Exhibit 4.6
SCHEME MADE PURSUANT TO PARAGRAPHS 13 AND 17 OF SCHEDULE 7 TO THE
UTILITIES ACT 2000 IN RESPECT OF THE PUBLIC ELECTRICITY SUPPLY LICENCE
AND THE OTHER SUPPLY LICENCES OF YORKSHIRE ELECTRICITY GROUP PLC
MADE ON 28 SEPTEMBER 2001
1
CONTENTS
CLAUSE SUBJECT MATTER PAGE
Recitals............................................. 2
1. Interpretation....................................... 3
2. Amendment and treatment of Existing Licences......... 4
3. New Standard Conditions.............................. 4
4. Distribution licensee and Supply licensee............ 4
5. Continuing effect.................................... 5
Annex 1 The Electricity Distribution Licence................. 6
Part I: The Terms of the licence..................... 7
Part II: The Standard Conditions..................... 8
Part III: Amendments to the Standard Conditions...... 9
Part IV: The Special Conditions...................... 10
Schedule 1: Specified Area........................... 51
Schedule 2: Revocation............................... 52
Schedule 3: Distribution Services Area............... 54
Annex 2 The Electricity Supply Licence....................... 55
Part I: The Terms of the licence..................... 56
Part II: The Standard Conditions..................... 57
Part III: Amendments to the Standard Conditions...... 59
Part IV: The Special Conditions...................... 60
Schedule 1: Specified Area........................... 90
Schedule 2: Revocation............................... 93
Schedule 3: supply Services Area..................... 95
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THE SCHEME
Pursuant to paragraphs 13 and 17 of Schedule 7 to the Utilities Act 2000 ("the
2000 Act") and having regard to the transfer scheme described in Recital 5
below, the Secretary of State hereby makes the following Scheme which shall come
into operation on the determination day:
RECITALS
WHEREAS:
1. Immediately prior to the determination day Yorkshire Electricity Group plc
(company registered no. 2366995)(the "Company") holds the following
licences:
1.1 a public electricity supply licence granted on 26 March 1990 pursuant to
section 6(1)(c) of the Electricity Act 1989 (the "PES Licence");
1.2 a supply licence granted on 8 June 1990 pursuant to section 6(2) of the
Electricity Act 1989 in relation to premises in England and Wales (the
"Second Tier Licence"); and
1.3 a supply licence granted on 25 March 1991 pursuant to section 6(2) of the
Electricity Act 1989 in relation to premises in Scotland (the "Second Tier
(Scotland) Licence"),
(together called the "Existing Licences").
2. Paragraph 1 of Schedule 7 to the 2000 Act ("Schedule 7") applies to the
Company as the holder of the PES Licence referred to in Recital 1 above and
each of the Existing Licences is an existing supply licence under section
6(1)(c) or section 6(2) of the Electricity Act 1989 held by a holder to
whom paragraph 1 of Schedule 7 applies.
3. Pursuant to Part I of Schedule 7 the Company has nominated the associates
(as defined in paragraph 12 of Schedule 7) which will hold the licences to
have effect on and after the determination day as a distribution licence
under section 6(1)(c) of the Electricity Act 1989 (the "Electricity
Distribution Licence") and in the case of the other relevant parts of the
PES Licence and the Second Tier Licence and the Second Tier (Scotland)
Licence as a single electricity supply licence under section 6(1)(d) of the
Electricity Act 1989 (the "Electricity Supply Licence").
4. The persons nominated, pursuant to paragraph 2(1)(b) of Schedule 7, are
Npower Yorkshire Supply Limited (the "Electricity Supply licensee") being
an associate of the Company as defined in paragraph 12 of Schedule 7 to
hold the Electricity Supply Licence and Yorkshire Electricity Distribution
plc (the "Electricity Distribution licensee") being an associate of the
Company as defined in paragraph 12 of Schedule 7 to hold the Electricity
Distribution Licence.
5. The Company has made and submitted to the Secretary of State for his
approval a transfer scheme (as defined in paragraph 2(2) of Schedule 7) for
the purpose of dividing the property, rights and liabilities therein
specified between the Company and each of the Electricity Supply licensee
and the Electricity Distribution licensee and for giving effect to other
matters within the provisions of paragraph 2 of Schedule 7.
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6. The Secretary of State has approved the transfer scheme described in
Recital 5 above as provided for in paragraph 5 of Schedule 7.
7. The purpose of this Scheme, which is made by the Secretary of State
pursuant to paragraph 13 of Schedule 7, is to provide for:
7.1 the relevant parts of the PES Licence relating to distribution to be
amended and as so amended to have effect on and after the
determination day as an Electricity Distribution Licence on the terms
of this Scheme held by the Electricity Distribution licensee; and
7.2 the relevant parts of the PES Licence relating to supply and each of
the Second Tier Licence and the Second Tier (Scotland) Licence
together to be amended and as so amended to have effect on and after
the determination day as an Electricity Supply Licence on the terms of
this Scheme held by the Electricity Supply licensee.
1. INTERPRETATION
1.1 In this Scheme unless the context otherwise requires the following
expressions shall bear the meanings ascribed to them below:
"the Authority" means the Gas and Electricity Markets
Authority established pursuant to section 1
of the 2000 Act;
"determination day" means the date on which the standard
conditions of the electricity distribution
licences and electricity supply licences
respectively (determined by the Secretary of
State by virtue of section 33(1) of the 2000
Act) take effect;
"PES Distribution Licence means all the terms and conditions of the PES
Terms and Conditions" Licence relating to the activities of the
holder of a distribution licence (within the
meaning of the Electricity Act 1989); and
"PES Supply Licence Terms means all the terms and conditions of the PES
and Conditions" Licence relating to the activities of the
holder of a supply licence (within the
meaning of the Electricity Act 1989).
1.2 Without prejudice to sections 11 and 23(1) of the Interpretation Act 1978,
this Scheme shall be interpreted and construed in like manner as an Act of
Parliament passed after the commencement of the Interpretation Act 1978.
-3-
1.3 Unless the context otherwise requires, words and expressions used in Part I
of the Electricity Act 1989 (as in force immediately before the
determination day, or as the context requires, as in force from the
determination day) and the 2000 Act shall bear the same meaning in this
Scheme.
2. AMENDMENT AND TREATMENT OF EXISTING LICENCES
On the determination day, the Existing Licences shall be amended so that -
(a) the PES Distribution Licence Terms and Conditions as amended by this Scheme
shall take effect as an electricity distribution licence in the form set
out in Annex 1 hereto and as if such licence had been granted by the
Authority under section 6(1)(c) of the Electricity Act 1989; and
(b) the PES Supply Licence Terms and Conditions, the Second Tier Licence and
the Second Tier (Scotland) Licence in each case as amended by this Scheme,
shall take effect as a single electricity supply licence in the form set
out in Annex 2 hereto and as if such licence had been granted by the
Authority under section 6(1)(d) of the Electricity Act 1989.
3. NEW STANDARD CONDITIONS
3.1 Each condition of the standard conditions determined and published by the
Secretary of State under section 33(1) of the 2000 Act as standard
conditions for the purposes of electricity distribution licences under
section 6(1)(c) of the Electricity Act 1989 shall on the determination day
be incorporated in Part II of the Electricity Distribution Licence in
substitution for all the licence conditions in the PES Distribution Licence
Terms and Conditions excluding those licence conditions which are saved, as
amended, as special conditions in Part IV of the Electricity Distribution
Licence.
3.2 Each condition of the standard conditions determined and published by the
Secretary of State under section 33(1) of the 2000 Act as standard
conditions for the purposes of electricity supply licences under section
6(1)(d) of the Electricity Act 1989 shall on the determination day be
incorporated in Part II of the Electricity Supply Licence in substitution
for:
(a) all the licence conditions in the PES Supply Licence Terms and
Conditions;
(b) all the licence conditions in the Second Tier Licence; and
(c) all the licence conditions in the Second Tier (Scotland) Licence,
in each case excluding those licence conditions which are saved, as
amended, as special conditions in Part IV of the Electricity Supply
Licence.
4. DISTRIBUTION LICENSEE AND SUPPLY LICENSEE
4.1 The Scheme shall take effect as a scheme made under paragraph 13 of
Schedule 7 and on the basis that the Electricity Distribution Licence
and the Electricity Supply Licence shall by virtue of this Scheme as
from the determination day be held respectively by the Electricity
Distribution licensee and by the Electricity Supply licensee.
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5. CONTINUING EFFECT
5.1 In so far as permitted by or in pursuance of the relevant set of new
standard conditions and the special conditions set out in Part IV of the
Electricity Supply Licence, or as the case may be, the Electricity
Distribution Licence, anything done under or by virtue of the Existing
Licences which is in effect immediately before the determination day shall
have continuing effect as if it were done under or by virtue of -
(a) the Electricity Supply Licence,
(b) the Electricity Distribution Licence, or
(c) both those licences,
according to the nature of activities to which the thing done relates.
5.2 In so far as permitted by or in pursuance of the relevant set of new
standard conditions and the special conditions set out in Part IV of the
Electricity Supply Licence, or as the case may be, the Electricity
Distribution Licence, and without prejudice to the generality of sub-clause
5.1 above,
(a) every statement, code or other document prepared pursuant to an
obligation in the Existing Licences; and
(b) every direction, consent, determination or other instrument given by
the Authority under the Existing Licences,
which is in effect immediately prior to the determination day shall have
continuing effect as if prepared or given pursuant to -
(i) the Electricity Supply Licence,
(ii) the Electricity Distribution Licence, or
(iii) both those licences,
according to the nature of the activities to which the instrument relates.
5.3 Any dispute arising as to the allocation of a particular thing, document or
instrument to the Electricity Supply Licence or Electricity Distribution
Licence pursuant to sub-clauses 5.1 or 5.2 may be referred by the
Authority, the Electricity Distribution licensee or, as the case may be,
the Electricity Supply licensee to an independent expert appointed by the
Authority.
On this the 28th day of September 2001
..................................................................
An official of the Department of Trade and Industry
authorised to act on behalf of the Secretary of State.
-5-
ANNEX 1
ELECTRICITY ACT 1989
SECTION 6(1)(C)
ELECTRICITY DISTRIBUTION LICENCE
FOR
YORKSHIRE ELECTRICITY DISTRIBUTION PLC
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PART I - TERMS OF THE LICENCE
1. This licence, treated as granted under section 6(1)(c) of the Electricity
Act 1989 ("the Act"), authorises Yorkshire Electricity Distribution plc (a
company registered in England and Wales under number 4112320) ("the
licensee") whose registered office is situated at Carliol House, Market
Street, Newcastle Upon Tyne, NE1 6NE, to distribute electricity for the
purpose of giving a supply to any premises in the specified area in
Schedule 1 or enabling a supply to be so given during the period specified
in paragraph 3 below, subject to:
(a) the standard conditions of electricity distribution licences referred
to in Part II below, which shall have effect in the licence subject to
such amendments (if any) as are set out in Part III below (together
"the conditions");
(b) the special conditions, if any, set out in Part IV below ("the special
conditions");
(c) such Schedules hereto, if any, as may be referenced in the conditions,
the special conditions or the terms of the licence.
2. This licence is subject to transfer, modification or amendment in
accordance with the provisions of the Act, the special conditions or the
conditions.
3. This licence, unless revoked in accordance with the terms of Schedule 2,
shall continue until determined by not less than 25 years' notice in
writing given by the Authority to the licensee.
4. The provisions of section 109(1) of the Act (Service of documents) shall
have effect as if set out herein and as if for the words "this Act" there
were substituted the words "this licence".
5. Without prejudice to sections 11 and 23(1) of the Interpretation Act 1978,
Parts I to IV inclusive of, and the Schedules to, this licence shall be
interpreted and construed in like manner as an Act of Parliament passed
after the commencement of the Interpretation Act 1978.
6. References in this licence to a provision of any enactment, where after the
date of this licence -
(a) the enactment has been replaced or supplemented by another enactment,
and
(b) such enactment incorporates a corresponding provision in relation to
fundamentally the same subject matter,
shall be construed, so far as the context permits, as including a reference
to the corresponding provision of that other enactment.
7. Pursuant to paragraph 5 of standard condition 2 (Application of Section C
(Distribution Services Obligations)) of the Electricity Distribution
Licence the "distribution services area" is specified in Schedule 3 hereto.
Pursuant to a licensing scheme made by the Secretary of State under Part II of
Schedule 7 to the Utilities Act 2000 on 28 September 2001 this licence was made
and is treated as granted under section 6(1)(c) of the Electricity Act 1989.
-7-
PART II - THE STANDARD CONDITIONS
STANDARD CONDITIONS IN EFFECT IN THIS LICENCE
SECTION A SECTION B SECTION C
Standard condition 1 Standard condition 4 Standard condition 32
Standard condition 2 Standard condition 4A Standard condition 32A
Standard condition 3 Standard condition 4B Standard condition 34
Standard condition 4C Standard condition 35
Standard condition 5 Standard condition 36
Standard condition 6 Standard condition 36A
Standard condition 7 Standard condition 36B
Standard condition 8 Standard condition 36C
Standard condition 9 Standard condition 37
Standard condition 9A Standard condition 38
Standard condition 10 Standard condition 39
Standard condition 11 Standard condition 40
Standard condition 12 Standard condition 41
Standard condition 12A Standard condition 42
Standard condition 13 Standard condition 42A
Standard condition 14 Standard condition 43
Standard condition 15 Standard condition 44
Standard condition 16 Standard condition 45
Standard condition 17 Standard condition 46
Standard condition 18 Standard condition 47
Standard condition 19 Standard condition 48
Standard condition 20 Standard condition 49
Standard condition 21
Standard condition 22
Standard condition 23
Standard condition 24
Standard condition 25
Standard condition 26
Standard condition 29
Note: A copy of the current standard conditions of electricity distribution
licences can be inspected at the principal office of the Authority. The above
list is correct at the date of this licence but may be changed by subsequent
amendments or modifications to the licence. The authoritative up-to-date version
of this licence is available for public inspection at the principal office of
the Authority.
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PART III - AMENDMENTS TO THE STANDARD CONDITIONS
There are no amendments to the standard conditions of electricity distribution
licences.
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PART IV - SPECIAL CONDITIONS
SPECIAL CONDITION A: DEFINITIONS AND INTERPRETATION
- ----------------------------------------------------
1. Unless the context otherwise requires, words and expressions used in the
standard conditions of this licence shall bear the same meaning in these
Special Conditions.
2. Special Conditions B to F and Schedule A to those Conditions shall only
apply to the distribution services area (as defined in standard condition 1
(Definitions and Interpretation)) of the licensee.
3. In Special Conditions B to F and Schedule A to those Conditions:
"attributed"
means when used in relation to transmission connection point
charges or remote transmission asset rentals or distribution
losses, attributed in accordance with the principles set out
in Part A of Schedule A and attribute, attributed,
attributable and attribution shall be construed accordingly.
"average charge per
unit distributed"
means the distribution revenue in the relevant year divided
by the regulated quantity distributed in that year.
"average specified rate"
means the average of the daily base rates of Barclays Bank
plc current from time to time during the period in respect
of which the calculation falls to be made.
