Electricity Act 1989

• (b) one shall be designated as the transmission company.

• (2) Before such date as the Secretary of State may direct, the Electricity Council shall make a scheme—

• (a) for the transfer to a company nominated for the purposes of this subsection by the Secretary of State; or

• (b) for the division between two or more companies so nominated,

of all its property, rights and liabilities (other than excepted rights and liabilities).

• (3) Subject to subsection (4) below, the Secretary of State may, after consulting the transferor, by order nominate for the pruposes of subsection (1) or (2) above any company formed and registered under the Companies Act 1985.

• (4) On the transfer date each company so nominated must be—

• (a) a company limited by shares which is wholly owned by the Crown; or

• (b) in the case of company nominated for the purposes of subsection (2) above, a company limited by guarantee of which no person other than the Treasury or the Secretary of State, or a nominee of the Treasury or the Secretary of State, is a member.

• (5) Subject to provisions of section 70 below, on the transfer date—

• (a) all property, rights and liabilities to which immediately before that date the Generating Board was entitled or subject; and

• (b) all property, rights and liabilities to which immediately before that date the Electricity Council was entitled or subject (other than excepted rights and liabilities),

shall become by virtue of this subsection property, rights and liabilities of the company to which they are allocated by the scheme under subsection (1) or, as the case may be, subsection (2) above.

• (6) In this section “excepted rights and liabilities” means—

• (a) any rights and liablilities with respect to corporation tax (including rights to receive any sums by way of repayment supplement and liabilities to pay any sums by way of interest or penalty);

• (b) any rights and liabilities arising under an agreement which relates to any such rights and liabilities as are mentioned in paragraph (a) above and is specified or is of a description specified by the scheme made under subsection (2) above; and

• (c) any rights and liabilities transferred by section 91 below.

Transfer of property etc. of Scottish Boards.

67

• (1) Before such date as the Secretary of State may direct, each of the Scottish Boards shall, in consultation with the other, make a scheme for the transfer of all their property, rights and liabilities (other than excepted rights and liabilities) to one or more of three or more companies nominated by the Secretary of State for the purposes of this subsection; and of the companies so nominated—

• (a) two shall be designated as the Scottish electricity companies; and

• (b) one shall be designated as the Scottish nuclear company.

• (2) Subject to subsection (3) below, the Secretary of State may, after consultation with the Scottish Boards, by order nominate for the purposes of subsection (1) above any company formed and registered in Scotland under the Companies Act 1985.

• (3) On such day as the Secretary of State may by order appoint for the purposes of subsection (4) below (in this Part referred to, in relation to any transfer effected by that subsection, as “the transfer date”) each company so nominated must be a company limited by shares which is wholly owned by the Crown.

• (4) Subject to the provisions of section 70 below, on the transfer date all property, rights and liabilities (other than excepted rights and liabilities) to which immediately before that date the Scottish Boards were entitled or subject shall become by virtue of this subsection property, rights and liabilities of the company to which they are allocated by a scheme under subsection (1) above.

• (5) In this section “excepted rights and liabilities” means any rights and liabilities transferred by section 91 below.

Transfer schemes under sections 66 and 67.

68

• (1) This section applies to any scheme under subsection (1) or (2) of section 66 or subsection (1) of section 67 above (in this Part referred to as a “transfer scheme”); and in this section and section 69 below “the relevant subsection”, in relation to such a scheme, means that subsection.

• (2) A transfer scheme may—

• (a) define the property, rights and liabilities to be allocated to a particular company nominated for the purposes of the relevant subsection—

• (i) by specifying or describing the property, rights and liabilities in question;

• (ii) by referring to all the property, rights and liabilities comprised in a specified part of the transferor’s undertaking; or

• (iii) partly in the one way and partly in the other;

• (b) provide that any rights or liabilities specified or described in the scheme shall be enforceable either by or against either or any, or by or against both or all, of two or more companies nominated for the purposes of the relevant subsection;

• (c) impose on any company nominated for the purposes of the relevant subsection an obligation to enter into such written agreements with, or execute such other instruments in favour of, any other company so nominated as may be specified in the scheme; and

• (d) make such supplemental, incidental and consequential provision as the transferor considers appropriate (including provision specifying the order in which any transfers or transactions are to be regarded as taking effect).

• (3) An obligation imposed by a provision included in a transfer scheme by virtue of subsection (2)(c) above shall be enforceable by civil proceedings by the other company for an injunction or for interdict or for any other appropriate relief.

• (4) A transaction of any description which is effected in pursuance of such a provision as is mentioned in subsection (3) above—

• (a) shall have effect subject to the provisions of any enactment which provides for transactions of that description to be registered in any statutory register; but

• (b) subject to that, shall be binding on all other persons, notwithstanding that it would, apart from this subsection, have required the consent or concurrence of any other person.

• (5) Where a lease of any land is granted in pursuance of such a provision as is mentioned in subsection (3) above, any right of pre-emption or other like right affecting that land—

• (a) shall not become exercisable by reason of the grant of the lease; but

• (b) shall have effect as if the lessee were the same person in law as the lessor.

Functions of Secretary of State in relation to transfer schemes.

69

• (1) A transfer scheme shall not take effect unless it is approved by the Secretary of State; and the Secretary of State may modify such a scheme before approving it.

• (2) If, in relation to a transfer scheme—

• (a) the transferor fails, before the date specified in the Secretary of State’s direction under the relevant subsection, to submit the scheme for the approval of the Secretary of State; or

• (b) the Secretary of State decides not to approve the scheme that has been submitted to him by the transferor (either with or without modifications),

the Secretary of State may himself make the scheme.

• (3) It shall be the duty of the transferor to provide the Secretary of State with all such information and other assistance as he may require for the purposes of or in connection with the exercise, in relation to a transfer scheme, of any power conferred on him by subsection (1) or (2) above.

• (4) The Secretary of State shall not exercise any power conferred on him by subsection (1) or (2) above except after consultation with the transferor and—

• (a) in the case of a scheme under section 66(1) above, the Area Boards; and

• (b) in the case of a scheme under section 67(1) above, the other Scottish Board.

Supplementary provisions as to transfers under sections 66 and 67.

70

The provisions of Schedule 10 to this Act shall apply, to the extent there mentioned, to any transfer which is effected by subsection (5) of section 66 or subsection (4) of section 67 above; and those subsections shall have effect subject to the provisions of that Schedule.

Ownership of successor companies

Initial Government holding in the companies.

71

• (1) As a consequence of the vesting in a company nominated for the purposes of section 65(1), 66(1) or (2) or 67(1) above (in this Part referred to as a “successor company”) of any property, rights and liabilities, the company shall issue such securities of the company as the Secretary of State may from time to time direct—

• (a) to the Treasury or the Secretary of State; or

• (b) to any person entitled to require the issue of the securities following their initial allotment to the Treasury or the Secretary of State.

