EXHIBIT 4.5
SCOTTISHPOWER ENERGY RETAIL LIMITED CONFORMED
SUPPLY LICENCE
--------------------------------------------------------------------------------
1. This conformed electricity supply licence has been produced by
Shepherd & Wedderburn from materials supplied by ScottishPower. It
is intended for use by ScottishPower personnel as a convenient
reference tool, but is not a substitute for the definitive texts
from which it has been produced.
2. The conformed licence is intended to consolidate (a) the
provisions of annexe 5 to the licensing scheme made by the
Secretary of State on 28 September 2001 in relation to Scottish
Power UK plc and Manweb plc (the "scheme") and (b) the standard
conditions for supply licences determined by the Secretary of
State on 27 September 2001 as brought into effect in relation to
ScottishPower Energy Retail Limited by the scheme.
3. Those standard conditions which, in accordance with Part II of the
licence, are not in effect have been included in this document for
completeness, but are shown in italics.
4. The consolidated standard conditions set out in this document
record, using strike-through and/or underline, the effects of any
amendments which have been made to the standard conditions in
accordance with Part III of the licence.
--------------------------------------------------------------------------------
[LETTERHEAD OF SHEPHERD & XXXXXXXXXX XX]
CONTENTS
PRELIMINARY
-----------
PART I. TERMS OF THE LICENCE 5
PART II. THE STANDARD CONDITIONS 7
PART III. AMENDED STANDARD CONDITIONS 9
CONSOLIDATED STANDARD CONDITIONS
--------------------------------
SECTION A. INTERPRETATION, APPLICATION AND PAYMENTS 10
2. Application of Section C (Domestic Supply Obligations) 34
3. Application of Section D (Supply Services Obligations) 37
4. Payments by the Licensee to the Authority 40
SECTION B. GENERAL
5. Compliance with Grid Codes 42
6. Compliance with Distribution Codes 43
7. Duty to Offer Terms for Xxxxx Xxxxxxxxx 00
0X. Not Used 46
8. Settlement Agreement for Scotland 47
8A. Compliance with Trading Code in Scotland 48
8B. Generation Security Standard 49
9. Compliance with CUSC 55
10. Balancing and Settlement Code and XXXX Implementation 58
11. Change Co-ordination for XXXX 62
12. Pooling and Settlement Agreement Run-off 63
12A. Prohibition of Discrimination in Selling Electricity 64
12B. Prohibition of Cross-Subsidies 65
13. Change Co-ordination for the Utilities Act 2000 66
1
14. Security Arrangements 68
15. Security and Safety of Supplies 69
16. Procedures for the Detection and Prevention of Theft or Abstraction
of Electricity, Damage and Meter Interference 71
17. Reading and Inspection of Meters 73
18. Licensee's Apparatus on Customer's Side of Meter 74
19. Provision of Information to the Authority 75
20. The Master Registration Agreement 76
21. Publication of Information to Customers 77
22. Domestic Premises 78
22A. Restriction or Revocation: Securing Continuity of Supply 80
23. Payments Received in Relation to Standards of Performance 82
24. Code of Practice on Procedures with Respect to Site Access 83
25. Efficient Use of Electricity 84
26. Record of and Report on Performance 86
27. Preparation, Review of and Compliance with Customer Service Codes 88
28. Deemed Contracts 90
29. Supplier of Last Resort 93
29A. Supplier of Last Resort Supply Payments 97
29B. Provision for Termination upon a Direction 100
30. Not used 101
SECTION C. DOMESTIC SUPPLY OBLIGATIONS
31. Interpretation of Section C 102
32. Duty to Supply Domestic Customers 104
33. Last Resort Supply: Security for Payments 106
34. Not used 109
35. Code of Practice on Payment of Bills and Guidance for Dealing
with Customers in Difficulty 110
36. Code of Practice on the Use of Prepayment Meters 112
37. Provision of Services for Persons who are of Pensionable Age
or Disabled or Chronically Sick 114
38. Provision of Services for Persons who are Blind or Deaf 116
2
39. Complaint Handling Procedure 117
40. Information Given to Domestic Customers 118
41. Terms for Supply of Electricity Incompatible with Licence Conditions 119
42. Domestic Supply Contracts 120
43. Contractual Terms - Methods of Payment 122
44. Notification of Terms 124
45. Security Deposits 127
46. Termination of Contracts on Notice 129
47. Termination of Contracts in Specified Circumstances 131
48. Marketing of Electricity to Domestic Customers 134
49. Assignment of Outstanding Charges 140
50. Modification of Provisions under Standard Conditions 46 (Termination
of Contracts on Notice) and 49 (Assignment of Outstanding Charges) 142
SECTION D. SUPPLY SERVICES OBLIGATIONS 144
51. Interpretation of Section D 144
52. Regulatory Accounts 146
52A. Change of Financial Year 152
53. Basis of Charges for Top-up and Standby, Exempt Supply Services
and Prepayment Meter Services: Requirements for Transparency 154
53A. Non-discrimination in the Provision of Top-up or Standby, Exempt
Supply Services and Prepayment Meter Services 157
53B. Requirement to Offer Terms for Top-up and Standby, Exempt Supply
Services and Prepayment Meter Services 158
53C. Functions of the Authority 162
54. Duration of Standard Condition 53B (Requirement to Offer Terms for
Top-up and Standby, Exempt Supply Services and Prepayment Meter Services) 164
SPECIAL CONDITIONS AND SCHEDULES
--------------------------------
PART IV. SPECIAL CONDITIONS 166
A: Interpretation and Application 166
B: Definitions 169
3
C: Restraints on Supply Charges in England and Wales 172
D: Information to be provided to the Authority in connection with the
charge restriction conditions 195
E: Allowances in respect of Security Costs 197
F: Duration of Charge Restriction Conditions 200
Schedule A: Supplementary Provisions Of The Charge Restriction 202
G: Definitions 205
H: Restraints on Supply Charges in Scotland 207
I: Information to be provided to the Authority in connection with
the Charge Restriction Conditions 229
J: Allowances in respect of Security Costs 231
K: Duration of Charge Restriction Conditions 235
Schedule B: Supplementary Provisions of the Charge Restriction Conditions 237
Part A. Principles for Attribution 237
Part B. Excluded services 239
L: Restriction on self-supply 240
SCHEDULE 1 - SPECIFIED AREA 242
SCHEDULE 2 - REVOCATION 243
SCHEDULE 3A - MANWEB SUPPLY SERVICES AREA 246
SCHEDULE 3B - SCOTTISH POWER SUPPLY SERVICES AREA 247
CONSENTS AND DIRECTIONS
-----------------------
(01.10.01) Direction issued under Standard Condition 33 of this licence 249
4
PRELIMINARY
PART I. TERMS OF THE LICENCE
1. This licence, treated as granted under section 6(1)(d) of the
Electricity Xxx 0000 ("the Act"), authorises Scottish Power Energy
Retail Limited (a company registered in Scotland under number SC190287
("the licensee") whose registered office is situated at 0 Xxxxxxxx
Xxxx, Xxxxxxxxx Xxxxxx, Xxxxxxx X0 0XX, 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 r 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 Electricity Xxx 0000 (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 Xxx
0000, 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 Xxx
0000.
5
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
Manweb supply services area" is the area specified in Schedule 3A
hereto and the "ScottishPower supply services area" is the area
specified in Schedule 3B hereto.
Pursuant to a licensing scheme made by the Secretary of State under
Part II of Schedule 7 to the Utilities Xxx 0000 on 28/th/ September
2001 this licence was made and is treated as granted under section
6(l)(d) of the Electricity Xxx 0000.
6
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
------------------------------------------------------------------------------------------------------------------
7
--------------------------------------------------------------------------------------------------------
Section A Section B Section C Section D
--------------------------------------------------------------------------------------------------------
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 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.
8
PART III. AMENDED STANDARD CONDITIONS
1. Standard condition 12B (Prohibition of Cross-Subsidies) shall be
amended by the addition of the following text as a new paragraph 2 of
that condition:
"2. Nothing which the licensee is obliged to do or not to do
pursuant to this licence or any other document which grants a
licence to the licensee under the Act shall be regarded as a
cross-subsidy for the purposes of this condition."
9
CONSOLIDATED STANDARD CONDITIONS
SECTION A. INTERPRETATION, APPLICATION AND PAYMENTS
Condition 1. Definitions and Interpretation
1. In these standard conditions, unless the context otherwise requires:
the "Act" means the Electricity Xxx 0000.
"affiliate" in relation to any person means any
holding company of such person, any
subsidiary of such person or any
subsidiary of a holding company of such
person, in each case within the meaning
of sections 736, 736A and 736B of the
Companies Xxx 0000.
"alternative accounting rules" for the purposes of standard condition
52 (Regulatory Accounts) only, has the
meaning given in that condition.
"Application Regulations" means the Electricity (Applications for
Licences and Extensions and Restrictions
of Licences) Regulations 2001.
"auditors" means the licensee's auditors for the
time being holding office in accordance
with the requirements of the Companies
Xxx 0000.
"authorised" in relation to any business or activity
means authorised by licence granted or
treated as granted under section 6 or by
exemption granted under section 5 of the
Act.
10
"authorised electricity operator" means any person (other than the
licensee) who is authorised to
generate, transmit, distribute, or
supply electricity and shall include
any person who has made an
application to be so authorised
which application has not been
refused and any person transferring
electricity to or from or across an
interconnector or Scottish
interconnection or who has made an
application for use of an
interconnector or Scottish
interconnection which has not been
refused.
the "Authority" means the Gas and Electricity
Markets Authority established under
section 1 of the Utilities Xxx 0000.
"bilateral agreement" for the purposes of standard
condition 9 (Compliance with CUSC)
only, has the meaning given in that
condition.
"xxxx" includes an invoice, account,
statement or any other instrument of
the like character.
"BSC" means the code referred to in
standard condition 10 (Balancing and
Settlement Code and XXXX
Implementation) as from time to time
modified.
"BSC Framework Agreement" for the purposes of standard
condition 10 (Balancing and
Settlement Code and XXXX
Implementation) only, has the
meaning given in
11
that condition.
"charges for the supply of electricity" includes, in relation to the
licensee and a particular
customer, charges made by the
licensee in respect of the
provision to that customer of an
electricity meter and cognate
expressions shall be construed
accordingly;
"construction agreement" for the purposes of standard
condition 9 (Compliance with CUSC)
only, has the meaning given in
that condition.
"Consumer Council" means the Gas and Electricity
Consumer Council as established by
section 2 of the Utilities Xxx
0000.
"contract" does not include a deemed contract
but does include a contract which
by virtue of paragraph 23 of
Schedule 7 to the Utilities Act
2000 is deemed to have been made
and "contractual" shall be
construed accordingly.
"core industry documents" for the purposes of standard
condition 9 (Compliance with CUSC)
only, has the meaning given in
that condition; and for the
purposes of standard conditions 10
(Balancing and Settlement Code and
XXXX Implementation) and 11
(Change Co-ordination for XXXX)
only, has the meaning given in
standard condition 10.
"current cost assets" for the purposes of standard
condition 52 (Regulatory Accounts)
only, has the meaning given in
that condition.
12
"CUSC" for the purposes of standard
condition 9 (Compliance with CUSC)
only, has the meaning given in that
condition.
"CUSC Framework Agreement" for the purposes of standard
condition 9 (Compliance with CUSC)
only, has the meaning given in that
condition.
"customer" means any person supplied or
requiring to be supplied with
electricity at any premises in Great
Britain but shall not include any
authorised electricity operator in
its capacity as such.
"data aggregation" means services comprising any or all
of the following:
the collation and summation of meter
reading data (whether actual or
estimated) and of data in respect of
the consumption of electricity at
premises which receive an unmetered
supply, and the delivery of such
data to any person for settlement
purposes.
"data processing" means services comprising any or all
of the following:
the processing, validation, and
estimation of meter reading data,
and the creation, processing and
validation of data in respect of the
consumption of electricity at
premises which receive an unmetered
supply, and the delivery of such
data to any person for the purpose
of data
13
aggregation.
"data retrieval" means services comprising any or
all of the following:
the retrieval and verification of
meter reading data from electricity
meters and the delivery of such
data to any person for the purpose
of data processing.
"data services" means any one or more of the
services of data retrieval, data
processing and data aggregation.
"date of the domestic supply contract" or the purposes of Section C only,
has the meaning given in standard
condition 31 (Interpretation of
Section C).
"deemed contract" means a contract which by virtue of
paragraph 3 of Schedule 6 to the
Act is deemed to have been made but
does not include a contract which
by virtue of paragraph 23 of
Schedule 7 to the Utilities Act
2000 is deemed to have been made.
"deemed contract scheme" means the scheme made by the
licensee under paragraph 3 of
Schedule 6 to the Act.
"deposit" for the purposes of Section C only,
has the meaning given in standard
condition 31 (Interpretation of
Section C).
"the disapplication date" has the meaning given in standard
condition 54 (Duration of Standard
Condition 53B (Requirement to Offer
Terms for Top-up and Standby,
Exempt Supply Services and
14
Prepayment Meter Services)).
"Distribution Code" means in relation to any licensed
distributor the distribution code
required to be prepared by such
distributor and approved by the
Authority as from time to time
revised with the approval of the
Authority.
"distribution licence" means a distribution licence
granted or treated as granted under
section 6(1)(c) of the Act.
"distribution services area" means an area determined by the
Authority in a direction issued to
a licensed distributor under
standard condition 2 (Application
of Section C (Distribution Services
Obligations)) of its distribution
licence.
"distribution system" means the system consisting (wholly
or mainly) of electric lines owned
or operated by an authorised
distributor and used for the
distribution of electricity from
grid supply points or generation
sets or other entry points (and
bulk supply points in Scotland) to
the points of delivery to customers
or authorised electricity operators
or any transmission company within
Great Britain in its capacity as
operator of a transmission system
and includes any remote
transmission assets (owned by a
transmission licensee within
England and Wales) operated by such
distributor and any electrical
plant, meters and metering
equipment owned or operated by such
distributor in connection with the
distribution of electricity,
15
but shall not include any part of a
transmission system.
"domestic customer" means a customer supplied or requiring
to be supplied with electricity at
domestic premises (but excluding such
customer in so far as he is supplied or
requires to be supplied at premises
other than domestic premises).
"domestic premises" means premises at which a supply is
taken wholly or mainly for domestic
purposes.
"domestic supply contract" has the meaning given in standard
condition 42 (Domestic Supply
Contracts).
"Domestic Supply Direction" has the meaning given in standard
condition 2 (Application of Section C
(Domestic Supply Obligations)).
"effective time" for the purposes of Section B only, has
the meaning given in standard condition
12 (Pooling and Settlement Agreement
Run-off).
"electricity supplier" means any person authorised to supply
electricity.
"estimated costs" for the purposes of standard condition 4
(Payments by the Licensee to the
Authority) only, has the meaning given
in that condition.
"exempt supplier" for the purposes of Section D only, has
the meaning given in standard condition
51 (Interpretation of Section D).
16
"exempt supply services" for the purposes of Section D only, has
the meaning given in standard condition
51 (Interpretation of Section D).
"financial year" means, subject to standard condition 52A
(Change of Financial Year) (where
applicable), a period of 12 months
beginning on 1st April of each year and
ending on 31st March of the following
calendar year.
"fixed term period" for the purposes of Section C only, has
the meaning given in standard condition
31 (Interpretation of Section C).
"Fuel Security Code" for the purposes of Section B only, has
the meaning given in standard condition
14 (Security Arrangements).
"generation security standard" for the purposes of standard condition
8B (Generation Security Standard) only,
has the meaning given in that condition.
"generation set" means any plant or apparatus for the
production of electricity and shall
where appropriate include a generating
station comprising more than one
generation set.
"goods or services" includes electric lines and electric
plant, and goods or services designed or
calculated to promote the efficient use
of electricity, but excludes meters,
meter maintenance and prepayment
systems, data retrieval, data
17
processing and data aggregation.
"Grid Code" means the Grid Code which each
transmission company is required to
prepare and have approved by the
Authority as from time to time revised
with the approval of the Authority.
"grid supply point" means any point at which electricity is
delivered from a transmission system to
any distribution system.
"the handbook" for the purposes of standard condition
52 (Regulatory Accounts) only, has the
meaning given in that condition.
"holding company" means a holding company within the
meaning of sections 736, 736A and 736B
of the Companies Xxx 0000.
"in-area supply business" for the purposes of standard condition
52 (Regulatory Accounts) only, has the
meaning given in that condition.
"industry framework document" for the purposes of standard condition
13 (Change Co-ordination for the
Utilities Act 2000) only, has the
meaning given in that condition.
"information" includes any documents, accounts,
estimates, returns, records or reports
and data in written, verbal or
electronic form and information in any
form or medium whatsoever (whether or
not
18
prepared specifically at the request of
the Authority or the Consumer Council)
of any description specified by the
Authority.
"interconnection" means:
the 275 kV and 400 kV circuits between
and including the associated switchgear
at Harker sub-station in Cumbria and the
associated switchgear at Strathaven
sub-station in Lanarkshire;
the 275kV transmission circuit between
and including the associated switchgear
at Cockenzie in East Lothian and the
associated switchgear at Stella in Tyne
and Wear; and
the 400kV transmission circuit between
and including the associated switchgear
at Torness in East Lothian and the
associated switchgear at Stella in Tyne
and Wear
all as existing at the date on which the
transmission licence comes into force as
from time to time maintained, repaired
or renewed, together with any
alteration, modification or addition
(other than maintenance, repair or
renewal) which is primarily designed to
effect a permanent increase in one or
more particular interconnection
capacities as they exist immediately
prior to such alteration, modification
or addition and as from time to
19
time maintained, repaired or renewed;
and
the 132kV transmission circuit between
and including (and directly
connecting) the associated switchgear
at Chapelcross and the associated
switchgear at Harker sub-station in
Cumbria; and
the 132kV transmission circuit between
and including (and connecting, via
Junction V) the associated switchgear
at Chapelcross and the associated
switchgear at Harker sub-station in
Cumbria
all as existing at the date on which
the transmission licence comes into
force and as from time to time
maintained, repaired or renewed.
"interconnector(s)" means the electric lines and
electrical plant and meters owned or
operated by a transmission company
solely for the transfer of electricity
to or from a transmission system into
or out of England and Wales.
"the last resort supply direction" has the meaning given in standard
condition 29 (Supplier of Last
Resort).
"licensed distributor" means any holder of a distribution
licence.
"licensed supplier" means any holder of a supply licence.
20
"marketing activities" for the purposes of standard condition
48 (Marketing of Electricity to
Domestic Customers) only, has the
meaning given in that condition.
"Master Registration Agreement" means the agreement of that title
referred to and comprising such
matters as are set out in standard
condition 37 (The Metering Point
Administration Service and the Master
Registration Agreement) of a
distribution licence.
"metering equipment" includes any meter and any associated
equipment which materially affects the
operation of that meter.
"modification" has the meaning given in standard
condition 8B (Generation Security
Standard).
"multi-site contract" for the purposes of standard condition
22 (Domestic Premises) only, has the
meaning given in that condition.
"new termination date" for the purposes of standard condition
48 (Marketing of Electricity to
Domestic Customers) only, has the
meaning given in that condition.
"non-domestic customer" means a customer who is not a domestic
customer.
21
"non-half-hourly meter" means any electricity meter other than one
which is configured to record the quantity of
electricity (calculated in kWh) supplied to
premises during each half-hour period of
supply.
"the other supplier" has the meaning given in standard condition 29
(Supplier of Last Resort).
"out-of-area supply
business" for the purposes of standard condition 52
(Regulatory Accounts) only, has the meaning
given in that condition.
"owned" in relation to an electricity meter or other
property includes leased and cognate
expressions shall be construed accordingly.
"participating interest" has the meaning given by section 260 of the
Companies Xxx 0000 as amended by section 22 of
the Companies Xxx 0000.
"Pooling and Settlement
Agreement" means the agreement of that title approved by
the Secretary of State as from time to time
amended.
"prepayment meter services" has the meaning given in standard condition
53B (Requirement to Offer Terms for Top-up and
Standby, Exempt Supply Services and Prepayment
Meter Services).
22
"previous supplier" for the purposes of standard condition 49
(Assignment of Outstanding Charges) only, has
the meaning given in that condition.
"principal terms" means, in respect of any form of contract or
deemed contract, those terms which relate to:
(a) charges for the supply of electricity;
(b) any requirement to pay charges for the
supply of electricity by prepayment
through a prepayment meter;
(c) any requirement for a security deposit;
(d) the duration of the contract or deemed
contract; and
(e) the rights to terminate the contract
(including any obligation to pay a
termination fee), or the circumstances
in which a deemed contract will expire;
and such other terms as may reasonably be
considered significantly to affect the
evaluation by the customer of the contract to
supply electricity to the customer.
"Priority Service Register" for the purposes of standard condition 37
(Provision of Services for Persons who are of
Pensionable Age or Disabled or Chronically
Sick) only, has the meaning given in that
condition.
"qualifying customer" for the purposes of standard condition 8B
23
(Generation Security Standard) only, has the
meaning given in that condition.
"regulatory accounts" for the purposes of standard condition 52
(Regulatory Accounts) only, has the meaning
given in that condition.
"related undertaking" in relation to any person means any
undertaking in which such person has a
participating interest.
"relevant constraints" for the purposes of standard condition 8B
(Generation Security Standard) only, has the
meaning given in that condition.
"relevant customer" for the purposes of Section B only, has the
meaning given in standard condition 23
(Payments Received in Relation to Standards of
Performance).
"relevant customers with
payment difficulties" for the purposes of standard condition 35
(Code of Practice on Payment of Bills and
Guidance for Dealing with Customers in
Difficulty) only, has the meaning given in
that condition.
"relevant distributor" means, in relation to any premises, the
authorised distributor to whose distribution
system those premises are connected.
"relevant licensed
distributor" means any licensed distributor which has been
issued with a direction under standard
condition
24
2 (Application of Section C (Distribution
Services Obligations)) of its distribution
licence designating a distribution services
area to the licensed distributor.
"relevant metering
equipment" for the purposes of standard condition 7 (Duty
to Offer Terms for Meter Provision) only, has
the meaning given in that condition.
"relevant parties" for the purposes of standard condition 50
(Modification of Provisions under Standard
Conditions 46 and 49) only, has the meaning
given in that condition.
"relevant payment" for the purposes of standard condition 23
(Payments Received in Relation to Standards of
Performance) only, has the meaning given in
that condition.
"relevant premises" for the purposes of Section C only, has the
meaning given in standard condition 31
(Interpretation of Section C).
"relevant proportion" for the purposes of standard condition 4
(Payments by the Licensee to the Authority)
only, has the meaning given in that condition.
"relevant provisions" for the purposes of Section D only, has the
meaning given in standard condition 50
(Modification of Provisions under Conditions
46 and 49).
25
"relevant purchaser" for the purposes of standard condition 8B
(Generation Security Standard) only, has the
meaning given in that condition.
"relevant year" for the purposes of standard condition 4
(Payments by the Licensee to the Authority)
only, has the meaning given in that condition.
"remote transmission assets" means any electric lines, electrical plant or
meters in England and Wales owned by a
transmission company ("the owner transmission
company") which
(a) are embedded in the distribution system
of any authorised distributor other than
the owner transmission company and are
not directly connected by lines or plant
owned by the owner transmission company
to a sub-station owned by the owner
transmission company; and
(b) are by agreement between the owner
transmission company and such authorised
distributor operated under the direction
and control of such authorised
distributor.
"representative" for the purposes of Section C only, has the
meaning given in standard condition 48
(Marketing of Electricity to Domestic
Customers).
"request" for the purposes of Section C only, has the
26
meaning given in standard condition 32 (Duty
to Supply Domestic Customers).
"run-off" for the purposes of standard condition 12
(Pooling and Settlement Agreement Run-off)
only, has the meaning given in that condition.
"Scottish interconnection" means such part of the interconnection as is
situated in Scotland.
"security arrangements" for the purposes of standard condition 33
(Last Resort Supply: Security for Payments)
only, has the meaning given in that condition.
"separate business" means each of the in-area supply and
out-of-area supply businesses taken separately
from one another and from any other business
of the licensee, but so that where all or any
part of such business is carried on by an
affiliate or related undertaking of the
licensee such part of the business as is
carried on by that affiliate or related
undertaking shall be consolidated with any
other such business of the licensee (and of
any other affiliate or related undertaking) so
as to form a single separate business.
"Settlement Agreement for
Scotland" for the purposes of Section B only, has the
meaning given in standard condition 8
(Settlement Agreement for Scotland).
"standby" for the purposes of Section D only, has the
meaning given in standard condition 51
27
(Interpretation of Section D).
"statutory accounts" means the accounts that the licensee
prepares under the Companies Xxx 0000.
"subsidiary" means a subsidiary within the meaning of
sections 736, 736A and 736B of the
Companies Xxx 0000.
"supply business" means the business of the licensee
supplying electricity as authorised.
"supply licence" means a supply licence granted or
treated as granted under section 6(1)(d)
of the Act.
"supply services area" has the meaning given at paragraph 5(b)
of standard condition 3 (Application of
Section D (Supply Services
Obligations)).
"Supply Services Direction" for the purposes of standard condition 3
(Application of Section D (Supply
Services Obligations)) only, has the
meaning given in that condition.
