UNITED KINGDOM STATUTORY INSTRUMENT
2020 No. 146
Electricity
The Energy Act 2004 (Assistance for Areas with High Distribution Costs) (Amendment) Order 2020
Made 11th February 2020
Laid before Parliament 13th February 2020
Coming into force 5th March 2020
The Secretary of State makes the following Order in exercise of the powers conferred by sections 184(1) and 192(4)(a) of the Energy Act 2004.
In accordance with section 184(7) of that Act the Secretary of State has consulted such persons as the Secretary of State considered appropriate.
S-1
Citation and commencementCitation and commencement
1. This Order may be cited as the Energy Act 2004 (Assistance for Areas with High Distribution Costs) (Amendment) Order 2020 and comes into force on 5th March 2020.
S-3
Insertion of article 5A (amount of Shetland assistance amount)Insertion of article 5A (amount of Shetland assistance amount)
3. After article 5 insert—
“Amount of Shetland assistance amount
The Shetland assistance amountrequired to be paid by authorised transmitters to relevant distributors under the scheme, in respect of the year commencing on 1st April 2021, is £27,000,000 (twenty seven million pounds).”.
S-4
Omission of articles 6 and 7 (modifications to licences granted to authorised suppliers and authorised distributors)Omission of articles 6 and 7 (modifications to licences granted to authorised suppliers and authorised distributors)
4. Omit article 6(modifications to licences granted to authorised suppliers) and article 7(modifications to licences granted to authorised distributors).
S-5
Insertion of articles 9 to 11 (amendment of the scheme)Insertion of articles 9 to 11 (amendment of the scheme)
5. After article 8 insert—
“Amendment of the scheme
The scheme is amended in relation to the year commencing on 1st April 2021 and subsequent years in accordance with the modifications to the conditions of licences described in articles 10 and 11.
Modifications to licences granted to authorised suppliers
1. The standard conditions of licences granted or treated as granted to authorised suppliers under section 6(1) of the Electricity Act 1989are modified as set out in Schedule 10.
2. The conditions which by virtue of section 33 of the Utilities Act 2000are the standard conditions for the purposes of licences granted to authorised suppliers after the date on which the Energy Act 2004 (Assistance for Areas with High Distribution Costs) (Amendment) Order 2020 comes into force are modified as set out in Schedule 10.
Modifications to licences granted to authorised transmitters
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 as set out in Schedules 11 to 13.
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 the date on which the Energy Act 2004 (Assistance for Areas with High Distribution Costs) (Amendment) Order 2020 comes into force are modified as set out in Schedules 11 to 13.”.
S-6
Omission of Schedules 2, 3, 4 and 5 (modifications to licences granted to authorised suppliers and authorised distributors)Omission of Schedules 2, 3, 4 and 5 (modifications to licences granted to authorised suppliers and authorised distributors)
6. Omit Schedule 2 (modifications to licences granted to authorised suppliers) and Schedules 3, 4 and 5 (modifications to licences granted to authorised distributors).
S-7
Insertion of Schedules 10 to 13 (modifications to licences granted to authorised suppliers and authorised transmitters)Insertion of Schedules 10 to 13 (modifications to licences granted to authorised suppliers and authorised transmitters)
7. After Schedule 9 insert—
“SCHEDULE 10
Article 10
Modifications to licences granted to authorised suppliers: modification of condition 15
1. Condition 15 (assistance for areas with high distribution costs scheme: payments to System Operator) is modified as follows.
2. In paragraph 15.3(a) (licensee’s duty to pay), after “the pence per kWh tariff” insert “, and from the Shetland pence per kWh tariff,”.
3. In paragraph 15.9 (definitions for condition)—
(a) after the definition of “Relevant Distributor” insert—
“Shetland pence per kWh tariff means the tariff calculated in accordance with paragraph 2A of standard condition C21 of the Transmission Licence.”,
(b) after the definition of “System Operator” insert—
“the pence per kWh tariff means the tariff calculated in accordance with paragraph 2 of standard condition C21 of the Transmission Licence.”.
SCHEDULE 11
Article 11
Modifications to licences granted to authorised transmitters: modification to condition C20
1. Condition C20 (assistance for areas with high distribution costs scheme: restriction on revenue) is modified as follows.
2. For paragraph 1 substitute—
“The licensee shall use its best endeavours to ensure that:
(a) in each relevant year beginning before 1 April 2021, the revenue derived by the licensee from the assistance for areas with high distribution costs scheme activity shall not exceed the assistance for areas with high distribution costs scheme amount for that relevant year as calculated in accordance with the following formula:
(b) in each relevant year beginning on or after 1 April 2021, the revenue derived by the licensee from the assistance for areas with high distribution costs scheme activity shall not exceed the assistance for areas with high distribution costs scheme amount for that relevant year as calculated in accordance with the following formula:
where
HBMt |
represents the assistance for areas with high distribution costs scheme amount in relation to the relevant year t. |
At |
represents the assistance amount in relation to the relevant year t. |
SAt |
represents the Shetland assistance amount in relation to the relevant year t. |
HBOCt |
represents the administration allowance in relation to the relevant year t. |
HBKt |
represents the correction amount in relation to the relevant year t.”. |
3. After paragraph 2 insert—
“For the purposes of paragraph 1 above, for the relevant year of the assistance for areas with high distribution costs scheme beginning on 1 April 2021, the Shetland assistance amount shall have the value specified in the Energy Act 2004 (Assistance for Areas with High Distribution Costs) Order 2005, and for each subsequent relevant year the Shetland assistance amount shall be derived from the following formula:
where
SAt-1 |
represents the Shetland assistance amount in relation to the relevant year t-1. |
RPIt |
has the meaning given in paragraph 2.”. |
4. In paragraph 5—
(a) in the definition of “assistance amount”, after “made pursuant to” insert “paragraph 1 of”,
(b) after the definition of “relevant year” insert—
““Shetland assistance amount” |
means the amount payable by the licensee... |
