# The Electricity from Non-Fossil Fuel Sources (Scotland) Saving Arrangements Order 2001, Note: Explanatory note


(This note is not part of the Order)
This Order makes provision for the saving and modification of arrangements which have been made by public electricity suppliers in compliance with section 32 of the Electricity Act 1989 (“the Electricity Act”) to coincide with the licence split under the Utilities Act 2000. It also saves section 32 and modifies section 33 of the Electricity Act.
Articles 1 and 2 provide for the citation, commencement, extent and interpretation of the Order. The Order comes into force on 1st October 2001.
Articles 3 and 4 oblige the supply successor companies in Scotland to make arrangements which replace arrangements which were made in the past by public electricity suppliers in compliance with section 32 of the Electricity Act and which secure the availability of a certain amount of generating capacity from non-fossil fuel generating stations. The amount of generating capacity which is to be made available to the supply successor companies is the same as that which was required to be made available to the public electricity suppliers. The arrangements made by the supply successor companies must be in place by 1st October 2001.
Article 5 imposes agreements on operators of non-fossil fuel generating stations who had an arrangement making electricity available to public electricity suppliers in compliance with certain orders under section 32 of the Electricity Act, but who have not entered into replacement arrangements with the supply successor companies. There is a provision for the Secretary of State to resolve disputes as to the terms of such imposed agreements.
In article 6 provision is made for the possibility that supply successor companies may reorganise their company structure or transfer their electricity supply business etc. In such circumstances the Secretary of State may transfer their obligations under this Order to a third party.
Article 7 saves section 32 of the Electricity Act for the purposes of this Order.
Article 8 provides that the obligations of the supply successor companies under this Order are to be treated as relevant requirements for the purposes of Part I of the Electricity Act thus enabling the Gas and Electricity Markets Authority to take enforcement action.
Article 9 makes various amendments to section 33 of the Electricity Act with effect from 1st October 2001. The amendments to section 33 are largely to enable payments of fossil fuel levy to be paid to the supply successor companies instead of to public electricity suppliers. No changes are to be made to the way in which the payment of the fossil fuel levy is to be calculated. Various consequential amendments are also made which largely replace references to public electricity suppliers with references to the supply successor companies. There is provision for regulations made under section 33 of the Electricity Act to make transitional provision to allow for payments of fossil fuel levy to continue to be made to public electricity suppliers where they were entitled to such payments before the amendments to section 33 were made by this Order.

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Source: https://www.legislation.gov.uk/uksi/2001/3269/note (the official version)
Page: https://openlegislation.uk/electricity-from-non-fossil-fuel-sources-scotland-saving-arrangements-order-2001/note
Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.