EXHIBIT 10.3
L/OF/103/2TS
E&W
SECOND-TIER LICENCE TO SUPPLY ELECTRICITY
for
Yorkshire Electricity Group plc
(pound)4.80
L/OF/103/2TS
Uncertified copies of this licence are available
price (pound)4.80 payment with order from:
Library
Office of Electricity Regulation
Hagley House
Hagley Road
Birmingham
B16 8QG
Cheques and postal orders should be made payable to:
Office of Electricity Regulation.
(C) Crown Copyright
2
EXTENSION OF
A SECOND TIER LICENCE TO SUPPLY ELECTRICITY
Whereas on 8 June 1990 the Director General of Electricity Supply, in accordance
with a general authority ("the authority') given by the Secretary of State under
section 6(1) and (2) of the Electricity Act 1989 ("the Act") and in exercise of
the powers conferred by section (6)(2)(a), section 6(6), section 7 and section
10 of the Act granted a licence ("the licence") to Yorkshire Electricity Group
plc ("the licensee") (registered in England under number 2366995) to supply
electricity to the premises specified in Schedule 1 to the licence, subject to
the conditions set out in Part II of the licence and to the terms as to
revocation specified in Schedule 2 to the licence for the period determinable in
accordance with paragraph 3 of Part 1 of the licence.
The Director General of Electricity Supply, in exercise of the powers conferred
by the authority and by section 6(2)(b) of the Act hereby extends the premises
authorised to be supplied by the licensee under the licence by the addition to
the premises specified in the Schedule 1 to the licence of the premises
specified in the Schedule hereto with effect from 14 March 1994.
Dr Eileen Marshall
authorised on behalf of the
Director General of Electricity Supply
11 March 1994
3
SCHEDULE
Specified Premises
All premises other than those which, during the franchise period, have a maximum
demand at or below the franchise limit in the authorised areas of the following
public electricity supply companies together with such premises as may, from
time to time, be specified by the Director (with the approval of the Secretary
of State) for the purposes of paragraph 5 of condition 2 of this licence:
East Midlands Electricity plc
Eastern Electricity plc
London Electricity plc
MANWEB plc
Midlands Electricity plc
Northern Electric plc
NORWEB plc
SEEBOARD plc
Southern Electric plc
South Wales Electricity plc
South Western Electricity plc
(Words and phrases used or defined in Condition 2 shall have the same meaning as
when used in this schedule)
4
REGULATION & BUSINESS AFFAIRS Offer
OFFICE OF
ELECTRICITY
REGULATION
The Company Secretary
Yorkshire Electricity Group plc
Scarcroft
LEEDS
LS14 3HS
MODIFICATION OF LICENCE
Whereas --
(1) Yorkshire Electricity Group plc ("the licensee") has been granted a licence
("the licence") under Section 6 (2) of the Electricity Act 1989 ("the Act")
to supply electricity to premises in England and Wales specified or of a
description specified in the licence subject to the Conditions contained in
the licence;
(2) In accordance with Section 11 (2) of the Act the Director General of
Electricity Supply ("Director") gave notice of his intention to make
modifications to the licence through the insertion of two additional
conditions (13 and 14) by advertising the modifications in the London
Gazette and the Financial Times, requiring any objections or
representations to the modifications to be made to him on or before 25
April 1994;
(3) The Director has considered the representations or objections which were
duly made and not withdrawn;
(4) In accordance with Section 11 (4) of the Act the Director gave notice of
his intention to make the modifications to the Secretary of State and has
not received a direction not to make the modification;
(5) The licensee has given his consent to the modifications, set out in the
Schedule attached which the Director proposed to the licence.
Now in accordance with the powers contained in Section 11 (1) of the Act and
with the consent of the licensee the Director hereby modifies the licence in the
manner specified in the Schedule attached with effect from 2 May 1994.
A J BOORMAN
Authorised on behalf of
The Director General of Electricity Supply 29 April 1994
Hagley House . Hagley Road . Edgbaston . Birmingham B16 8OG .