"charge restriction
conditions"
means Special Conditions A to F inclusive together with
Schedule A to this licence, as from time to time modified or
replaced in accordance with the provisions of the Act.
"distribution losses"
means units unaccounted for on the licensee's distribution
system, measured as being the difference between the units
metered on entry into the system and the units metered on
leaving the system.
"distribution revenue"
means the revenue (measured on an accruals basis) derived by
the licensee from the provision of distribution services in
the relevant year, after deduction of:
(i) an amount equal to such part of the total amount
payable in that relevant year to the transmission
company (measured on an accruals basis) in respect of
transmission connection point charges and remote
transmission asset rentals and which would otherwise be
included in distribution revenue by reason of being
recovered in that relevant year by the licensee in its
use of system charges, as falls to be attributed to the
regulated quantity distributed in that relevant year;
and
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(ii) value added tax (if any) and any other taxes based
directly on the amounts so derived.
"distribution
services"
means all services provided by the licensee as part of its
distribution business other than excluded services.
"EHV premises"
means those premises to which units are delivered by the
licensee which fall to be treated as EHV premises in
accordance with Part B of Schedule A.
"EHV units"
means units distributed by the licensee which are delivered
or deemed to be delivered to EHV premises.
"eleventh relevant
year"
means the relevant year commencing 1st April 2000.
"excluded services"
means those services provided by the licensee which in
accordance with the principles set out in Part C of Schedule
A fall to be treated as excluded services.
"HV units"
means units (other than EHV units) distributed by the
licensee which are delivered to premises connected to the
licensee's distribution system at a voltage at or higher
than 1000 volts.
"LV units"
means units distributed by the licensee which are delivered
to premises connected to the licensee's distribution system
at a voltage less than 1000 volts.
"LV1 units"
means LV units which are distributed by the licensee outside
night-time periods to domestic premises or small premises
(other than domestic premises) where the appropriate use of
system charges apply different rates in night-time periods
as opposed to other times of day, for the avoidance of doubt
including the use of system charges under the tariffs
specified in paragraph D2 of Part D of Schedule A.
"LV2 units"
means LV units which are distributed by the licensee to
domestic premises or small premises (other than domestic
premises):
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(a) during night-time periods, where the appropriate use of
system charges apply different rates in night-time
periods as opposed to other times of the day; or
(b) where the appropriate use of system charges are
incorporated into tariffs which restrict availability
of supply to specified off-peak periods,
for the avoidance of doubt including the use of system
charges under the tariffs specified in paragraph D3 of Part
D of Schedule A.
"LV3 units"
means LV units other than LV1 and LV2 units, for the
avoidance of doubt including units distributed under the
tariffs specified in paragraph D4 of Part D of Schedule A.
"maximum average charge
per unit distributed"
means the charge calculated in accordance with the formula
in paragraph 1 of Special Condition B (Restriction of
distribution charges).
"metered"
means, in relation to any quantity distributed, as measured
by a meter installed for such purpose or (where no such
meter is installed or it is not reasonably practicable to
measure the quantity by such meter) as otherwise reasonably
calculated.
"regulated distribution
unit category"
means as the case may be HV units or LV1 units or LV2 units
or LV3 units.
"regulated quantity
distributed"
means the aggregate quantity of units distributed (for any
person under use of system) by the licensee through the
licensee's distribution system in relevant year t
metered at exit points on leaving the licensee's
distribution system but excluding for this purpose:
(a) Units distributed for the purpose of supply to premises
outside the licensee's distribution services area; and
(b) EHV units.
"relevant year"
means a financial year commencing on or after 1st April
1990.
"relevant year t"
means that relevant year for the purposes of which any
calculation falls to be made; "relevant year t-1" means the
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relevant year preceding relevant year t or, in respect of
the period prior to 1st April 1990, the period of 12
calendar months commencing on 1st April 1989; and similar
expressions shall be construed accordingly.
"remote transmission
asset rental"
means any rent or other periodic payment payable by the
distribution business of the licensee to the transmission
company in respect of remote transmission assets forming
part of the licensee's distribution system.
"transmission connection
point charges"
means charges levied by the transmission company as
connection charges by direct reference to the number or
nature of the connections between the licensee's
distribution system and the transmission system and payable
by the distribution business of the licensee.
"unit"
means a kilowatt hour.
3. Any reference in these Special Conditions to -
(a) a provision thereof;
(b) a provision of the standard conditions of electricity distribution
licences;
(c) a provision of the standard conditions of electricity supply licences;
(d) a provision of the standard conditions of electricity generation
licences;
(e) a provision of the standard conditions of electricity transmission
licences;
shall, if these or the standard conditions in question come to be modified,
be construed, so far as the context permits, as a reference to the
corresponding provision of these or the standard conditions in question as
modified.
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SPECIAL CONDITION B: RESTRICTION OF DISTRIBUTION CHARGES
- --------------------------------------------------------
Basic Formula
- -------------
1. Without prejudice to Special Condition E (Allowance in respect of security
costs), the licensee shall in setting its charges for the provision of
distribution services use its best endeavours to ensure that in any
relevant year the average charge per unit distributed shall not exceed the
maximum average charge per unit distributed calculated in accordance with
the following formula:
Mdt = Pdt + PNdt - PMdt - Kdt
2. For the purposes of paragraph 1, Mdt means the maximum average charge per
unit distributed in relevant year t.
Formula for Pdt as used in paragraph 1
- --------------------------------------
3. For the purposes of paragraph 1, Pdt is derived from the following formula:
Pdt = (PUM x GRt x PIDt) + (PL x (ALt-Lt) x PILt)
-------------------------------------------
Dt
where:
PUM means the amount set against that term in the part of Annex A
to this Condition that applies to the licensee.
GRt in the eleventh relevant year has the value of 1 and in each
subsequent relevant year is derived from the following formula:
the sum of Poi x Dit Cdt
GRt = 0.5 ( ------------------------ + ----- ) GRt-1
the sum of Poi x Dit-1 Cdt-1
where
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sum of (sign)
means the summation across all regulated distribution unit
categories i as described in the definition of the term Poi.
Poi
means, in respect of each regulated distribution unit
category i set out in column 1 under that term in the part
of Annex A to this Condition which applies to the licensee,
the value opposite that category in column 2.
Dit
means that number of units in each regulated distribution
unit category i distributed in relevant year t.
Dit-1
means that number of units in each regulated distribution
unit category i distributed in relevant year t-1.
Cdt
means a notional figure, representing the number of
customers in the distribution services area (for the purpose
of this term Cdt only) for each relevant year, given in the
table appearing under that term in the part of Annex A to
this Condition that applies to the licensee.
Cdt-1
means the number equal to Cdt in relevant year t-1.
PIDt
in the eleventh relevant year has the value of 1 and in each
subsequent relevant year is derived from the following
formula:
RPIt - Xdt
PIDt = (1 + ---------- ) PIDt-1
100
where
RPIt
means the percentage change (whether of a positive or a
negative value) in the arithmetic average of the Retail
Price Index numbers published or determined with respect to
each of the six months July to December (inclusive) in
relevant year t-1 and the arithmetic average of the Retail
Price Index numbers published or determined with respect to
the same months in relevant year t-2.
Xdt
shall equal 3.
PL
means an amount equal to 2.9p.
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ALt
means an amount (in units) representing allowed distribution
losses in relevant year t, being the allowed percentage of
the adjusted units distributed (calculated as provided in
paragraph E5 of Part E of Schedule A) where, in respect of
each relevant year t, the allowed percentage shall equal
that percentage which the aggregate of adjusted distribution
losses (calculated as provided in paragraphs E2 to E5 of
Part E of Schedule A) over the 10 preceding relevant years
bears to the aggregate of adjusted units distributed
(calculated as aforesaid) over the corresponding relevant
years.
Lt
means in respect of relevant year t, adjusted grid supply
point purchases less adjusted units distributed (calculated
as provided in paragraphs E2 to E5 of Part E of Schedule A).
PILt
is derived from the following formula:
RPIt
PILt = (1 + ---- ) PILt-1
100
where, for the eleventh relevant year, PILt-1 equals 1.
Dt
means the regulated quantity distributed in relevant year t.
Formula for PNdt as used in paragraph 1
- ---------------------------------------
4. For the purposes of Paragraph 1, in the eleventh and subsequent relevant
years the term PNdt shall be calculated in accordance with the following
formula:
(PS + PR) PIRt
PNdt = --------------
Dt
where:
PS
means an amount equal to (pound)3.25 million for each of the
eleventh to the fifteenth relevant years, and thereafter
shall be 0.
PR
means, in the eleventh and all subsequent relevant years,
the amount given against the licensee's name in Annex B to
this Condition.
PIRt
is derived from the following formula:
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RPIt
PIRt = (1 + -----) PIRt-1
100
where for the ninth relevant year PIRt-1 equals 1
Formula for PMdt as used in Paragraph 1
- ---------------------------------------
5. For the purposes of paragraph 1, PMdt is derived from the following
formula:
RMdt
PMdt = -----
Dt
where:
RMdt
means an amount equal to the licensee's relevant reduction
in costs in relevant year t, resulting from the fact that
the licensee has ceased to provide meter provision services
and meter operation services (as defined in paragraph 1 of
standard condition 36B (Requirement to Offer Terms for the
Provision of Distributor Metering and Data Services)) in
respect of customers in respect of whom it provided meter
provision services and meter operation services at 31 March
2000. The licensee's relevant reduction in costs shall be
calculated in real terms, and shall be the amount, if any,
by which the licensee's cash operating costs (excluding
costs of a non-recurring nature) of providing such services
in the relevant year t fall short of its cash operating
costs (excluding costs of a non-recurring nature) of
providing such services in the tenth relevant year, to the
extent that such shortfall is attributable to the fact that
the licensee has ceased, since 31 March 2000, to provide
(whether directly or through an agent acting on its behalf)
meter provision services and meter operation services in
respect of such customers. The licensee's relevant reduction
in costs shall exclude the amount of any reduction in costs
in providing any services which constitute excluded
services.
Formula for Kdt as used in Paragraph 1
- --------------------------------------
6. For the purposes of paragraph 1, Kdt means the correction factor per unit
(whether of a positive or a negative value) derived, subject to paragraph 3
of Special Condition C (Restriction of distribution charges: adjustments),
from the following formula: provided that the value of Kdt for the eleventh
relevant year shall be the value of Kdt arising for that year from the
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application of the formula applicable under Licence Condition 3A of the
Public Electricity Supply licence previously granted to Yorkshire
Electricity Group plc in the form of that condition in force on 31 March
2000, but adjusted by adding the amount of TAdt for the tenth relevant
year, calculated by the application of the formula applicable under Licence
Condition 3A of that Public Electricity Supply licence as then in force:
Rdt-1 - (Dt-1 x Mdt-1) Idt
Kdt = ---------------------- (1 + ---)
Dt 100
where:
Rdt-1
means the distribution revenue in relevant year t-1.
Dt-1
means the regulated quantity distributed in relevant year
t-1.
Mdt-1
means maximum average charge per unit distributed in
relevant year t-1.
Idt
means that interest rate in relevant year t which is equal
to, where Kdt (taking no account of Idt for this purpose)
has a positive value, the average specified rate plus 4, or
where Kdt (taking no account of Idt for this purpose) has a
negative value, the average specified rate.
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ANNEX A TO SPECIAL CONDITION B (RESTRICTION OF DISTRIBUTION CHARGES)
- --------------------------------------------------------------------
EASTERN ELECTRICITY LIMITED
(pound)m
--------
PUM 287.9
Cdt for relevant year beginning on
'000s
-----
1 April 2000 3249
1 April 2001 3281
1 April 2002 3314
1 April 2003 3347
1 April 2004 3381
every subsequent relevant year 3415
P0i
Column 1 Column 2
unit category i value (p)
--------------- ---------
LV1 2.0009
LV2 0.3031
LV3 1.3431
HV 0.4584
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EAST MIDLANDS ELECTRICITY DISTRIBUTION PLC
(pound)m
--------
PUM 240.3
Cdt for relevant year beginning on
'000s
-----
1 April 2000 2376
1 April 2001 2400
1 April 2002 2424
1 April 2003 2448
1 April 2004 2472
every subsequent relevant year 2497
P0i
Column 1 Column 2
unit category i value (p)
--------------- ---------
LV1 1.6131
LV2 0.5557
LV3 1.5711
HV 0.6350
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LONDON POWER NETWORKS PLC
(pound)m
--------
PUM 220.8
Cdt for relevant year beginning on
'000s
-----
1 April 2000 2072
1 April 2001 2093
1 April 2002 2114
1 April 2003 2135
1 April 2004 2156
every subsequent relevant year 2178
P0i
Column 1 Column 2
unit category i value (p)
--------------- ---------
LV1 2.2073
LV2 0.4057
LV3 1.5912
HV 0.5932
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MANWEB PLC
(pound)m
--------
PUM 158.0
Cdt for relevant year beginning on
'000s
-----
1 April 2000 1423
1 April 2001 1437
1 April 2002 1452
1 April 2003 1466
1 April 2004 1481
every subsequent relevant year 1496
P0i
Column 1 Column 2
unit category i value (p)
--------------- ---------
LV1 2.1041
LV2 0.4323
LV3 1.7558
HV 0.5097
-22-
GPU POWER NETWORKS (UK) PLC
(pound)m
--------
PUM 243.5
Cdt for relevant year beginning on
'000s
-----
1 April 2000 2303
1 April 2001 2326
1 April 2002 2349
1 April 2003 2373
1 April 2004 2397
every subsequent relevant year 2420
P0i
Column 1 Column 2
unit category i value (p)
--------------- ---------
LV1 1.9729
LV2 0.3966
LV3 1.6108
HV 0.5992
-23-
NORTHERN ELECTRIC DISTRIBUTION LIMITED
(pound)m
--------
PUM 152.6
Cdt for relevant year beginning on
'000s
-----
1 April 2000 1500
1 April 2001 1515
1 April 2002 1530
1 April 2003 1545
1 April 2004 1561
every subsequent relevant year 1577
P0i
Column 1 Column 2
unit category i value (p)
--------------- ---------
LV1 2.0911
LV2 0.3273
LV3 1.9284
HV 0.4723
-24-
NORWEB PLC
(pound)m
--------
PUM 208.9
Cdt for relevant year beginning on
'000s
-----
1 April 2000 2250
1 April 2001 2272
1 April 2002 2295
1 April 2003 2318
1 April 2004 2341
every subsequent relevant year 2365
P0i
Column 1 Column 2
unit category i value (p)
--------------- ---------
LV1 2.1750
LV2 0.2821
LV3 1.6304
HV 0.5335
-25-
SEEBOARD POWER NETWORKS PLC
(pound)m
--------
PUM 159.1
Cdt for relevant year beginning on
'000s
-----
1 April 2000 2153
1 April 2001 2175
1 April 2002 2196
1 April 2003 2218
1 April 2004 2240
every subsequent relevant year 2263
P0i
Column 1 Column 2
unit category i value (p)
--------------- ---------
LV1 1.8735
LV2 0.3213
LV3 1.4098
HV 0.5892
-26-
SOUTHERN ELECTRIC POWER DISTRIBUTION PLC
(pound)m
--------
PUM 297.7
Cdt for relevant year beginning on
'000s
-----
1 April 2000 2728
1 April 2001 2755
1 April 2002 2783
1 April 2003 2811
1 April 2004 2839
every subsequent relevant year 2867
P0i
Column 1 Column 2
unit category i value (p)
--------------- ---------
LV1 2.0600
LV2 0.3816
LV3 1.4815
HV 0.5560
-27-
WESTERN POWER DISTRIBUTION (SOUTH WALES) PLC
(pound)m
--------
PUM 125.6
Cdt for relevant year beginning on
'000s
-----
1 April 2000 998
1 April 2001 1008
1 April 2002 1018
1 April 2003 1028
1 April 2004 1039
every subsequent relevant year 1049
P0i
Column 1 Column 2
unit category i value (p)
--------------- ---------
LV1 2.4442
LV2 0.3641
LV3 2.2009
HV 0.7272
-28-
WESTERN POWER DISTRIBUTION (SOUTH WEST) PLC
(pound)m
--------
PUM 171.0
Cdt for relevant year beginning on
'000s
-----
1 April 2000 1369
1 April 2001 1383
1 April 2002 1397
1 April 2003 1410
1 April 2004 1425
every subsequent relevant year 1439
P0i
Column 1 Column 2
unit category i value (p)
--------------- ---------
LV1 2.3889
LV2 0.6679
LV3 1.8707
HV 0.5072
-29-
YORKSHIRE ELECTRICITY DISTRIBUTION PLC
(pound)m
--------
PUM 215.4
Cdt for relevant year beginning on
'000s
-----
1 April 2000 2129
1 April 2001 2150
1 April 2002 2172
1 April 2003 2194
1 April 2004 2215
every subsequent relevant year 2238
P0i
Column 1 Column 2
unit category i value (p)
--------------- ---------
LV1 1.9497
LV2 0.3271
LV3 1.6654
HV 0.5750
-30-
ANNEX B TO SPECIAL CONDITION B (RESTRICTION OF DISTRIBUTION CHARGES)
- --------------------------------------------------------------------
PR(pound)M
----------
EASTERN ELECTRICITY LIMITED 2.97
EAST MIDLANDS ELECTRICITY DISTRIBUTION PLC 2.35
GPU POWER NETWORKS (UK) PLC 2.34
LONDON POWER NETWORKS PLC 2.14
MANWEB PLC 1.69
NORTHERN ELECTRIC DISTRIBUTION LIMITED 1.76
NORWEB PLC 2.28
SCOTTISH HYDRO-ELECTRIC POWER DISTRIBUTION POWER 1.16
LIMITED
SP DISTRIBUTION LIMITED 2.01
SEEBOARD POWER NETWORKS PLC 2.15
SOUTHERN ELECTRIC POWER DISTRIBUTION PLC 2.64
WESTERN POWER DISTRIBUTION (SOUTH WALES) PLC 1.38
WESTERN POWER DISTRIBUTION (SOUTH WEST) PLC 1.65
YORKSHIRE ELECTRICITY DISTRIBUTION PLC 2.19
-31-
SPECIAL CONDITION C: RESTRICTION OF DISTRIBUTION CHARGES: ADJUSTMENTS
---------------------------------------------------------------------
1. If, in respect of any relevant year, the average charge per unit
distributed exceeds the maximum average charge per unit distributed by more
than 3 per cent, the licensee shall furnish an explanation to the Authority
and in the next following relevant year the licensee shall not effect any
increase in charges unless it has demonstrated to the reasonable
satisfaction of the Authority that the average charge per unit distributed
would not be likely to exceed the maximum charge per unit distributed in
that next following relevant year.
