UK Law and Practice Contributed by: Tom Sprange KC, Andrea Stauber, Martina Antosova and Lucy Pearson, King & Spalding International LLP
Electricity transmission is a highly regulated activity, given the need to secure safe and effi- cient networks and to regulate the charging for a monopoly activity. From 1 October 2024, an electricity transmission licence has 19 general Section B conditions in operation, relating to: • the preparation and publication of regulatory accounts; • maintaining operational control over relevant assets; • furnishing information to GEMA as may rea- sonably be required; • prohibition of cross-subsidies; • restriction on certain activities and financial ring-fencing; • ensuring the availability of resources; • procuring an undertaking from the ultimate controller of the licensee; • restriction on indebtedness; • maintaining an Investor Grade Issuer Credit Rating at all times; • complying with the provisions of the Fuel Security Code in respect of transmission in England and Wales and complying with the directions of the Secretary of State under Section 34 and/or 35 of the Energy Act 2004 in respect of transmission in Scotland; • having a System Operator–Transmission Owner Code (STC) in force; • complying with the Regulatory Instructions and Guidance (RIGs) published by GEMA; • developing and maintaining an Electricity Network Innovation Strategy; • complying with any Section E (OFTO of last resort) direction given by GEMA; • doing all such things to give effect to all modifications made by the Secretary of State to the licence, the CUSC or the STC;
• notifying GEMA of any changes or circum- stances that may affect the licensee’s eligibil- ity for certification; • having two non-executive directors who meet the criteria set out in Condition B22 of the licence; • complying with the provisions of the Data Assurance Guidance; and • the ability of GEMA to make “housekeeping” modifications to the licence. Special conditions apply to National Grid Elec- tricity Transmission plc, Scottish Hydro Electric Transmission Plc, and SP Transmission Plc. SLCs in respect of transmission licences may be “switched on” or “switched off” by Ofgem. 4.4 Eminent Domain, Condemnation and Expropriation Rights to Construct and Operate Transmission Lines and Associated Facilities Section 37 of the Electricity Act 1989 requires the consent of the Secretary of State to install an electric line above ground unless the electric line either: • has a nominal voltage of less than 20 kV and is used for supplying a single customer; or • is within premises either occupied or con- trolled by the person responsible for the installation. In England and Wales, an overhead electric line with a nominal voltage of 132 kV or more is con- sidered an NSIP. As such, a DCO from the Sec- retary of State will be required unless a specific exemption applies. Certain transmission works by statutory undertakers may be classified as “permitted developments” under the Town and Country Planning (General Permitted Develop-
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