<PAGE> 1
ANNEXURE
--------
CONDITION 1A: POWER TO BRING CONDITIONS INTO EFFECT
---------------------------------------------------
1. The Conditions to which this paragraph applies shall not come into
effect until the Secretary of State has made a direction specifying a
date on which they come into effect and served a copy of the direction
on the Licensee (but the date so specified may be the same date as that
on which this Condition comes into effect or if later that on which a
copy of the direction is so served).
2. The Secretary of State may make more than one direction under paragraph
1, and may bring different Conditions or parts of Conditions into force
at different times.
3. The Conditions to which paragraph 1 applies are:
Condition 4C (Prohibition of cross-subsidies and of discrimination
in selling electricity)
Condition 15A (Balancing and Settlement Code and NETA Implementation)
Condition 15B (Change Co-ordination for NETA)
Condition 15C (Pooling and Settlement Agreement Run-off)
4. The Conditions to which this paragraph applies (or parts of them) shall
cease to have effect on such date as is specified in a direction made
by the Secretary of State pursuant to this paragraph, a copy of which
has previously been served on the Licensee (but the date so specified
may be
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<PAGE> 2
the same date as that on which this Condition comes into effect or if
later that on which a copy of the direction is so served).
5. The Secretary of State may make more than one direction under paragraph
4, and may direct that different Conditions or parts of Conditions
cease to have effect on different dates.
6. The Conditions to which paragraph 4 applies are:
Condition 1 (Interpretation)
Condition 4 (Prohibition of cross-subsidies and of discrimination
in electricity sale contracts)
Condition 10 (Generation Security Standard)
Condition 15 (Pooling and Settlement Agreement)
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<PAGE> 3
CONDITION 4C: PROHIBITION OF CROSS-SUBSIDIES AND OF DISCRIMINATION IN SELLING
-----------------------------------------------------------------------------
ELECTRICITY
-----------
1. The Licensee shall procure that no Separate Business gives any
cross-subsidy to, or receives any cross-subsidy from, any other
business of the Licensee or an affiliate or related undertaking of the
Licensee (whether or not a Separate Business).
2. The Licensee shall not, and shall procure that any affiliate or related
undertaking of the Licensee shall not, sell or offer to sell
electricity to any one purchaser or person seeking to become a
purchaser on terms as to price which are materially more or less
favourable than those on which it sells or offers to sell electricity
to comparable purchasers. For these purposes regard shall be had to the
circumstances of the sale to such purchasers including (without
limitation) volumes, load factors, conditions of interruptibility and
the dates and durations of the relevant agreements.
3. For the purposes of paragraph 2, references to selling or sale of
electricity:
(a) do not include sale by way of supply to premises;
(b) include entering into or disposing of the benefit of a
contract, which has (or taken together with any other
arrangement has) the commercial effect of selling electricity,
by conferring rights or obligations (including rights or
obligations by way of option) in relation to or by reference
to the sale, purchase or delivery of electricity at any time
or the price at which electricity is sold or purchased at any
time,
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<PAGE> 4
and "purchaser", "purchasing" and "purchase" shall be construed
accordingly.
4. This Condition or parts of it shall not come into effect until the date
specified in a direction to that effect made pursuant to paragraph 1 of
Condition 1A.
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<PAGE> 5
CONDITION 15A: BALANCING AND SETTLEMENT CODE AND NETA IMPLEMENTATION
--------------------------------------------------------------------
1. The Licensee shall be a party to the BSC Framework Agreement and shall
comply with the BSC.
2. The Licensee shall comply with the programme implementation scheme
established in accordance with paragraph 3 as modified from time to
time in accordance with paragraph 5.
3. The programme implementation scheme shall be a scheme designated by the
Secretary of State setting out the steps, including without limitation
steps as to the matters referred to in paragraph 4, to be taken (or
procured) by the Licensee (and/or by Authorised Electricity Operators)
which are, in the Secretary of State's opinion, appropriate in order to
give full and timely effect to:
(a) the modifications made to this licence and to the licences of
Authorised Electricity Operators by the Secretary of State
pursuant to the power vested in him under section 15A of the
Act;
(b) any conditions imposed by any exemption from the requirement
to hold any such licence; and
(c) the matters envisaged by such modifications and conditions.
