PRIVATE ELECTRICITY SUPPLY
("SECOND-TIER") LICENCE
in favour of
Northern Electric plc

OFFICE OF ELECTRICITY REGULATION NORTHERN IRELAND
Brookmount Buildings
42 Fountain Street
BELFAST BT1 TEE

TABLE OF CONTENTS

PART I		TERMS OF THE LICENCE
PART II	THE CONDITIONS

CONDITION 1:	INTERPRETATION AND CONSTRUCTION
CONDITION 2:	CONNECTION AND USE OF SYSTEM - REQUIREMENT TO 
OFFER TERMS
CONDITION 3:	CONNECTION AND USE OF SYSTEM - FUNCTION OF THE 
DIRECTOR
CONDITION 4:	COMPLIANCE WITH GRID CODE AND, WHERE APPLICABLE, 
DISTRIBUTION CODE
CONDITION 5: 	SUPPLY COMPETITION CODE
CONDITION 6:	MODIFICATION OF SUPPLY COMPETITION CODE AND 
CANCELLATION OF 
		CONTRACT
CONDITION 7:	LICENSEE'S SYSTEM PLANNING
CONDITION 8:	SECURITY ARRANGEMENTS
CONDITION 9:	COMPULSORY ACQUISITION OF LAND
CONDITION 10: POWERS TO CARRY OUT ROAD WORKS ETC
CONDITION 11: HEALTH AND SAFETY OF EMPLOYEES
CONDITION 12: PAYMENT OF FEES

SCHEDULE 1
SCHEDULE 2



PART I

1.	The Director General of Electricity Supply for Northern 
Ireland, in accordance with a general authority given by the 
Department of Economic Development under Articles 10(1) and 
10(2) of the Electricity (Northern Ireland) Order 1992 
(hereinafter referred to as the "Order") and in exercise of 
the powers conferred by Articles 10(2)(a), 10(6), 11 and 13 
of the Order hereby grants to Northern Electric plc a 
licence to supply electricity to the premises specified or 
of the description specified in Schedule 1 during the period 
specified in paragraph 3 below, subject to the Conditions 
set out in Part II below (hereinafter referred to as the 
"Conditions").

2.	The Conditions are subject to modification or amendment in 
accordance with their terms or with Articles 14, 17 or 18 of 
the Order.  The licence hereby granted (hereinafter referred 
to as "this license") is further subject to the terms as to 
revocation specified in Schedule 2.

3.	This licence shall come into force on 1 April 1993 and 
unless revoked in accordance with the provisions of Schedule 
2 shall continue in force until determined by not less than 
25 years' notice in writing given by the Director General of 
Electricity Supply for Northern Ireland to the Licensee, 
such notice not to be served earlier than the tenth 
anniversary of the date on which this licence comes into 
force.

		April 1993

							Director General of Electricity Supply
							Northern Ireland


PART II	THE CONDITIONS

Condition 1:	Interpretation and construction

1.	Unless the contrary intention appears:

(a)	words and expressions used in the Conditions or in the 
Schedules below shall be construed as if they were in an 
enactment and the Interpretation Act (Northern Ireland) 1954 
applied to them; and

(b)	references to an enactment shall include subordinate 
legislation and in both cases any statutory modification or 
re-enactment thereof after the date when this licence comes 
into force.

2.	Any word or expression defined for the purposes of any 
provision of Part II of the Order shall, unless the contrary 
intention appears, have the same meaning when used in the 
Conditions or in the Schedules below.

3.	In the Conditions and in the Schedules below, unless 
otherwise specified or the context otherwise requires:

"affiliate" in relation to any person means any holding company 
or subsidiary of that person or any subsidiary of a holding 
company of that person, in each case within the meaning of 
sections 736, 736A and 736B of the Companies Act 1985 as 
substituted by section 144 of the Companies Act 1989;
 
"Ancillary Services" means:
 
 (a)  back start, reactive power, frequency control and such 
other services as any authorised electricity operator may be 
required to have available as ancillary services in association 
with any generation set pursuant to the Grid Code; and
 (b)  such services as any authorised electricity operator may 
have agreed to have available as being ancillary services in 
association with any generation set pursuant to an agreement made 
with the transmission licensee

 and which may be offered for sale to the transmission licensee 
for the purpose of securing stability of operation on the 
transmission system and the distribution system of any authorised 
electricity operator or any system linked to the transmission 
system or distribution system by an interconnector;
 
"authorised" in relation to any business or activity means 
authorised by licence granted under Article 10 or exemption 
granted under Article 9 of the Order;
 
"authorised electricity operator" means any person (other than 
the licensee) who is authorised to generate, transmit or supply 
electricity;
 
"cancel" in relation to the Director, means exercise his 
cancellations powers;
 
"cancellable generating unit agreement" means a generating unit 
agreement which may be the subject of a cancellation direction, 
being the generating unit agreements specified in Schedule 8 of 
the transmission licence issued to Northern Ireland Electricity 
plc with effect from 1 April 1992 (as it may be modified pursuant 
to paragraph 12 of Condition 8 of Part III thereof or paragraph 5 
of Condition 10 of Part III thereof);
 
"cancellation direction" means a direction issued by the Director 
to cancel a cancellable generating unit agreement;
 
"cancellation powers" means the powers of the Director to direct 
any party to a cancellable generating unit agreement to terminate 
that agreement upon such date or the happening of such event as 
shall be specified in the notice containing the direction;
 
"Community obligation" has the meaning ascribed to it in Schedule 
1 to the European Communities Act 1972;
 
"Department" means the Department of Economic Development;
 
"designated" in relation to any agreement, arrangement, code, 
notice, proposal therefor or other document, means designated by 
the Department or on its behalf by means of initialing or 
descriptive reference whether for the purposes of any Condition 
of this licence or otherwise, but so that an agreement, 
arrangement, code, notice, proposal therefor or other document so 
designated may at the discretion of the Department cease to be 
designated if amended or modified in any material respect;
 
"Director" means the Director General of Electricity Supply for 
Northern Ireland;
 
"Distribution Code" means, in relation to Northern Ireland 
Electricity plc, the Distribution Code required to be prepared by 
it pursuant to paragraph 14 of Condition 18 of Part II of its 
transmission and public electricity supply licences, and, in 
relation to any other public electricity supplier, the 
distribution code required to be prepared by such supplier, and 
in either case approved by the Director, as from time to time 
revised with the approval of the Director;
 
"distribution system" in relation to a public electricity 
supplier means all electric lines of that public electricity 
supplier within its authorised area (excepting lines forming part 
of the transmission licensee's transmission system or any 
interconnector) and any other electric lines which the Director 
may specify as forming part of that public electricity supplier's 
distribution system, and includes any electrical plant and meters 
of that public electricity supplier which are used in connection 
with distribution by it;
 
"emissions" means the discharge of substances into the air;
 
"generating unit agreement" means a power purchase agreement 
between a generator and the power procurement manager in respect 
of a generation set or combination of generation sets;
 
"generation licence" means a licence granted under Article 
10(1)(a) of the Order;
 
"generation set" means any plant or apparatus for the production 
of electricity;
 
"generator" means a person authorised by a licence granted under 
Article 10(1)(a) of the Order;
 
"Grid Code" means the Grid Code required to be prepared by the 
transmission licensee and approved by the Director as from time 
to time revised amended, supplemented or replaced with the 
approval or at the instance of the Director;
 
"interconnector" means electric lines and electrical plant and 
meters used solely for conveying electricity directly to or from 
a substation or converter station within Northern Ireland into or 
out of Northern Ireland;
 
"licensee" means Northern Electric plc (registered in England 
under number 2366942) and (where the context so requires) shall 
include any business in respect of which the licensee is a 
successor company;
 
"licensee's system" means the electric lines owned or operated by 
the licensee through which electricity is transported from 
generation sets to the point of connection with the transmission 
system or the distribution system or any other system of any 
authorised electricity operator for the distribution of 
electricity or to the point of delivery to customers, and 
includes any electrical plant and meters owned or used by the 
licensee in connection therewith;
 
`modification" includes addition, omission, amendment and 
substitution, and cognate expressions shall be construed 
accordingly;
 
"Northern Ireland Fuel Security Code" means the document of that 
title designated as such by the Department as from time to time 
amended in accordance with its provisions, dealing with the 
cooperation of licence holders in strategic contingency planning 
in respect of fuel stocks, the modification of the merit order 
and certain other systems and procedures under the Grid Code 
during periods when the Department has given and there is in 
force one or more directions under Article 37(4) of the Order, 
the entitlement of authorised electricity operators to and the 
collection of certain payments in anticipation of, during and 
after the expiry of any such periods, and connected matters;
 
"power procurement manager" means the transmission licensee when 
it is performing or required to perform its obligations as power 
procurement manager under its transmission license;
 
"power purchase agreement" means a contract for the provision to 
the licensee or any other authorised electricity operator of the 
whole or any part of the available capacity and/or the sale or 
other disposal to the licensee or any other authorised 
electricity operator of the whole or any other authorised 
electricity operator of the whole or any part of the output of a 
generation set or combination of generation sets;
 
 "power station agreement" means an agreement made with effect 
from 1 April 1992 between a generator and the power procurement 
manager in relation to matters concerning a generating station 
and designated for the purposes of the generation licences 
granted to the successor companies;
 
