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STATUTORY INSTRUMENTS

2001 No. 3354
ELECTRICITY
The Electricity (Applications for Licences and Extensions and Restrictions of Licences) Regulations 2001

	Made	28th September 2001
	Coming into force	1st October 2001

The Gas and Electricity Markets Authority[1], in exercise of powers conferred on it by sections 6A(2), (3) and (6)[2], 60 and 64(1)[3] of the Electricity Act 1989, and of all other powers enabling it in that behalf, hereby makes the following Regulations -

Citation, commencement, transitional and saving provisions for applications lodged before 1st October 2001
     1. - (1) These Regulations may be cited as the Electricity (Applications for Licences and Extensions and Restrictions of Licences) Regulations 2001 and shall come into force on 1st October 2001.

    (2) In relation to any application made before the date on which these Regulations come into force the Electricity (Applications for Licences and Extensions of Licences) Regulations 1990[4] shall continue to apply to the exclusion of these Regulations.

Revocation
     2. Subject to regulation 1, the Electricity (Applications for Licences and Extensions of Licences) Regulations 1990 are hereby revoked.

Interpretation
     3. - (1) In these Regulations, unless the context otherwise requires -

"the 2000 Act" means the Utilities Act 2000;

"the Act" means the Electricity Act 1989;

"application" means an application for a licence, an application for an extension of a licence or an application for a restriction of a licence under the Act; and references to an application in respect of a licence shall be construed accordingly;

"the Authority" means the Gas and Electricity Markets Authority established by section 1 of the 2000 Act;

"distribution licence" means a licence granted or to be granted under section 6(1)(c) of the Act;

"domestic premises" means premises used wholly or mainly for domestic purposes;

"extension", in relation to a supply licence, means an extension of the licence under section 6(4) of the Act and, in relation to a distribution licence, means an extension of the licence under section 6(6) of the Act;

"generation licence" means a licence granted or to be granted under section 6(1)(a) of the Act;

"restriction", in relation to a supply licence, means a restriction of the licence under section 6(4) of the Act and, in relation to a distribution licence, means a restriction of the licence under section 6(6) of the Act;

"supply licence" means a licence granted or to be granted under section 6(1)(d) of the Act; and

"transmission licence" means a licence granted or to be granted under section 6(1)(b) of the Act.

    (2) In these Regulations, unless the context otherwise requires, a reference to a standard condition is a reference to a standard condition in relation to licences under section 6(1)(a), (b), (c) and (d) of the Act which is determined under section 33(1) of the 2000 Act, subject to such modifications of the standard conditions made under Part I of the Act or the 2000 Act after the determination under that section.

    (3) Unless the context otherwise requires, other expressions appearing in these Regulations shall have the same meaning, if any, as they have in Part I of the Act.

    (4) In these Regulations, unless the context otherwise requires -

Manner of application
4 An application shall be -

(a) made in writing, addressed to the Authority and delivered or sent by prepaid post to the Authority at its principal office; and

(b) signed and dated by or on behalf of the applicant, stating, where signed on behalf of the applicant, the capacity of the signatory.

Form of application
5. An application shall -

(a) be in the form specified in Schedule 1 or a form to the like effect, and shall contain the information there specified; and

(b) be accompanied by the information and documents specified in Schedule 2.

Additional information and documents to accompany application
6. - (1) Subject to paragraphs (2) and (3)

(a) an application in respect of a generation licence shall be accompanied by the information and documents specified in Part I of Schedule 3;

(b) an application in respect of a transmission licence shall be accompanied by the information and documents specified in Part II of Schedule 3;

(c) an application in respect of a distribution licence shall be accompanied by the information and documents specified in Part III of Schedule 3; and

(d) an application in respect of a supply licence shall be accompanied by the information and documents specified in Part IV of Schedule 3.

(2) The obligation imposed by paragraph (1) shall, to the extent that information and documents are specified in Schedule 3 by reference to, or in relation to, a standard condition, apply -

(a) subject to paragraph (3), in the case of an application for a licence, as if the standard condition in question were to be included and have effect in any licence granted as a result of the application;

(b) in the case of an application for an extension or restriction of a licence, in relation to such of the standard conditions in question as have been included and have effect in that licence.

    (3) Where a modification to any standard condition is requested in accordance with paragraph 3 of Schedule 1, the obligation imposed by paragraph (2)(a) above shall be modified accordingly.