4. The programme implementation scheme may include provisions, inter alia,
(a) to secure or facilitate the amendment of any of the Core
Industry Documents;
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<PAGE> 6
(b) to secure that any systems, persons or other resources
employed in the implementation of the Pooling and Settlement
Agreement may be employed in the implementation of the BSC;
(c) for the giving of the indemnities against liabilities to which
parties to the Pooling and Settlement Agreement may be
exposed;
(d) for securing the co-ordinated and effective commencement of
implementation of and operations under the BSC, including the
testing, trialling and start-up of the systems, processes and
procedures employed in such implementation and employed by
Authorised Electricity Operators and others in connection with
such operations;
(e) for co-ordinating the administration and implementation of the
BSC and the Pooling and Settlement Agreement;
(f) for the Licensee to refer to the Director for determination,
whether of its own motion or as provided in the programme
implementation scheme, disputes, as to matters covered by the
scheme, between persons who are required (by conditions of
their licences or exemptions) or who have agreed to comply
with the scheme or any part of it; and
(g) for the Director, in the circumstances set out in the scheme,
to require that consideration be given to the making of a
proposal to modify the BSC and, if so, to require the making
of such proposal in the manner set out in the scheme, such
power to be exercisable at any time within the period of 12
months after the Effective Time (as defined in Condition 15C).
5. (a) The Secretary of State may at any time direct, in accordance
with the provisions of the programme implementation scheme,
that the programme implementation scheme be modified in the
manner set out in the direction, in order to give (or continue
to give) full and
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<PAGE> 7
timely effect to the matters described in paragraph 3.
(b) The Secretary of State shall serve a copy of any such
direction on the Licensee, and thereupon the Licensee shall
comply with the scheme as modified by the direction.
6. If there is any conflict between the requirements contained in the
programme implementation scheme pursuant to paragraph 4(a) and imposed
on the Licensee by paragraphs 2 and 5 of this Condition, and those
imposed on the Licensee by any other Condition, the provisions of this
Condition shall prevail.
7. Without prejudice to paragraph 2, the Licensee shall use all reasonable
endeavours to do such things as may be requisite and necessary in order
to give full and timely effect to the modifications made to this
Licence as determined by the Secretary of State pursuant to the power
vested in him under section 15A of the Act (and to give full and timely
effect to the matters envisaged by such modifications).
8. In this Condition:
"BSC" means the balancing and settlement
code required to be in place, pursuant
to the Transmission Licence granted to
the Transmission Company, as from time
to time modified.
"BSC Framework Agreement" means the agreement of that title, in
the form approved by the Secretary of
State, by which the BSC is made
contractually binding between the
parties to that agreement, as from
time to time amended, with the consent
of
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<PAGE> 8
the Secretary of State.
"Core Industry Documents" mean those documents which
a. in the Secretary of State's opinion
are central industry documents
associated with the activities of
the Licensee and Authorised
Electricity Operators, the subject
matter of which relates to or is
connected with the BSC or the
balancing and settlement
arrangements, and
b. have been so designated by the
Secretary of State.
9. This Condition or parts of it shall not come into effect until the date
specified in a direction to that effect made pursuant to paragraph 1 of
Condition 1A.
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<PAGE> 9
CONDITION 15B: CHANGE CO-ORDINATION FOR NETA
--------------------------------------------
1. The Licensee shall take all reasonable measures to secure and implement
(consistently with the procedures applicable under or in relation to
those documents as modified or replaced from time to time), and shall
not take any steps to prevent or unduly delay, changes to the Core
Industry Documents to which it is party (or in relation to which it
holds rights in respect of amendment), such changes being changes which
are appropriate in order to give full and timely effect to and/or in
consequence of any modification which has been made to the BSC.
2. In paragraph 1, Core Industry Documents has the meaning given in
paragraph 8 of Condition 15A.
3. This Condition or parts of it shall not come into effect until the date
specified in a direction to that effect made pursuant to paragraph 1 of
Condition 1A.
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<PAGE> 10
CONDITION 15C: POOLING AND SETTLEMENT AGREEMENT RUN-OFF
-------------------------------------------------------
1. The Licensee shall continue to be a party to and a pool member under,
and shall comply with, the Pooling and Settlement Agreement for the
purposes of Run-off, until the provisions of the BSC relating to
Run-Off become effective.
