Local Government (Miscellaneous Provisions) Act 1976

11 Production and supply of heat etc by local authorities

(1) Subject to subsections (2) and (3) of this section, a local authority may—

(a) produce heat or electricity or both;

(b) establish and operate such generating stations and other installations as the authority thinks fit for the purpose of producing heat or electricity or both ;

(c) buy or otherwise acquire heat;

(d) use, sell or otherwise dispose of heat produced or acquired by the authority by virtue of this section;

(e) without prejudice to the generality of the preceding paragraph, enter into and carry out agreements for the supply by the authority, to premises within or outside the authority's area, of such heat as is mentioned in the preceding paragraph and steam produced from and air and water heated by such heat.

(2) A local authority shall not be entitled to make any arrangements with a view to the production in pursuance of this section of electricity for sale unless—

(a) the authority has had consultations about the arrangements with the Central Electricity Generating Board and with any Electricity Board proposed to be specified in the arrangements in pursuance of paragraph (b) of the following subsection ; and

(b) the arrangements are approved by the Secretary of State and are in accordance with any conditions which he attaches to his approval.

(3) Where a local authority produces electricity by virtue of this section the authority—

(a) may use any of the electricity at the installation at which it was produced and on any premises occupied by the authority in connection with the installation, but shall not use any of it elsewhere;

(b) may sell any of the electricity, on such terms as are specified in the relevant arrangements made in pursuance of the preceding subsection, to any Electricity Board which is so specified, but shall not sell or otherwise dispose of it to any other person;

and it shall be the duty of any Electricity Board so specified to buy electricity from the authority in accordance with the said arrangements.

(4) A local authority may—

(a) construct, lay and maintain pipes and associated works for the purpose of conveying heat produced or acquired by the authority by virtue of this section and steam produced from and air and water heated by such heat;

(b) contribute towards the cost incurred by another person in providing or maintaining pipes or associated works which are connected with pipes provided by the authority in pursuance of the preceding paragraph.

(5) Parts V and VI of Schedule 3 to the [1945 c. 42.] Water Act 1945 (which relate to the laying of mains and the breaking open of streets) shall apply in relation to pipes and associated works provided or to be provided in pursuance of paragraph (a) of the preceding subsection as those Parts apply in relation to water mains and pipes but as if—

(a) sections 19(4) and 21 of that Schedule (which relate to the erection of street notices and the laying of service pipes) were omitted, and in section 22 of that Schedule the words " which they are authorised to lay " were omitted; and

(b) for any reference to undertakers or limits of supply there were substituted respectively a reference to the authority in question and the area of the authority; and

(c) for the reference to the special Act in section 25(4) of that Schedule there were substituted a reference to this subsection.

(6) It shall be the duty of a local authority by which an installation for producing heat is operated in pursuance of this section in any year to furnish to the Secretary of State, as soon as practicable after the end of that year, such particulars relating to the installation and heat produced at it as are prescribed.

(7) In this section—

• " associated works ", in relation to pipes, means any of the following connected with the pipes, namely, any valve, filter, stopcock, pump, meter, inspection chamber and manhole and such other works as are prescribed;

• "Electricity Board " has the same meaning as in the [1947 c. 54.] Electricity Act 1947 ; and

• " prescribed " means prescribed by regulations made by statutory instrument by the Secretary of State;

and nothing in this section (except the restrictions imposed by subsection (3)) shall be construed as prejudicing any power exercisable by a local authority apart from this section.