Application fees
     7. - (1) Subject to paragraph (2), each application of the description specified in column 1 of Schedule 4 shall be accompanied by the corresponding fee specified in column 2 of that Schedule.

    (2) Where more than one such fee would, apart from this paragraph, be payable in respect of a particular application, only the higher or highest such fee, as the case may be, shall be payable.

Notice of applications
     8. - (1) The period prescribed for the purpose of section 6A(3) of the Act (notice of applications) is seven days.

    (2) The notice of an application to be published within the prescribed period -

(a) in respect of an application for an extension of a distribution licence, shall be published -

(b) in respect of any other application, shall be published in the London and Edinburgh Gazettes.

    (3) Notice of an application in respect of a generation licence shall also be published within the prescribed period, in such newspapers as are calculated to ensure that the notice is circulated throughout every area in which is or may be located any generating station to be operated under the licence.

    (4) Notice of an application in respect of a transmission licence shall also be published within the prescribed period, where the application relates to the transmission of electricity in an authorised area, in such newspapers as are calculated to ensure that the notice is circulated throughout that area.

    (5) Notice of an application in respect of a distribution licence shall also be published within the prescribed period, where the application relates to the distribution of electricity in any area or only in an area specified, in such newspapers as are calculated to ensure that the notice is circulated throughout that area.

    (6) Notice of an application in respect of a supply licence which would authorise, or authorises, the supply of electricity to domestic premises shall also be published within the prescribed period -

(a) where the application relates to premises of a specified description and is not limited to premises situated in an area specified in the application, in such newspapers as are calculated to ensure that the notice is circulated throughout Great Britain;

(b) where the application relates to premises situated in an area specified in the application, in such newspapers as are calculated to ensure that the notice is circulated throughout that area;

(c) where the application relates to particular premises, in such newspapers as are calculated to ensure that the notice is circulated throughout the area or areas in which those premises are situated.

(7) The applicant shall deliver, or send by prepaid 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 within seven days of their publication.

(8) In this regulation "the prescribed period" means the period referred to in paragraph (1).

The seal of the Gas and Electricity Markets Authority here affixed is authenticated by the signature of

L.S.

R.A.M. Ramsay,
A member of the Authority

28th September 2001

SCHEDULE 1Regulation 5

FORM OF APPLICATION IN RESPECT OF A GENERATION LICENCE, TRANSMISSION LICENCE, DISTRIBUTION LICENCE OR SUPPLY LICENCE UNDER THE ELECTRICITY ACT 1989

GENERAL PARTICULARS
1. State -

(1) name and address of applicant in full; in the case of a partnership or other joint venture (other than a body corporate), give the names and addresses of each party concerned

(2) name, address and telephone number of person to whom correspondence or enquiries concerning the application should be directed

(3) whether the application is in respect of a generation licence, a transmission licence, distribution licence or a supply licence[5]

(4) whether the application is for a licence, an extension of a licence or a restriction of a licence[6]

(5) The date from which the licence or extension or restriction is desired to take effect.

2. - (1) State whether the applicant is a public limited company, private limited company, overseas company, other body corporate, partnership, unincorporated association, sole trader or other entity (and in the last case give particulars of the legal status).

(2) If the applicant is a body corporate, state -

7

(3) If the applicant is neither a body corporate nor a sole trader, give the name(s) and address(es) of the person or persons in whom effective control of the applicant rests.

(4) Where any person (other than a person whose name is given at paragraph 2(2)(d) or paragraph 2(3) above) holds 20 per cent or more of any class of the shares[8] of the applicant, give the name and address of each such person, specifying in each case the number of shares so held and the percentage of the aggregate number of shares of that class represented thereby.

(5) Give particulars of any licences under the Act or the Gas Act 1986[9] held, applied for (whether or not successfully) or intended to be applied for by the applicant or (so far as is known to the applicant) by any person who is a related person in relation to the applicant[10].

DETAILS OF APPLICATION
3. If the application is for a licence describe -

(a) the licence holder would not be unduly disadvantaged in competing with other holders of licence of that type; and

(b) no other holder of a licence of the same type would be unduly disadvantaged in competing with other holders of such licences (including the applicant).