2. If, in respect of any two successive relevant years, the sum of the amounts
by which the average charge per unit distributed has exceeded the maximum
average charge per unit distributed is more than 4 per cent, then in the
next following relevant year the licensee shall, if required by the
Authority, adjust its charges such that the average charge per unit
distributed would not be likely, in the judgement of the Authority, to
exceed the maximum average charge per unit in that next following relevant
year.
3. If, in respect of two successive relevant years, the average charge per
unit distributed is less than 90 per cent of the maximum average charge per
unit distributed, the Authority, after consultation with the licensee, may
direct that in calculating Kdt for the purposes of paragraph 6 of Special
Condition B (Restriction of distribution charges) in respect of the next
following relevant year, there shall be substituted for Rdt-1 in the
formula at paragraph 6 of Special Condition B (Restriction of distribution
charges) such figure as the Authority may specify being not less than Rdt-1
and not more than 0.90 (Dt-1.Mdt-1).
-32-
SPECIAL CONDITION D: INFORMATION TO BE PROVIDED TO THE AUTHORITY IN CONNECTION
- --------------------------------------------------------------------------------
WITH THE CHARGE RESTRICTION CONDITIONS
- ---------------------------------------
1. Where the licensee is intending to make any change in charges for the
provision of distribution services regulated under Special Condition B
(Restriction of distribution charges) the licensee shall (unless otherwise
agreed by the Authority) not later than the date of publication of such
charges provide the Authority with:
(a) written forecast of the maximum average charge per unit distributed,
together with its components, in respect of the relevant year t in
which such a change is to take effect and in respect of the next
following relevant year t+1; and
(b) a written estimate of the maximum average charge per unit distributed,
together with its components, in respect of the relevant year t-1
immediately preceding the relevant year in which the change is to take
effect unless a statement complying with paragraph 7 in respect of
relevant year t-1 has been furnished to the Authority before the
publication of the proposed change.
2. [No longer used]
3. If within three months of the commencement of any relevant year t the
licensee has not made any such change in charges as is referred to in
paragraph 1, the licensee shall provide the Authority with a written
forecast of the maximum average charge per unit distributed, together with
its components, in respect of the relevant year t.
4. The Authority may issue directions providing that any forecast or estimate
provided in accordance with paragraphs 1 or 3 shall be accompanied by such
information as regards the assumptions underlying the forecast or estimate
as may be necessary to enable the Authority to be satisfied that the
forecast or estimate has been properly prepared on a consistent basis.
5. Not later than six weeks after the commencement of each relevant year t,
the licensee shall send to the Authority a statement as to:
(a) whether or not the provisions of Special Condition C (Restriction of
distribution charges: adjustments) are likely to be applicable in
consequence of the average charge per unit distributed in the
preceding relevant year t-1 or the two preceding relevant years t-1
and t-2; and
(b) its best estimate as to the relevant correction factor Kdt to be
applied in calculating the maximum average charge per unit distributed
in respect of the relevant year t.
6. [No longer used]
-33-
7. Not later than three months after the end of a relevant year the licensee
shall send to the Authority a statement, in respect of that relevant year,
showing the specified items referred to in paragraph 9.
8. The statement referred to in the preceding paragraph shall be:
(a) accompanied by a report from the Auditors that in their opinion (i)
such statement fairly presents each of the specified items referred to
in paragraph 9 in accordance with the requirements of the charge
restriction conditions and (ii) the amounts shown in respect of each
of those specified items are in accordance with the licensee's
accounting records which have been maintained in respect of the
distribution business in accordance with standard condition 42
(Regulatory Accounts) of this licence; and
(b) certified by a director of the licensee on behalf of the licensee that
to the best of his knowledge, information and belief having made all
reasonable enquiries:
(i) there is no amount included in its calculations under Special
Condition B (Restriction of distribution charges) and Schedule A which
represents other than:
(aa) bona fide consideration for the provision of distribution
services in the course of its distribution business; or
(bb) an amount permitted under the charge restriction conditions to be
so included;
(ii) there is no amount included in its calculations of allowed security
costs under Special Condition E (Allowance in respect of security
costs) which represents other than an amount permitted under the
charge restriction conditions to be so included;
(iii)no service has been treated as an excluded service which was not
properly so treated and no amount included in the revenues in respect
thereof represents other than bona fide consideration for the
provision of the excluded service to which it relates;
(iv) all amounts which should properly be taken into account for the
purposes of the charge restriction conditions have been taken into
account.
9. The specified items to be contained in the statement referred to in
paragraph 7 shall be the following:
(a) the regulated quantity distributed;
(b) the quantity distributed in each regulated distribution unit category;
(c) the average charge per unit distributed;
-34-
(d) the amount in respect of the Terms ALt and Lt, in paragraph 3 of
Special Condition B (Restriction of distribution charges) calculated
as therein provided;
(e) the value of the term TAdt in respect of the tenth relevant year only,
together with the value of each of its component parts, as detailed in
paragraph 4 of Special Condition B (Restriction of distribution
charges) in the form of the licence in force on 31 March 2000";
(f) the information referred to at paragraph 8 of Special Condition E
(Allowance in respect of security costs);
(g) the statements and information referred to in paragraphs A5, B2, C7,
D1 and E10 of Schedule A.
10. Where the Authority issues directions in accordance with paragraph 9 of
Special Condition E (Allowance in respect of security costs) or paragraphs
A6, B3, C8, D5 or E11 of Schedule A then such directions shall not have
effect from a date earlier than the commencement of the relevant year to
which the statement last furnished to the Authority pursuant to paragraph 7
prior to the issue of the directions related, unless such statement (or the
accompanying report or certificate under paragraph 8) or any statement,
report or certificate in respect of an earlier relevant year was incorrect
or was misleading in any material respect.
11. Where the Authority issues such directions as are referred to in the
preceding paragraph the Authority may require the licensee to provide a
revised statement in respect of such of the specified items as may be
affected by the directions, and the licensee shall comply with such
request.
-35-
SPECIAL CONDITION E: ALLOWANCE IN RESPECT OF SECURITY COSTS
- -----------------------------------------------------------
1. At any time during a security period, the licensee may give notice in
writing to the Authority suspending, with effect from the date of receipt
of the notice by the Authority, application of such of the charge
restriction conditions as may be specified in the notice for the unexpired
term of the security period.
2. At any time during a security period, the Authority may (having regard to
its duties under the Act or under the Utilities Act 2000) by means of
directions:
(a) suspend or modify for the unexpired term of the security period the
charge restriction conditions or any part or parts thereof; or
(b) introduce for the unexpired term of the security period new charge
restriction conditions
in either case, so as to make such provision as in the opinion or
estimation of the Authority is requisite or appropriate:
(i) to enable the licensee to recover by means of increased charges an
amount estimated as being equal to the licensee's allowed security
costs during such period;
(ii) to ensure that such part of the amount referred to in sub-paragraph
(i) above as is estimated as being equal to the allowed security costs
incurred by the licensee as costs in its distribution business are
recovered by means of appropriate equitable increases on the charges
made by the licensee in its distribution business
and the licensee shall comply with the terms of any directions so issued.
3. At any time following a security period, the Authority may (following
such consultation with the licensee and others as the Authority may
consider appropriate) issue directions suspending or modifying the
charge restriction conditions or any part or parts thereof or
replacing such directions as may have been made during the security
period and introducing such new charge restriction conditions as in
the opinion of the Authority are appropriate in all the circumstances
(including at the Authority's discretion an appropriate adjustment
having regard to any profit gained or forgone by the licensee during
the security period), and the licensee shall comply with any
directions so issued.
4. At any time within three months after the issue of directions by the
Authority under paragraph 3, the licensee may serve on the Authority a
disapplication request in respect of such of the charge restriction
conditions or any part or parts thereof as are specified in the
request.
5. If within three months of the receipt by the Authority of the
disapplication request referred to in paragraph 4, the Authority has
either not agreed in writing to such disapplication request or has not
made a reference to the Competition Commission under Section 12 of the
Act relating to the modification of the charge restriction conditions,
the licensee may deliver one month's written
-36-
notice to the Authority terminating the application of the charge
restriction conditions (or any part or parts thereof) as were
specified in the disapplication request.
6. Subject to paragraphs 7 and 9, the licensee shall in any relevant year
be entitled to recover an aggregate amount equal to its allowed
security costs in that year or (insofar as not previously recovered)
any previous year, by means of appropriate equitable increases on the
charges made by the licensee in its distribution business.
7. Paragraph 6 shall not apply in so far as such allowed security costs:
(a) were otherwise recovered by the licensee; or
(b) were taken into account by the Authority in setting charge
restriction conditions by means of directions issued under
paragraph 3 above.
8. The licensee shall following the end of each relevant year provide to
the Authority, as being one of the specified items to be contained in
the statement referred to at paragraph 7 of Special Condition D
(Information to be provided to the Authority in connection with the
charge restriction conditions), details in respect of that relevant
year of:
(a) the amount of the licensee's allowed security costs; and
(b) the aggregate amounts charged under paragraph 6 on account of the
licensee's allowed security costs; and
(c) the bases and calculations underlying the increases in charges
made by the licensee in its distribution business under paragraph
6.
9. Where the Authority is satisfied that the licensee has recovered
amounts in excess of the allowed security costs, the Authority may
issue directions requiring the licensee to take such steps as may be
specified to reimburse purchasers from the distribution business for
the excess amounts charged to them, and the licensee shall comply with
any directions so issued provided that if the excess amounts relate to
allowed security costs paid to any authorised electricity operator,
the licensee shall not be obliged to make any such reimbursement
unless and until it has recovered such costs from the relevant
authorised electricity operator.
10. No amounts charged by the licensee under this Condition (whether or
not subsequently required to be reimbursed) shall be taken into
account for the purpose of applying the charge restriction provisions
of Special Condition B (Restriction of distribution charges).
11. In this Condition:
"allowed security shall have the meaning ascribed to that term
cost" in the Fuel Security Code.
-37-
"security period" means a period commencing on the date on which
any direction issued by the Secretary of State
under Section 34 (4)(b) of the Act enters into
effect and terminating on the date (being not
earlier than the date such direction, as varied,
is revoked or expires) as the Authority, after
consultation with such persons (including,
without limitation, licence holders liable to be
principally affected) as it shall consider
appropriate, may with the consent of the
Secretary of State by notice to all licence
holders determine after having regard to the
views of such persons.
-38-
SPECIAL CONDITION F: DURATION OF CHARGE RESTRICTION CONDITIONS
- --------------------------------------------------------------
1. The charge restriction conditions shall apply so long as this licence
continues in force but shall cease to have effect (in whole or in part, as
the case may be) if the licensee delivers to the Authority a disapplication
request made in accordance with paragraph 2 and:
(a) the Authority agrees in writing to the disapplication request; or
(b) their application (in whole or in part) is terminated by notice given
by the licensee in accordance with either paragraph 4 or paragraph 5.
2. A disapplication request pursuant to this Special Condition F shall (a) be
in writing addressed to the Authority, (b) specify the charge restriction
conditions (or any part or parts thereof) to which the request relates and
(c) state the date from which the licensee wishes the Authority to agree
that the specified charge restriction conditions shall cease to have
effect.
3. Save where the Authority otherwise agrees, no disapplication following
delivery of a disapplication request pursuant to this Special Condition F
shall have effect earlier than that date which is the later of:
(a) a date being not less than 18 months after delivery of the
disapplication request; and
(b) 31st March 2005.
