relation to Scotland, but subject to the provisions of regulations made by the Secretary of State under this section.

• (6) Any arbiter appointed by the Secretary of State shall have the like powers for securing the attendance of witnesses and the production of documents and with regard to the examination of witnesses on oath and the awarding of expenses as if the arbitration were on a submission.

• (7) The arbiter may, and if so directed by the Court of Session shall, state a case for the opinion of that Court on any question of law arising in the proceedings.

• (8) Any award of the Secretary of State or of an arbiter under this section may be recorded in the Books of Council and Session for execution and may be enforced accordingly.

Further provisions as to charges under sections 7 and 8

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• (1) The tariffs fixed under section 7 or 8 above shall be so framed as to show the methods by which and the principles on which the charges are to be made as well as their amount, and shall be published in such manner as in the opinion of the Electricity Board concerned will secure adequate publicity.

• (2) Tariffs fixed under section 7 or 8 above by an Electricity Board other than a Scottish Board shall be fixed after consultation with the Electricity Council, which shall consult the Secretary of State as to the methods by which and the principles on which charges are to be made.

• (3) Tariffs fixed under section 7 or 8 above by a Scottish Board shall be fixed after consultation with the Secretary of State as to the methods by which and the principles on which charges are to be made.

• (4) The tariffs required by sections 7 and 8 above may be altered or replaced from time to time, and need not be exhaustive.

• (5) Before proposing a price in accordance with section 7(2) above or a charge in accordance with section 8(2) above an Electricity Board other than a Scottish Board shall consult the Electricity Council.

• (6) An Electricity Board, in fixing tariffs and proposing prices or charges in accordance with section 7 or 8 above, shall not show undue preference to any person or class of persons and shall not exercise any undue discrimination against any person or class of persons.

Arrangements between Electricity Boards

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• (1) Where a request is made to an Electricity Board under section 5 above and that Board (" the first Board ") considers that the request could more appropriately be met by another Electricity Board (" the second Board "), the first Board may propose to the second Board that the second Board meet the request.

• (2) If the second Board does not agree to a proposal under subsection (1) above, the first Board may refer the dispute to the Secretary of State for determination by him.

• (3) If—

• (a) the second Board agrees to a proposal under subsection (1) above; or

• (b) the Secretary of State, on a reference under subsection (2) above, determines that the request is to be met by the second Board,

the request shall be treated as if it had been made to the second Board.

Meters to be of approved pattern

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• (1) Subject to subsection (5) below, no person shall use a meter for measuring the amount of electrical energy supplied by him to another person, or the electrical quantity contained in the supply, unless it is of an approved pattern.

• (2) A meter is of an approved pattern for the purposes of this section if it is of a pattern for the time being approved by the Secretary of State or by a person who, for the purpose of implementing any Community obligation, is responsible for giving pattern approval in a member State other than the United Kingdom.

• (3) A person who uses a meter in contravention of this section shall be guilty of an offence unless he believes, on reasonable grounds, that the meter is of an approved pattern.

• (4) A person guilty of an offence under this section shall be liable on summary conviction to a fine not exceeding level 2 on the standard scale.

• (5) This section shall not apply—

• (a) in relation to a supply by an Electricity Board, or

• (b) in relation to a meter installed before (and not moved since) the commencement of this section.

Duty of Boards to supply

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In section 27 of the Schedule to the Electric Lighting (Clauses) Act 1899 as incorporated with the Electricity Act 1947 (duty to supply premises within fifty yards of a distributing main) after subsection (1) there shall be inserted—

(1A) Subsection (1) of this section shall not apply in relation to premises to which a supply of energy is already given, directly from electric lines belonging to the Undertakers, by a private supplier.

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Inspection and testing of lines etc.

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• (1) In section 24 of the Electric Lighting Act 1882 (which empowers Electricity Boards to enter premises to which electricity is supplied by them) for the words " by the undertakers " in the second place where they occur there shall be substituted the words " (whether by the undertakers or by any other person) directly through electric lines belonging to the undertakers " .

• (2) In section 36(1)(a) of the Schedule to the Electric Lighting (Clauses) Act 1899 (which provides for inspectors appointed; under that Schedule to inspect and test the lines and works of Electricity Boards and the supply of energy given by them), for the words " Undertakers' electric lines and works " there shall be substituted the words " electric lines and works of persons who supply energy " .

• (3) Sections 39 and 42 to 48 of that Schedule (which make further provision as to testing and inspection, including provision giving inspectors the right of access to the premises of suppliers for the purpose of testing electric lines and instruments and provision penalising suppliers who fail to comply with the Schedule's requirements) shall apply in relation to suppliers of electricity other than Electricity Boards as they apply in relation to Area Boards and Scottish Boards.

• (4) References in this section to the Schedule to the Electric Lighting (Clauses) Act 1899 are references to that Schedule as incorporated with the Electricity Act 1947.

Miscellaneous and general

Amendments relating to meters

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The enactments mentioned in Schedule 1 to this Act shall have effect subject to the amendments specified in that Schedule.