Telephone: (021)456 2100 Fax: (021)454 9115
5
SCHEDULE
After Condition 12 insert
"Condition 13: Compulsory acquisition of land etc
1. All the powers and rights conferred by or under the provisions of Schedule
3 of the Act (compulsory acquisition of land etc.) shall have effect in
relation to the licensee to the extent that they are required for the
installation, maintenance, removal or replacement of the licensee s system
or any part thereof which are necessary to enable the licensee to supply
electricity to the premises specified in Schedule 1 to this licence.
2. Paragraph 1 shall cease to have effect on 2 May 1997 or such later date as
the Director may from time to time direct.
6
Condition 14: Powers to carry out street works etc.
1. The powers and rights conferred by or under the provisions of Schedule 4 to
the Act (powers to carry out street works etc.) shall have effect and may,
subject to paragraph 2 below, be exercised by carrying out works in
relation to, or in pursuance of, the installation, inspection, maintenance,
adjustment, repair, alteration, replacement and removal of:
(a) electric lines which are necessary to enable the licensee to supply
electricity to premises specified in Schedule 1 below;
(b) electrical plant associated with such lines; and
(c) any structures for housing or covering such lines or plant.
2. Works which are under, over, in, on, along or across any street, which for
the purposes of the Highways Act 1980, constitutes a highway or part of a
highway maintainable at the public expense, may be undertaken in pursuance
of paragraph 1 above subject to the following conditions:
(a) that such works shall not be carried out except with the consent,
which shall not unreasonably be withheld, of the highway authority and
in accordance with such reasonable conditions as may be attached to
such consent;
(b) that any question as to whether or not a consent of highway authority
is unreasonably withheld, or as to the reasonableness of conditions
attached to such consent, shall be determined by a single arbitrator
to be appointed:-
(i) by agreement between the licensee and the highway authority; or
(ii) in default of such agreement, by the Director on the application
of either party.
3. Paragraph 1 shall cease to have effect on 2 May 1997 or such later date as
the Director may from time to time direct."
7
REGULATION & BUSINESS AFFAIRS Offer
OFFICE OF
ELECTRICITY
REGULATION
Mr. P B Morgan
Executive Director of Supplies
Yorkshire Electricity Group plc
Wetherby Road
Scarcroft
Leeds
LS14 3HS
Dear Mr Morgan
MODIFICATION OF LICENCE CONDITION
Whereas --
(1) Yorkshire Electricity Group plc ("the licensee") has been granted a licence
("the licence") under Section 6(2) of the Electricity Act 1989 ("the Act")
to supply electricity to premises in England and Wales specified or of a
description specified in the licence subject to the Conditions contained in
the licence;
(2) In accordance with Section 11 (2) of the Act the Director gave notice of
his intention to make modifications to Condition 2 of the licence by
advertising the modifications in the London Gazette the Edinburgh Gazette
the Financial Times and the Scotsman requiring any objections or
representations to the modifications to be made to him on or before 27
March 1992,
(3) The Director has considered the representations or objections which were
duly made and not withdrawn;
(4) The licensee has given his consent to the modifications, set out in the
Schedule attached which the Director General of Electricity Supply ("the
Director") proposed to Condition 2 of the licence.
Now in accordance with the powers contained in Section 11(1) of the Act and with
the consent of the licensee the Director hereby modifies Condition 2 of the
licence in the manner specified in the Schedule attached with effect from 23rd
April 1992.
Dr Eileen Marshall
Authorised on behalf of
The Director General of Electricity Supply 22 April 1992
Hagley House . Hagley Road . Edgbaston Birmingham B16 8OG .
Telephone (021)4562100 Fax. (02114549115
8
Schedule
Condition 2 of each licence which has been granted under section 6(2)(a) of the
Act (other than the licence granted to London Electricity plc) shall be modified
by the addition of the following two paragraphs after paragraph 7 -
7A. For the purpose of this Condition occupation of any premises by an
affiliate of a person shall be deemed to be occupation by that person.
7B. (1) In this paragraph -
"customer B" means the customer for the time being of the licensee in
respect of premises A;
"permitted quantity" means 10 per cent of the quantity of electricity
supplied by the licensee to customer B in respect of premises A in the
relevant year;
"premises A" means a site or building which, if in the occupation of a
single customer, would be capable of being single premises; and
"relevant year " means the period of 12 months commencing on the date
upon which the licensee starts to supply premises A and (if such
supply is provided for a continuous period exceeding 12 months) each
anniversary of that date until such supply shall cease .
