The Electricity and Gas (Ownership Unbundling) Regulations 2014

Electricity transmission and the operation of electricity interconnectors: independence

3.—(1) The Electricity Act 1989(1) is amended as follows.

(2) In section 10F(1) (the ownership unbundling requirement) for the words “the Authority thinks that each of the following five tests is passed” substitute—

“in relation to each of the five tests below—

(a) the Authority thinks that it is passed, or

(b) it is treated as passed by virtue of subsection (7), (9) or (9A).”.

(3) After section 10F(9) insert—

“(9A) Except where subsection (9B) applies, the Authority may treat one or more of the five tests in this section as passed if—

(a) the test or tests are not passed in relation to a relevant producer or supplier,

(b) the applicant has demonstrated to the Authority’s satisfaction that the applicant does not have a relationship with the relevant producer or supplier which might lead the applicant to discriminate in favour of the relevant producer or supplier, and

(c) the Authority thinks it appropriate to treat the test or tests as passed.

(9B) This subsection applies where the applicant, or a person who controls or has a majority shareholding in the applicant, controls or has a majority shareholding in a person (“A”) who operates a generating station and—

(a) A is a relevant producer or supplier; and

(b) the generating station is directly physically connected to anything that forms part of the applicant’s transmission system or electricity interconnector.”.

(4) After section 10I(9) (monitoring and review of certification) insert—

“(10) If, before any of the deadlines mentioned in subsection (4), (6) or (9) (or before such deadline as previously extended under this subsection), the Authority asks the certified person or a relevant producer or supplier for information under section 10J(2) or (3), the relevant deadline is the end of the 4 months beginning with the day on which the last of that information is received.”.

(5) In section 10L(1) (continuation or withdrawal of certification) after “mentioned in section 10I(4) or (6)” insert “or where relevant the 4 months mentioned in section 10I(10)”.

(6) In section 10L(3) after “mentioned in section 10I(9)” insert “or where relevant the 4 months mentioned in section 10I(10)”.

(1)

1989 c. 29. Sections 10A to 10O were inserted by S.I. 2011/2704. Other amendments have been made to the 1989 Act that are not relevant to these Regulations.