"termination date" for the purposes of standard condition
48 (Marketing of Electricity to Domestic
Customers) only, has the meaning given
in that condition.
"termination fee" for the purposes of Section C only, has
the meaning given in standard condition
31
28
(Interpretation of Section C).
"top-up" for the purposes of Section D only, has
the meaning given in standard condition
51 (Interpretation of Section D).
"Trading Code" for the purposes of Section B only, has
the meaning given in standard condition
8A (Compliance with Trading Code in
Scotland).
"transmission company" means the holder for the time being of a
transmission licence.
"transmission licence" means a transmission licence granted or
treated as granted under section 6(1)(b)
of the Act.
"transmission system" means a system consisting (wholly or
mainly) of high voltage electric lines
owned or operated by a transmission
company and used for the transmission of
electricity from one generating station
to a sub-station or to another
generating station, or between
sub-stations or to or from any
interconnector or Scottish
interconnection in question and in
relation to Scotland including any
interconnector and Scottish
interconnection and includes any
electrical plant and meters owned or
operated by such transmission company in
connection with the transmission of
electricity but shall not include any
remote transmission assets.
29
"undertaking" has the meaning given by section 259 of
the Companies Xxx 0000.
"unmetered supply" means a supply of electricity to
premises which is not, for the purpose
of calculating the charges for
electricity supplied to the customer at
such premises, measured by metering
equipment.
"use of system agreement" for the purposes of Section B only, has
the meaning given in standard condition
23 (Payments Received in Relation to
Standards of Performance).
"valid notice of termination" for the purposes of Section C only, has
the meaning given in standard condition
31 (Interpretation of Section C).
"value of lost load" for the purposes of standard condition
8B (Generation Security Standard) only,
has the meaning given in that condition.
2. Any words or expressions used in the Utilities Xxx 0000 or Part I of the
Act shall, unless the contrary intention appears, have the same meaning
when used in the standard conditions.
3. Except where the context otherwise requires, any reference to a numbered
standard condition (with or without a letter) or Schedule is a reference to
the standard condition (with or without a letter) or Schedule bearing that
number in this licence, and any reference to a numbered paragraph (with or
without a letter) is a reference to the paragraph bearing that number in
the standard condition or Schedule in which the reference occurs, and
reference to a Section is a reference to that Section in these standard
conditions.
4. These standard conditions shall have effect as if, in relation to a licence
holder who is a natural person, for the words "it", "its" and "which" there
were substituted the words
30
"he", "him", "his", "who" and "whom", and cognate expressions shall be
construed accordingly.
5. Except where the context otherwise requires, a reference in a standard
condition to a paragraph is a reference to a paragraph of that standard
condition and a reference in a paragraph to a sub-paragraph is a reference
to a sub-paragraph of that paragraph.
6. Any reference in these standard conditions to -
(a) a provision thereof;
(b) a provision of the standard conditions of distribution licences, or
(c) a provision of the standard conditions of generation licences, or
(d) a provision of the standard conditions of transmission licences,
shall, if these standard conditions 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 standard conditions or
the other standard conditions in question as modified.
7. In construing these standard conditions, the heading or title of any
standard condition or paragraph shall be disregarded.
8. Any reference in a standard condition to the purposes of that condition
generally is a reference to the purposes of that standard condition as
incorporated in this licence and as incorporated in each other licence
under section 6(1)(d) of the Act (whenever granted) which incorporates it.
9. Where any obligation in the licence is required to be performed by a
specified date or time or within a specified period, and where the licensee
has failed so to perform, such obligation shall continue to be binding and
enforceable after the specified date or time or after the expiry of the
specified period (but without prejudice to all rights and remedies
available against the licensee by reason of the licensee's failure to
perform by that date or time or within that period).
31
10. Anything required by or under these standard conditions to be done in
writing may be done by facsimile transmission of the instrument in question
or by other electronic means and, in such case -
(a) the original instrument or other confirmation in writing shall be
delivered or sent by pre-paid first-class post as soon as is
reasonably practicable, and
(b) where the means of transmission had been agreed in advance between the
parties concerned, in the absence of and pending such confirmation,
there shall be a rebuttable presumption that what was received duly
represented the original instrument.
11. The definitions referred to in this condition may include some definitions
which are not used or not used exclusively in Sections A and B (which
Sections are incorporated in all electricity suppliers licences). Where:
(a) any definition is not used in Sections A and B, that definition shall,
for the purposes of this licence, be treated:
(i) as part of the standard condition or conditions (and the Section)
in which it is used;
(ii) as not having effect in the licence until such time as the
standard condition in which the definition is used has effect
within the licence in pursuance of standard condition 2
(Application of Section C (Domestic Supply Obligations)) or
standard condition 3 (Application of Section D (Supply Services
Obligations));
(b) any definition which is used in Sections A and B is also used in one
or more other Sections:
(i) that definition shall only be modifiable in accordance with the
modification process applicable to each of the standard
conditions in which it is used; and
32
(ii) if any such standard condition is modified so as to omit
that definition, then the reference to that definition in
this condition shall automatically cease to have effect.
33
Condition 2. Application of Section C (Domestic Supply Obligations)
1. Where the Secretary of State provides, by a scheme made under Schedule 7 to
the Utilities Xxx 0000, for Section C to have effect within this licence:
(a) the licensee may supply or offer to supply electricity to domestic
premises;
(b) paragraphs 4 to 10 shall cease to be suspended and shall have effect
in the licensee's licence; and
(c) the licensee shall be obliged to comply with the requirements of
Section C of this licence,
from the date the said scheme takes effect.
2. Until -
(a) the Secretary of State provides, by a scheme made under Schedule 7 to
the Utilities Xxx 0000, for Section C to have effect within this
licence; or
(b) the Authority has issued to the licensee a direction pursuant to
paragraph 4,
the licensee shall not supply or offer to supply electricity to any
domestic premises; the standard conditions in Section C shall not have
effect within this licence; and the licensee shall not be obliged to comply
with any of the requirements of Section C of this licence.
3. Except where paragraph 1 applies to the licensee, paragraphs 4 to 10 of
this standard condition shall be suspended and shall have no effect in this
licence until such time as the Authority issues to the licensee a notice in
writing ending the suspension and providing for those paragraphs to have
effect in this licence with effect from the date specified in the notice.
34
4. The Authority may, following an application made by the licensee in
accordance with paragraphs 5 to 7, issue a direction (a "Domestic Supply
Direction"). Where the Authority has issued to the licensee a Domestic
Supply Direction the standard conditions in Section C shall have effect
within this licence from the date specified in the direction; and the
licensee shall be obliged to comply with the requirements of Section C to
the extent and subject to the terms specified in such direction.
5. An application by the licensee for a Domestic Supply Direction shall be:
(a) made in writing, addressed to the Authority and delivered or sent by
pre-paid post to the Authority at its principal office; and signed and
dated by or on behalf of the applicant, stating, where signed on
behalf of the applicant, the capacity of the signatory;
(b) in the form specified in Schedule 1 to the Application Regulations or
a form to the like effect and shall contain the information specified
in that schedule; and be accompanied by the information and documents
specified in Schedule 2 to the Application Regulations;
(c) accompanied by the information and documents specified in paragraphs 1
to 4 inclusive of Part IV of Schedule 3 to the Application
Regulations; and
(d) accompanied by a fee equivalent to the fee specified in the
Application Regulations for applications for extensions to electricity
supply licence including authorisation to supply electricity to
domestic premises.
6. A notice of an application made by the licensee for a Domestic Supply
Direction must be published by the licensee within 7 days of making such
application:
(a) in the London Gazette and the Edinburgh Gazette; and
(b) in such newspapers as are calculated to ensure that the notice is
circulated;
35
(c) where the application relates to premises of a specified description
and is not limited to premises situated in a specified area,
throughout Great Britain;
(d) where the application relates to a specified area, throughout that
area; and
(e) where the application relates to particular premises, throughout the
area or areas in which those premises are situated.
7. The applicant shall deliver, or send by pre-paid post a copy of the London
and Edinburgh Gazettes, and of each newspaper in which notice of the
application is published in accordance with this regulation to the
Authority at its principal office.
8. The Authority may, with the consent of the licensee:
(a) vary the terms (as set out in the Domestic Supply Direction or
elsewhere) under which Section C has effect in this licence; or
(b) provide for Section C to cease to have effect in this licence.
9. The variation or cessation provided for in paragraph 8 shall take effect
from the date specified in the variation or cessation notice given to the
licensee by the Authority.
10. With effect from the date of cessation referred to in paragraph 9,
paragraphs 4 to 9 of this condition shall be suspended and shall cease to
have effect in this licence, but the Authority may at any time thereafter
give to the licensee a notice ending the suspension and providing for those
paragraphs to have effect again in this licence with effect from the date
specified in the notice.
36
Condition 3. Application of Section D (Supply Services Obligations)
1. Where the Secretary of State provides, by a scheme made under Schedule 7 to
the Utilities Xxx 0000, for Section D (in whole or in part) to have effect
within this licence:
(a) paragraphs 4 to 8 shall cease to be suspended and shall have effect in
the licensee's licence; and
(b) the licensee shall be obliged to comply with the requirements of
Section D (in whole or, as the case may be, in part) of this licence,
from the date the said scheme takes effect. Such provision made by the
Secretary of State in the said scheme shall be treated, for the purposes of
paragraphs 5, 6, and 7 of this condition, as if it were a Supply Service
Direction made by the Authority.
2. Until -
(a) the Secretary of State provides, by a scheme made under Schedule 7 to
the Utilities Xxx 0000, for Section D (in whole or in part) to have
effect within this licence; or
(b) the Authority has issued to the licensee a direction pursuant to
paragraph 4,
the standard conditions in Section D (in whole or, as the case may be, in
part) shall not have effect within this licence; and the licensee shall not
be obliged to comply with any of the requirements of Section D (in whole
or, as the case may be, in part) of this licence.
3. Except where paragraph 1 applies to the licensee, paragraphs 4 to 8 of this
standard condition shall be suspended and shall have no effect in this
licence until such time as the Authority, with the consent of the licensee,
issues to the licensee a notice in writing
37
ending the suspension and providing for those paragraphs to have effect in
the licensee's licence.
4. The Authority may, with consent of the licensee, issue a direction (a
"Supply Services Direction"). Where the Authority has issued to the
licensee a Supply Services Direction the standard conditions in Section D
(in whole or, as the case may be, in part) shall have effect within this
licence from the date specified in the direction; and the licensee shall be
obliged to comply with the requirements of Section D (in whole or, as the
case may be, in part) to the extent and subject to the terms specified in
such direction.
5. A Supply Services Direction:
(a) may specify that the conditions in Section D (in whole or in part) are
to have effect in this licence; and
(b) shall specify or describe an area (the "supply services area") within
which the licensee shall be obliged to comply with any of the
requirements of Section D (in whole or, as the case may be, in part).
6. Except for standard condition 53B (Requirement to Offer Terms for Top-Up
and Standby, Exempt Supply Services and Prepayment Meter Services) (which
is subject to the disapplication provisions set out in standard condition
54 (Duration of Standard Condition 53B)), the Authority may, with the
consent of the licensee:
(a) vary the terms (as set out in the Supply Services Direction or
elsewhere) under which Section D (or parts thereof) has effect in this
licence; or
(b) provide for Section D (or parts thereof) to cease to have effect in
this licence.
7. The variation or cessation provided for in paragraph 6 shall take effect
from the date specified in the variation or cessation notice given to the
licensee by the Authority.
8. With effect from the date of cessation referred to in paragraph 7,
paragraphs 4 to 7 of
38
this condition shall be suspended and shall cease to have effect in this
licence, but the Authority may at any time thereafter, with the consent of
the licensee, give to the licensee a notice ending the suspension and
providing for those paragraphs to have effect again in this licence with
effect from the date specified in the notice.
39
Condition 4. Payments by the Licensee to the Authority
1. The licensee shall, at the times stated, pay to the Authority such amounts
as are determined by or under this condition.
2. In respect of each relevant year at the beginning of which the licensee
holds this licence, the licensee shall pay to the Authority the aggregate
of:
(a) an amount which is the relevant proportion of the estimated costs
incurred by the Competition Commission in the previous relevant year
in connection with any reference made to it with respect to
the licence or any other electricity supply licence; and
(b) an amount which is the relevant proportion of the difference (being a
positive or negative amount), if any, between:
(aa) any costs estimated by the Authority in the previous relevant
year under sub-paragraph 2(a); and
(bb) the actual costs of the Competition Commission (in connection
with that reference) for the relevant year prior to the
previous relevant year.
3. The amounts determined in accordance with paragraph 2 shall be paid by the
licensee to the Authority in one instalment being due for payment by 31
October in each year, provided that if the Authority has not given notice
of the amount of the instalment at least 30 days before the payment date
stated above, the licensee shall pay the amount due within 30 days from the
actual giving of notice by the Authority to the licensee (whenever notice
is given).
4. When the licensee fails to pay the amount determined in accordance with
paragraph 2 within 30 days of the due date set out in paragraph 3, it shall
pay simple interest on the amount at the rate which is from time to time
equivalent to the base rate of NatWest Bank plc or, if there is no such
base rate, such base rate as the Authority may designate for the purposes
hereof.
40
5. In this condition:
"estimated costs" means costs estimated by the Authority as
likely to be the costs incurred by the Competition
Commission, such estimate having regard to the views
of the Competition Commission.
"relevant proportion" means the proportion of the costs
attributable to the licensee in accordance with
principles determined by the Authority for the
purposes of this condition generally and notified to
the licensee.
"relevant year" means a year beginning on 1 April of each calendar
year and ending on 31 March of the following calendar
year.
41
SECTION B. GENERAL
Condition 5. Compliance with Grid Codes
1. The licensee shall comply with the provisions of every Grid Code in so far
as applicable to it.
2. The Authority may (following consultation with the transmission company
responsible for the relevant Grid Code) issue directions relieving the
licensee of its obligation under paragraph 1 in respect of such parts of
the Grid Code and to such extent and subject to such conditions as may be
specified in those directions.
42
Condition 6. Compliance with Distribution Codes
1. The licensee shall comply with the provisions of every Distribution Code in
so far as applicable to it.
2. The Authority may (following consultation with any licensed distributor
directly affected thereby) issue directions relieving the licensee of its
obligation under paragraph 1 in respect of such parts of the Distribution
Code of any such distributor and to such extent as may be specified in
those directions.
43
Condition 7. Duty to Offer Terms for Meter Provision
1. Where the licensee is the owner of any relevant metering equipment, it
shall, on an application made by any person:
(a) offer to enter into an agreement for the provision of such relevant
metering equipment whether, at the discretion of the licensee, by
way of sale, hire or loan; and
(b) where the terms offered are acceptable to the person making the
application, sell, hire or loan the relevant metering equipment in
accordance with the terms offered.
2. In making an offer to enter into an agreement in accordance with paragraph
1, the licensee shall set out:
(a) the date by which the terms of the agreement shall be fulfilled,
including the date by which the relevant metering equipment will be
available for use by the applicant (time being of the essence unless
otherwise agreed between the parties);
(b) the charges to be paid to the licensee; and
(c) such other detailed terms as are or may be appropriate for the purpose
of the agreement.
3. The licensee shall offer terms for agreements in accordance with paragraph
1 as soon as practicable after the receipt by the licensee of an
application containing all such information as it may reasonably require
for the purpose of formulating the terms of the offer.
4. The licensee shall not be obliged pursuant to this condition to offer to
enter or to enter into any agreement if to do so would be likely to cause
the licensee to be in breach of:
44
(a) any regulations made under section 29 of the Act or of any other
enactment relating to safety or standards applicable in respect of
the licensee;
(b) any of the applicable Grid Codes or Distribution Codes; or
(c) the conditions.
5. The Authority may, on the application of the licensee, issue a direction
relieving the licensee of its obligations under paragraph 1 in respect of
such relevant metering equipment and subject to such terms and conditions
as may be specified in the direction.
6. Without prejudice to the provisions of paragraphs 1 to 5 above, the
licensee, whether it is the owner of any metering equipment or not, shall
not enter into any agreement (whatever the nature of the agreement):
(a) with any customer to provide metering equipment to that customer; or
(b) with any other person, to provide metering equipment to that person
or to procure the provision of metering equipment to or on behalf of
any customer
which in each case is intended or is likely to restrict, distort or prevent
competition in the supply of electricity.
7. In this condition:
"relevant metering equipment" means metering equipment sited at any
premises to which a supply of
electricity is being or is required to
be given by an electricity supplier
other than the licensee.
45
Condition 7A. Not Used
46
Condition 8. Settlement Agreement for Scotland
1. Insofar as the licensee supplies or offers to supply electricity to any
premises situated in Scotland, it shall become a party to and thereafter
comply with the provisions of the Settlement Agreement for Scotland.
2. In this condition:
"Settlement Agreement for Scotland" means the agreement of that
title prepared in accordance
with, and comprising such
matters as are set out in,
special condition I (The
Settlement Agreement for
Scotland) of each of the
electricity distribution
licences of SP Distribution
Limited and Scottish Hydro
Electric Power Distribution
Limited (and any other name by
which any of these companies
come to be known).
47
Condition 8A. Compliance with Trading Code in Scotland
1. (a) Insofar as the licensee supplies or offers to supply electricity to
any premises situated in Scotland, the licensee shall comply with the
provisions of the Trading Code during any period that the licensee is
a member of the trading system established by the Trading Code,
including any requirements thereunder for the Authority's approval or
consent, for compliance with directions issued by the Authority or
relating to determinations made by the Authority.
(b) The Authority may (following consultation with such other members of
such trading system as the Authority shall consider appropriate) issue
directions relieving the licensee of its obligation under
sub-paragraph (a) above in respect of such parts of the Trading Code
and to such extent as may be specified in those directions.
2. In this condition:
"Trading Code" means the trading code required
to be adopted pursuant to
standard condition D2 (Trading
Code for Scotland) of the
transmission licences granted in
respect of an authorised area in
Scotland and approved by the
Authority and as from time to
time revised with the approval
of the Authority.
48
Condition 8B. Generation Security Standard
1. Insofar as the licensee supplies or offers to supply electricity to any
premises situated in Scotland, the licensee shall make arrangements
sufficient to meet the generation security standard.
2. Not later than 3 months before the end of each financial year, the licensee
shall provide to the Authority a statement complying with the provisions of
paragraph 3.
3. The statement to be provided to the Authority under paragraph 2 shall:
(a) be signed by 2 directors of the licensee;
(b) describe the arrangements made or to be made by the licensee to meet
the generation security standard in each of the 7 succeeding financial
years;
(c) state the planning margin or margins adopted by the licensee for the
purpose of the above arrangements and set out the methodology and
calculations used in arriving at such margin or margins;
(d) refer to data, assumptions and demand forecasts (including insofar as
relevant those relating to diversity of demand, own generation,
arrangements for trading energy and capacity with other persons,
arrangements with qualifying customers and relevant purchasers,
including those permitting interruption and reduction of supply,
forecast maximum demand from qualifying customers and relevant
purchasers, the maximum demand which the licensee can meet without
failing to meet the generation security standard, contracted
availability of generation, and load management (if any) of qualifying
customers and relevant purchasers); and
(e) include such other matters as the Authority shall specify in
directions issued by the Authority to the licensee for the purpose of
this condition not later than 6 months before the end of the financial
year in which the statement is provided.
49
4. The licensee shall upon request by the Authority provide to the Authority
such information as the Authority may require for the purpose of monitoring
compliance with this condition and to enable the Authority (having regard
to his statutory duties) to review the operation of the generation security
standard.
5. The licensee shall not make or agree any alteration, other than an
alteration to which paragraph 7 applies, to the arrangements described in
any statement provided to the Authority under paragraph 2 as having been
made by the licensee to meet the generation security standard for the first
financial year covered by such statement.
6. The licensee shall:
(a) procure that, except to the extent that the Authority shall otherwise
approve, arrangements described in any statement provided to the
Authority under paragraph 2 as falling to be made by the licensee to
meet the generation security standard for the first financial year
covered by such statement shall be made; and
(b) not make or agree any alteration, other than an alteration to which
paragraph 7 applies to the arrangements so made.
7. This paragraph applies to an alteration which the Authority considers is
unlikely to result in the licensee failing to meet the generation security
standard.
8. Save as required by law, the licensee shall not enter into any contract for
the supply of electricity if the entering into of the contract would cause
demand in the first year covered by the statement most recently provided to
the Authority under paragraph 2 to exceed the maximum demand which the
licensee can meet in that year without failing to meet the generation
security standard as referred to in such statement, unless the Authority
shall consider that the entering into of the contract is unlikely to result
in the licensee failing to meet the generation security standard.
50
9. Subject to paragraph 10, the licensee shall not:
(a) enter into any contract to supply electricity to a person other than a
qualifying customer if the licensee has interrupted or reduced the
supply of electricity to any qualifying customer (other than by reason
of relevant constraints) and the interruption or reduction continues
during the period or any part of the period in which electricity would
otherwise be supplied under such contract; or
(b) interrupt or reduce the supply of electricity to any qualifying
customer (except to the extent that such interruption or reduction is
made by reason of relevant constraints) if at or shortly before the
time of the interruption or reduction the licensee enters into any
contract to supply electricity to a person other than a qualifying
customer during the period or part of the period that the supply is
interrupted or reduced; or
(c) interrupt or reduce the supply of electricity to any qualifying
customer in circumstances where:
(i) electricity is available for purchase under the terms of the
Balancing and Settlement Code, the Settlement Agreement for
Scotland or the trading system established by the Trading Code at
a price less than value of lost load; and
(ii) the licensee is not prevented from purchasing such electricity by
reason of relevant constraints.
10. Notwithstanding paragraph 9, the licensee may interrupt or reduce a supply
of electricity in circumstances where it is necessary to do so by reason of
planned maintenance undertaken on the distribution system or transmission
system required by the licensee for the supply of electricity or by reason
of a fault on or affecting either the distribution system or transmission
system required by the licensee for the supply of electricity or the
quantities of electricity delivered into that system.
11. In the event that the Authority, after consultation with the licensee,
shall at any time or from time to time issue a direction to the licensee
for the purpose of this condition to the effect
51
that, in the opinion of the Authority, it is desirable that the licensee
make arrangements such as are specified in the direction to meet the
generation security standard, then the duty imposed by paragraph 1 shall
not be capable of being discharged by the licensee after such date as shall
be specified for the purpose in the direction except by the licensee making
the arrangements so specified
12. The Authority, after consultation with the licensee, may at any time and
from time to time by directions issued to the licensee for the purpose of
this condition make such modifications to this condition or any other
condition to which the licensee is subject as, in the opinion of the
Authority, are the most appropriate to ensure that the licensee's supply
charges are restricted in circumstances where the licensee fails to meet
demand from its qualifying customers by reason of an insufficiency of
electricity generation available for the purposes of supply by the licensee
to such customers.
13. The duty of the licensee under paragraph 1 may, in relation to qualifying
customers whose premises are located in isolated areas, be discharged by
the making of arrangements sufficient to meet a standard of generation
security (other than the generation security standard) agreed between the
licensee and the Authority.
14. The provisions of this condition are without prejudice to the duties of the
licensee under any regulation made under section 29 of the Act.
15. In this condition:
"generation security standard" means:
(a) such standard of generation
security as will ensure:
(i) that the supply of
electricity to
qualifying customers
will not be
discontinued in more
than 9 years
52
in any period of 100 years;
and
(ii) that the voltage or frequency
of electricity supplied to
qualifying customers will not
be reduced below usual
operational limits in more
than 30 years in any period
of 100 years.
by reason of insufficiency of
electricity generation available
for the purposes of supply by the
licensee to its qualifying
customers at times of annual system
peak demand; and
(b) sufficient electricity generation
being available for the purposes of
supply by the licensee to its
qualifying customers at times other
than times of annual system peak
demand to ensure that the standard
of generation security at each such
time will be not less than that
referred to in sub-paragraph (a)
above for times of annual system
peak demand.
"modification" shall have the same meaning as in
section 111 of the Act.
"qualifying customer" means any purchaser from the licensee
entitled and requiring at any time to be
supplied by the licensee at premises
within Scotland but shall exclude a
purchaser under an interruptible
contract or a contract
53
containing load management terms to the
extent that supplies to that purchaser
may be interrupted or reduced in
accordance with the terms of that
contract.
"relevant constraints" means any constraints on the
transmission system of any transmission
licensee or on the interconnector or
Scottish interconnection or on a
distribution system required by the
licensee for the supply of electricity.
"relevant purchaser" means any purchaser from the licensee
who is not a qualifying customer.
"value of lost load" means, in respect of the financial year
ending on 31 March 2002, the sum
of(pound)2.90 per kWh and, in respect of
each succeeding financial year, the sum
which corresponds to(pound)2.90 per kWh
as adjusted to reflect the percentage
change in the Retail Price Index between
the index published or determined in
respect of the December prior to the
start of that financial year and the
index published or determined for
December 2000.