(2) Where during a relevant year -
(i) premises A are occupied by more than one person;
(ii) customer B supplies the other person or persons who are in
occupation of premises A or supplies one or more of such persons
who supply the other occupiers;
(iii) each of the persons referred to in subparagraph (ii) who
provides a supply is exempt by or under an Order under section 5
of the Act from the requirement to hold a licence to supply; and
(iv) customer B does not supply an aggregate quantity of electricity
to such other occupiers in any relevant year which may
reasonably be expected to exceed or actually exceeds the
permitted quantity,
the occupation of premises A by the persons other than customer B shall be
deemed to be occupation by customer B.
(3) The licensee shall, at: the request of the public electricity supplier
in whose authorised area premises A are situated, provide not more
than once in any period of 3 months in a relevant year, evidence to
the supplier that the licensee reasonably believes that the aggregate
quantity of electricity
9
expected to be supplied by customer B during the relevant year will
not exceed the permitted quantity including, where at the date of such
request any such supply has been provided during the relevant year,
evidence as to the quantity so supplied.
(4) Where customer B has supplied a quantity of electricity to such other
occupiers which in aggregate exceeds the permitted quantity, the
licensee shall pay to the public electricity supplier in whose
authorised area premises A are situated a sum calculated by
multiplying the number of units by which the actual supply to such
other occupiers exceeds the permitted quantity by 5 per cent of the
standard tariff price per unit charged by that public electricity
supplier for customers of the type or types of such other occupiers
(but excluding any standing charge or other charge not fixed solely by
reference to the number of units consumed) or in the absence of
agreement as to the appropriate tariff such rate as may be determined
by the Director at the request of the licensee or the public
electricity supplier.
(5) For the purposes of this paragraph there shall be disregarded -
(i) the quantity of electricity supplied by customer B to an
occupier of premises A who has a relevant demand above the
franchise limit;
(ii) the quantity of electricity supplied to customer B equal to the
quantity supplied by customer B in accordance with subparagraph
(i); and
(iii) the occupation by the occupier (other than customer B) referred
to in subparagraph (i).
(6) To the extent that, disregarding sub-paragraph (2), the licensee would
have been permitted to provide a supply to customer B's premises under
this Condition, the provisions of this paragraph shall not apply.
10
offer
OFFICE OF
ELECTRICITY
REGULATION
Company Secretary
Yorkshire Electricity Group plc
Wetherby Road
Scarcroft
Leeds LS14 3HS
24 October 1990
MODIFICATION OF LICENCE CONDITION
Whereas --
(1) On 8 June 1990, Yorkshire Electricity Group plc ("the licensee") was
granted a licence ("the licence") under Section 6(2)(a) of the Electricity
Act 1989 ("the Act") to supply electricity to premises specified or of a
description specified in the licence subject to the Conditions contained in
the licence;
(2) On 10 September 1990 the licensee gave his consent to modifications, ("the
modifications") set out in the .Schedule below which the Director General
of Electricity Supply ("the Director") proposed to Condition 2 of the
licence;
(3) In accordance with Section 11(2) of the Act the Director gave notice of his
intention to make the modifications by advertising the modifications in the
London Gazette the Financial Times and the Scotsman requiring any
objections or representations to the modifications to be made to him on or
before 18 October 1990;
(4) The Director has considered the representations or objections which were
duly made and not withdrawn.
Now in accordance with the powers contained in Section 11(1) of the Act and with
the consent of the licensee the Director hereby modifies Condition 2 of the
licence in the manner specified in the Schedule below with effect on 24 October
1990.
Authorised on behalf of
The Director General of Electricity Supply
Hagley House . Hagley Road . Edgbaston . Birmingham B16 8OG .