2. This Condition shall apply to the extent that the Licensee was party to
and a pool member under the Pooling and Settlement Agreement
immediately prior to the Effective Time.
3. In this Condition:
"Effective Time" means the start of the first period
for trading under the BSC as
determined by the Secretary of State.
"Run-off" means the determination and settlement
(including by way of reconciliation)
of amounts due arising under or in
connection with the Pooling and
Settlement Agreement in relation to
settlement periods up to and including
the settlement period immediately
prior to the Effective Time (including
the resolution of disputes in respect
thereof).
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<PAGE> 11
4. This Condition or parts of it shall not come into effect until the date
specified in a direction to that effect made pursuant to paragraph 1 of
Condition 1A.
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<PAGE> 12
MODIFICATIONS TO THE PUBLIC ELECTRICITY SUPPLY LICENCE
ISSUED TO YORKSHIRE ELECTRICITY GROUP PLC
SCHEDULE
--------
The following modifications shall apply on and after 1 September 2000.
1. In the definition of "Permitted Purpose" in Condition 1, sub-paragraph
(b) shall be deleted; the words "(other than the Generation Business)"
shall be inserted after the words "any business conducted or activity
carried on" in sub-paragraph (c); and the word "and" shall be
substituted for the word "to" in the first line of sub-paragraph (d).
2. In Condition 6, paragraph 1 shall be deleted and replaced by the
following new paragraph 1:
"The Licensee shall procure that, with effect from 1 September 2000,
the Generation Business is held as a Separate Business by an affiliate
of the Licensee in which the Licensee has no shareholding interest of
any kind, whether direct or indirect".
3. New Condition 12C (the terms of which are set out at Annex A hereto)
shall be inserted immediately after existing Condition 12B.
<PAGE> 13
ANNEX A
-------
CONDITION 12C. REQUIREMENT TO FACILITATE COMPETITION IN THE GENERATION AND
--------------------------------------------------------------------------
SUPPLY OF ELECTRICITY
----------------------
1. The Licensee shall, in pursuance of its authorised activities, conduct
its Distribution Business so as to facilitate:
(a) competition in the generation of electricity; and
(b) competition in the supply of electricity within the authorised
area.
<PAGE> 14
[SEAL]
To: DEPARTMENT OF
TRADE AND INDUSTRY
1 Victoria Street
London SW1H 0ET
Enquiries
020-7215 5000
Direct line 020-7215 2779
Fax 020-7630 9570
Our ref
Your ref
Date 7 August 2000
MODIFICATIONS TO PUBLIC ELECTRICITY SUPPLY LICENCE
Whereas :
(a) In this document, the Act means the Electricity Act 1989 as amended;
(b) holds a licence ("the Licence") under section 6 of the Act subject to
the Conditions contained in the Licence;
(c) the Secretary of State considers that it is necessary or expedient to
modify these Conditions for the purpose set out in section 15A of the
Act; and
(d) the Secretary of State has consulted on the modifications which he
proposes as required of section 15A of the Act;
Now in exercise of the power conferred upon him by section 15A of the
Act the Secretary of State hereby modifies the Conditions contained in
the Licence in the manner specified in the attached schedule and the
Conditions shall be modified on the 7th August 2000 .
Yours sincerely
DAVID HALLDEARN
For and on behalf of
the Secretary of State for Trade and Industry
<PAGE> 15
ANNEX A
Condition 18: Code of practice on the payment of bills and guidance for dealing
with customers in difficulty
Condition 18A: Code of practice on the use of prepayment meters
Condition 19: Record of and report on performance
Condition 19A: Provision of services for persons who are blind or deaf
Condition 20: Provision of services for persons who are of pensionable age or
disabled or chronically sick
Condition 22: Efficient use of electricity
Condition 23A: Preparation, review of and compliance with customer service codes
<PAGE> 16
CONDITION 18: CODE OF PRACTICE ON PAYMENT OF BILLS AND GUIDANCE FOR
-------------------------------------------------------------------
DEALING WITH CUSTOMERS IN DIFFICULTY
-------------------------------------
1. The Licensee shall, no later than 1 September 2000, prepare and submit
to the Director for his approval a code of practice concerning the
payment of electricity bills by its Domestic Customers, including
appropriate guidance for the assistance of such customers who, through
misfortune or inability to cope with electricity supplied on credit
terms, may have difficulty in paying such bills.
