Explanatory note

This Order amends Schedule 3 to the Electricity (Class Exemptions from the Requirement for a Licence) Order 2001 (S.I. 2001/3270) to add a new class exemption from the requirement of section 4(1)(bb) of the Electricity Act 1989 (which prohibits the distribution of electricity without a licence). The new class exemption applies to those who are engaged in the activity of offshore distribution, that is those who distribute electricity generated by a generating station in offshore waters usually for the purposes of conveying it onshore.

Distributors who fall within the Class D exemption will be subject to the condition in article 4(4)(a) of the 2001 Order. This Order adds a further condition such that the exemption will not apply to offshore distributors who convey electricity directly to domestic premises.

A regulatory impact assessment is available and can be obtained from Katherine Watson, Department of Trade and Industry, 1 Victoria Street, London SW1H 0ET. Copies have been placed in the libraries of both Houses of Parliament.