Telephone: (021)456 2100 Fax: (021)454 9115
11
Offer
OFFICE OF
ELECTRICITY
REGULATION
The Schedule
Condition 2 of the licence is modified as follows:-
A(l) In the definition of "franchise limit" contained in paragraph 8 of the
Condition -
(a) in sub-paragraphs (a) and (b) the words "a relevant demand in
megawatts taken at any single premises which does not exceed"; and
(b) the words "in each case, having regard to the bases of assessment
referred to in paragraph 2", shall be deleted.
(2) There shall be inserted before the phrase "below the franchise limit" -
(a) in paragraphs 1 and 5 of the Condition the words "at or" ; and
(b) in paragraphs 3 and 4 of the Condition the words "to or".
B(l) By inserting after paragraph 2 of that condition the following paragraph -
(2A) For the purposes of paragraph 2, if any electricity which has been or is to
be supplied by the licensee to any single premises ("premises- A") is or
will be on-supplied by another person from premises A to one or more other
single premises ("premises B") then -.
(a) If the on-supply to premises B from premises A was made on 31 March
1990 by that other person pursuant to an agreement for that other
person to supply premises B which was subsisting on that date that
demand at premises B which is met by such on-supply from premises A
may be regarded as part of the relevant demand in megawatts at
premises A; and
(b) save as provided in sub-paragraph (a) above, that demand at premises B
which is met by such on-supply from premises A shall not be regarded
as part of the relevant demand in megawatts at premises A.
(2) In paragraph 3 of Condition 2 for the words "paragraph 2" there shall be
substituted the words "paragraphs 2 and 2A".
12
Company Secretary
Yorkshire Electricity Group plc
Wetherby Road
Scarcroft
Leeds
LS14 3HS
19 January 1998 OUR REF: LE2394\2562\013
MODIFICATION OF LICENCE
Whereas -
I. Yorkshire Electricity Group plc ('the Licensee') has been granted a licence
('the Licence') under section 6(2) of the Electricity Act 1989 ('the Act')
to supply electricity to premises specified or of a description specified
in Schedule 1 to the Licence subject to the conditions contained in the
Licence.
II. In accordance with section 11(2) of the Act, the Director General of
Electricity Supply ('the Director') gave notice that he proposed to make
modifications to the Conditions of the Licence - to the effect and for the
purposes specified in that notice - by advertising the modifications in the
London Gazette and the Financial Times on 30 September 1997 and requiring
any representations or objections to the modifications to be made to him on
or before 28 October 1997.
III. The Director has considered the representations or objections which were
duly made to him and not withdrawn.
IV. In accordance with section 11(4) of the Act the Director gave notice to
the Secretary of State of his intention to make the modifications and has
not received a direction not to make the modifications.
V. The Licensee has given its consent to the modifications as set out in the
attached Schedule.
Now, in accordance with the powers contained in section 11 (1) of the Act and
with the consent of the Licensee, the Director hereby modifies the Licence in
the manner specified in the attached Schedule with effect on and after 20
January 1998.
AJ BOORMAN 19 January 1998
AUTHORISED ON BEHALF OF THE
- ---------------------------
DIRECTOR GENERAL OF ELECTRICITY SUPPLY
- --------------------------------------
Minor typographical amendments were necessary to Condition 3, 6 and 31 - please
insert as appropriate in Annexes B and F.
MODIFICATIONS TO THE SECOND TIER SUPPLY LICENCE
ISSUED TO YORKSHIRE ELECTRICITY GROUP PLC
SCHEDULE
--------
The following modifications shall apply on and after 20 January 1998.
1. Condition 1 shall be deleted, and new Condition 1 (the terms of which are
set out at Annex A hereto) shall be inserted in its place.
2. Conditions 2, 3 and 3A shall be deleted and new Conditions 2, 3, 4, 5 and 6
(the terms of which are set out in Annex B hereto) shall be inserted in
their place.
3. Conditions 4 and 5 shall be renumbered as Conditions 7 and 8 respectively,
and in those Conditions each occurrence of the word "licensee" shall be
amended to read, in initial upper case, "Licensee".
4. Immediately after the renumbered Condition 8, new Conditions 9 and 10 (the
terms of which are set out at Annex C hereto) shall be inserted.
