The Energy Act 2004 (Assistance for Areas with High Distribution Costs) Order 2005

JurisdictionUK Non-devolved
CitationSI 2005/528
Year2005

2005 No. 528

ELECTRICITY

The Energy Act 2004 (Assistance for Areas with High Distribution Costs) Order 2005

Made 5th March 2005

Laid before Parliament 8th March 2005

Coming into force 1st April 2005

The Secretary of State, in exercise of the powers conferred upon her by section 184(l) of the Energy Act 20041, having consulted such persons as she considers appropriate, hereby makes the following Order:

Citation commencement and extent
S-1 Citation commencement and extent

Citation commencement and extent

1.—(1) This Order may be cited as the Energy Act 2004 (Assistance for Areas with High Distribution Costs) Order 2005 and shall come into force on 1st April 2005.

(2) This Order does not extend to Northern Ireland.

Interpretation
S-2 Interpretation

Interpretation

2. In this Order—

“deposited maps” means the maps numbered 1 to 10 prepared in duplicate, marked “The Energy Act 2004 (Assistance for Areas with High Distribution Costs) Order 2005” and deposited at the Department of Trade and Industry and at the office of the Gas and Electricity Markets Authority; and

“specified area” means the area of Scotland described in Schedule 1 to this Order and shown on the deposited maps.

Scheme to provide assistance to the specified area

Scheme to provide assistance to the specified area

S-3 There shall be a scheme to provide assistance for the specified...

3. There shall be a scheme to provide assistance for the specified area, in respect of the costs of distributing electricity within that area.

S-4 The scheme shall be implemented in the manner set out in the...

4. The scheme shall be implemented in the manner set out in the conditions of licences referred to in articles 6 to 8 below.

Amount of assistance in the first year of the scheme
S-5 Amount of assistance in the first year of the scheme

Amount of assistance in the first year of the scheme

5.—(1) The scheme shall commence on 1st April 2005.

(2) The total amount required to be paid by authorised transmitters to relevant distributors under the scheme referred to at article 3 above, in respect of the year commencing on 1st April 2005, is £41,950,000 (forty one million nine hundred and fifty thousand pounds).

Modifications to licences granted to authorised suppliers
S-6 Modifications to licences granted to authorised suppliers

Modifications to licences granted to authorised suppliers

6.—(1) The standard conditions of licences granted or treated as granted to authorised suppliers under section 6(1) of the Electricity Act 19892are modified by the insertion of the standard condition appearing in Schedule 2.

(2) The conditions which by virtue of section 33 of the Utilities Act 20003are the standard conditions for the purposes of licences granted to authorised suppliers after this Order comes into force are modified by the insertion of the standard condition appearing in Schedule 2.

Modifications to licences granted to authorised distributors
S-7 Modifications to licences granted to authorised distributors

Modifications to licences granted to authorised distributors

7.—(1) The standard conditions of licences granted or treated as granted to authorised distributors under section 6(1) of the Electricity Act 1989 are modified by the insertion of the standard conditions appearing in Schedules 3, 4 and 5.

(2) The conditions which by virtue of section 33 of the Utilities Act 2000 are the standard conditions for the purposes of licences granted to authorised distributors after this Order comes into force are modified by the insertion of the standard conditions appearing in Schedules 3, 4 and 5.

Modifications to licences granted to authorised transmitters
S-8 Modifications to licences granted to authorised transmitters

Modifications to licences granted to authorised transmitters

8.—(1) The standard conditions of licences granted or treated as granted to authorised transmitters under section 6(1) of the Electricity Act 1989 are modified by the insertion of the standard conditions appearing in Schedules 6, 7, 8 and 9.

(2) The conditions which by virtue of section 33 of the Utilities Act 2000 are the standard conditions for the purposes of licences granted to authorised transmitters after this Order comes into force are modified by the insertion of the standard conditions appearing in Schedules 6, 7, 8 and 9.

Mike O'Brien

Minister of State for Energy and E-Commerce,

Department of Trade and Industry

5th March 2005

SCHEDULE 1

Article 2

Description of Area

SCH-1.1

1. Aberdeen City local authority region.

SCH-1.2

2. Aberdeenshire local authority region.

SCH-1.3

3. Angus local authority region.

SCH-1.4

4. Argyll and Bute local authority region, except that part of the region around Cardross, Helensburgh, Craigendoran, Wester Auchdennan, Garelochhead, Kilcreggan, Cove, Rosneath, Shandon, Greenfield, Rhu, Whistlefield Hattonburn and Drumfad, Portincaple, Craggan and part of Arden delineated on maps 2 and 3 of the deposited maps.

