Utilities Bill - continued        House of Lords
PART IV, AMENDMENT OF THE ELECTRICITY ACT 1989 - continued
Duties of electricity distributors - continued

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Power to recover expenditure.     46. - (1) Section 19 of the 1989 Act (power to recover expenditure) is amended as follows.
 
      (2) In subsection (1) for "a public electricity supplier", "supplier" and "supply of electricity" there is substituted respectively "an electricity distributor", "distributor" and "connection".
 
      (3) For subsection (2) there is substituted-
 
 
    "(2) The Secretary of State may, after consultation with the Authority, make provision by regulations for entitling an electricity distributor to require a person requiring a connection in pursuance of section 16(1) to pay to the distributor, in respect of any expenses reasonably incurred in providing any electric line or electrical plant used for the purpose of making the connection, such amount as may be reasonable in all the circumstances if-
 
 
    (a) the connection is required within the prescribed period after the provision of the line or plant; and
 
    (b) a person ("the initial contributor") has made a payment to the distributor in respect of those expenses, the line or plant having been provided for the purpose of making a connection to any premises or distribution system as required by that person."
      (4) In subsection (3) for "a public electricity supplier" there is substituted "an electricity distributor."
 
      (5) In subsection (4) for the words from "maintaining" to the end there is substituted "continuing to provide it".
 
Power to require security.     47. - (1) Section 20 of the 1989 Act (power to require security) is amended as follows.
 
      (2) For subsection (1) there is substituted-
 
 
    "(1) Subject to the following provisions of this section, an electricity distributor may require any person who requires a connection in pursuance of section 16(1) to give him reasonable security for the payment to him under section 19 in respect of the provision of any electric line or electrical plant.
 
      (1A) If a person fails to give any security required under subsection (1), or the security given has become invalid or insufficient, and he fails to provide alternative or additional security, the electricity distributor may if he thinks fit-
 
 
    (a) if the connection has not been made, refuse to provide the line or plant for so long as the failure continues; or
 
    (b) if the connection is being maintained, disconnect the premises or distribution system in question."
      (3) In subsection (3), for "a public electricity supplier" and "supplier" (in each place) there is substituted respectively "an electricity distributor" and "distributor".
 
      (4) Subsections (2) and (4) shall cease to have effect.
 
Additional terms of connection.     48. For section 21 of the 1989 Act (additional terms of connection) there is substituted-
 
 
"Additional terms of connection.     21. An electricity distributor may require any person who requires a connection in pursuance of section 16(1) above to accept in respect of the making of the connection-
 
    (a) any restrictions which must be imposed for the purpose of enabling the distributor to comply with regulations under section 29;
 
    (b) any terms which it is reasonable in all the circumstances for that person to be required to accept; and
 
    (c) without prejudice to the generality of paragraph (b), any terms restricting any liability of the distributor for economic loss resulting from negligence which it is reasonable in all the circumstances for that person to be required to accept."
Special agreements with respect to connection.     49. For section 22 of the 1989 Act (special agreements with respect to supply) there is substituted-
 
 
"Special agreements with respect to connection.     22. - (1) Notwithstanding anything in sections 16 to 21, a person who requires a connection in pursuance of section 16(1) may enter into an agreement with the electricity distributor (referred to in this Part as a "special connection agreement") for the making of the connection on such terms as may be agreed by the parties.
 
    (2) So long as a special connection agreement is effective, the rights and liabilities of the parties shall be those arising under the agreement and not those provided for by sections 16 to 21.
 
      (3) Nothing in subsection (2) prevents the giving of a notice under section 16A(1) requiring a connection to be made as from the time when a special connection agreement ceases to be effective."
 
General duties of electricity distributors.     50. In section 9 of the 1989 Act (general duties of licence holders), for subsection (1) there is substituted-
 
 
    "(1) It shall be the duty of an electricity distributor-
 
 
    (a) to develop and maintain an efficient, co-ordinated and economical system of electricity distribution;
 
    (b) to facilitate competition in the supply and generation of electricity."
 
Electricity code and metering
The electricity code.     51. - (1) In section 24 of the 1989 Act (the public electricity supply code), for "supply of electricity by public electricity suppliers" there is substituted "distribution and supply of electricity".
 
      (2) For Schedule 6 to the 1989 Act (the public electricity supply code) there is substituted the provisions of Schedule 4.
 
 
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