4. If the Authority has not made a reference to the Competition Commission
under Section 12 of the Act relating to the modification of the charge
restriction conditions before the beginning of the period of 12 months
which will end with the disapplication date, the licensee may deliver
written notice to the Authority terminating the application of such of the
charge restriction conditions (or any part or parts thereof) as are
specified in the disapplication request with effect from the disapplication
date or a later date.
5. If the Competition Commission makes a report on a reference made by the
Authority relating to the modification of the charge restriction conditions
(or any part or parts thereof) specified in the disapplication request and
such report does not include a conclusion that the cessation of such charge
restriction conditions, in whole or in part, operates or may be expected to
operate against the public interest, the licensee may within 30 days after
the publication of the report by the Authority in accordance with Section
13 of the Act deliver to the Authority written notice terminating the
application of such charge restriction conditions with effect from the
disapplication date or later.
6. A disapplication request or notice served under this Condition may be
served in respect of a specified geographic area.
-39-
SCHEDULE A: SUPPLEMENTARY PROVISIONS OF THE CHARGE RESTRICTION CONDITIONS
- -------------------------------------------------------------------------
Part A. Principles for Attribution
- ----------------------------------
General Principles
- ------------------
A1. Where for the purposes of the charge restriction conditions, a share of
costs borne by the licensee requires to be attributed to any part of the
market, the licensee shall make that attribution on a basis which ensures
that no more than a fair proportion of those costs, reflecting the costs
incurred by the licensee in supplying that part of the market, are so
attributed.
A2. The following paragraphs of this Part of Schedule A are without prejudice
to paragraph A1.
Transmission connection point charges and remote transmission asset rentals
- ---------------------------------------------------------------------------
A3. The transmission connection point charges and remote transmission asset
rentals requiring to be attributed between the regulated quantity
distributed and other quantities distributed shall be attributed in
proportion to the transmission connection point and remote transmission
asset capacity required for the purpose of distributing those quantities.
Distribution losses
- -------------------
A4. Where an amount (in units) in respect of distribution losses requires to be
calculated and attributed in respect of EHV units and units distributed by
the licensee for the purpose of supply to premises outside the licensee's
distribution services area, such calculation and attribution shall be made
consistently with the principles underlying the schedule of adjustment
factors referred to at sub-paragraph (b) of paragraph 2 of Condition 4
(Basis of Charges for Use of System and Connection to System: Requirements
for Transparency).
Information to be provided by licensee
- --------------------------------------
A5 The licensee shall following the end of each relevant year furnish to the
Authority, as being one of the specified items to be included in the
statement referred to at paragraph 7 of Special Condition D (Information to
be provided to the Authority in connection with the charge restriction
conditions), a statement confirming that the calculation of the
transmission connection point charges, the remote transmission asset
rentals and of distribution losses was made in accordance with the
provisions of this Part of Schedule A.
A6 Where the Authority is satisfied that the basis of calculation or
attribution (as the case may be) used by the licensee is not in conformity
with paragraph A1, the Authority may issue directions specifying an
alternative basis of calculation or attribution, and the basis of
calculation or attribution by the licensee (as the case may be) shall be
adjusted accordingly with effect from the date of issue of the directions
or (subject to paragraph 10 of Special
-40-
Condition D (Information to be provided to the Authority in connection with
the charge restriction conditions)) such other date as may be specified in
those directions.
-41-
Part B. EHV premises
- --------------------
B1. EHV premises shall comprise:
(a) in relation to premises connected to the licensee's distribution
system as at the date this licence enters into force, those premises
specified in the list of EHV premises notified in writing to the
Authority by the licensee within twenty-eight days after this licence
enters into force; and
(b) in relation to premises connected to the licensee's distribution
system which are either first connected or (having been previously
connected) have had their connections materially altered following the
date this licence enters into force, means premises connected to the
licensee's distribution system at a voltage at or higher than 22
kilovolts or at a sub-station with a primary voltage of 66 kilovolts
or above.
B2. The licensee shall following the end of each relevant year furnish to the
Authority, as being one of the specified items to be included in the
statement referred to at paragraph 7 of Special Condition D (Information to
be provided to the Authority in connection with the charge restriction
conditions), a statement listing any changes in the premises falling to be
treated as EHV premises.
B3. Where the Authority is satisfied that any premises treated by the licensee
as EHV premises should not in conformity with sub-paragraph B1(b) above be
so treated, the Authority may issue directions to that effect, and such
premises shall cease to be treated as EHV premises from the date of issue
of the directions or (subject to paragraph 10 of Special Condition D
(Information to be provided to the Authority in connection with the charge
restriction conditions)) such other date as may be specified in those
directions.
-42-
Part C. Excluded services
- -------------------------
C1. There may be treated as excluded services provided by the licensee in its
distribution business such services in respect of which charges are made
which:
(a) do not fall within paragraph C2 of this Part; and
(b) may (subject to paragraph C8) be determined by the licensee as falling
under one of the principles set out in paragraphs C3 to C6 of this
Part.
C2. No service provided by the licensee as part of its distribution business
shall be treated as an excluded service in so far as it consists of the
provision of services remunerated under the use of system charges in
accordance with paragraph 2 of standard condition 4 including (without
prejudice to the foregoing):
(i) (subject to paragraph C3 of this Part) the transport of
electricity;
(ii) the carrying out of works for the installation of electric lines
or electrical plant (not otherwise payable in the form of
connection charges);
(iii)the carrying out of works or the provision of maintenance or
repair or other services for the purpose of enabling the licensee
to comply with standard conditions 5, 9, 9A and 15, the
Electricity Supply Regulations 1988 or any regulations made under
Section 29 of the Act or any other enactment relating to safety
or standards applicable in respect of the distribution business;
and
(iv) (subject to paragraph C5 of this Part) the provision,
installation and maintenance of any meters, switchgear or other
electrical plant (not being part of connection charges).
C3. The licensee may treat as being an excluded service for the purposes of its
distribution business the transport of:
(a) units of electricity not consumed in the licensee's distribution
services area
(b) EHV units, provided that the licensee's charges for the distribution
of such units do not exceed the charging rates underlying the
information as to EHV revenue and EHV units distributed given by the
licensee to the Authority and used by it for the purposes of setting
the term PUM in Special Condition B (Restriction of distribution
charges), subject only to such adjustments as may be appropriate in
the reasonable opinion of the Authority to reflect material variations
between the
-43-
actual charges made and the charging rates underlying the
information as to EHV revenue provided to the Authority by the
licensee.
C4. Charges of the type described in paragraph 3 of standard condition 4 and
charges in respect of the statements referred to in paragraph 5 of standard
condition 4, may each be treated as excluded services for the purposes of
the distribution business.
C5. A service provided by the licensee as part of its distribution business may
be treated as an excluded service in so far as it consists in the provision
of services (including metering, electric lines or electrical plant) for
the specific benefit of any third party requesting the same and not made
available by the licensee as a normal part of its distribution business
remunerated by use of system charges including (without prejudice to the
foregoing):
(i) special metering (including "time of day" metering) to facilitate
energy saving programmes for the benefit of customers requesting the
same;
(ii) charges for moving mains, services or meters forming part of the
licensee's distribution system to accommodate extension, re-design or
re-development of any premises on which the same are located or to
which they are connected;
(iii)the provision of electric lines and electrical plant (a) insofar as
the same are required for the specific purpose of enabling the
provision of top-up or standby supplies or sales of electricity or (b)
to provide a higher degree of security than is required for the
purposes of complying with standard condition 5;
(iv) the amount by which charges for the provision of prepayment meters to
customers exceed charges for the provision of standard meters for such
customers, in respect of which the amount receivable per customer
shall not exceed that used by the Authority in formulating PUM in
Special Condition B (Restriction of distribution charges); and
(v) special metering or telemetry or data processing equipment for the
purposes of enabling any person which is a party to the BSC to comply
with its obligations in respect of metering thereunder, or for the
performance by the licensee of any service in relation thereto.
C6. There may be treated as an excluded service for the purposes of the
distribution business, charges for the relocation of electric lines or
electrical plant and the carrying out of works associated therewith
pursuant to a statutory obligation (other than under Section 9(1) or
Section 16 of the Act) imposed on the licensee.
Information to be provided to the Authority
- -------------------------------------------
C7. The licensee shall following the end of each relevant year furnish to the
Authority, as being one of the specified items to be included in the
statement referred to at paragraph 7 of Special Condition D (Information to
be provided to the Authority in connection with the
-44-
charge restriction conditions), details specifying separately the nature of
all services provided as part of its distribution business and treated as
excluded services by the licensee during the course of such year and
stating the revenues derived by the licensee in respect of each such
service so treated.
C8. Where the Authority is satisfied that in light of the principles set out in
paragraphs C2 to C6 inclusive any service treated by the licensee as an
excluded service should not be so treated, the Authority shall issue
directions to that effect, and the service or services specified in the
directions shall cease to be treated as excluded services from the date of
issue of the directions or (subject to paragraph 10 of Special Condition D
(Information to be provided to the Authority in connection with the charge
restriction conditions)) such other date as may be specified in the
directions.
-45-
Part D. Regulated distribution unit categories
- -----------------------------------------------
D1. The licensee shall following the end of each relevant year furnish to the
Authority, as being one of the specified items to be included in the
statement referred to at paragraph 7 of Special Condition D (Information to
be provided to the Authority in connection with the charge restriction
conditions), details specifying separately those use of system charges in
respect of which the licensee has during the course of such year treated
the units distributed as falling within the definition of each of LV1 units
and LV2 units and LV3 units respectively.
D2. The definition of LV1 units includes units distributed under the following
tariffs:
Domestic Economy 7, day rate
Quarterly non domestic Economy 7, day rate
Quarterly non domestic 3-rate evening, weekend and night tariff: day,
evening and weekend units only.
D3. The definition of LV2 units includes units distributed under the following
tariffs:
Domestic Economy 7, night rate
Quarterly non domestic Economy 7, night rate
Quarterly non domestic 3-rate evening, weekend and night tariff: night
units only
Off peak tariffs
D4. The definition of LV3 units includes units distributed under the following
tariffs:
General domestic
Quarterly unrestricted non domestic
Quarterly non domestic two rate evening and weekend tariffs
Monthly billed maximum demand tariffs
STOD tariffs.
Public lighting
D5. Notwithstanding the provisions of paragraphs D2 to D4 above, where the
Authority is satisfied that a tariff or tariffs in respect of which the
licensee has treated the units distributed as falling within one of the
categories in paragraphs D2 to D4 above should not be so treated, the
Authority shall issue directions to that effect and the tariff or tariffs
specified in the directions shall cease to be so treated from the date of
issue of the directions or (subject to paragraph 10 of Special Condition D
(Information to be provided to the Authority in connection with the charge
restriction conditions)) such other date as may be specified in the
directions and shall with effect from such date be treated in such manner
as may be specified in the directions.
-46-
Part E. Calculation of factor in respect of distribution losses
- ---------------------------------------------------------------
E1. The terms ALt and Lt, which are used in paragraph 3 of Special Condition B
(Restriction of distribution charges), shall each be determined, for
relevant years commencing on or after the 1st April 1995, using the
consistent methodological basis set out in paragraphs E2 to E5 below.
Consistent methodological basis for determination of ALt and Lt
- ---------------------------------------------------------------
E2. Adjusted distribution losses shall be deemed to be the difference between
adjusted grid supply point purchases and adjusted units distributed.
E3. Units metered on entry to the licensee's distribution system shall be
adjusted to obtain adjusted grid supply point purchases by:
(a) excluding that number of units which is equal to the sum of:
(i) EHV units; and
(ii) units distributed by the licensee for the purpose of supply to
premises outside the licensee's distribution services area; and
(iii)an amount in respect of distribution losses between the grid
supply point and the exit point attributable to the units
referred to in (i) and (ii) above, as determined in accordance
with paragraph A4 in Part A of Schedule A; and
(b) including an amount (in units) to represent the effect of units
entering the licensee's distribution system otherwise than at grid
supply points, being the difference between the number of units so
entering and the number of units that would have been required to have
entered at grid supply points in their absence (such latter number of
units being calculated consistently with the principles underlying the
schedule of adjustment factors in respect of distribution losses
referred to at sub-paragraph (b) of paragraph 2 of standard condition
4).
E4. For so long as units are metered on entry to the licensee's distribution
system at bulk supply points instead of at grid supply points, such units
shall be calculated by:
(i) applying the procedures in paragraph E3 as if all references to units
metered at grid supply points were to units metered at bulk supply
points; and
(ii) grossing-up units metered at the bulk supply points by the relevant
grid supply point conversion factor being either:
(a) 0.5 per cent of the units metered at the bulk supply points; or
-47-
(b) such other factor to take account of losses occurring between the
grid supply points and the bulk supply points as the licensee may
with the prior approval of the Authority determine to be
appropriate.
E5. Adjusted units distributed shall be obtained by:
(a) calculating all units distributed by the licensee metered at exit
points on leaving the licensee's distribution system; and
(b) deducting therefrom EHV units and units distributed for the purpose of
supply to premises outside the licensee's distribution services area;
and
(c) adding thereto an amount equal to the units consumed on the licensee's
premises in the distribution services area (insofar as not otherwise
taken into account in determining units distributed under
sub-paragraph (a) above).
Initial relevant loss percentage in the term ALt
- ------------------------------------------------
E6. In the first relevant year, the initial relevant loss percentage in the
term ALt shall (consistently with the methodology set out in paragraphs E2
to E5 above) be deemed to be:
adjusted GSP purchase units less adjusted units distributed
- -----------------------------------------------------------
adjusted units distributed
where adjusted GSP purchase units are calculated as provided in paragraph
E7 and adjusted units distributed are calculated as provided in paragraph
E8.
E7. Adjusted GSP purchase units shall be calculated in accordance with the
procedures successively described in the following sub-paragraphs:
(a) the actual losses in each of relevant years t-1, t-2 and t-3 (the
"historical losses") shall be calculated as the difference in each of
those years between units purchased at entry points to the licensee's
distribution system and units sold;
(b) the historic loss percentage shall be calculated as the proportion
(expressed as a percentage) which the aggregate historical losses were
of the aggregate units purchased at entry points to the licensee's
distribution system, in each case over the three relevant years t-1 to
t-3;
(c) the total number of units sold in relevant year t-1 shall be grossed
up by the historical loss percentage ("BSP purchase units"); and
(d) the figure for BSP purchase units resulting from sub-paragraph (c)
shall be adjusted to obtain adjusted GSP purchase units in accordance
with the provisions of paragraphs E3 and E4 above.
-48-
E8. Adjusted units distributed shall be calculated by applying the methodology
of paragraph E5 in respect of those units referred to in sub-paragraphs (a)
to (c) of paragraph E5 in relevant year t-1.
Information to be provided to the Authority
- -------------------------------------------
E9. The licensee shall within three months after the entry into force of this
licence furnish to the Authority a statement showing the initial relevant
loss percentage and the underlying calculations.
