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PUBLIC ELECTRICITY SUPPLY LICENCE for MIDLANDS ELECTRICITY Plc

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PUBLIC ELECTRICITY SUPPLY LICENCE for MIDLANDS ELECTRICITY plc Midlands Electricity - Special - Draft 6 - Section 11 Draft May 1999 PREFACE 1. This document illustrates the licence obligations which presently apply under the Public Electricity Supply Licence held by Midlands Electricity plc. The document comprises conditions contained in the original Licence granted on 26 March 1990, subsequent modifications made to that Licence and proposed further modifications arising from the purchase of Midlands’ supply business by National Power plc. 2. Some of the detailed price control formulae have been omitted from this document in order to make it of a more manageable size. The formulae are to each PES licence and should be regarded as unchanged from the form in which they are generally available. 3. OFFER wishes to make clear that this is not legally binding document but has been produced as a consultation working copy of Midlands Electricity plc’s PES licence. Midlands Electricity - Special - Draft 6 - Section 11 Draft May 1999 TABLE OF CONTENTS Page PART I. TERMS OF THE LICENCE 1 PART II. THE CONDITIONS 2 INTERPRETATION 2 1. Definitions and interpretation 2 SECTION A. DISTRIBUTION BUSINESS OBLIGATIONS 21 2. Availability of Distribution Business resources 21 3. Distribution Charge restriction conditions: definitions 23 3A. Restriction of distribution charges 29 3B. Restriction of distribution charges: adjustments 37 3C. Information to be provided to the Director in connection with the distribution charge restriction conditions 38 3D. Distribution Business allowance in respect of security costs 43 3E. Duration of distribution charge restriction conditions 47 4. Prohibition of cross-subsidies 49 5. Basis of charges for use of system, connection to system and Metering and Data Services: requirements for transparency 50 5A. Non-discrimination in the provision of use of system, connection to system and Metering and Data Services 56 5B. Requirement to offer terms for use of system, connection and the provision of Metering and Data Services 58 5C. Requirement to offer Standard Terms of Connection 65 5D. Functions of the Director 67 6. Distribution system planning standard and quality of service 69 7. Security and Safety of Supplies Enquiry Service 70 8. Provision of information about theft, damage and meter interference 72 9. Provisions relating to the connection of metering equipment 73 10. Generation Security Standard 75 11. Distribution Code 78 12. The Metering Point Administration Service and the Master Registration Agreement 82 13. Establishment of a Data Transfer Service 85 Midlands Electricity - Special - Draft 6 - Section 11 Draft May 1999 14. Restriction on use of certain information and independence of the Distribution Business 88 14A. Appointment of Compliance Officer 93 15. Requirement to facilitate competition in the Generation and Supply of Electricity 97 16. Compliance with the Grid Code 98 17. Security arrangements 99 18. Conditions affecting customers’ statutory rights 100 19. Licensee's apparatus on customers’ side of meter 102 20. Provision of distribution services for persons who are of pensionable age or disabled or chronically sick 103 21. Code of practice on procedures with respect to site access 104 22. Standards of performance for the Distribution Business 105 23. Distribution Business complaint handling procedure 106 24. Preparation, review of and compliance with customer service codes 107 25. Record of and report on Distribution Business performance 109 26. Publication of supply numbers 111 27. Relations with the Relevant Consumers’ Committee 112 28. Health and safety of employees 113 SECTION B. SUPPLY BUSINESS OBLIGATIONS 114 Sub-Section (1) General Obligations 114 29. Supply charge restriction conditions: definitions 114 29A. Restriction on Supply Charges 119 29B. Restriction of supply charges: adjustments 127 29C. Information to be provided to the Director in connection with the supply charge restriction conditions 128 29D. Supply Business allowance in respect of security costs 131 29E. Duration of supply charge restriction conditions 135 30. Prohibition of cross-subsidies and of discrimination in electricity sale contracts 137 31. Prohibition of discrimination in supply 138 31A. Duration of discrimination conditions 144 32. Obligation on economic purchasing 146 33. Tariffs 149 34. Arrangements for informing customers on revocation of Licence 150 Midlands Electricity - Special - Draft 6 - Section 11 Draft May 1999 35. Basis of charges for top-up and standby supplies or sales of electricity, exempt supply services and prepayment meter services: requirements for transparency 152 35A. Non-discrimination in the provision of top-up or standby