Electricity Act 1989

[F1 6CB Recovery of tender costs E+W+S

(1) Tender regulations may include provision requiring—

(a) the payment to the Authority or a delivery body, in prescribed circumstances, of amounts in respect of—

(i) tender costs of the Authority, or of the delivery body, in relation to a tender exercise;

(ii) such amounts in respect of the Authority’s tender costs as the Authority considers appropriate, where those costs are not attributable to a particular tender exercise;

(iii) such amounts in respect of the delivery body’s tender costs as the Authority considers appropriate, where those costs are not attributable to a particular tender exercise.

(b) the provision to the Authority or to a delivery body, in prescribed circumstances, of a deposit of a prescribed amount in respect of a liability which a person has, or may in future have, by virtue of paragraph (a) in relation to a relevant licence or relevant contract;

(c) the provision to the Authority or to a delivery body, in prescribed circumstances, of security in a form approved by it in respect of such a liability.

(2) The provision that may be made by virtue of subsection (1)(a) includes provision requiring the payment of cost assessment costs incurred by—

(a) the Authority, or

(b) the delivery body,

after the Authority or delivery body (as the case may be) has taken the steps required by virtue of subsections (7) to (9) in relation to the tender exercise.

(3) The regulations may require the payments to be made, or the deposit or security to be provided, by one or more of the following—

(a) any person who has made a connection request for the purposes of which the tender exercise has been, is being, or is to be, held;

(b) any person who made a connection request for the purposes of which any previous tender exercise relating to the same transmission system, or a transmission system consisting of some or all of the same lines or plant or connecting any of the same generating stations or substations, was held;

(c) any person who made a connection request for the purposes of which any previous tender exercise relating to the same distribution system, or a distribution system consisting of some or all of the same lines or plant or connecting any of same premises or other distribution systems, was held;

(d) any person who operates a generating station which is connected to the transmission or distribution system to which the tender exercise relates;

(e) any person who submits an application for the relevant licence or bids for the award of a relevant contract to which the tender exercise relates;

(f) any person who is the holder of a transmission licence, a distribution licence, an interconnector licence or an MPI licence.

(4) The regulations may make provision about how—

(a) payments are to be made, and

(b) deposits or other forms of security are to be provided,

including provision for them to be made or provided by a person approved by the Authority or by a delivery body.

(5) The regulations may include provision about—

(a) the times at which payments are to be made, or deposits or other forms of security are to be provided, under the regulations;

(b) the circumstances in which a payment made in accordance with regulations made by virtue of subsection (1)(a) is to be repaid (wholly or in part);

(c) the circumstances in which such a repayment is to include an amount representing interest accrued on the whole or part of the payment;

(d) the circumstances in which a deposit (including any interest accrued on it) or other security provided in accordance with the regulations is to be released or forfeited (wholly or in part);

(e) the effect on a person’s participation in the tender exercise of a failure to comply with a requirement imposed by virtue of this section, and the circumstances in which the tender exercise is to stop as a result of such a failure.

(6) The regulations may include provision for—

(a) the review by the Authority, or by a person appointed by the Authority, of any tender costs determined by a delivery body;

(b) the amendment by a delivery body of its tender costs following such a review.

(7) The regulations must ensure that, as soon as reasonably practicable after a tender exercise or series of tender exercises is finished—

(a) where the Authority is the delivery body, steps are taken by the Authority, in accordance with the regulations, to ensure that the aggregate of the amounts in subsection (9) does not exceed the Authority’s tender costs in respect of the exercise or series of exercises;

(b) in any other case, steps are taken by the delivery body, in accordance with the regulations, to ensure that the aggregate of the amounts in subsection (9) does not exceed the aggregate of—

(i) the Authority’s tender costs, and

(ii) the delivery body’s tender costs,

in respect of the exercise or series of exercises.

(8) The regulations must also ensure that, in a case within subsection (7)(b), the aggregate of the amounts within subsection (9) so far as relating to any particular tender exercise does not include any amount that falls within paragraph (a) of the definition of tender costs in section 6CD(4) in relation to a different tender exercise.

(9) The amounts are—

(a) any fees under section 6A(2) in respect of applications for relevant licences,

(b) any payments made or deposits provided in accordance with regulations made by virtue of subsection (1)(a) or (b) and not repaid, and

(c) the value of any security provided in accordance with regulations made by virtue of subsection (1)(c) and forfeited in accordance with regulations made by virtue of subsection (5)(d),

so far as relating to the tender exercise or series of tender exercises in question.]

Textual Amendments

F1 Ss. 6C-6CD substituted for ss. 6C, 6D (26.10.2023) by Energy Act 2023 (c. 52), s. 334(2)(i), Sch. 15 para. 3