"public electricity supplier" means Northern Ireland Electricity 
plc or any other holder for the time being of a licence under 
Article 10(1)(c) of the Order except where he is acting otherwise 
than for purposes connected with the supply of electricity to 
premises in his authorized area;
 
  "public electricity supply licence" means a licence granted 
under Article 10(1)(c) of the Order;
 
"relating undertaking" in relation to any person means any 
undertaking in which that person has a participating interest as 
defined by section 260 of the Companies Act 1985 as substituted 
by section 22 of the Companies Act 1989;
 
 "relevant exempt self supplier" means a relevant exempt self 
supplier within the meaning of the Electricity (Class Exemptions 
from the Requirement for a Licence) Order (Northern Ireland) 
1992;
 
"relevant licensed supplier" means a person authorised by a 
licence granted under Article 10(1)(c) or 10(2) of the Order;
 
"relevant supplier" means a relevant licensed supplier or a 
relevant exempt self supplier;
 
"successor company" bears the meaning ascribed to it for the 
purposes of Part III of the Order;
 
"Supply Competition Code" means the document of that title 
designated as such by the Department, as from time to time 
revised, amended, supplemented or replaced with the approval or 
at the instance of the Director;
 
"total system" means the transmission system and the distribution 
system of Northern Ireland Electricity plc taken together;
 
"transmission licence" means a licence granted under Article 
10(1)(b) of the Order;
 
"transmission licensee" means Northern Ireland Electricity plc or 
any other holder for the time being of a transmission licence;
 
"transmission system" in relation to the transmission licensee 
means the system of electric lines comprising the transmissions 
licensee's high voltage lines and electrical plant and meters 
used for conveying electricity from a generating station to a 
substation, from one generating station to another, and from one 
substation to another within the transmission licensee's 
authorised area (except any such lines which the Director may 
approve as being part of a public electricity supplier's 
distribution system) and any other electric lines which the 
Director may specify as forming part of the transmissions 
licensee's transmission system and shall not include any 
interconnector; and
 
"undertaking" bears the meaning ascribed to it by section 259 of 
the Companies Act 1985 as substituted by section 22 of the 
Companies Act 1989.

4.	Subject as provided in paragraph 5, for as long as Northern 
Ireland Electricity plc continues to be the holder of both 
its transmission licence and public electricity supply 
licence, and notwithstanding anything to the contrary in 
this licence, this licence (except this paragraph and 
paragraph 5) shall have effect as if:

(a)	all distribution system and the transmission system of 
Northern Ireland Electricity plc were a single system for 
the transmission and distribution of electricity;

(b)	all references to the transmission system and to the 
distribution system, insofar as such systems are the systems 
of Northern Ireland Electricity plc, were references to the 
total system; and

(c)	for as long as the Director shall not have issued any 
directions to Northern Ireland Electricity plc under 
paragraph 14 of Condition 18 of Part II of its transmission 
and public electricity supply licences, all references to 
the Distribution Code were references to the Grid Code.

5.	Notwithstanding the holding by Northern Ireland Electricity 
plc of both of the licences referred to in paragraph 4, the 
Director may issue to the licensee directions (which may be 
subject to conditions which, in the opinion of the Director, 
are necessary or desirable in order to secure that the 
Conditions or, as the case may be, paragraphs or sub-
paragraphs of the Conditions in which the relevant 
references referred to in paragraph 4 appear, operate 
separately in relation to the transmission system and the 
distribution system of Northern Ireland Electricity plc) 
disapplying in whole or in part the provisions of paragraph 
4 if:

(a)	it is necessary for him to do so in order to comply 
with a Community obligation;
or

(b)	there shall have been granted a subsequent licence 
under Article 10(1)(b) or 10(1)(c) of the Order.

This licence shall have effect in accordance with the terms 
of such directions.

6.	Unless otherwise specified:

(a)	any reference to a numbered Condition or to a numbered 
Schedule is respectively a reference to the Condition or the 
Schedule bearing that number in this licence;

(b)	any reference to a numbered paragraph is a reference to 
the paragraph bearing that number in the Condition or 
Schedule in which the reference occurs; and

(c)	(without prejudice to any provision which restricts 
such variation, supplement or replacement) any reference to 
any agreement, licence (other than this licence), code or 
other instrument shall include a reference to such 
agreement, licence, code or other instrument as varied, 
supplemented or replaced from time to time.

7.	The heading or title of any Part, Condition, Schedule or 
paragraph shall not affect the construction hereof.

8.	Where any obligation of the licensee is expressed to require 
performance within a specified time limit that obligation 
shall continue to e binding and enforceable after that time 
limit if the licensee fails to perform that obligation 
within that time limit (but without prejudice to all rights 
and remedies available against the licensee by reason of the 
licensee's failure to perform within the time limit).

9.	The provisions of section 24 of the Interpretation Act 
(Northern Ireland) 1954 shall apply for the purposes of the 
delivery or service of any document, direction or notice to 
be delivered or served pursuant to this licence, and 
directions issued by the Director pursuant to any Condition 
shall be delivered or served as aforesaid. 


Condition 2:	Connection and use of system - requirement to 
offer terms

1.	The licensee shall, subject to paragraph 6,7 and 10:

(a)	offer to enter into an agreement to provide a 
connection to the licensee's system with any person who has 
made application for connection to the licensee's system; 
and

(b)	offer to enter into an agreement for the modification 
of a connection to the licensee's system with any person who 
has made application for modification of a connection to the 
licensee's system; and

(c)	offer to enter into an agreement with any authorised 
electricity operator or person who shall have applied for a 
licence under Article 10 of the Order and whose application 
has not been withdrawn or rejected who has made application 
for use of the licensee's system:

(i)	to accept into the licensee's system at such entry 
point and in such quantities as may be specified in the 
application, electricity to be provided by or for that 
person; and

(ii)	to delivery electricity equal in quantity to that 
accepted into the licensee's system (less only any 
losses incurred in the course of transporting such 
electricity through the licensee's system) from such 
exit points on the licensee's system and in such 
quantities as may be specified in the application to 
such person as the person making the application may 
specify.

2.	The licensee shall, subject to paragraphs 6, 7 and 10, offer 
terms for an agreement in accordance with paragraph 1 as 
soon as practicable and in any event not more than the 
period specified in paragraph 8 after receipt by the 
licensee of an application from the person containing all 
such information as the licensee may reasonably require for 
the purposes of formulating the terms of its offer.

3.	Each offer made in accordance with paragraph 1 shall:

(a)	make detailed provision regarding such of the following 
matters as are relevant for the purposes of the agreement:

(i)	the carrying out of works (if any) required for 
the construction or modification of the entry point to 
connect the licensee's system to the transmission 
system of the transmission licensee or to the 
distribution system of any public electricity supplier 
or the system for the distribution of electricity of 
any other authorised electricity operator or in 
connection with the construction or modification of any 
exit points for the delivery of electricity as 
specified in the application, and for the obtaining of 
any consents necessary for such purpose;

(ii)	the carrying out of works (if any) for the 
provision of electrical plant or for the extension or 
reinforcement of the licensee's system which are 
required to be undertaken for the provision of 
connection to, or the making of a modification to a 
connection to, the licensee's system or for provision 
of use of the licensee's system to the person and for 
the obtaining of any consents necessary for such 
purposes;

(iii)	the installation of appropriate meters or 
other apparatus (if any) required to enable the 
licensee to measure electricity being accepted into 
licensee's system at the specified entry point and 
leaving such system at the specified exit points;

(iv)	the installation of such switchgear or other 
apparatus (if any) as may be required for interrupting 
the use of the licensee's system should there be a 
failure by or for a person to provide electricity at 
its entry point on the licensee's system for delivery 
to the person specified by the person making the 
application from the exit points on the licensee's 
system;

(v)	the date by which any works required  so as to 
permit access to the licensee's system (including for 
this purpose any works for its extension or 
reinforcement) shall be completed and so that, unless 
otherwise agreed by the person making the application, 
a failure to complete such works by such date shall be 
a material breach of the agreement entitling the person 
to rescind such agreement;

(vi)	the charges to be paid by the person making the 
application for the provision of electrical plant, for 
connections to or modification of connections to, or 
the extension or reinforcement of, the licensee's 
system, for the installation of meters, switchgear or 
other apparatus and for their maintenance, for 
disconnection from the licensee's system and the 
removal of electrical plant, electric lines and meters 
following disconnection, and for use of the licensee's 
system which shall, unless manifestly inappropriate, be 
set in conformity with paragraph 4; and

(b)	contain such other provisions as may be appropriate for 
the purposes of the agreement in the circumstances in which 
it is likely to be entered into.

4.	The charges referred to in paragraph 3 to be contained in 
every agreement the subject of an offer by the licensee 
shall be such that:

(a)	charges for the provision of electrical plant, 
connection charges, charges for modification of connections, 
charges for disconnection from the licensee's system and the 
removal of electrical plant, electric lines and meters 
following disconnection or any charges for extension or 
reinforcement of the licensee's system or for use of the 
licensee's system are set at a level which will enable the 
licensee to recover no more than:

(i)	the appropriate proportion (taking account of the 
factors referred to in paragraph 5) of the costs 
directly or indirectly incurred by the licensee; and

(ii)	a reasonable rate of return on the capital 
represented by such costs; and

(b)	charges for the installation of meters, switchgear or 
other apparatus and for their maintenance shall not exceed 
the costs thereof and a reasonable rate of return on the 
capital represented by such costs.