54
Condition 9. Compliance with CUSC
1. Insofar as the licensee shall supply or offer to supply electricity to any
premises situated in England and Wales, the licensee shall be a party to
the CUSC Framework Agreement and shall comply with the CUSC and, if it is
party to the agreement known as the Master Connection and Use of System
Agreement ("MCUSA"), execute such other documents as shall be stated as
required to be made in any direction issued by the Authority to enable the
MCUSA and its supplemental agreements and ancillary service agreements (as
defined or referred to in MCUSA) and any associated agreements derived from
MCUSA to be amended appropriately into the CUSC Framework Agreement, CUSC,
bilateral agreements, construction agreements and, so far as is
appropriate, associated agreements derived from CUSC so as to maintain
continuity of contractual relationships.
2. The licensee shall take all reasonable steps to secure and implement
(consistently with the procedures applicable under or in relation to the
core industry documents to which it is a party (or in relation to which it
holds rights in respect of amendment) as modified or replaced from time to
time), and shall not take any steps to prevent or unduly delay, changes to
those documents, such changes being changes which are appropriate in order
to give full and timely effect to and/or in consequence of any modification
which has been made to the CUSC.
3. For the avoidance of doubt, paragraph 2 is without prejudice to any rights
of approval, veto or direction in respect of proposed changes to the core
industry documents which the Authority may have.
4. In this condition:
"bilateral agreement" means an agreement between the holder of
a transmission licence in England and
Wales and a CUSC user supplemental to
the CUSC relating to a direct connection
to that transmission system identifying
the
55
relevant connection site and setting out
other site specific details in relation
to that connection to the transmission
system, including provisions relating to
payment of connection charges.
"construction agreement" means an agreement between the holder of
a transmission licence in England and
Wales and a CUSC user in respect of
construction works required on that
transmission system and the associated
construction works of the CUSC user in
relation to a connection to that
transmission system or in relation to a
generating station connected to a
distribution system in England and
Wales, whether for the initial
connection or a modification of the
connection.
"core industry documents" means those documents which have been so
designated by the Secretary of State as
such.
"CUSC" means the Connection and Use of System
Code required to be in place pursuant to
the transmission licence granted to the
transmission company in England and
Wales, as from time to time modified.
"CUSC Framework Agreement" means the agreement of that title, in
the form approved by the Secretary of
State, by
56
which the CUSC is made contractually
binding between the parties to that
agreement, as amended from time to time
with the approval of the Secretary of
State.
57
Condition 10. Balancing and Settlement Code and XXXX Implementation
1. Insofar as the licensee shall supply or offer to supply electricity to any
premises in England and Wales, the licensee shall be a party to the BSC
Framework Agreement and shall comply with the BSC.
2. The licensee shall comply with the programme implementation scheme
established in accordance with paragraph 3 as modified from time to time in
accordance with paragraph 5.
3. The programme implementation scheme is a scheme designated by the Secretary
of State setting out the steps, including without limitation steps as to
the matters referred to in paragraph 4, to be taken (or procured) by the
licensee (and/or by authorised electricity operators) which are, in the
Secretary of State's opinion, appropriate in order to give full and timely
effect to:
(a) the modifications made to this licence and to the licences of
authorised electricity operators by the Secretary of State pursuant to
the power vested in him under section 15A of the Act;
(b) any conditions imposed by any exemption from the requirement to hold
any such licence; and
(c) the matters envisaged by such modifications and conditions.
4. The programme implementation scheme may include provisions, inter alia,
(a) to secure or facilitate the amendment of any of the core industry
documents;
(b) to secure that any systems, persons or other resources employed in the
implementation of the Pooling and Settlement Agreement may be employed
in the implementation of the BSC;
58
(c) for the giving of the indemnities against liabilities to which parties
to the Pooling and Settlement Agreement may be exposed;
(d) for securing the co-ordinated and effective commencement of
implementation of and operations under the BSC, including the testing,
trialling and start-up of the systems, processes and procedures
employed in such implementation and employed by authorised electricity
operators and others in connection with such operations;
(e) for co-ordinating the administration and implementation of the BSC and
the administration of the Pooling and Settlement Agreement;
(f) for the licensee to refer to the Authority for determination, whether
of its own motion or as provided in the programme implementation
scheme, disputes, as to matters covered by the scheme, between persons
who are required (by conditions of their licences or exemptions) or
who have agreed to comply with the scheme or any part of it; and
(g) for the Authority, in the circumstances set out in the scheme, to
require that consideration be given to the making of a proposal to
modify the BSC and, if so, to require the making of such proposal in
the manner set out in the scheme, such power to be exercisable at any
time within the period of 12 months after the effective time (as
defined in standard condition 12 (Pooling and Settlement Agreement
Run-off)).
5. (a) The Secretary of State may at any time direct, in accordance with the
provisions of the programme implementation scheme, that the programme
implementation scheme be modified in the manner set out in the
direction, in order to give (or continue to give) full and timely
effect to the matters described in paragraph 3.
(b) The Secretary of State shall serve a copy of any such direction on the
licensee, and thereupon the licensee shall comply with the scheme as
modified by the direction.
59
6. If there is any conflict between the requirements contained in the
programme implementation scheme pursuant to paragraph 4(a) and/or imposed
on the licensee by paragraphs 2 and 5 of this condition, and those imposed
on the licensee by any other condition, the provisions of paragraphs 4(a),
2 and/or 5 (as appropriate) shall prevail.
7. Without prejudice to paragraph 2, the licensee shall use all reasonable
endeavours to do such things as may be requisite and necessary in order to
give full and timely effect to the modifications made to this licence as
determined by the Secretary of State pursuant to the power vested in him
under section 15A of the Act (and to give full and timely effect to the
matters envisaged by such modifications).
8. In this condition:
"BSC" means the balancing and settlement code
required to be in place, pursuant to the
transmission licence granted to the
transmission company in England and
Wales, as from time to time modified.
"BSC Framework Agreement" means the agreement of that title, in
the form approved by the Secretary of
State, by which the BSC is made
contractually binding between the
parties to that agreement, as from time
to time amended, with the consent of the
Secretary of State.
"core industry documents" mean those documents which
(a) in the Secretary of State's
opinion are central industry
documents associated with the
activities of the licensee and
authorised
60
electricity operators, the subject
matter of which relates to or is
connected with the BSC or the
balancing and settlement
arrangements, and
(b) have been so designated by the
Secretary of State.
61
Condition 11. Change Co-ordination for XXXX
1. Insofar as the licensee shall supply or offer to supply electricity to any
premises in England and Wales, the licensee shall take all reasonable
measures to secure and implement (consistently with the procedures
applicable under or in relation to the core industry documents to which it
is party (or in relation to which it holds rights in respect of amendment)
as modified or replaced from time to time), and shall not take any steps to
prevent or unduly delay, changes to those documents, such changes being
changes which are appropriate in order to give full and timely effect to
and/or in consequence of any modification which has been made to the BSC.
2. For the purposes of paragraph 1, core industry documents has the meaning
given in paragraph 8 of standard condition 10 (Balancing and Settlement
Code and XXXX Implementation).
62
Condition 12. Pooling and Settlement Agreement Run-off
1. Insofar as the licensee shall supply or offer to supply electricity to any
premises in England and Wales, the licensee shall continue to be a party to
and a pool member under, and shall comply with, the Pooling and Settlement
Agreement for the purposes of run-off, until the provisions of the BSC
relating to run-off become effective.
2. This condition shall apply to the extent that the licensee was party to and
a Pool member under the Pooling and Settlement Agreement immediately prior
to the effective time.
3. In this condition:
"effective time" means the start of the first period for
trading under the BSC as determined by
the Secretary of State.
"run-off" means the determination and settlement
(including by way of reconciliation) of
amounts due arising under or in
connection with the Pooling and
Settlement Agreement in relation to
settlement periods up to and including
the settlement period immediately prior
to the effective time (including the
resolution of disputes in respect
thereof).
63
Condition 12A. Prohibition of Discrimination in Selling Electricity
1. The licensee shall not, and shall procure that any affiliate or related
undertaking of the licensee shall not, sell or offer to sell electricity to
any one purchaser or person seeking to become a purchaser on terms as to
price which are materially more or less favourable than those on which it
sells or offers to sell electricity to comparable purchasers. For these
purposes regard shall be had to the circumstances of the sale to such
purchasers including (without limitation) volumes, load factors, conditions
of interruptibility and the dates and durations of the relevant agreements.
2. For the purposes of paragraph 1, references to selling or sale of
electricity:
(a) do not include sale by way of supply to premises;
(b) include entering into or disposing of the benefit of a contract, which
has (or taken together with any other arrangement has) the commercial
effect of selling electricity, by conferring rights or obligations
(including rights or obligations by way of option) in relation to or
by reference to the sale, purchase or delivery of electricity at any
time or the price at which electricity is sold or purchased at any
time,
and "purchaser", "purchasing" and "purchase" shall be construed
accordingly.
64
Condition 12B. Prohibition of Cross-Subsidies
1. The licensee shall procure that the supply business shall not give any
cross-subsidy to, or receive any cross-subsidy from, any other business of
the licensee or an affiliate or related undertaking of the licensee.
2. Nothing which the licensee is obliged to do or not to do pursuant to this
licence or any other document which grants a licence to the licensee under
the Act shall be regarded as a cross-subsidy for the purposes of this
condition.
65
Condition 13. Change Co-ordination for the Utilities Xxx 0000
1. The licensee shall take all reasonable measures to secure and implement,
and shall not take any steps to prevent or unduly delay, such changes to
the industry framework documents as are necessary or expedient to give full
and timely effect to the provisions of the Utilities Xxx 0000.
2. In complying with paragraph 1, the licensee shall act in the case of each
industry framework document consistently with the change procedures
currently applicable to that document, except where to do so would be
inconsistent with any provision of the Utilities Xxx 0000, in which event
that provision shall take precedence.
3. For the purposes of this condition, "industry framework document" means,
subject to paragraph 4, any of the following documents to which the
licensee is a party, or in relation to which it holds rights in respect of
amendment or termination, together with any documents which are
supplemental or ancillary thereto:
(a) the Pooling and Settlement Agreement;
(b) the Balancing and Settlement Code;
(c) the Master Connection and Use of System Agreement or the Connection
and Use of System Code;
(d) the Settlement Agreement for Scotland;
(e) the Master Registration Agreement;
(f) the Data Transfer Services Agreement;
(g) the Radio Teleswitch Agreement;
(h) any Grid Code;
(i) any Distribution Code;
(j) the Trading Code;
(k) the Fuel Security Code;
(l) any agreement for use of an interconnector or Scottish
interconnection; and
(m) any agreement for the provision of distribution use of system, meter
provision services, meter maintenance services, data retrieval
services, data processing services, data aggregation services, or
prepayment meter services.
66
4. Where the Authority considers that the list of industry framework documents
set out in paragraph 3 should be modified for the purposes of this
condition generally, the licensee shall discuss any proposed modification
(including addition) to the list in good faith and use all reasonable
endeavours to agree such modification with the Authority.
5. This condition shall cease to have effect on 30 June 2002 or such earlier
date as the Authority may specify in a direction given for the purposes of
this condition generally.
67
Condition 14. Security Arrangements
1. Insofar as the licensee shall supply or offer to supply electricity to any
premises in England and Wales, the licensee shall comply with the
provisions of the Fuel Security Code and such provisions shall have effect
as if they were set out in this licence.
2. Insofar as the licensee shall supply or offer to supply electricity to any
premises in Scotland:
(a) if so directed in directions issued by the Authority for the purposes
of this condition, the licensee shall, not later than such date as may
be specified in such directions, enter into an agreement designated by
the Secretary of State for the purposes of this condition relating to
compliance with directions issued by the Secretary of State under
section 34 and/or section 35 of the Act; and
(b) the licensee shall comply with and perform its obligations under any
agreement which it enters into pursuant to sub-paragraph (a) above.
3. In this condition:
"Fuel Security Code" means the document of that title designated as
such by the Secretary of State as from time to
time amended.
68
Condition 15. Security and Safety of Supplies
1. The licensee shall make arrangements to keep each of its customers informed
of the postal address and telephone number of an enquiry service
established and operated by the licensed distributor to whose distribution
system such customer's premises are connected pursuant to standard
condition 6 (Safety and Security of Supplies Enquiry Service) of such
licensed distributor's distribution licence for use by any person for the
purposes of receiving reports and offering information, guidance or advice
about any matter or incident that:
(a) causes danger or requires urgent attention, or is likely to cause
danger or require urgent attention, in relation to the supply or
distribution of electricity; or
(b) affects or is likely to affect the maintenance of the security,
availability and quality of service of the distribution system
through which the relevant customer is supplied with electricity.
2. The licensee may discharge the duty imposed by paragraph 1 by providing the
requisite information to each of its customers:
(a) in respect of any customer supplied pursuant to a contract, on the
occasion of the customer first commencing to take a supply from the
licensee; and
(b) either:
(i) where bills or statements in respect of charges for the supply of
electricity are rendered to the customer, on a quarterly basis
(it being sufficient that the information is included on or with
any xxxx or statement); or
(ii) where no bills or statements in respect of charges for the supply
of electricity are rendered to the customer, on an annual basis,
and by publishing such information in such manner as will in the
opinion of the licensee secure adequate publicity for it.
69
3. The licensee shall, in so far as is practicable, take steps to inform each
of its customers of any change to the address or telephone number of the
service referred to at paragraph 1 prior to such change becoming effective.
70
Condition 16. Procedures for the Detection and Prevention of Theft or
Abstraction of Electricity, Damage and Meter Interference
1. The licensee shall (and shall ensure that its agents shall) take all
reasonable steps to detect and prevent:
(a) the theft or abstraction of electricity at premises which are supplied
by it;
(b) damage to any electrical plant, electric line or metering equipment
through which such premises are supplied; and
(c) interference with any metering equipment through which such premises
are supplied.
2. The licensee shall (and shall ensure that its agents shall), as soon as is
reasonably practicable, inform the relevant distributor and (if different)
the owner of any electrical plant, electric lines or meter of any incident
where it has reason to believe:
(a) there has been damage to such electrical plant, electric line or
metering equipment; or
(b) there has been interference with the metering equipment to alter its
register or prevent it from duly registering the quantity of
electricity supplied;
provided that the licensee shall not be obliged to inform the owner of any
electrical plant, electrical line or meter of any such incident where it
has reason to believe that the damage or interference referred to above was
caused by such owner.
3. Where the licensee has reason to believe that any incident reported to the
relevant distributor by it in accordance with paragraph 2 or any incident
reported by the relevant distributor to it pursuant to paragraph 2 of
standard condition 7 (Provision of Information about Theft or Abstraction
of Electricity, Damage and Meter Interference) of the relevant
distributor's distribution licence has been caused by the
71
criminal act of any person it shall provide the relevant distributor with
such information as is reasonably required for the purposes of
investigating the incident and resolving any safety concerns arising out of
it.
4. The licensee shall inform the relevant distributor of its policy in
relation to incidents of the type referred to at paragraph 3, and in
particular whether and in which circumstances it requires the relevant
distributor to remedy such incidents by the use of:
(a) the substitution of alternative meters;
(b) the provision of prepayment meters; and
(c) the discontinuation of supply to the premises at which the incident
occurred.
72
Condition 17. Reading and Inspection of Meters
1. The licensee shall use all reasonable endeavours to ensure that, at least
once in every period of two years beginning with the date on which this
condition comes into force, it inspects any non-half-hourly meter at
premises at which it has at all times during that period been the supplier.
2. An inspection in accordance with paragraph 1 shall be carried out by a
person of appropriate skill and experience and shall include:
(a) taking a meter reading; and
(b) undertaking a visual inspection of the meter and its associated
installation for the purpose of assessing whether:
(i) there has been damage to the meter or to any electric line or
electrical plant associated with it or other part of any
metering equipment;
(ii) there has been interference with the meter to alter its register
or prevent it from duly registering the quantity of electricity
supplied; or
(iii) the meter has deteriorated in any way that might affect its
safety or proper functioning.
73
Condition 18. Licensee's Apparatus on Customer's Side of Meter
1. This condition applies where the licensee installs, or arranges for the
installation of, a second meter or other apparatus for the purpose of
ascertaining or regulating the amount of electricity supplied, the period
of supply, or any other quantity or time connected with the supply on the
customer's side of a non half-hourly meter registering the quantity of the
supply to that customer's premises.
2. Any second meter or other apparatus installed by or on behalf of the
licensee in the position and for a purpose described in paragraph 1 shall
be such that the power consumed by it, when aggregated with the power
consumed by any other meter or apparatus installed by or on behalf of the
licensee in the like position and for a like purpose in relation to the
customer, does not exceed 10 xxxxx except where otherwise agreed with the
customer.
74
Condition 19. Provision of Information to the Authority
1. Subject to paragraphs 2 and 4, the licensee shall furnish to the Authority,
in such manner and at such times as the Authority may reasonably require,
such information and shall procure and furnish to it such reports, as the
Authority may reasonably require or as may be necessary for the purpose of
performing:
(a) the functions conferred on it by or under the Act; and
(b) any functions transferred to or conferred on it by or under the
Utilities Xxx 0000.
2. The licensee shall not be required by the Authority to furnish it under
this condition with information for the purpose of the exercise of its
functions under section 47 of the Act.
3. The licensee shall, if so requested by the Authority, give reasoned
comments on the accuracy and text of any information or advice (so far as
relating to its activities as holder of an electricity supply licence)
which the Authority proposes to publish pursuant to section 48 of the Act.
4. This condition shall not require the licensee to produce any documents or
give any information which it could not be compelled to produce or give in
evidence in civil proceedings before a court.
5 The power of the Authority to call for information under this condition is
in addition to the power of the Authority to call for information under or
pursuant to any other condition. There shall be a presumption that the
provision of information in accordance with any other condition is
sufficient for the purposes of that condition, but that presumption shall
be rebutted, if the Authority states in writing that in its opinion such
further information is, or is likely to be, necessary to enable it to
exercise functions under the condition in question.
75
Condition 20. The Master Registration Agreement
1. The licensee shall become a party to and thereafter comply with the
provisions of the Master Registration Agreement.
76
Condition 21. Publication of Information to Customers
1. Subject to paragraph 3, the licensee shall inform each of its customers of
a number or numbers (the "Supply Number(s)") relevant to the registration
of that customer, under the Master Registration Agreement, with the
licensee to the premises owned or occupied by such customer:
(a) in a form in accordance with the terms of a direction issued by the
Authority, on each xxxx or statement given to the customer in relation
to the supply of electricity; and
(b) annually where the customer does not receive such a xxxx or statement.
2. The Supply Number shall consist of a number of data items, each of which
shall be represented by a numerical identifier which shall:
(a) have the number of digits specified in a direction issued by the
Authority;
(b) be approved by the Authority; and
(c) be used by the licensee in common with all electricity suppliers.
3. The Authority may issue a direction relieving the licensee of its
obligations under paragraph 1 to such extent and subject to such terms and
conditions as it may specify in that direction.
77
Condition 22. Domestic Premises
1. Any non-domestic premises which were supplied under contract by the
licensee at a rate reasonably expected not to exceed 12,000 kilowatt hours
a year, immediately before the date on which these standard conditions were
determined by the Secretary of State pursuant to section 33(1) of the
Utilities Xxx 0000, and in respect of which the customer has remained a
customer of the licensee continuously from that date, shall, for the
purposes of this licence, be treated as domestic premises until the first
of the following occurs:
(a) the contract expires or is terminated; or
(b) 31 March 2003.
2. Any premises supplied by the licensee which were domestic premises at the
time when the customer entered into a contract or became subject to a
deemed contract with the licensee in respect of supply to the said premises
shall, notwithstanding subsequent changes to the nature of the consumption
of electricity at those premises, be domestic premises for the purposes of
this licence, until the first of the following occurs:
(a) in the case of premises supplied under a contract, the contract
expires or is terminated; or
(b) in the case of premises supplied under a deemed contract, the premises
come to be supplied under a contract with the licensee or the licensee
ceases to supply the premises.
3. Any premises supplied by the licensee which were non-domestic premises at
the time when the customer entered into a contract or became subject to a
deemed contract with the licensee in respect of supply to the said premises
shall, notwithstanding subsequent changes to the nature of the consumption
of electricity at those premises, be non-domestic premises for the purposes
of this licence until the first of the following occurs:
(a) in the case of premises supplied under a contract, the contract
expires or is terminated; or
78
(b) in the case of premises supplied under a deemed contract, the premises
come to be supplied under a contract with the licensee or the licensee
ceases to supply the premises.
4. Any domestic premises supplied by the licensee which are supplied under a
multi-site contract, shall, for the purposes of this licence, be treated as
non-domestic premises until that contract expires or is terminated.
5. For the purposes of this condition, a "multi-site contract" is a contract
for the supply of electricity both to:
(a) one or more non-domestic premises; and
(b) one or more domestic premises occupied for purposes ancillary to those
for which any of the said non-domestic premises is occupied;
where all the premises are owned or occupied by:
(i) the same person or body of persons whether corporate or unincorporate;
or
(ii) an undertaking (the "principal undertaking") and any holding company,
subsidiary, or subsidiary of the holding company of that principal
undertaking, or any other undertaking in which the principal
undertaking has a participating interest.
6. Paragraphs 1 to 5 shall not apply in respect of the obligations in standard
conditions 26 (Record of and Report on Performance), 35 (Code of Practice
on Payment of Bills and Guidance for Dealing with Customers in Difficulty),
36 (Code of Practice on the Use of Prepayment Meters), 37 (Provision of
Services for Persons who are of Pensionable Age or Disabled or Chronically
Sick), 38 (Provision of Services for Persons who are Blind or Deaf) and 49
(Assignment of Outstanding Charges).
79
Condition 22A. Restriction or Revocation: Securing Continuity of Supply
1. Without prejudice to the Authority's power under section 6(4) of the Act,
if the licensee applies to the Authority for a modification of any term
contained in the licence so as to restrict the premises to which the
licensee may give a supply of electricity, or for the revocation of the
licence in accordance with any term contained in it, the licensee shall
provide the Authority with sufficient information so as to enable the
Authority to determine whether such arrangements have been made as:
(a) will secure continuity of supply for all relevant customers; and
(b) in the case of each relevant customer who is supplied with electricity
in pursuance of a contract, will ensure such continuity on the same
terms as nearly as may be as the terms of such contract.
2. A person is a relevant customer for the purpose of paragraph 1 above if:
(a) immediately before the restriction or revocation takes effect, he is
being supplied with electricity by the licensee; and
(b) in the case of a restriction, his premises are excluded from the
licence by the restriction.
3. Where, in preparation for a restriction or the revocation of its licence,
the licensee is making arrangements for securing continuity of supply for
its customers, it shall, in respect of its customers supplied with
electricity in pursuance of deemed contracts, except in so far as the
Authority consents:
(a) in making those arrangements, reasonably endeavour to select one or
more new suppliers which offer or will offer comparable services at
the lowest available cost, and
80
(b) use its reasonable endeavours to give its customers likely to be
affected, reasonable notice of those arrangements.
81
Condition 23. Payments Received in Relation to Standards of Performance
1. Any relevant payment made to the licensee by a distributor under its use of
system agreement shall be paid, as soon as reasonably practicable after its
receipt by the licensee, to the relevant customer as defined in paragraph 2
below.
2. In this condition:
"relevant payment" means a compensation payment made in relation
to any customer of the licensee (the
"relevant customer") pursuant to any
provision of the Regulations made under
section 39A of the Act.
"use of system agreement" means an agreement for the use of a
distributor's distribution system for the
distribution of electricity by such
distributor for the licensee.
82
Condition 24. Code of Practice on Procedures with Respect to Site Access
1. The licensee shall prepare and submit to the Authority for its approval a
code of practice setting out the principles and procedures the licensee
will follow in respect of any person acting on the licensee's behalf who
requires access to customers' premises.
2. The code of practice shall include procedures calculated to ensure that
persons visiting customers' premises on behalf of the licensee:
(a) possess the skills necessary to perform the required duties;
(b) are readily identifiable to members of the public;
(c) use passwords provided for vulnerable customers;
(d) are appropriate persons to visit and enter customers' premises;
(e) are able to inform customers, on request, of a contact point for help
and advice they may require in relation to the supply of electricity;
and
(f) comply with the provisions of the Rights of Entry (Gas and Electricity
Boards) Xxx 0000.
3. This condition is subject to the provisions of standard condition 27
(Preparation, Review of and Compliance with Customer Service Codes).
83
Condition 25. Efficient Use of Electricity
1. The licensee shall prepare and submit to the Authority for its approval a
code of practice setting out the ways in which the licensee will make
available to customers such guidance on the efficient use of electricity,
in each case given or prepared by a suitably qualified person, as will, in
the opinion of the licensee, enable such customers to make informed
judgements on measures to improve the efficiency with which they use the
electricity supplied to them.
2. The code of practice shall include, but shall not be limited to:
(a) the preparation and making available free of charge to any customer
who requests it of a statement, in a form approved by the Authority,
setting out information and advice for the guidance of customers in
the efficient use of electricity supplied to them;
(b) the making of arrangements for maintaining sources from which
customers may obtain further information about the efficient use of
electricity supplied to them, including the maintenance of a telephone
information service; and
(c) the preparation and making available free of charge to any customer
who requests it of a statement or statements of sources (to the extent
that the licensee is aware of the same) outside the licensee's
organisation from which customers may obtain additional information or
assistance about measures to improve the efficiency with which they
use the electricity supplied to them, such statement or statements to
include basic information which is publicly available on financial
assistance towards the costs of such measures available from central
or local government or through bodies in receipt of financial support
from Government in connection with measures to promote the efficiency
of energy use.
