Statutory Instrument 1995 No. 909

The Electricity (Class Exemptions from the Requirement for a Licence) (No. 2) Order 1995

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© Crown Copyright 1995

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1995 No. 909

ELECTRICITY

The Electricity (Class Exemptions from the Requirement for a Licence) (No. 2) Order 1995

The Secretary of State for Trade and Industry (as respects England and Wales) and the Secretary of State for Scotland (as respects Scotland), in exercise of the powers conferred by sections 5 and 111(2) of the Electricity Act 1989^[1] and of all other powers enabling them in that behalf and after consultation with the Director General of Electricity Supply, hereby make the following Order:—

Citation and commencement
    1.    This Order may be cited as the Electricity (Class Exemptions from the Requirement for a Licence) (No. 2) Order 1995 and shall come into force on 30th March 1995.

Interpretation
    2.—(1)  In this Order—

"the Act" means the Electricity Act 1989;


"declared net capacity" in relation to a generating station has the meaning given to that expression in Schedule 1;


"offshore installation" has the same meaning as in the Mineral Workings (Offshore Installations) Act 1971^[2];


"ordinary share capital" has the same meaning as in section 832(1) of the Income and Corporation Taxes Act 1988^[3];


"parent undertaking" shall be construed in accordance with section 258 of the Companies Act 1985^[4];


"the pooling and settlement agreement" means the pooling and settlement agreement to which a person generating or supplying electricity may be required to become a party by the licence (if any) granted to him under section 6 of the Act;


"road" has the same meaning as in section 192(1) of the Road Traffic Act 1988^[5]; and


"successor company" has the same meaning as in Part II of the Act.

    (2)  For the purposes of this Order—
 (a) one body corporate shall be treated as associated with another if—
 (i) one of them is a subsidiary of the other; or
 (ii) both of them are subsidiaries of the same holding company;
and "holding company" and "subsidiary" shall have the same meaning as in section 736 of the Companies Act 1985^[6];
 (b) one body corporate shall be treated as related to another if—
 (i) one of them is a 75 per cent. subsidiary of the other; or
 (ii) both of them are 75 per cent. subsidiaries of a third body corporate;
and "75 per cent. subsidiary" shall be construed in accordance with section 838 of the Income and Corporation Taxes Act 1988;
 (c) one body corporate shall be treated as connected to another if—
 (i) 50 per cent. or more of the ordinary share capital of one of them is owned directly or indirectly by the other; or
 (ii) 50 per cent. or more of the ordinary share capital of each of them is owned directly or indirectly by a third body corporate,
and for the purpose of determining whether 50 per cent. or more of the ordinary share capital of a body corporate is owned directly or indirectly by another body corporate the provisions of subsections (2) to (10) of section 838 of the Income and Corporation Taxes Act 1988 shall apply in relation to this sub-paragraph as they apply in relation to subsection (1) of that section; and
 (d) a person shall be treated as generating electricity at any time if he is the operator of plant or equipment which at that time—
 (i) is generating or capable of generating electricity; or
 (ii) is not capable of generating electricity only by reason of the repair or testing of the plant or equipment.

Exemptions from section 4 of the Act
    3.—(1)  Subject to the provisions of paragraph (3) and articles 4 and 5 below, exemption is granted—
 (a) from section 4(1)(a) of the Act to persons of the classes specified in Schedule 2; and
 (b) from section 4(1)(c) of the Act to persons of the classes specified in Schedule 3.

    (2)  A person shall be treated as falling within any class specified in Schedule 2 or Schedule 3 notwithstanding that he generates electricity or, as the case may be, supplies electricity to premises in circumstances other than those specified in the description of that class if the generation or, as the case may be, the supply of electricity in those circumstances would, if taken on its own, be such that—
 (a) that person would fall within another class in Schedule 2 or, as the case may be, Schedule 3; and
 (b) the exemption granted to persons of that other class had not ceased to be in force.