5.	For the purpose of determining an appropriate proportion of 
the costs directly or indirectly incurred in carrying out 
works, the licensee shall have regard to:

(a)	the benefit (if any) to be obtained or likely in the 
future to be obtained by the licensee or any other person as 
a result of the carrying out of such works whether by virtue 
of the provision of electrical plant, the reinforcement or 
extension of the licensee's system, or the provision of 
additional entry or exit points on the licensee's system or 
otherwise; and

(b)	the ability or likely future ability of the licensee to 
recoup a proportion of such costs from other persons.

6.	The licensee shall not be obliged pursuant to this Condition 
to offer to enter into any agreement where, by reason of the 
capacity of the licensee's system and the use made or 
reasonably expected to be made of it, the licensee would be 
required to expand or reinforce the capacity of the 
licensees system.

7.	The licensee shall not be obliged pursuant to this Condition 
to offer to enter into any agreement with any person if:

(a)	to do so would be likely to involve the licensee:

(i)	in breach of the Grid Code; or

(ii)	in breach of the Distribution Code; or

(iii)	in breach of the Electricity Supply 
Regulations (Northern Ireland) 1991 or any regulations 
made under Article 32 of the Order; or

(iv)	in breach of any other enactment relating to 
safety or standards applicable to the licensee's 
system; or

(b)	the person does not undertake to be bound, insofar as 
applicable, by the terms of such parts of the Codes referred 
to in sub-paragraph (a)(i) and (a)(ii) above, as from time 
to time in force and to such extent as the Director shall 
from time to time specify in directions issued to the 
licensee for the purposes of this Condition.

8.	For purposes of paragraph 2, the period specified shall be:

(a)	in the cases of persons seeking use of the licensee's 
system only, 28 days; and

(b)	in the case of persons seeking connection or 
modification of an existing connection or seeking use of 
the licensee's system in conjunction with connection, three 
months.

9.	The licensee shall within 28 days following receipt of a 
request from any person, give or send to such person such 
information in the possession of the licensee as may be 
reasonably required by such person for the purpose of 
competing the appropriate paragraphs of the Electricity 
(Applications for Licenses and Extensions of Licences) 
Regulations (Northern Ireland) 1992 or such provisions to 
like effect contained in any further regulations then in 
force made pursuant to Articles 10(3) and 64 of the Order.

10.	Paragraphs 1 to 9 inclusive shall apply only if and to the 
extent that the Director so directs.  The licensee shall 
comply with any such direction.


Condition 3:	Connection and use of system - function of the 
Director


1.	If, after a period which appears to the Director to be 
reasonable for the purpose, the licensee has failed to enter 
into an agreement with any person entitled or claiming to be 
entitled thereto pursuant to an application in accordance 
with Condition 2, the Director may, pursuant to Article 
11(3) of the Order, on the application of such  person or 
the licensee, settle any terms of the agreement in dispute 
between the licensee and the person in question in such 
manner as appears to the Director to be reasonable having  
(insofar as relevant) regard, in particular, to the 
following considerations:

	(a)	that the person should pay to the licensee the whole or 
an appropriate proportion (as determined in accordance with 
paragraph 5 of Condition 2) of the costs directly or 
indirectly incurred by the licensee in the carrying out of 
any works or in providing or doing any other thing under 
the agreement in question calculated in accordance with the 
principles set out in paragraph 4 of Condition 2 together 
with a reasonable rate of return on the capital represented 
by such costs; 

	(b)	that the performance by the licensee of it obligations 
under the agreement should not cause it to be in breach of 
any other Condition of this licence;

	(c)	that any methods by which the licensee's system is 
connected to the transmission system of the transmission 
licensee or the distribution system of any public 
electricity supplier or to the system for the distribution 
of electricity of any other person authorised to supply 
electricity accords with good engineering principles and 
practices;

	(d)	that the terms and conditions of agreements entered 
into by the licensee pursuant to an application in 
accordance with Condition 2 should be, so far as 
circumstances allow, as similar in substance and form as is 
practicable.

2.	If the person wishes to proceed on the basis of the 
agreement as settled by the  Director, the licensee shall 
forthwith enter into and implement such agreement in 
accordance with its terms.

3.	If either party to an agreement for connection to, or 
modification of a connection to, the licensee's system or 
for use of the licensee's system entered into pursuant to 
Condition 2 or this Condition proposes to vary the 
contractual terms of such agreement in any manner provided 
for under such agreement, the Director may, at the request 
of the licensee or other party to such agreement, settle any 
dispute relating to such variation in such manner as appears 
to the Director to be reasonable having regard (insofar as 
relevant), in particular, to the considerations set out in 
subparagraph (a) to (d) of paragraph 1.


Condition 4:	Compliance with Grid Code and, where applicable, 
Distribution Code

1.	The licensee shall comply with the provisions of the Grid 
Code and the Distribution Code insofar as applicable to it.

2.	The Director may, following consultation with the 
transmission licensee (and, in the relevant circumstances, 
any public electricity supplier), issue directions relieving 
the licensee of it obligation under paragraph 1 above in 
respect of such parts of the Grid Code (and, in the relevant 
circumstances, the Distribution Code) and to such extent as 
may be specified in those directions.

3.	In this Condition, the "relevant circumstances" are where 
the Director shall have issued directions to the 
transmission licensee and the public electricity supplier 
under paragraph 14 of Condition 18 of Part II of the 
transmission and public electricity supply licenses.

4.	The Director shall be entitled, in order to implement the 
requisite arrangements referred to in Condition 6, to issue 
directions to the transmission licensee requiring it to 
revise the Grid Code in such manner and with effect from 
such date as may be specified in the directions, provided 
that such revisions shall not:

	(a)	come into effect earlier than 1 November 1996: or

	(b)	affect the rights or obligations of any party to:

	(i)	a power purchase agreement which is not a 
cancellable generating unit agreement; or

	(ii)	a cancellable generating unit agreement which has 
not, at the relevant time, been the subject of a 
cancellation direction,

	 under that agreement beyond what my reasonably be regarded 
as de minimis in relation to that person.


Condition 5:	Supply Competition Code

1.	The licensee shall comply with the provisions of the Supply 
Competition Code insofar as applicable to it, including any 
requirements thereunder for the Director's approval or 
consent, for compliance with directions issued by the 
Director or relating to determinations made by the Director.

2.	The provisions of the Supply Competition Code shall have 
effect as if they were set out in this licence.

3.	The Supply Competition Code may be modified:

	(a)	in accordance with paragraph 4;

	(b)	in accordance with the provisions of the Supply 
Competition Code; or

	(c)	not later than 1 June 1993 by the Director so as to add 
in paragraph 6 of the Supply Competition Code, after 
the word "manager" either:

	(i)	the words `provided that, in calculating such 
total requirements, no account shall be taken of 
electricity which a relevant supplier generates himself 
where the relevant supplier, as respects that 
electricity, satisfies the relevant condition.  In this 
paragraph, "relevant condition" has the same meaning as 
in paragraph D.2(a) of Schedule 2 to the Electricity 
(Class Exemptions form the Requirement for a Licence) 
Order (Northern Ireland) 1992, save that the reference 
therein to "person in question" shall be treated as a 
reference to "relevant supplier in question"; or

(ii)	such other words as the Director, after 
consultation with the licensee and having taken into 
consideration any representations made by the licensee, 
shall determine to be requisite or expedient so as to 
achieve his objective of ensuring that relevant 
suppliers or any class or classes of relevant supplier 
shall be entitled to purchase electricity from the 
power procurement manager notwithstanding the fact that 
they generate some of their requirements for 
electricity themselves.

4.	The Director shall be entitled to make such modifications of 
the Supply Competition Code as shall, in his opinion, be 
necessary to implement the requisite arrangements referred 
to in Condition 6, or in accordance with paragraph 8 of that 
Condition, provided that such modifications shall not come 
into effect earlier than 1 November 1996

5.	The modifications of the Supply Competition Code made 
pursuant to paragraph 4 shall include the establishment of 
procedures for its further modification with the agreement 
of all licence holders and , in the absence of  such 
agreement, in the manner provided for in Articles 14 to 18 
of the Order

6.	No modification of the Supply Competition Code pursuant to 
paragraph 4 shall affect the rights or obligations of any 
party to:

	(a)	a power purchase agreement which is not a cancellable 
generating unit agreement; or

	(b)	a cancellable generating unit agreement which has not, 
at the relevant time, been the subject of a cancellation 
direction,

	under that agreement beyond what may reasonably be regarded 
as de minimis in relation to that person.


Condition 6:	Modification of Supply Competition  Code and 
cancellation of contracts

1.	When the Director shall have determined that the requisite 
arrangements have been developed and that they satisfy the 
requirements of paragraph 3, he shall be entitled to 
exercise the powers specified in paragraph 4, provided that 
the procedural requirements of paragraph 6 have been 
followed.

2.	The requisite arrangements are arrangements which, if 
implemented by means of the making of modifications to the 
Supply Competition Code, the Grid Code and the Northern 
Ireland Fuel Security Code, would facilitate an increase in 
competition in the generation or supply of electricity in 
Northern Ireland for the benefit of consumers of electricity 
in Northern Ireland in respect of the prices charged and the 
other terms of supply, the continuity of supply and the 
quality of the electricity supply services provided.

