PART 2Electricity Market Reform

CHAPTER 2Contracts for Difference

26Licence modifications

1

The Secretary of State may modify—

a

a condition of a particular licence under section 6(1)(a), (b) or (c) of EA 1989 (generation, transmission and distribution licences);

b

the standard conditions incorporated in licences under that provision by virtue of section 8A(1A) of that Act;

c

a document maintained in accordance with the conditions of licences under that provision, or an agreement that gives effect to a document so maintained.

2

The Secretary of State may make a modification under subsection (1) only for the purpose of—

a

conferring functions on the national system operator in connection with its functions by or by virtue of this Chapter;

b

allowing or requiring services to be provided to a CFD counterparty;

c

enforcing obligations under a CFD.

3

Provision included in a licence, or in a document or agreement relating to licences, by virtue of the power under subsection (1) may in particular include provision of a kind that may be included in regulations.

4

Before making a modification under this section, the Secretary of State must consult—

a

the Scottish Ministers,

b

the Welsh Ministers,

c

the holder of any licence being modified,

d

any person who is a holder of a licence to supply electricity under section 6(1)(d) of EA 1989,

e

any person who is a holder of a licence to supply electricity under Article 10(1)(c) of the Electricity (Northern Ireland) Order 1992 (S.I. 1992/231 (N.I. 1)),

f

the Department of Enterprise, Trade and Investment,

g

the Authority, and

h

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

5

Subsection (4) may be satisfied by consultation before, as well as by consultation after, the passing of this Act.