E10. The licensee shall, following the end of each relevant year, furnish to the
Authority, as being one of the specified items to be included in the
statement referred to at paragraph 7 of Special Condition D (Information to
be provided to the Authority in connection with the charge restriction
conditions), a statement showing adjusted distribution losses for that
relevant year, accompanied by the underlying calculations and (where
appropriate) an explanation of any changes in the basis of calculation or
estimation thereof.
E11. Where the Authority is satisfied that any statement or underlying
calculation provided has not been drawn up in conformity with paragraphs E2
to E8 above, the Authority may issue directions, and the statement or
underlying calculation shall be adjusted with effect from the date of issue
of the directions or (subject to paragraph 10 of Special Condition D
(Information to be provided to the Authority in connection with the charge
restriction conditions)) such other date as may be specified in the
directions.
-49-
SCHEDULE 1
SPECIFIED AREA
Great Britain
-50-
SCHEDULE 2
REVOCATION
1. The Authority may at any time revoke the licence by giving no less than 30
days' notice (24 hours' notice, in the case of a revocation under
sub-paragraph 1(f)) in writing to the licensee:
(a) if the licensee agrees in writing with the Authority that the licence
should be revoked;
(b) if any amount payable under standard condition 3 (Payments by the
licensee to the Authority) is unpaid 30 days after it has become due
and remains unpaid for a period of 14 days after the Authority has
given the licensee notice that the payment is overdue - provided that
no such notice shall be given earlier than the sixteenth day after the
day on which the amount payable became due;
(c) if the licensee fails:
(i) to comply with a final order (within the meaning of section 25 of
the Act) or with a provisional order (within the meaning of that
section) which has been confirmed under that section and (in
either case) such failure is not rectified to the satisfaction of
the Authority within three months after the Authority has given
notice in writing of such failure to the licensee - provided that
no such notice shall be given by the Authority before the
expiration of the period within which an application under
section 27 of the Act could be made questioning the validity of
the final or provisional order or before the proceedings relating
to any such application are finally determined; or
(ii) to pay any financial penalty (within the meaning of section 27A
of the Act) by the due date for such payment and such payment is
not made to the Authority within three months after the Authority
has given notice in writing of such failure to the licensee -
provided that no such notice shall be given by the Authority
before the expiration of the period within which an application
under section 27E of the Act could be made questioning the
validity or effect of the financial penalty or before the
proceedings relating to any such application are finally
determined;
(d) if the licensee fails to comply with:
(i) an order made by the Secretary of State under section 56, 73, 74
or 89 of the Fair Trading Act 1973; or
(ii) an order made by the court under section 34 of the Competition
Act 1998;
(e) if the licensee:
(i) has ceased to carry on the distribution business;
(ii) has not commenced carrying on the distribution business within 5
years of the date on which the licence comes into force;
-51-
(f) if the licensee:
(i) is unable to pay its debts (within the meaning of section 123(1)
or (2) of the Insolvency Act 1986, but subject to paragraphs 2
and 3 of this schedule) or has any voluntary arrangement proposed
in relation to it under section 1 of that Act or enters into any
scheme of arrangement (other than for the purpose of
reconstruction or amalgamation upon terms and within such period
as may previously have been approved in writing by the
Authority);
(ii) has a receiver (which expression shall include an administrative
receiver within the meaning of section 251 of the Insolvency Act
1986) of the whole or any material part of its assets or
undertaking appointed;
(iii)has an administration order under section 8 of the Insolvency
Act 1986 made in relation to it;
(iv) passes any resolution for winding-up other than a resolution
previously approved in writing by the Authority; or
(v) becomes subject to an order for winding-up by a court of
competent jurisdiction; or
(g) if the licensee is convicted of having committed an offence under
section 59 of the Act in making its application for the licence.
2. For the purposes of sub-paragraph 1(f)(i), section 123(1)(a) of the
Insolvency Act 1986 shall have effect as if for "(pound)750" there was
substituted "(pound)100,000" or such higher figure as the Authority may
from time to time determine by notice in writing to the licensee.
3. The licensee shall not be deemed to be unable to pay its debts for the
purposes of sub-paragraph 1(f)(i) if any such demand as is mentioned in
section 123(1)(a) of the Insolvency Act 1986 is being contested in good
faith by the licensee with recourse to all appropriate measures and
procedures or if any such demand is satisfied before the expiration of such
period as may be stated in any notice given by the Authority under
paragraph 1.
-52-
SCHEDULE 3
DISTRIBUTION SERVICES AREA
The distribution services area shall comprise that area which is outlined on the
attached map and shall additionally include those premises listed in List A (the
"Additional Premises") but shall not include those premises listed in List B
(the "Excluded Premises").
A: ADDITIONAL PREMISES
Address Grid Ref:
------- ---------
Mine SE 6040 4045
Stillingfleet Moor
Stillingfleet
Near York
YO4 6HX
Mine SE 6475 4431
North Selby
New Road
Escrick
YO4 6EY
B: EXCLUDED PREMISES
Address Grid Ref:
------- ---------
None
-53-
ANNEX 2
ELECTRICITY ACT 1989
SECTION 6(1)(D)
ELECTRICITY SUPPLY LICENCE
FOR
NPOWER YORKSHIRE SUPPLY LIMITED
-54-
PART I - TERMS OF THE LICENCE
1. This licence, treated as granted under section 6(1)(d) of the Electricity
Act 1989 ("the Act"), authorises Npower Yorkshire Supply Limited (a company
registered in England and Wales under number 04212116) ("the licensee")
whose registered office is situated at Wetherby Road, Scarcroft, Leeds,
LS14 3HS to supply electricity to premises in the area specified in
Schedule 1 during the period specified in paragraph 3 below, subject to:
(a) the standard conditions of electricity supply licences referred to in
Part II below which shall have effect in the licence subject to such
amendments (if any) as are set out in Part III below (together "the
conditions");
(b) the special conditions, if any, set out in Part IV below ("the special
conditions");
(c) such schedules hereto, if any, as may be referenced in the conditions,
the special conditions or the terms of the licence.
2. This licence is subject to transfer, modification or amendment in
accordance with the provisions of the Act, the special conditions or the
conditions.
3. This licence, unless revoked in accordance with the terms of Schedule 2,
shall continue until determined by not less than 25 years' notice in
writing given by the Authority to the licensee.
4. The provisions of section 109(1) of the Act (Service of documents) shall
have effect as if set out herein and as if for the words "this Act" there
were substituted the words "this licence".
5. Without prejudice to sections 11 and 23(1) of the Interpretation Act 1978,
Parts I to IV inclusive of, and the Schedules to, this licence shall be
interpreted and construed in like manner as an Act of Parliament passed
after the commencement of the Interpretation Act 1978.
6. References in this licence to a provision of any enactment, where after the
date of this licence -
(a) the enactment has been replaced or supplemented by another enactment,
and
(b) such enactment incorporates a corresponding provision in relation to
fundamentally the same subject matter,
shall be construed, so far as the context permits, as including a reference
to the corresponding provision of that other enactment.
7. Pursuant to paragraph 5 of standard condition 3 (Application of Section D
(Supply Services Obligations)) of the Electricity Supply Licence the
"supply services area" is specified in Schedule 3 hereto.
Pursuant to a licensing scheme made by the Secretary of State under Part II of
Schedule 7 to the Utilities Act 2000 on 28 September 2001 this licence was made
and is treated as granted under section 6(1)(d) of the Electricity Act 1989.
-55-
PART II - THE STANDARD CONDITIONS
STANDARD CONDITIONS IN EFFECT IN THIS LICENCE
- ---------------------------------------------
SECTION A SECTION B SECTION C SECTION D
Standard condition 1 Standard condition 5 Standard condition 31 Standard condition 51
Standard condition 2 Standard condition 6 Standard condition 32 Standard condition 52
Standard condition 3 Standard condition 7 Standard condition 33 Standard condition 52A
Standard condition 4 Standard condition 8 Standard condition 35 Standard condition 53
Standard condition 8A Standard condition 36 Standard condition 53A
Standard condition 8B Standard condition 37 Standard condition 53B
Standard condition 9 Standard condition 38 Standard condition 53C
Standard condition 10 Standard condition 39 Standard condition 54
Standard condition 11 Standard condition 40
Standard condition 12 Standard condition 41
Standard condition 12A Standard condition 42
Standard condition 12B Standard condition 43
Standard condition 13 Standard condition 44
Standard condition 14 Standard condition 45
Standard condition 15 Standard condition 46
Standard condition 16 Standard condition 47
Standard condition 17 Standard condition 48
Standard condition 18 Standard condition 49
Standard condition 19 Standard condition 50
Standard condition 20
Standard condition 21
Standard condition 22
Standard condition 22A
Standard condition 23
Standard condition 24
Standard condition 25
Standard condition 26
Standard condition 27
Standard condition 28
Standard condition 29
Standard condition 29A
Standard condition 29B
Note: A copy of the current standard conditions of electricity supply licences
can be inspected at the principal office of the Authority. The above list is
correct at the date of this licence but may be
-56-
changed by subsequent amendments or modifications to the licence. The
authoritative up-to-date version of this licence is available for public
inspection at the principal office of the Authority.
-57-
PART III - AMENDMENTS TO THE STANDARD CONDITIONS
There are no amendments to the standard conditions of electricity supply
licences.
-58-
PART IV - SPECIAL CONDITIONS
SPECIAL CONDITION A: DEFINITIONS AND INTERPRETATION
- ----------------------------------------------------
1. Unless the context otherwise requires words and expressions used in the
standard conditions of this licence shall bear the same meaning in these
Special Conditions.
2. Special Conditions B to F and Schedule A only apply to the supply services
area of the licensee. (such area is referred to in these Special Conditions
as the "Yorkshire area").
3. In Special Conditions B to F and in Schedule A to those Special Conditions:
"attributed" means when used in relation to the fossil fuel
levy or payments in lieu thereof, or in relation
to attributing electricity purchase or sale
contracts and electricity purchase costs to
domestic customers and, attributed in accordance
with the principals set out in Part A of
Schedule A and attribute, attributed,
attributable and attribution shall be construed
accordingly.
"charge restriction means Special Condition G to F together with
conditions" Schedule A to this licence, as from time to time
modified or replaced in accordance with the
provisions of the Act.
"electricity purchase means the licensee's purchase costs of
costs" electricity calculated in accordance with the
principles in Part F of Schedule 3 of the
Public Electricity Supply Licence previously
granted to Yorkshire Electricity Group plc in
force on 31 March 1998.
"eleventh relevant year" means the relevant year commencing 1 April 2000.
"excluded services" means those services provided by the licensee
which in accordance with the principles set out
in Part B of Schedule A fall to be treated as
excluded services.
"metered" means, in relation to any quantity supplied, as
measured by a meter installed for such purpose
or (where no such meter is installed or it is
not reasonably practicable to measure the
quantity by such meter) as otherwise reasonably
calculated.
"quantity supplied" means the aggregate quantity of units supplied
by the licensee in the relevant year metered at
the points of supply (whether or not in the
Yorkshire area of the licensee).
"relevant year" means a financial year commencing on or after
1st April 1990.
-59-
"relevant year t" means that relevant year for the purposes of
which any calculation falls to be made;
"relevant year t-1" means the relevant year
preceding relevant year t or, in respect of the
period prior to 1st April 1990, the period of 12
calendar months commencing on 1st April 1989;
and similar expressions shall be construed
accordingly.
"supply" means supply in the Yorkshire area; and
"supplied" and similar expressions shall be
construed accordingly.
"supply charges" means all charges (including charges for the use
of any distribution or transmission system and
standing charges) made by the licensee in
respect of electricity supplied by the
licensee other than charges for the provision of
excluded services by the licensee.
"supply revenue" means the revenue (measured on accruals basis)
derived by the licensee from supply charges
after deductions of value added text (if any)
and any other taxes based directly on the
amounts so derived.
"twelfth relevant year" means the relevant year commencing 1 April 2001.
"unit" means a kilowatt hour.
4. Any reference in these Special Conditions to -
(a) a provision thereof;
(b) a provision of the standard conditions of electricity supply licences;
(c) a provision of the standard conditions of electricity distribution
licences;
(d) a provision of the standard conditions of electricity generation
licences;
(e) a provision of the standard conditions of electricity transmission
licences;
shall, if these or the standard conditions in question come to be modified,
be construed, so far as the context permits, as a reference to the
corresponding provision of these or the standard conditions in question as
modified.
-60-
SPECIAL CONDITION B: RESTRAINTS ON SUPPLY CHARGES
- -------------------------------------------------
Availability of Restricted Charges
- ----------------------------------
1. The licensee shall make available and continue to make available to all
Domestic Customers the Standard Domestic Charge and the Domestic Economy 7
Charge.
2. The licensee shall not, without the consent in writing of the Authority,
change the terms (other than price, which shall be regulated in accordance
with this Condition) of any Restricted Charge, and the terms to which this
prohibition applies include, for example, the hours between which
particular prices apply and the level of consumption at which prices
change.
Restraints on Prices for Restricted Charges
- -------------------------------------------
3. Without prejudice to Special Condition E (Allowance in respect of security
costs), and subject to paragraph 16, the licensee shall, in addition to
complying with paragraphs 10, 11, 12 and (where appropriate) 13, ensure
that at any point in time in the eleventh relevant year the prices set by
the licensee for the Standard Domestic Charge and the Domestic Economy 7
Charge shall not exceed limits imposed by paragraph 6 and paragraph 8
respectively.
4. Without prejudice to Special Condition E (Allowance in respect of security
costs), and subject to paragraph 16, the licensee shall, in addition to
complying with paragraphs 10 to 15, ensure that at any point in time in the
twelfth relevant year the prices set by the licensee for the Standard
Domestic Charge and the Domestic Economy 7 Charge shall not exceed limits
imposed by paragraph 7 and paragraph 9 respectively.