3.	The requirements of this paragraph are:

	(A)	that there is available for immediate establishment an 
electricity trading system by which (except as provided in 
paragraph 7) the power procurement manager and all licence 
holders will be bound and which, in the opinion of the 
Director, will:
	
	(I)	constitute proper and adequate arrangements for 
the trading of electricity and the calculation and 
settlement of payments due for the provision of 
available generating capacity and the delivery or 
supply of electricity;

	(ii)	ensure that adequate arrangements are in place for 
the provision by generators of all necessary Ancillary 
Services and the proper remuneration of those services;

	(iii)	be based upon a system of despatch of 
generations sets which is technically viable and will 
not prejudice the security and stability of the total 
system or any part of it;
	
	(iv)	ensure that there are adequate incentives for all 
generators to make available such generation capacity 
as will in aggregate be sufficient to ensure that all 
reasonable demands for electricity are satisfied; and

	(v)	ensure that all generators and relevant licensed 
suppliers are contractually bound to comply with the 
provisions of the Northern Ireland Fuel Security Code;

	(vi)	ensure that relevant suppliers shall contract 
for or acquire, in aggregate, amounts of 
generation capacity and quantities of electricity 
form the power procurement manager which are not 
less than the amounts of generation capacity and 
quantities of electricity for which the power 
procurement manager is committed to pay under - 
	
(a)	the power purchase agreements to which the 
power procurement manager is a party and which are 
cancellable generating unit agreements which at 
all relevant times have not been canceled; and
	
	(b)	the power purchase agreements to which the 
power procurement manager is a party and which are 
not liable to be cancelled;
	
	(vii)	not in its operations require any generator 
to breach any obligation incumbent upon it under the 
Large Combustion Plants (Control of Emissions) 
Regulations (Northern Ireland) 1991 in relation to 
emissions;

	(viii)	contain arrangements which will ensure that 
each generator which shall be a party to a cancellable 
generating unit agreement, for so long as such 
agreement shall not have been cancelled, shall be in no 
worse a financial position in respect of its rights 
under that cancellable generating unit agreement by 
reason of the operation of Clause 7.3.2 of each power 
station agreement;

	(ix)	ensure that an appropriate share of the costs of 
the Land Bank Business shall be borne by each relevant 
supplier;

	(x) not, in its operation, cause the licensee to be 
unable to finance the carrying on of the activities 
which it is authorised by this licence to carry on; and

	(B)	that each generator which shall have applied for a 
licence under Article 10(2) of the Order to have effect 
from the date upon which the cancellable generating 
unit agreement to which it is a party is to be 
cancelled, shall have been granted such a licence, 
provide 

	(a)	the Director shall at the relevant time have power 
under Article 10 of the Order to grant such a licence:

	(b)	the criteria for the grant of such a licence shall 
otherwise have been satisfied at the date of the 
application and the date upon which it is first to have 
effect; and 

	(c)	there shall have been no material change in the 
circumstances of the applicant in any relevant respect 
between the date of the application and the date upon 
which the licence is to have effect.

4.	The power referred to in paragraph 1 are powers to serve 
upon the power procurement manager and the generator under a 
cancellable generating unit agreement a notice directing 
them to terminate the cancellable generating  unit agreement 
pursuant to Clause 9.3 thereof upon such date or the 
happening of such event as shall be specified in the notice.

5.	The power specified in paragraph 4 may not be exercised in 
relation to any cancellable generating unit agreement in the 
table appearing in Schedule 8 of the transmission licence 
earlier than the date appearing opposite that cancellable 
generating unit agreement in that table.  The Director may, 
in relation to any cancellable generating unit agreement and 
upon the application of either party to that cancellable 
generating unit agreement, modify the table appearing in 
Schedule 8 of the transmission licence by substituting a 
later date for the date appearing opposite that agreement in 
that table.

6.	The procedural requirements which require to have been 
followed for the purposes of paragraph 1 are:

	(a)	in his preparations for the making of the determination 
referred to in paragraph 1, the Director shall have 
consulted with the Department, all licence holders, the 
power procurement manager, the consumer committee and such 
other persons as the Director shall consider likely to be 
materially affected in relation to the steps that he 
believes require to be taken and the documentation and other 
obligations which he believes require to be entered into, 
imposed or assumed in order to satisfy the requirements of 
paragraph 3 and to create and implement the requisite 
arrangements;

	(b)	in the consultations referred to in sub-paragraph (a) 
above, the Director shall have made available to each person 
so consulted such drafts of the documentation in question 
and of the instruments or other means by which the 
obligations in question are to be imposed or assumed, as he 
shall consider are necessary so as properly to inform such 
persons of the detail of his proposals;

	(c)	the Director shall have given each person so consulted 
the opportunity to make representations in relation to the 
relevant steps and relevant documentation and shall have 
taken into consideration all such representations (other 
than those which are frivolous or trivial) in making the 
determinations;

	(d)	the Director shall have published his conclusions as to 
the relevant steps (including drafts of the relevant 
documentation) and his reasons for those conclusions;

	(e)	the Director shall, before exercising any power under 
paragraph 4, have given not less than 180 days' notice to 
the Department, the power procurement manager, every person 
who at the time he gives the notice is a licence holder, and 
the consumer committee that he intends to do so; and

	(f)	the Director shall, in publishing any statement of 
proposals or the reasons for them, have treated as 
confidential any representation (including any submission of 
any written material) which (and to the extent that) the 
person making the representation shall, by notice in writing 
to the Director or by endorsement on the representation of 
words indicating the confidential nature of such 
representation, have specified as confidential information.

7.	The rules of the electricity trading system referred to in 
paragraph 3(A) contained in the Supply Competition Code as 
modified by the Director in the exercise of his powers under 
paragraph 3 of Condition 5 of Part III of the transmission 
licence, may provide that they are to apply to all licence 
holders except if and to the extent that:

	(a)	they permit the Director to relieve the licence holder 
in question from compliance with them or any of them; or

	(b)	they make provision that they are to apply to 
particular licence holders or classes of licence holder 
differently from the way or ways in which they apply to 
other licence holders.

8.	Notwithstanding paragraph 6, the Director shall be entitled, 
after having carried out the consultations referred to in 
paragraph 6 and published his conclusions, both before and 
after he shall have given any notice of the kind referred to 
in sub-paragraph (e) of paragraph 6, to make any 
modification of the relevant documentation which:

	(a)	is, in his opinion, necessary or desirable in order to 
refine the requisite arrangements;

	(b)	involves only a change of technical nature in the 
requisite arrangements; and

	(c)	will not increase the liability or decrease the rights 
of any person bound or to be bound by the Supply Competition 
Code beyond what may be regarded as reasonable in relation 
to that person,

	provided he give due notice of such amendment or variation 
to such persons as appear to him to be likely to be affected 
thereby.

9.	The licensee shall afford the Director such co-operation as 
he shall in directions issued to the licensee for the 
purposes of this Condition request in developing and testing 
his proposals for the establishment of the requisite 
arrangements and the electricity trading system referred to 
in paragraph 3(A).

10.	The licensee's reasonable direct costs of complying with a 
request made under paragraph 9 (incurred prior to the date 
upon which the Director shall have first exercised his 
cancellation powers and for which and invoice shall have 
been submitted by the licensee to the transmission licensee 
not later than 2 months prior to the date upon which the 
first cancellation direction shall take effect) shall be 
audited in such manner as the Director shall from time to 
time require and shall be recoverable from the transmission 
licensee.

11.	In this Condition:

	"consumer committee" means the committee appointed by the 
Director under Article 7 of the Order;

	"grid operator" means the transmission licensee when it is 
performing or required to perform it obligations under 
Condition 11 of Part III of its transmission licence;

	"Land Bank Business" means the business of Northern Ireland 
Electricity plc in the discharge of its obligations under  
Condition 12 of Part III of its transmission licence;

	"licence holder" means the holder of a licence granted under 
Article 10 of the Order;

	"modification"	includes addition, omission, amendment and 
substitution, and cognate expressions shall be construed 
accordingly;

	"relevant documentation" means the documentation and other 
obligations referred to in sub-paragraph (a) of paragraph 
6;

	"relevant steps" means the steps referred to in sub-
paragraph (a) of paragraph 6; and

	"requisite arrangements" means the arrangements referred to 
as such in paragraph 2



Condition 7:	Licensee's system planning

1.	The licensee shall plan and develop each part of the 
licensee's system in accordance with a standard not less 
than the relevant standard insofar as applicable to it or 
such other standard of planning as the licensee may, 
following consultation with the transmission licensee, each 
public electricity supplier and such (if any) other 
authorised electricity operators as the Director shall 
consider appropriate and with the approval of the Director, 
adopt from time to time.

2.	The Director may (following consultation with the licensee, 
the transmission licensee,  each public electricity supplier 
and such (if any) other authorised electricity operators as 
the Director shall consider appropriate) issue directions 
relieving the licensee of its obligation under paragraph 1 
in respect of such parts of the licensee's system and to 
such extent as may be specified in the directions.

3.	In this Condition:

	"relevant standard"	means the standard laid down in the 
document entitled Transmission and Distribution System 
Security and Planning Standards"  as submitted form time to 
time by the transmission licensee to and approved by the 
Director.



