12.—(1) The principal objective of the Department and the Authority in carrying out their respective electricity functions is to protect the interests of consumers of electricity supplied by authorised suppliers, wherever appropriate by promoting effective competition between persons engaged in, or in commercial activities connected with, the generation, transmission or supply of electricity.
(2) The Department and the Authority shall carry out those functions in the manner which it considers is best calculated to further the principal objective, having regard to—
(a)the need to secure that all reasonable demands for electricity are met; and
(b)the need to secure that licence holders are able to finance the activities which are the subject of obligations imposed by or under Part II of the Electricity Order or this Order; and
(c)the need to secure—
(i)that the prices charged to tariff customers by public electricity suppliers for electricity supplied under Article 19(1) of the Electricity Order to premises in any area specified in an order made by the Department are in accordance with tariffs which do not distinguish (whether directly or indirectly) between different parts of that area; and
(ii)that public electricity suppliers are not thereby disadvantaged in competing with other persons authorised by a licence or exemption to supply electricity to such premises.
(3) In performing that duty, the Department or the Authority shall have regard to the interests of—
(a)individuals who are disabled or chronically sick;
(b)individuals of pensionable age;
(c)individuals with low incomes; and
(d)individuals residing in rural areas;
but that is not to be taken as implying that regard may not be had to the interests of other descriptions of consumer.
(4) The Department and the Authority may, in carrying out any electricity functions, have regard to the interests of consumers in relation to gas.
(5) Subject to paragraph (2), the Department and the Authority shall carry out their respective electricity functions in the manner which it considers is best calculated—
(a)to promote the efficient use of electricity and efficiency and economy on the part of persons authorised by licences or exemptions to supply or participate in the transmission of electricity;
(b)to protect the public from dangers arising from the generation, transmission or supply of electricity;
[F1(c)to secure a diverse, viable and environmentally sustainable long‐term energy supply;]
(d)to promote research into, and the development and use of, new techniques by or on behalf of persons authorised by a licence to generate, supply or participate in the transmission of electricity; and
(e)to secure the establishment and maintenance of machinery for promoting the health and safety of persons employed in the generation, transmission or supply of electricity;
and shall have regard, in carrying out those functions, to the effect on the environment of activities connected with the generation, transmission or supply of electricity.
[F1(6) In carrying out their respective electricity functions the Department or the Authority shall not discriminate between persons whose activities consist of or include generating, supplying or transmitting electricity as regards either rights or obligations.
(7) In this Article—
“electricity functions” means functions under Part II of the Electricity Order and functions under this Order relating to electricity; and
“environmental sustainability” includes the need to guard against climate change.]
F1SR 2005/335
13.—(1) Article 12 does not apply in relation to functions of the Department under—
(a)Article 39, 40, 58, 59 or 60 of the Electricity Order; or
(b)Article 61.
(2) Article 12 does not apply in relation to anything done by the Authority—
(a)in the exercise of functions relating to the determination of disputes; or
(b)in the exercise of functions under—
(i)Article 46(3) of the Electricity Order; or
(ii)Article 8.
(3) The Authority may nevertheless, when exercising any function under Article 46 (3) of the Electricity Order, have regard to any matter in respect of which a duty is imposed by Article 12 if it is a matter to which the Office of Fair Trading could have regard when exercising that function.
(4) The duties imposed by Article 12 do not affect the obligation of the Authority or the Department to perform or comply with any other duty or requirement (whether arising under this Order or another statutory provision, by virtue of any Community obligation or otherwise).