C4C7C19C2C3 Part I ELECTRICITY SUPPLY

Annotations:
Modifications etc. (not altering text)
C2

Pt. I (ss. 1-64) applied (1.10.2001) by S.I. 2001/3264, regs. 4(2), 5(2)

C3

Pt. I (ss. 1-64) amended (E.W.) (27.10.2000) by S.I. 2000/2727, art. 10

Pt. I (ss. 1-64) amended (7.11.2000) by 2000 c. 27, s. 105(1)(a); S.I. 2000/2974, art. 2, Sch. (subject to transitional provisions in arts. 3-12)

Pt. I (ss. 1-64) amended (E.W.) (1.10.2001) by S.I. 2000/2727, art. 10 (as substituted (1.10.2001) by S.I. 2001/3268, art. 2(13))

C17 Introductory

Annotations:
Modifications etc. (not altering text)
C17

Ss. 3A-3D applied (18.2.2014) by Energy Act 2013 (c. 32), ss. 136(2), 156(2)

F11. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F22. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F33 General duties of Secretary of State and Director.

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

C5C6C8C9C10C11C12C13C14C16C15C183AF4 The principal objective and general duties of the Secretary of State and the Authority.

1

The principal objective of the Secretary of State and the Gas and Electricity Markets Authority (in this Act referred to as “the Authority”) in carrying out their respective functions under this Part is to protect the interests of F17existing and future consumers in relation to electricity conveyed by distribution systems F21or transmission systemsF24... .

F251A

Those interests of existing and future consumers are their interests taken as a whole, including—

a

their interests in the reduction of electricity-supply emissions of targeted greenhouse gases; F36...

b

their interests in the security of the supply of electricity to themF37; and

c

their interests in the fulfilment by the Authority, when carrying out its functions as designated regulatory authority for Great Britain, of the objectives set out in Article 36(a) to (h) of the Electricity Directive.

1B

The Secretary of State and the Authority shall carry out their respective functions under this Part in the manner which the Secretary of State or the Authority (as the case may be) considers is best calculated to further the principal objective, wherever appropriate by promoting effective competition between persons engaged in, or in commercial activities connected with, the generation, transmission, distribution or supply of electricity or the provision or use of electricity interconnectors.

1C

Before deciding to carry out functions under this Part in a particular manner with a view to promoting competition as mentioned in subsection (1B), the Secretary of State or the Authority shall consider—

a

to what extent the interests referred to in subsection (1) of consumers would be protected by that manner of carrying out those functions; and

b

whether there is any other manner (whether or not it would promote competition as mentioned in subsection (1B)) in which the Secretary of State or the Authority (as the case may be) could carry out those functions which would better protect those interests.

2

F26In performing the duties under subsections (1B) and (1C), the Secretary of State or the Authority shall have 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 this PartF10, the Utilities Act 2000F16, Part 2 or 3 of the Energy Act 2004F27, Part 2 or 5 of the Energy Act 2008 or section 4, Part 2, F41, sections 26 to 29 of the Energy Act 2010 or Part 2 of the Energy Act 2013F18; and

c

the need to contribute to the achievement of sustainable development.

3

In performing F28the duties under subsections (1B), (1C) and (2), the Secretary of State 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 Secretary of State and the Authority may, in carrying out any function under this Part, have regard to—

a

the interests of consumers in relation to gas conveyed through pipes (within the meaning of the M1Gas Act 1986); and

b

any interests of consumers in relation to—

F8i

communications services and electronic communications apparatus, or

ii

water services or sewerage services (within the meaning of the M2Water Industry Act 1991),

which are affected by the carrying out of that function.

5

Subject to F29subsections (1B) and (2), F42and to section 132(2) of the Energy Act 2013 (duty to carry out functions in manner best calculated to further delivery of policy outcomes) the Secretary of State and the Authority shall carry out their respective functions under this Part in the manner which he or it considers is best calculated—

a

to promote efficiency and economy on the part of persons authorised by licences or exemptions to F9distribute, supply or participate in the transmission of electricityF39,F13to participate in the operation of electricity interconnectorsF40or to provide a smart meter communication service and the efficient use of electricity conveyed by distribution systems F22or transmission systems;

b

to protect the public from dangers arising from the generation, transmission, distribution or supply of electricity F38or the provision of a smart meter communication service;

F19ba

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

c

to secure a diverse and viable long-term energy supply,

F11and F30... shall, in carrying out those functions, have regard to the effect on the environment of activities connected with the generation, transmission, distribution or supply of electricity F38or the provision of a smart meter communication service.

F125A

In carrying out their respective functions under this Part in accordance with the preceding provisions of this section the Secretary of State and the Authority must each have regard to—

a

the principles under which regulatory activities should be transparent, accountable, proportionate, consistent and targeted only at cases in which action is needed; and

b

any other principles appearing to him or, as the case may be, it to represent the best regulatory practice.

F315B

In subsection (1A)—

  • “emissions” has the same meaning as in the Climate Change Act 2008 (see section 97 of that Act);

  • “electricity-supply emissions” in relation to emissions of a targeted greenhouse gas, means any such emissions (wherever their source) that are wholly or partly attributable to, or to commercial activities connected with, the generation, transmission, distribution or supply of electricity or the provision or use of electricity interconnectors;

  • “targeted greenhouse gases” has the same meaning as in Part 1 of the Climate Change Act 2008 (see section 24 of that Act).

6

In F20subsections F32(1C), (3) and (4) references to consumers include both existing and future consumers.

7

In this section and sections 3B and 3C, references to functions of the Secretary of State or the Authority under this Part include a reference to functions under the Utilities Act 2000 which relate to electricity conveyed by distribution systems F23or transmission systems.