Condition 8:	Security arrangements

1.	The licensee shall comply with the provisions of the 
Northern Ireland Fuel Security Code and such provisions 
shall have effect as if they were set out in this licence. 

2.	The Northern Ireland Fuel Security Code may be amended in 
accordance with its
	provisions



Condition 9:	Compulsory acquisition of land

1.	All the powers and rights conferred by or under the 
provisions of Schedule 3 of the Order (compulsory 
acquisition of land) shall have effect in relation to the 
licensee to the extent that they are required for the 
installation, maintenance, removal ore replacement of the 
licensee's system or any part thereof which are necessary to 
enable the licensee to supply electricity to the premises 
specified in Schedule 1.

2.	The powers referred to in paragraph 1 shall not apply to 
land forming part of the land bank.

3.	Paragraphs 1 and 2 inclusive:
		
	(a)	shall cease to have effect on 31 March 1996 unless the 
Director shall before such date have substituted a later 
date in directions issued to the licensee for the purposes 
of this Condition; and

	(b)	may be brought into effect after they shall have ceased 
to have effect on such date as the Director shall specify in 
directions issued to the licensee for the purposes of this 
Condition.

4.	In this Condition:

"land" includes any right, easement or other interests in land 
and any wayleave; and
 
"land bank" means the land more fully described in Schedule 9 of 
the transmission licence granted to Northern Ireland Electricity 
plc together with such additional land as shall be acquired by 
Northern Ireland Electricity plc as the holder of that licence by 
virtue of any requirement that a generator shall transfer to it a 
freehold interest in any land.



Condition 10:	Powers to carry out road works etc

1.	The powers and rights conferred by or under the provisions 
of Schedule 4 of the Order (other powers, etc., of licence 
holders) shall have effect and may be exercised by carrying 
out works in relation to, or in pursuance of,  the 
installation, inspection, maintenance, adjustment, repair, 
alteration, replacement and removal of:

	(a)	electric lines which are necessary to enable the 
licensee to supply electricity to
	the premises specified in Schedule 1;

	(b)	electrical plant associated with such lines; and

	(c)	any structures for housing or covering such lines or 
plant.

2.	Paragraph 1:

	(a)	shall cease to have effect on 31  March 1996 unless the 
Director shall before such date have substituted a later 
date in directions issued to the licensee for the purposes 
of this Condition; and

	(b)	may be brought into effect after it shall have ceased 
to have effect on such date as the Director shall specify in 
directions issued to the licensee for the purposes 	of 
this Condition.



Condition 11:	Health and safety of employees

	It shall be the duty of the licensee to act together with 
other licence holders to consult with appropriate 
representatives of the employees for the purpose of 
establishing and maintaining an appropriate machinery or 
forum for the joint consideration of matters of mutual 
concern in respect of the health and safety of persons 
employed by those licence holders.


Condition 12:	Provision of information to the Director

1.	Subject to paragraph 2 and 3, the licensee shall furnish to 
the Director, in such manner and at such times as the 
Director may require, such information and shall procure and 
furnish to him such reports, as the Director may consider 
necessary in the light of the Conditions or as he may 
require for the purpose of performing:

	(a)	the functions assigned to him by or under the Order; 
and

	(b)	any functions transferred to him under the Order.

2.	The licensee may not be required by the Director to furnish 
him under this Condition with information for the purpose of 
the exercise of his functions under Article 51 of the Order.

3.	The licensee may not be required by the Director to furnish 
him under this Condition with any information required in 
relation to an enforcement matter which the licensee could 
not be compelled to produce or give under Article 31(3) of 
the Order.

4.	The power of the Director to call for information under 
paragraph 1 is in addition to the power of the Director to 
call for information under or pursuant to any other 
Condition.

5.	In paragraph 1 to 4, "information" shall include any 
documents, accounts, estimates, returns or reports (whether 
or not prepared specifically at the request of the Director) 
or any description specified by the Director.

6.	The licensee shall, if so requested by the Director, give 
reasoned comments on the accuracy and text of any 
information and advise (so far as relating to the supply of 
electricity authorised by this licence) which the Director 
proposed to publish pursuant to Article 51 of the Order.


Condition 13:	Payment of fees

1.	The licensee shall, at the times stated hereunder, pay to 
the Director fees of the amount specified in, or determined 
under, the following paragraphs of this Condition.

2.	Within 30 days after the grant of this licence but, in any 
event before 30 April 1993, the licensee shall pay to the 
Director an initial fee of 250.00 pounds sterling.

3.	In respect of the year beginning on 1 April 1994 and in each 
subsequent year, the licensee shall pay to the Director a 
fee which is the aggregate of the following amounts: 

	a)	an amount which is a proportion, as determined by the 
Director of the amount estimated by the Director, according 
to a method which has previously been disclosed in writing 
to the licensee, as likely to be his costs during the coming 
year in the exercise of his general functions under the 
Order in relation to the holders of licences granted under 
Article 10(1) and 10(2) of the Order: 

(b)	an amount which is a proportion as determined by the 
Director of the amount estimated by the Director (in 
consultation with the Monopolies Commission) as having been 
incurred in the calendar year immediately preceding the 1 
April in question by the Monopolies Commission in connection 
with references made to it under Article 15 of the Order 
with respect to this licence or any other licence issued 
under Article 10(2) of the order; and

	(c)	the difference (being a positive or a negative amount), 
if any, between: 

		(i)	in the amount of the fee paid by the licensee in 
respect of the year immediately preceding the 1 April 
in question; and 

	(ii)	the amount which that fee would have been in 
respect of that year had the amount comprised therein 
under sub-paragraph (a) above (or, where that year 
commenced on 1 April 1992, had the amount comprised 
therein which was attributable to the matters referred 
to in that sub-paragraph, as determined by the Director 
according to a method disclosed in writing to the 
licensee) been calculated by reference to the total 
costs of the Director and the proportion thereof 
actually attributable to the licensee (such total costs 
being apportioned as determined by the Director 
according to a method previously disclosed in writing 
to the licensee.)

		and the fee shall be paid by the licensee to the 
Director within one month of the Director giving notice to 
the licensee of its amount if that notice is given within 
six months of the beginning of the year in respect of which 
the fee is payable. 


SCHEDULE 1

Specified Premises

	All premises in Northern Ireland



SCHEDULE 2

Terms as to revocation

1.	The Director may at any time revoke this licence by not less 
than 30 days' notice in writing to the licensee:

	(a)	if the licensee agrees in writing with the Director 
that this licence should be revoked;

	(b)	if any amount payable under Condition 13 is unpaid 30 
days after it has become due and remains unpaid for a period 
of 14 days after the Director has given the licensee notice 
that the payment is overdue.  Provided that no such notice 
shall be given earlier than the sixteenth day after the day 
on which the amount payable became due; 

	(c)	if the licensee fails to comply with the final order 
(within the meaning of Article 3 of the Order) or with a 
provisional order (within the meaning of Article 3 of the 
Order) which has been confirmed under Article 28 of the 
Order and which (in either case) has been made in respect of 
a contravention or apprehended contravention of any of the 
Conditions or of any relevant requirement (within the 
meaning of Article 3 of the Order) imposed on the licensee 
in its capacity as holder of this licence and (in either 
case) such failure is not rectified to the satisfaction of 
the Director within three months after the Director has 
given notice of such failure to the licensee.  Provided that 
no such notice shall be given by the Director before the 
expiration of the period within which an application under 
Article 30 or the Order could be made questioning the 
validity of the final or provisional order or before the 
proceedings relating to any such application are finally 
determined;

	(d)	if the licensee fails to comply with any order made by 
the Secretary of State under Section 56, 73, 74 or 89 of the 
Fair Trading Act 1973 or under Section 10(2)(a) of the 
Competition Act 1980; 

	(e)	if:

	(i)	none of the premises specified, or of the 
description specified, in Schedule 1 shall have been 
supplied with electricity by the licensee at any time 
during the period of 5 years commencing on the date on 
which this licence comes into force; or 

		(ii)	none of the premises specified, or of the 
description specified, in Schedule 1 shall have been 
supplied with electricity by the licensee at any time 
during any period of 5 years. 

	(f)	if the licensee:

		(i)	is unable to pay its debts (within the meaning of 
section 123(1) or (2) of the Insolvency Act 1986, but 
subject to paragraph 2 of this Schedule) or if any 
voluntary arrangement is proposed in relation to it 
under section 1 of the Act or if it enters into any 
scheme of arrangement (other than for the purpose of 
reconstruction or amalgamation upon terms and within 
such period as may previously have been approved in 
writing by the Director); or 

	(ii)	has a receiver (which expression shall include an 
administrative receiver within the meaning of section 
251 of the Insolvency Act 1986) of the whole or any 
material part of its assets or undertaking appointed; 
or 

	(iii)	has an administration order under section 8 
of the Insolvency Act 1986 made in relation to it; or 

	(iv)	passes any resolution for winding-up other than a 
resolution previously approved in writing by the 
Director; or 

	(v)	becomes subject to an order for winding up by a 
court of competent jurisdiction; or 

	(vi)	shall suffer any event analogous to any of the 
foregoing in any jurisdiction in which it is 
incorporated or resident; or 

	(g)	if the licensee is convicted of having committed an 
offence under Article 63 of the Order. 