3. Where the Authority (who may have regard to the need for economy,
efficiency and effectiveness before giving directions under this paragraph)
gives directions to do so, the licensee shall:
84
(a) review and prepare a revision of the code of practice;
(b) take steps to bring to the attention of customers information on the
efficient use of electricity supplied to them; and
(c) send to each customer a copy of any information in relation to the
efficient use of electricity published by the Authority pursuant to
section 48 of the Act,
in such manner and at such times as will comply with those directions.
4. This condition is subject to the provisions of standard condition 27
(Preparation, Review of and Compliance with Customer Service Codes).
85
Condition 26. Record of and Report on Performance
1. The licensee shall keep a record of its general operation of the
arrangements mentioned in standard conditions 24 (Code of Practice on
Procedures with Respect to Site Access) and 25 (Efficient Use of
Electricity) and (where a Domestic Supply Direction has been issued to the
licensee) in standard conditions 35 (Code of Practice on Payment of Bills
and Guidance for Dealing with Customers in Difficulty), 36 (Code of
Practice on the Use of Prepayment Meters), 37 (Provision of Services for
Persons who are of Pensionable Age or Disabled or Chronically Sick), 38
(Provision of Services for Persons who are Blind or Deaf) and 39 (Complaint
Handling Procedure) and if the Authority so directs in writing, of its
operation of any particular cases specified, or of a description specified,
by the Authority.
2. The licensee shall, where a Domestic Supply Direction has been issued to
the licensee, keep a statistical record of its performance in relation to
the provision of electricity supply services to its domestic customers.
3. The licensee shall, from time to time as required by the Authority, provide
to the Authority and to the Consumer Council such of the information
contained in the records prepared in accordance with paragraphs 1 and 2 as
the Authority may request in writing.
4. As soon as is reasonably practicable after the end of each calendar year,
the licensee shall submit to the Authority and the Consumer Council a
report dealing with the matters mentioned in paragraphs 1 and 2 in relation
to that year and shall:
(a) publish the report so submitted in such manner as will in the
reasonable opinion of the licensee secure adequate publicity for it;
and
(b) send a copy of it free of charge to any person requesting one,
except that, in performing its obligations under sub-paragraphs (a) and
(b), the licensee shall exclude from the report such information as appears
to it to be necessary or expedient to ensure that, save where they consent,
individual customers referred to therein cannot readily be identified.
86
5. The report shall be presented, so far as is reasonably practicable, in a
standard form designated by the Authority for the purposes of this
condition generally.
87
Condition 27. Preparation, Review of and Compliance with Customer Service Codes
1. This condition applies to any code of practice required to be prepared by
the licensee pursuant to standard conditions 24 (Code of Practice on
Procedures with Respect to Site Access) and 25 (Efficient Use of
Electricity) and (where a Domestic Supply Direction has been issued to the
licensee) pursuant to standard conditions 35 (Code of Practice on Payment
of Bills and Guidance for Dealing with Customers in Difficulty), 36 (Code
of Practice on the Use of Prepayment Meters), 37 (Provision of Services for
Persons who are of Pensionable Age or Disabled or Chronically Sick), 38
(Provision of Services for Persons who are Blind or Deaf) and 39 (Complaint
Handling Procedure) of this licence.
2. In first preparing such a code the licensee shall, prior to submitting that
code to the Authority, consult the Consumer Council and shall have regard
to any representations made by the Consumer Council about such code or the
manner in which it is likely to be operated.
3. Where before the expiry of 30 days of the licensee first submitting such
code to the Authority for its approval the Authority notifies the licensee
that the Authority considers the code is not sufficient for the purposes of
meeting the requirements of this licence, the licensee shall forthwith make
such changes as the Authority may require.
4. The licensee shall, whenever requested to do so by the Authority, review
such code and the manner in which it has been operated, with a view to
determining whether any modification should be made to it or to the manner
of its operation.
5. In carrying out any such review the licensee shall consult the Consumer
Council and shall have regard to any representations made by the Consumer
Council about such code or the manner in which it is likely to be or (as
the case may be) has been operated.
6. The licensee shall submit any revision of such code which, after consulting
the Consumer Council in accordance with paragraph 5, it wishes to make, to
the Authority for its approval and following its approval in writing shall
then revise the code.
88
7. The licensee shall:
(a) as soon as practicable following the preparation of any code or any
revision made to it, send to the Authority and the Consumer Council a
copy of such code or such revision (in each case in the form approved
by the Authority);
(b) at least once in each year, draw the attention of those of its
customers to whom such code applies to the existence of the code and
of each substantive revision of it and to the means by which they may
inspect a copy of such code in its latest form; and
(c) give or send free of charge a copy of such code (as from time to time
revised) to any person who requests it.
8. No changes may be made to any code otherwise than in accordance with the
above procedures.
9. The licensee shall ensure, so far as reasonably practicable, that it
complies with such arrangements or procedures (as the case may be) as are
contained in or described by any code to which this condition applies and
approved by the Authority or any revision to such code approved by the
Authority.
89
Condition 28. Deemed Contracts
1. This condition sets out the obligations placed on the licensee in relation
to its deemed contracts.
2. The licensee shall use its reasonable endeavours to ensure the terms of its
deemed contracts are not unduly onerous.
3. In the case of any class of domestic customers or of any class of
non-domestic customers, the terms of a deemed contract shall be taken to be
unduly onerous if the revenue derived from supplying electricity to
customers of the class in question on those terms -
(a) significantly exceeds the costs of supply of electricity; and
(b) exceeds such costs of supply by significantly more than the licensee's
revenue exceeds costs of supply in the case of the generality of its
domestic customers or, as the case may be, in the case of the
generality of its non-domestic customers (excluding in each case
customers supplied in accordance with standard condition 29 (Supplier
of Last Resort)).
4. For the purposes of paragraph 3 "costs of supply" shall not include any
costs attributable to any promotional, marketing or advertising activities
of the licensee.
5. The licensee shall, as soon as is reasonably practicable after determining
or revising (in whole or in part) any of the terms of its deemed contracts,
send a copy to the Authority.
6. At the request of any person, the licensee shall supply that person with a
copy of the terms of its deemed contracts.
7. The licensee shall ensure that the terms of its deemed contracts are such
that, in their application to electricity supplied under a last resort
supply direction, the amount of any charges for electricity so supplied
complies with the provisions of paragraphs 13, 14 and 16 of standard
condition 29 (Supplier of Last Resort).
90
8. Where the licensee supplies a customer with electricity under a deemed
contract, it shall use its reasonable endeavours to furnish the customer
with -
(a) details of the principal terms of that deemed contract;
(b) written notice that contracts on terms other than deemed contracts may
be available and as to how information can be obtained as to any such
terms; and
(c) where the customer is a domestic customer, an accurate summary of the
principal terms of domestic supply contracts available.
9. The licensee shall ensure the terms of its deemed contracts -
(a) make the like provision as is required in the case of a contract by
paragraph 1 of standard condition 29B (Provision for Termination upon
a Direction);
(b) where the customer is a domestic customer, make the like provision as
is required in the case of a contract by standard condition 45
(Security Deposits);
(c) where the customer is a domestic customer, make the like provision as
is required in the case of a contract by paragraph 1 of standard
condition 47 (Termination of Contracts in Specified Circumstances);
and
(d) provide that where the customer intends to be supplied with
electricity at the premises under a contract with the licensee or
another electricity supplier, the deemed contract does not terminate
but continues to have effect until the time when the licensee or, as
the case may be, the other electricity supplier begins to supply
electricity under a contract, at which time the deemed contract ceases
to have effect.
10. Subject to paragraph 17 of standard condition 29 (Supplier of Last Resort),
nothing in paragraph 9 shall be construed as preventing the inclusion of
terms providing for the termination of a deemed contract which are
additional to and do not derogate from those required by sub-paragraphs
(a), (c) and (d) of paragraph 9.
91
11. In determining the number of kilowatt hours of electricity which are to be
treated as supplied or taken under a deemed contract, the licensee shall
act on a reasonable basis, taking into account available electricity demand
data for the premises in question and other relevant factors.
12. Paragraphs 2 to 4 and sub-paragraph (b) of paragraph 8 shall not apply in
relation to customers supplied with electricity in accordance with standard
condition 29 (Supplier of Last Resort).
92
Condition 29. Supplier of Last Resort
1. Where this paragraph applies, the Authority may in writing direct the
licensee to supply electricity in accordance with this condition ("the last
resort supply direction").
2. Paragraph 1 applies where it appears to the Authority that -
(a) circumstances have arisen which would entitle the Authority to revoke
the supply licence of an electricity supplier other than the licensee
("the other supplier"); and
(b) the licensee could comply with the last resort supply direction
without significantly prejudicing its ability -
(i) to continue to supply its customers; and
(ii) to fulfil its contractual obligations for the supply of
electricity.
3. The last resort supply direction shall take effect from the date of
revocation of the other supplier's licence and shall continue for such
period (being no longer than 6 months) specified in the direction.
4. The licensee shall supply electricity to customers of the other supplier at
such premises as are specified or described in the last resort supply
direction.
5. The licensee shall not be required under this condition to supply
electricity to a particular customer at particular premises which it would
not be required to supply by virtue of sub-paragraphs 2(b) to (e) of
standard condition 32 (Duty to Supply Domestic Customers).
6. Within 2 working days of the last resort supply direction taking effect,
the licensee shall send to the Authority, for its approval, a draft of the
notice referred to in paragraph 7 which the licensee proposes to send to
each of the premises specified or described in the direction.
7. As soon as reasonably practicable after the Authority has approved the form
and content, except as to the level of charges payable for supply of
electricity under the direction or an
93
explanation of how the charges are determined, of the notice sent to it
pursuant to paragraph 6, the licensee shall send a copy of the notice to
each of the premises specified or described in the last resort supply
direction. The notice to be sent to all premises specified or described in
the last resort supply direction, shall -
(a) inform the customer in question that, notwithstanding any contract or
deemed contract the customer may have had with the other supplier, the
customer is no longer supplied by that supplier and has not been
supplied by the other supplier since the date on which the direction
took effect;
(b) inform the customer in question that, the licensee became the supplier
of electricity to the customer from the date the direction took
effect; and
(c) set out the charges payable for the supply of electricity under the
direction or an explanation of how the charges are determined.
8. Unless the Authority otherwise consents, the licensee shall, so far as is
reasonably practicable, give the Authority at least 5 days notice of any
increase in charges for the supply of electricity to premises in accordance
with the last resort supply direction.
9. The licensee shall use all reasonable endeavours to secure a meter reading
at each of the premises specified or described in the last resort supply
direction within 14 days of the direction taking effect.
10. The licensee is not obliged to secure a meter reading where-
(a) the Authority accepts that it would not be feasible or economic to do
so; or
(b) to do so would necessitate the entering of particular premises without
the consent of the occupier or the seeking of entry on more than one
occasion.
11. The licensee may charge for the supply of electricity to the premises
specified or described in the last resort supply direction at a rate which
is no greater than -
94
(a) such charges as may be expected, in aggregate, approximately to equal
the licensee's reasonable costs of supply (including such costs
attributable to the purchase of electricity at short notice) together
with a reasonable profit; or
(b) the charges set out in the notice given by the Authority under
paragraph 12.
12. Where, within 5 days of receipt by the Authority of the notice given by the
licensee under paragraph 8, the Authority determines that charges proposed
by the licensee would be likely to cause hardship to domestic customers, it
may direct by notice in writing to the licensee that licensee's charges
shall not exceed those which it specifies in the notice as being likely to
avoid or mitigate such hardship.
13. The licensee shall not be required by paragraph 11(b) to make charges which
are less than those which would be made under the licensee's deemed
contract for comparable premises with similar metering arrangements
supplied with electricity otherwise than in accordance with a last resort
supply direction.
14. Unless the Authority otherwise consents, the licensee shall ensure that its
terms and conditions (including charges) for a supply pursuant to a last
resort supply direction do not show any undue preference or undue
discrimination as between any persons or classes of persons.
15. Notwithstanding anything in standard condition 28 (Deemed Contracts), the
terms of the licensee's deemed contract scheme for the supply of
electricity to premises in accordance with a last resort supply direction
may provide that, until the direction ceases to have effect, the customer
may not terminate his deemed contract except -
(a) with the consent of the licensee;
(b) on taking a supply at the premises under a contract with the licensee
or another electricity supplier; or
(c) on ceasing to take electricity at the premises.
95
16. Where the licensee enters into any new contract for the purchase of
electricity in order to comply with its obligations under this condition,
it shall use reasonable endeavours to make the purchase as economically as
possible in all the circumstances.
96
Condition 29A. Supplier of Last Resort Supply Payments
1. This condition sets out how, and how much, the licensee may recover in
respect of any losses it incurs in complying with a last resort supply
direction given under standard condition 29 (Supplier of Last Resort).
2. Except in relation to a claim made following a direction by the Authority
pursuant to paragraph 13 of standard condition 29 (Supplier of Last
Resort), paragraphs 3 to 12 of this condition shall not have effect in this
licence in relation to any claim under sub-paragraph 3(a), sub-paragraph
3(b) or both those sub-paragraphs if before a last resort supply direction
is issued to the licensee it gives notice of consent to that effect to the
Authority.
3. Where the licensee intends to make a claim for the payment of monies ("last
resort supply payments") pursuant to -
(a) standard condition 33 (Last Resort Supply: Security for Payment), as
incorporated in the licence of the other supplier (as defined in
paragraph 2 of standard condition 29 (Supplier of Last Resort);
(b) standard condition 48 (Last Resort Supply: Payment Claim) of the
standard conditions of the electricity distribution licence,
the licensee shall in respect of each claim made notify the proposal to the
Authority. The notification must include a calculation of the relevant
amount with supporting information and must be received by the Authority
within 6 months of the last resort supply direction to which it relates
ceasing to have effect.
4. Subject to paragraphs 5 and 6, the total sum of last resort supply payments
claimed by the licensee ("the relevant amount") shall not exceed the amount
by which -
(a) the aggregate costs (including interest on working capital) reasonably
incurred by the licensee in supplying electricity to premises in
pursuance of the last resort supply direction, together with a
reasonable profit,
97
are greater than
(b) the aggregate amounts recovered by the licensee by way of charges for
electricity supplied to premises in pursuance of the last resort
supply direction (after taking all reasonable steps to recover such
charges).
5. Where the Authority considers that it is appropriate in all the
circumstances for the licensee to make the claim notified pursuant to
paragraph 3, the Authority will issue a written consent to the licensee.
The Authority may, within 3 months of the notification under paragraph 3
and after consulting the licensee, determine that an amount other than that
notified to it by the licensee is a more accurate calculation of the
relevant amount.
6. Where the Authority makes a determination in pursuance of paragraph 5, the
amount specified in the determination shall be treated as the relevant
amount for the purposes of the following paragraphs of this condition.
7. In respect of a claim of the type mentioned in sub-paragraph 3(a), the
licensee shall, within 6 months of the last resort supply direction to
which it relates ceasing to have effect, submit the claim to the trustee
appointed by the Authority pursuant to standard condition 33 (Last Resort
Supply: Security for Payment) of the supply licence of the other supplier
(as defined in paragraph 2 of standard condition 29 (Supplier of Last
Resort)) specifying the relevant amount.
8. Where a last resort supply payment made to the licensee by the trustee
referred to in paragraph 7 is less than the relevant amount, the licensee
may claim from the relevant electricity distributors further last resort
supply payments pursuant to paragraphs 9 and 10.
9. Last resort supply payments claimed by the licensee from the relevant
electricity distributors shall not in aggregate exceed the amount by which
the payment (if any) made to the licensee by the trustee referred to in
paragraph 7 fell short of the relevant amount (the "under payment").
10. In respect of a claim of the type mentioned in sub-paragraph 3(b), the
licensee shall, within 6 months of the last resort supply direction to
which it relates ceasing to have
98
effect, submit the claim to each relevant electricity distributor (so far
as is reasonably practicable all claims shall be submitted at the same
time) specifying -
(a) their respective proportion of the under payment (as defined in
paragraph 9); and
(b) whether payment is to be made by quarterly or monthly instalments.
11. The respective proportion shall be the same as the proportion of the total
number of premises in Great Britain which is located within that relevant
distributor's distribution services area.
12. In this condition "relevant distributor" means a distributor in whose
licence Section C has effect.
99
Condition 29B. Provision for Termination upon a Direction
1. The licensee shall not enter into a contract for the supply of electricity
to any premises whether or not the contract is for a specified period
unless it provides that it shall terminate when a last resort supply
direction given to an electricity supplier other than the licensee in
pursuance of standard condition 29 (Supplier of Last Resort) of that other
supplier's licence comes into effect in relation to the premises in
question.
2. Where a domestic supply contract is for both the supply of electricity and
the provision of other goods or services, any reference in this condition
to its termination is a reference to its termination in respect of the
supply of electricity alone.
100
Condition 30. Not used
101
SECTION C. DOMESTIC SUPPLY OBLIGATIONS
Condition 31. Interpretation of Section C
1. In this Section of the standard conditions, unless the context otherwise
requires:
"date of the domestic means, in respect of any domestic supply
supply contract" contract, the date on which that
contract is entered into.
"deposit" means a deposit of money by way of
security for the payment of charges for
the supply of electricity.
"fixed term period" means, in relation to a domestic supply
contract, a specified period of more
than 12 months during which the
principal terms of that contract may not
be varied by the licensee other than by
agreement with the customer.
"relevant premises" in relation to a domestic supply
contract, means any premises supplied
with electricity under the terms of the
contract.
"termination fee" means any sum of money or other penalty
(whether financial or otherwise) which
may be demanded of a customer solely in
consequence of the termination of a
domestic supply contract.
102
"valid notice of termination" has the meaning given in paragraph 2 of
standard condition 46 (Termination of
Contracts on Notice).
103
Condition 32. Duty to Supply Domestic Customers
1. Subject to the provisions of this condition, and without prejudice to any
of the licensee's obligations and rights under the Act or this licence, the
licensee shall, upon receipt of a request (as defined in paragraph 3) from
a domestic customer, as soon as is reasonably practicable:
(a) offer to enter into a domestic supply contract to supply electricity
to the domestic premises in respect of which the supply is requested;
and
(b) where the terms offered are accepted by the domestic customer, give a
supply of electricity to those premises in accordance with the terms
offered.
2. The licensee shall not be required by paragraph 1 or standard condition 29
(Supplier of Last Resort) to give a supply of electricity where:
(a) the domestic customer having requested a supply of electricity,
declines to enter into the domestic supply contract offered pursuant
to paragraph 1;
(b) the licensee or another electricity supplier is bound by the
provisions of a domestic supply contract in respect of the premises
where the supply is requested and such domestic supply contract will
neither have expired nor have been terminated by the date from which
the domestic customer requires a supply of electricity from the
licensee to commence;
(c) there are circumstances beyond the licensee's control which prevent
the licensee from supplying electricity to the domestic premises in
respect of which the supply is requested (save that this shall not
relieve the licensee from an obligation to take all requisite steps,
so far as is reasonably practicable, to secure the necessary supply of
electricity);
(d) the licensee would or might be in breach of regulations made under
section 29 of the Act in relation to the supply of electricity to the
premises in respect of which a supply is requested and the licensee
has taken all such steps as it was reasonable to
104
take both to prevent the circumstances from occurring and to prevent
them from having that effect;
(e) it is not reasonable in all the circumstances for the licensee to be
required to supply electricity; or
(f) in relation to an obligation set out in paragraph 1, the licensee has
requested a deposit by way of security for the payment of charges and
the customer concerned has not paid this;
provided that in the circumstances referred to in sub-paragraph (e), and
where the licensee already supplies electricity to the premises in respect
of which the supply is requested, the licensee shall have first given not
less than 7 working days' notice of its intention to discontinue the
supply.
3. In this condition:
(a) "request" includes, to the extent that the licensee so requires, the
following information:
(i) the premises in respect of which the supply is required;
(ii) the day on which the supply is required to commence;
(iii) the maximum power which may be required at any time to the
extent that this differs from that normally required by a
domestic customer; and
(iv) the minimum period for which the supply is required to be given;
and
(b) any reference to giving a supply of electricity includes a reference
to continuing to give such a supply and any reference to requesting a
supply includes a reference to requesting such a supply to continue to
be given.
105
Condition 33. Last Resort Supply: Security for Payments
1. The licensee shall establish and maintain arrangements ("security
arrangements") in accordance with this condition.
2. If licensed to supply electricity to domestic customers, the licensee shall
establish security arrangements by -
(a) taking out a bond or other instrument approved by the Authority; or
(b) making other arrangements as the Authority may approve,
to secure such sum of money as is calculated in accordance with principles
determined by the Authority and notified to the licensee but in any case
not exceeding the maximum sum set out in paragraph 7.
3. The security arrangements established by the licensee shall provide that,
in the event of the Authority giving directions to one or more other
electricity suppliers under standard condition 29 (Supplier of Last Resort)
as incorporated in those suppliers' licences to supply the licensee's
domestic customers, there shall be payable, to such person as the Authority
may appoint ("the trustee"), such sums, or instalments of sums, as the
trustee may (after consulting the Authority) request, subject, however, to
paragraphs 4 and 5.
4. The Authority may, at any time, vary the principles determined under
paragraph 2 following consultation with the licensee, all other suppliers
and the Consumer Council.
5. The licensee shall maintain the security arrangements and shall -
106
(a) ensure that the arrangements are not terminated or varied (save for
the purpose of extending their duration or in accordance with
sub-paragraph (b)) other than with the prior consent of the Authority;
and
(b) at least once in each year -
(i) consider whether the sum secured by the arrangements requires to
be revised in order to ensure that it continues to be set in
compliance with the principles determined by the Authority (as
varied from time to time); and
(ii) where such sum requires revision, establish and thereafter
maintain additional or amended arrangements with the approval of
the Authority.
6. Where the Authority reasonably considers that the security arrangements
established and maintained by the licensee do not secure a sum calculated
in accordance with the principles determined by the Authority (as varied
from time to time), it may at any time, issue a direction/1/ to the
licensee requiring the licensee to establish and thereafter maintain
additional or amended arrangements to secure such sums as may be specified
in the direction.
7. The maximum sum referred to in paragraph 2 shall be determined for each
calendar year and shall be the aggregate of -
(a) the number of domestic premises expected to be supplied in that year
multiplied by the specified amount
and
(b) the amount of electricity expected to be supplied (expressed in
kilowatt hours) in that year multiplied by the specified amount.
8. For the purposes of paragraph 7, the "specified amount" shall be the amount
approved by the Authority in accordance with paragraph 9, not exceeding -
___________________
107
(a) in the case of sub-paragraph (a) of paragraph 7,(pound)4 per premises
(as adjusted for inflation); and
(b) in the case of sub-paragraph (b) of paragraph 7, 0.21 xxxxx per
kilowatt hour (as adjusted for inflation).
9. The Authority may, in respect of any relevant year, approve for the
purposes of this condition generally a sum as the specified amount. If it
does so -
(a) in the case of the calendar year beginning on 1 January 2001, not
later than 1 month after the date on which the Secretary of State
determines these standard conditions pursuant to sub-section 33(1) of
the Utilities Xxx 0000; and
(b) in the case of any subsequent calendar year, not later than 30
September in the previous year,
and where the Authority fails to approve a sum in respect of any year, the
specified amount for that year shall be the sum which it last so approved
in respect of a previous year.
10. For the purposes of paragraph 8, each of the amounts referred to in
sub-paragraphs (a) and (b) shall be adjusted for inflation in respect of
each calendar year by multiplying that amount by x, where x is obtained by
dividing the retail price index for 1 August in that year by the retail
price index for 1 August 2001
11. In paragraph 10, the "retail price index" is a reference to the general
index of retail prices (for all items) published by the Office for National
Statistics; and if that index is not published for any month that reference
shall be read as a reference to any substituted index or index figure
published by that office for that month.
108
Condition 34. Not used
109
Condition 35. Code of Practice on Payment of Bills and Guidance for Dealing with
Customers in Difficulty
1. The licensee shall, no later than the date on which this condition
takes effect pursuant to the provisions of standard condition 2
(Application of Section C (Domestic Supply Obligations)), prepare and
submit to the Authority for its approval a code of practice concerning
the payment of electricity bills by its domestic customers, including
appropriate guidance for the assistance of such customers who, through
misfortune or inability to cope with electricity supplied on credit
terms, may have difficulty in paying such bills.
2. The code of practice shall include procedures by which the licensee can
distinguish, so far as is reasonably practicable, customers in such
difficulty (the "relevant customers with payment difficulties") from
others in default and by which the licensee can:
(a) provide general information as to how relevant customers with
payment difficulties might reduce their bills in the future by
the more efficient use of electricity;
(b) where such a facility is available, accept in payment for
electricity supplied sums which are deducted at source from
social security benefits payable to relevant customers with
payment difficulties;
(c) detect failures by relevant customers with payment
difficulties to comply with arrangements entered into for
paying by instalments charges for electricity supplied;
(d) make such arrangements so as to take into account the
customers' ability to comply with them;
(e) ascertain, with the assistance of any information provided by
other persons or organisations, the ability of customers to
comply with such arrangements; and
(f) provide for customers who have failed to comply with such
arrangements, or procure for them the provision of, a
prepayment meter (where safe and practicable to do so).