5. Without prejudice to Special Condition E (Allowance in respect of security
costs), and subject to paragraph 16, the licensee shall, in addition to
complying with paragraphs 12 to 15, ensure that at any point in time in the
thirteenth and subsequent relevant years, the prices set by the licensee
for the Standard Domestic Charge and the Domestic Economy 7 Charge shall
not exceed the limits imposed by paragraph 7 and paragraph 9 respectively,
and the limits imposed by paragraph 15;
where in paragraphs 7, 9, and 15 :
references to the `twelfth relevant year' are replaced by reference to the
relevant subsequent relevant year
references to `t+1' are to be construed as references to the relevant
subsequent relevant year
references to `t' are to be construed as references to the year preceding
the relevant subsequent relevant year
Restraint on Standard Domestic Charge
- -------------------------------------
6. The Standard Domestic Charge shall be set so that at any point in time in
the eleventh relevant year the weighted average unit price of that charge
represented by the term WPSDt does not exceed the lower of the two formulae
given under (a) and (b:
-61-
(a) ( (BSDt+DSDt+TSDt ) x 1.015 ) x (1+(Ft/100))
(b) WPSDt-1 x ((1+(Ft/100))/(1+(Fd/100))) x (1+(RPIt/100))
Where:
WPSDt is set equal to
(WSD x PSDt ) + ( (1-WSD) x PPPSDt )
WSD
means the weighting factor specified for the Yorkshire area
in Column 2 of Annex D to this Condition
PSDt
means the average unit price for the licensee's Standard
Domestic Charge calculated as follows, using the licensee's
published rates for that charge, and without taking account
of any Prompt Payment Discount available under that charge :
(Annual Standing Charge + (B1SD x Primary Unit rate) +
((3300-B1SD) x Secondary Unit rate)) / 3300
B1SD
has the value specified for the Yorkshire area in Column 2
of Annex E to this Condition
PPPSDt
means the average unit price for the licensee's Standard
Domestic Charge calculated as follows, using the licensee's
published rates for that charge, and after taking account of
any Prompt Payment Discount available under that charge:
(Annual Standing Charge + (B1SD x Primary unit rate) +
((3300-B1SD) x Secondary unit rate)) / 3300
BSDt
means the base allowance, subject to paragraph 16, (in
respect of generation, supply and transmission services use
of system) specified for the Yorkshire area in Column 2 of
Annex B to this Condition
DSDt
means a sum representing the distribution use of system
charges incurred by the licensee in the eleventh relevant
year in supplying a customer on a Standard Domestic Charge,
represented by the formula :
( D1SDt + (3300 x D2SDt ) + D3SDt ) / 3300
D1SDt
is the distribution use of system charge annual standing
charge for supplying that customer
D2SDt
is the distribution use of system charge in respect of each
unit consumed by that customer
D3SDt
is the aggregate of all other relevant distribution charges
for supplying that customer
TSDt
is calculated in accordance with the following formula,
provided that if the transmission company changes the basis
upon which it calculates or charges for transmission network
use of system charges, the Authority may by direction amend
the formula to produce a
-62-
value of TSDt such that the licensee is neither advantaged
nor disadvantaged by the change:
TNUOS x 0.1859 x Loss Adjustment Factor
Where
"TNUOS" is the transmission network use of system charge
(expressed in pence per kWh) published for the eleventh
relevant year and for the zone relevant to the licensee, as
set out in the statement provided for in standard condition
C7 (Use of System) of the Transmission Licence.
"Loss Adjustment Factor" means the factor specified for the
Yorkshire area in column 2 of Annex C to this Condition
WPSDt-1
is set equal to
(WSD x PSDt-1 ) + ((1-WSD) x PPPSDt-1)
PSDt-1
means the average unit price for the licensee's Standard
Domestic Charge calculated as follows, using the licensee's
published rates for that charge as at the end of the tenth
relevant year, and without taking account of any Prompt
Payment Discount available under that charge:
(Annual Standing Charge + (B1SD x Primary Unit rate) +
((3300-B1SD) x Secondary Unit rate)) / 3300
PPPSDt-1
means the average unit price for the licensee's Standard
Domestic Charge calculated as follows, using the licensee's
published rates for that charge as at the end of the tenth
relevant year, and after taking account of any Prompt
Payment Discount available under that charge :
(Annual Standing Charge + (B1SD x Primary unit rate) +
((3300-B1SD) x Secondary unit rate)) / 3300
7. The Standard Domestic Charge shall be set so that at any point in time in
the twelfth relevant year the weighted average unit price of that charge
represented by the term WPSDt+1 does not exceed :
((BSDt+1+DSDt+1+TSDt+1 ) x 1.015) x (1+(Ft+1/100))
Where:
WPSDt+1 is set equal to
(WSD x PSDt+1 ) + ((1-WSD) x PPPSDt+1)
WSD
means the weighting factor specified for the Yorkshire area
in Column 2 of Annex D to this Condition
PSDt+1
means the average unit price for the licensee's Standard
Domestic Charge in the twelfth relevant year, calculated as
follows using the licensee's
-63-
published rates for that charge, and without taking account
of any Prompt Payment Discount available under that charge :
(Annual Standing Charge + (B1SD x Primary Unit rate) +
((3300-B1SD) x Secondary Unit rate)) / 3300
B1SD
has the value specified for the Yorkshire area in Column 2
of Annex E to this Condition
PPPSDt+1
means the average unit price for the licensee's Standard
Domestic Charge in the twelfth relevant year, calculated as
follows, using the licensee's published rates for that
charge, and after taking account of any Prompt Payment
Discount available under that charge:
(Annual Standing Charge + (B1SD x Primary unit rate) +
((3300-B1SD) x Secondary unit rate)) / 3300
BSDt+1 is set equal to
BSDt x (1+(RPIt+1/100))
DSDt+1
means a sum representing the distribution use of system
charges incurred by the licensee in the twelfth relevant
year in supplying a customer on a Standard Domestic Charge,
represented by the formula:
( D1SDt+1 + (3300 x D2SDt+1 ) + D3SDt+1 ) / 3300
D1SDt+1
is the distribution use of system charge annual standing
charge for supplying that customer
D2SDt+1
is the distribution use of system charge in respect of each
unit consumed by that customer
D3SDt+1
is the aggregate of all other relevant distribution charges
for supplying that customer
TSDt+1
is calculated in accordance with the following formula,
provided that if the transmission company changes the basis
upon which it calculates or charges for transmission network
use of system charges, the Authority may by direction amend
the formula to produce a value of TSDt+1 such that the
licensee is neither advantaged nor disadvantaged by the
change:
TNUOS x 0.1859 x Loss Adjustment Factor
Where
"TNUOS" is the transmission network use of system charge
(expressed in pence per kWh) published for the twelfth
relevant year and for the zone relevant to the licensee, as
set out in the statement provided for in standard condition
C7 (Use of System) of the Transmission Licence.
-64-
"Loss Adjustment Factor" means the factor specified for the
Yorkshire Area in column 2 of Annex C to this Condition
For the purposes of this paragraph 7, any cross references
to it and this Condition generally the terms BSDt, DSDt,
and TSDt shall have the meanings given respectively, in
paragraph 6 above.
Restraint on Domestic Economy 7 Charge
- --------------------------------------
8. The Domestic Economy 7 Charge shall be set so that at any point in time in
the eleventh relevant year the weighted average unit price of that charge
represented by the term WPE7t does not exceed the lower of the two formulae
given under (a) and (b):
(a) ((BE7t+DE7t+TE7t ) x 1.015) x (1+(Ft/100))
(b) WPE7t-1 x ((1+(Ft/100))/(1+(Fd/100))) x (1+(RPIt/100))
Where:
WPE7t is set equal to
(WE7 x PE7t ) + ((1-WE7) x PPPE7t)
WE7
means the weighting factor specified for the Yorkshire area
in Column 3 of Annex D to this Condition
PE7t
means the average unit price for the licensee's Domestic
Economy 7 Charge calculated as follows, using the licensee's
published rates for that charge, and without taking account
of any Prompt Payment Discount available under that charge:
(Annual Standing Charge + (B1E7 x Day Primary Unit Rate) +
((3000 - B1E7) x Day Secondary Unit Rate ) + (3600 x Night
Unit Rate)) / 6600
B1E7
has the value specified for the Yorkshire area in Column 3
of Annex E to this Condition
PPPE7t
means the average unit price for the licensee's Domestic
Economy 7 Charge calculated as follows, using the licensee's
published rates for that charge, and after taking account of
any Prompt Payment Discount available under that charge :
((Annual Standing Charge + (B1E7 x Day Primary Unit Rate) +
((3000 - B1E7) x Day Secondary Unit Rate) + (3600 x Night
Unit Rate))) / 6600
BE7t
means the base allowance, subject to paragraph 16, (in
respect of generation, supply and transmission services use
of system) specified for the Yorkshire area in Column 3 of
Annex B to this Condition
DE7t
means a sum representing the distribution use of system
charges incurred by the licensee in the eleventh relevant
year in supplying a customer on a Domestic Economy 7 Charge,
represented by the formula:
(D1E7t + (3000 x D2E7t) + (3600 x D3E7t) + D4E7t) / 6600
-65-
D1E7t
is the distribution use of system charge annual standing
charge for supplying that customer
D2E7t
is the distribution use of system charge in respect of each
day unit consumed by that customer
D3E7t
is the distribution use of system charge in respect of each
night unit consumed by that customer
D4E7t
is the aggregate of all other relevant distribution use of
system charges for supplying that customer
TE7t
is calculated in accordance with the following formula,
provided that if the transmission company changes the basis
upon which it calculates or charges for transmission network
use of system charges, the Authority may by direction amend
the formula to produce a value of TE7t such that the
licensee is neither advantaged nor disadvantaged by the
change:
TNUOS x 0.1162 x Loss Adjustment Factor
where
"TNUOS" is the transmission network use of system charge
(expressed in pence per kWh) published for the eleventh
relevant year and for the zone relevant to the licensee, as
set out in the statement provided for in standard condition
C7 (Use of System) of the Transmission Licence.
"Loss Adjustment Factor" means the factor specified for the
Yorkshire area in column 3 of Annex C to this Condition
WPE7t-1 is set equal to
(WE7 x PE7t-1 ) + ((1-WE7) x PPPE7t-1)
PE7t-1
means the average unit price for the licensee's Domestic
Economy 7 Charge calculated as follows, using the licensee's
published rates for that charge as at the end of the tenth
relevant year, and without taking account of any Prompt
Payment Discount available under that charge:
(Annual Standing Charge + (B1E7 x Day Primary Unit Rate) +
((3000 - B1E7) x Day Secondary Unit Rate) + (3600 x Night
Unit Rate)) / 6600
B1E7
has the value specified for the Yorkshire area in Column 3
of Annex E
PPPE7t-1
means the average unit price for the licensee's Domestic
Economy 7 Charge calculated as follows, using the licensee's
published rates for that charge at the end of the tenth
relevant year, and after taking account of any Prompt
Payment Discount available under that charge:
(Annual Standing Charge + (B1E7 x Day Primary Unit Rate) +
((3000 - B1E7) x Day Secondary Unit Rate) + (3600 x Night
Unit Rate)) / 6600
-66-
9. The Domestic Economy 7 Charge shall be set so that at any point in time in
the twelfth relevant year the weighted average unit price of that charge
represented by the term WPE7t+1 does not exceed :
((BE7t+1 + DE7t+1 + TE7t+1) x 1.015 ) x (1+(Ft+1/100))
Where:
WPE7t+1 is set equal to
(WE7 x PE7t+1 ) + ((1-WE7) x PPPE7t+1)
WE7
means the weighting factor specified for the Yorkshire area
in Column 3 of Annex D to this Condition
PE7t+1
means the average unit price for the licensee's Domestic
Economy 7 Charge in the twelfth relevant year calculated as
follows, using the licensee's published rates for that
charge, and without taking account of any Prompt Payment
Discount available under that charge:
(Annual Standing Charge + (B1E7 x Day Primary Unit Rate) +
((3000 - B1E7) x Day Secondary Unit Rate) + (3600 X Night
Unit Rate)) / 6600
B1E7
has the value specified for the Yorkshire area in Column 3
of Annex E to this Condition
PPPE7t+1
means the average unit price for the licensee's Domestic
Economy 7 Charge in the twelfth relevant year calculated as
follows, using the licensee's published rates for that
charge, and after taking account of any Prompt Payment
Discount available under that charge:
(Annual Standing Charge + (B1E7 x Day Primary Unit Rate) +
((3000 - B1E7) x Day Secondary Unit Rate) + (3600 x Night
Unit Rate)) / 6600
BE7t+1 is set equal to
BE7t x (1+(RPIt+1/100))
DE7t+1
means a sum representing the distribution use of system
charges incurred by the licensee in the twelfth relevant
year in supplying a customer on a Domestic Economy 7 Charge,
represented by the formula:
(D1E7t+1 + (3000 x D2E7t+1) + (3600 x D3E7t+1) + D4E7t+1)
/ 6600
D1E7t+1
is the distribution use of system charge annual standing
charge for supplying that customer
D2E7t+1
is the distribution use of system charge in respect of each
day unit consumed by that customer
D3E7t+1
is the distribution use of system charge in respect of each
night unit consumed by that customer
-67-
D4E7t+1
is the aggregate of all other relevant distribution charges
for supplying that customer
TE7t+1
is calculated in accordance with the following formula,
provided that if the transmission company changes the basis
upon which it calculates or charges for transmission network
use of system charges, the Authority may by direction amend
the formula to produce a value of TE7t+1 such that the
licensee is neither advantaged nor disadvantaged by the
change:
TNUOS x 0.1162 x Loss Adjustment Factor
where
"TNUOS" is the transmission network use of system charge
(expressed in pence per kWh) published for the twelfth
relevant year and for the zone relevant to the licensee, as
set out in the statement provided for in standard condition
C7 (Use of System) of the Transmission Licence.
"Loss Adjustment Factor" means the factor specified for the
Yorkshire area in column 3 of Annex C to this Condition
For the purposes of this paragraph 9, any cross references
to it and this Condition generally the terms BE7t, DE7t,
and TE7t shall have the meanings given respectively, in
paragraph 8 above.
Supplementary Restrictions
- --------------------------
10. Without prejudice to Special Condition E (Allowance in respect of security
costs), at the beginning of the eleventh relevant year the licensee shall
set its prices on the Restricted Charges so that, except with the prior
written consent of the Authority, in addition to complying with paragraph 6
or, as the case may be, paragraph 8, the limits in paragraph 11 shall
apply.
11. The standing charge and unit rates for the Standard Domestic Charge and
Domestic Economy 7 Charge shall not at any point in time in the eleventh
relevant year exceed in each case the charges made at the end of the tenth
relevant year, multiplied by the formula :
(1+(RPIt / 100) ) x ((1+(Ft/100))/(1+(Fd/100)))
12. Without prejudice to Special Condition E (Allowance in respect of security
costs), throughout the eleventh and subsequent relevant years, the licensee
shall set its prices on all charges available to domestic customers (other
than the Restricted Charges) so that the standing charge, unit rate or
rates and any other component parts of the charges shall not, except with
prior written consent of the Authority in the relevant year t exceed:
Cpt x (1 + (RPIt / 100 ) ) x ((1+(Ft/100))/(1+(Fd/100)))
Where
Cpt means each of the standing charge, unit rate or rates, and
other component parts of the charge, approved by the Authority,
prevailing on 31 March of the previous relevant year. Hence
for the purposes of the eleventh relevant year, Cpt means each of
the
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standing charge, unit rate or rates, and other component parts of
the charge, prevailing at the end of the tenth relevant year.
Prepayment Meter Charges
- ------------------------
13. In the eleventh and subsequent relevant years, the total charge in any
domestic prepayment meter charge, including charges made for the provision
of the prepayment meter, shall not exceed the total charge made in the
equivalent domestic charge by more than the amount specified for the
Yorkshire area in column 2 of Annex F.
14. The Authority may by direction specify which charges are to be deemed
prepayment meter charges and which charges are their equivalent domestic
charges.