2.	(a)	For the purposes of paragraph 1(f)(i) of this Schedule, 
section 123(1)(a) of the Insolvency Act 1986 shall have 
effect as if for "750 pounds sterling" there was 
substituted "250,000 pounds sterling" or such higher 
figure as the Director may from time to time determine 
by notice in writing to the licensee.

	(b)	The licensee shall not be deemed to be unable to pay 
its debts for the purposes of paragraph 1(f)(i) of this 
Schedule if any such demand as is mentioned in section 
123(1)(a) of the Insolvency Act 1986 is being contested in 
good faith by the licensee with recourse to all appropriate 
measures and procedures or if any such demand is satisfied 
before the expiration of such period as may be stated in any 
notice given by the Director under paragraph 1 of this 
Schedule. 




      SECOND TIER LICENCE TO SUPPLY ELECTRICITY

                                                 FOR

                              NORTHERN ELECTRIC PLC


                                  TABLE OF CONTENTS

PART I: TERMS OF THE LICENSE	1
PART II: THE CONDITIONS	2
CONDITION 1: INTERPRETATION AND CONSTRUCTION	2
CONDITION 2: RESTRICTION ON SUPPLY TO CERTAIN PREMISES	5
CONDITION 3: CONNECTION AND USE OF SYSTEM - REQUIREMENT TO OFFER TERMS	7
CONDITION 3A: CONNECTION AND USE OF SYSTEM - FUNCTIONS OF THE DIRECTOR	11
CONDITION 4: COMPLIANCE WITH SCOTTISH GRID CODES	12
CONDITION 5: COMPLIANCE WITH SCOTTISH DISTRIBUTION CODES	13
CONDITION 6: COMPLIANCE WITH TRADING CODE	14
CONDITION 7: LICENSEE'S SYSTEM PLANNING	15
CONDITION 8: GENERATION SECURITY STANDARD	16
CONDITION 9: SECURITY ARRANGEMENTS	19
CONDITION 10: HEALTH AND SAFETY OF EMPLOYEES	20
CONDITION 11: PROVISION OF INFORMATION TO THE DIRECTOR	21
CONDITION 12: PAYMENT OF FEES	22
CONDITION 13: COMPULSORY ACQUISITION OF LAND ETC.	23
CONDITION 14: POWERS TO CARRY OUT ROAD WORKS ETC.	24
SCHEDULE 1	25
SPECIFIC PREMISES	25
SCHEDULE 2	26
TERMS AS TO REVOCATION	26


SECOND-TIER LICENCE TO SUPPLY ELECTRICITY

PART I:	TERMS OF THE LICENSE

1.	The Director General of Electricity Supply in accordance 
with a general authority given by the Secretary of State 
under Sections 6(1) and (2) of the Electricity Act 1989 
(hereinafter referred to as "the Act") and the exercise of 
the powers conferred by Section 6(2)(a), Section 6(6), and 
Section 7 of the Act hereby licenses Northern Electric Plc 
(registered in England under number 2366942) to supply 
electricity to the premises specified in Schedule 1 below 
during the period specified in paragraph 3 below, subject to 
the Conditions set out in Part II below (hereinafter 
referred to as the "Conditions").

2.	The Conditions are subject to modification or amendment in 
accordance with their terms or with Sections 11, 14 or 15 of 
the Act.  The licence is further subject to the terms as to 
revocation specified in Schedule 2.

3.	This licence shall come into force on 1 April 1991 and 
unless revoked in accordance with the provisions of Schedule 
2 shall continue until determined by not less than 25 years' 
notice in writing given by the Director General of 
Electricity Supply to the licensee, such notice in writing 
given by the Director General of Electricity Supply to the 
licensee, such notice not to be served earlier than a date 
being 10 years after the licence comes into force.

Dr. Eileen Marshall
authorised on behalf of the
25 March 1991	Director General of Electricity Supply


PART II:	THE CONDITIONS

Condition 1:	Interpretation and construction

1.	Unless the contrary intention appears, words and expressions 
used in the Conditions or in the Schedules below shall be 
construed as if they were in an Act of Parliament and the 
Interpretation Act 1978 applied to them and references to an 
enactment shall include any statutory modification or reenactment 
thereof after the date when this licence comes into force.

2.	Any word or expression defined for the purposes of any 
provision of Part I of the Act shall, unless the contrary 
intention appears, have the same meaning when used in the 
Conditions or in the Schedules below.

3.	In the Conditions and in the Schedules below unless 
otherwise specified or the context otherwise requires:

"affiliate" in relation to any person means any holding company 
or subsidiary of such person or any subsidiary of a holding 
company of such person, in each case within the meaning of 
Sections 736, 736A and 736B of the Companies Act 1989 and if that 
Section is not in force at the date of grant of this licence as 
if such Section were in force at such date.
 
"authorised" in relation to any business or activity means 
authorised by licence granted under Section 6 or exemption 
granted under Section 5 of the Act.
 
"authorised electricity operator" means any person (other than 
the licensee) who is authorised to generate, transmit or supply 
electricity.
 
"designated" in relation to any agreement means designated by the 
Secretary of State or on his behalf by means of initialling or 
descriptive reference whether for the purposes of any Condition 
of this licence or otherwise, but so that an agreement so 
designated may at the discretion of the Secretary of State cease 
to be designated if amended or  modified in any material respect.
 
"Distribution Code" means, in relation to any public electricity 
supplier, the Distribution Code required to be prepared by such 
supplier and approved by the Director as from time to time 
revised with the approval of the Director.
 
"distribution system" in relation to any public electricity 
supplier, shall have the same meaning as it has for the purposes 
of the licence held by such supplier under Section 6(1)(c) of the 
Act or, in the event that such supplier holds more than one such 
licence at any time, it shall mean at that time each system which 
is defined as the distribution system of that supplier in such 
licences (taken together with each other system which is so 
defined).
 
"equivalent megawatt" in circumstances where demand is only 
measured in megavolt amperes, means megavolt amperes converted 
into megawatts using for this purpose a power factor of 0.9 
megawatts per megavolt ampere or such other factor as may with 
the approval of the Director be taken as being appropriate having 
regard to electrical characteristics of the supply, and cognate 
expressions shall be construed accordingly.
 
"Grid Code" means, in relation to any transmission licensee, the 
Grid Code required to be prepared by such transmission licensee 
and approved by the Director as from time to time revised with 
the approval of the Director.
 
"licensee" means Northern Electric plc (registered number 
2366942) and (where the context so requires) shall include any 
business in respect of which the licensee is the successor 
company.
 
"licensee's system" means the electric lines of the licensee 
through which the licensee supplies electricity to premises 
pursuant to this licence and includes any electrical plant and 
meters of the licensee which are used in connection with the 
transport of electricity through such lines.
 
"megawatt" or "MW" includes an equivalent megawatt.
 
"related undertaking" in relation to any person means any 
undertaking in which such a person has a participating interest 
as defined by Section  260 of the Companies Act 1985 as 
substituted by Section 22 of the Companies Act 1989 and if that 
Section is not in force at the date of grant of this licence as 
if such Section were in force at such date.
 
"Scottish transmission licensee" means a person who holds a 
licence under Section 6(1)(b) of the Act for an authorised area 
in Scotland.
 
"successor company" has the meaning ascribed to it for the 
purposes of Part II of the Act.
 
"Trading Code" means the Trading Code required to be adopted by 
the Scottish transmission licensees, as from time to time revised 
with the approval for the Director.
 
"transmission licensee" means a person who holds a licence under 
Section 6(1)(b) of the Act.
 
"transmission system" in relation to any transmission licensee, 
shall have the same meaning as it has for the purposes of the 
licence held by such licensee under Section 6(1)(b) of the Act 
or, in the event that such licensee holds more than one such 
licence at any time, it shall mean at that time each system which 
is defined as the transmission system of that licensee in such 
licenses (taken together with each other system which is so 
defined).
 
"undertaking" bears the meaning ascribed to that expression by 
Section 259 of the Companies Act 1985 as substituted by Section 
22 of the Companies Act 1989 and if that Section is not in force 
at the date of grant of this licence as if such Section were in 
force at such date.

4.	Unless otherwise specified, any reference to a numbered 
Condition or to a numbered Condition with a suffix letter or to a 
numbered Schedule is respectively a reference to the Condition, 
or to the Condition with a suffix letter or to the Schedule 
bearing that number in this licence, and any reference to a 
numbered paragraph or to a numbered paragraph with a suffix 
letter is respectively a reference to the paragraph or to the 
paragraph with a suffix letter bearing that number in the 
Condition or Schedule in which the reference occurs.

5.	The hearing or title of any Part, Condition, Schedule or 
paragraph shall not affect the construction hereof.

6.	Where any obligation of the licensee is expressed to require 
performance within a specified time limit that obligation shall 
continue to be binding and enforceable after that time limit if 
the licensee fails to perform that obligation within that time 
limit (but without prejudice to all rights and remedies available 
against the licensee by reason of the licensee's failure to 
perform within the time limit).

7.	The provisions of Section 109 of the Act shall apply for the 
purposes of the delivery or service of any documents, directions 
or notices to be delivered or served pursuant to any Condition or 
Schedule and directions issued by the Director pursuant to any 
Condition or Schedule shall be delivered or served as aforesaid.


