The Energy Act 2008 (Commencement No. 5) Order 2010

EXPLANATORY NOTE

(This note is not part of the Order)

This Order brings into force on 29th July 2010 section 44(3) (definition of ‘relevant offshore line’) of the Energy Act 2008 (the Act), for the purposes specified in article 2(1). Section 44(3) of the Act inserts a new definition into section 64 (interpretation of Part 1) of the Electricity Act 1989 (c.29) of ‘a relevant offshore line’ for the purposes of the definition of ‘high voltage line’ in that section.

Sections 89 (activities offshore requiring 1989 Act licences) and 180(1) (meaning of ‘high voltage line’) of the Energy Act 2004 (c.20) are being commenced by the Energy Act 2004 (Commencement No. 10) Order 2010 for the same purposes as section 44(3) of the Act. Section 89 of the Energy Act 2004 inserts definitions in relation to ‘generate’, ‘relevant place’ and ‘system’ into section 4(4) (prohibitions on unlicensed supply etc) of the Electricity Act 1989 and applies the definition of ‘premises’ from section 4 of that Act to section 6 (licences authorising supply etc) of that Act. Section 180(1) of the Energy Act 2004 substitutes new definitions for ‘high voltage line’ and ‘low voltage line’ into section 64(1) (interpretation of Part 1) of the Electricity Act 1989.

Article 2(1)(a) of this Order commences section 44(3) of the Act in relation to certain assets. The assets are those that have been the subject of a tender exercise undertaken in accordance with the offshore tender regulations made under section 6C (competitive tenders for offshore transmission licences) of the Electricity Act 1989, where they have transferred to the successful bidder of that tender exercise and where that bidder did not construct or install them. The effect is that a system for the conveyance of electricity means a system, the whole or part of which is in Great Britain, the territorial sea adjacent to Great Britain or in a Renewable Energy Zone and which consists of such assets. Operation of these assets will require a licence to be granted authorising the participation in transmission of electricity under section 6(1)(b) (licences authorising supply etc) of that Act.

In addition, article 2(1)(b) of this Order commences section 44(3) of the Act in relation to electrical infrastructure located partly in an area of offshore waters that is used to convey electricity generated only otherwise than in an area of offshore waters. The effect is that the operation of such electrical infrastructure will require a licence authorising the participation in transmission (or distribution as the case may be) of electricity under section 6(1)(b) or (c) of the Electricity Act 1989.

This Order also brings into force on 29th July 2010 sections 84 (power to amend Electricity Act 1989 licence conditions etc: transmission systems), 85 (procedure for modification) and 86 (supplemental) of the Act. Section 84 of the Act provides the power for the Secretary of State to amend standard (Electricity Act 1989) licence conditions, conditions of a particular licence, a document maintained in accordance with the conditions of such a licence, or an agreement that gives effect to a document so maintained, for the purpose of facilitating access to, or the efficient use of, a transmission system in Great Britain or offshore waters. Sections 85 and 86 of the Act make supplemental provision for the use of the powers contained in section 84 of the Act.