The Electricity (Class Exemptions from the Requirement for a Licence) Order 1990

Article 2(1)

SCHEDULE 1 MEANING OF “DECLARED NET CAPACITY”

1.  The declared net capacity of a generating station which is driven by any means other than water, wind or solar power is the highest generation of electricity (at the main alternator terminals) which can be maintained indefinitely without causing damage to the plant less so much of that capacity as is consumed by the plant.

2.  The declared net capacity of a generating station which is driven by water, wind or solar power shall be ascertained by the application of the formula A x B where—

• A is the highest generation of electricity (at the main alternator terminals or, in the case of direct current generation, at the output terminals of the direct current to alternating current converter) which, on the assumption that the source of power is available uninterruptedly, can be maintained indefinitely without causing damage to the plant less so much of that electricity as is consumed by the plant; and

• B has the value set out in the table as applicable to the particular description of station.

TABLE

(1)	(2)
Description of station	Value of B
1.  Station driven by tidal or wave power	0.33
2.  Station driven by any form of water power other than tidal or wave power	1
3.  Station driven by wind power	0.43
4.  Station driven by solar power	0.17

Article 3(1)(a)

SCHEDULE 2 EXEMPTIONS FROM SECTION 4(1)(a) OF THE ACT

Class A.Persons who do not at any time provide more electrical power than 10 megawatts from any one generating station disregarding power provided to—

(a) a single consumer who occupies premises which are on the same site as the premises where the generating station is situated and who consumes all the power provided to him from that generating station at those premises; or

(b) two or more consumers who form a qualifying group each of whom occupies premises which are on the same site as the premises where the generating station is situated and consumes all the power provided to him from that generating station at those premises.

A.1.—(1) In Class A “consumer” means a person to whom electrical power is provided (whether or not he is the same person as the person who provides the electrical power) and two or more consumers form a qualifying group if, being bodies corporate—

(a) each of them is wholly related to each other; or

(b) each of them is related to each other, was related to each other on 31st March 1990 and was provided with electricity by the person in question on 31st March 1990.

(2) For the purposes of Class A premises shall be treated as on the same site as each other if they are—

(a) the same premises;

(b) immediately adjoining each other; or

(c) separated from each other only by a road, railway or watercourse or by other premises (other than a pipe-line, electric line or similar structure) occupied by the consumer in question, by the person who generates the electricity or by any other person who together with that consumer forms a qualifying group.

Class B.Persons who—

(1) do not generate electricity except at a generating station which is situated on an offshore installation; and

(2) do not supply such electricity except to premises which constitute or are comprised in an offshore installation.

Class C.Persons other than successor companies who are generating electricity on 31st March 1990 and who have been generating electricity for a period of three months ending on 31st March 1990.

C.1.  The exemption granted by this Order to persons falling within Class C shall cease to be in force in relation to any person—

(a) on 31st March 1995; or

(b) before that date if the aggregate of the declared net capacities of all the generating stations at which that person generates electricity becomes greater than the aggregate of the declared net capacities of the generating stations at which he was generating electricity on 31st March 1990.

Article 3(1)(b)

SCHEDULE 3 EXEMPTIONS FROM SECTION 4(1)(c) OF THE ACT

Class A.Persons who do not supply any electricity except—

(a) electricity which they generate themselves; or

(b) electricity which they generate themselves together with electricity which is supplied to them by the holder of a licence under section 6(1)(c) of the Act;

and who do not at any time supply more electrical power than 500 kilowatts.

A.1.  For the purposes of Class A electrical power supplied by a body corporate which is associated with any supplier shall be treated as supplied by that supplier.

Class B.Persons who do not supply any electricity except—

(a) electricity which is supplied to their premises by the holder of a licence under section 6(1)(c) or (2) of the Act; or

(b) electricity which they generate themselves or which is supplied to them by a person authorised by an exemption to supply electricity when—

(i) the supply of electricity which is normally available to them from the holder of a licence under section 6(1)(c) or (2) of the Act is interrupted temporarily due to circumstances outside their control; or

(ii) the plant or equipment which is used to generate electricity for the purpose of giving such a supply of electricity is being tested.

