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7.—(1) This article applies where—
(a)before the appointed day a public electricity supplier has failed to meet any standard prescribed in regulations made pursuant to section 39(1)(1) of the Electricity Act; and
(b)such compensation as he may be required to make has not been paid as provided for in section 39(3) of the Electricity Act.
(2) On and after the appointed day—
(a)the failure of a public electricity supplier to meet any standard relating to supply activities shall be regarded as a failure of the supply successor and the obligation to make compensation in such a case shall be regarded as an obligation of the supply successor; and
(b)the failure of a public electricity supplier to meet any standard relating to distribution activities shall be regarded as a failure of the distribution successor and the obligation to make compensation in such a case shall be regarded as an obligation of the distribution successor.
(3) Subject to the provisions of paragraph (2), on and after the appointed day section 39 of the Electricity Act shall apply to the obligation to make compensation, and any dispute in respect thereof as if, notwithstanding the commencement by this Order of any provision of the Act, it had not been amended by the Act.
Section 39 of the Electricity Act was amended by the Competition and Service (Utilities) Act 1992, section 20(1), Schedule 1, paragraph 14 and Schedule 2. With effect from the appointed day the said section 39 is amended by section 54(1), Schedule 6, paragraphs 24 and 32 and Schedule 8.
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