Explanatory Note

(This note is not part of the Order.)

This Order re-enacts the Electricity (Class Exemptions from the Requirements for a Licence) Order (Northern Ireland) 1992, with amendments. It grants exemption from the requirements of Article 8(1)(a) of the Electricity (Northern Ireland) Order 1992 (which prohibits the generation of electricity without a licence) and Article 8(1)(c) of that Order (which prohibits the supply of electricity to premises without a licence) to persons of particular classes. The class of persons who are exempt from the requirement to hold a licence to generate electricity is set out in Schedule 1 and the classes of persons who are exempt from the requirement to hold a licence to supply electricity to premises are set out in Schedule 2.

In addition to minor and drafting amendments, this Order makes the following changes of substance—

• the power disregarded for purposes of the 10 megawatt limit for the exemption of persons falling within Schedule 1 is extended to include power provided to a relevant single consumer or qualifying group who supplies all or some of such power in the circumstances specified in the description of Class B in Schedule 2;

• the generation and supply limits for the purposes of Schedule 1 and Class A in Schedule 2, respectively, are now determined “at any time” rather than “under normal operating conditions”;

• the exemption granted to persons falling into Class A in Schedule 2 is extended to—

  (a)

  cover electricity supplied to them by the holder of a licence under Article 10(2) of the Electricity (Northern Ireland) Order 1992;

  (b)

  allow, in the case of electrical power generated solely by non-fossil fuel generating sets, the supply of up to one megawatt; and

  (c)

  disregard, for the purposes of the supply limits, any electrical power provided on-site to any consumer of the type specified in paragraph (b)(i) or (b)(ii) of Class C in Schedule 2 with the exception of power generated from a fossil fuel or natural gas generating set which is not a CHP generating set;

• the exemption granted to persons falling within Class B in Schedule 2 is extended to allow the re-supply of electricity supplied by a Class C supplier within certain circumstances and subject to certain limits;

• the exemption granted to persons falling within Class C in Schedule 2 is amended to—

  (a)

  allow the output of each generating station which they operate to be supplied to a single consumer or qualifying group who re-supplies part of that electricity in circumstances such as they fall within the provisions of Class B of Schedule 2;

  (b)

  remove the requirement for at least 51% of the output of each generating station to be provided to on-site consumers; and

  (c)

  allow the supply of electricity generated solely by a CHP generating set to consumers who occupy premises which are not on the same site as the CHP generating set where those consumers are on-site consumers or form a qualifying group (as defined for the purposes of Class C) with the on-site consumer(s), subject, to the total amount of electricity supplied to the off-site premises not exceeding one megawatt (less any electricity supplied under Class A in Schedule 2).

The Department of Economic Development has prepared a Regulatory Impact Assessment in relation to this Order and a copy is held at Netherleigh, Massey Avenue, Belfast BT4 2JP, from where copies may be obtained, on request.