5. Conditions 6 and 7 shall be renumbered as Conditions 11 and 12, and in
those Conditions any and each occurrence of the words "authorised
electricity operator", "licence" "licensee" and "licensee's system" shall
be amended to read, in initial upper case, "Authorised Electricity
Operator", "Licence", "Licensee" and "Licensee's System", respectively.
6. Condition 8 shall be renumbered as Condition 13, and in that Condition:
(a) any and each occurrence of the words "ceiling price", "generation
security standard", "licensee", "qualifying customer" and "relevant
condition" shall be amended to read, in initial upper case, "Ceiling
Price", "Generation Security Standard", "Licensee", "Qualifying
Customer" and "Relevant Condition", respectively; and
(b) the following definition shall be inserted immediately after the
definition of "Qualifying Customer"
"Retail Price Index" means the general index of retail prices
published by the Office for National Statistics
each month in respect of all items or:
(a) if the index for any month in any year shall
not have been published on or before the
last day of the third month after such
month, such index for such month or months
as the Director may after consultation with
the Licensee determine to be appropriate in
the circumstances; or
(b) if there is a material change in the basis
of the index, such other index as the
Director may after consultation with the
Licensee determine to be appropriate in the
circumstances.
7. Condition 9 shall be renumbered as Condition 14, and in that Condition the
words "licensee" and "licence" shall be amended to read, in initial upper
case, "Licensee" and "Licence", respectively.
8. Condition 10 shall be deleted, and new Conditions 15, 16, 17 and 18 (the
terms of which are set out at Annex D hereto) shall be inserted in its
place.
9. Condition 11 shall be renumbered as Condition 19, and in that Condition:
(a) paragraph 5 shall be renumbered as paragraph 6, and in that paragraph
the words "In paragraphs I to 4" shall be amended to read "In this
Condition";
(b) paragraph 6 shall be renumbered as paragraph 5; and
(c) each occurrence of the word "licensee" shall be amended to read, in
initial upper case, "Licensee".
10. Conditions 12, 13 and 14 shall be deleted and new Conditions 20 to 50 (the
terms of which are set out at Annex E hereto) shall be inserted in their
place.
CONDITION 3. CONTROLLED MARKET START-UP
- ---------------------------------------
1. This Condition applies to those premises which the Licensee would during
the franchise period be prohibited from supplying under the terms of
Condition 2.
2. The Licensee shall not, after the expiry of the franchise period, supply
electricity to any premises to which this Condition applies prior to such
date as is specified in respect of such premises in a direction issued by
the Director under this Condition.
3. A direction under this Condition may specify that different premises may be
supplied from different dates, and for the purposes of this Condition
premises may be specified by reference to:
(a) their location;
(b) whether or not they are Domestic Premises; or
(c) the type of metering equipment installed at the premises,
or any combination of these factors.
4. Prior to making any direction under this Condition, the Director shall:
(a) set out the proposed contents of the direction in a notice (the
"proposals notice");
(b) send the proposals notice to the Licensee, each Relevant Public
Electricity Supplier in respect of premises specified in the notice,
each consumers' committee appointed for an area within which the
premises specified in the notice are situated and any other persons or
bodies appearing to the Director to be representative of those likely
to have an interest; and
(c) consider any representations concerning the proposed contents of the
direction which are made within a reasonable period, being not less
than 7 days from the date of issue of the proposals notice.
5. Any direction issued by the Director under this Condition shall be in
writing and shall be made not less than 28 days prior to the first date
specified in the direction.
6. Where, by virtue of this Condition, the Licensee is prohibited from
supplying any premises, the provisions of Condition 29 shall not apply in
relation to the supply of electricity to those premises.
7. When the Director has issued a direction under this Condition and it
appears to him, having regard to the considerations set out in paragraph 8,
that it would be unreasonable in all the circumstances for the direction to
have effect on the dates specified therein in respect of any or all of
those premises at which it has not yet had effect, then the Director may,
subject to paragraph 9, withdraw or vary the direction in respect of the
premises to be supplied or of the dates from which they may be supplied, or
both.
