Explanatory note

This Order amends the Electricity (Class Exemptions from the Requirement for a Licence) Order 1990 (“the Principal Order”). The Principal Order grants exemption fromthe requirements of section 4(1)(a) of the Electricity Act 1989 (which prohibits the generation of electricity without a licence) and section 4(1)(c) of that Act (which prohibits the supply of electricity to premises without a licence) to persons of various classes set out in Schedules 2 and 3 respectively to the Principal Order.

Article 2 of this Order revokes the requirement under article 4 of the Principal Order whereby most persons falling within any of the classes set out in Schedule 2 and generating electricity at a generating station with a declared net capacity exceeding 200 kilowatts had to notify the Secretary of State of their names and addresses.

Article 4 of this Order re-enacts Class A in Schedule 2. Persons fall within this Class if they do not provide more than a specified amount of electrical power from any one generating station disregarding power provided as described in the Class. Article 4 makes the following changes of substance: the amount of electrical power that may be provided from any one generating station by persons falling within the Class is raised, in the case of a generating station with a declared net capacity of less than 100 megawatts, to 50 megawatts disregarding power temporarily provided in excess of 50 megawatts due to specified circumstances; in calculating the power provided, power provided to consumers who supply electricity to others in circumstances specified in the description of Class B in Schedule 3 can now be disregarded.

Article 5 of this Order re-enacts Class B and paragraph B.1 in Schedule 3. Previously, persons fell within Class B in Schedule 3 if they did not supply electricity other than that supplied to their premises by the holder of a licence under section 6(1)(c) or 6(2) of the Electricity Act 1989 (or other electricity in limited circumstances as described in the Class). The exemption granted to any such person ceased to be in force if electricity supplied by the holder of a licence under section 6(2) of the Electricity Act 1989 was supplied by the exempt supplier in specified circumstances. Article 5 makes the following changes of substance: the electricity that a person falling within this Class may supply is extended to electricity supplied to him by a person in circumstances falling within Class C in Schedule 3 (“Class C electricity”); Class C electricity and electricity supplied by the holder of a licence under section 6(2) of the Electricity Act 1989 can now be supplied in the specified circumstances subject to conditions as to the location of the premises supplied and limits on the total amounts supplied; the exemption ceases to be in force in relation to an exempt supplier who supplies Class C electricity other than in the specified circumstances.

Article 6 of this Order revokes the proviso to Class C and paragraph C.2 in Schedule 3 whereby, to fall within this Class, a generator had to supply, or have a reasonable expectation when starting supply that he would supply, not less than 51% of the output of each of his generating stations to consumers meeting conditions specified in Class C. The description of such consumers in sub-paragraphs 2(a) and (b) of Class C is amended to include consumers who supply electricity to others in circumstances specified in the description of Class B in Schedule 3.