UK Law and Practice Contributed by: Tom Sprange KC, Andrea Stauber, Martina Antosova and Lucy Pearson, King & Spalding International LLP
before construction of a new nuclear power station can begin (Section 45 of the Energy Act 2008). 4. Transmission Lines and Associated Facilities 4.1 Constructing and Operating Transmission Lines and Associated Facilities The Electricity Act 1989 is the principal law regulating transmission licences. As mentioned in 3.2 Obtaining Approvals to Construct and Operate Generation Facilities , Ofgem’s Electric- ity Licence Application Regulations set out the procedure for applying for a licence and the fee payable. 4.2 Obtaining Approvals to Construct and Operate Transmission Lines and Associated Facilities Unless an exemption applies, companies engaged in the transmission of energy must obtain a licence under the Electricity Act 1989. In the event of offshore transmission, there is a competitive tender process in place of the appli- cation procedure. For a standard licence application, an applicant must complete the form and send the relevant fee to Ofgem. As with all licence applications (including electricity generation licence appli- cations), Ofgem must act in accordance with its duties and objectives under the Electricity Act 1989 as well as with the laws listed in 3.2 Obtaining Approvals to Construct and Operate Generation Facilities . Once Ofgem has deemed that an application for an electricity transmission licence has been duly
made, it has six months within which to process the application. 4.3 Terms and Conditions Imposed on Approvals to Construct and Operate a Transmission Line and Associated Facilities Standard conditions have been determined under Section 137 (1) of the Energy Act 2004. In general terms, the licence ensures the provi- sion of an efficient, co-ordinated and economi- cal system and the facilitation of competition in supply and generation by including: • price controls that ensure a network company does not abuse its monopoly position; • restrictions on asset disposal; and • measures to ensure it can finance its func- tions. The licence is a public document and is available on Ofgem’s electronic public register. The Electricity Transmission Standard Licence Conditions (as updated in October 2024) are divided into the following sections: • A – Interpretation, Application and Payments; • B – General; • C – Not Used; • D – Transmission Owner Standard Condi- tions; and • E – Offshore Transmission Owner Standard Conditions. Sections A and B apply to all licences but the conditions in Sections D and E are “switched on” depending on whether the licensee is a TO or Offshore Transmission Owner (OFTO).
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