2. The code of practice shall include procedures by which the Licensee can
distinguish, so far as reasonably practicable, customers in difficulty
(the "relevant customers") from others in default and can:
(a) provide general information as to how relevant customers might
reduce their bills in the future by the more efficient use of
electricity;
(b) where such a facility is available, accept in payment for
electricity supplied sums which are deducted at source from
social security benefits payable to relevant customers;
(c) detect failures by relevant customers to comply with
arrangements entered into for paying by instalments charges
for electricity supplied;
(d) make such arrangements as to take into account the customers'
ability to comply with them;
(e) ascertain, with the assistance of any information provided by
other persons or organisations, the ability of customers to
comply with such arrangements; and
(f) provide for customers who have failed to comply with such
arrangements, or procure for them the provision of, a
prepayment meter (where safe and practicable to do so).
3. In formulating the procedures referred to at paragraph 2 the Licensee
shall have particular regard:
(a) to the purpose of avoiding in so far as is practicable, the
disconnection of premises occupied by relevant customers
otherwise than following compliance by the Licensee with such
procedures; and
(b) to the interests of relevant customers who are of pensionable
age or disabled or chronically sick and to the purpose of
avoiding, in so far as is practicable, the disconnection of
premises occupied by such customers during the winter months
of each year,
<PAGE> 17
and the procedures shall be designed for the achievement of such
purposes.
4. This Condition is subject to the provisions of Condition 23A.
<PAGE> 18
CONDITION 18A: CODE OF PRACTICE ON THE USE OF PREPAYMENT METERS
---------------------------------------------------------------
1. The Licensee shall, no later than 1 September 2000, prepare and submit
to the Director for his approval a code of practice concerning the use
of prepayment meters by its Domestic Customers, including appropriate
guidance for the assistance of its prepayment meter customers who wish
to take a supply of electricity on other terms.
2. The code of practice shall set out the Licensee's policy on the
installation of prepayment meters and shall include procedures by which
the Licensee will where appropriate:
(a) provide general information for customers on the operation,
usefulness, advantages and disadvantages of prepayment meters,
including details of:
(i) token outlets and card or key charging facilities
within the areas supplied with electricity by the
Licensee;
(ii) the actions available to customers on the malfunction
of a prepayment meter or a prepayment card or key;
and
(iii) any standards of performance (and associated
payments) applying to the Licensee in relation to
premises supplied by it through prepayment meters;
(b) arrange for the calibration of any prepayment meter provided
in accordance with sub-paragraph 2(f) of Condition 18 so as to
take into account, having due regard to all information
available to the Licensee (including any information provided
by other persons or organisations), the relevant customer's
ability to pay any charges due from him under the arrangements
contemplated by that Condition in addition to the other
charges lawfully being recovered through the prepayment meter;
(c) arrange for the re-calibration of prepayment meters:
(i) in the case of an individual customer, at the
conclusion of any such arrangements applying to that
customer; and
(ii) generally, following changes in the price at which
the Licensee supplies electricity to prepayment meter
customers; and
<PAGE> 19
(d) remove prepayment meters, setting out the timescale and the
conditions under which such removal might be expected to take
place.
3. This Condition is subject to the provisions of Condition 23A.
<PAGE> 20
CONDITION 19: RECORD OF AND REPORT ON PERFORMANCE
-------------------------------------------------
1. The Licensee shall keep a record of its general operation of the
arrangements mentioned in Conditions 18, 18A, 19A, 20, 20A, 21, 22 and
23 and if the Director so directs in writing, of its operation of any
particular cases specified, or of a description specified, by him.
2. The Licensee shall keep a statistical record of its performance in
relation to the provision of electricity supply to its Domestic
Customers under the terms of contracts or in accordance with tariffs
fixed under Section 18 of the Act.
3. The Licensee shall, from time to time as required by the Director,
provide to the Director and to the Relevant Consumers' Committee such
of the information contained in the records prepared in accordance with
paragraphs 1 and 2 as the Director may request in writing.
