Utilities Bill -
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Schedule 7
 
  
BY THE LORD McINTOSH OF HARINGEY
 
     Page 127, line 41, at end insert-- 
 ("PART II 
 SECRETARY OF STATE'S LICENSING SCHEMEs 
 Existing electricity supply licences 
     4I.--(1) This paragraph applies to any holder of an existing supply licence under section 6(1)(c) or (2) ("the supplier") who has made a transfer scheme under paragraph 2 which has been approved by the Secretary of State.
 
    (2)  As soon as practicable after the date specified in the Secretary of State's direction under paragraph 2(1) and in any event before the day on which section 6(2) of the 1989 Act (as substituted by section 29) comes into force, the Secretary of State shall make a scheme providing--
    (a)  for the supplier's existing supply licence to have effect as mentioned in paragraph 1(2); and
    (b)  if the supplier has nominated an associate or associates for either or both of the purposes of paragraph 1(6), for either or both of his existing generation and transmission licences to have effect as mentioned in paragraph 1(5).
    (3)  In making a scheme under this paragraph, the Secretary of State shall have regard to the provisions of the supplier's transfer scheme.
 
    (4)  In this paragraph "existing", in relation to a licence, means in force immediately before the passing of this Act.
 
    4J.--(1) The Secretary of State shall as soon as practicable after the passing of this Act make a scheme providing for existing licences under section 6(1)(c) which--
    (a)  are held by a person whose activities include both of those mentioned in paragraph 1(1); and
    (b)  are not the subject of a scheme under paragraph 4I,
to have effect on and after such date as the scheme may specify as if it were--
    (a)  a distribution licence and a supply licence, each granted to the holder of the existing licence;
    (b)  a distribution licence; or
    (c)  a supply licence.
    (2)  In this paragraph "existing", in relation to a licence, means in force immediately before the date mentioned in sub-paragraph (1).
 
    4K.--(1) The Secretary of State shall as soon as practicable after the passing of this Act make a scheme, in relation to existing licences under section 6(1)(c) other than licences which--
    (a)  are the subject of a scheme under paragraph 4I; or
    (b)  fall within paragraph 4J(1),
providing for each such licence to have effect on and after such date as the scheme may specify as if it were a supply licence under section 6(1)(d).
 
    (2)  In this paragraph "existing", in relation to a licence, means in force immediately before the date mentioned in sub-paragraph (1).
 
    4L.--(1) The Secretary of State shall as soon as practicable after the passing of this Act make a scheme, in relation to existing licences under section 6(2), providing for each such licence to have effect on and after such date as the scheme may specify as if it were--
    (a)  a supply licence under section 6(1)(d); or
    (b)  an exemption from section 4(1)(c) of the 1989 Act granted under section 5 of that Act (exemptions from prohibition).
    (2)  In this paragraph "existing", in relation to a licence, means in force immediately before the date mentioned in sub-paragraph (1).
 
    4M.--(1) Subject to sub-paragraph (2), a scheme under paragraph 4I, 4J, 4K or 4L shall secure that each condition which by virtue of section 32(1) is a standard condition for the purposes of licences of the appropriate type is incorporated in any licence to be treated by virtue of the scheme as a supply licence or a distribution licence and, where the scheme makes the provision mentioned in paragraph 4I(2)(b), in any licence to be treated as a generation licence or as a transmission licence.
 
    (2)  Such a scheme may provide that each licence, and in the case of a scheme under paragraph 4L each exemption, which is to be treated as granted by virtue of the scheme (including both the terms and conditions of the licence or exemption which are derived from the existing licence and, in the case of a licence, the standard conditions which would otherwise be incorporated by virtue of sub-paragraph (1)) shall have effect with--
    (a)  such incidental, consequential and supplementary amendments as appear to the Secretary of State to be necessary or expedient; and
    (b)  such other amendments (if any) as may be agreed between the Secretary of State and the holder of the existing licence from which the licence or exemption is derived.
    (3)  Such a scheme may--
    (a)  make such transitional provision as appears to the Secretary of State to be necessary or expedient; and
    (b)  make different provision for different cases or classes of cases determined by, or in accordance with, the provisions of the scheme.
    (4)  As soon as practicable after making such a scheme the Secretary of State shall publish, as respects each different case or class of case--
    (a)  the text of each licence which is to be treated as a licence granted by virtue of the scheme; and
    (b)  in the case of a scheme under paragraph 4L, the text of any exemption which is to be treated as granted by virtue of the scheme.
    (5)  Any text so published shall be treated as authoritative unless the contrary is shown.
 