• (2) The Secretary of State shall not give a direction under subsection (1) above in relation to a successor company at a time when the company has ceased to be wholly owned by the Crown.

• (3) Securities required to be issued in pursuance of this section shall be issued or allotted at such time or times and on such terms as the Secretary of State may direct.

• (4) Shares in a company which are issued in pursuance of this section—

• (a) shall be of such nominal value as the Secretary of State may direct; and

• (b) shall be issued as fully paid and treated for the purposes of the Companies Act 2006 as if they had been paid up by virtue of the payment to the company of their nominal value in cash.

• (5) The Secretary of State shall not exercise any power conferred on him by this section, or dispose of any securities issued or of any rights to securities initially allotted to him in pursuance of this section, without the consent of the Treasury.

• (6) Any dividends or other sums received by the Treasury or the Secretary of State in right of or on the disposal of any securities or rights acquired by virtue of this section shall be paid into the Consolidated Fund.

Government investment in securities of the companies.

72

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Exercise of functions through nominees.

73

• (1) The Treasury or, with the consent of the Treasury, the Secretary of State may, for the purposes of section 71 or 72 above or section 80 below, appoint any person to act as the nominee, or one of the nominees, of the Treasury or the Secretary of State; and—

• (a) securities of a successor company may be issued under section 71 above or section 80 below to any nominee of the Treasury or the Secretary of State appointed for the purposes of that section or to any person entitled to require the issue of the securities following their initial allotment to any such nominee; and

• (b) any such nominee appointed for the purposes of section 72 above may acquire securities or rights under that section,

in accordance with directions given from time to time by the Treasury or, with the consent of the Treasury, by the Secretary of State.

• (2) Any person holding any securities or rights as a nominee of the Treasury or the Secretary of State by virtue of subsection (1) above shall hold and deal with them (or any of them) on such terms and in such manner as the Treasury or, with the consent of the Treasury, the Secretary of State may direct.

Target investment limit for Government shareholding.

74

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Finances of successor companies

Statutory reserves.

75

• (1) If the Secretary of State with the approval of the Treasury so directs at any time before a successor company ceases to be wholly owned by the Crown, such sum as may be specified in the direction but not exceeding—

• (a) in the case of a supply company, the accumulated realised profits of the transferor;

• (b) in the case of a Scottish electricity company, the aggregate of such proportion of the accumulated realised profits of the transferor as is determined by or under the transfer scheme and any accumulated realised profits arising (after compliance with any direction to the company under subsection (2) of section 80 below) by virtue of the extinguishment of liabilities of the company by an order under subsection (1) of that section;

• (c) in any other case, such proportion of the accumulated realised profits of the transferor as is determined by or under the transfer scheme,

shall be carried by the company to a reserve (in this section referred to as “the statutory reserve”).

• (2) A company having a statutory reserve shall not apply it except in paying up unissued shares of the company to be allotted to members of the company as fully paid bonus shares.

• (3) Notwithstanding subsection (2) above, the statutory reserve of a company shall not count as an undistributable reserve of the company for the purposes of section 831(4)(d) of the Companies Act 2006; but for the purpose of determining under that section whether a company with a statutory reserve may make a distribution at any time any amount for the time being standing to the credit of the reserve shall be treated for the purposes of section 831(4)(c) of that Act as if it were unrealised profits of the company.

Statutory accounts.

76

• (1) The following provisions of this section shall have effect for the purposes of any statutory accounts of a successor company, that is to say, any accounts prepared by such a company for the purpose of any provision of the Companies Act 1985 (including group accounts).

• (2) The vesting in the company effected by virtue of this Part shall be taken to have been effected immediately after the end of the last complete accounting year of the transferor to end before the transfer date and—

• (a) in the case of a supply company, to have been a vesting of all the property, rights and liabilities to which the transferor was entitled or subject immediately before the end of the year;

• (b) in any other case, to have been a vesting of such of the property, rights and liabilities to which the transferor was so entitled or subject as are determined by or under the transfer scheme.

• (3) The value of any asset and the amount of any liability which is taken by virtue of subsection (2) above to have been vested in the company shall be taken to have been—

• (a) in the case of a supply company, the value or amount assigned to the asset or liability for the purposes of the corresponding statement of accounts prepared by the transferor in respect of the last complete accounting year of the transferor to end before the transfer date:

• (b) in any other case, the value or amount so assigned or, if the asset or liability is part only of an asset or liability to which a value or amount is so assigned, so much of that value or amount as may be determined by or under the transfer scheme.

• (4) The amount to be included in respect of any item shall be determined as if—

• (a) in the case of a supply company, anything done by the transferor (whether by way of acquiring, revaluing or disposing of any asset or incurring, revaluing or discharging any liability, or by carrying any amount to any provision or reserve, or otherwise);

• (b) in any other case, so much of anything so done as may be determined by or under the transfer scheme,

had been done by the company.

• (5) Without prejudice to the generality of the preceding provisions, the amount to be included from time to time in any reserves of the company as representing the company’s accumulated realised profits shall be determined as if—

• (a) in the case of a supply company, any profits realised and retained by the transferor;

• (b) in any other case, such proportion of any such profits as is determined by or under the transfer scheme,

had been realised and retained by the company.

• (6) In this section “complete accounting year,” in relation to the transferor, means an accounting year of the transferor ending on 31st March.

Temporary restrictions on borrowings etc.

77

• (1) If articles of association of a successor company confer on the Secretary of State powers exercisable with the consent of the Treasury for, or in connection with, restricting the sums of money which may be borrowed or raised by the group during any period, those powers shall be exercisable in the national interest notwithstanding any rule of law and the provisions of any enactment.

• (2) For the purposes of this section an alteration of the articles of association of a successor company shall be disregarded if the alteration—

• (a) has the effect of conferring or extending any such power as is mentioned in subsection (1) above; and

• (b) is made at a time when that company has ceased to be wholly owned by the Crown.

• (3) In this section—

• “group”, in relation to a company, means that company and all of its subsidiaries taken together;

• “subsidiary” has the meaning given by section 1159 of the Companies Act 2006.

Government lending to the companies.

78

• (1) Subject to section 81 below, the Secretary of State may, with the approval of the Treasury, make loans of such amounts as he thinks fit to any successor company which is for the time being wholly owned by the Crown.

• (2) Subject to section 80 below, any loans which the Secretary of State makes under this section shall be repaid to him at such times and by such methods, and interest thereon shall be paid to him at such rates and at such times, as he may, with the approval of the Treasury, from time to time direct.

• (3) The Treasury may issue out of the National Loans Fund to the Secretary of State such sums as are required by him for making loans under this section.

