The Electricity (Class Exemptions from the Requirement for a Licence) Order 2001

Interpretation E+W+S

2.—(1) In this Order—

• “the Act” means the Electricity Act 1989;

• “additional group consumers within the 100 megawatt limit” has the meaning given to that expression in paragraph C. 2 in Schedule 4;

• [F1 “array transmission” means transmission over a high voltage array system;]

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

• “consumer” means a person to whom electricity is supplied M1 (whether or not he is the same person as the person who supplies the electricity);

• [F1 “co-ordination licence” means a licence which authorises a person to co-ordinate and direct the flow of electricity onto and over a transmission system—

  (a)

  by means of which the transmission of electricity takes place; and

  (b)

  the whole or part of which is in Great Britain or offshore waters;]

• “declared net capacity” in relation to a generating station has the meaning given to that expression in Schedule 1;

• “domestic consumer” means a consumer supplied with electricity at domestic premises (but excluding such consumer in so far as he is supplied at premises other than domestic premises);

• “domestic premises” means premises at which a supply is taken wholly or mainly for domestic purposes;

• [F1 “high voltage array system” means a transmission system—

  (a)

  which is located in offshore waters;

  (b)

  which is connected directly to an offshore generating station;

  (c)

  which is used by the person who generates electricity at that offshore generating station for conveying electricity to a primary offshore substation; and

  (d)

  in respect of which no bilateral agreement has been entered with the holder of a co-ordination licence in accordance with the arrangements for connection and use of transmission systems;]

• “licensed distributor” means the holder of a licence under section 6(1)(c) of the Act M2 ;

• “licensed generator” means the holder of a licence under section 6(1)(a) of the Act;

• “licensed supplier” means the holder of a licence under section 6(1)(d) of the Act;

• “licensed transmitter” means the holder of a licence under section 6(1)(b) of the Act;

• “offshore installation” has the same meaning as in regulation 3 of the Offshore Installations and Pipeline Works (Management and Administration) Regulations 1995 M3 ;

• [F1 “offshore generating station” means a generating station that is situated within an area of offshore waters;]

• [F1 “offshore substation” means a substation or converter station which—

  (a)

  is located wholly in offshore waters;

  (b)

  is composed of a structure serving as a collection point for electric line and electrical plant; and

  (c)

  contains equipment for the purpose of transforming electricity for conveyance onto and over a transmission system which forms, or is proposed to form, any part of a project which meets the requirements of regulation 8(6)(a) or (b) of the Electricity (Competitive Tenders for Offshore Transmission Licences) Regulations 2015;]

• [F1 “offshore waters” means—

  (a)

  waters in or adjacent to Great Britain which are between the mean low water mark and the seaward limits of the territorial sea;

  (b)

  waters within an area designated under section 1(7) of the Continental Shelf Act 1964;

  (c)

  waters within an area designated under section 84(4) of the Energy Act 2004;]

• “ordinary share capital” has the same meaning as in section 832(1) of the Income and Corporation Taxes Act 1988 M4 ;

• “parent undertaking” shall be construed in accordance with section 258 of the Companies Act 1985 M5 ;

• [F1 “primary offshore substation” means, in respect of electricity conveyed from an offshore generating station, the first or only offshore substation through which the electricity passes;]

• “qualifying group” means a group of two or more consumers which are all bodies corporate, and which either—

  (a)

  are each connected to each other, provided that any body corporate which is connected to, or a parent undertaking in relation to, any of them is a parent undertaking in relation to all of them; or

  (b)

  are each related to each other, were related to each other on 31st March 1990 and were supplied with electricity on 31st March 1990 by the person seeking to fall within the class in question specified in Schedule 2 or 4;

• [F2 “total system in England and Wales” means the transmission system located in England and Wales of the licensed transmitter and all distribution systems located in England and Wales;

• “total system in Scotland” means all transmission and distribution systems located in Scotland;

• “total system in Great Britain” means all transmission systems and distribution systems, located in Great Britain, of holders of licences under section 4(1)(b) F3 and (bb) F4 of the Act.]

• “vertically integrated undertaking” means a person who carries on two or more of the activities of generating, transmitting, distributing M6 and supplying electricity.

(2) The following provisions shall have effect for the purposes of this Order.

(a) One body corporate shall be treated as associated with another if—

(i) one of them is a subsidiary of the other; or

(ii) both of them are subsidiaries of the same holding company;

and “holding company” and “subsidiary” shall have the same meaning as in section 736 of the Companies Act 1985 M7 .

(b) One body corporate shall be treated as related to another if—

(i) one of them is a 75 per cent subsidiary of the other; or

(ii) both of them are 75 per cent subsidaries of a third body corporate;

and “75 per cent subsidiary” shall be construed in accordance with section 838 of the Income and Corporation Taxes Act 1988.

(c) One body corporate shall be treated as connected to another if—

(i) 50 per cent or more of the ordinary share capital of one of them is owned directly or indirectly by the other; or

(ii) 50 per cent or more of the ordinary share capital of each of them is owned directly or indirectly by a third body corporate;

and for the purpose of determining whether 50 per cent or more of the ordinary share capital of a body corporate is owned directly or indirectly by another body corporate the provisions of subsections (2) to (10) of section 838 of the Income and Corporation Taxes Act 1988 shall apply in relation to this sub-paragraph as they apply in relation to subsection (1) of that section.

(d) A person shall be treated as generating electricity at any time if he is the operator of plant or equipment which at that time—

(i) is generating or capable of generating electricity; or

(ii) is not capable of generating electricity only by reason of the maintenance, repair or testing of the plant or equipment.

(e) Premises shall be treated as on the same site as each other if they are—

(i) the same premises;

(ii) immediately adjoining each other; or

(iii) separated from each other only by a road, railway or watercourse or by other premises occupied by the consumer in question, by any other person who together with that consumer forms a qualifying group, or by the person seeking to fall within the class in question specified in Schedule 2 or 4.

Textual Amendments

F1 Words in art. 2 inserted (16.8.2024) by The Electricity (Class Exemptions from the Requirement for a Licence) (Amendment) Order 2024 (S.I. 2024/819), art. 1(1), Sch. para. 1

F2 Words in art. 2(1) substituted (1.4.2005) by The Electricity (Class Exemptions from the Requirement for a Licence) (Amendment) Order 2005 (S.I. 2005/488), arts. 1, 3

F3 Section 4(1)(b) of the Act was substituted by section 135(2) of the Energy Act 2004 (c. 20).

F4 Section 4(1)(bb) was inserted by section 28(2) of the Utilities Act 2000 (c. 27).

Marginal Citations

M1 The definition of “supply” was substituted in section 4(4) of the Electricity Act 1989 by section 28(1) and (3)(b) of the Utilities Act 2000.

M2 A new section 6 was substituted by section 30 of the Utilities Act 2000.

M3 S.I. 1995/738.

M4 1988 c. 1.

M5 1985 c. 6; section 258 was inserted by section 21 of the Companies Act 1989 (c. 40).

M6 The definition of “distribute” was inserted into section 4(4) of the Electricity Act 1989 by section 28(1) and (3)(a) of the Utilities Act 2000.

M7 Section 736 was substituted by section 144(1) of the Companies Act 1989.