8. The considerations set out in this paragraph are:
(a) whether the interests of customers in general, and in particular the
interests those occupying the premises specified in the direction,
would be served by the withdrawal or variation of the direction;
(b) whether the interests of any Electricity Supplier, including the
Licensee, would be or would be likely to be unfairly prejudiced by the
withdrawal or variation of the direction, or by a failure to do so;
(c) the content of any representation made to the Director on the issue;
and
(d) such information as is available to the Director concerning:
(i) the manner in which arrangements for the supply of electricity to
any premises to which this Condition applies have operated and
are expected to operate;
(ii) the likely ability of the Licensee to fulfil its obligations
under its Licence with respect to the supply of electricity to
any of the premises concerned; and
(iii) the likely ability of each Relevant Public Electricity Supplier
to comply with the requirements of its public electricity supply
licence in respect of the supply of electricity by the Licensee
to the premises concerned.
9. The Director shall not withdraw or vary a direction in respect of any
premises when the date specified from which supply may commence is less
than 14 days from the date of the withdrawal or variation, unless the
Director has the agreement of the Licensee, or failing that agreement the
agreement of no fewer than two-thirds of the Second Tier Suppliers to whom
a direction applies in respect of the same premises and dates.
10. When the Director withdraws or varies a direction in accordance with
paragraph 7, he shall issue a notice of withdrawal or variation (as the
case may be) and that notice shall have effect.
11. The Director shall publish any direction, or any notice of withdrawal or
variation in such manner as in the opinion of the Director will secure
adequate publicity for it.
12. A direction or a variation or withdrawal of a direction made under this
Condition shall not distinguish between the Licensee and other Second Tier
Suppliers except to the extent that the distinction is appropriate in all
the circumstances given:
(a) the information available to the Director in accordance with sub-
paragraph 8(d)(ii); or
(b) where the Licensee is also a public electricity supplier, any failure
by the Licensee to comply with the requirements of its public
electricity supply licence, or with any agreement entered into in
accordance with any such requirements, which adversely affects the
ability of private electricity suppliers to supply electricity to
customers within its authorised area.
CONDITION 6. CONNECTION AND USE OF SYSTEM - REQUIREMENT TO OFFER TERMS AND
- --------------------------------------------------------------------------
FUNCTIONS OF THE DIRECTOR
- -------------------------
1. Subject to paragraphs 7 and 8, the Licensee shall, on the application of
any person, offer to enter into an agreement with such person for the
provision or modification of a connection to the Licensee's System.
2. Subject to paragraphs 7 and 8, the Licensee shall, on the application of
any Authorised Electricity Operator, offer to enter into an agreement with
such Authorised Electricity Operator for use of system:
(a) to accept into the Licensee's System at such entry point and in such
quantities as may be specified in the application, electricity to be
provided by or for the Authorised Electricity Operator;
(b) to deliver electricity equal in quantity to that accepted into the
Licensee's System (less only any distribution losses) from such exit
points on that system and in such quantities as may be specified in
the application to such person as the Authorised Electricity Operator
may specify; and
(c) containing terms in accordance with paragraphs 4 and 5 and such
further terms as may be appropriate for the purposes of the agreement.
3. The Licensee shall, subject to paragraphs 7 and 8, offer terms for an
agreement in accordance with paragraphs 1 and 2 as soon as practicable and
in any event not more than the period specified in paragraph 9 after
receipt by the Licensee of an application containing all such information
as the Licensee may reasonably require for the purpose of formulating the
terms of its offer.