• (4) Any sums received under subsection (2) above by the Secretary of State shall be paid into the National Loans Fund.

• (5) It shall be the duty of the Secretary of State as respects each financial year—

• (a) to prepare, in such form as the Treasury may direct, an account of sums issued to him in pursuance of subsection (3) above and of sums received by him under subsection (2) above and of the disposal by him of the sums so issued or received; and

• (b) to send the account to the Comptroller and Auditor General not later than the end of the month of August in the following financial year;

and the Comptroller and Auditor General shall examine, certify and report on the account and shall lay copies of it and of his report before each House of Parliament.

Treasury guarentees for loans made to the companies.

79

• (1) Subject to section 81 below, the Treasury may guarantee, in such manner and on such terms as they may think fit, the repayment of the principal of, the payment of interest on, and the discharge of any other financial obligation in connection with, any sums which are borrowed from a person other than the Secretary of State by any successor company which is for the time being wholly owned by the Crown.

• (2) Immediately after a guarantee is given under this section, the Treasury shall lay a statement of the guarantee before each House of Parliament; and immediately after any sum is issued for fulfilling a guarantee so given, the Treasury shall so lay a statement relating to that sum.

• (3) Any sums required by the Treasury for fulfilling a guarantee under this section shall be charged on and issued out of the Consolidated Fund.

• (4) If any sums are issued in fulfilment of a guarantee given under this section the company whose obligations are so fulfilled shall make to the Treasury, at such times and in such manner as the Treasury may from time to time direct—

• (a) payments of such amounts as the Treasury may so direct in or towards repayment of the sums so issued; and

• (b) payments of interest on what is outstanding for the time being in respect of sums so issued at such rate as the Treasury may so direct.

• (5) Any sums received under subsection (4) above by the Treasury shall be paid into the Consolidated Fund.

Conversion of certain loans etc. to the Scottish companies.

80

• (1) The Secretary of State may by order extinguish all or any of the liabilities of a successor company in Scotland in respect of the principal of such relevant loans as may be specified in the order; and the assets of the National Loans Fund shall accordingly be reduced by amounts corresponding to any liabilities so extinguished.

• (2) Where the Secretary of State has made an order under subsection (1) above and he considers it appropriate to do so, he may from time to time give a direction under this subsection to the company whose liabilities are extinguished by the order, or to a company or companies wholly owning the company whose liabilities are so extinguished; and a company to which such a direction is given shall, as a consequence of the making of the order, issue such securities of the company as may be specified or described in the direction—

• (a) to the Treasury or the Secretary of State;

• (b) to any person entitled to require the issue of the securities following their initial allotment to the Treasury or the Secretary of State; or

• (c) if it is the company whose liabilities are extinguished by the order, to a company or companies wholly owning that company.

• (3) For the purposes of any statutory accounts of a company to whom securities are issued by virtue of subsection (2)(c) above, the value at the time of its issue of any such security shall be taken—

• (a) in the case of a share, to have been equal to its nominal value; and

• (b) in the case of debenture, to have equal to the principal sum payable under the debenture,

and such nominal value or principal sum shall be taken in those accounts to be accumulated realised profits.

• (4) In subsection (3) above “statutory accounts of a company” means any accounts prepared by the company for the purpose of any provision of the Companies Act 2006 (including group accounts).

• (5) The Secretary of State shall not—

• (a) make an order under subsection (1) above extinguishing the liability of any company; or

• (b) give a direction under subsection (2) above for the issue of securities,

except at a time when the company whose liability is extinguished by the order or, as the case may be, the company which is directed to issue securities is wholly owned by the Crown; and he shall not give a direction under paragraph (c) of the said subsection (2) except at a time when the company or companies to whom the securities are to be issued is, or are, so owned.

• (6) Except as may be agreed between the Secretary of State and a company which is directed to issue debentures in pursuance of this section—

• (a) the aggregate of the principal sums payable under the debentures to which the direction relates shall be equal to the aggregate of the sums the liability to repay which is extinguished by the order; and

• (b) the terms as to the payment of the principal sums payable on the debentures to which the direction relates, and as to the payment of interest thereon, shall be the same as the corresponding terms of the loans specified in the order.

• (7) For the purposes of subsection (6) above any express or implied terms of a loan shall be disregarded in so far as they relate to the early discharge of liabilities to make repayments of principal and payments of interest.

• (8) Subsections (3) to (6) of section 71 above shall apply for the purposes of this section as they apply for the purposes of that section.

• (9) In this section “relevent loan”, in relation to a successor company in Scotland, means—

• (a) any loan made, or deemed to have been made, by the Secretary of State or from the National Loans Fund the liability to repay which vests in that company by virtue of section 67(4) above;

• (b) any loan made to that company by the Secretary of State under section 78 above; and

• (c) any sums payable under debentures issued as a consequence of the making of an order under this section.

• (10) In this section and section 81 below “successor company in Scotland” means a company nominated for the purposes of section 67(1) above.

Financial limits on borrowing etc.

81

• (1) The aggregate of any amounts outstanding by way of principal in respect of—

• (a) loans made by the Secretary of State under section 78 above to successor companies in England and Wales; and

• (b) sums issued under section 79 above in fulfilment of guarantees given in respect of loans made to such companies,

shall not exceed £2,000 million.

• (2) The aggregate of any amounts outstanding by way of principal in respect of—

• (a) relevant loans within the meaning of section 80 above; and

• (b) sums issued under section 79 above in fulfilment of guarantees given in respect of loans made to successor companies in Scotland,

shall not exceed £3,000 million.

• (3) In this section “successor company in England and Wales” means a company nominated for the purposes of section 65(1) or 66(1) or (2) above.

Provisions with respect to floatation

Responsibility for composite listing particulars.

82

• (1) Where—

• (a) the same document contains listing particulars for securities of two or more successor Companies; and

• (b) any person’s responsibility for any information included in the document is stated in the document to be confined to its inclusion as part of the listing particulars for securities of any one of those companies,

that person shall not be treated as responsible for that information in so far as it is stated in the document to form part of the listing particulars for securities of any other of those companies.

• (2) In this section—

• “the 1986 Act” means the Financial Services Act 1986;

• “listing particulars” means any listing particulars or supplementary listing particulars within the meaning of the 1986 Act;

• “responsible” means responsible for the purposes of Part IV of the 1986 Act and “responsibility” shall be construed accordingly.

Application of Trustee Investments Act 1961 in relation to investment in operating companies.

83

• (1) Subsection (2) below shall have effect for the purpose of applying paragraph 3(b) of Part IV of Schedule I to the Trustee Investments Act 1961 (which provides that shares and debentures of a company shall not count as wider–range and narrower–range investments respectively within the meaning of that Act unless the company has paid dividends in each of the five years immediately preceding that in which the investment is made) in relation to investment in shares or debentures of an operating company during the calendar year in which the transfer date falls (“the first investment year”) or during any year following that year.