SCH-1.5

5. In Clackmannan local authority region that part of the region encompassing Mount Stuart, Woodside, Upper Yets, Balliliesk Home Farm, Hillhead, Yetts o'Muckart, Naemoor, Balruddrie, Nether Moss, Mosspark, Pool of Muckhart, Drumburn, Middlehall, Westerhall, The Leys, Cowden Farm, Thorn Farm, Pathead Cottages, Blairhill Farm, Linnbank, Muirmill, Broom, Pitgober House, Middleton and Muckhart Mill delineated on maps 6, 7 and 8 of the deposited maps.

SCH-1.6

6. Dundee city local authority region.

SCH-1.7

7. That part of Fife local authority region around Wester Gospestry, delineated on maps 8 and 10 of the deposited maps.

SCH-1.8

8. Moray local authority region.

SCH-1.9

9. Na h-Eilean an lar local authority region.

SCH-1.10

10. In North Ayrshire region—

(a) The Isle of Arran;

(b) The Island of Great Cumbrae;

(c) The Island of Little Cumbrae;

(d) The Holy Isle; and

(e) Pladda Island.

SCH-1.11

11. Orkney Islands local authority region.

SCH-1.12

12. Perthshire and Kinross local authority region, except—

(a) that part of the region around Dumbarrow, Glentarkie and Pittuncarty delineated on map 10 of the deposited maps;

(b) that part of the region around Clunie Field delineated on map 10 of the deposited maps;

(c) that part of the region around East Feal, West Feal, Kinneston, West Bowhouse, Middle Bowhouse, East Bowhouse, Greenhead of Arnot, Little Arnot, Arnot Tower and Auchmuirbridge delineated on maps 9 and 10 of the deposited maps;

(d) that part of the region around West Mains of Kirkness, Middleburn, Manorleys and Riggwood delineated on map 9 of the deposited maps; and

(e) that part of the region around Easter Muirhead, Wester Muirhead, Newhall, Solsgirth House and Solsgirth Home Farm delineated on maps 6 and 7 of the deposited maps.

SCH-1.13

13. Shetland Islands local authority region.

SCH-1.14

14. Stirling local authority region, except that part of the region around Stirling, Bannockburn, Bridge of Allan, Cowie, the University of Stirling, Tough Hills, Cairnoch Hill, Dundaff Hill and Lewis Hill delineated on maps 4, 5 and 6 of the deposited maps.

SCH-1.15

15. In West Dunbartonshire local authority region—

(a) that part of the region around Gartocharn, Meikle Boturich, Easter Blairquhannan, The Merkins, Kilmarnock House, Blairlinnans and High Duncryne delineated on map 3 of the deposited maps;

(b) Inchmurrin Island;

(c) Creinch Island;

(d) Torrinch Island; and

(e) Aber Isle.

SCHEDULE 2

Article 6

Modifications to licences granted to authorised suppliers

Condition 30B. Assistance for areas with high distribution costs scheme: payment to system operator

Condition 30B. Assistance for areas with high distribution costs scheme: payment to system operator

SCH-2.1

1. Pursuant to the Energy Act 2004 (Assistance for Areas with High Distribution Costs) Order 2005 and in accordance with this condition the licensee shall, for the purpose of providing assistance with the high costs of distributing electricity incurred by a relevant distributor in the specified area, pay to the system operator the p/kWh tariff specified in accordance with the terms set out in standard condition C21 (Assistance for areas with high distribution costs scheme: payments from authorised suppliers) of the system operator’s transmission licence.

SCH-2.2

2. The p/kWh tariff to be paid by the licensee in accordance with paragraph 1 above shall be payable by the licensee on a quarterly basis in each financial year (or such other basis as may be specified in standard condition C21 (Assistance for areas with high distribution costs scheme: payments from authorised suppliers) of the system operator’s transmission licence) by the date indicated in each invoice received by the licensee from the system operator requiring such payment or, where no such date is indicated, within 28 days of the date of the invoice.

SCH-2.3

3. The licensee shall pay to the system operator an amount representing 8 per cent above the base interest rate of any payment not made to the system operator on the date specified pursuant to paragraph 2 calculated for each day after the date on which payment should have been made which interest payment shall be made by the licensee as soon as possible after, and in any event within 28 days, of the date of the invoice from the system operator for such payment.

SCH-2.4

4. The accounting statements to be prepared for the purposes of standard condition 52 (Regulatory Accounts) in respect of every financial year shall include the payments made to the system operator by the licensee referred to in paragraph 2 and where relevant paragraph 3 of this condition.

SCH-2.5

5. In this condition:

“base interest rate”

means, in respect of any day, the rate per annum which is equal to the base lending rate from time to time of Barclays Bank PLC as at the close of business on the immediately preceding business day.

“business day”

means any week day other than a Saturday on which banks are open for domestic business in the City of London.

“p/kWh”

means pence per kilowatt hour.

“relevant distributor”

...

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