SCHEDULE 2Regulation 5

DOCUMENTS AND OTHER INFORMATION TO ACCOMPANY AN APPLICATION

Financial Information
1. Where the applicant is a company, the documents specified in sub-paragraph (1) and, if the applicant is a subsidiary undertaking, also those specified in sub-paragraphs (2) and, if applicable, (3) below.

(1) Copies of -

(2) Copies of -

(3) If the documents specified in sub-paragraph (2) above do not include the consolidated audited annual accounts for any parent undertaking or subsidiary undertaking of the applicant established outside Great Britain, copies of such accounts, together with any auditors' reports, as indicate the financial state of affairs of the group in question -

2. Where the applicant is not a company, such accounts and other information as indicate the financial state of affairs of the applicant and its profit and loss, and the statements for the most recent period, together with copies of the latest audited annual accounts where such accounts have been prepared, and of any person in whom effective control of the applicant resides -

3. Where any of the documents mentioned in paragraph 1 or, where applicable, paragraph 2 above is not supplied, an explanation of why it is not supplied together with such financial information to the like effect as can reasonably be supplied.

4. A statement giving such further particulars (if any), whether by way of financial projections, sources of finance or otherwise, as will, in conjunction with such information and documents as is provided in accordance with paragraphs 1, 2, or 3 above, indicate whether the applicant would be likely to be able to finance the activities authorised by its licence if the application were granted.

Proposed business
     5. An outline statement of the business proposals, for that business of the applicant to which the application relates, for the next five years including annual forecasts of costs, sales and revenues and project financing, stating the assumptions underlying the figures provided. (The statement of the first year's forecasts of costs, sales and revenues and project financing to be broken down on a month by month basis.)

     6. Details of any expected subsequent substantial capital outflows including major decommissioning costs.

     7. Estimates of net annual cash flows for subsequent periods sufficient to demonstrate the financial security and feasibility of the project(s) to which the application relates.

Expertise of applicant
     8. A statement giving such particulars of the applicant, and of any sub-contractors or other persons on whose expertise the applicant proposes to rely, as may indicate whether the applicant has or will acquire the necessary skills to undertake the activities in respect of which the application is made.

Interpretation
     7. In this Schedule -

"annual accounts" has the meaning given by section 262(1) of the 1985 Act and shall be construed in accordance with section 261(2) of that Act;

"auditors' report" means a report prepared under section 235(1) of the 1985 Act;

"company" means

"group" has the meaning given by section 262 of the 1985 Act;

"group accounts" means such accounts as are required to be prepared by section 227 of the 1985 Act, or, as the case may be, delivered under section 228(2)(e) of that Act, together with any accounts required to be delivered in accordance with section 243(2) of that Act;

"parent undertaking" and "subsidiary undertaking" have the meanings given by section 258 of the 1985 Act; and

"the 1985 Act" means the Companies Act 1985.

SCHEDULE 3Regulation 6

PART I
FURTHER INFORMATION AND DOCUMENTS TO ACCOMPANY AN APPLICATION IN RESPECT OF A GENERATION LICENCE
1. Provide a sufficient description adequately specifying[11] the actual or proposed location of each generating station intended to be operated under the licence (if granted). Description of proposed location must be sufficient to make clear the nature and extent of the proposed development.

2. Provide a statement of -

3. A statement of the extent (if any) to which the applicant considers it necessary for powers under Schedule 3 (compulsory acquisition of land etc) and under Schedule 4 (other powers etc) to the Act to be given through the licence for which he is applying.

PART II
FURTHER INFORMATION AND DOCUMENTS TO ACCOMPANY AN APPLICATION IN RESPECT OF A TRANSMISSION LICENCE
     1. Provide a sufficient description adequately specifying[12] the actual or proposed locations of the electric lines and electrical plant constituting the intended transmission system, and the area to which the application relates.

     2. An indication of the extent to which, and the locations in which, those lines are or will be placed underground.

     3. An identification of the voltages of the electrical lines forming part of the intended transmission system.

     4. Provide a statement of -

Together with -

5. A description of the applicant's proposed arrangements for compliance with the applicable requirements of standard conditions C7 (Charges for Use of System) C7B (Connection Charging Methodology) and C7D (Requirement to Offer Terms).

6. A description of the applicant's proposed arrangements for compliance with the continuity of supply requirements in regulations made under section 29 of the Act.