110
3. In formulating the procedures for the code of practice referred to at
paragraph 2 the licensee shall have particular regard:
(a) to the purpose of avoiding, in so far as is practicable, the
disconnection of premises occupied by relevant customers with
payment difficulties otherwise than following compliance by
the licensee with such procedures; and
(b) to the interests of relevant customers with payment
difficulties who are of pensionable age or disabled or
chronically sick and to the purpose of avoiding, in so far as
is practicable, the disconnection of premises occupied by such
customers with payment difficulties during the winter months
of each year, (that is to say the months of January, February,
March, October, November and December in each year),
and the procedures shall be designed for the achievement of such
purposes.
4. This condition is subject to the provisions of standard condition 27
(Preparation, Review of and Compliance with Customer Service Codes).
111
Condition 36. Code of Practice on the Use of Prepayment Meters
1. The licensee shall, no later than the date on which this condition
takes effect pursuant to the provisions of standard condition 2
(Application of Section C (Domestic Supply Obligations)), prepare and
submit to the Authority for its approval a code of practice concerning
the use of prepayment meters by its domestic customers, including
appropriate guidance for the assistance of its prepayment meter
customers who wish to take a supply of electricity on other terms.
2. The code of practice shall set out the licensee's policy on the
installation of prepayment meters and shall include procedures by which
the licensee will where appropriate:
(a) provide general information for customers on the operation,
usefulness, advantages and disadvantages of prepayment meters,
including details of:
(i) token outlets and card or key charging facilities
within the areas supplied with electricity by the
licensee;
(ii) the actions available to customers on the malfunction
of a prepayment meter or a prepayment card or key;
and
(iii) any standards of performance (and associated
payments) applying to the licensee in relation to
premises supplied by it through prepayment meters;
(b) arrange for the calibration of any prepayment meter provided
in accordance with sub-paragraph 2(f) of standard condition 35
(Code of Practice on Payment of Bills and Guidance for Dealing
with Customers in Difficulty) so as to take into account,
having due regard to all information available to the licensee
(including any information provided by other persons or
organisations), the relevant customer with payment
difficulties' ability to pay any charges due from him under
the arrangements contemplated by that standard condition in
addition to the other charges lawfully being recovered through
the prepayment meter;
112
(c) arrange for the recalibration of prepayment meters:
(i) in the case of an individual customer, at the
conclusion of any such arrangements applying to that
customer; and
(ii) generally, following changes in the price at which
the licensee supplies electricity to prepayment meter
customers; and
(d) remove prepayment meters, setting out the timescale and the
conditions under which such removal might take place.
3. This condition is subject to the provisions of standard condition 27
(Preparation, Review of and Compliance with Customer Service Codes).
113
Condition 37. Provision of Services for Persons who are of Pensionable Age or
Disabled or Chronically Sick
1. The licensee shall, no later than the date on which this condition
takes effect pursuant to the provisions of standard condition 2
(Application of Section C (Domestic Supply Obligations)), prepare and
submit to the Authority for its approval a code of practice detailing
the special services the licensee will make available for its domestic
customers who are of pensionable age or disabled or chronically sick.
2. The code of practice shall include arrangements by which the licensee
will on request of such customers, where reasonably practicable and
appropriate, and in each case free of charge:
(a) provide special controls and adapters for electrical
appliances and meters (including prepayment meters) and
reposition meters;
(b) provide special means of identifying persons acting on behalf
of the licensee;
(c) give advice on the use of electricity;
(d) send bills in respect of the supply of electricity to any such
customer to any person who is willing to be sent such bills
and is nominated by that customer (without prejudice, however,
to the right of the licensee to send such bills both to the
customer and to the nominated person where that appears
appropriate to the licensee); and
(e) provide, where neither the customer nor anyone living with him
is able to read the electricity meter, for the meter to be
read once in each quarter and for the customer to be informed
of the readings so obtained.
3. The code of practice shall further include arrangements whereby the
licensee will:
(a) establish a list (the "Priority Service Register") of those of
its domestic customers who, by virtue of being of pensionable
age or disabled or chronically sick, require:
114
(i) information and advice in respect of the matters set
out at paragraph 2; or
(ii) (where they have special communication needs or
depend on electricity for medical reasons) advance
notice of planned interruptions to the supply of
electricity;
(b) notify its customers at least once each year of the existence
of the Priority Service Register and of how domestic customers
may be included on it;
(c) maintain the Priority Service Register, comprising the
relevant details of each of its domestic customers who
requests his inclusion on it, or on behalf of whom such a
request is received from any third party; and give to those
customers so registered:
(i) in respect of the matters set out at paragraph 2; and
(ii) in respect of interruptions to the supply of
electricity,
such information and advice as may be appropriate and is of
such nature as shall be set out in the code of practice,
provided that where the licensee is reliant on the relevant
distributor for any such information, the licensee shall use
all reasonable endeavours to obtain such information from the
relevant distributor as soon as is practicable; and
(d) provide the relevant distributor with such information in the
Priority Service Register relating to the matters mentioned in
paragraphs 2(a) and (b) and 3(a)(ii), in such form and at such
intervals, as is relevant to the distributor's licence
obligations.
4 This condition is subject to the provisions of standard condition 27
(Preparation, Review of and Compliance with Customer Service Codes).
115
Condition 38. Provision of Services for Persons who are Blind or Deaf
1. The licensee shall, no later than the date on which this condition
takes effect pursuant to the provisions of standard condition 2
(Application of Section C (Domestic Supply Obligations)), prepare and
submit to the Authority for its approval a code of practice detailing
the special services the licensee will make available for its domestic
customers who are disabled by virtue of being blind or partially
sighted, or deaf or hearing impaired.
2. The code of practice shall include arrangements by which the licensee
will, on request, in each case free of charge:
(a) make available to its blind and partially sighted customers,
by telephone or other appropriate means, information
concerning the details of any xxxx relating to the supply of
electricity to them and a facility for enquiring or
complaining in respect of any such xxxx or any service
provided by the licensee; and
(b) make available to its deaf and hearing impaired customers,
being in possession of appropriate equipment, facilities to
assist them in enquiring or complaining about any xxxx
relating to the supply of electricity to them or any service
provided by the licensee.
3. This condition is subject to the provisions of standard condition 27
(Preparation, Review of and Compliance with Customer Service Codes).
116
Condition 39. Complaint Handling Procedure
1. The licensee shall, by 1 November 2001 or the date on which this
condition takes effect in this licence, whichever date is later,
pursuant to the provisions of standard condition 2 (Application of
Section C (Domestic Supply Obligations)), prepare and submit to the
Authority for its approval a code of practice detailing the procedure
for handling complaints from domestic customers about the manner in
which the licensee conducts its supply business. Such code shall also
establish a procedure for handling complaints from domestic customers
which relate to matters associated with the distribution of electricity
or any other activity connected with the supply of electricity not
forming part of the supply business.
2. Any such procedures established in accordance with this condition shall
specify the periods within which it is intended that different
descriptions of complaint should be processed and resolved.
3. This condition is subject to the provisions of standard condition 27
(Preparation, Review of and Compliance with Customer Service Codes).
117
Condition 40. Information Given to Domestic Customers
1. The licensee shall keep each of its domestic customers (save, insofar
as the customer receives an unmetered supply) informed of the amount of
electricity which, since the customer was last informed, its records
show as having been consumed by that customer:
(a) according to the meter through which the customer is supplied;
or
(b) where no meter reading is available, according to the estimate
of the licensee.
2. It shall be a sufficient compliance with paragraph 1 if the information
required by the paragraph in question is given on or with each xxxx or
statement which is rendered in respect of the supply of electricity to
a domestic customer in relation to the supply of electricity or
annually, where the customer does not receive such a xxxx or statement.
3. The licensee shall inform any of its domestic customers of the most
recent meter reading if so requested.
4. The licensee shall keep each of its domestic customers informed:
(a) that the Consumer Council can assist in resolving complaints
which the licensee has not resolved to the customer's
satisfaction; and
(b) how the relevant office of the Consumer Council can be
contacted,
by giving that information on or with each xxxx rendered or statement
provided in respect of the supply of electricity to such customers and
annually to each domestic customer to whom no such bills or statements
are given.
118
Condition 41. Terms for Supply of Electricity Incompatible with Licence
Conditions
1. The licensee shall not enter into or offer to enter into a variation of
or operate any domestic supply contract or deemed contract for the
supply of electricity to a customer at domestic premises otherwise than
on terms which comply with the licensee's obligations under the
licence.
2. The licensee shall not enforce or take advantage of any term of a
domestic supply contract for the supply of electricity to a customer at
domestic premises if:
(a) the inclusion of that term was incompatible with its
obligations under any of the conditions, or
(b) the enforcement or the taking advantage of that term would be
so incompatible.
3. The licensee shall not take advantage of the omission of any term from
a domestic supply contract or deemed contract for the supply of
electricity to a customer at domestic premises if that term was
required to be included in the contract or deemed contract in question
by reason of the conditions.
119
Condition 42. Domestic Supply Contracts
1. A domestic supply contract is a contract for the supply of electricity
to domestic premises (as varied from time to time) which complies with
the provisions of this condition.
2. Without prejudice to its rights and obligations under the Act, the
licensee shall not supply electricity to domestic premises except under
a domestic supply contract or a deemed contract.
3. A domestic supply contract shall:
(a) be in a standard form, save that there may be (reasonably)
different forms for different areas, cases and circumstances;
(b) set out all the terms and conditions, including terms as to
price, on which the licensee will supply electricity in the
relevant case; and
(c) contain terms reflecting the termination provisions of
standard conditions 46 (Termination of Contracts on Notice)
and 47 (Termination of Contracts in Specified Circumstances).
4. The licensee shall determine the terms on which it is prepared to enter
into a domestic supply contract and, for the purposes of this paragraph
-
(a) different terms may be determined for different cases or
classes of cases, or for different areas; and
(b) the terms shall include ones which correspond, as nearly as
may be (save in so far as they may provide for lower charges),
to those of a deemed contract under paragraph 3 of Schedule 6
to the Act.
5. Any domestic supply contract for both the supply of electricity and the
provision of goods or services shall identify separately the charge for
that supply of electricity from the charge for the goods or services..
120
6. Where the Secretary of State has specified an area of Scotland by an
order made pursuant to section 3A of the Act, a domestic supply
contract for the supply of electricity to premises within that area
shall be on terms as to price which are the same as those for an
equivalent supply to any other premises within that area.
7. Where a domestic supply contract may be terminated by a customer by
virtue of any provision included in that domestic supply contract in
compliance with standard conditions 46 (Termination of Contracts on
Notice) and 47 (Termination of Contracts in Specified Circumstances),
the licensee may at its discretion accept a lesser period of notice
than is specified in that provision.
8. Nothing in this licence shall prevent the licensee from entering into a
domestic supply contract which contains provisions for its termination
that are additional to and do not derogate from the principles set out
at standard conditions 46 (Termination of Contracts on Notice) and 47
(Termination of Contracts in Specified Circumstances).
121
Condition 43. Contractual Terms - Methods of Payment
1. Where the licensee offers to supply electricity to domestic customers
under a domestic supply contract, it shall have available forms of
domestic supply contract which provide for the payment of charges for
electricity supplied to domestic premises:
(a) by prepayment through a prepayment meter;
(b) by different methods, including:
(i) by cash, at such places and to such persons, as are
reasonable in all the circumstances; and
(ii) by cheque, and
(c) at a reasonable range of different intervals, including:
(i) paying twice-monthly or fortnightly or more
regularly, such sums as agreed;
(ii) paying monthly a predetermined sum; and
(iii) paying quarterly in arrears.
2. Where the licensee supplies electricity to domestic premises under a
deemed contract, the terms of that contract shall include terms in
respect of all the ways of making payments mentioned in sub-paragraph
1(b) and the frequencies mentioned in sub-paragraph 1(c). The foregoing
shall not apply to deemed contracts made following a direction under
paragraph 1 of standard condition 29 (Supplier of Last Resort).
3. Before entering into any domestic supply contract (other than through a
prepayment meter) the licensee shall inform the customer of and offer
to enter into domestic supply contracts which comply with
sub-paragraphs 1(b) and (c).
122
4. The licensee shall process all requests for a supply of electricity to
domestic premises without undue preference or undue discrimination.
5. The licensee shall send copies of each of the forms of domestic supply
contract (as revised from time to time) under which it supplies or
offers to supply electricity:
(a) on receipt of a request, to any person; and
(b) not later than the date on which it first offers to supply
electricity under each such form of domestic supply contract
(or revision thereof), to the Authority and the Consumer
Council.
6. The licensee shall prepare, in respect of each form of domestic supply
contract:
(a) a document which sets out an accurate summary of the principal
terms of that form of domestic supply contract; and
(b) particulars of any inducements offered to any person entering
into such a domestic supply contract which might reasonably be
expected materially to influence the decision whether or not
to enter into it.
7. The licensee shall publish the documents and particulars referred to at
paragraph 6 in a manner that will in the opinion of the licensee secure
adequate publicity for them, and shall send copies of them to the
Authority and the Consumer Council no later than the date on which they
are published.
123
Condition 44. Notification of Terms
1. Before entering into any domestic supply contract the licensee shall take
all reasonable steps to draw the attention of the customer to the principal
terms of the domestic supply contract.
2. Paragraph 3 below applies where a domestic supply contract has been entered
into with, or an offer which is not within 5 days rejected by the licensee
is made by, a domestic customer in the course of:
(a) any visit by a representative of the licensee to the premises of the
domestic customer,
(b) any conversation in a place to which the public have access between a
representative of the licensee and the domestic customer, or
(c) any telephone conversation, or any internet or other electronic or
telegraphic communication between the licensee and the domestic
customer.
3. Where this paragraph applies, the licensee shall (except where it has
already done so) provide the domestic customer with a copy of the full
terms of any domestic supply contract that has arisen, or which on
acceptance will arise, between the licensee and the customer within 5 days
after the domestic supply contract was entered into, or the offer was made
by the customer.
4. Subject to paragraph 5 and to standard condition 32 (Duty to Supply
Domestic Customers), the licensee shall, at least 30 days before a domestic
supply contract is due to expire or otherwise terminate, send to the
domestic customer:
(a) a written offer to enter into a new domestic supply contract for the
supply of electricity from the date of expiry of the existing domestic
supply contract,
124
drawing the attention of the domestic customer to the principal terms
relevant to that offer;
(b) an accurate summary of the principal terms of other domestic supply
contracts which the licensee will make available to the domestic
customer; and
(c) details of how the domestic customer can obtain continuity of supply
from the licensee; and
(d) the principal terms in writing of the deemed contract that would apply
upon the expiry or termination of the domestic supply contract if no
new domestic supply contract is agreed.
5. Paragraph 4 shall not apply where:
(a) the domestic customer has informed the licensee that the customer does
not wish to continue to be supplied with electricity by the licensee
after the expiry or termination of the existing domestic supply
contract; or
(b) it is not reasonable in all the circumstances for the licensee to be
required to continue to supply that customer and the licensee has (at
least 30 days before the contract was due to expire) both notified the
domestic customer to that effect and informed him that if the domestic
customer does not make arrangements to obtain a supply from another
electricity supplier, then the customer's supply will be under deemed
contract.
6. Except in such cases or classes of cases as may be approved by the
Authority, where a domestic supply contract allows for its unilateral
variation (in any respect) by the licensee and pursuant thereto the
licensee raises the charges for the supply of electricity pursuant to such
contract or otherwise varies any term to the significant disadvantage of
the domestic customer, the licensee shall within 10 days of the variation
give to the customer written notice:
125
of the variation;
of the domestic customer's right to terminate the domestic supply contract;
and
of the effect of paragraph 7.
7. Where a domestic customer gives to the licensee a valid notice of
termination within 14 days of receiving notice under paragraph 6, the
licensee shall treat the variation as ineffective and shall neither enforce
nor take advantage of it.
126
Condition 45. Security Deposits
1. The licensee shall not, in respect of the supply of electricity to any
domestic customer, require a deposit:
(a) where the domestic customer is prepared to be supplied through a
prepayment meter and it is reasonably practicable in all the
circumstances (including in particular the risk of loss or damage) for
the licensee to provide such a meter; or
(b) where it is otherwise unreasonable in all the circumstances to do so.
2. Any deposit required of such a domestic customer may be 1 1/2 times the
value of the average quarterly consumption of electricity reasonably
expected at the relevant premises, or more if that is reasonable in all the
circumstances.
3. Where the licensee requires a deposit from such a domestic customer it
shall at the same time inform him of the effect of paragraphs 5 and 7.
4. Where the licensee holds any deposit for more than a month, it shall pay
the domestic customer simple interest on the deposit at a rate which is
from time to time equivalent to the base rate of Barclays Bank plc or, if
there is no such base rate, not less than such base rate as the Authority
may designate for the purposes thereof.
5. Subject to paragraph 6, any deposit given by a domestic customer shall be
repaid (with interest) by the licensee:
(a) within 14 days where, in the previous 12 months, the domestic customer
has paid all charges for electricity supplied within 28 days of each
written demand made; or
127
(b) as soon as reasonably practicable, and in any event within 1 month,
where the licensee has ceased to supply the customer and the customer
has paid all charges for electricity supplied.
6. Sub-paragraph 5(a) shall not apply where it is reasonable in all the
circumstances for the licensee to retain the deposit.
7. Any dispute arising under this condition between the licensee and a
domestic customer may be referred by either party to the Authority. The
Authority shall determine any such dispute, following such practice and
procedure as it considers appropriate.
128
Condition 46. Termination of Contracts on Notice
1. The licensee shall not enter into a domestic supply contract unless the
domestic supply contract contains a term allowing the customer to terminate
such domestic supply contract at any time by-
(a) giving to the licensee a valid notice of termination; and
(b) subject to paragraphs 6 and 7, paying to the licensee on demand a
termination fee.
2. A notice of termination is valid where it is given at least 28 days in
advance of the date on which it is to take effect and where, not later than
that date, the requirements of paragraph 3 and (unless the licensee
expressly agrees to waive it) paragraph 4 are satisfied.
3. The requirement of this paragraph is that either-
(a) another electricity supplier commences a supply of electricity to the
relevant premises; or
(b) the relevant premises are cut off because the domestic customer at
those premises has ceased to require a supply.
4. The requirement of this paragraph is that no charges for electricity
supplied to the customer (whether at the relevant premises or at any
premises previously occupied by him), having been demanded in writing prior
to the notice of termination being given, remain owing to the licensee more
than 28 days after that demand was made.
5. Each domestic supply contract shall provide that a notice of termination
which is not valid shall not be effective to terminate such domestic supply
contract.
129
6. A termination fee shall not be demanded of a domestic customer where:
(a) the domestic supply contract was terminated under any provision of
standard condition 47 (Termination of Contracts in Specified
Circumstances);
(b) the domestic supply contract was a domestic supply contract of
indefinite length and was terminated other than during a fixed term
period;
(c) the licensee notified the customer, under paragraph 6 of standard
condition 44 (Notification of Terms), of a unilateral variation of the
domestic supply contract and the customer gave notice of termination
in accordance with paragraph 7 of that standard condition; or
the domestic supply contract was a domestic supply contract to which
paragraph 3 of standard condition 47 (Termination of Contracts in Specified
Circumstances) applied and the licensee did not, before entering into it,
take all reasonable steps to draw the attention of the customer to the
effect of the terms set out at that paragraph.
7. Where a termination fee is payable, it shall be of an amount not greater
than that which the licensee may in all the circumstances reasonably
require.
130
Condition 47. Termination of Contracts in Specified Circumstances
1. The licensee shall not enter into a domestic supply contract unless the
domestic supply contract provides that it will terminate:
(a) on the date on which the domestic customer ceases to own or occupy the
relevant premises, having given the licensee at least 2 working days'
notice of that date; or
(b) where the domestic customer has ceased to own or occupy the premises
without giving the licensee such notice, on the first in time of:
(i) the second working day after the domestic customer has given
notice to the licensee;
(ii) the next date on which the meter is due to be read; and
(iii) the date on which electricity is supplied to the premises, by
the licensee or another electricity supplier, under a domestic
supply contract or deemed contract with a person other than the
domestic customer.
2. Each domestic supply contract shall provide that, where it is terminated by
virtue of a term included in the domestic supply contract in compliance
with paragraph 1, the domestic customer shall remain liable for any charges
for the supply of electricity until the date of termination.
3. Any domestic supply contract which -
(a) provides for the licensee to supply electricity for a specified period
of more than 12 months; or
131
(b) contains an initial fixed term period (as defined in standard
condition 31 (Interpretation of Section C)),
shall provide that it may be terminated immediately by the customer at any
time within 5 working days of the date of the domestic supply contract.
4. Where a domestic supply contract is for both the supply of electricity and
the provision of goods or services:
(a) any reference in standard conditions 46 (Termination of Contracts on
Notice) and 47 (Termination of Contracts in Specified Circumstances)
to its termination is a reference to its termination in respect of the
supply of electricity alone; and
(b) on its termination by virtue of any provision of standard conditions
46 (Termination of Contracts on Notice) and 47 (Termination of
Contracts in Specified Circumstances), the licensee may require the
domestic customer to give any reasonable security for his future
compliance with those aspects of such contract as relate to the
provision of goods and services.
5. Where a domestic customer terminates a domestic supply contract or ceases
to take a supply by way of a deemed contract with the licensee for the
supply of electricity, the licensee shall not:
(a) exercise any right to recover any meter owned by the licensee at, or
by reason of, the termination of such domestic supply contract or the
cessation of supply by way of a deemed contract, or
(b) authorise any of its officers to enter the domestic customer's
premises for the purpose of removing any such meter (whether under
paragraph 10 of Schedule 6 to the Act or otherwise),
132
in the event that another electricity supplier undertakes prior to the date
of such termination or cessation to make an arrangement with the licensee
on terms that the licensee receives such compensation (if any) as may be
appropriate having regard to the value of the meter.
6. Where a domestic customer terminates a domestic supply contract or ceases
to take a supply by way of a deemed contract with the licensee for the
supply of electricity, and the customer agrees with another electricity
supplier that the customer will have a new meter installed at the relevant
premises (to be provided by or on behalf of the other supplier), then the
licensee shall be obliged to remove any meter owned or provided by it from
the customer's premises if it receives a written request to do so from the
other supplier (the other supplier having obtained the customer's consent
to the removal). Removal will take place as soon as reasonably practicable
following service of the request, and in any event within 30 days of the
service of the request.
133
Condition 48. Marketing of Electricity to Domestic Customers
1. This condition applies to the marketing activities of the licensee in
respect of the supply or the proposed supply of electricity to domestic
premises.
2. The licensee shall:
(a) set up appropriate procedures for the selection of staff employed or
engaged in roles the principal duties of which involve oral
communication with domestic customers for the purposes of the
marketing activities of the licensee;
(b) take all reasonable steps to ensure that each such person is trained
so as to have a sufficient understanding of:
(i) the arrangements for competition in electricity supply in Great
Britain; and
(ii) the principal terms of domestic supply contracts made available
by the licensee;
such that any relevant advice given by him to domestic customers is
not misleading;
(c) take all reasonable steps to ensure that:
(i) a domestic customer may readily identify the licensee whenever
he is contacted by a representative of the licensee;
(ii) a domestic customer will readily understand that he has entered
into a domestic supply contract; and
(iii) any unsolicited contact made on behalf of the licensee with any
domestic customer takes place at a reasonable time; and
134
(d) take all reasonable steps to ensure that any agents and
sub-contractors of the licensee set up equivalent procedures and take
equivalent steps to those set out at sub-paragraphs (a), (b) and (c).
3. Paragraph 4 shall apply where a domestic supply contract has been entered
into by a domestic customer in the course of -
(a) a visit to that customer's premises by a representative of the
licensee;
(b) a conversation in a place to which the public have access between a
representative of the licensee and a domestic customer; or
(c) a telephone conversation between a domestic customer and a
representative of the licensee.
4. Where this paragraph applies, the licensee shall, through a representative
who is not engaged in activities leading to the entering into domestic
supply contracts between the licensee and domestic customers, and not less
than 24 hours nor more than 14 days after the date of the domestic supply
contract in question:
(a) use its reasonable endeavours to contact the domestic customer by
telephone or by letter seeking his confirmation that:
(i) he understands that he has entered into a domestic supply
contract;
(ii) he is content to have entered into that domestic supply
contract; and
(iii) he is content with the way in which the marketing activities of
the licensee were conducted;
(b) if in the course of such telephone contact, or within a reasonable
period of sending such a letter, the domestic customer indicates that
he is not content to have entered into the domestic supply contract
and wishes to terminate it, take all reasonable steps to ensure that
the domestic supply contract is terminated and,
135
where reasonably practicable, that the licensee does not commence a
supply to the customer; and
(c) if the response of the domestic customer, alone or when considered
with the responses of other customers, suggests weaknesses in the
methods, systems or personnel employed or engaged by the licensee or
its agents or sub-contractors for the purpose of its marketing
activities, ensure that all reasonable steps to remedy the matter are
taken.
5. Where, by virtue of any domestic supply contract, electricity is not to be
supplied to premises before the expiry of 60 days after the date of the
domestic supply contract, the licensee shall take reasonable steps during
the period after that date and prior to the commencement of supply to keep
the domestic customer informed that he has entered into a domestic supply
contract with the licensee.