B.1.—(1) The exemption granted by this Order to persons falling within Class B (in this paragraph referred to as “exempt suppliers”) shall cease to be in force in relation to any exempt supplier if he supplies section 6(2) electricity to any premises before 1st April 1998 in either of the circumstances specified in sub-paragraph (2) below.

(2) The circumstances referred to in sub-paragraph (1) above are—

(a) in a case where the exempt supplier in question supplies section 6(2) electricity to existing premises, that during the previous period of twelve consecutive months the annual maximum power made available to those premises (whether by that exempt supplier or by anyone else) was the specified amount or less, unless during some other period of twelve consecutive months the annual maximum power made available to those premises (whether by that exempt supplier or by anyone else) was more than the specified amount;

(b) in a case where the exempt supplier in question supplies section 6(2) electricity to new premises, that the exempt supplier at the time when he supplies section 6(2) electricity to those premises does not reasonably expect that the annual maximum power which would be made available to those premises (whether by that exempt supplier or by anyone else) would be more than the specified amount during the period of twelve consecutive months starting with the date on which those premises were first supplied with electricity (whether those premises were first supplied by the exempt supplier in question or by anyone else).

(3) (a) In this paragraph—

“annual maximum power” means the average of the three highest monthly amounts of electrical power provided in any period of twelve months;

“existing premises” means premises which have been previously supplied with electricity (whether by the exempt supplier in question or by anyone else) for a period of at least twelve months except premises which were supplied by that exempt supplier on 31st March 1990 pursuant to an agreement to supply those premises which was subsisting on that date;

“monthly amount of electrical power” means the highest amount of electrical power provided in any month;

“new premises” means premises which have not been previously supplied with electricity by anyone or which have been previously supplied with electricity (whether by the exempt supplier in question or by anyone else) for a period of less than twelve months except premises which were supplied by that exempt supplier on 31st March 1990 pursuant to an agreement to supply those premises which was subsisting on that date;

“the previous period of twelve consecutive months” means the period of twelve consecutive months ending at the end of the month before the month in which the exempt supplier in question supplies section 6(2) electricity to the premises in question; and

“the specified amount” means—

(i)

where an exempt supplier supplies section 6(2) electricity to any premises before 31st March 1994, 1 megawatt; and

(ii)

where an exempt supplier supplies section 6(2) electricity to any premises on or after 31st March 1994, 100 kilowatts;

(b) For the purposes of this paragraph an exempt supplier shall be treated as supplying section 6(2) electricity to premises if electricity is supplied to any of his premises by the holder of a licence under section 6(2) of the Act and he supplies electricity from those premises; and

(c) In determining whether the circumstances specified in sub-paragraph (2)(a) above apply, no account shall be taken of any period of twelve months beginning before 1st April 1989.

Class C.Persons who—

(1) do not supply any electricity except—

(a) electricity which they generate themselves; or

(b) electricity which they generate themselves together with electricity which is supplied to them by the holder of a licence under section 6(1)(c) or (2) of the Act; and

(2) provide the output of each generating station at which they generate electricity only to—

(a) a single consumer who occupies premises which are on the same site as the premises where the generating station is situated and who consumes all the electricity provided to him by the supplier in question at those premises; or

(b) two or more consumers who form a qualifying group each of whom occupies premises which are on the same site as the premises where the generating station is situated and consumes all the electricity provided to him by the supplier in question at those premises; or

(c) (i) consumers of the type specified in sub-paragraphs (a) or (b) above; and

(ii) any other person in circumstances where the provision of the output of the generating station in question does not amount to the supply of electricity to any premises:

provided that a person shall not fall within this class between the date on which he starts to provide electricity from a generating station at which he had not previously generated electricity (if that date is after 31st March 1990) and the next following 31st December unless, at the time when he starts to provide electricity from that generating station, he reasonably expects that the output of the generating station which consists of the provision of electricity to consumers of the type specified in paragraph 2(a) or (b) above will be 51% or more of the total output of the generating station during the period between the dates mentioned above.

C.1.  Where at any time the supplier in question and some other person generate electricity at the same generating station at the same time, the generation of electricity by that other person and the provision of the output of that generating station by that other person shall for the purposes of Class C be treated as the generation of electricity by that supplier if that other person, being a body corporate, is associated with that supplier.