 Existing generation and transmission licences 
     4N.--(1) The Secretary of State may, before the day on which section 29 comes into force, make one or more schemes for securing (subject to sub-paragraph (2)) that, on and after that day, the standard conditions which by virtue of section 32(1) are standard conditions for the purposes of licences of the appropriate type are incorporated in each generation licence and each transmission licence which is in force immediately before that day.
 
    (2)  A scheme under this paragraph may provide that the terms and conditions of any existing licence to which it relates (including the standard conditions which would otherwise be incorporated by virtue of sub-paragraph (1)) shall have effect with--
    (a)  such incidental, consequential and supplementary amendments as appear to the Secretary of State to be necessary or expedient; and
    (b)  such other amendments (if any) as may be agreed between the Secretary of State and the holder of the licence.
    (3)  A scheme under this paragraph may--
    (a)  make such transitional provision as appears to the Secretary of State to be necessary or expedient; and
    (b)  make different provision for different cases or classes of cases determined by, or in accordance with, the provisions of the scheme.
    (4)  As soon as practicable after making such a scheme the Secretary of State shall publish, as respects each different case or class of case, the text on the commencement of section 29 of each licence to which the scheme relates as it has effect by virtue of the scheme.
 
    (5)  Any text so published shall be treated as authoritative unless the contrary is shown.
 
 Existing gas licences 
     4O.--(1) The Secretary of State may, before the day on which section 80(2) comes into force, make one or more schemes for securing (subject to sub-paragraph (2)) that on and after that day the standard conditions which by virtue of section 80(2) are standard conditions for the purposes of gas licences of any type are incorporated in each gas licence of that type which is in force immediately before that day.
 
    (2)  A scheme under this paragraph may provide that the terms and conditions of any existing licence to which it relates (including both the terms and conditions of that licence and the standard conditions which would otherwise be incorporated by virtue of sub-paragraph (1)) shall have effect with--
    (a)  such incidental, consequential and supplementary amendments as appear to the Secretary of State to be necessary or expedient; and
    (b)  such other amendments (if any) as may be agreed between the Secretary of State and the holder of the licence.
    (3)  Such a scheme may--
    (a)  make such transitional provision as appears to the Secretary of State to be necessary or expedient; and
    (b)  make different provisions for different cases or classes of cases determined by, or in accordance with, the provisions of the scheme.
    (4)  As soon as practicable after making a scheme under this paragraph, the Secretary of State shall publish, as respects each different case or class of case, the text on the commencement of section 80(2) of each gas licence to which the scheme relates.
 
    (5)  Any text so published shall be treated as authoritative unless the contrary is shown.
 
 Effect of licensing schemes 
     4P.--(1) On the day on which a scheme under this Part of this Schedule comes into operation, the licences to which it relates shall have effect as provided for by the scheme.
 
    (2)  The modification under paragraph 4M(2), 4N(2) or 4O(2) of part of what would otherwise be a standard condition of--
    (a)  a licence to be treated as granted by virtue of a scheme under paragraph 4I, 4J or 4K; or
    (b)  a licence to which a scheme under paragraph 4L, 4N or 4O relates,
shall not prevent any other part of the condition which is not so modified being regarded as a standard condition for the purposes of Part I of the 1989 Act or Part I of the 1986 Act, as the case may be.
 
 Provision of information by licence holders 
     4Q.--(1) It shall be the duty of each holder of a licence under the 1986 Act to provide the Secretary of State with all such information and other assistance as he may require for the purposes of or in connection with the exercise of any function conferred on him by paragraph 4O in relation to such licences.
 
    (2)  It shall be the duty of each holder of a licence under the 1989 Act to provide the Secretary of State with all such information and other assistance as he may require for the purposes of or in connection with the exercise of any function conferred on him by this Part of this Schedule in relation to such licences.
 
 Consultation by Secretary of State 
     4R. The Secretary of State shall not exercise any function conferred on him by this Part of this Schedule except after consultation with--
    (a)  the Authority; and
    (b)  such holders of licences under the 1986 Act or such holders of licences under the 1989 Act as he considers appropriate.")
 
     Page 128, line 7, at end insert-- 
 ("Investigations being carried out under the 1986 Act 
     .--(1) This paragraph applies to any matter--
    (a)  being investigated by the Director General of Gas Supply under section 31 of the 1986 Act (duty to investigate certain matters) immediately before the repeal by this Act of that section;
    (b)  being investigated by the Gas Consumers' Council under section 32 of the 1986 Act immediately before the commencement of section 22(1) above;
    (c)  being investigated by that Council under section 32A of the 1986 Act immediately before the repeal by this Act of that section;
    (d)  being investigated by that Council under section 33 of the 1986 Act (power to investigate certain matters) immediately before the commencement of section 23(1) above.
    (2)  If the matter being investigated is a matter which appears to the Council to be a matter which is or amounts to a complaint to which section 32 of the 1986 Act (as substituted by section 22(1) above) applies, the Council shall treat the matter as if it were a complaint referred to it under that section.
 
