Legislation – Energy Act 2023

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Part 7Market reform and consumer protection

Multi-purpose interconnectors

205Licence required for operation of multi-purpose interconnector

(1)

Section 4 of the Electricity Act 1989 (prohibition on unlicensed supply etc of electricity) is amended in accordance with subsections (2) to (5).

(2)

In subsection (1)—

(a)

omit the “or” after paragraph (d);

(b)

after paragraph (d) insert—

“(da)

participates in the operation of a multi-purpose interconnector; or”.

(3)

After subsection (3C) insert—

“(3CA)

A reference in this Part to participating in the operation of a multi-purpose interconnector is a reference to—

(a)

co-ordinating and directing the flow of electricity into or through a multi-purpose interconnector; or

(b)

making a multi-purpose interconnector available for use for the conveyance of electricity,

and a person is not to be regarded as participating in the operation of an interconnector or as participating in the transmission of electricity by reason only of activities constituting participation in the operation of a multi-purpose interconnector.”

(4)

In subsection (3D), after “(3C)(b)” insert “and (3CA)(b)”.

(5)

After subsection (3E) insert—

“(3EA)

In this Part “multi-purpose interconnector” means so much of an electric line or other electrical plant as—

(a)

is situated at a place within the jurisdiction of Great Britain; and

(b)

subsists for both—

(i)

the conveyance of electricity (whether in both directions or in only one) between Great Britain and a place within the jurisdiction of another country or territory, and

(ii)

the conveyance of electricity generated in offshore waters (whether in both directions or in only one) between a generating station and a substation or another generating station, or between two or more substations.”

(6)

In section 5 of the Electricity Act 1989 (exemptions from prohibition), in subsection (1), after “(d)” insert “, (da)”.

(7)

Section 6 of the Electricity Act 1989 (licences authorising supply, etc) is amended in accordance with subsections (8) to (10).

(8)

In subsection (1)—

(a)

omit the “or” after paragraph (e);

(b)

after paragraph (e) insert—

“(ea)

a licence authorising a person to participate in the operation of a multi-purpose interconnector (“an MPI licence”); or”.

(9)

After subsection (2A) insert—

“(2AA)

The same person may not be the holder of an MPI licence and the holder of a licence falling within any of paragraphs (a) to (e) of subsection (1).”

(10)

After subsection (6D) insert—

“(6E)

An MPI licence authorising participation in the operation of a multi-purpose connector—

(a)

must specify the multi-purpose interconnector or multi-purpose interconnectors in relation to which participation is authorised;

(b)

may limit the forms of participation in the operation of a multi-purpose interconnector which are authorised by the licence.”

(11)

In section 64(1) of the Electricity Act 1989 (interpretation of Part 1), at the appropriate place insert—

““multi-purpose interconnector” has the meaning given by section 4(3EA);”.