Article 7

SCHEDULE 5Modifications to licences granted to authorised distributors

Condition 53C. Assistance for areas with high distribution costs scheme: prohibition on engaging in preferential or discriminatory behaviour

1.  The licensee shall not, in meeting its obligations under standard condition 53B (Assistance for areas with high distribution costs scheme: allocation of the annual payment between specified suppliers), unduly discriminate as between any specified supplier or specified suppliers or unduly prefer itself or any affiliate or related undertaking over any other specified supplier or specified suppliers.

2.  When determining the level of benefit to apply to another specified supplier under standard condition 53B (Assistance for areas with high distribution costs scheme: allocation of the annual payment between specified suppliers), the licensee shall apply the same or equivalent factors (and shall, in applying such factors, take into account any information available to it) that it applies when considering the level of benefit to apply to itself or any affiliate or related undertaking.

3.  On notification by the Authority, the licensee shall keep and maintain such records concerning its compliance with this condition as are in the opinion of the Authority sufficient to enable the Authority to assess whether the licensee is complying with this condition and as are specified in any such notification, and the licensee shall furnish to the Authority such records (or such of these as the Authority may require) in such manner and at such times as the Authority may require.

4.  In this condition:

“assistance for areas with high distribution costs scheme”means the scheme established pursuant to the Energy Act 2004 (Assistance for Areas with High Distribution Costs) Order 2005.
“specified area”means the area specified in the Energy Act 2004 (Assistance for Areas with High Distribution Costs) Order 2005.
“specified supplier”means an authorised supplier as defined in section 184(13) of the Energy Act 2004 who takes demand from the GB transmission system and supplies same to customers in the specified area.