PART III
FURTHER INFORMATION AND DOCUMENTS TO ACCOMPANY AN APPLICATION IN RESPECT OF A DISTRIBUTION LICENCE[13]
     1. Provide a sufficient description adequately specifying[14] the actual or proposed location of the system of electric lines and electrical plant by means of which the applicant intends to enable a supply of electricity to be given, indicating which plant and lines are to be constructed and which are existing plant and lines, and further identifying any parts of that system which will not be owned by or otherwise in the possession or control of the applicant, and the area to which the application relates.

     2. A statement of the extent (if any) to which the applicant considers it necessary for powers under Schedule 3 (compulsory acquisition of land etc.) and under Schedule 4 (other powers etc.) to the Act to be given through the licence for which he is applying.

     3. Provide a statement of -

Together with -

(f) detailed map or maps, to scale sufficient to show clearly the area to which the application relates. This should include the distribution system above 11kV, location of infeeds (Grid Supply Points), overhead lines, interconnectors, cable routes and associated substations. Showing which lines, cables and substations are to be constructed and which are already in existence.

4. A map drawn to an appropriate scale showing the actual or proposed configuration of the distribution system the applicant would operate if the application were granted, showing -

     5. Such particulars as will indicate whether any distribution system through which the applicant would be authorised to convey electricity if the application were granted would be operated safely.

     6. Particulars of the applicant's proposed arrangements to secure the performance of any obligations in relation to supplies of electricity illegally taken imposed on him by paragraph 4 of Schedule 6 to the Act.

     7. Particulars of the applicant's proposed arrangements for compliance with the applicable requirements of standard conditions 4 (Basis of Charges for Use of System and Connection to System: Requirements for Transparency), 4B (Requirement to Offer Terms for Use of System and Connection), 5 (Distribution System Planning Standard and Quality of Service), 6 (Safety and Security of Supplies Enquiry Service), 7 (Provision of Information about Theft or Abstraction of Electricity, Damage and Meter Interference), 8 (Provisions Relating to the Connection of Metering Equipment), 9 (Distribution Code) and 19 (Code of Practice on Procedures with Respect to Site Access).

     8. A description of the applicant's proposed arrangements for compliance with the continuity of supply requirements in regulations made under section 29 of the Act.

Restriction of a distribution licence
     9. If the application is for a restriction of a licence -

(b) unless there are, at the date of the application, no relevant consumers (within the meaning set out in sub-paragraph (c) below) in relation to the applicant, a description of the applicant's proposed arrangements to ensure compliance with section 16 of the Act (ensuring the connection of all such relevant consumers is maintained).

(c) For the purposes of sub-paragraph (b), a person is a relevant consumer if -

PART IV
FURTHER INFORMATION AND DOCUMENTS TO ACCOMPANY AN APPLICATION IN RESPECT OF A SUPPLY LICENCE[15]
1. A supply licence may authorise the holder to supply electricity -

Please specify which of (a), (b) or (c) above is applicable. Provide a sufficient description adequately specifying[16] the premises or a description of the premises and the location of the premises intended to be supplied, and, in the case of application that relates to (c) above, also the specified area. Also state whether the application relates to domestic premises.

2. For all applications for supply licences, or extensions of such licences, state whether the licence or extension is to authorise the supply of electricity to premises to which it is conveyed by a distributor, and if not give details of any exemption under section 5 of the Act under which the electricity is or will be conveyed to the premises.

3. Provide a statement of -

Supply to domestic premises

4. If the application relates to the supply of electricity to domestic premises -

Supply of electricity to premises which are not domestic premises

5. If the application relates to the supply of electricity to any premises which are not domestic premises-

Restriction of a supply licence

6. If the application is for a restriction of a licence -

(b) unless there are, at the date of the application, no relevant consumers (within the meaning set out in sub-paragraph (c) below) in relation to the applicant, a description of the applicant's proposed arrangements under standard condition 22A (Restriction or Revocation: Securing Continuity of Supply) for -

