SCHEDULES

F1SCHEDULE 2ZADuties of distribution exemption holders

Interpretation

16.

(1)

In this Schedule—

“charging statement” (in relation to a distribution exemption holder who proposes to impose a use of system charge) is to be construed in accordance with paragraph 5(2)(b);

“closed distribution system” means a system classified as a closed distribution system by the Authority under paragraph 12(2);

“customer” means a person who purchases electricity for the person’s own consumption;

“expression of interest’ has the meaning given by paragraph 1(2);

“household customer” means a customer who purchases electricity for consumption by the customer’s own household;

“system user”, in relation to a distribution system, means—

(a)

a person supplying electricity that is being conveyed by means of that distribution system; or

(b)

a customer who owns or occupies premises that are connected to that distribution system;

“third party supplier”, in relation to a distribution exemption holder, means any authorised supplier that is not related to the distribution exemption holder;

“use of system charge”, in relation to a distribution exemption holder, means a charge which—

(a)

is levied by the distribution exemption holder on a third party supplier identified in an expression of interest that has been served on the distribution exemption holder; and

(b)

is for use of the exempt distribution system to which the expression of interest relates.

(2)

For the purposes of this Schedule, a person (“A”) is related to another person (“B”) where A is—

(a)

an undertaking in which B has a participating interest within the meaning of section 421A of the Financial Services and Markets Act 2000;

(b)

a holding company of B;

(c)

a subsidiary of B; or

(d)

a subsidiary of a holding company of B.

(3)

For the purposes of sub-paragraph (2) “holding company” and “subsidiary” are to be construed in accordance with section 1159 of the Companies Act 2006.