    (3)  In any other case the Authority shall either--
    (a)  agree with the Council that the Council is to investigate the matter under section 33 of the 1986 Act (as substituted by section 23(1) above); or
    (b)  make such further investigations of the matter, and take such action, as it considers appropriate.
    (4)  Where the Council or the Authority is required by virtue of sub-paragraph (2) or (3) to investigate a matter, it may treat anything done by the Director General of Gas Supply or the Gas Consumers' Council in investigating that matter as if done for the purposes of its own investigation.
 
    (5)  The Director General of Gas Supply and the Gas Consumers' Council shall give the Authority and the Council such information or assistance as may be necessary to enable them to of carry out their functions under this paragraph.
 
 Investigations being carried out under the 1989 Act 
     .--(1) This paragraph applies to any matter--
    (a)  being investigated by the Director General of Electricity Supply or a consumers committee under section 45 of the 1989 Act (investigation of enforcement matters) immediately before the repeal by this Act of that section;
    (b)  being investigated by a consumers' committee under section 46 of the 1989 Act (duty of consumers' committees to investigate certain matters) immediately before the commencement of section 22(2) above.
    (2)  If the matter being investigated is a matter which appears to the Council to be a matter which is or amounts to a complaint to which section 46 of the 1989 Act (as substituted by section 22(2) above) applies, the Council shall treat the matter as if it were a complaint referred to it under that section.
 
    (3)  In any other case the Authority shall either--
    (a)  agree with the Council that the Council is to investigate the matter under section 46A of the 1989 Act (as inserted by section 23(2) above); or
    (b)  make such further investigations of the matter, and take such action, as it considers appropriate.
    (4)  Where the Council or the Authority is required by virtue of sub-paragraph (2) or (3) to investigate a matter, it may treat anything done by the Director General of Electricity Supply or a consumers' committee in investigating that matter as if done for the purposes of its own investigation.
 
    (5)  The Director General of Electricity Supply and the consumers' committees shall give the Authority and the Council such information or assistance as may be necessary to enable them to of carry out their functions under this paragraph.")
 
     Page 128, line 7, at end insert-- 
 ("First financial years of Authority and Council 
     .--(1) In this paragraph "the body" means the Authority or the Council.
 
    (2)  If the period beginning with the day on which the body is established and ending with the next 31st March is six months or more, the first financial year of the body is that period.
 
    (3)  If the period mentioned in sub-paragraph (2) is less than six months, the first financial year of the body is the period beginning with the day on which the body is established and ending with 31st March in the following year.
 
 First forward work programmes of Authority and Council 
     . The Authority's first forward work programme required by section 4(1) shall relate to the financial year following its first financial year.
 
    .--(1) The Council's first forward work programme required by section 4(1) shall be published within the period of three months beginning with the day on which the Council is established.
 
    (2)  That forward work programme shall relate to the Council's plans for the period beginning with the day on which it is published and ending with the last day of the Council's first financial year (and section 4 shall apply accordingly).
 
 Last annual reports of the Directors 
     .--(1) After the abolition of the offices of Director General of Gas Supply and Director General of Electricity Supply, any duty of either Director to make an annual report, in relation to any calendar year for which such a report has not been made, shall be carried out by the Authority.
 
    (2)  The period between the abolition of those offices and the end of the preceding calendar year (if less than 12 months) shall be treated as the calendar year for which the last annual reports are required.
 
    (3)  If that period is nine months or more, the Authority shall make the last annual reports as soon as practicable after the end of that period.
 
    (4)  If that period is less than nine months the last annual reports shall be made no later than the first report of the Authority under section 5(1).
 
    (5)  In this paragraph "annual reports" means reports required by section 39(1) of the 1986 Act and section 50(1) of the 1989 Act.
 
 Last annual report of the Gas Consumers' Council 
     .--(1) After the abolition of the Gas Consumers' Council, any duty of the Gas Consumers' Council to make an annual report, in relation to any calendar year for which such a report has not been made, shall be carried out by the Council.
 
    (2)  The period between the abolition of the Gas Consumers' Council and the end of the preceding calendar year (if less than 12 months) shall be treated as the calendar year for which the last annual report is required.
 
    (3)  If that period is nine months or more, the Council shall make the last annual report as soon as practicable after the end of that period.
 
    (4)  If that period is less than nine months the last annual report shall be made no later than the first report of the Council under paragraph 6 of Schedule 2.
 
    (5)  In this paragraph "annual report" means a report required by section 41 of the 1986 Act.
 
 
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