4. Any offer to enter into an agreement made by the Licensee in accordance
with paragraph 1 or 2 shall make detailed provision regarding:
(a) the carrying out of works (if any) required for the construction or
modification of the entry point to connect the Licensee's System to
the Transmission System or to any Distribution System or in connection
with the construction or modification of any exit points for the
delivery of the
electricity to be distributed in accordance with the agreement, and
for the obtaining of any consents necessary for such purpose;
(b) the carrying out of works (if any) for the provision of electrical
plant or for the extension or reinforcement of the Licensee's System
which are required to be undertaken for the provision or modification
of a connection to the Licensee's System or for use of system and the
obtaining of any consents necessary for such purpose;
(c) the installation of appropriate meters or other apparatus (if any)
required to enable the Licensee to measure electricity being accepted
into the Licensee's system at the specified entry point and leaving
such system at the specified exit points;
(d) the installation of such switchgear or other apparatus (if any) as
may be required for interrupting the use of system should there be a
failure by or for an Authorised Electricity Operator to provide
electricity at its entry point on the Licensee's System for delivery
to the person specified by the Authorised Electricity Operator from
the exit points on such system;
(e) the date by which any works required so as to permit access to the
Licensee's System (including for this purpose any works for its
extension or reinforcement) shall be completed (time being of the
essence unless otherwise agreed by the Authorised Electricity
Operator); and
(f) the charges to be paid by the applicant for the provision of
electrical plant, for connections or modification of connections to,
or the extension or reinforcement of, the Licensee's System, for the
installation of meters, switchgear or other apparatus and the removal
of electrical plant, electric lines and meters following disconnection
and for use of system which shall, unless manifestly inappropriate, be
set in conformity with paragraph 5.
5. The charges referred to in paragraph 4 to be contained in every agreement
which is the subject of an offer by the Licensee shall be such that:
(a) charges for the provision of electrical plant, connection charges,
charges for modification of connections, charges for disconnection
from the Licensee's System and the removal of electrical plant,
electric lines and meters following disconnection or any charges for
extension or reinforcement of the Licensee's System or for use of
system are set at a level which will enable the Licensee to recover no
more than:
(i) the appropriate proportion (taking account of the factors
referred to in paragraph 6) of the costs directly or indirectly
incurred by the Licensee; and
(ii) a reasonable rate of return on the capital represented by such
costs; and
(b) charges for the installation of meters, switchgear or other apparatus
and for their maintenance shall not exceed the costs thereof and a
reasonable rate of return on the capital represented by such costs.
6. For the purpose of determining an appropriate proportion of the costs
directly or indirectly incurred in carrying out works, the Licensee shall
have regard to:
(a) the benefit (if any) to be obtained or likely in the future to be
obtained by the Licensee or any other person as a result of the
carrying out of such works whether by virtue of the provision of
electrical plant, the reinforcement or extension of the Licensee's
System, the provision of additional entry or exit points on such
system or otherwise; and
(b) the ability or likely future ability of the Licensee to recoup a
proportion of such costs from other persons.
7. The Licensee shall not be obliged pursuant to this Condition to offer to
enter into any agreement where, by reason of the capacity of the Licensee's
System and the use made or reasonably expected to be made of it, the
Licensee would be required to expand or reinforce the capacity of the
Licensee's System.
8. The Licensee shall not be obliged pursuant to this Condition to offer to
enter into any agreement if:.
(a) to do so would be likely to involve the Licensee being:
(i) in breach of the Grid Code;
(ii) in breach of any Distribution Code;
(iii) in breach of the Electricity Supply Regulations 1988 or any
regulations made under Section 29 of the Act; or
(iv) in breach of any other enactment relating to safety or standards
applicable to the Licensee's System; or
(b) the person making the application does not undertake to be bound,
insofar as applicable, by the terms of the Distribution Codes or the
Grid Code from time to time in force; or
(c) in the case of an agreement for use of system, the person making the
application ceases to be an Authorised Electricity Operator.
9. For the purpose of paragraph 3, the period specified shall be:
(a) in the case of persons seeking use of system only, 28 days; and
(b) in the case of persons seeking the provision or modification of a
connection or use of system in conjunction with connection, 3 months.
10. The Licensee shall within 28 days following receipt of a request from any
person, give or send to such person such information in the possession of
the Licensee as may be reasonably required by such person for the purpose
of completing paragraph 8 of Part I and paragraphs 2(v) and (vi) of Part 2
of Schedule 2 to The Electricity (Application for Licences and Extensions
of Licences) Regulations 1990 or such provisions to like effect contained
in any further regulations then in force made pursuant to section 6(3) of
the Act.