6. The complaint handling procedures to be established by the licensee in
accordance with standard condition 39 (Complaint Handling Procedure) shall
provide in appropriate cases for the payment of compensation to domestic
customers adversely affected by the failure of the licensee to perform its
obligations under this condition.
7. The licensee shall keep a record of its compliance with its obligations
under this condition, including:
(a) the contacting of domestic customers in pursuance of sub-paragraph
4(a) and the response of customers to such contact;
(b) the termination of contracts in pursuance of sub-paragraph 4(b); and
(c) compensation paid in pursuance of paragraph 6.
8. Except as the Authority may determine for the purposes of this condition
generally, as soon as reasonably practicable after the end of each period
of three months ending on 31 March, 30 June, 30 September and 31 December
in every year, the licensee shall submit
136
to the Authority and to the Consumer Council a report dealing with the
matters specified in paragraph 7 in that period and shall:
(a) publish the report so submitted in such manner as will in the opinion
of the licensee secure adequate publicity for it; and
(b) send a copy of it free of charge to any person requesting one,
except that, in performing its obligations under sub-paragraphs (a) and
(b), the licensee shall exclude from the report such information as appears
to it to be necessary or expedient to ensure that, save where they consent,
individual customers referred to therein cannot readily be identified.
9. Reports in pursuance of paragraph 8 shall be presented by the licensee, in
so far as is reasonably practicable, in a standard format submitted to and
approved by the Authority for the purposes of this condition.
10. Except as the Authority may approve-
(a) for the purpose of protecting the interests of any domestic customer
who, prior to 21 July 1998, may have made a payment in advance with a
view to arranging a supply of electricity; or
(b) where any payment in advance is wholly or mainly for services other
than arranging the supply of energy,
the licensee shall not enter into any commercial relations connected with
the supply of electricity to domestic premises with any person who has
sought, after 21 July 1998, payment in advance (other than one governed by
standard condition 45 (Security Deposits)) from any domestic customer with
a view to arranging a supply of electricity, and the licensee shall not
enter into a domestic supply contract for the supply of electricity to any
such customer made through the agency (either for the licensee or for any
customer) of such a person.
137
11. The licensee shall take all reasonable steps:
(a) to establish management arrangements that facilitate the licensee in
meeting its obligations under paragraphs 2 to 9 of this condition; and
(b) to ensure that any agents and sub-contractors of the licensee take
steps equivalent to those arrangements.
12. This condition shall cease to have effect on a date (the "termination
date") which shall be 31 March 2002, provided that:
(a) if the Authority, after consultation with the licensee and all other
licensed electricity suppliers in whose supply licence the standard
conditions in Section C have effect, the Consumer Council and such
other persons or bodies as in the opinion of the Authority are
representative of those likely to be affected, gives notice for the
purposes of this condition generally:
(i) by publishing the notice in such a manner as the Authority
considers appropriate for the purpose of bringing it to the
attention of persons likely to be affected by it; and
(ii) by sending a copy of the notice to all such licensed suppliers,
to the Secretary of State and to the Consumer Council,
that the Authority considers that the development of competition in
electricity supply is such as to require the continuation of any part
of this condition until such date - not later than two years from the
termination date - as may be specified in the notice (the "new
termination date"), then such part of this condition as may be
specified in the notice shall continue to apply as if for the
termination date there were substituted the new termination date; and
(b) notice under sub-paragraph (a) may be given on more than one occasion.
138
13. In this condition:
"marketing activities" means any activities of the
licensee directed at or incidental to the
identification of and communication with
domestic customers supplied or to be supplied
with electricity by the licensee, and includes
entering into domestic supply contracts with
such customers.
"representative" in relation to the licensee, means any person
directly or indirectly authorised to represent
the licensee in its dealings with customers.
139
Condition 49. Assignment of Outstanding Charges
1. This condition shall apply where:
(a) the licensee has commenced the supply of electricity to domestic
premises at which a supply was previously given to its customer by the
previous supplier;
(b) the customer has failed to pay, within 28 days of receiving a demand
in writing, any charges due from him to the previous supplier for the
supply of electricity at those premises;
(c) that failure occurred after either the previous supplier was informed
of the change of supplier or the licensee commenced supply to the
premises (whichever is the earlier);
(d) the previous supplier has given written notice to the customer that it
proposes to assign the debt to the licensee, which may be entitled to
reclaim from him its costs in recovering the debt; and
(e) the licensee has received from the previous supplier a notice in
accordance with paragraph 2.
2. A notice in accordance with this paragraph is one which:
(a) is given at least 14 days after the notice referred to at
sub-paragraph 1(d) and is received by the licensee within 90 days of
it commencing a supply to the premises;
(b) specifies the amount of the debt which remains unpaid;
(c) states that the previous supplier has used all reasonable endeavours
to recover the debt, which remains unpaid at least 42 days after being
demanded in writing; and
140
(d) states that the previous supplier intends to assign to the licensee
the debt, up to a maximum sum of one-third of the value (calculated in
accordance with the charges of the previous supplier to the customer
immediately before it ceased to supply him) of the average annual
consumption reasonably expected of the customer.
3. Where this condition applies the licensee shall, within 60 days of
receiving a notice under paragraph 2 and in consideration of the assignment
of the debt, pay to the previous supplier the sum specified under
sub-paragraph 2(d) (less, where they cannot be reclaimed from the customer,
its reasonable costs of recovering that debt).
4. For the purposes of this condition, a customer shall not be regarded as
being in debt to the previous supplier to the extent to which that debt is
genuinely in dispute.
5. In this condition:
"previous supplier" means, in relation to any domestic premises,
the electricity supplier which supplied
electricity to those premises immediately
prior to the commencement of supply by the
licensee.
141
Condition 50. Modification of Provisions under Standard Conditions 46
(Termination of Contracts on Notice) and 49 (Assignment of Outstanding Charges)
1. In this condition, the "relevant provisions" are the provisions of
paragraph 4 of standard condition 46 (Termination of Contracts on Notice)
and standard condition 49 (Assignment of Outstanding Charges) of this
licence (or any of them).
2. Where the Authority considers (having regard to any representations made to
it) that in any specified class of cases the relevant provisions do not
fulfil the requirements of paragraph 4, it may direct that they shall cease
to have effect in that class of cases.
3. Where a direction under paragraph 2 has been made and the Authority
considers (having regard to any representations made to it) that in the
specified class of cases the relevant provisions would fulfil the
requirements of paragraph 4, it may direct that they shall again have
effect in those cases.
4. The requirements of this paragraph are that, in the specified class of
cases, the operation of the relevant provisions:
(a) significantly reduces the number of unrecovered debts otherwise to be
expected; or
(b) involves expenditure in debt recovery which is less than the reduction
in the value of unrecovered debts which it achieves.
5. Any direction under paragraphs 2 or 3 shall be made by a notice given to
the relevant parties which shall specify:
(a) the relevant provisions to which it applies;
(b) the class of cases to which it applies; and
142
(c) the date on which it shall have effect (being, in a direction under
paragraph 3, at least 3 months after the notice is given).
6. In this condition:
"relevant parties" means the licensee, all other electricity
suppliers, the Consumer Council and such
other persons or bodies as in the opinion of
the Authority are representative of those
likely to be affected by a revision to the
relevant provisions.
143
SECTION D. SUPPLY SERVICES OBLIGATIONS
Condition 51. Interpretation of Section D
1. In this Section of the standard conditions unless the context otherwise
requires:
"exempt supplier" means a supplier authorised to supply
electricity by means of an exemption order
granted under the Act.
"exempt supply services" means the services detailed at paragraph 2
of standard condition 53B (Requirements to
Offer Terms for Top-up and Standby, Exempt
Supply Services and Prepayment Meter
Services), as provided by the licensee to
exempt suppliers in respect of premises
within the supply services area.
"standby" means the periodic or intermittent supply or
sale of electricity:
(a) to an authorised electricity operator to
make good any shortfall in the
availability of electricity to that
operator for the purposes of its supply
of electricity to persons seeking such
supply; or
(b) to a customer of the licensee to make
good any shortfall between the
customer's total supply requirements and
that met either by its own generation or
by electricity supplied by an
electricity supplier other
144
than the licensee.
"top-up" means the supply or sale of electricity on a
continuing or regular basis:
(a) to an authorised electricity operator to
make good any shortfall in the
availability of electricity to that
operator for the purposes of its supply
of electricity to persons seeking such
supply; or
(b) to a customer of the licensee to make
good any shortfall between the
customer's total supply requirements and
that met either by its own generation or
by electricity supplied by an
electricity supplier other than the
licensee.
145
Condition 52. Regulatory Accounts
1. The following paragraphs of this condition apply for the purpose of
ensuring that the licensee (and any affiliate or related undertaking)
maintains accounting and reporting arrangements which enable regulatory
accounts to be prepared for each separate business and showing the
financial affairs of each such separate business.
2. Unless the Authority otherwise consents (such consent may be given in
relation to some or all of the obligations in this condition and may be
subject to such conditions as the Authority considers appropriate), the
licensee shall in respect of each separate business:
(a) keep or cause to be kept for the period referred to in section
222(5)(b) of the Companies Xxx 0000 and in the manner referred to in
that section such accounting records in respect of each separate
business as would by section 221 of the Companies Xxx 0000 be required
to be kept in respect of each such business if it were carried on by a
separate company, so that the revenues, costs, assets, liabilities,
reserves and provisions of, or reasonably attributable to, each
separate business are separately identifiable in the accounting
records of the licensee (and any affiliate or related undertaking)
from those of any other business of the licensee;
(b) prepare on a consistent basis from such accounting records in respect
of:
(i) each financial year, accounting statements comprising a profit
and loss account, a statement of total recognised gains and
losses, a balance sheet, and a cash flow statement, together with
notes thereto, and showing separately in respect of each separate
business and in appropriate detail the amounts of any revenue,
cost, asset, liability, reserve or provision which has been
either:
(aa) charged from or to any other business (whether or not a
separate business) together with a description of the basis
of that charge; or
146
(bb) determined by apportionment or allocation between any
separate business and any other business (whether or not a
separate business) together with a description of the basis
of the apportionment or allocation; and
(ii) the first six months of each financial year, an interim profit
and loss account; and
(iii) each financial year, sufficient accounting information in
respect of each separate business to allow the preparation of
consolidated accounting statements for each separate business of
the licensee or, where applicable, the ultimate holding company
of the licensee. Such information shall include a profit and
loss account, a statement of total recognised gains and losses,
a balance sheet, and a cash flow statement together with notes
thereto;
(c) procure, in respect of the accounting statements prepared in
accordance with this condition in respect of each financial year, a
report by the auditors and addressed to the Authority stating whether
in their opinion those statements have been properly prepared in
accordance with this condition and give a true and fair view of the
revenues, costs, assets, liabilities, reserves and provisions of, or
reasonably attributable to, the separate business to which the
statements relate; and
(d) deliver to the Authority a copy of the account referred to in
sub-paragraph (b)(ii), the auditors' report referred to in
sub-paragraph (c), the accounting statements referred to in
sub-paragraph (b)(i) and the accounting information referred to in
sub-paragraph (b)(iii), as soon as reasonably practicable, and in any
event not later than three months after the end of the period to which
it relates in the case of the account referred to in sub-paragraph
(b)(ii) and six months after the end of the financial year to which
they relate in the case of the accounting statements, auditors' report
and accounting information referred to in sub-paragraphs (b)(i),
(b)(iii) and (c);
147
provided always that the obligations set out in this paragraph 2 shall not
apply where they have already been discharged by the licensee in respect of
each separate business pursuant to any other licence.
3. Unless the Authority so specifies in directions issued for the purposes of
this condition, or with the Authority's prior written approval, the
licensee shall not in relation to the accounting statements in respect of a
financial year change the bases of charge or apportionment or allocation
referred to in sub-paragraph 2(b)(i) from those applied in respect of the
previous financial year.
4. Where, in relation to the accounting statements in respect of a financial
year, the licensee has changed such bases of charge or apportionment or
allocation from those adopted for the immediately preceding financial year,
the licensee shall, if so directed in directions issued by the Authority,
in addition to preparing accounting statements on those bases which it has
adopted, prepare such accounting statements on the bases which applied in
respect of the immediately preceding financial year.
5. Accounting statements and information in respect of a financial year
prepared under sub-paragraphs 2(b)(i) and 2(b)(iii) shall, so far as
reasonably practicable and unless otherwise approved by the Authority
having regard to the purposes of this condition:
(a) have the same content and format (in relation to each separate
business) as the statutory accounts of the licensee prepared under
section 226 and, where appropriate, section 227 of the Companies Xxx
0000 and conform to the best commercial accounting practices including
all relevant accounting standards issued or adopted by the Accounting
Standards Board currently in force;
(b) state the accounting policies adopted; and
(c) with the exception of the part of such statements and information
which shows separately the amounts charged, apportioned or allocated
and describes the bases of charge or apportionment or allocation
respectively and with the exception of the accounting statements
relating to the out-of-area supply business, be published with the
statutory accounts of the licensee.
148
6. Unless the accounting statements and information prepared under
sub-paragraph 2(b)(i) and 2(b)(iii) are prepared on the current cost basis
as provided by the alternative accounting rules, the licensee shall, unless
otherwise agreed by the Authority, in addition to preparing those
accounting statements under that paragraph, prepare accounting statements
for each separate business covering the same period, which shall comprise
and show separately:
(a) a profit and loss account, a statement of total recognised gains and
losses, a balance sheet, and a cash flow statement, together with
notes thereto, which shall:
(i) include in respect of current cost assets amounts determined on
the current cost basis as provided by the alternative accounting
rules; and
(ii) show or disclose the information and other matters required by
the alternative accounting rules to be shown or disclosed in
accounts where the amounts included in respect of assets covered
by any items shown in those accounts have been determined on any
basis mentioned in paragraph 31 of section C of Part II of
Schedule 4 to the Companies Xxx 0000;
(b) in respect of each separate business the adjusted amount of any such
provision for depreciation as is referred to in paragraph 32(2) of
section C of Part II of Schedule 4 to the Companies Xxx 0000 and the
items shown in the profit and loss account of the separate business
for the relevant period which are affected by the determination of
amounts on the current cost basis as provided by the alternative
accounting rules, including the profit (or loss) before taxation; and
(c) such other current cost information as is referred to in the handbook
as the Authority may reasonably require;
and shall deliver the same, together with an auditors' report prepared in
relation to the current cost basis accounting statements in the form
referred to in sub-paragraph 2(c), to the Authority within the time limit
referred to in sub-paragraph 2(d), and shall (with the exception of the
part of such statements and information which shows separately the amounts
charged, apportioned or allocated and describes the bases of charge or
apportionment or allocation respectively and with the exception of the
accounting
149
statements relating to the out-of-area supply business) publish the same
with the statutory accounts of the licensee.
7. References in this condition to costs or liabilities of, or reasonably
attributable to, any separate business shall be construed as excluding
taxation and capital liabilities which do not relate principally to a
particular separate business, and interest thereon; and references to any
profit and loss account shall be construed accordingly.
8. Without prejudice to paragraph 5 of the terms of this licence, references
in this condition to sections of the Companies Xxx 0000 are references to
those provisions as amended, substituted or inserted by the relevant
provisions of the Companies Xxx 0000 and if such provisions of the
Companies Xxx 0000 are not in force at the date of the grant of this
licence shall be construed as if such provisions were in force at such
date.
9. For the purposes of paragraph 6:
"alternative accounting rules" means the rules set out in
section C of Part II of Schedule 4
to the Companies Xxx 0000.
"current cost assets" means assets of any description
mentioned in paragraph 31 of
section C of Part II of Schedule 4
to the Companies Xxx 0000.
"the handbook" means the handbook issued by the
Accounting Standards Committee of
the Consultative Committee of
Accounting Bodies (CCAB Limited) or
any successor body entitled
"Accounting for the effects of
changing prices: a Handbook" in its
current edition for the time being
or in the event that no such
handbook shall be in issue such
guidance or publication
150
as may be issued in replacement or
substitution therefor.
"in-area supply business" means in respect of each supply
services area the business of the
licensee comprising or ancillary to
the supply of electricity to
premises which are within the
supply services area.
"out-of-area supply business" means in respect of each supply
services area the business of the
licensee comprising or ancillary to
the supply of electricity to
premises which are outside the
supply services area.
10. For the purposes of this condition:
"regulatory accounts" means the accounts required to be
prepared by the licensee pursuant
to this condition.
151
Condition 52A. Change of Financial Year
1. The definition of "financial year" in standard condition 1 (Definitions and
Interpretation) shall, for the purpose only of the statutory accounts of
the licensee, cease to apply to the licensee from the date the licensee
sends a notice to the Authority for that purpose.
2. Such notice:
(a) shall specify the date from which, for the purpose set out at
paragraph 1, the current and subsequent financial years of the
licensee shall run; and
(b) shall continue in effect until revoked by the licensee issuing a
further notice.
3. While the notice continues in effect the licensee shall procure the
preparation of and shall deliver to the Authority audited group accounts
for its group of companies for each financial year.
4. Audited group accounts produced in accordance with paragraph 3:
(a) shall comprise consolidated group accounts in respect of the group of
companies;
(b) shall, save insofar as is necessary to reflect a different financial
year, have the same form and content as the statutory accounts of the
licensee;
(c) shall be accompanied by a report by the auditors and addressed to the
Authority stating whether in their opinion the audited group accounts
have been properly prepared in accordance with this condition and give
a true and fair view of the state of affairs of the group of companies
and of its profits or losses, total recognised gains or losses and
cash flows during the financial year;
(d) may, with the prior written consent of the Authority, omit or provide
in a different form, specified in the consent, such information as may
be specified in the consent; and
152
(e) shall clearly disclose any differences between the accounting policies
underlying the preparation of the statutory accounts of the licensee
and the accounting policies underlying the preparation of the audited
group accounts.
5. The licensee may, for the purpose only of its statutory accounts, change
its financial year from that previously notified by sending to the
Authority a new notice pursuant to paragraph 1. Where the licensee sends
the Authority a new notice the previous notice shall be revoked, as
provided by sub-paragraph 2(b). The licensee's financial year-end will
change with effect from the date specified in the new notice. The new
notice shall specify the licensee's new financial year-end.
6. No provisions of this condition shall apply to the financial year of the
licensee as defined in standard condition 1 (Definitions and
Interpretation) for the purpose of accounts produced in compliance with
standard condition 52 (Regulatory Accounts). No provisions of this
condition shall affect the licensee's obligations in respect of payment of
licence fees under standard condition 4 (Payments by the Licensee to the
Authority).
153
Condition 53. Basis of Charges for Top-up and Standby, Exempt Supply Services
and Prepayment Meter Services: Requirements for Transparency
1. The licensee shall as soon as practicable prepare statements in a form
approved by the Authority setting out the basis upon which charges will be
made for the provision of:
(a) top-up and standby ; and
(b) exempt supply services
in each case in such form and with such detail as shall be necessary to
enable any person to make a reasonable estimate of the charges to which he
would become liable for the provision of such services, and (without
prejudice to the foregoing) including the information set out in paragraphs
3 and 4 respectively.
2. The licensee shall as soon as practicable prepare a statement in a form
approved by the Authority setting out the basis upon which charges will be
made for the provision of prepayment meter services, which statement shall
be in such form and with such detail as shall be necessary to enable any
person to make a reasonable estimate of the charges to which he would
become liable for the provision of such services and of the other terms,
likely to have a material impact on the conduct of his business, upon which
the services would be provided and (without prejudice to the foregoing)
including the information set out in paragraph 5.
3. The statement referred to at sub-paragraph 1(a) shall set out the methods
by which and the principles on which the charges for the provision of each
of top-up supplies or sales and standby supplies or sales will be made.
4. The statement referred to at sub-paragraph 1(b) shall set out the methods
by which and the principles on which charges for the provision of such
services will be made.
154
5. The statement referred to at paragraph 2 shall include a schedule of
charges for prepayment meter services, together with an explanation of the
methods by which and the principles on which such charges will be
calculated.
6. The basis on which charges for the provision of top-up and standby shall be
set shall reflect the costs directly incurred in the provision thereof,
together with a reasonable rate of return on the capital represented by
such costs.
7. The basis on which charges for the provision of exempt supply services
shall be set shall reflect the costs directly incurred in the provision
thereof, together with a reasonable rate of return on the capital
represented by such costs.
8. The Authority may, upon the written request of the licensee, issue a
direction relieving the licensee of its obligations under paragraph 2 to
such extent and subject to such terms and conditions as it may specify in
that direction.
9. The licensee shall not in setting its charges for or in setting the other
terms that will apply to the provision of prepayment meter services
restrict, distort or prevent competition in the generation, distribution or
supply of electricity or in the provision of meters and other metering
equipment, meter maintenance services, data retrieval, data processing or
data aggregation services.
10. The licensee:
(a) shall, at least once in every year, review the information set out in
the statements prepared in accordance with paragraphs 1 and 2 in order
that the information set out in such statements shall continue to be
accurate in all material respects; and
(b) may, with the approval of the Authority, from time to time alter the
form of such statements.
11. The licensee shall send a copy of the statements prepared in accordance
with paragraphs 1 and 2, and of each revision of such statements, to the
Authority.
155
12. The licensee shall give or send a copy of the statements prepared in
accordance with paragraphs 1 and 2, or (as the case may be) of the latest
revision of such statements, to any person who requests a copy of such
statement or statements.
13. The licensee may make a charge for any statement given or sent pursuant to
paragraph 12 of an amount which shall not exceed the amount specified in
directions issued by the Authority for the purposes of this condition based
on the Authority's estimate of the licensee's reasonable costs of providing
such a statement.
156
Condition 53A. Non-discrimination in the Provision of Top-up or Standby, Exempt
Supply Services and Prepayment Meter Services
1. In the provision of top-up or standby the licensee shall not discriminate
between any persons or class or classes of person.
2. In the provision of exempt supply services the licensee shall not
discriminate between any exempt suppliers or class or classes thereof.
3. In the provision of prepayment meter services the licensee shall not
discriminate between any persons or class or classes of person.
4. Without prejudice to paragraphs 1, 2 and 3, and subject to the provisions
of standard condition 53 (Basis of Charges for Top-up and Standby, Exempt
Supply Services and Prepayment Meter Services: Requirements for
Transparency), the licensee shall not:
(a) make charges for the provision of top-up or standby to any person or
class or classes of person which differ from the charges for such
provision to any other person or class or classes of person;
(b) make charges for the provision of exempt supply services to any exempt
supplier or class or classes thereof which differ from the charges for
such provision to any other exempt supplier or class or classes
thereof; or
(c) make charges for the provision of prepayment meter services to any
person or class or classes of person which differ from the charges for
such provision to any other person or class or classes of person,
except in so far as such differences reasonably reflect differences in the
costs associated with such provision.
5. The licensee shall not in setting its charges for the provision of top-up
or standby, exempt supply services, or prepayment meter services restrict,
distort or prevent competition in the generation, distribution or supply of
electricity.
157
Condition 53B. Requirement to Offer Terms for Top-up and Standby, Exempt Supply
Services and Prepayment Meter Services
1. On application made by any person the licensee shall (subject to
sub-paragraphs 6(a) and (b)) offer to enter into an agreement to provide
top-up or standby.
2. On application made by any exempt supplier the licensee shall (subject to
paragraph 6) offer to enter into an agreement for exempt supply services
within the supply services area and such offer shall make detailed
provision regarding:
(a) the making, maintenance and termination by the licensee of
registrations under and in accordance with the Master Registration
Agreement in relation to premises to which the exempt supplier
supplies or is required to supply electricity;
(b) the exchange between the licensee and exempt supplier of such
information as is required for the performance of the licensee's
obligations in accordance with sub-paragraph (a);
(c) the appointment by the exempt supplier of an appropriate provider of
meters and metering equipment, meter maintenance services, and
provision of data retrieval, data processing and data aggregation
services in relation to premises to which it supplies electricity;
(d) the apportionment and settlement by the licensee of charges incurred
by it by virtue of registrations under the Master Registration
Agreement which are made, maintained and terminated in accordance with
sub-paragraph (a);
(e) the reimbursement by the exempt supplier (by way of indemnity) of all
charges incurred by the licensee by virtue of registrations made and
maintained in accordance with sub-paragraph (a);
(f) the provision by the exempt supplier to the licensee of reasonable
security or collateral for the performance of its obligations under
the agreement; and
158
(g) the varying of the agreement, including the making of amendments
necessary to give effect to any determination made by the Authority in
respect of the agreement.
3. On application made by any electricity supplier the licensee shall (subject
to sub-paragraph 6(a)) offer to enter into an agreement for the provision
within the supply services area of access to a system which supports the
supply of electricity to domestic customers with prepayment meters
("prepayment meter services"), such system providing as may be reasonably
appropriate for prepayment meters which require tokens, cards or keys for
their operation and comprising facilities for:
(a) (where requested) the purchase by electricity suppliers and/or
encoding with data of tokens, cards or keys;
(b) the use by domestic customers of local outlets for the purchase of
tokens and the crediting with value of cards or keys;
(c) the making of payments to electricity suppliers in respect of sums
received by the licensee on behalf of domestic customers; and
(d) where relevant, the transfer of domestic customer data to electricity
suppliers.