Standing charges and unit rates
- -------------------------------
15. (a) Without prejudice to Special Condition E (Allowance in respect of
security costs), throughout the twelfth relevant year and every
subsequent relevant year, the licensee shall set its prices for the
Standard Domestic Charge and the Domestic Economy 7 Charge so that,
except with the prior written consent of the Authority, the standing
charge, unit rate or rates and any other component part of those
charges shall not exceed the formula given in sub-paragraph (b),
Provided that if in the application of the formulae in paragraphs 7
and 9 in relevant year to :
the value of DSDt+1 in relation to the Standard Domestic Charge
exceeds
DSDt x (1 + (RPIt / 100 ) )
or the value of TSDt+1 in relation to the Standard Domestic Charge
exceeds
TSDt x (1+ (RPIt / 100 ) )
or the value of DE7t+1 in relation to the Domestic Economy 7 Charge
exceeds
DE7t x (1 + (RPIt / 100 ) )
or the value of TE7t+1 in relation to the Domestic Economy 7 Charge
exceeds
TE7t x (1+ (RPIt / 100 ) )
then the licensee may increase that Restricted Charge up to the level
allowed by the paragraphs 7 or 9 as appropriate.
(b) The formula referred to in paragraph (a) is :
RTCpt x (1+(RPIt/100)) x ((1+(Ft/100))/(1+(Fd/100)))
Where
RTCpt means each of the standing charge, unit rate or rates, and other
component parts of the relevant Restricted Charge, prevailing at the
end of relevant year t-1.
-69-
Generation, Supply Business, and Transmission Services Use of System Costs
- --------------------------------------------------------------------------
16. If the costs to the licensee of procuring or providing generation, supply
or transmission services use of system increase substantially in the
aggregate due to factors outside the licensee's control and for which the
licensee would not reasonably have been expected to have provided so that
the amount allowed for under the terms BSD and BE7 in the formulae given in
paragraphs 6 to 9 no longer remunerate the licensee appropriately, the
Authority may direct that, in the eleventh or any subsequent relevant year
(including any year to which paragraph 5 applies), the limits imposed by
paragraphs 6 to 9 shall be raised to the extent specified in the direction.
Fossil fuel levy
- ----------------
17. If at any time after the licensee has set its prices for a relevant year
the value of Ft is changed by an amount which is less than half a
percentage point in the value of the then prevailing rate for Ft, after
taking account of all other changes in the value of Ft since its prices
were set, the licensee shall not be required, solely on that account, to
change the prices it has set.
Reporting requirements
- ----------------------
18. Every three months, in each of the eleventh and subsequent relevant years,
the licensee shall submit to the Authority statements summarising the costs
of purchasing electricity for its supply business. Such statements shall be
in a form approved by the Authority, and shall as a minimum include total
and average costs under electricity purchase contracts for the supply
business, and that part to be attributed to the domestic sector, for the
relevant year to date and forecast for the relevant year as a whole.
Timing
- ------
19. (a) This paragraph applies where :
(i) a reduction has been or is to be made in charges for distribution
use of system or transmission network use of system;
(ii) the effect of the reduction is or would be, if the licensee did
not reduce its Restricted Charges, to cause the prices set by the
licensee to exceed the limits on prices imposed by this
Condition; and
(iii)the licensee reasonably expects further changes to be made to
the charges for distribution use of system or transmission
network use of system which will further alter the limits on
prices imposed by this Condition.
(b) Where this paragraph applies, the licensee may give notice to the
Authority:
(i) specifying the reduction in charges for distribution use of
system or transmission network use of system which have been or
are to be made;
(ii) describing the effect of the reduction on the limits on prices
imposed by this Condition; and
(iii)giving particulars of the further changes which it expects to be
made in charges for distribution use of system or transmission
network use of system, including particulars of the grounds for
that expectation.
-70-
(c) If the licensee gives such notice to the Authority, and the grounds
for the explanation given in the notice are reasonable, the licensee
shall be deemed not to be in breach (to the extent only that such
breach is attributable to the reduction in charges specified in the
notice) of any limit on prices imposed by this Condition during the
period beginning with the date on which the Authority receives the
notice and ending with the date specified in a direction given
pursuant to sub-paragraph (d) or, if no such direction is given, 28
days after the reduction in prices referred to in sub-paragraph (b)(i)
takes effect.
(d) The Authority may give a direction
(i) specifying the end of the period during which the licensee is
deemed not to be in breach of the limits on prices imposed by
this Condition on account of the change in charges specified in
the notice (which period may be shorter or longer than 28 days
from when the change in charges takes effect); and / or
(ii) requiring the licensee to make such reductions in its Restricted
Charges during such period as is specified in the direction as
will secure that the licensee makes no significant gain as a
result of its being deemed not to be in breach of any limit on
prices imposed by this Condition.
Interpretation
- --------------
20. In this Condition -
(a) all prices and revenue shall exclude value added tax (if any);
(b) where published prices do not include an allowance for the fossil
fuel levy, for the purposes of this condition such prices shall
be adjusted to include the relevant fossil fuel levy;
(c) any reference to the first relevant year means the relevant year
commencing 1 April 1990 and any reference to the second relevant
year and so on shall be construed accordingly;
(d) in addition to the definitions given within this Condition the
following term(s) shall have the following meaning :
"Standard Domestic Charge" means that charge determined by the
licensee during the tenth relevant year as specified for the
Yorkshire area in Column 2 of Annex A to this Condition;
"Domestic Economy 7 Charge" means that charge determined by the
licensee during the tenth relevant year as specified for the
Yorkshire area in Column 3 of Annex A to this Condition;
"Restricted Charges" means the Standard Domestic Charge and the
Domestic Economy 7 Charge taken together;
"Prompt Payment Discount" means any discount or reduction, given
in respect of the relevant year (quantified on the assumption of
3300 kWh annual consumption for a Standard Domestic Charge, and
on the basis of 6600 kWh annual consumption for a Domestic
Economy 7 Charge), for the prompt or timely payment of bills by
cash or
-71-
cheque, compared with the charge which would be made where
payment is not made promptly or on time.
"RPIt" means the percentage change (whether of positive or a
negative value) in the arithmetic average of the Retail Price
Index numbers published or determined with respect to each of the
six months July to December (inclusive) in relevant year t-1 and
the arithmetic average of the Retail Price Index numbers
published or determined with respect to the same months in
relevant year t-2.
Ft means the rate of the fossil fuel levy prevailing from time
to time
Fd means the fossil fuel levy rate prevailing at 31 March in
the previous relevant year. Hence for the purposes of the
eleventh relevant year, Fd means 0.3.
-72-
ANNEX A
The Restricted Charges
COLUMN 2 COLUMN 3
COLUMN 1 STANDARD DOMESTIC CHARGE DOMESTIC ECONOMY 7 CHARGE
-------- ------------------------ -------------------------
EASTERN AREA Domestic General Tariff: Table 2 Domestic Economy 7 Tariff: Table 2
EAST MIDLANDS AREA Standard Tariff Economy 7 Tariff
LONDON AREA General Purpose Rate (Quarterly) Economy 7 Rate (Quarterly)
MANWEB AREA Domestic `S' Economy 7
MIDLANDS AREA D1 Domestic Credit Meter Tariff D5 Domestic Economy 7 Tariff
NORTHERN AREA Standard Domestic Tariff (D1) Economy 7 Domestic Tariff (D1T)
NORWEB AREA D13 Domestic Tariff D56 Economy 7 Tariff
SEEBOARD AREA Standard Domestic Economy 7 Domestic
SOUTHERN AREA General Tariff (Quarterly) Economy 7 Tariff (Quarterly)
SOUTH WALES AREA Domestic Standard Tariff (Quarterly) Domestic Economy 7 Tariff (Quarterly)
SOUTH WESTERN AREA Domestic Tariff Economy 7 Tariff
YORKSHIRE AREA General Domestic (GD) Economy 7 (E7)
-73-
ANNEX B
Base Allowances
Pence per kWh (2000/01 prices)
COLUMN 2 COLUMN 3
COLUMN 1 BSD BE7
-------- -------- --------
EASTERN AREA 4.867 3.766
EAST MIDLANDS AREA 4.910 3.767
LONDON AREA 4.953 3.799
MANWEB AREA 5.158 3.956
MIDLANDS AREA 4.917 3.769
NORTHERN AREA 5.012 3.833
NORWEB AREA 4.935 3.799
SEEBOARD AREA 4.956 3.812
SOUTHERN AREA 4.961 3.805
SOUTH WALES AREA 5.128 3.893
SOUTH WESTERN AREA 5.010 3.833
YORKSHIRE AREA 4.968 3.808
-74-
ANNEX C
Peak loss adjustment factors
COLUMN 2 COLUMN 3
COLUMN 1 STANDARD DOMESTIC CHARGE DOMESTIC ECONOMY 7 CHARGE
-------- ------------------------ -------------------------
EASTERN AREA 1.0877 1.0875
EAST MIDLANDS AREA 1.0893 1.0891
LONDON AREA 1.0931 1.0928
MANWEB AREA 1.1487 1.1481
MIDLANDS AREA 1.0880 1.0876
NORTHERN AREA 1.0938 1.0936
NORWEB AREA 1.0933 1.0932
SEEBOARD AREA 1.0975 1.0973
SOUTHERN AREA 1.0870 1.0867
SOUTH WALES AREA 1.0915 1.0913
SOUTH WESTERN AREA 1.0839 1.0838
YORKSHIRE AREA 1.1016 1.1012
-75-
ANNEX D
Prompt payment discount weightings
COLUMN 2 COLUMN 3
COLUMN 1 WSD WE7
-------- --- ---
EASTERN AREA 0.902 0.886
EAST MIDLANDS AREA 1.000 1.000
LONDON AREA 1.000 1.000
MANWEB AREA 0.424 0.401
MIDLANDS AREA 1.000 1.000
NORTHERN AREA 0.223 0.263
NORWEB AREA 1.000 1.000
SEEBOARD AREA 1.000 1.000
SOUTHERN AREA 0.495 0.503
SOUTH WALES AREA 1.000 1.000
SOUTH WESTERN AREA 0.520 0.520
YORKSHIRE AREA 0.314 0.262
-76-
ANNEX E
Band blocks
COLUMN 2 COLUMN 3
COLUMN 1 B1SD B1E7
-------- ---- ----
EASTERN AREA 2283 2076
EAST MIDLANDS AREA 3300 3000
LONDON AREA 3300 3000
MANWEB AREA 3300 3000
MIDLANDS AREA 3300 3000
NORTHERN AREA 2272 1344
NORWEB AREA 3300 3000
SEEBOARD AREA 728 1096
SOUTHERN AREA 2809 3000
SOUTH WALES AREA 3300 3000
SOUTH WESTERN AREA 3300 3000
YORKSHIRE AREA 3300 3000
-77-
ANNEX F
Prepayment meter surcharge
COLUMN 2
COLUMN 1 (POUND)
-------- -------
EASTERN AREA 11.22
EAST MIDLANDS AREA 15.00
LONDON AREA 15.00
MANWEB AREA 15.00
MIDLANDS AREA 15.00
NORTHERN AREA 15.00
NORWEB AREA 15.00
SEEBOARD AREA 15.00
SOUTHERN AREA 15.00
SOUTH WALES AREA 15.00
SOUTH WESTERN AREA 15.00
YORKSHIRE AREA 15.00
-78-
SPECIAL CONDITION C: [NO LONGER USED]
- -------------------------------------------
-79-
SPECIAL CONDITION D: INFORMATION TO BE PROVIDED TO THE AUTHORITY IN
- -------------------------------------------------------------------------
CONNECTION WITH THE CHARGE RESTRICTION CONDITIONS
- ----------------------------------------------------
1. [No longer used]
2. [No longer used]
3. Not later than three months after the end of a relevant year the licensee
shall send the Authority a statement, in respect of that relevant year,
showing the specified items referred to in paragraph 5.
4. The statement referred to in the preceding paragraph shall be:
(a) accompanied by a report from the Auditors that in their opinion (i)
such statement fairly presents each of the specified items referred to
in paragraph 5 in accordance with the requirements of the charge
restriction conditions and (ii) the amounts shown in respect of each
of those specified items are in accordance with the licensee's
accounting records which have been maintained in respect of each of
the relevant separate business in accordance with standard condition
52 (Regulatory Accounts); and
(b) certified by a director of the licensee on behalf of the licensee that
to the best of his knowledge, information and belief having made all
reasonable enquiries:
(i) [No longer used]
(ii) there is no amount included in its calculations of allowed
security costs under Special Condition E (Allowance in respect of
security costs) which represents other than an amount permitted
under the charge restriction conditions to be so included;
(iii)no service has been treated as an excluded service which was not
properly so treated and no amount included in the revenues in
respect thereof represents other than bona fide consideration for
the provision of the excluded service to which it relates;
(iv) all amounts which should properly be taken into account for the
purposes of the charge restriction conditions have been taken
into account; and
(v) [No longer used].
5. The specified items to be contained in the statement referred to in
paragraph 3 shall be the following:
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(a) the information referred to at paragraph 8 of Special Condition E
(Allowance in respect of security costs);
(b) the statements and information referred to in paragraph A4 and B2 of
Schedule A;
6. Where the Authority issues directions in accordance with paragraph 9 of
Special Condition E (Allowance in respect of security costs) or paragraphs
A5 and B3 of Schedule A then such directions shall not have effect from a
date earlier than the commencement of the relevant year to which the
statement last furnished to the Authority pursuant to paragraph 3 prior to
the issue of the directions related, unless such statement (or the
accompanying report or certificate under paragraph 4) or any statement,
report or certificate in respect of an earlier relevant year was incorrect
or was misleading in any material respect.
7. Where the Authority issues such directions as are referred to in the
preceding paragraph the Authority may require the licensee to provide a
revised statement in respect of such of the specified items as may be
affected by the directions, and the licensee shall comply with such
request.
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SPECIAL CONDITION E: ALLOWANCE IN RESPECT OF SECURITY COSTS
- -----------------------------------------------------------
1. At any time during a security period, the licensee may give notice in
writing to the Authority suspending, with effect from the date of receipt
of the notice by the Authority, application of such of the charge
restriction conditions as may be specified in the notice for the unexpired
term of the security period.
2. At any time during a security period, the Authority may (having regard to
its duties under the Act or under the Utilities Act 2000) by means of
directions:
(a) suspend or modify for the unexpired term of the security period the
charge restriction conditions or any part or parts thereof; or
(b) introduce for the unexpired term of the security period new charge
restriction conditions;
(c) in either case, so as to make such provision as in the opinion or
estimation of the Authority is requisite or appropriate:
(i) to enable the licensee to recover by means of increased charges
an amount estimated as being equal to the licensee's allowed
security costs during such period; and
(ii) to ensure that such part of the amount referred to in
sub-paragraph (i) above as is estimated as being equal to the
allowed security costs incurred by the licensee as costs in its
supply business is recovered by appropriate equitable increases
in the charges made by the licensee in that business
and the licensee shall comply with the terms of any directions so issued.
3. At any time following a security period, the Authority may (following such
consultation with the licensee and others as the Authority may consider
appropriate) issue directions suspending or modifying the charge
restriction conditions or any part or parts thereof or replacing such
directions as may have been made during the security period and introducing
such new charge restriction conditions as in the opinion of the Authority
are appropriate in all the circumstances (including at the Authority's
discretion an appropriate adjustment having regard to any profit gained or
foregone by the licensee during the security period), and the licensee
shall comply with any directions so issued.
