SCHEDULE 4Conditions to which the exemptions from Article 8(1)(bb) of the Electricity Order are subject

Closed distribution systems

11.

(1)

A distribution exemption holder may apply to the Authority for an exempt distribution system operated or controlled by it to be classified as a closed distribution system.

(2)

Where the Authority has received an application from a distribution exemption holder under sub-paragraph (1)(a “closed distribution system application”), it must classify the distribution system as a closed distribution system if the Authority considers that all of the following criteria are met—

(a)

the distribution system is not used for the purpose of supplying electricity to household customers, or is used to supply fewer than 50 household customers who—

(i)

are employees of, or work for or otherwise render services to, the distribution exemption holder or a person related to the distribution exemption holder; and

(ii)

take a supply of electricity that is wholly or mainly from a generating station embedded in the distribution system;

(b)

the distribution system is wholly or mainly used for distributing electricity within a geographically self-contained industrial, commercial or shared services site and is not integrated with any distribution system operated or controlled by an electricity distributor, or any transmission system operated or controlled by the holder of a transmission licence; and

(c)

the distribution system is wholly or mainly used either—

(i)

by system users whose businesses, for technical or safety-related reasons, have operational or production processes that are integrated with those of other system users of that distribution system; or

(ii)

for the purpose of supplying electricity to premises owned or occupied by the distribution exemption holder or by a person related to the distribution exemption holder.

(3)

A closed distribution system application must—

(a)

identify the distribution system to which the application relates;

(b)

include any evidence available to the applicant to support that application; and

(c)

provide any further information or documents that the Authority may request in respect of that application.

(4)

The Authority must decide whether to classify a distribution system as a closed distribution system as soon as is reasonably practicable after the Authority has received—

(a)

the closed distribution system application; and

(b)

any further information or documents requested by it under sub-paragraph (3)(c).

(5)

The Authority must notify the distribution exemption holder of its decision as soon as is reasonably practicable after that decision has been made.