4. In making an offer to enter into any agreement specified in paragraphs 1 to
3, the licensee shall set out:
(a) the date by which the services required shall be provided (time being
of the essence unless otherwise agreed between parties);
(b) the charges to be paid in respect of the services required, such
charges (unless manifestly inappropriate):
(i) to be presented in such a way as to be referable to the
statements prepared in accordance with paragraphs 1 and 2 of
standard condition 53 (Basis of Charges for Top-up and Standby,
Exempt Supply Services and
159
Prepayment Meter Services: Requirements for Transparency) or
any revision thereof; and
(ii) to be set in conformity with the requirements of standard
condition 53 (Basis of Charges for Top-up and Standby, Exempt
Supply Services and Prepayment Meter Services: Requirements for
Transparency); and
(c) such other detailed terms in respect of each of the services required
as are or may be appropriate for the purpose of the agreement.
5. The licensee shall offer terms for agreements in accordance with paragraphs
1 to 3 as soon as practicable and (save where the Authority consents to a
longer period) in any event not more than 28 days after receipt by the
licensee (or its agent) from any person of an application containing such
information as the licensee may reasonably require for the purpose of
formulating the terms of the offer.
6. The licensee shall not be obliged pursuant to this condition to offer to
enter or to enter into any agreement:
(a) under paragraphs 1 to 3, if to do so would be likely to involve the
licensee being:
(i) in breach of its duties under section 9 of the Act;
(ii) in breach of any regulations made under section 29 of the Act;
(iii) in breach of any Grid Code or Distribution Code; or
(iv) in breach of the conditions;
(b) under paragraph 1 or 2, if the person making the application does not
undertake to be bound, in so far as applicable, by the terms of the
applicable Distribution Code or the applicable Grid Code from time to
time in force;
160
(c) under paragraph 2, if the person making the application ceases to be
an exempt supplier.
7. The licensee shall undertake the provision of prepayment meter services in
the most efficient and economic manner practicable having regard to the
alternatives available and the other requirements of this licence and of
the Act in so far as they relate to the provision of those services.
161
Condition 53C. Functions of the Authority
1. If, after a period which appears to the Authority to be reasonable for the
purpose, the licensee has failed to enter into an agreement with any person
entitled or claiming to be entitled thereto pursuant to a request under
standard condition 53B (Requirement to Offer Terms for Top-up and Standby,
Exempt Supply Services and Prepayment Meter Services), the Authority may,
on the application of such person or the licensee, settle any terms of the
agreement in dispute between the licensee and that person in such manner as
appears to the Authority to be reasonable having (in so far as relevant)
regard in particular to the following considerations:
(a) that such person should pay to the licensee:
(i) in the case of the provision of top-up or standby, such sum
as is determined in accordance with paragraph 6 of standard
condition 53 (Basis Charges for Top-up and Standby, Exempt
Supply Services and Prepayment Meter Services: Requirements
for Transparency);
(ii) in the case of exempt supply services, such sum as is
determined in accordance with paragraph 7 of standard condition
53 (Basis of Charges for Top-up and Standby, Exempt Supply
Services and Prepayment Meter Services: Requirements for
Transparency); and
(iii) in the case of prepayment meter services, the whole or the
appropriate proportion of such sum as is determined in
accordance with paragraph 9 of standard condition 53 (Basis
of Charges for Top-up and Standby, Exempt Supply Services and
Prepayment Meter Services: Requirements for Transparency);
(b) that the performance by the licensee of its obligations under the
agreement should not cause it to be in breach of those provisions
referred to at sub-paragraph 6(a) of standard condition 53B
(Requirement to Offer Terms for Top-up and Standby, Exempt Supply
Services and Prepayment Meter Services);
162
(c) that the terms and conditions of the agreement so settled by the
Authority and of any other agreements entered into by the licensee
pursuant to a request under standard condition 53B (Requirement to
Offer Terms for Top-up and Standby, Exempt Supply Services and
Prepayment Meter Services) should be, so far as circumstances allow,
in as similar a form as is practicable; and
(d) in the case of exempt supply services, that the agreement for the
provision of exempt supply services should make provision for all the
matters set out at paragraph 2 of standard condition 53B (Requirement
to Offer Terms for Top-up and Standby, Exempt Supply Services and
Prepayment Meter Services).
2. In so far as any person entitled or claiming to be entitled to an offer
under standard condition 53B (Requirement to Offer Terms for Top-up and
Standby, Exempt Supply Services and Prepayment Meter Services) wishes to
proceed on the basis an agreement as settled by the Authority pursuant to
paragraph 1, the licensee shall forthwith enter into and implement such
agreement in accordance with its terms.
3. If either party to such agreement proposes to vary the contractual terms of
any agreement entered into pursuant to standard condition 53B (Requirement
to Offer Terms for Top-up and Standby, Exempt Supply Services and
Prepayment Meter Services) or this condition in any manner provided for
under such agreement, the Authority may, at the request of that party,
settle any dispute relating to such variation in such manner as appears to
the Authority to be reasonable.
4. The Authority may (following consultation with the licensee) issue
directions relieving the licensee of its obligations under standard
condition 53B (Requirement to Offer Terms for Top-up and Standby, Exempt
Supply Services and Prepayment Meter Services) relating to prepayment meter
services in respect of such parts of that standard condition and to such
extent as may be specified in the directions.
163
Condition 54. Duration of Standard Condition 53B (Requirement to Offer Terms for
Top-up and Standby, Exempt Supply Services and Prepayment Meter Services)
1. Standard condition 53B (Requirement to Offer Terms for Top-up and Standby,
Exempt Supply Services and Prepayment Meter Services) shall cease to have
effect (in whole or in part, as the case may be) in accordance with this
condition.
2. Subject to paragraph 3, the licensee may make a request to the Authority
that standard condition 53B (Requirement to Offer Terms for Top-up and
Standby, Exempt Supply Services and Prepayment Meter Services) shall cease
to have effect (in whole or in part, as the case may be) (in this condition
a "disapplication request") at any time.
3. No disapplication request may be made in relation to standard condition 53B
(Requirement to Offer Terms for Top-up and Standby, Exempt Supply Services
and Prepayment Meter Services) paragraphs 3 and 7 and such parts of
paragraphs 4, 5 and 6 as relate to pre-payment meter services prior to the
date which is 12 months after the date of the coming into force of this
condition.
4. A disapplication request shall be in writing addressed to the Authority,
shall specify the paragraphs of standard condition 53B (Requirement to
Offer Terms for Top-up and Standby, Exempt Supply Services and Prepayment
Meter Services) (or such part or parts thereof) to which the request
relates and shall state the date (in this condition "the disapplication
date", being a date not less than 12 months (18 months in respect of a
disapplication request concerning Prepayment Meters Services) after the
date of delivery of the request) from which the licensee wishes the
Authority to agree that the specified paragraphs (or such specified part or
parts thereof) shall cease to have effect.
5. A disapplication request shall not take effect if the Authority so
determines within 12 months (18 months in respect of a disapplication
request concerning Prepayment Meters Services) of the disapplication
request.
6. A disapplication request shall take effect, if the Authority consents in
writing to that disapplication request within 12 months (18 months in
respect of a disapplication request concerning Prepayment Meters Services)
of the disapplication request, from the disapplication date or such other
date specified by the Authority in the consent.
164
7. Save where the Authority otherwise agrees, no further disapplication
request may be served earlier than 12 months after any previous
disapplication request by the licensee.
Department of Trade and Industry
September 2001
165
SPECIAL CONDITIONS AND SCHEDULES
PART IV. SPECIAL CONDITIONS
Special Condition A: Interpretation and Application
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. Any reference in these Special Conditions to
(a) a provision thereof;
(b) a provision of the standard conditions;
(c) a provision of the standard conditions of electricity generation
licences;
(d) a provision of the standard conditions of electricity distribution
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.
3. The Special Conditions and Schedules listed in Table 1 below apply only to
the Manweb supply services area (as defined in paragraph 7 of the Terms to
this licence) and the Special Conditions and Schedules listed in Table 2
apply only to the ScottishPower supply services area (as defined in
paragraph 7 of the Terms to this licence).
Table 1 - Special Conditions and Schedule in relation to the Manweb supply
services area
Special Condition B (Definitions)
Special Condition C (Restraint on Supply Charges in England & Wales)
Special Condition D (Information to be provided to the Authority in connection
with the charge restriction conditions)
Special Condition E (Allowances in respect of Security costs)
Special Condition F (Duration of charge restriction conditions)
166
Schedule A: Supplementary provisions of the charge restriction conditions
Special Condition L: Restriction on self-supply
167
Table 2 - Special Conditions and Schedule in relation to the ScottishPower
supply services area
Special Condition G (Definitions)
Special Condition H (Restraints on supply charges in Scotland)
Special Condition I (Information to be provided to the Authority in connection
with the charge restriction conditions)
Special Condition J (Allowances in respect of Security costs)
Special Condition K (Duration of charge restriction conditions)
Schedule B: Supplementary provisions of the charge restriction conditions
168
Special Condition B: Definitions
1. This Condition and Special Conditions C to F and Schedule A shall apply
only to the Manweb supply services area (such area is referred to in these
Special Conditions as the "Manweb area").
2. In this Condition, in Special Condition C to F and in Schedule A:
"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 attributed in
accordance with the principles set out in
Part A of Schedule A and attribute,
attributed, attributable and attribution
shall be construed accordingly."
"charge restriction means Special Conditions B 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 costs" means the licensee's purchase costs of
electricity calculated in accordance with the
principles in the Public Electricity Supply
Licence previously granted to Manweb 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
169
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 supply services area of the
licensee).
"relevant supply services means the Manweb area listed in column 1 of
area" annexes A to F of Special Condition C
(Restraints on Supply Charges in England and
Wales).
"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 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 1 April 1989; and
similar expression shall be construed
accordingly.
"supply" means supply in the Manweb 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
170
excluded services by the licensee.
"supply revenue" means the revenue (measured on an accruals
basis) derived by the licensee from supply
charges after deduction of value added tax
(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.
171
Special Condition C: Restraints on Supply Charges in England and Wales
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 (Allowances 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 (Allowances 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 (Allowances 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
172
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+l' 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
173
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):
(a) ((B\\SDt\\ + D\\SDt\\ + T\\SDt\\) x 1.015) x (1 + (F\\t\\/100))
(b) WP\\SDt-1\\ x ((1 + (F\\t\\/100))/(1 + (F\\d\\/100)))
Where:
WP\\SDt\\ is set equal to (W\\SD\\ x P\\SDt\\) + ((x-X\\SD\\) x
PPP\\SDt\\)
W\\SD\\ means the weighting factor given against the relevant
supply services area in Column 2 of Annexe D to this
Condition
P\\SDt\\ 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 +
(Bl\\SD\\ x Primary Unit rate) + ((3300-B1\\SD\\) x
Secondary Unit rate))/3300
B1\\SD\\ has the value given against the relevant supply
services area in Column 2 of Annexe E to this Condition
PPP\\SDt\\ 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:
174
(Annual Standing Charge + (Bl\\SD\\ x Primary unit
rate) + ((3300-B1\\SD\\) x Secondary unit rate)) / 3300
B\\SDt\\ means the base allowance, subject to paragraph 16, (in
respect of generation, supply and transmission services
use of system) given against the relevant supply
services area in Column 2 of Annexe B to this Condition
D\\SDt\\ 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:
(D\\1SDt\\+ (3300 x D\\2SDt\\) + D\\3SDt\\) / 3300
D\\1SDt\\ is the distribution use of system charge annual
standing charge for supplying that customer
D\\2SDt\\ is the distribution use of system charge in respect of
each unit consumed by that customer
D\\3SDt\\ is the aggregate of all other relevant distribution
charges for supplying that customer
T\\SDt\\ 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
175
T\\SDt\\ 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 xxxxx 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
shown against the relevant supply
services area in column 2 of Annexe C to
this Condition
WP\\SDt-1\\ is set equal to
(W\\SD\\ x P\\SDt-1\\) + ((1-W\\SD\\)
x PPP\\SDt-1\\)
P\\SDt-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 + (B1\\SD\\ x
Primary unit rate) + ((3300-B1\\SD\\) x
Secondary Unit Rate))/3300
PPP\\SDt-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
176
of the tenth relevant year, and after
taking account of any Prompt Payment
Discount available under that charge:
(Annual Standing Charge + (B1\\SDt\\ x
Primary unit rate) + ((3300-B1\\SD\\) 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:
((B\\SDt+1\\ + D\\SDt+1\\ + T\\SDt+1\\) x 1.015) x (1 + (F\\t+1\\/100))
Where:
WP\\SDt+1\\ is set equal to
(W\\SD\\ x P\\SDt+1\\) + ((1-W\\SD\\) x PPP\\SDt+1\\)
W\\SD\\ means the weighting factor given against the relevant
supply services area in Column 2 of Annexe D to this
Condition
PS\\Dt+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 without taking account of
any Prompt Payment Discount available under that
charge:
(Annual Standing Charge + (B1\\SD\\ x Primary Unit rate) + ((3300-B1\\SD\\)
x Secondary Unit rate))/3300
B1\\SD\\ has the value given against the relevant supply
services area in Column 2 of Annexe E to this Condition
PPP\\SDt+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
177
(Annual Standing Charge + (B1\\SD\\ x Primary Unit rate) + ((3300-B1\\SD\\)
x Secondary Unit rate))/3300
B\\SDt+1\\ is set equal to
B\\SDt\\ x (1 + (RPI\\t+1\\/100))
D\\SDt+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:
(D1\\SDt+1\\ + (3300 x D\\2SDt+1\\) + D\\3SDt+1\\)/3300
D\\1SDt+1\\ is the distribution use of system charge annual
standing charge for supplying that customer
D\\2SDt+1\\ is the distribution use of system charge in respect of
each unit consumed by that customer
D\\3SDt+1\\ is the aggregate of all other relevant distribution
charges for supplying that customer
T\\SDt+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 xxxxx 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 shown against
the relevant supply services area in column 2 of Annexe
C to this Condition
178
For the purposes of this paragraph 7, any cross
references to it and this Condition generally the terms
B\\SDt\\, D\\SDt\\, and T\\SDt\\ 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 WP\\E7t\\ does not exceed the lower of the two
formulae given under (a) and (b):
(a) ((B\\E7t\\ + D\\E7t\\ + T\\E7t\\) x 1.015) x (1 + (F\\t\\/100))
(b) WP\\E7t-1\\ x ((1 + (F\\t\\/100))/(1 + (F\\d\\/100))) x (1 +
(RPI\\t\\/100))
Where:
WP\\E7t\\ is set equal to
(W\\E7\\ x P\\E7t\\) + ((1-W\\E7\\) x PPP\\E7t\\)
W\\E7\\ means the weighting factor given against the relevant
supply services area in Column 3 of Annexe D to this
Condition
P\\E7t\\ 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 + (B1\\E7\\ x Day Primary Unit
Rate) + ((3000 - B1\\E7\\) x Day Secondary Unit Rate) +
(3600 x Night Unit Rate))/6600
B1\\E7\\ has the value given against the relevant supply
services area in Column 3 of Annexe E to this Condition
PPP\\E7t\\ 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 +
(B1\\E7\\ x Day Primary Unit Rate) + ((3000 - B1\\E7\\)
x Day Secondary Unit Rate) + (3600 x Night Unit
Rate)))/6600
179
B\\E7t\\ means the base allowance, subject to paragraph 16, (in
respect of generation, supply and transmission services
use of system) given against the relevant supply
services area in Column 3 of Annexe B to this Condition
D\\E7t\\ 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
(D\\1E7t\\ + (3000 x D\\2E7t\\) + (3600 x D\\3E7t\\) +
D\\4E7t\\)/6600
D\\1E7t\\ is the distribution use of system charge annual
standing charge for supplying that customer
D\\2E7t\\ is the distribution use of system charge in respect of
each day unit consumed by that customer
D\\3E7t\\ is the distribution use of system charge in respect of
each night unit consumed by that customer
D\\4E7t\\ is the aggregate of all other relevant distribution use
of system charges for supplying that customer
T\\E7t\\ 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 xxxxx 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 shown against
the relevant supply services area in column 3 of Annexe
C to this
180
Condition
WPE\\7t-1\\ is set equal to
(W\\E7\\ x P\\E7t-1\\) + ((x-X\\E7\\) x PPP\\E7t-1\\)
P\\E7t-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 + (B1\\E7\\ x Day Primary Unit
Rate) + ((3000 - B1\\E7\\) x Day Secondary Unit Rate) +
(3600 x Night Unit Rate))/6600
B\\1E7\\ has the value given against the relevant supply
services area in Column 3 of Annexe E
PPP\\E7t-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 + (B1\\E7\\ x Day Primary Unit
Rate) + ((3000 - B1\\E7\\) x Day Secondary Unit Rate) +
(3600 x Night Unit Rate))/6600
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
WP\\E7t+1\\ does not exceed:
((B\\E7t+1\\ + D\\E7t+1\\ + T\\E7t+1\\) x 1.015) x (1 + (F\\t+1\\/100)
Where:
WP\\E7t+1\\ is set equal to
(W\\E7\\ x P\\E7t+1\\) + ((1-W\\E7\\) x PPP\\E7t+1\\)
W\\E7\\ means the weighting factor given against the relevant
supply services area in Column 3 of Annexe D to this
Condition
P\\E7t+1\\ means the average unit price for the licensee's
Domestic Economy
181
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 + (B1\\E7\\ x Day Primary Unit
Rate) r ((3000 - B1\\E7\\) x Day
Secondary Unit Rate) + (3600 X Night Unit Rate)) / 6600
B1\\E7\\ has the value given against the relevant supply
services area in Column 3 of Annexe E to this Condition
PPP\\E7t+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 + (B1\\E7\\ x Day Primary Unit
Rate) + ((3000 - B1\\E7\\) x Day Secondary Unit Rate) +
(3600 x Night Unit Rate))/6600
B\\E7t+1\\ is set equal to
B\\E7t\\.(1 + (RP\\It+1\\/100))
D\\E7t+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:
(D\\1E7t\\+1 + (3000 x D\\2E7t+1\\) + (3600 x
D\\3E7t+1\\) + D\\4E7t+1\\)/6600
D\\1E7t+1\\ is the distribution use of system charge annual
standing charge for supplying that customer
D\\2E7t+1\\ is the distribution use of system charge in respect of
each day unit consumed by that customer
D\\3E7t+1\\ is the distribution use of system charge in respect of
each night unit consumed by that customer
D\\4E7t+1\\ is the aggregate of all other relevant distribution
charges for supplying that customer
182
T\\E7t+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+l 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 xxxxx 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 shown against
the relevant supply services area in column 3 of Annexe
C to this Condition
For the purposes of this paragraph 9, any cross
references to it and this Condition generally the terms
B\\E7t\\, D\\E7t\\, and T\\E7t\\ shall have the
meanings given respectively, in paragraph 8 above.
Supplementary Restrictions
10. Without prejudice to Special Condition E (Allowances 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+ (RPI\\t\\/100)) x ((1 + (F\\t\\/100))/(1 + (F\\d\\/100)))
183
12. Without prejudice to Special Condition E (Allowances 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 the prior written consent of the Authority, in the relevant
year t exceed:- C\\pt\\ x (1 + (RPI\\t\\/100)) x ((1 + (1 +
F\\t\\/100))/(1+F\\d\\/100)))
Where
C\\pt\\ 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, C\\Pt\\ means each of the 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 given against the
relevant supply services area in column 2 of Annexe 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 (Allowances 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),
184
Provided that if in the application of the formulae in
paragraphs 7 and 9 in relevant year t:
the value of D\\SDt+1\\ in relation to the Standard Domestic
Charge exceeds D\\SDt\\ x (1 + (RPI\\t\\/100))
or the value of T\\SDt\\+1 in relation to the Standard Domestic
Charge exceeds T\\SDt\\ x (1 + (RPI\\t\\/100))
or the value of D\\E7t+1\\ in relation to the Domestic Economy 7
Charge exceeds D\\E7t\\ x (1 + (RPI\\t\\/100))
or the value of T\\E7t\\ in relation to the Domestic Economy 7
Charge exceeds T\\E7t\\ x (1 + (RPI\\t\\/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:
RTC\\pt\\ x (1 + (RPIt/100)) x ((1 + (F\\t\\/100))/(1 +
(F\\d\\/100))) Where
RTC\\pt\\ 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.
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.
185
Fossil fuel levy
17. If at any time after the licensee has set its prices for a relevant year
the value of F\\t\\ is changed by an amount which is less than half a
percentage point in the value of the then prevailing rate for F\\t\\,
after taking account of all other changes in the value of F\\t\\ 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
186
(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.
(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;
187
(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 specified against the relevant supply
services area in Column 2 of Annexe A to this Condition;
"Domestic Economy 7 Charge" means that charge determined by the
licensee during the tenth relevant year specified against the relevant
supply services area in Column 3 of Annexe 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 cheque, compared with the
charge which would be made where payment is not made promptly or on
time.
"RPI\\t\\" 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-l and the arithmetic average of the
Retail Price Index numbers published or determined with
respect to the same months in relevant year t-2.
F\\t\\ means the rate of the fossil fuel levy prevailing from
time to time.
F\\d\\ means the fossil fuel levy rate prevailing at 31 March
in the previous relevant year. Hence for the purposes of
the eleventh relevant year, F\\d\\ means 0.3.
188
Annexe A
The Restricted Charges
----------------------------------------------------------------------------------------------------------------
Column 1 Column 2 Column 3
----------------------------------------------------------------------------------------------------------------
Standard Domestic Charge Domestic Economy 7 Charge
----------------------------------------------------------------------------------------------------------------
----------------------------------------------------------------------------------------------------------------
Eastern Area Domestic General Charge: Table 2 Domestic Economy 7 Charge: Table 2
----------------------------------------------------------------------------------------------------------------
East Midlands Area Standard Charge Economy 7 Charge
----------------------------------------------------------------------------------------------------------------
London Area General Purpose Rate (Quarterly) Economy 7 Rate (Quarterly)
----------------------------------------------------------------------------------------------------------------
Manweb Area Domestic 'S' Economy 7
----------------------------------------------------------------------------------------------------------------
Midlands Area D1 Domestic Credit Meter Charge D5 Domestic Economy 7 Charge
----------------------------------------------------------------------------------------------------------------
Northern Area Standard Domestic Charge (D1) Economy 7 Domestic Charge (D1T)
----------------------------------------------------------------------------------------------------------------
NORWEB Area D13 Domestic Charge D56 Economy 7 Charge
----------------------------------------------------------------------------------------------------------------
SEEBOARD Area Standard Domestic Economy 7 Domestic
----------------------------------------------------------------------------------------------------------------
Southern Area General Charge (Quarterly) Economy 7 Charge (Quarterly)
----------------------------------------------------------------------------------------------------------------
South Wales Area Domestic Standard Charge (Quarterly) Domestic Economy 7 Charge
(Quarterly)
----------------------------------------------------------------------------------------------------------------
South Western Area Domestic Charge Economy 7 Charge
----------------------------------------------------------------------------------------------------------------
Yorkshire Area General Domestic (GD) Economy 7 (E7)
----------------------------------------------------------------------------------------------------------------
189
Annexe B
Base Allowances
Xxxxx per kWh (2000/01 prices)
-------------------------------------------------------------------------------
Column 1 Column 2 Column 3
-------------------------------------------------------------------------------
B\\SD\\ B\\E7\\
-------------------------------------------------------------------------------
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
-------------------------------------------------------------------------------
190
Annexe C
Peak loss adjustment factors
--------------------------------------------------------------------------------
Column 1 Column 2 Column 3
--------------------------------------------------------------------------------
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
--------------------------------------------------------------------------------
Xxxxxxxx Xxxx 0.0000 0.0000
--------------------------------------------------------------------------------
Xxxxx Xxxxx Area 1.0915 1.0913
--------------------------------------------------------------------------------
Xxxxx Xxxxxxx Xxxx 0.0000 0.0000
--------------------------------------------------------------------------------
Xxxxxxxxx Area 1.1016 1.1012
--------------------------------------------------------------------------------
191
Annexe D
Prompt payment discount weightings
---------------------------------------------------------------------------
Column 1 Column 2 Column 3
---------------------------------------------------------------------------
W\\SD\\ W\\E7\\
---------------------------------------------------------------------------
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
---------------------------------------------------------------------------
192
Annexe E
Band blocks
----------------------------------------------------------------------
Column 1 Column 2 Column 3
----------------------------------------------------------------------
B1\\SD\\ B1\\E7\\
----------------------------------------------------------------------
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
----------------------------------------------------------------------
193
Annexe F
Prepayment meter surcharge
---------------------------------------------------------------
Column 1 Column 2
---------------------------------------------------------------
(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
---------------------------------------------------------------
194
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 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
(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 (Allowances 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:
(a) the information referred to at paragraph 8 of Special Condition E
(Allowances in respect of Security costs);
(b) the statements and information referred to in paragraph A4 and B2 of
Schedule A; and
195
6. Where the Authority issues directions in accordance with paragraph 9 of
Special Condition E (Allowances 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.
196
Special Condition E: Allowances 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.
197
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 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
198
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 C (Restraints on Supply Charges in England and Wales) and Special
Condition H (Restraints on Supply Charges in Scotland).
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 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.
199
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
200
of the Act deliver to him 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.