(c) For the purposes of sub-paragraph (b), a person is a relevant consumer if -

SCHEDULE 4Regulation 7

APPLICATION FEES

COLUMN 1	COLUMN 2
Description of application	Fee payable, �
Generation
Application for licence	800
Transmission
Application for licence	2,000
Distribution
1. Application for licence to distribute electricity within a specified area	2,000
2. Application for an extension or restriction	600
Supply
1. Application for licence (not including authorisation to supply electricity to domestic premises)	800
2. Application for licence including authorisation to supply electricity to domestic premises	1,500
3. Application for extension of a licence which includes authorisation to supply electricity to domestic premises	600
4. Application for any other extension or restriction	600

EXPLANATORY NOTE

(This note is not part of the Regulations)

These Regulations set out the information, and other documents that are required to be submitted with applications for electricity generation, transmission, distribution and supply licences (and for extensions or restrictions of supply and distribution licences) under the Electricity Act 1989, as amended by the Utilities Act 2000. They specify the form and manner of such applications. These Regulations also set out the manner in which applications are to be published.

These Regulations come into force on 1st October 2001. Regulation 1 provides for the citation, commencement, transitional and savings provisions and regulation 3 provides for general interpretation.

Regulation 4 deals with the manner of applications.

Regulation 5 concerns the forms of applications, and incorporates Schedules 1 and 2 that specify their form, and the information and documents to accompany them.

Regulation 6 specifies the additional information and documents to accompany applications. It incorporates Schedule 3, which covers, respectively, applications for:

Regulation 7 incorporates Schedule 4, which specifies the fees payable in respect of applications.

Regulation 8 provides for the notice period and publication requirements for applications.

Notes:

[1] The Gas and Electricity Markets Authority was established under section 1(1) of the Utilities Act 2000 (c. 27).back

[2] with effect from 1st October 2001, section 6 of the Electricity Act 1989 (c. 29) is substituted by section 30 of the 2000 Act which introduces a new section 6 and sections 6A and 6B of the Act.back

[3] See the definition of "prescribed". The definition was amended by section 108 of and paragraphs 24, 38(1) and (6) of Part II of Schedule 6 to the Utilities Act 2000.back

[4] S.I. 1990/192.back

[5] Application may not be made on the same form in respect of more than one of these types of licence.back

[6] Application may not be made for an extension or restriction of a transmission or generation licence.back

[7] 1985 c. 6.back

[8] Reference to shares -
(i) in relation to an applicant with share capital, are to allotted shares;
(ii) in relation to an applicant with capital but no share capital, are rights to share in the capital of the applicant;
(iii) in relation to an applicant without capital, are to interests -
(a) conferring any right to share in the profits or liability to contribute to the losses of the applicant; and
(b) giving rise to an obligation to contribute to the debts or expenses of the applicant in the event of a winding up.back

[9] 1986 c. 44.back

[10] In this sub-paragraph "related person" means -
(i) in relation to an applicant who is an undertaking within the meaning of section 259 of the Companies Act 1985 ("the principal undertaking"), a parent or subsidiary undertaking of the principal undertaking or a subsidiary undertaking of a parent undertaking of the principal undertaking, in each case within the meaning of section 258 of that Act; and
(ii) in relation to any applicant (including such an undertaking), a connected person of the applicant within the meaning of section 286 of the Taxation of Chargeable Gains Act 1992 (c. 12).back

[11] The description should enable the areas, location or premises concerned to be adequately and readily identified by map if the applicant so desires or by any other convenient means.back

[12] The description should enable the areas, location or premises concerned to be adequately and readily identified by map if the applicant so desires or by any other convenient means.back

[13] In this Part of this Schedule, if the application is for an extension or restriction of a licence, information and documents need only be given in so far as, in any material respect, they differ from or add to the most recent information or documents which were provided in relation to the same requirement -
(i) with an application made by the applicant in accordance with these Regulations; or
(ii) subsequent to such an application in pursuance of a condition of the applicant's licence.back

[14] The description should enable the areas, location or premises concerned to be adequately and readily identified by map if the applicant so desires or by any other convenient means.back

[15] In this Part of this Schedule, if the application is for an extension or restriction of a licence, information and documents need only be given in so far as, in any material respect, they differ from or add to the most recent information or documents which were provided in relation to the same requirement -
(i) with an application made by the applicant in accordance with these Regulations; or
(ii) subsequent to such an application in pursuance of a condition of the applicant's licence.back

[16] The description should enable the areas, location or premises concerned to be adequately and readily identified by map if the applicant so desires or by any other convenient means.back

ISBN 0 11 039525 5

Prepared 22 March 2002

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