supplies or sales of electricity, exempt supply services and prepayment meter services 155 35B. Requirement to offer terms for top-up and standby, exempt supply services and prepayment meter services 157 35C. Arrangements in respect of Standard Terms of Connection 161 35D. Functions of the Director 162 36. Provision of information to customers about security and safety of supplies 164 37. Procedures for the detection and prevention of theft, damage and meter interference 166 38. Agreements for the provision of meters 167 39. Generation Security Standard 168 40. The Master Registration Agreement 171 41. Restriction on use of certain information 172 42. Compliance with the Grid Code 173 43. Security arrangements 174 44. Pooling and Settlement Agreement 175 45. Conditions of supply affecting customers’ statutory rights 176 46. Code of practice on payment of bills and guidance for dealing with customers in difficulty 177 47. Provision of supply services for persons who are of pensionable age or disabled or chronically sick 179 48. Code of practice on procedures with respect to site access 181 49. Supply Business standards of performance 182 50. Efficient use of electricity 183 51. Supply Business complaint handling procedure 185 52. Preparation, review of and compliance with customer service codes 186 53. Record of and report on Supply Business performance 188 54. Information given to Designated Customers 190 55. Publication of information to customers 191 56. Relations with the Relevant Consumers’ Committee 192 57. Health and safety of employees 193 58. Designated Premises 194 59. Terms for supply of electricity incompatible with Licence Conditions 196 Midlands Electricity - Special - Draft 6 - Section 11 Draft May 1999 60. Limitation on requirements for termination fees 197 61. Revision of the Contract Terms Conditions 198 Sub-Section (2) The Contract Terms Conditions 202 62. Designated Supply Contracts 202 63. Contractual terms 204 64. Notification of terms 206 65. Security deposits 208 66. Termination of contracts on notice 210 67. Termination of contracts in specified circumstances 212 68. Assignment of outstanding charges 214 69. Modification of provisions under Conditions 66 and 68 216 70. Marketing of electricity to Designated Customers 218 SECTION C. COMMON OBLIGATIONS 224 71. Separate accounts for Separate Businesses 224 72. Restriction on activity and financial ring fencing 230 73. Availability of resources 233 74. Credit rating of Licensee 237 75. Restriction on own generation capacity 238 76. Restrictions relating to Embedded Generation 245 77. Disposal of relevant assets 246 78. Provision of information to the Director 251 79. Payment of fees 253 80. Arrangements for provision of services by the Agent 255 Schedule 1. Description of authorised area 257 Schedule 2. Terms as to revocation 259 Schedule 3A. Supplementary provisions of the distribution charge restriction conditions262 Part A. Principles for Attribution 262 Part B. EHV premises 264 Part C. Excluded services 265 Part D. Regulated distribution unit categories 269 Part E. Calculation of factor in respect of distribution losses 271 Schedule 3B. Supplementary provisions of the supply charge restriction conditions 275 Part A. Principles for Attribution 275 Midlands Electricity - Special - Draft 6 - Section 11 Draft May 1999 Part B. Excluded services 278 Midlands Electricity - Special - Draft 6 - Section 11 Draft May 1999 PART I. TERMS OF THE LICENCE 1. The Secretary of State, in exercise of the power conferred by Section 6(1)(c), and Section 6(6) and Section 7 of the Electricity Act 1989 (hereinafter referred to as the “Act”) hereby licenses Midlands Electricity plc (registered in England and Wales under number 2366928) as public electricity supplier to supply electricity to any premises in the authorised area designated in Schedule 1 below during the period specified in paragraph 3 below, subject to the Conditions set out in Part II and Schedule 3 below (hereinafter referred to as the “Conditions”). 2. The Conditions are subject to modification or amendment in accordance with their terms or with Sections 11, 14 or 15 of the Act. This Licence is further subject to the terms as to revocation specified in Schedule 2. 3. This Licence shall come into force on the transfer date appointed under Section 65 of the Act and unless revoked in accordance with the provisions of Schedule 2 shall continue until determined by not less than 25 years’ notice in writing given by the Secretary of State to the Licensee, such notice not to be served earlier than a date being 10 years after the Licence comes into force. JOHN WAKEHAM 26th March 1990 Secretary of State for Energy Midlands Electricity - Special - Draft 6 - Section 11 Draft May 1999 PART II. THE CONDITIONS INTERPRETATION Condition 1. Definitions and interpretation
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