201
SCHEDULE A: SUPPLEMENTARY PROVISIONS OF THE CHARGE RESTRICTION CONDITIONS
Part A. Principles for Attribution
General Principles
Al. 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 Al.
Fossil Fuel Levy and payments in lieu thereof
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 C
(Restraints on Supply Charges in England and Wales) 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
202
(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 other basis of attribution as the licensee shall
previously have agreed with the Authority.
Information to be provided by licensee
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 Al 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.
203
Part B. Excluded services
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
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 supply 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.
Directions
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.
204
Special Condition G: Definitions
1. This Condition and Special Conditions H to K and Schedule B shall apply
only to the ScottishPower supply services area (such area is referred to in
these Special Conditions as the "ScottishPower area").
2. In this Condition, in Special Conditions H to K and in Schedule B:
"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
contacts and electricity purchase costs to
domestic customers, attributed in accordance
with the principles set out in Part A of
Schedule B and attribute, attributed,
attributable and attribution shall be construed
accordingly.
"charge restriction means Special Conditions G to K together with
conditions" Schedule B 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 the Public Electricity Supply
Licence previously granted to ScottishPower in
force on 3l March 1998.
"excluded services" means those services provided by the licensee
which in accordance with the principles set out
in Part B of Schedule B 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
205
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
supply services area of the licensee).
"relevant supply services means the ScottishPower Area listed in column 1
area" of Annexes A to F of Special Condition H
(Restraints on Supply Charges in Scotland).
"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 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 ScottishPower 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.
"unit" means a kilowatt hour.
206
Special Condition H: Restraints on Supply Charges in Scotland
1. This Condition shall apply only to the ScottishPower area.
Availability of Restricted Charges
2. The licensee shall make available and continue to make available to all
Domestic Customers the Standard Domestic Charge and the Domestic Economy 7
Charge.
3. 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
4. Without prejudice to Special Condition J (Allowances in respect of Security
costs), and subject to paragraph 17, the licensee shall, in addition to
complying with paragraphs 11, 12, 13 and (where appropriate) 14, 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 7 and paragraph 9
respectively.
5. Without prejudice to Special Condition J (Allowances in respect of Security
costs), and subject to paragraph 17, the licensee shall, in addition to
complying with paragraphs 11 to 16, 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 8 and paragraph 10 respectively.
6. Without prejudice to Special condition J (Allowances in respect of Security
costs), and subject to paragraph 17, the Licensee shall, in addition to
complying with paragraphs 13 to 16, 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 paragraphs 8 and 10 respectively and the
limits imposed by paragraph 16;
where in paragraphs 8, 10, and 16:
references to the 'twelfth relevant year' are replaced by reference to the
relevant subsequent relevant year; and
207
references to 't+1' are to be construed as references to the relevant
subsequent relevant year; and
references to 't' are to be construed as references to the year preceding
the relevant subsequent relevant year.
Restraint on Standard Domestic Charge
7. 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):
(a) ((B\\SDt\\+D\\SDt\\+T\\SDt\\) x 1.015 ) x (l+(F\\t\\/100))
(b) WP\\SDt-1\\ x ((1 + (F\\t\\/100))/( 1+(F\\d\\/100))) x (1 +
(RPI\\t\\/100))
where:
WP\\SDt\\ is set equal to (W\\SD\\ x P\\SDt\\) + ( (1-W\\SD\\) x
PPP\\SDt\\)
W\\SD\\ means the weighting factor given against the relevant supply
services area in Column 2 of Annexe D to this Condition.
P\\SDt\\ 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 + (B1\\SD\\ X Primary Unit rate) +
((3300-B1\\SD\\) X Secondary Unit rate)) / 3300
B1\\SD\\ has the value given against the relevant supply services
area in Column 2 of Annexe E to this Condition.
PPP\\SDt\\ 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 + (B1\\SD\\ X Primary unit rate) +
((3300-B1\\SD\\) X Secondary unit rate)) / 3300
B\\SDt\\ means the base allowance, subject to paragraph 17, (in
respect of generation, supply and transmission services use
of system) given against the relevant supply services area
in Column 2 of Annexe B to this Condition.
208
D\\SDt\\ 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
(D\\1SDt\\ + (3300 . D\\2SDt\\) + D\\3SDt\\) / 3300
where:
D\\1SDt\\ is the distribution use of system annual standing charge for
supplying that customer;
D\\2SDt\\ is the distribution use of system charge in respect of each
unit consumed by the customer; and
D\\3SDt\\ is the aggregate of all other relevant distribution charges
for supplying that customer;
T\\SDt\\ means a sum representing the transmission 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;
T\\1SDt\\+ (3,300 x T\\2SDt\\))/3,300
where:
T\\1SDt\\ is the transmission use of system charge annual standing
charge attributable to or for supplying that customer;
T\\2SDt\\ is the transmission use of system charge in respect of each
unit consumed by that customer.
WP\\SDt-1\\ is set equal to
(WSD x P\\SDt\\-1) + ((1- W\\SD\\) x PPP\\SDt-1\\)
where:
P\\SDt-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 + (B1\\SD\\ x Primary Unit rate) +
((3,300-B1\\SD\\) x Secondary Unity rate)) / 3,300.
PPP\\SDt-1\\ means the average unit price for the licensee's Standard
Domestic
209
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) +
((3,300-B1\\SD\\) x Secondary Unity rate)) / 3,300.
8. 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 WP\\SDt+1\\ does not exceed:
((B\\SDt+1\\ +D\\SDt+1\\ + T\\SDt+1\\ x 1.015) x (1 + (F\\t+1\\/100)
where:
WP\\SDt+1\\ is set equal to
(W\\SD\\ x P\\SDt+1\\) + ((1- W\\SD\\) x PPP\\SDt+1\\)
W\\SD\\ means the weighting factor given against the relevant
supply services area in Column 2 of Annexe D to this
Condition.
P\\SDt+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 without taking account of any
Prompt Payment Discount available under that charge:
(Annual Standing Charge + (B1SD x Primary Unit rate) +
((3,300-B1\\SD\\) x Secondary Unity rate)) / 3,300.
B1\\SD\\ has the value given against the relevant supply
services area in column 2 of Annexe E to this
Condition.
PPP\\SDt+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) +
((3,300-B1\\SD\\) x Secondary Unity rate)) / 3,300.
B1\\SDt+1\\ is set to equal to
210
B\\SDt\\ x (1 + (RPI\\t+1\\/100))
D\\SDt+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:
(D\\1SDt+1\\ + (3,300 x D\\2SDt+1\\)) + D\\3SDt+1\\) /
3,300
where:
D\\1SDt+1\\ is the distribution use of system charge annual
standing charge for supply that customer;
D\\2SDt+1\\ is the distribution use of system charge in respect of
each unit consumed by that customer; and
D\\3SDt+1\\ is the aggregate of all other relevant distribution
charges for supplying that customer.
T\\SDt+1\\ means a sum representing the transmission 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:
(T\\1SDt+1\\ + (3300 x T\\2SDt+1\\))/3300
where:
T\\1SDt+1\\ is the transmission use of system charge annual
standing charge attributable to or for supplying that
customer; and
T\\2SDt+1\\ is the transmission use of system charge in respect of
each unit consumed by that customer.
For the purposes of this paragraph 8, any cross references to it and this
Condition generally the terms B\\SDt\\, D\\SDt\\, and T\\SDt\\) shall have
the meanings given respectively, in paragraph 7 above.
Restraint on Domestic Economy 7 charge
9. 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 WP\\E7t\\ does not exceed the lower of the two
formulae given under (a) and (b)
(a) ((B\\E7t\\ + D\\E7t\\ + T\\E7t\\) x 1.015) x (1 + (F\\t\\/100))
211
(b) WP\\E7t-1\\ x ((1 + (F\\t\\/100)) / (1 + F\\d\\/100)) x (1 +
(RPI\\t\\/100))
where:
WP\\E7t\\ is set equal to
(W\\E7\\ x P\\E7t\\) + ((1 -W\\E\\7) x PPP\\E7t\\))
and:
W\\E7\\ means the weighting factor given against the relevant
supply services area in column 3 of Annexe D to this
Condition;
P\\E7t\\ 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 + (B1\\E7\\. Day Primary Unit
Rate) + ((3000 - B1\\E7\\) x Day Secondary Unit Rate) +
(3600 x Night Unit Rate ))/6600.
B1\\E7\\ has the value given against the relevant supply
services area in Column 3 of Annexe E to this
Condition.
PPP\\ETt\\ 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 + (B1\\E7\\ x Day Primary Unit
Rate) + ((3000 - B1\\E7\\) x Day Secondary Unit Rate) +
(3600 x Night Unit Rate)) / 6600.
B\\E7t\\ means the base allowance, subject to paragraph 17, (in
respect of generation, supply and transmission services
use of system) given against the relevant supply
services area in Column 3 of Annexe B to this
Condition.
D\\E7t\\ 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:
212
(D\\1E7t\\ + (3000 x D\\2E7t\\) + (3600 x D\\3E7t\\ ) +
D4\\E7t\\) / 6600
where
D\\1E7t\\ is the distribution use of system charge annual
standing charge for supplying that customer
D \\2E7t\\ is the distribution use of system charge in respect of
each day unit consumed by that customer
D\\3E7t\\ is the distribution use of system charge in respect of
each night unit consumed by that customer; and
D\\4E7t\\ is the aggregate of all other relevant distribution
charges for supplying that customer.
T\\E7t\\ means a sum representing the transmission 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:
(T\\1E7t\\ + (3000 x T\\2E7t\\) + (3,600 x T\\3E7t\\))
/ 6600
where:
T\\1E7t\\ is the transmission use of system charge annual
standing charge;
T\\2E7t\\ is the transmission use of system in respect of each
day unit consumed by that customer; and
T\\3E7t\\ is the transmission use of system charge in respect of
each night unit consumed by that customer.
WP\\E7t-1\\ is set equal to
(W\\E7\\ x P\\E7t-1\\) + ((1- W\\E7\\) x PPP \\E7t-1\\)
P\\E7t-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 + (B1\\E7\\ x Day Primary Unit
Rate) + ((3000 - B1\\E7\\) x Day Secondary Unit Rate) +
(3600 x Night Unit Rate)) / 6600
B1\\E7\\ has the value given against the relevant supply
services area in
213
column 3 of Annexe E.
PPP\\E7t-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 + (B1\\E7\\ x Day Primary Unit
Rate) + ((3000 - B1\\E7\\) x Day Secondary Unit Rate) +
(3600 x Night Unit Rate)) / 6600
10. 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 terms WP\\E7t+1\\ does not exceed:
((B \\E7t+1\\ + D \\E7t+1\\+T \\E7t+1\\) x 1.015) x (1+(F\\t+1\\/100))
where:
WP\\E7t+1\\ is set equal to
(W\\E7\\ x P\\E7t+1\\) + ((1- W\\E7\\) x PPP\\E7t+1\\)
W\\E7\\ means the weighting factor given against the relevant
supply services area in Column 3 of Annexe D to this
condition;
P\\E7t+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 + (B1\\E7\\ x Day Primary Unit
Rate) + ((3000 - B1\\E7\\) x Day Secondary Unit Rate) +
(3600 x Night Unit Rate)) / 6600
B1 \\E7\\ has the value given against the relevant supply
services area in Column 3 of Annexe E to this
Condition.
PPP\\E7t-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
214
charge:
(Annual Standing Charge + (B1\\E7\\ x Day Primary Unit
Rate) + ((3000 - B1\\E7\\) x Day Secondary Unit Rate) +
(3600 x Night Unit Rate)) / 6600
B\\E7t+1\\ is set equal to
B\\E7t\\ x (1 + (RPI\\t+1\\ / 100))
D\\E7t+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.
D\\1E7t+1\\ + (3000 x D\\2E7t+1\\) + (3600 x
D\\3E7t+1\\) + D\\4E7t+1\\) / 6600
where
D\\1E7t+1\\ is the distribution use of system charge annual
standing charge for supplying that customer
D\\2E7t+1\\ is the distribution use of system charge in respect of
each day unit consumed by that customer
D\\3E7t+1\\ is the distribution use of system charge in respect of
each night unit consumed by that customer
D\\4E7t+1\\ is the aggregate of all other relevant distribution
charges for supplying that customer.
T\\E7t+1\\ means a sum representing the transmission 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:
(T\\1E7t+1\\ + (3000 x T\\2E7t+1\\) + (3600 x
T\\3E7t+1\\))/6600
where
T\\1E7t+1\\ is the transmission use of system charge annual
standing charge attributable to or for supplying that
customer;
T\\2E7t+1\\ is the transmission use of system charge in respect of
each day unit consumed by that customer; and
T\\3E7t+1\\ is the transmission use of system charge in respect of
each night unit consumed by that customer.
215
For the purposes of this paragraph 10, any cross references to it and this
Condition generally the terms B\\E7t\\, D\\E7t\\, and T\\E7t\\ shall have
the meanings given respectively, in paragraph 9 above.
Supplementary Restrictions
11. Without prejudice to Special Condition J (Allowances 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 7
of this condition or, as the case may be, paragraph 9, the limits in
paragraph 12 shall apply.
12. 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 + (RPI\\t\\/ 100)) x ((1 + (F\\t\\/l00))/(1 + (F\\d\\/100)))
13. Without prejudice to Special Condition J, (Allowances 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 the prior written consent of the Authority, in the relevant
year t exceed:-
C\\pt\\ x (1 + (RPI\\t\\ / 100 )) x ((1 + (F\\t\\/l00))/(1+(F\\d\\/100)))
Where:
C\\pt\\ 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, C\\pt\\ means each of the standing
216
charge, unit rate or rates, and other component parts of the charge,
prevailing at the end of the tenth relevant year.
Prepayment Meter Charges
14. In the eleventh and subsequent relevant years, the total charge in any
domestic prepayment meter charge, including any 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 given against
the relevant supply services area in column 2 of Annexe F.
15. The Authority may by direction specify both which charges are to be
deemed prepayment meter charges and which charges are their equivalent
domestic charges.
Standing charges and unit rates
16 (a) Without prejudice to Special Condition J (Allowances 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 8 and
10 in relevant year t:
the value of D\\SDt+1\\ in relation to the Standard Domestic Charge
exceeds
D\\SDt\\ x (1 + (RPI\\t\\/100))
or the value of T\\SDt+1\\ in relation to the Standard Domestic Charge
exceeds
T\\SDt\\ x (1+ (RPI\\t\\ / 100))
217
or the value of D\\E7t+1\\ in relation to the Domestic Economy 7 Charge
exceeds
D\\E7t\\ x (l + (RPI\\t\\/100))
or the value of T\\E7t+1\\ in relation to the Domestic Economy 7 Charge
exceeds
T\\E7t\\ x (1 + (RP1\\t\\/100))
then the licensee may increase that Restricted Charge up to the level
allowed by the paragraphs 8 or 10 as appropriate.
(b) The formula referred to in paragraph (a) is:
RTC\\pt\\ . (1 +(RPI\\t\\/100)) x ((1+(F\\t\\/100))/(1+(F\\d\\/100)))
Where:
RTC\\pt\\ 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.
Generation, Supply Business, and Transmission Services Use of System Costs
17. 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 7 to 10 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 6 applies), the limits imposed by
paragraphs 7 to 10 shall be raised to the extent specified in the
direction.
218
Fossil fuel levy
18. If at any time after the licensee has set its prices for a relevant year
the value of F\\t\\ is changed by an amount which is less than half a
percentage point in the then prevailing rate of F\\t\\, after taking
account of all other changes in the value of F\\t\\ since its prices were
set, the licensee shall not be required, solely on that account, to
change the prices it has set.
Reporting requirements
19. Every three months, in each of the eleventh and subsequent relevant
years, the licensee shall submit to the Authority statements detailing
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
20(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
219
(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.
(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
21. 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:
220
"Standard Domestic Charge" means that charge determined by the
licensee during the tenth relevant year
specified against the relevant supply
services area in Column 2 of Annexe A to
this Condition;
"Domestic Economy 7 Charge" means that charge offered by the licensee
during the tenth relevant year specified
against the relevant supply services area
in Column 3 of Annexe 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 cheque, compared with
the charge which would be made where
payment is not made promptly or on time.
"RPI\\t\\" means the percentage change (whether of
positive or a negative value) in the
arithmetic average of the Retail Price
Index figures published or determined with
respect to each of the six months July to
December (inclusive) in relevant year t-l
and the arithmetic average of the Retail
Price Index figures published or determined
with respect to the same months in relevant
year t-2.
"F\\t\\" means the rate of the fossil fuel levy
prevailing from time to time;
221
"F\\d\\" means the fossil fuel levy prevailing at 31
March in the previous relevant year. Hence
for the purposes of the eleventh relevant
year, F\\d\\ means 0.
222
Annexe A
The Restricted Charges
--------------------------------------------------------------------------------
Column 1 Column 2 Column 3
--------------------------------------------------------------------------------
ScottishPower Area Domestic Tariff White Meter Tariff No. 1
--------------------------------------------------------------------------------
Scottish Hydro Area Domestic Standard Tariff Domestic Economy Tariff
--------------------------------------------------------------------------------
223
Annexe B
Base Allowances
Xxxxx per kWh (2000/01 prices)
--------------------------------------------------------------------------------
Column 1 Column 2 Column 3
--------------------------------------------------------------------------------
B\\SD\\ B\\E7\\
--------------------------------------------------------------------------------
ScottishPower Area 4.967 3.814
--------------------------------------------------------------------------------
Scottish Hydro Area 5.056 3.893
--------------------------------------------------------------------------------
224
Annexe C
[Not used]
225
Annexe D
Prompt payment discount weightings
--------------------------------------------------------------------------------
Column 1 Column 2 Column 3
--------------------------------------------------------------------------------
W\\SD\\ W\\E7\\
--------------------------------------------------------------------------------
ScottishPower Area 0.618 0.622
--------------------------------------------------------------------------------
Scottish Hydro Area 0.530 0.530
--------------------------------------------------------------------------------
226
Annexe E
Band blocks
--------------------------------------------------------------------------------
Column 1 Column 2 Column 3
--------------------------------------------------------------------------------
B1\\SD\\ B1\\E7\\
--------------------------------------------------------------------------------
ScottishPower Area 3300 3000
--------------------------------------------------------------------------------
Scottish Hydro Area 3300 3000
--------------------------------------------------------------------------------
227
Annexe F
Prepayment meter surcharge
--------------------------------------------------------------------------------
Column 1 Column 2
--------------------------------------------------------------------------------
(pound)
--------------------------------------------------------------------------------
ScottishPower Area 15.00
--------------------------------------------------------------------------------
Scottish Hydro Area 0.00
---------------------------------------------------------------- ---------------
228
Special Condition I: 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 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
(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 J (Allowances 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:
(a) the information referred to at paragraph 8 of Special Condition
J (Allowances in respect of Security costs);
(b) the statements and information referred to in paragraph A4 and
B2 of Schedule B; and
229
6. Where the Authority issues directions in accordance with paragraph 9 of
Special Condition J (Allowances in respect of Security costs) or paragraphs
A5 and B3 of Schedule B 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.
230
Special Condition J: Allowances 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
231
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 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 J (Information to
be provided to the Authority in connection with the charge restriction
conditions), details in respect of that relevant year of:
232
(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 C (Restraints on Supply Charges in England and Wales) and Special
Condition H (Restraints on Supply Charges in Scotland).
11. In this Condition:
"allowed security cost" means any cost (whenever arising) incurred by
the licensee and approved by the Authority as
being directly attributable to actions taken
or omitted to be taken by the licensee or by
any authorised electricity operator (as the
case may be) in consequence of:
(i) complying with directions issued by the
Secretary of State under Section 34(3)
or 34(4) of the Act; or
(ii) implementing recommendations of any
committee constituted to advise the
Secretary of State as to matters related
to his power to issue directions under
233
Section 34 of the Act which are made to
and accepted by the Secretary of State
in contemplation of circumstances likely
to lead to the issue of directions by
the Secretary of State under Section
34(3) or 34(4) of the Act;
but for the avoidance of doubt excluding any
cost which forms part of SP Transmission
Limited's or SP Distribution Limited's
allowed security costs.
"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 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.
234
Special Condition K: 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
235
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
him 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.
236
SCHEDULE B: SUPPLEMENTARY PROVISIONS OF THE CHARGE RESTRICTION CONDITIONS
Part A. Principles for Attribution
General Principles
Al. 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 B are without prejudice
to paragraph Al.
Fossil Fuel Levy and payments in lieu thereof
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.
Information to be provided by licensee
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 I (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 B, accompanied (where appropriate) by:
237
(a) a statement of the total amounts attributed to regulated domestic
customers and other customers; and
(b) copies of statements prepared under paragraph 3 of Special Condition
I (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 Al. 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 I (Information to be
provided to the Authority in connection with charge restriction
conditions)) such other date as may be specified in those directions.
238
Part B. Excluded Services
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
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 I (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 supply business by the licencee 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
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 I (Information
to be provided to the Authority in connection with charge restriction
conditions)) such other date as may be specified in the directions.
239
Special Condition L: Restriction on Self-Supply
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 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 Manweb supply services area specified in
Schedule 3A;
(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 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 Manweb 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 C 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;
240
(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.
241
SCHEDULE 1
SPECIFIED AREA
Great Britain
242
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(g)) 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
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;
243
(d) if the licensee fails to comply with:
(i) an order made by the Secretary of State under sections 56, 73,
74 or 89 of the Fair Trading Xxx 0000; or
(ii) an order made by the court under section 34 of the Competition
Xxx 0000.
(e) if the licensee has not within 5 years after the date on which this
licence comes into force, commenced the supply of electricity to any
of the premises within the area specified in Schedule 1 to this
licence;
(f) if the licensee has ceased to supply electricity to all of the
premises within the area specified in Schedule 1 to this licence for
a period of 5 years;
(g) if the licensee:
(i) is unable to pay its debts (within the meaning of section
123(1) or (2) of the Insolvency Xxx 0000, 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
Xxx 0000 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
(h) 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 l(g)(i), section 123(I)(a) of the
Insolvency Xxx 0000 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.
244
3. The licensee shall not be deemed to be unable to pay its debts for the
purposes of sub-paragraph 1(g)(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.
245
SCHEDULE 3A
MANWEB 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
None
B: EXCLUDED PREMISES
(a) PART OF THE SUPPLY SERVICES AREA OF NORWEB ENERGY LIMITED
Address Grid Ref:
Xxxxxxx Xxxx Xxxxxxx Xxxxxxx XX 0000 0000
Xxxxxxx Xxxx
Xxxxxxxx
X00 0XX
246
SCHEDULE 3B
SCOTTISH POWER SUPPLY SERVICES AREA
1. Scotland (except the area specified in The Electricity Act 0000 (Xxxxx xx
Xxxxxxxx Xxxxxxxxx Xxxx) Order 1990 made on 7 March 1990), the areas in
the north of England supplied prior to 30 March 1990 by the South of
Scotland Electricity Board and shown on the twelve boundary maps signed by
representatives of South of Scotland Electricity Board, North Eastern
Electricity Board and the North Western Electricity Board, and deposited
with the Secretary of State for Scotland on 28 March 1990.
2. In this Schedule "the twelve boundary maps" mean
0.S. 1:50 000 Second Series, Sheet 80 O.S.I:50 000 First Series, Sheets 74
+ 75
O.S.N.Y 36 NW
O.S.N.Y 37 SW
O.S.N.Y 37 SE
O.S.N.Y 37 NE
O.S.N.Y 47 SW
O.S.N.Y 47 NW
O.S.N.Y 48 SE
O.S.N.Y 58 SW
O.S.N.Y 58 NW
O.S.N.Y 58 NE
247
CONSENTS AND DIRECTIONS
248
Company Secretary
Scottish Power Energy Retail Limited
0 Xxxxxxxx Xxxx
XXXXXXX
X0 0XX 1 October 2001
Dear Sir/Madam
Re: Security Cover Direction
Please find enclosed a Direction issued under Standard Condition 33 of the Gas
and Electricity Supply Licences. The Direction sets the level of security cover
("the bond") for a Supplier of Last Resort in gas and electricity to zero from 1
October 2001.
The Direction applies to all suppliers that have Section C (domestic supply
obligations) of their supply licences switched on in accordance with Condition 2
of the Supply Licence.
Yours faithfully
XXXX XXXXXX
HEAD OF SUPPLIER FAILURE AND LICENSING
249
THE ELECTRICITY ACT 1989 (as amended)
ELECTRICITY SUPPLY LICENCES
Direction under Standard Licence Condition 33
1. This direction is made by the Gas and Electricity Markets Authority ("the
Authority") under standard condition 33 ("the Condition") of the
electricity supply licences granted (or treated as granted) under section
6(1)(d) of the Electricity Xxx 0000 (as amended). It is addressed to all
the holders of such licences.
2. Under paragraph 2 of the Condition the Authority is to determine the sum
of money to be secured by the licensee by a bond or other instrument or by
other arrangements as approved by the Authority.
3. The Authority hereby directs that the sum of money to be so secured by the
licensee shall be zero.
4. This direction shall have effect on and from 1 October 2001. It shall
remain in effect until such time as the Authority shall withdraw it or
replace it by a further direction made under the Condition.
Dated: 27 September 2001
Signed: ___________________________
Duty authorised on behalf of the Authority
250
