UK Law and Practice Contributed by: Tom Sprange KC, Andrea Stauber, Martina Antosova and Lucy Pearson, King & Spalding International LLP
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 provision of an efficient, co-ordinated and economical system and the facilitation of competition in supply and generation by including: • price controls that ensure a network company does • measures to ensure it can finance its functions. The licence is a public document and is available on Ofgem’s electronic public register. The Electricity Transmission Standard Licence Condi- tions (as updated in October 2025) are divided into the following sections: • A – Interpretation, Application and Payments; • B – General; • C – Not Used; • D – Transmission Owner Standard Conditions; and • E – Offshore Transmission Owner Standard Condi- tions. not abuse its monopoly position; • restrictions on asset disposal; and Sections A and B apply to all licences but the condi- tions in Sections D and E are “switched on” depend- ing on whether the licensee is a TO or Offshore Trans- mission Owner (OFTO). Electricity transmission is a highly regulated activity, given the need to secure safe and efficient networks and to regulate the charging for a monopoly activity. From 1 October 2025, an electricity transmission licence has 19 general Section B conditions in opera- tion, relating to: • the preparation and publication of regulatory accounts; • maintaining operational control over relevant assets;
• decommissioning their existing nuclear power sta- tions; and • managing any radioactive waste produced by their power stations. This is known as the Funded Decommissioning Pro- gramme (FDP). Operators of new nuclear power sta- tions are required to have an FDP approved by the Secretary of State and in place 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 Obtain- ing Approvals to Construct and Operate Generation Facilities , Ofgem’s Electricity 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 application 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 applications), 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 appli- cation.
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