Explanatory note

With effect from 1st October 2001 (“the appointed day”) section 29 of the Utilities Act 2000 (“the Utilities Act”) substitutes a new section 5 of the Electricity Act 1989 (“the Electricity Act”) replacing the existing order-making powers which relate to the granting of exemptions from the prohibitions in section 4 of the Electricity Act. The Secretary of State intends to use her order-making powers under the new section 5(1) of the Electricity Act to grant exemptions. It is, however, necessary to provide that any exemption order made under the old section 5 of the Electricity Act is, with effect from the appointed day, treated as being one made under the new section 5. This will ensure that the Secretary of State can deal with any such orders in accordance with her powers under the new section 5.

Regulations 4 and 5 ensure continuity in relation to the provision of electric lines and electrical plant. Where such lines and plant are being provided, either pursuant to section 16 of the Electricity Act (prior to its amendment by section 44 of the Utilities Act) or section 22 of the Electricity Act (prior to its substitution by section 49 of the Utilities Act) they are, with effect from the appointed day, to be regarded as connections either made pursuant to section 16 of the Electricity Act (as amended by section 44 of the Utilities Act) or pursuant to a special agreement under section 22 of the Electricity Act (as substituted by section 49), as appropriate.

Regulation 6 provides that the obligations in paragraphs 1(1) and 3(1) of Schedule 9 to the Electricity Act will, after the appointed day, apply to all those who may, by virtue of the substitution from the appointed day, of section 5 of the Electricity Act, be authorised by an exemption to generate, transmit, distribute or supply electricity without holding a licence.