• (2) The company shall be deemed to have paid a dividend as mentioned in the said paragraph 3(b)—

• (a) in every year preceding the first investment year which is included in the relevant five years; and

• (b) in the first investment year, if that year is included in the relevant five years and that company does not in fact pay such a dividend in that year.

• (3) In subsection (2) above “the relevant five years” means the five years immediately preceding the year in which the investment in question is made or proposed to be made.

Provisions with respect to existing bodies

Dissolution etc. of existing bodies.

84

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Compensation to members and employees of existing bodies.

85

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Discharge of certain advances and loans made to existing bodies.

86

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Expenditure and receipts of Electricity Council.

87

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Grants towards expenditure during transitional period.

88

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Miscellaneous

Payments for the use of tax losses.

89

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Taxation provisions.

90

Schedule 11 to this Act (which makes provision about taxation in relation to or in connection with the other provisions of this Part) shall have effect.

Electricity Stock.

91

• (1) On the transfer date all the rights and liabilities —

• (a) to which the Electricity Council was entitled or subject immediately before that date under the terms of issue of British Electricity Stock; or

• (b) to which the North of Scotland Hydro-Electric Board was entitled or subject immediately before that date under the terms of issue of North of Scotland Electricity Stock,

shall become by virtue of this section rights and liabilities of the Treasury.

• (2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• (3) The Bank of England shall deal with—

• (a) money paid to them under subsection (2) above; and

• (b) money already in their hands which represents such unclaimed interest or redemption money as is mentioned in that subsection,

as money entrusted to them for payment to holders of the Stock concerned and section 5 of the Miscellaneous Financial Provisions Act 1955 (which relates to unclaimed dividends etc. on Government Stock) shall apply accordingly.

• (4) In this section—

• “British Electricity Stock” means any stock created and issued under section 16(1) of the Electricity Act 1957 or under section 40 of the Electricity Act 1947;

• “North of Scotland Electricity Stock” means any stock created and issued under section 13 of the Hydro-Electric Development (Scotland) Act 1943.

Abolition of central guarantee fund.

92

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Supplemental

Parliamentary disqualification.

93

In the House of Commons Disqualification Act 1975, in Part III of Schedule 1 (other disqualifying offices) there shall be inserted (at the appropriate place) the following entry—

Director of a successor company (within the meaning of Part II of the Electricity Act 1989), being a director nominated or appointed by a Minister of the Crown or by a person acting on behalf of the Crown

Construction of references to property, rights and liabilities.

94

• (1) References in this Part to property, rights and liabilities of an Electricity Board or the Electricity Council are references to all such property, rights and liabilities, whether or not capable of being transferred or assigned by that body.

• (2) It is hereby declared for the avoidance of doubt that—

• (a) any reference in this Part to property of an Electricity Board or the Electricity Council is a reference to property of that Board or Council, whether situated in the United Kingdom or elsewhere; and

• (b) any such reference to rights and liabilities of an Electricity Board or the Electricity Council is a reference to rights to which that Board or Council is entitled, or (as the case may be) liabilities to which that body is subject, whether under the law of the United Kingdom or of any part of the United Kingdom or under the law of any country or territory outside the United Kingdom.

Other interpretation of Part II.

95

• (1) In this Part, unless the context otherwise requires—

• “the appropriate successor company”, in relation to an existing body, has the meaning given by section 88(4) above;

• “debentures” includes debenture stock;

• “existing body” has the meaning given by section 84(1) above;

• “generating company” means a company designated as such by the Secretary of State;

• “operating company” has the meaning given by section 74(10) above;

• “securities”, in relation to a company, includes shares, debentures, bonds and other securities of the company, whether or not constituting a charge on the assets of the company;

• “shares” includes stock;

• “Scottish electricity company” means a company designated as such by the Secretary of State;

• “Scottish nuclear company” means the company designated as such by the Secretary of State;

• “successor company” has the meaning given by section 71(1) above;

• “supply company” has the meaning given by section 65(5) above;

• “the transfer date”—in relation to any transfer effected by subsection (1) of section 65 or subsection (5) of section 66 above, has the meaning given by the said subsection (1);in relation to any transfer effected by subsection (4) of section 67 above, has the meaning given by subsection (3) of that section;

• “transferee” and “transferor”, in relation to any transfer of property, rights and liabilities effected or proposed to be effected under this Part, mean respectively the person to whom and the person from whom they are or are to be so transferred;

• “transfer scheme” has the meaning given by section 69(1) above;

• “transitional period”, in relation to an existing body, has the meaning given by section 84(2) above;

• “transmission company” means the company designated as such by the Secretary of State.

• (2) A company shall be regarded for the purposes of this Part as wholly owned by the Crown at any time when none of the issued shares in the company is held otherwise than—

• (a) by, or by a nominee of, the Treasury or the Secretary of State; or

• (b) by a company which is itself wholly owned by the Crown.

Part III — MISCELLANEOUS AND SUPPLEMENTAL

Miscellaneous

Directions for preserving security of electricity supplies etc.

96

• (1) The Secretary of State may, after consultation with a person to whom this section applies, give to that person such directions of a general character as appear to the Secretary of State to be requisite or expedient for the purpose of—

• (a) preserving the security of buildings or installations used for, or for purposes connected with, the generation, transmission or supply of electricity or the provision of a smart meter communication service; or

• (b) mitigating the effects of any civil emergency which may occur.

• (2) If it appears to the Secretary of State to be requisite or expedient to do so for any such purpose as is mentioned in subsection (1) above, he may, after consultation with a person to whom this section applies, give to that person a direction requiring him (according to the circumstances of the case) to do, or not to do, a particular thing specified in the direction.

• (3) A person to whom this section applies shall give effect to any direction given to him by the Secretary of State under this section notwithstanding any other duty imposed on him by or under this Act.

• (4) The Secretary of State shall lay before each House of Parliament a copy of every direction given under this section unless he is of the opinion that disclosure of the direction is against the interests of national security or the commercial interests of any person.

• (5) A person shall not disclose, or be required by virtue of any enactment or otherwise to disclose, anything done by virtue of this section if the Secretary of State has notified him that the Secretary of State is of the opinion that disclosure of that thing is against the interests of national security or the commercial interests of some other person.

• (6) This section applies to any licence holder and any person authorised by an exemption to generate or supply electricity or the provision of a smart meter communication service.

• (7) In this section “civil emergency” means any natural disaster or other emergency which, in the opinion of the Secretary of State, is or may be likely to disrupt electricity supplies; and expressions used in Part I have the same meanings as in that Part.