4. As soon as is reasonably practicable after the end of each calendar
year, the Licensee shall submit to the Director and the Relevant
Consumers' Committee a report dealing with the matters mentioned in
paragraphs 1 and 2 in relation to that year and shall:
(a) publish the report so submitted in such manner as will in the
reasonable opinion of the Licensee secure adequate publicity
for it; and
(b) send a copy of it free of charge to any person requesting one,
except that, in performing its obligations under sub-paragraphs (a) and
(b), the Licensee shall exclude from the report such information as
appears to it to be necessary or expedient to ensure that, save where
they consent, individual Domestic Customers referred to therein cannot
readily be identified.
5. The report shall be presented, so far as is reasonably practicable, in
a standard form designated by the Director for the purposes of this
Condition.
<PAGE> 21
CONDITION 19A: PROVISION OF SERVICES FOR PERSONS WHO ARE BLIND OR DEAF
----------------------------------------------------------------------
1. The Licensee shall, no later than 1 September 2000, prepare and submit
to the Director for his approval a code of practice detailing the
special services the Licensee will make available for its Domestic
Customers who are disabled by virtue of being blind or partially
sighted, or deaf or hearing impaired.
2. The code of practice shall include arrangements by which the Licensee
will, on request, in each case free of charge:
(a) make available to its blind and partially sighted customers,
by telephone or other appropriate means, information
concerning the details of any bill relating to the supply of
electricity to them and a facility for enquiring or
complaining in respect of any such bill or any service
provided by the Licensee; and
(b) make available to its deaf and hearing impaired customers,
being in possession of appropriate equipment, facilities to
assist them in enquiring or complaining about any bill
relating to the supply of electricity to them or any service
provided by the Licensee.
3. This Condition is subject to the provisions of Condition 23A.
<PAGE> 22
CONDITION 20: PROVISION OF SERVICES FOR PERSONS WHO ARE OF PENSIONABLE
----------------------------------------------------------------------
AGE OR DISABLED OR CHRONICALLY SICK
-----------------------------------
1. The Licensee shall, no later than 1 September 2000, prepare and submit
to the Director for his approval a code of practice detailing the
special services the Licensee will make available for Domestic
Customers who are of pensionable age or disabled or chronically sick.
The code of practice shall include arrangements by which the Licensee
will on request of such customers, where reasonably practicable and
appropriate, and in each case free of charge:
(a) provide special controls and adaptors for electrical
appliances and meters (including prepayment meters) and
reposition meters;
(b) provide special means of identifying persons acting on behalf
of the Licensee;
(c) give advice on the use of electricity;
(d) send bills in respect of the supply of electricity to a
customer to any person who is willing to be sent such bills
and is nominated by that customer (without prejudice, however,
to the right of the Licensee to send such bills both to the
customer and to the nominated person where that appears
appropriate to the Licensee); and
(e) provide, where neither the customer nor anyone living with him
is able to read the electricity meter, for the meter to be
read once in each quarter and for the customer to be informed
of the readings so obtained.
2. The code of practice shall further include arrangements whereby the
Licensee will:
(a) establish a list (the "Priority Service Register") of
customers who, by virtue of being of pensionable age or
disabled or chronically sick, require:
(i) information and advice in respect of the matters set
out at paragraph 1; or
(ii) advance notice of planned interruptions to the supply
of electricity;
<PAGE> 23
(b) notify its customers at least once each year of the existence
of the Priority Service Register and of how they may be
included on it; and
(c) maintain the Priority Service Register, comprising the
relevant details of each customer who requests (or, in the
case of a customer supplied by a private electricity supplier,
whose supplier requests) his inclusion on it and:
(i) give to those of its own customers so registered, in
respect of the matters set out at paragraph 1; and
(ii) give to all customers so registered, in respect of
interruptions to the supply of electricity,
such information and advice as may be appropriate and is of
such nature as shall be set out in the code of practice.
3. This Condition is subject to the provisions of Condition 23A.
<PAGE> 24
CONDITION 22: EFFICIENT USE OF ELECTRICITY
------------------------------------------
1. The Licensee shall, no later than 1 September 2000, prepare and submit
to the Director for his approval a code of practice setting out the
ways in which the Licensee will make available to customers such
guidance on the efficient use of electricity, in each case given or
prepared by a suitably qualified person, as will, in the opinion of the
Licensee enable customers to make informed judgments on measures to
improve the efficiency with which they use the electricity supplied to
them.
