Energy (Miscellaneous Provisions) Act 2006

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Interconnectors.

8.— (1) Subsection (1) of section 2 of the Act of 1999 is amended by the insertion in the definition of “transmission” of “subject to section 2A,” before “in relation to electricity”.

(2) The Act of 1999 is amended by the insertion of the following section after section 2:

“Position of interconnectors as respects transmission system.

2A.— (1) An interconnector owned by the Board shall be part of the transmission system.

(2) Subject to subsection (3) an interconnector owned by a person other than the Board shall not be part of the transmission system.

(3) Notwithstanding subsection (2), an interconnector owned by a person other than the Board shall be considered to be part of the transmission system for the purposes of calculating charges and imposing charges for use of the transmission system.”.

(3) Subsection (1) of section 14 of the Act of 1999 is amended—

(a) in paragraph (g) by the substitution of “distribution system operator,” for “distribution system operator, or”,

(b) in paragraph (h) by the substitution of “public electricity supplier, or” for “public electricity supplier”, and

(c) by the insertion after paragraph (h) of the following paragraph:

“(i) to transport electricity across and maintain an interconnector,”.

(4) Section 16 of the Act of 1999 is amended—

(a) by the substitution for subsection (1) of the following subsection:

“(1) A person shall not—

(a) construct or reconstruct a generating station for the purpose of supply to final customers, or

(b) construct an interconnector,

unless an appropriate authorisation has been granted to the person by the Commission.”,

(b) by the substitution for subsection (3) of the following subsection:

“(3) Subject to section 17, the Commission may grant or may refuse to grant to any person an authorisation—

(a) to construct or reconstruct a generating station, or,

(b) to construct an interconnector,

and where the Commission grants such an authorisation, that authorisation shall be subject to such terms and conditions as may be specified in the authorisation, including, as respects a generating station, the generating capacity of such station.”.

(5) The Act of 1999 is amended by the insertion after section 16 of the following section:

“Construction of an interconnector.

16A.— The Commission may, with the consent of the Minister, secure the construction of an interconnector or interconnectors by one or more of the following means:

(a) a competitive tender;

(b) an authorisation granted to a person without a prior competitive tender where the person demonstrates, to the satisfaction of the Commission, that the granting of an authorisation, subject to such conditions as the Commission deems necessary and appropriate, is in the long term interests of final customers; or

(c) requesting the transmission system operator to provide for the construction of an interconnector in its development plan.”.

(6) Section 18 of the Act of 1999 is amended in subsection (1) by the insertion of “to construct or reconstruct a generating station” after “authorisation”.

(7) The Act of 1999 is amended by the insertion after section 34 of the following section:

“Terms for access to interconnector.

34A.— (1) Subject to subsection (3) the holder of a licence under section 14(1)(i) (in this section referred to as the ‘interconnector operator’) shall offer access to the interconnector concerned on the basis of published non-discriminatory terms which shall be subject to the approval of and directions given by the Commission.

(2) Without prejudice to the generality of subsection (1) the Commission may give directions to the interconnector operator which provide for—

(a) the matters to be specified in an agreement for use of the interconnector,

(b) the terms and conditions upon which an offer for access to the interconnector is made,

(c) the basis upon which charges may be made for access to the interconnector,

(d) the terms and conditions upon which applications for access are to be made and the period of time within which an offer or refusal pursuant to an application is to be made by the interconnector operator, and

(e) any other matters which the Commission considers necessary or expedient for the purpose of making an offer of access to the interconnector,

and the interconnector operator shall comply with directions given by the Commission under this section within such period of time as may be specified by the Commission.

(3) The interconnector operator shall not be required under subsection (1) to enter into an agreement where—

(a) it has demonstrated to the satisfaction of the Commission that it is not in the public interest to do so,

(b) to enter into an agreement under this section would be likely to involve the interconnector operator—

(i) in a breach of this Act,

(ii) in a breach of regulations made under this Act,

(iii) in a breach of the grid code or distribution code, or

(iv) in a breach of the conditions of any licence or authorisation granted to the interconnector operator under this Act.

(4) Where the interconnector operator refuses to enter into an agreement under this section the interconnector operator shall serve notice on the applicant of the reasons for such refusal.

(5) Any dispute between the interconnector operator and a person who is, or claims to be, a person to whom the interconnector operator is obliged to make an offer of access to the interconnector (and whether the dispute relates to the making of an offer, the terms offered, the proposed charge or otherwise)—

(a) where the offer is made by the interconnector operator, or

(b) where an offer is refused by the interconnector operator,

may, upon the application of that person, be determined by the Commission and the interconnector operator shall comply with and be bound by any such determination.”.