Financial assistance for discharge of nuclear liabilities.

97

The provisions of Schedule 12 to this Act (which provide for the giving of financial assistance in connection with the storage and reprocessing of nuclear fuel, the treatment, storage and disposal of radioactive waste and the decommissioning of nuclear installations) shall have effect.

Provision of statistical information.

98

• (1) The Secretary of State may, if he considers it expedient for the purpose of obtaining statistical information relating to the generation, transmission or supply of electricity or the use of electricity interconnectors or the provision of a smart meter communication service, serve a notice under this section on any licence holder or any person who is authorised by an exemption to generate or supply electricity or to participate in the operation of electricity interconnectors or to provide a smart meter communication service.

• (2) A notice under this section may require the person on whom it is served to furnish, at a time and place specified in the notice, to the Secretary of State such statistical information about that person’s business as may be so specified.

• (3) Subject to subsections (4) and (5) below, no information with respect to any particular business which—

• (a) has been obtained under this section; and

• (b) relates to the affairs of any individual or to any particular business,

shall, during the lifetime of that individual or so long as that business continues to be carried on, be published or otherwise disclosed without the consent of that individual or the person for the time being carrying on that business.

• (4) Subsection (3) above does not apply in relation to any disclosure which is made after consultation with the individual concerned, or the person for the time being carrying on the business concerned, and is of information relating to—

• (a) the quantities of electricity generated by particular methods or by the use of particular fuels;

• (b) the quantities of particular fuels used for the generation of electricity;

• (c) the quantities of electricity transferred between Great Britain and countries or territories outside Great Britain, or between England and Wales on the one hand and Scotland on the other; or

• (d) the quantities of electricity supplied in England, Scotland or Wales either generally or to persons of any particular class or description.

• (5) Subsection (3) above does not apply in relation to any disclosure which is made to the Minister in charge of any Government department or to the Scottish Ministers or for the purposes of any proceedings under this section.

• (6) The Secretary of State may, after consultation with persons or bodies appearing to him to be representative of persons likely to be affected, by order amend subsection (4) above so as to add other descriptions of information which may be disclosed notwithstanding that it may relate to a particular person or business.

• (7) Any person who without reasonable excuse fails to furnish information in compliance with a requirement under this section shall be liable on summary conviction to a fine not exceeding level 1 on the standard scale.

• (8) Any person who publishes or discloses any information in contravention of subsection (3) above or, in purported compliance with a requirement under this section, knowingly or recklessly furnishes any information which is false in any material particular shall be liable—

• (a) on summary conviction, to imprisonment for a term not exceeding three months or a fine not exceeding the statutory maximum or both;

• (b) on conviction on indictment, to imprisonment for a term not exceeding two years or a fine or both.

• (9) In this section “information” does not include estimates as to future matters but, subject to that, expressions which are used in Part I have the same meanings as in that Part.

Promotion of new techniques in national interest.

99

• (1) The Secretary of State shall exercise the power conferred on him by section 5 of the Science and Technology Act 1965 (expenditure on research and development in science or technology) for the purpose of promoting such research into, and such development of, new techniques relating to the generation, transmission or supply of electricity as appears to him to be necessary in the national interest.

• (2) The Secretary of State may, if he considers it expedient for purposes connected with the performance of his duty under this section, serve notice under this subsection on any licence holder or any person who is authorised by an exemption to generate or supply electricity.

• (3) A notice under subsection (2) above may require the person on whom it is served to furnish, at a time and place specified in the notice, to the Secretary of State such information about that person’s business as may be so specified.

• (4) Subsections (3), (5) and (7) to (9) of section 98 above shall apply for the purposes of this section as they apply for the purposes of that section.

Amendment of enactments

Competition and restrictive trade practices.

100

• (1) Electricity shall be treated as goods for the purposes of the 1973 Act, ... , the 1980 Act and the Enterprise Act 2002.

• (2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• (3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• (4) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• (5) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• (6) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Rights of entry.

101

In section 2 of the Rights of Entry (Gas and Electricity Boards) Act 1954 (warrant to authorise entry), for subsection (4) there shall be substituted the following subsection—

(4) Every warrant granted under this section shall continue in force until— (a) the time when the purpose for which the entry is required is satisfied; or (b) the end of the period of 28 days beginning with the day on which the warrant was granted, whichever is the earlier.

Production and supply of heat or electricity etc. by Scottish local authorities.

102

The provisions of Schedule 13 (which inserts into the Local Government (Scotland) Act 1973 provisions analogous to sections 11 (production and supply of heat or electricity or both by local authorities in England and Wales) and 12 (provisions supplementary to the said section 11) of the Local Government (Miscellaneous Provisions) Act 1976) shall have effect.

Stamp duty exemption for certain contracts.

103

Electricity shall be treated as goods for the purposes of section 59 of the Stamp Act 1891 (certain contracts chargeable as conveyances on sale).

Amendment etc. of pension schemes

Amendment etc. of Electricity Supply Pension Scheme.

104

The provisions of Schedule 14 to this Act (which provide for amending the Electricity Supply Pension Scheme and for giving special protection to certain persons who have or may acquire rights under that scheme) shall have effect.

Amendment etc. of Scottish Pension Schemes.

105

The provisions of Schedule 15 to this Act (which provide for amending the Hydroboard Superannuation Fund and the South of Scotland Electricity Board’s Superannuation Scheme and for giving special protection to certain persons who have or may acquire rights under those schemes) shall have effect.

Supplemental

Regulations and orders.

106

• (1) Any power under this Act to make regulations, and any power of the Secretary of State under this Act to make orders (other than the powers conferred by section 23, paragraph 9(6) of Schedule 4 and paragraph 2 of Schedule 5), shall be exercisable by statutory instrument.

• (1ZA) Subsection (1) does not apply to a power of the Scottish Ministers to make regulations (see section 27 of the Interpretation and Legislative Reform (Scotland) Act 2010 (Scottish statutory instruments)).

• (1A) Any power of the Scottish Ministers to make orders under section 32 is exercisable by statutory instrument.

• (1B) Any power of the Welsh Ministers to make orders under section 36 or 36C or paragraph 1(4) of Schedule 9 is exercisable by statutory instrument.

• (2) Any statutory instrument containing—

• (a) regulations under this Act made by the Secretary of State (other than regulations under section 56FBA); or

• (b) an order under this Act (other than an order appointing a day or nominating a company , an order under section 11A, 27O, 32, 32LA, 32N, 32R(4), 41A, ... 56A or 56FA or an order under paragraph 4 of Schedule 12 to this Act),

shall be subject to annulment in pursuance of a resolution of either House of Parliament.

• (2ZA) Subsection (2) does not apply to a statutory instrument containing (whether alone or with other provision)—

• (a) regulations under paragraph 2A of Schedule 8;

• (b) regulations under section 38A.

