The Electricity from Non-Fossil Fuel Sources (Scotland) Saving Arrangements Order 2001

The Requirements - duties of the supply successor company

4.—(1) The Requirements are that—

(a) the supply successor company must by the commencement of the order period have made arrangements (“the new arrangements”) which replace (in so far as it is necessary to comply with this Order) the original arrangements but with the supply successor company replacing the relevant public electricity supplier as contracting party to those arrangements in each case;

(b) subject to paragraph (2) below, the new arrangements must secure that there is available to the supply successor company from the non-fossil fuel generating stations described in SRO Orders 1, 2 and 3 the aggregate amount of generating capacity which, immediately before the commencement of the order period, was required by those SRO Orders 1, 2 and 3 to have been available to the relevant public electricity supplier during the order period;

(c) having entered into the new arrangements, the supply successor company must not by any act or omission of his prevent those arrangements made by him from securing the result mentioned in sub-paragraph (b) above;

(d) the new arrangements must be on terms such that generators who are party to them are in substantially the same economic position as regards matters relating to contract price, indexation, timing and term under those new arrangements as they had been in as party to the original arrangements.

(2) The amount of generating capacity required by article 4(1)(b) to be available to the supply successor company shall be reduced in the same manner that article 4 of the SRO Order 2 reduced the amount of generating capacity required to be made available to the relevant public electricity supplier by that Order, but the reduction in generating capacity provided for in this paragraph shall be calculated by reference to any adapted conditions instead of by reference to the conditions precedent and termination events set out in Schedules 2 and 3 to the SRO Order 2.

(3) For the purposes of this article an “adapted condition” means a condition set out in the new arrangements which has broadly equivalent effect to a provision contained in Schedule 2 or 3 to the SRO Order 2 taking into account the fact that it is the supply successor company, not a public electricity supplier, who enters into the new arrangements.

(4) Any case of dispute as to whether a condition in the new arrangements is an “adapted condition” may be referred to and determined by the Secretary of State on application by either the supply successor company or a generator who is party to those new arrangements.