Condition 2:	Restriction on supply to certain premises

1.	Save as provided in paragraphs 3 and 5 below the licensee 
shall not during the franchise period supply electricity to any 
single premises at which the relevant demand in megawatts is at 
or below the franchise limit.

2.	In determining for the purposes of this Condition whether 
any single premises falls within the franchise limit the licensee 
shall have regard  to the following bases of assessment:

(a)	in respect of premises occupied by existing customers 
the relevant demand in megawatts shall be calculated as an 
average of the maximum monthly demands under normal 
operating conditions at such single premises supplied by one 
or more authorised electricity operators and/or the licensee 
in the 3 months of highest maximum demand as recorded over 
the most recent 12 month period in respect of which figures 
are available; and

(b)	in respect of premises occupied by a new customer 
seeking a supply from the licensee the relevant demand in 
megawatts shall be calculated by reference to the average 
maximum monthly demand which might reasonably be expected in 
the 3 months of highest maximum demand over a 12 month 
period at premises having similar demand characteristics to 
the premises occupied by such new customer.

2A.	For the purposes of paragraph 2, if any electricity which 
has been or is to be supplied by the licensee to any single 
premises ("premises A") is or will be on-supplied by another 
person from premises A to one or more single premises ("premises 
B") then:

(a)	if the on-supply to premises B from premises A was made 
on 31st March 1990 by that other person pursuant to an 
agreement for that other person to supply premises B which 
was subsisting on that date that demand at premises B which 
is met by such on-supply from premises A may be regarded as 
part of the relevant demand in megawatts at premises A; and

(b)	save as provided in sub-paragraph (a) above, that 
demand at premises B which is met by such on-supply from 
premises A shall not be regarded as part of the relevant 
demand in megawatts at premises A.

3.	Subject to paragraph 4, if at any time during the franchise 
period the relevant demand in megawatts (calculated in accordance 
with paragraph 2 and 2A) at any single premises to which a supply 
is given by the licensee in accordance with the provisions of 
this Condition should fall to or below the franchise limit the 
licensee may, notwithstanding such fact, continue to supply such 
premises without being in breach of this Condition until such 
time as:

(a)	any contract existing between the licensee and the 
customer occupying such premises is determined by effluxion 
of time or otherwise; or

(b)	the supply arrangements between the licensee and the 
customer occupying such premises shall for any other reason 
be terminated.

4.	Save where the Director otherwise agrees, if (having regard 
to the basis of assessment referred to in paragraph 2(b)) the 
relevant demand in megawatts of a customer who was a new customer 
at the time of commencement of supply by the licensee should, in 
the first 12 month period for which figures are available, prove 
to be less than was reasonably expected of such customer and to 
fall to or below the franchise limit, the licensee shall cease to 
supply such customer.

5.	Notwithstanding paragraph 1, the licensee may supply 
electricity to single premises at which the relevant demand in 
megawatts is at or below the franchise limit where such single 
premises are specified for the purposes of this licence by the 
Director with the prior approval of the Secretary of State.

6.	For the purposes of paragraph 2(a), where the average 
calculated as there provided, but ignoring for this purpose the 
reference to normal operating conditions, was no more than 10 per 
cent higher than the average (calculated in the same manner) over 
the twelve-month period preceding the twelve-month period 
referred to in paragraph 2(a), the maximum monthly demands from 
which the average was derived shall be presumed to have occurred 
under normal operating conditions.

7.	Any dispute arising under the provisions of this Condition 
between the licensee and any authorised electricity operator or 
any person requiring a supply of electricity from the licensee 
may be referred to the Director and the Director shall determine 
whether the premises in respect of which the customer requires a 
supply to be given fall within the franchise limit.

8.	In this Condition:

"existing customer" means any person occupying premises to which 
a supply is being given by the licensee or any other authorised 
electricity operator, which person (or any affiliate or related 
undertaking of such person) and premises have been supplied for a 
clear period of at least 12 months prior to the date on which 
application for supply by the licensee is made.
 
"franchise limit" means:
(a)  during the 4 year period from 31st March 1990 to 30th March 
1994 one megawatt; and

(b)  during the succeeding 4 year period from 31st March 1994 to 
30th March 1998 0.1 megawatt.
 
"franchise period" means the period of 8 years commencing on 31st 
March 1990.
 
"new customer" means any person supplied or applying for a supply 
to premises other than an existing customer.
 
"single premises" includes in the case of sites or buildings in 
multi-occupation, each area in respect of which the supply of 
electricity was as at 31st December 1989 or is to is to be 
separately metered and the occupier individually invoiced by the 
licensee or any authorised electricity operator.


Condition 3:	Connection and use of system - requirement to 
offer terms

1.	The licensee shall, subject to paragraphs 6, 7 and 10:

(a)	offer to enter into an agreement to provide a 
connection to the licensee's system with any person who has 
made application for connection to the licensee's system; 
and

(b)	offer to enter into an agreement for the modification 
of a connection to the licensee's system with any person who 
has made application for modification of a connection to the 
licensee's system; and

(c)	offer to enter into any agreement with an person who 
has made application for use of system:

(i)	to accept into the licensee's system at such entry 
point and in such quantities as may be specified in 
application, electricity to be provided by or for the 
person; and

(ii)	to deliver electricity equal in quantity to that 
accepted into the licensee's system (less only any 
losses incurred in the course of transporting such 
electricity through the licensee's system) from such 
exit points on the licensee's system and in such 
quantities as may be specified in the application to 
such person as the person making the application may 
specify.

2.	The licensee shall, subject to paragraphs 6 and 7, offer 
terms for an agreement in accordance with paragraph 1 as soon as 
practicable and in any event not more than the period specified 
in paragraph 8 after receipt by the licensee of an application 
from the person containing all such information as the licensee 
may reasonably require for the purpose of formulating the terms 
of its offer.

3.	Each offer made in accordance with paragraph 1 shall:

(a)	make detailed provision regarding such of the following 
matters as are relevant for the purposes of the agreement:

(i)	the carrying out of works (if any) required for 
the construction or modification of the entry point to 
connect the licensee's system to the transmission 
system of any transmission licensee or the distribution 
system of any public electricity supplier or the system 
for the distribution of electricity of any other person 
authorised to supply electricity or in connection with 
the construction or modification of any exit points for 
the delivery of electricity as specified in the 
application and for the obtaining of any consents 
necessary for such purpose;

(ii)	the carrying out of works (if any) for the 
provision of electrical plant or for the extension or 
reinforcement of the licensee's system which are 
required to be undertaken for the provision of 
connection to, or the making of a modification to a 
connection to, the licensee's system or for provision 
of use of the licensee's system to the person and for 
the obtaining of any consents necessary for such 
purpose;

(iii)	the installation of appropriate meters or 
other apparatus (if any) required to enable the 
licensee to measure electricity being accepted into the 
licensee's system at the specified entry point and 
leaving such system at the specified exit points;

(iv)	the installation of such switchgear or other 
apparatus (if any) as may be required for interrupting 
the use of system should there be a failure by or for a 
person to provide electricity at its entry point on the 
licensee's system for delivery to the person specified 
by the person in its application from the exit points 
on the licensee's system;

(v)	the date by which any works required so as to 
permit access to the licensee's system including for 
this purpose any works for its extension or 
reinforcement) shall be completed (and so that, unless 
otherwise agreed by the person making the application, 
a failure to complete such works by such date shall be 
a material breach of the agreement entitling the person 
to rescind such agreement);

(vi)	the charges to be paid by the person making the 
application for the provision of electrical plant, for 
connections to or modification of connections to, or 
the extension or reinforcement of, the licensee's 
system, for the installation of meters, switchgear or 
other apparatus and for their maintenance, for 
disconnection from the licensee's system and the 
removal of electrical plant, electric lines and meters 
following disconnection and for use of system which 
shall, unless manifestly in appropriate, be set in 
conformity with paragraph 4; and

(b)	contain such provisions as may be appropriate for the 
purposes of the agreement in the circumstances in which it 
is likely to be entered into.

4.	The charges referred to in paragraph 3 to be contained in 
every agreement subject of an offer by the licensee shall be such 
that:

(a)	charges for the provision of electrical plant, 
connection charges, charges for modification of connections, 
charges for disconnection from the licensee's system and the 
removal of electrical plant, electric lines and meters 
following disconnection or any charges for extension or 
reinforcement of the licensee's system or for use of system 
are set at a level which will enable the licensee to recover 
no more than:

(i)	the appropriate proportion (taking account of the 
factors referred to in paragraph 5) of the costs 
directly or indirectly incurred by the licensee; and

(ii)	a reasonable rate of return on the capital 
represented by such costs; and

(b)	charges for the installation of meters, switchgear or 
other apparatus and for their maintenance shall not exceed 
the costs thereof and a reasonable rate of return on the 
capital represented by such costs.

5.	For the purpose of determining an appropriate proportion of 
the costs directly or indirectly incurred in carrying out works, 
the licensee shall have regard to:

(a)	the benefit (if any) to be obtained or likely in the 
future to be obtained by the licensee or any other person as 
a result of the carrying out of such works whether by virtue 
of the provision of electrical plant, the reinforcement or 
extension of the licensee's system or the provision of 
additional entry or exit points on the licensee's system or 
otherwise; and

(b)	the ability or likely future ability of the licensee to 
recoup a proportion of such costs from other persons.