• (2A) Any statutory instrument containing regulations or an order made by the Welsh Ministers under section 36 or 36C or paragraph 1(4) of Schedule 9 shall be subject to annulment in pursuance of a resolution of the National Assembly for Wales.

• (3) Regulations made by the Scottish Ministers under —

• (a) section 36C,

• (b) section 37A,

• (c) section 37B,

• (d) section 37C,

• (e) paragraph 6A of Schedule 4, or

• (f) any paragraph of Schedule 8 except paragraph 2A,

are subject to the negative procedure.

• (4) Before making regulations under a provision listed in subsection (6), the Secretary of State must consult the Scottish Ministers.

• (5) Before making regulations under a provision listed in subsection (6), the Scottish Ministers must consult the Secretary of State.

• (6) The provisions are—

• (a) section 37A;

• (b) section 37B;

• (c) section 37C;

• (d) paragraphs 1A, 2A and 7B of Schedule 8.

Directions.

107

• (1) It shall be the duty of any person to whom a direction is given under this Act to give effect to that direction.

• (2) Any power conferred by this Act to give a direction shall, unless the context otherwise requires, include power to vary or revoke the direction.

• (3) Any direction given under this Act shall be in writing.

Offences by bodies corporate.

108

• (1) Where a body corporate is guilty of an offence under this Act and that offence is proved to have been committed with the consent or connivance of, or to be attributable to any neglect on the part of, any director, manager, secretary or other similar officer of the body corporate or any person who was purporting t oact in any such capacity he, as well as the body corporate, shall be guilty of that offence and shall be liable to be proceeded against and punished accordingly.

• (2) Where the affairs of a body corporate are managed by its members, subsection (1) above shall apply in relation to the acts and defaults of a member in connection with his functions of management as if he were a director of the body corporate.

Extraterritorial operation of Act

108A

• (1) Where by virtue of this Act an act or omission taking place outside Great Britain constitutes an offence, proceedings for the offence may be taken, and the offence may for all incidental purposes be treated as having been committed, in any place in Great Britain.

• (2) Provision made by or under this Act in relation to places outside Great Britain—

• (a) so far as it applies to individuals, applies to them whether or not they are British citizens; and

• (b) so far as it applies to bodies corporate, applies to them whether or not they are incorporated under the law of a part of the United Kingdom.

Service of documents.

109

• (1) Any document required or authorised by virtue of this Act to be served on any person may be served—

• (a) by delivering it to him or by leaving it at his proper address or by sending it by post to him at that address; or

• (b) if the person is a body corporate, by serving it in accordance with paragraph (a) above on the secretary of that body; or

• (c) if the person is a partnership, by serving it in accordance with paragraph (a) above on a partner or a person having the control or management of the partnership business.

• (2) For the purposes of this section and section 7 of the Interpretation Act 1978 (which relates to the service of documents by post) in its application to this section, the proper address of any person on whom a document is to be served shall be his last known address, except that—

• (a) in the case of service on a body corporate or its secretary, it shall be the address of the registered or principal office of the body;

• (b) in the case of service on a partnership or a partner or a person having the control or management of a partnership business, it shall be the address of the principal office of the partnership;

and for the purposes of this subsection the principal office of a company registered outside the United Kingdom or of a partnership carrying on business outside the United Kingdom is its principal office within the United Kingdom.

• (3) If a person to be served by virtue of this Act with any document by another has specified to that other an address within the United Kingdom other than his proper address (as determined in pursuance of subsection (2) above) as the one at which he or someone on his behalf will accept documents of the same description as that document, that address shall also be treated as his proper address for the purposes of this section and for the purposes of the said section 7 in its application to this section.

• (4) If the name or address of any owner or occupier of land on whom by virtue of this Act any document is to be served cannot after reasonable inquiry be ascertained, the document may be served by—

• (a) addressing it to him by the description of “owner” or “occupier” of the land (describing it); and

• (b) either leaving it in the hands of a person who is or appears to be resident or employed on the land or leaving it conspicuously affixed to some building or object on or near the land.

• (4A) In the case of any document required or authorised by virtue of this Act to be served on any person by the Authority or the Secretary of State, that document may also be served by electronic means if the conditions in subsection (4B) are met.

• (4B) The conditions in this subsection are that—

• (a) the person on whom the document is to be served has indicated to the Authority or the Secretary of State (as the case may be) the person’s willingness to receive by electronic means documents of that description (and has not withdrawn that indication); and

• (b) the document is sent to the number or address most recently specified by the person for that purpose.

• (4C) An indication for the purposes of subsection (4B)—

• (a) must be given in such manner and include such information as the Authority or the Secretary of State (as the case may be) directs; and

• (b) may be withdrawn by an indication given in such manner as the Authority or the Secretary of State (as the case may be) directs.

• (4D) Withdrawal of an indication given for the purposes of subsection (4B) takes effect at the beginning of the fifth working day after the day on which the Authority or the Secretary of State (as the case may be) receives the indication withdrawing it.

• (4E) A document which is served in accordance with subsection (4A) is to be treated as having been served on the next working day after the day on which it is sent.

• (5) This section shall not apply to any document in relation to the service of which provision is made by rules of court.

• (6) In this section—

• “secretary”, in relation to a local authority within the meaning of the Local Government Act 1972 or the Local Government (Scotland) Act 1973, means the proper officer within the meaning of that Act;

• “working day” means any day other than—Saturday or Sunday;Christmas Day or Good Friday;a day which is a bank holiday in England and Wales or Scotland under the Banking and Financial Dealings Act 1971.

Financial provisions.

110

There shall be paid out of money provided by Parliament—

• (a) any administrative expenses incurred by the Secretary of State or the Treasury in consequence of the provisions of this Act; and

• (b) any increase attributable to this Act in the sums payable out of money so provided under any other Act.

General interpretation.

111

• (1) In this Act, unless the context otherwise requires—

• “Area Board” has the same meaning as in the Electricity Act 1947;

• “the Authority” means the Gas and Electricity Markets Authority;

• “Citizens Advice” means the National Association of Citizens Advice Bureaux;

• “Citizens Advice Scotland” means the Scottish Association of Citizens Advice Bureaux;

• “contravention”, in relation to any direction, condition, requirement, regulation or order, includes any failure to comply with it and cognate expressions shall be construed accordingly;

• ...

• . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• “Electricity Board” means an Area Board, the Generating Board or a Scottish Board;

• “the Generating Board” means the Central Electricity Generating Board;

• “modifications” includes additions, alterations and omissions and cognate expressions shall be construed accordingly;

• “protection of the water environment” has the same meaning as in section 1(2) of the Water Environment and Water Services (Scotland) Act 2003;

• “Scottish Board” means either the North of Scotland Hydro-Electric Board or the South of Scotland Electricity Board.