    (3)  No person shall be regarded as falling within any of the classes specified in Schedule 2 for as long as he is the holder of a licence under section 6(1)(a) of the Act, or within any of the classes specified in Schedule 3 for as long as he is the holder of a licence under, as the case may be, section 6(1)(c) or (2) of the Act.

Conditions on exemptions
    4.—(1)  The exemptions granted by this Order are subject to compliance with the conditions specified in paragraphs (2) to (4) below.

    (2)  Any person who falls within Class C in Schedule 2 shall have notified the Director before 1st July 1990 of—
 (a) his name and address;
 (b) the location of each generating station at which he generated electricity on 31st March 1990; and
 (c) the declared net capacity of each such generating station,
and if the declared net capacity of any generating station notified to the Director is increased, or if any such person generates electricity at a generating station at which he was not generating electricity on 31st March 1990, he shall notify the Director forthwith of the increase in the declared net capacity or, as the case may be, the location of that generating station and its declared net capacity.

    (3)  Any person who falls within Class E in Schedule 3 shall have notified the Director before 1st July 1990 of—
 (a) his name and address;
 (b) the address of each of the premises to which he was supplying electricity or making the supply of electricity available on 31st March 1990; and
 (c) the aggregate of the maximum power which he could have made available on 31st March 1990 to the premises to which he was supplying electricity or making the supply of electricity available on that date (whether or not that amount of power was consumed on that date).

    (4)  If a name or address notified to the Director pursuant to paragraph (2)(a) or (3)(a) above ceases to be correct the person in question shall notify the Director forthwith of the change of name or address.

    (5)  For the purposes of this article the address of a company shall be the address of its registered office and the address of any other person shall be the address of his principal office.

Circumstances in which exemptions cease to be in force
    5.    The exemptions granted by this Order shall cease to be in force—
 (a) in relation to any person falling within any of the classes specified in Schedule 2 if that person—
 (i) is granted a licence under section 6(1)(a) of the Act; or
 (ii) does not comply with such of the conditions specified in article 4 above as are applicable to the class within which that person falls;
 (b) in relation to any person falling within any of the classes specified in Schedule 3 if that person—
 (i) is granted a licence under, as the case may be, section 6(1)(c) or (2) of the Act; or
 (ii) does not comply with such of the conditions specified in article 4 above as are applicable to the class within which that person falls; and
 (c) in relation to persons falling within Class C in Schedule 2 or Classes B or E in Schedule 3, in the circumstances specified in paragraphs C.1 in Schedule 2 and B.1 and E.1 in Schedule 3 respectively.

Revocation
    6.    The Electricity (Class Exemptions from the Requirement for a Licence) Order 1990^[7], the Electricity (Class Exemptions from the Requirement for a Licence) (Amendment) Order 1994^[8], the Electricity (Class Exemptions from the Requirement for a Licence) (Amendment) (No. 2) Order 1994^[9] and the Electricity (Class Exemptions from the Requirement for a Licence) Order 1995^[10] are hereby revoked.

Tim Eggar

Minister for Industry and Energy, Department of Trade and Industry

27th March 1995

George Kynoch

Parliamentary Under-Secretary of State, The Scottish Office

27th March 1995

[1] 1989 c. 29. back

[2] 1971 c. 61; section 1 was substituted by section 24 of the Oil and Gas (Enterprise) Act 1982 (c. 23). back

[3] 1988 c. 1. back

[4] 1985 c. 6; section 258 was inserted by section 21 of the Companies Act 1989 (c. 40). back

[5] 1988 c. 52; section 192(1) was amended by the Road Traffic Act 1991 (c. 40), Schedule 4, paragraphs 78(1) and (2). back

[6] 1985 c. 6; section 736 was substituted by section 144(1) of the Companies Act 1989 (c. 40). back

[7] S.I. 1990/193, amended by S.I. 1994/1070 and S.I. 1994/1683. back

[8] S.I. 1994/1070. back

[9] S.I. 1994/1683. back

[10] S.I 1995/588. back

Explanatory Note