2. The code of practice shall include, but shall not be limited to:
(a) the preparation and making available free of charge to any
customer who requests it of a statement, in a form approved by
the Director, setting out information and advice for the
guidance of customers in the efficient use of electricity
supplied to them;
(b) the making of arrangements for maintaining sources from which
customers may obtain further information about the efficient
use of electricity supplied to them, including the maintenance
of a telephone information service; and
(c) the preparation and making available free of charge to any
customer who requests it of a statement or statements of
sources (to the extent that the Licensee is aware of the same)
outside the Licensee's organisation from which customers may
obtain additional information or assistance about measures to
improve the efficiency with which they use the electricity
supplied to them, such statement or statements to include
basic information which is publicly available on financial
assistance towards the costs of such measures available from
central or local Government or through bodies in receipt of
financial support from Government in connection with measures
to promote the efficiency of energy use.
3. Where the Director (who may have regard to the need for economy,
efficiency and effectiveness before giving directions under this
paragraph) gives directions to do so, the Licensee shall:
(a) review and prepare a revision of the code of practice;
<PAGE> 25
(b) take steps to bring to the attention of customers information
on the efficient use of electricity supplied to them; and
(c) send to each customer a copy of any information in relation to
the efficient use of electricity published by the Director
pursuant to Section 48 of the Act
in such manner and at such times as will comply with those directions.
4. This Condition is subject to the provisions of Condition 23A.
<PAGE> 26
CONDITION 23A: PREPARATION, REVIEW OF AND COMPLIANCE WITH CUSTOMER
------------------------------------------------------------------
SERVICE CODES
-------------
1. This Condition applies to any code of practice required to be prepared
by the Licensee pursuant to Conditions 18, 18A, 19A, 20, 20A, 22 and 23
of this Licence.
2. In first preparing such a code the Licensee shall, prior to submitting
that code to the Director, consult the Relevant Consumers' Committee
and shall have regard to any representations made by the committee
about such code or the manner in which it is likely to be operated.
3. Where before the expiry of 30 days of the Licensee first submitting
such code to the Director for his approval the Director notifies the
Licensee that the Director considers the code is not sufficient for the
purposes of meeting the requirements of this Licence, the Licensee
shall forthwith make such changes as the Director may require.
4. The Licensee shall, whenever requested to do so by the Director, review
such code and the manner in which it has been operated, with a view to
determining whether any modification should be made to it or to the
manner of its operation.
5. In carrying out any such review the Licensee shall consult the Relevant
Consumers' Committee and shall have regard to any representations made
by it about such code or the manner in which it is likely to be or (as
the case may be) has been operated.
6. The Licensee shall submit any revision of such code which, after
consulting the Relevant Consumers' Committee in accordance with
paragraph 5, it wishes to make, to the Director for his approval and
following his approval in writing shall then revise the code.
7. The Licensee shall:
(a) as soon as practicable following the preparation of any code
or any revision made to it send to the Director and the
Relevant Consumers' Committee a copy of such code or such
revision (in each case in the form approved by the Director);
<PAGE> 27
(b) at least once in each year, draw the attention of those of its
customers to whom such code applies to the existence of the
code and of each substantive revision of it and to the means
by which they may inspect a copy of such code in its latest
form; and
(c) give or send free of charge a copy of such code (as from time
to time revised) to any person who requests it.
8. No changes may be made to any code otherwise than in accordance with
the foregoing procedures.
9. The Licensee shall ensure, so far as reasonably practicable, that it
complies with such arrangements or procedures (as the case may be) as
are contained in or described by any code to which this Condition
applies and approved by the Director or any revision to such code
approved by the Director.
<PAGE> 28
ANNEX B
Condition 35: Contractual terms
Condition 37: Security deposits
<PAGE> 29
CONDITION 35: CONTRACTUAL TERMS
-------------------------------
1. Where the Licensee offers to supply electricity to Domestic Premises
under Designated Supply Contracts, it shall have available forms of
Designated Supply Contract which provide for the payment of charges for
electricity supplied to Domestic Premises:
(a) by prepayment through a prepayment meter;
(b) by different methods, including:
(i) by cash, at such places and to such persons as are
reasonable in all the circumstances; and
(ii) by cheque, and
(c) at a reasonable range of different intervals, including:
(i) paying twice-monthly or fortnightly or more
regularly, such sums as agreed;
(ii) paying monthly a predetermined sum; and
(iii) paying quarterly in arrears.