C.2.—(1) The exemption granted by this Order to persons falling within Class C shall cease to be in force in relation to any person (in this paragraph and paragraph C.3 below referred to as an “exempt supplier”) on 1st April in any year if during the preceding relevant period the output of any generating station from which that person provides electricity which consists of the provision of electricity to consumers of the type specified in paragraph (2)(a) or (b) of Class C is less than 51% of the total output of the generating station.

(2) Where during any relevant period the exempt supplier and some other person have both been generating electricity at the same generating station at the same time, then for the purposes of determining whether sub-paragraph (1) above has effect in relation to that generating station, the provision of electricity from that generating station by that other person shall be treated as the provision of electricity by the exempt supplier if that other person, being a body corporate, was, at the time when he provided electricity from that generating station, associated with that supplier.

C.3.—(1) In Class C and paragraphs C.1 and 2 above—

“consumer” means a person other than—

(a)

the holder of a licence under section 6(1)(c) or (2) of the Act, except where the holder of such a licence is acting otherwise than for purposes connected with the supply of electricity to premises in his authorised area or, as the case may be, to premises specified or of a description specified in his licence; or

(b)

an Electricity Board,

to whom electricity is supplied (whether or not he is the same person as the person who supplies the electricity) and two or more consumers form a qualifying group if, being bodies corporate—

(a)

each of them is wholly related to each other; or

(b)

each of them is related to each other, was related to each other on 31st March 1990 and was supplied with electricity by the exempt supplier in question on 31st March 1990;

“output” in relation to a generating station means the electricity generated at that generating station other than electricity consumed by the plant;

“relevant period” means the period of a year (including the year 1989) except that when a relevant person provides electricity from any generating station for the first time after 1st January 1989 the first relevant period in relation to the generating station shall be the period beginning when he starts to provide electricity and ending on 31st December in the year in which he starts to provide electricity; and

“year” means a period of twelve months beginning with 1st January.

(2) For the purposes of Class C and paragraphs C.1 and 2 above—

(a) two or more generating sets which are operated by the same person or by bodies corporate which are associated with each other shall be treated as a single generating station if they are on the same site as each other (whether or not there is an electrical interconnection between any of them) but otherwise shall be treated as separate generating stations, and in this sub-paragraph—

(i) “generating set” means a combination of the plant and equipment that produces electricity and any other plant or equipment by which that plant or equipment is driven; and

(ii) generating sets shall be treated as being on the same site as each other if they are—

(aa) situated on the same premises as each other;

(bb) situated on premises which are immediately adjoining each other; or

(cc) situated on premises which are separated from each other only by a road, railway or watercourse or by other premises occupied by the exempt supplier in question or by a body corporate which is an associate of that supplier; and

(b) premises shall be treated as on the same site as each other if they are—

(i) the same premises;

(ii) immediately adjoining each other; or

(iii) separated from each other only by a road, railway or watercourse or by other premises (other than a pipe-line, electric line or similar structure) occupied by the exempt supplier or consumer in question or by any other person who together with that consumer forms a qualifying group.

Class D.Persons who—

(1) do not supply electricity except electricity which has been generated at a generating station which is situated on an offshore installation; and

(2) do not supply such electricity to any premises except premises which constitute or are comprised in an offshore installation.

Class E.Persons other than successor companies who are supplying electricity or making the supply of electricity available to premises on 31st March 1990 and who have been supplying electricity or making the supplies of electricity available to those premises for a period of three months ending on 31st March 1990.

E.1.  The exemption granted by this Order to persons falling with Class E shall cease to be in force in relation to any person—

(a) on 31st March 1995; or

(b) before that date if—

(i) that person supplies electricity or makes the supply of electricity available to premises other than premises to which he was supplying electricity or making the supply of electricity available on 31st March 1990; or

(ii) the aggregate of the maximum power which that person makes available at any time to the premises to which he was supplying electricity or making the supply of electricity available on 31st March 1990 exceeds the aggregate of the maximum power which he could have made available to those premises on that date (whether that amount of power was consumed on that date or not).