• (2) For the purposes of this Act any class or description may be framed by reference to any matters or circumstances whatever.

Amendments, transitional provisions, savings and repeals.

112

• (1) The enactments mentioned in Schedule 16 to this Act shall have effect subject to the amendments there specified (being minor amendments or amendments consequential on the preceding provisions of this Act).

• (2) The Secretary of State may by order make such consequential modifications of any provision contained in any Act (whether public general or local) passed, or in subordinate legislation made, before the relevant date as appear to him necessary or expedient—

• (a) in respect of any reference in that Act or subordinate legislation to any of the Electricity Boards or the Electricity Council;

• (b) in respect of any reference (in whatever terms) in that Act or subordinate legislation to a person carrying on an electricity undertaking or to such an undertaking;

• (c) in respect of any reference in that Act or subordinate legislation to any enactment repealed by this Act; or

• (d) in the case of a provision contained in a local Act or subordinate legislation, in respect of any other inconsistency between that Act or subordinate legislation and this Act;

and in this subsection “the relevant date”, in relation to any modifications, means the date of the coming into force of the provisions of this Act on which they are consequential.

• (3) The transitional provisions and savings contained in Schedule 17 to this Act shall have effect; but those provisions are without prejudice to sections 16 and 17 of the Interpretation Act 1978 (effect of repeals).

• (4) The enactments mentioned in Schedule 18 to this Act (which include some that are spent or no longer of practical utility) are hereby repealed to the extent specified in the third column of that Schedule.

Short title, commencement and extent.

113

• (1) This Act may be cited as the Electricity Act 1989.

• (2) This Act shall come into force on such day as the Secretary of State may by order appoint; and different days may be so appointed for different provisions or for different purposes.

• (3) This Act, except this section and the following provisions, namely—

• Sections 32N to 32Z2;

• sections 65 to 70;

• section 82;

• sections 91 to 95;

• section 100;

• paragraph 8 of Schedule 1 and section 1(5) so far as relating to that paragraph;

• paragraph 10 of Schedule 2 and section 2(6) so far as relating to that paragraph;

• paragraph 11 of Schedule 16 and section 112(1) so far as relating to that paragraph; and

• Schedule 18 and section 112(4) so far as relating to enactments which extend there ...,

does not extend to Northern Ireland.

SCHEDULE 1

Remuneration, pensions etc.

1

• (1) There shall be paid to the Director such remuneration, and such travelling and other allowances, as the Secretary of State may determine.

• (2) In the case of any such holder of the office of the Director as may be determined by the Secretary of State, there shall be paid such pension, allowance or gratuity to or in respect of him, or such contributions or payments towards provision for such a pension, allowance or gratuity, as may be so determined.

• (3) If, when any person ceases to hold office as the Director, the Secretary of State determines that there are special circumstances which make it right that he should receive compensation, there may be paid to him a sum by way of compensation of such amount as may be determined by the Secretary of State.

• (4) The approval of the Treasury shall be required for the making of a determination under this paragraph.

Staff

2

The Director may, with the approval of the Treasury as to numbers and terms and conditions of service, appoint such staff as he may determine.

Expenses of the Director and his staff

3

There shall be paid out of money provided by Parliament—

• (a) the remuneration of, and any travelling or other allowances payable under this Act to, the Director and any staff of the Director;

• (b) any sums payable under this Act to or in respect of the Director; and

• (c) any expenses duly incurred by the Director or by any of his staff in consequence of the provisions of this Act.

Official seal

4

The Director shall have an official seal for the authentication of documents required for the purposes of his functions.

Performance of functions

5

• (1) Anything authorised or required by or under this Act or any other enactment to be done by the Director, other than the making of a statutory instrument, may be done by any member of the staff of the Director who is authorised generally or specially in that behalf by the Director.

• (2) The Statutory Instruments Act 1946 shall apply to any power to make statutory instruments conferred on the Director by this Act as if the Director were a Minister of the Crown.

Documentary evidence

6

The Documentary Evidence Act 1868 shall have effect as if the Director were included in the first column of the Schedule to that Act, as if the Director and any person authorised to act on behalf of the Director were mentioned in the second column of that Schedule, and as if the regulations referred to in that Act included any document issued by the Director or by any such person.

The Parliamentary Commissioner

7

In the Parliamentary Commissioner Act 1967, in Schedule 2 (departments and authorities subject to investigation), there shall be inserted (at the appropriate place) the following entry—

Office of the Director General of Electricity Supply.

Parliamentary disqualification etc.

8

In the House of Commons Disqualification Act 1975, in Part III of Schedule 1 (other disqualifying offices), there shall be inserted (at the appropriate place) the following entry—

Director General of Electricity Supply

SCHEDULE 2

Preliminary

1

In this Schedule any reference to the committee is a reference to each of the consumers’ committees.

Remuneration, pensions etc. of chairman

2

• (1) There shall be paid to the chairman of the committee such remuneration, and such travelling and other allowances, as the Director may determine.

• (2) There shall be paid such pension, allowance or gratuity to or in respect of a person who has held or holds office as chairman of the committee, or such contributions or payments towards provision for such a pension, allowance or gratuity to or in respect of such a person, as the Director may determine.

• (3) If, when any person ceases to hold office as such a chairman, the Director determines that there are special circumstances which make it right that that person should receive compensation, there may be paid to him a sum by way of compensation of such amount as the Director may determine.

• (4) The approval of the Treasury shall be required for the making of a determination under this paragraph.

Allowances for other members

3

There shall be paid to members of the committee other than the chairman such travelling and other allowances as the Director with the approval of the Treasury may determine.

Administration etc.

4

The Director may make arrangements for the committee to be provided with office accommodation and with such services as he considers appropriate to enable them to carry out their functions.

Proceedings

5

The validity of any proceedings of the committee shall not be affected by any vacancy amongst the members or by any defect in the appointment of a member.

6

• (1) Subject to sub-paragraphs (2) and (3) below, meetings of the committee shall be open to the public.

• (2) The public shall be excluded during any item of business where—

• (a) it is likely, were members of the public to be present during that item, that information furnished in confidence to the committee by the Director would be disclosed in breach of the obligation of confidence; or

• (b) the committee have resolved that, by reason of the confidential nature of the item or for other special reasons stated in the resolution, it is desirable in the public interest that the public be excluded; or

• (c) the item relates to a proposal to refer any matter to the Director in pursuance of section 45(3) or 46(1)(a) or (4) of this Act.