2. Before entering into any contract to supply electricity to Domestic
Premises (other than through a prepayment meter) the Licensee shall
inform the customer of and offer to enter into Designated Supply
Contracts which comply with sub-paragraphs 1(b) and (c).
3. The Licensee shall process all requests for a supply of electricity to
Designated Premises without undue preference or undue discrimination.
4. The Licensee shall send copies of each of the forms of Designated
Supply Contract (as revised from time to time) under which it supplies
or offers to supply electricity:
<PAGE> 30
(a) on receipt of a request, to any person; and
(b) not later than the date on which it first offers to supply
electricity under each such form of Designated Supply Contract
(or revision thereof), to the Director.
5. The Licensee shall prepare, in respect of each form of Designated
Supply Contract:
(a) a document which sets out an accurate summary of the Principal
Terms of that form of Designated Supply Contract; and
(b) particulars of inducements offered to any person entering into
such a contract which might reasonably be expected materially
to influence the decision whether or not to enter into it.
6. The Licensee shall publish the documents and particulars referred to at
paragraph 5 in a manner that will in the opinion of the Licensee secure
adequate publicity for them, and shall send copies of them to the
Director no later than the date on which they are published.
<PAGE> 31
CONDITION 37: SECURITY DEPOSITS
-------------------------------
1. The Licensee shall not, in respect of the supply of electricity under
any Designated Supply Contract, require a deposit:
(a) where the customer is prepared to be supplied through a
prepayment meter and it is reasonably practicable in all the
circumstances (including in particular the risk of loss or
damage) for the Licensee to provide such a meter; or
(b) where it is otherwise unreasonable in all the circumstances to
do so.
2. Any deposit required of a Designated Customer may be 1 1/2 times the
value of the average quarterly consumption of electricity reasonably
expected at the relevant premises, or more if that is reasonable in all
the circumstances.
3. Where the Licensee requires a deposit from a Designated Customer it
shall at the same time inform that customer of the effect of paragraphs
5 and 7.
4. Where the Licensee holds any deposit for more than a month, it shall
pay the customer simple interest on the deposit at the rate which is
from time to time equivalent to the base rate of Barclays Bank Plc or,
if there is no such base rate, not less than such base rate as the
Director may designate for the purposes thereof.
5. Subject to paragraph 6, any deposit given by a Designated Customer
shall be repaid (with interest) by the Licensee:
(a) within 14 days where, in the previous 12 months, the customer
has paid all charges for electricity supplied within 28 days
of each written demand made; or
(b) as soon as reasonably practicable, and in any event within 1
month, where the Licensee has ceased to supply the customer
and the customer has paid all charges for electricity
supplied.
6. Sub-paragraph 5(a) shall not apply where it is reasonable in all the
circumstances for the Licensee to retain the deposit.
<PAGE> 32
7. Any dispute arising under this Condition between the Licensee and a
Designated Customer may be referred by either party to the Director.
The Director shall determine any such dispute, following such practice
and procedure as he considers appropriate.
<PAGE> 33
THE SCHEDULE
MODIFICATIONS TO PUBLIC ELECTRICITY SUPPLY LICENCE
1. At the end of Conditions 1, 4, 10 and 15, the following additional
paragraph is inserted:
"This Condition or parts of it shall cease to have effect on the date
specified in a direction to that effect made pursuant to paragraph 4 of
Condition 1A".
2. The following Conditions, the provisions of which are set out in the
Annexure, are inserted:
Condition 1A (Power to Bring Conditions into Effect)
Condition 4C (Prohibition of cross-subsidies and of discrimination
in selling electricity)
Condition 15A (Balancing and Settlement Code and NETA Implementation)
Condition 15B (Change Co-ordination for NETA)
Condition 15C (Pooling and Settlement Agreement Run-off).
3. In Condition 1 the following new definition is inserted:
"the Director" means, until both section 1(1) and
section 3(1) of the Utilities Act 2000
are brought into force, the Director
General of Electricity Supply, but
thereafter the Authority established by
section 1(1) of the Utilities Act 2000.
Seeboard plc Public Electricity Supply Licence