11. If, after a period which appears to the Director to be reasonable for the
purpose, the Licensee has failed to enter into an agreement with any person
entitled or claiming to be entitled thereto pursuant to an application in
accordance with this Condition, the Director may pursuant to section
7(3)(c) of the Act, on the
application of such person or the Licensee, settle any terms of the
agreement in dispute between the Licensee and that person in such manner as
appears to the Director to be reasonable having (in so far as relevant)
regard, in particular, to the following considerations
(a) that the person should pay to the Licensee the whole or an
appropriate proportion (as determined in accordance with paragraph 6)
of the costs directly or indirectly incurred by the Licensee in the
carrying out of any works or in providing or doing any other thing
under the agreement in question together with a reasonable rate of
return on the capital represented by such costs, to be calculated in
accordance with the principles set out in paragraph 5;
(b) that the performance by the Licensee of its obligations under the
agreement should not cause it to be in breach of any Condition of this
Licence;
(c) that any methods by which the Licensee's System is connected to the
Transmission System or to any Distribution System accords with good
engineering principles and practices; and
(d) that the terms of agreements entered into by the Licensee pursuant to
an application in accordance with this Condition should be, so far as
circumstances allow, as similar in substance and form as is
practicable.
12. If any person wishes to proceed on the basis of an agreement as settled by
the Director, the Licensee shall forthwith enter into and implement such
agreement.
13. If either party to such agreement proposes to vary the contractual terms
of any agreement for the provision or modification of a connection to the
Licensee's System or for use of system entered into pursuant to this
Condition in any manner provided for under such agreement, the Director
may, at the request of that party, settle any dispute relating to such
variation in such manner as appears to the Director to be reasonable.
Condition 31. Provision of services for persons who are of pensionableable or
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disabled or chronically sick
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1. The Licensee shall within two months of serving a Designated Supply Notice
on the Director prepare and submit to the Director for his approval a code
of practice detailing the special services the Licensee will make available
for its Domestic Customers who are of pensionable age or disabled or
chronically sick.
2. The code of practice shall include arrangements by which the Licensee will,
where appropriate:
(a) provide where practicable special controls and adaptors for electrical
appliances and meters (including prepayment meters) and reposition
meters (and shall set out any charges to be made for the provision of
such services);
(b) provide special means of identifying persons acting on behalf of the
Licensee or the Relevant Public Electricity Supplier;
(c) give advice on the use of electricity;
(d) send bills in respect of the supply of electricity to a customer to
any person who is willing to be sent such bills and is nominated by
that customer (without prejudice, however, to the right of the
Licensee to send such bills both to the customer and to the nominated
person where that appears appropriate to the Licensee);
(e) make available (free of charge) to blind and partially sighted
customers, by telephone or other appropriate means, information
concerning the details of any bill relating to the supply of
electricity to them and a facility for enquiring or complaining in
respect of any such bill or any service provided by the Licensee; and
(f) make available (free of charge) to deaf and hearing impaired
customers, being in possession of appropriate equipment, facilities to
assist them in enquiring or complaining about any bill relating to the
supply of electricity to them or any service provided by the Licensee.
3. The code of practice shall further include arrangements whereby the
Licensee will:
(a) take reasonable steps to draw the attention of customers to the
existence of a register of customers who may be expected, by virtue of
being of pensionable age or disabled or chronically sick, to require:
(i) information and advice in respect of the matters set out at
paragraph 2;
or
(ii) advance notice of interruptions to the supply of electricity,
(b) maintain such a register, comprising the relevant details of each
customer who requests his inclusion on it; and
(c) give to those customers so registered:
(i) such information and advice in respect of the matters set
paragraph 2 or in respect of interruptions to the supply of
electricity as may be appropriate and is of such nature as shall
be set out in the code of practice; and
(ii) notice of the existence of another register maintained by the
Relevant Public Electricity Supplier, in relation to such
customers who may be expected to require advance notice of
interruptions to the supply of electricity, on which such
customers may be included.
4. The Licensee shall, with the consent or at the request of any customer
included on the register maintained in accordance with sub-paragraph 3(b),
provide the Relevant Public Electricity Supplier with appropriate details
concerning such customer and his requirements for the purpose of his
inclusion on the equivalent register maintained by the Relevant Public
Electricity Supplier in accordance with the provisions of its public
electricity supply licence.
5. This Condition is subject to the provisions of Condition 36.