Part 3Energy Regulation

Chapter 1Electricity trading and transmission

I1134Power to modify licence conditions

1

If the Secretary of State considers it necessary or expedient to do so for the purpose of implementing the new trading and transmission arrangements (whether wholly or partly), he may modify—

a

the conditions of a particular licence under section 6 of the 1989 Act (licences authorising supply etc.), or

b

the standard conditions of licences of any of the types of licence mentioned in subsection (1) of that section (generation, transmission, distribution or supply licences).

2

The power under subsection (1) includes—

a

power to make modifications relating to the operation of distribution systems, and

b

power to make incidental, consequential or transitional modifications.

3

Before making modifications under this section, the Secretary of State shall consult the holder of any licence being modified and such other persons as he considers appropriate.

4

Subsection (3) may be satisfied by consultation before, as well as by consultation after, the commencement of this section.

5

The Secretary of State shall publish any modifications under subsection (1) in such manner as he considers appropriate.

6

Any modification under subsection (1)(a) of part of a standard condition of a licence shall not prevent any other part of the condition from continuing to be regarded as a standard condition for the purposes of Part 1 of the 1989 Act.

7

Where the Secretary of State modifies the standard conditions of licences of any type under subsection (1)(b), GEMA shall—

a

make (as nearly as may be) the same modifications of those standard conditions for the purposes of their incorporation in licences of that type granted after that time, and

b

publish the modifications in such manner as it considers appropriate.

8

The power under subsection (1) may not be exercised after the end of the period of eighteen months beginning with the day on which that subsection comes into force.

9

In subsection (2)(a), the reference to distribution systems is to be construed in accordance with section 4(4) of the 1989 Act.