8

In this Part, unless the context otherwise requires—

  • “exemption” means an exemption granted under section 5;

  • “licence” means a licence under section 6 and “licence holder” shall be construed accordingly.

C5C8C9C10C11C12C13C14C16C15C18F53B Guidance on social and environmental matters.

1

The Secretary of State shall from time to time issue guidance about the making by the Authority of a contribution towards the attainment of any social or environmental policies set out or referred to in the guidance.

2

The Authority shall, in carrying out its functions under this Part, have regard to any guidance issued under this section.

3

Before issuing guidance under this section the Secretary of State shall consult—

a

the Authority;

F43b

Citizens Advice;

ba

Citizens Advice Scotland;

c

licence holders; and

d

such other persons as the Secretary of State considers it appropriate to consult in relation to the guidance.

4

A draft of any guidance proposed to be issued under this section shall be laid before each House of Parliament.

5

Guidance shall not be issued under this section until after the period of forty days beginning with—

a

the day on which the draft is laid before each House of Parliament; or

b

if the draft is laid before the House of Lords on one day and the House of Commons on another, the later of those two days.

6

If, before the end of that period, either House resolves that the guidance should not be issued, the Secretary of State must not issue it.

7

In reckoning any period of forty days for the purposes of subsection (5) or (6), no account shall be taken of any time during which—

a

Parliament is dissolved or prorogued; or

b

both Houses are adjourned for more than four days.

8

The Secretary of State shall arrange for any guidance issued under this section to be published in such manner as he considers appropriate.

C5C8C9C10C11C12C13C14C16C15C18F63C Health and safety.

1

The Secretary of State and the Authority shall consult F44—

a

the Health and Safety Executive about all electricity safety issues, and

b

the Office for Nuclear Regulation about all electricity safety issues relating to nuclear sites (within the meaning of Part 3 of the Energy Act 2013),

which may be relevant to the carrying out of their respective functions under this Part.

2

The Secretary of State may require the Authority also to consult him about electricity safety issues of particular descriptions.

3

The Secretary of State and the Authority shall, in carrying out their respective functions under this Part, take into account any advice given by F15the Health and Safety Executive F45or the Office for Nuclear Regulation about any electricity safety issue (whether or not in response to consultation under subsection (1)).

4

The Authority shall, in carrying out its functions under this Part, take into account any advice given by the Secretary of State about any electricity safety issue (whether or not in response to consultation under subsection (2)).

5

For the purposes of this section an electricity safety issue is anything concerning the generation, transmission, distribution or supply of electricity which may affect the health and safety of—

a

members of the public; or

b

persons employed in connection with any of those activities.

C5C8C9C10C11C12C13C14C16C15C18F73D Exceptions from sections 3A to 3C.

1

Section 3A does not apply in relation to the issuing by the Secretary of State of guidance under section 3B.

2

Sections 3A to 3C do not apply in relation to functions of the Secretary of State under F14sections 36 to 37.

3

Sections 3A to 3C do not apply in relation to anything done by the Authority—

a

in the exercise of functions relating to the determination of disputes;

b

in the exercise of functions under section 43(3).

C14

The Authority may nevertheless, when exercising any function under section 43(3), have regard to any matter in respect of which a duty is imposed by sections 3A to 3C (“a general matter”), if it is a matter to which F46the CMA could have regard when exercising that function (but that is not to be taken as implying that, in relation to functions mentioned in subsection (2), regard may not be had to any general matter).

5

The duties imposed by sections 3A to 3C do not affect the obligation of the Authority or the Secretary of State to perform or comply with any other duty or requirement (whether arising under this Act or another enactment, by virtue of any F33EU obligation or otherwise).

3EF34Binding decisions of the Agency for the Cooperation of Energy Regulators and of the European Commission

The Authority must carry out its functions under this Part in the manner that it considers is best calculated to implement, or to ensure compliance with, any binding decision of the Agency or the European Commission made under the Electricity Directive, the Electricity Regulation or the Agency Regulation in relation to electricity.

3FF35Authority to consult and cooperate with other authorities

1

When carrying out its functions as designated regulatory authority for Great Britain the Authority must, wherever it thinks fit—

a

consult and cooperate with the Agency and designated regulatory authorities for Northern Ireland and other Member States;

b

provide the Agency and the designated regulatory authorities for Northern Ireland and other Member States with information they may require in order to carry out their functions under the Electricity Directive, the Electricity Regulation or the Agency Regulation as it applies in relation to electricity; and

c

consult relevant national authorities.

2

In exercising functions in accordance with subsection (1) the Authority must, wherever it thinks fit, cooperate with the designated regulatory authorities for Northern Ireland and other Member States within a region which includes Great Britain with a view, within that region, to—

a

the integration of national markets;

b

the promotion and facilitation of cooperation between transmission system operators;

c

the optimal management of electricity networks;

d

the promotion of jointly managed cross-border trade in electricity and the allocation of cross-border capacity;

e

enabling an adequate level of interconnection capacity;

f

the coordination of the development of network codes; and

g

the coordination of the regulation of electricity markets, including rules concerning the management of congestion of electricity networks.

3

In this section—

  • “network code” means a network code developed under Article 6 of the Electricity Regulation and adopted by the European Commission;

  • “region” includes a geographical area defined in accordance with Article 12(3) of the Electricity Regulation; and

  • “relevant national authority” means any of the following—

    1. a

      F47...

    2. b

      the Office of Communications;

    3. c

      F48the CMA ;

    4. d

      the Water Services Regulation Authority.