• (3) Except to the extent that the Director otherwise directs (whether generally or in relation to the particular case), the public shall be excluded during any item of business which relates to—

• (a) the determination of any dispute referred to the committee under section 39(5) of this Act; or

• (b) the investigation by the committee of any matter in pursuance of section 45(2) or 46(1)(b) of this Act.

• (4) The committee shall give such notice—

• (a) of any meeting of the committee which is open to the public; and

• (b) of the business to be taken at that meeting (other than items during which the public is to be excluded),

as they consider appropriate for the purpose of bringing the meeting to the attention of interested members of the public.

Sub-committees

7

• (1) The committee may, with the approval of the Director—

• (a) establish local and other sub-committees through which the committee may carry out such of their functions as they may determine;

• (b) appoint such persons (including persons who are not members of the committee) to be members of any such sub-committee as they may determine; and

• (c) regulate the procedure of any such sub-committee.

• (2) Persons appointed under sub-paragraph (1) who are not members of the committee may be reimbursed for their travelling expenses and such of their out-of-pocket expenses as do not relate to loss of remuneration.

Financial provisions

8

• (1) There shall be paid by the Director out of money provided by Parliament—

• (a) any sums payable to or in respect of any person under paragraph 2, 3 or 7 above; and

• (b) any expenses incurred by the committee in accordance with any statement approved under sub-paragraph (3) below.

• (2) The committee shall prepare and send to the Director before the beginning of each financial year a statement of the expenses which they expect to incur in respect of that year for the purposes of, or in connection with, the carrying out of their functions.

• (3) The Director shall consider any statement sent to him under sub-paragraph (2) above and shall either approve the statement or approve it with such modifications as he considers appropriate.

Amendment of other Acts

9

In section 14(1) of the Chronically Sick and Disabled Persons Act 1970, for the words “Electricity Consultative Councils, the Electricity Consumers’ Council” there shall be substituted the words “consumers’ committees appointed under section 2 of the Electricity Act 1989”.

10

In Part III of Schedule 1 to the House of Commons Disqualification Act 1975, there shall be inserted at the appropriate place—

Chairman of a consumers’ committee appointed under section 2 of the Electricity Act 1989

SCHEDULE 2ZA — Duties of distribution exemption holders

Third party access

1

• (1) This paragraph applies where—

• (a) a customer owns or occupies premises which are connected to an exempt distribution system;

• (b) the customer is taking a supply of electricity through that system from—

• (i) the distribution exemption holder that operates or has control of the system, or

• (ii) a person related to the distribution exemption holder; and

• (c) the customer—

• (i) has served on the distribution exemption holder a notice expressing the customer’s interest in taking a supply of electricity from a third party supplier through that system; and

• (ii) has provided with the notice evidence that at least one third party supplier would be willing to supply the customer with electricity through that system, and has identified any such third party supplier in the notice.

• (2) In this Schedule “expression of interest” means a notice served under sub-paragraph (1).

• (3) Within 5 working days beginning with the day on which it receives the expression of interest, the distribution exemption holder must provide any person related to it that is currently supplying the customer with electricity with a copy of the expression of interest.

• (4) Within 10 working days beginning with the day on which it receives the expression of interest, the distribution exemption holder must serve on the customer—

• (a) a notice informing the customer that it will take the steps in sub-paragraph (6) with a view to giving a third party supplier access to its distribution system; or

• (b) a notice informing the customer that the distribution exemption holder considers—

• (i) that it would need to increase the capacity of its distribution system in order to give a third party supplier access to that distribution system; and

• (ii) that one of the conditions in sub-paragraph (5) is met.

• (5) Those conditions are—

• (a) that it is not technically feasible to provide the increase in capacity in question;

• (b) that providing that increase in capacity would have a significant and adverse economic impact on the distribution exemption holder or any other person.

• (6) Where the distribution exemption holder has served on the customer a notice under sub-paragraph (4)(a), the distribution exemption holder must—

• (a) serve on any third party supplier identified in the expression of interest a notice specifying—

• (i) any metering arrangements that the distribution exemption holder considers would be required to enable access to be given; and

• (ii) whether it would be willing to give access through contractual arrangements which would not require a connection to be made or modified; and

• (b) provide each such third party supplier with any other documents or information that it may reasonably request.

• (7) The distribution exemption holder must serve the notice required by sub-paragraph (6)(a) within 20 working days beginning with the day on which it receives the expression of interest.

• (8) The distribution exemption holder must provide any documents or information requested by a third party supplier under sub-paragraph (6)(b)—

• (a) within 20 working days beginning with the day of the distribution exemption holder’s receipt of the expression of interest; or

• (b) if the request is made at a time when there are fewer than 10 working days remaining in the 20 working day period mentioned in paragraph (a) above, within 10 working days beginning with the day of the distribution exemption holder’s receipt of the request.

2

• (1) This paragraph and paragraph 3 apply where a customer who has served an expression of interest relating to an exempt distribution system serves on the distribution exemption holder a notice—

• (a) confirming that the customer has entered into a contract with a third party supplier identified in the expression of interest for the supply of electricity to premises which are connected to the exempt distribution system; and

• (b) identifying that third party supplier.

• (2) Within 5 working days beginning with the day on which it receives the notice served under sub-paragraph (1), the distribution exemption holder must provide any person related to it that is currently giving a supply of electricity to the customer with a copy of that notice.

• (3) If the distribution exemption holder has not, by the end of the 10 working day period mentioned in paragraph 1(4), served on the customer a notice under paragraph 1(4)(b), the distribution exemption holder must give the third party supplier such access to the distribution system to which the expression of interest relates as is necessary to enable the third party supplier to give a supply of electricity to the customer.

• (4) Access under sub-paragraph (2) must be given either—

• (a) as soon as is reasonably practicable after the distribution exemption holder receives the notice served under sub-paragraph (1); or

• (b) on a date agreed by the distribution exemption holder, the third party supplier and the customer in writing.

• (5) Sub-paragraphs (6) to (11) apply if the distribution exemption holder has served on the customer a notice under paragraph 1(4)(b) (whether before or after the service of the notice under sub-paragraph (1)).

• (6) Subject to sub-paragraph (7), the distribution exemption holder must give the third party supplier such access to its distribution system as is necessary to enable the third party supplier to give a supply of electricity to the customer, and must give that access—

• (a) as soon as is reasonably practicable after the end of the period of 28 working days beginning with the day on which the customer serves the notice under sub-paragraph (1); or

• (b) on a date agreed by the distribution exemption holder, the third party supplier and the customer in writing.

• (7) If, before the end of the period mentioned in sub-paragraph (6)(a), the distribution exemption holder takes the steps mentioned in sub-paragraph (8)—

• (a) the distribution exemption holder is not required to give access in accordance with sub-paragraph (6), and

• (b) sub-paragraph (9) applies.

• (8) The steps mentioned in sub-paragraph (7) are—