Power Generation, Transmission and Distribution 2025

UK Law and Practice Contributed by: Tom Sprange KC, Andrea Stauber, Martina Antosova and Lucy Pearson, King & Spalding International LLP

ment) Order 1995, meaning that planning per- mission is not required. A marine licence may be required for the laying of a cable within UK territorial waters. If any electric line passes over or under private land, the consent or agreement of the relevant landowner is also required. A wayleave or ease- ment agreement with the landowner or occupier gives the provider rights to install, access, main- tain and repair the provider’s equipment on their land. A wayleave is an annual agreement for which a landowner and/or occupier receive an annual wayleave payment. The wayleave payment is based on the type and number of assets on the land and its land use. An easement is an agreement that allows the provider permanent rights for the equipment in return for a one-off lump sum payment. It can only be agreed by the landowner (or long-lease holder) and the provider’s rights endure even if the land changes hands. An existing wayleave agreement can be converted to an easement. There are no general eminent domain rights or similar for electricity transmission facilities. How- ever, in accordance with Schedule 3 to the Elec- tricity Act 1989 compulsory purchase powers can be used by statutory undertakers to acquire land or rights over land for the installation and retention of electric lines. Compulsory purchase is intended as a last resort to secure the assem- bly of all the land needed for the implementation of projects. Compulsory Purchase Orders should only be made where there is a compelling case in the public interest to do so and will require a public inquiry to be held before any decision is

reached if there are any objections from owners, lessees or occupiers of the land. 4.5 Monopoly Rights to Provide Transmission Services The transmission system in England, Wales and Scotland as a whole is operated by NESO, which is responsible for ensuring the stable and secure operation of the national electricity transmission system. There are four companies that own the onshore transmission system in the UK: • National Grid Electricity Transmission plc; • Scottish Power Transmission plc; • Scottish Hydro Electric Transmission plc; and • Northern Ireland Electricity Networks Ltd. 4.6 Transmission Charges and Terms of Service Ofgem is responsible for governing transmission licences. In turn, and as noted in 1.5 Central Planning Authorities , Ofgem is governed by GEMA. GEMA’s powers are provided for under the Gas Act 1986, Electricity Act 1989, Utilities Act 2000, Competition Act 1998, Enterprise Act 2002, and measures set out in other Energy Acts – the latest one entering into force in October 2023. With regard to transmission charging arrange- ments, Transmission Network Use of System (TNUoS) charges are levied on generators and suppliers for transmitting electricity across Great Britain’s electricity grid network. TNUoS tariffs are calculated, set and billed by NESO, who recover revenue from generators and suppliers and pay it to the GB TOs. TNUoS represents a proportion of overall trans- mission costs, with the remainder being met

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