4. At any time within three months after the issue of directions by the
Authority under paragraph 3, the licensee may serve on the Authority a
disapplication request in respect of such of the charge restriction
conditions or any part or parts thereof as are specified in the request.
5. If within three months of the receipt by the Authority of the
disapplication request referred to in paragraph 4, the Authority has either
not agreed in writing to such disapplication request or has
-82-
not made a reference to the Competition Commission under Section 12 of the
Act relating to the modification of the charge restriction conditions, the
licensee may deliver one month's written notice to the Authority
terminating the application of the charge restriction conditions (or any
part or parts thereof) as were specified in the disapplication request.
6. Subject to paragraphs 7 and 9, the licensee shall in any relevant year be
entitled to recover an aggregate amount equal to its allowed security costs
in that year or (insofar as not previously recovered) any previous year, by
means of appropriate equitable increases on the charges made by the
licensee in its supply business.
7. Paragraph 6 shall not apply in so far as such allowed security costs:
(a) were otherwise recovered by the licensee; or
(b) were taken into account by the Authority in setting charge restriction
conditions by means of directions issued under paragraph 3 above.
8. The licensee shall following the end of each relevant year provide to the
Authority, as being one of the specified items to be contained in the
statement referred to at paragraph 4 of Special Condition D (Information to
be provided to the Authority in connection with the charge restriction
conditions), details in respect of that relevant year of:
(a) the amount of the licensee's allowed security costs; and
(b) the aggregate amounts charged under paragraph 6 on account of the
licensee's allowed security costs; and
(c) the bases and calculations underlying the increases in charges made by
the licensee in its supply business under paragraph 6.
9. Where the Authority is satisfied that the licensee has recovered amounts in
excess of the allowed security costs, the Authority may issue directions
requiring the licensee to take such steps as may be specified to reimburse
customers of the supply business for the excess amounts charged to them,
and the licensee shall comply with any directions so issued provided that
if the excess amounts relate to allowed security costs paid to any
authorised electricity operator, the licensee shall not be obliged to make
any such reimbursement unless and until it has recovered such costs.
10. No amounts charged by the licensee under this Condition (whether or not
subsequently required to be reimbursed) shall be taken into account for the
purpose of applying the supply charge restriction provisions of Special
Condition B (Restraints on Supply Charges).
-83-
11. In this Condition:
"allowed security cost"
shall have the meaning ascribed to that term in the Fuel
Security Code.
"security period"
means a period commencing on the date on which any direction
issued by the Secretary of State under Section 34(4)(b) of
the Act enters effect and terminating on the date (being not
earlier than the date such direction, as varied, is revoked
or expires) as the Authority, after consultation with such
persons (including without limitation, licence holders
liable to be principally affected) as he shall consider
appropriate, may with the consent of the Secretary of State
by notice to all licence holders determine after having
regard to the views of such persons.
-84-
SPECIAL CONDITION F: DURATION OF CHARGE RESTRICTION CONDITIONS
- --------------------------------------------------------------
1. The charge restriction conditions shall apply so long as this licence
continues in force but shall cease to have effect (in whole or in part, as
the case may be) if the licensee delivers to the Authority a disapplication
request made in accordance with paragraph 2 and:
(a) the Authority agrees in writing to the disapplication request; or
(b) their application (in whole or in part) is terminated by notice given
by the licensee in accordance with either paragraph 4 or paragraph 5.
2. A disapplication request pursuant to this Condition shall (a) be in writing
addressed to the Authority, (b) specify the charge restriction conditions
(or any part or parts thereof) to which the request relates and (c) state
the date from which the licensee wishes the Authority to agree that the
specified charge restriction conditions shall cease to have effect.
3. Save where the Authority otherwise agrees, no disapplication following
delivery of a disapplication request pursuant to this Condition shall have
effect earlier than that date which is the later of:
(a) a date being not less than 18 months after delivery of the
disapplication request; and
(b) 31st March 2002.
4. If the Authority has not made a reference to the Competition Commission
under Section 12 of the Act relating to the modification of the charge
restriction conditions before the beginning of the period of 12 months
which will end with the disapplication date, the licensee may deliver
written notice to the Authority terminating the application of such charge
restriction conditions (or any part or parts thereof) as are specified in
the disapplication request with effect from the disapplication date or a
later date.
5. If the Competition Commission makes a report on a reference made by the
Authority relating to the modification of the charge restriction conditions
(or any part or parts thereof) specified in the disapplication request and
such report does not include a conclusion that the cessation of such charge
restriction conditions, in whole or in part, operates or may be expected to
operate against the public interest, the licensee may within 30 days after
the publication of the report by the Authority in accordance with Section
13 of the Act deliver to the Authority written notice terminating the
application of such charge restriction conditions with effect from the
disapplication date or later.
6. A disapplication request or notice served under this Condition may be
served in respect of a specified geographic area.
-85-
SCHEDULE A. SUPPLEMENTARY PROVISIONS OF THE CHARGE RESTRICTION CONDITIONS
Part A. Principles for Attribution
- ----------------------------------
General Principles
- ------------------
A1. Where for the purposes of the charge restriction conditions, a share of
costs borne by the licensee requires to be attributed to any part of the
market, the licensee shall make that attribution on a basis which ensures
that no more than a fair proportion of those costs, reflecting the costs
incurred by the licensee in supplying that part of the market, are so
attributed.
A2. The following paragraphs of this Part of Schedule A are without prejudice
to paragraph A1.
Fossil Fuel Levy and payments in lieu thereof
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A3. The fossil fuel levy requiring to be attributed to supplies to domestic
customers shall be attributed on the basis of the amount of the levy
incorporated in the prices actually charged or to be charged by the
licensee on supplies to such customers in the relevant year in respect of
which the attribution falls to be made. Amounts in lieu of the fossil fuel
levy in respect of purchases of electricity other than leviable electricity
requiring to be calculated and then attributed to supplies to domestic
customers in any relevant year for the purposes of Special Condition B
(Restraints on Supply Charges) shall:
(a) be calculated as being such amounts as correspond to the lesser of:
(i) the premium actually payable (measured on an accruals basis) by
the licensee during the relevant year on purchases of electricity
other than leviable electricity as representing the benefit to
the licensee of being able to treat such electricity as being
other than leviable electricity for the purposes of Section 33 of
the Act and Regulations thereunder; and
(ii) the additional amount that would have been payable (measured on
an accruals basis) by the licensee in respect of the fossil fuel
levy pursuant to Regulations made under Section 33 of the Act had
such electricity been leviable electricity; and
(b) be attributed to supplies to domestic customers pro rata to the amount
which the quantity supplied to domestic customers bears to the total
quantity supplied (in each case in the relevant year in respect of
which the attribution falls to be made) or on the basis of the amount
referred to in paragraph (a) incorporated in the prices actually
charged or to be charged by the licensee on supplies to such customers
in the relevant year in respect of which the attribution falls to be
made or on such
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other basis of attribution as the licensee shall previously have
agreed with the Authority.
Information to be provided by licensee
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A4. The licensee shall following the end of each relevant year furnish to the
Authority, as being one of the specified items to be included in the
statement referred to at paragraph 3 of Special Condition D (Information to
be provided to the Authority in connection with charge restriction
conditions), a statement confirming that the calculation of amounts in lieu
of the fossil fuel levy and the attribution of the fossil fuel levy and
amounts in lieu thereof was made in accordance with the provisions of this
Part of Schedule A, accompanied (where appropriate) by:
(a) a statement of the total amounts attributed to domestic customers ;
and
(b) copies of statements prepared under paragraph 1 of Special Condition D
(Information to be provided to the Authority in connection with charge
restriction conditions) and an explanation of the basis therefor.
A5. Where the Authority is satisfied that the basis of calculation or
attribution (as the case may be) used by the licensee is not in conformity
with paragraph A1, the Authority may issue directions specifying an
alternative basis of calculation or attribution, and the basis of
calculation or attribution by the licensee (as the case may be) shall be
adjusted accordingly with effect from the date of issue of the directions
or (subject to paragraph 6 of Special Condition D (Information to be
provided to the Authority in connection with charge restriction
conditions)) such other date as may be specified in those directions.
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Part B. Excluded services
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B1. Subject to paragraph B3, a service provided by the licensee as part of its
supply business may be treated as an excluded service in so far as it
consists of the provision of services for the specific benefit of customers
requesting the same and not made available by the licensee as a normal part
of such business. For the avoidance of doubt, the provision of facilities
for prepayment may not be treated as an excluded service.
Information to be provided to the Authority
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B2. The licensee shall following the end of each relevant year furnish to the
Authority, as being one of the specified items to be included in the
statement referred to at paragraph 3 of Special Condition D (Information to
be provided to the Authority in connection with charge restriction
conditions), details specifying separately the nature of all services
provided as part of its or supply business by the licensee and treated as
excluded services by the licensee during the course of such year and
stating the revenues derived by the licensee in respect of each such
service so treated.
Directions
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B3. Where the Authority is satisfied that in light of the principles set out in
paragraph B1 any service treated by the licensee as an excluded service
should not be so treated, the Authority shall issue directions to that
effect, and the service or services specified in the directions shall cease
to be treated as excluded services from the date of issue of the directions
or (subject to paragraph 6 of Special Condition D (Information to be
provided to the Authority in connection with charge restriction
conditions)) such other date as may be specified in the directions.
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SPECIAL CONDITION G: RESTRICTION ON SELF-SUPPLY
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1. The licensee shall not at any time after this Condition comes into effect:
(a) enter into any new electricity purchase contract or other equivalent
agreement or arrangement (directly or indirectly) with an electricity
generator which is an affiliate or a related undertaking of the
licensee for the benefit of that part of the licensee's business which
comprises the supply of electricity to former designated customers
within the supply services area specified in Schedule 3; or
(b) make or permit (without the prior consent of the Authority) any
material variation of any electricity purchase contract or other
equivalent agreement or arrangement entered into for the benefit of
that part of the licensee's business referred to in paragraph 1(a) to
which an affiliate or a related undertaking of the licensee is a
party.
2. For the purpose of this Condition:
"former designated customer" means a customer who would have fallen
within the definition of "designated customer" (as defined in the
public electricity supply licence previously granted to Yorkshire
Electricity Group Plc in the form of that licence in force on 27
September 2001) and who is supplied by the licensee.
3. Subject to paragraph 4, the Authority may in writing direct that this
Condition shall cease to have effect in this licence on:
(a) the date on which any of Special Conditions B to F is first modified
by the Authority; or
(b) any date thereafter which is specified in a direction given by the
Authority to the licensee for the purpose of this paragraph.
4. The Authority may not give a direction under paragraph 3 unless it has
first:
(a) given not less than 28 days notice of its intention to give the
direction in such a manner as the Authority considers appropriate for
the purpose of bringing the notice to the attention of persons likely
to be affected by it;
(b) sent a copy of such notice to the licensee, all other licensed
suppliers, and the Consumer Council; and
(c) duly considered all objections or representations received by the
Authority after the date of publication of the notice which are not
withdrawn.
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SCHEDULE 1
SPECIFIED AREA
Great Britain
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SCHEDULE 2
REVOCATION
1. The Authority may at any time revoke the licence by giving no less than 30
days' notice (24 hours' notice, in the case of a revocation under
sub-paragraph 1(f)) in writing to the licensee:
(a) if the licensee agrees in writing with the Authority that the licence
should be revoked;
(b) if any amount payable under standard condition 4 (Payments by the
licensee to the Authority) is unpaid 30 days after it has become due
and remains unpaid for a period of 14 days after the Authority has
given the licensee notice that the payment is overdue - provided that
no such notice shall be given earlier than the sixteenth day after the
day on which the amount payable became due;
(c) if the licensee fails:
(i) to comply with a final order (within the meaning of section 25 of
the Act) or with a provisional order (within the meaning of that
section) which has been confirmed under that section and (in
either case) such failure is not rectified to the satisfaction of
the Authority within three months after the Authority has given
notice in writing of such failure to the licensee - provided that
no such notice shall be given by the Authority before the
expiration of the period within which an application under
section 27 of the Act could be made questioning the validity of
the final or provisional order or before the proceedings relating
to any such application are finally determined; or
(ii) to pay any financial penalty (within the meaning of section 27A
of the Act) by the due date for such payment and such payment is
not made to the Authority within three months after the Authority
has given notice in writing of such failure to the licensee -
provided that no such notice shall be given by the Authority
before the expiration of the period within which an application
under section 27E of the Act could be made questioning the
validity or effect of the financial penalty or before the
proceedings relating to any such application are finally
determined;
(d) if the licensee fails to comply with:
(i) an order made by the Secretary of State under section 56, 73, 74
or 89 of the Fair Trading Act 1973; or
(ii) an order made by the court under section 34 of the Competition
Act 1998;
(e) if the licensee:
(i) has ceased to carry on the supply business;
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(ii) has not commenced carrying on the supply business within 5 years of
the date on which the licence comes into force;
(f) if the licensee:
(i) is unable to pay its debts (within the meaning of section 123(1)
or (2) of the Insolvency Act 1986, but subject to paragraphs 2
and 3 of this schedule) or has any voluntary arrangement proposed
in relation to it under section 1 of that Act or enters into any
scheme of arrangement (other than for the purpose of
reconstruction or amalgamation upon terms and within such period
as may previously have been approved in writing by the
Authority);
(ii) has a receiver (which expression shall include an administrative
receiver within the meaning of section 251 of the Insolvency Act
1986) of the whole or any material part of its assets or
undertaking appointed;
(iii)has an administration order under section 8 of the Insolvency
Act 1986 made in relation to it;
(iv) passes any resolution for winding-up other than a resolution
previously approved in writing by the Authority; or
(v) becomes subject to an order for winding-up by a court of
competent jurisdiction; or
(g) if the licensee is convicted of having committed an offence under section
59 of the Act in making its application for the licence.
5. For the purposes of sub-paragraph 1(f)(i), section 123(1)(a) of the
Insolvency Act 1986 shall have effect as if for "(pound)750" there was
substituted "(pound)100,000" or such higher figure as the Authority may
from time to time determine by notice in writing to the licensee.
6. The licensee shall not be deemed to be unable to pay its debts for the
purposes of sub-paragraph 1(f)(i) if any such demand as is mentioned in
section 123(1)(a) of the Insolvency Act 1986 is being contested in good
faith by the licensee with recourse to all appropriate measures and
procedures or if any such demand is satisfied before the expiration of such
period as may be stated in any notice given by the Authority under
paragraph 1.
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SCHEDULE 3
SUPPLY SERVICES AREA
The supply services area shall comprise that area which is outlined on the
attached map and shall additionally include those premises listed in List A (the
"Additional Premises") but shall not include those premises listed in List B
(the "Excluded Premises").
A: ADDITIONAL PREMISES
Address Grid Ref:
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Mine SE 6040 4045
Stillingfleet Moor
Stillingfleet
Near York
YO4 6HX
Mine SE 6475 4431
North Selby
New Road
Escrick
YO4 6EY
B: EXCLUDED PREMISES
Address Grid Ref:
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None
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