6.	The licensee shall not be obliged pursuant to this Condition 
3 to offer to enter into any agreement where, by reason or the 
capacity of the licensee's system and the use made or reasonably 
expected to be made of it, the licensee would be required to 
expand or reinforce the capacity of the licensee's system.

7.	The licensee shall not be obliged pursuant to this Condition 
3 to offer to enter into any agreement with any person if:

(a)	to do so would be likely to involve the licensee:

(i)	in breach of the Grid Code of any transmission 
licensee; or

(ii)	in breach of the Distribution Code of any public 
electricity supplier; or

(iii)	in breach of the Electricity Supply 
Regulations 1988 or any regulations made under Section 
29 of the Act; or

(iv)	in breach of any other enactment relating to 
safety or standards applicable to the licensee's 
system; or

(b)	the person does not undertake to be bound, insofar as 
applicable, by the terms of the Codes referred to in sub-
paragraphs (a)(i) and (a)(ii) above, as from time to time in 
force.

8.	For the purpose of paragraph 2, the period specified shall 
be:

(a)	in the case of persons seeking use of system only, 28 
days; and

(b)	in the case of persons seeking connection or 
modification of an existing connection or seeking use of 
system in conjunction with connection, 3 months.

9.	The licensee shall within 28 days following receipt of a 
request from any person, give or send to such person such 
information in the possession of the licensee as may be 
reasonably required by such person or the purpose of completing 
paragraph 8 of Part 1 and paragraphs 2(v) and (vi) of Part 2 of 
Schedule 2 to the Electricity (Application for Licences and 
Extensions of Licences) Regulations 1990 or such provisions to 
like effect contained in any further regulations then in force 
made pursuant to Sections 6(3), to the extent that, the Director 
so directs and the licensee shall comply with any such direction.

10.	Paragraphs 1 to 9 inclusive above shall apply only if, and 
to the extent that, the Director so directs and the licensee 
shall comply with any such direction.


Condition 3A:	Connection and use of system - functions of the 
Director

1.	If, after a period which appears to the Director to be 
reasonable for the purpose, the licensee has failed to enter into 
an agreement with any person entitled to claiming to be entitled 
thereto pursuant to an application in accordance with Condition 
3, the Director may, pursuant to Section 7(3) of the Act, on the 
application of such person or the licensee, settle any terms of 
the agreement in dispute between the licensee and the person in 
such manner as appears to the Director to be reasonable having 
(insofar as relevant) regard, in particular, to the following 
considerations:

(a)	that the person should pay to the licensee the whole or 
an appropriate proportion (as determined in accordance with 
paragraph 5 of Condition 3) of the costs directly or 
indirectly incurred by the licensee in the carrying out of 
any works or in providing or doing any other thing under the 
agreement in question calculated in accordance with the 
principles set out in paragraph 4 of Condition 3 together 
with a reasonable rate of return on the capital represented 
by such costs;

(b)	that the performance by the licensee of its obligations 
under the agreement should not cause it to be in breach of 
any of the Conditions;

(c)	that any methods by which the licensee's system is 
connected to the transmission system of any transmission 
licensee or the distribution system of any public 
electricity supplier or the system for the distribution of 
electricity of any other person authorised to supply 
electricity accord with good engineering principle sand 
practices;

(d)	that the terms and conditions of agreements entered 
into by the licensee pursuant to an application in 
accordance with Condition 3 should be, so far as 
circumstances allow, as similar in substance and form as is 
practicable.

2.	If the person wishes to proceed on the basis of the 
agreement as settled by the Director, the licensee shall 
forthwith enter into and implement such agreement in accordance 
with its terms.

3.	If the licensee proposes to vary the contractual terms of 
any agreement for connection to, or modification of a connection 
to, the licensee's system or for use of system entered into 
pursuant to Condition 3 or this Condition in any manner provided 
for under such agreement, the Director may, at the request of the 
licensee or other party to such agreement, settle any dispute 
relating to such variation in such manner as appears to the 
Director to be reasonable.

Condition 4:	Compliance with Scottish Grid Codes

1.	The licensee shall comply with the provisions of the Grid 
Code of each Scottish transmission licensee insofar as applicable 
to it.

2.	The Director may (following consultation with such Scottish 
transmission licensees as the Director shall consider 
appropriate) issue directions relieving the licensee of its 
obligation under paragraph 1 in respect of such parts of the Grid 
Code of any Scottish transmission licensee and to such extent as 
may be specified in those directions.

3.	In this Condition

"authorised activities" means the activities which the licensee 
is authorised by this licence to carry on.


Condition 5:	Compliance with Scottish Distribution Codes

1.	The licensee shall comply with the provisions of the 
Distribution Code of each Scottish public electricity supplier 
insofar as applicable to it.

2.	The Director may (following consultation with such Scottish 
public electricity suppliers as the Director shall consider 
appropriate) issue directions relieving the licensee of its 
obligation under paragraph 1 in respect of such parts of the 
Distribution Code of any Scottish public electricity supplier and 
to such extent as may be specified in those directions.


Condition 6:	Compliance with Trading Code

1.	The licensee shall comply with the provisions of the Trading 
Code insofar as applicable to it during any period that the 
license is a member of the trading system established by the 
Trading Code, including any requirements thereunder for the 
Director's approval or consent, for compliance with directions 
issued by the Director or relating to determinations made by the 
Director.

2.	The Director may (following consultation, with such members 
of the trading system established by the Trading Code as the 
Director shall consider appropriate) issue directions relieving 
the licensee of its obligation under paragraph 1 in respect of 
such parts of the Trading Code and to such extent as may be 
specified in those directions.


Condition 7:	Licensee's system planning

1.	The licensee shall plan and develop each part of the 
licensee's system in accordance with a standard not less than the 
relevant standard insofar as applicable to it, or such standard 
of planning as the licensee may, following consultation with such 
(if any) authorised electricity operators as the Director shall 
consider appropriate and with the approval of the Director, adopt 
from time to time. 

2.	The Director may (following consultation with the licensee 
and such other (if any) authorised electricity operators as the 
Director shall consider appropriate) issue directions relieving 
the licensee of its obligation under paragraph 1 in respect of 
such parts of the licensee's system and to such extent as may be 
specified in the directions.

3.	In this Condition: 

"relevant standard" means, in relation to each part of the 
licensee's system, whichever of the following standards is 
applicable to that part namely:
 
 (i) the standard in accordance with which the transmission 
licensee within whose authorised area that part is situated is 
required under the licence held by it under Section 6(1) (b) of 
the Act to plan and develop its transmission system; or

(ii) the standard in accordance with which the public electricity 
supplier within whose authorised area that part is situated is 
required under the licence held by it under Section 6(1) (c) of 
the Act to plan and develop its distribution system.


Condition 8:	Generation security standard

1.	The licensee shall make arrangements sufficient to meet the 
generation security standard.

2.	Not later than 3 months before the end of each financial 
year, commencing with the financial year ending on 31 March 1992, 
the licensee shall provide to the Director a statement complying 
with the provisions of paragraphs 3 and 4.

3.	The statement to be provided to the Director under paragraph 
2 shall:

	(a)	be signed by 2 Directors of the licensee;

	(b)	describe the arrangements made or to be made by the 
licensee to meet the generation security standard in each of 
the 7 succeeding financial years;

	(c)	state the planning margin or margins adopted by the 
licensee for the purpose of the above arrangements and set 
out the methodology and calculations used in arriving at 
such margin or margins;

	(d)	refer to data, assumptions and demand forecasts 
(including insofar as relevant those relating to diversity 
of demand, own generation, arrangements for trading energy 
and capacity with other persons, arrangements with relevant 
purchasers, including those permitting interruption and 
reduction of supply, forecast maximum demand from relevant 
purchasers, the maximum demand which the licensee could meet 
without failing to meet the generation security standard, 
contracted availability of generation, and load management 
(if any) of relevant purchasers); and 

	(e)	include such other matters as the Director shall 
specify in directions issued by the Director to the licensee 
for the purpose of this Condition not later than 6 months 
before the end of the financial year in which the statement 
is provided. 

4.	The licensee shall upon request by the Director provide to 
the Director such information as the Director may require for the 
purpose of monitoring compliance with this Condition and to 
enable the Director (having regard to his statutory duties) to 
review the operation of the generation security standard. 

5.	The licensee shall not make or agree any alteration other 
than an alteration to which paragraph 7 applied, to the 
arrangements described in any statement provided to the Director 
under paragraph 2 as having been made by the licensee to meet the 
generation security standard for the first financial year covered 
by such statement. 

6.	The licensee shall:

	(a)	procure that, except to the extent that the Director 
shall otherwise approve, arrangements described in any 
statement provided to the Director under paragraph 2 as 
failing to be made by the licensee to meet the generation 
security standard for the first financial year covered by 
such statement shall be made; and

	(b)	not make or agree any alteration, other than an 
alteration to which paragraph 7 applied, to the arrangements 
so made. 

7.	This paragraph applied to an alteration which the Director 
considers is unlikely to result in the licensee failing to meet 
the generation security standard. 

8.	The licensee shall not enter into any contract for the 
supply of electricity if the entering into of the contract would 
cause demand from relevant purchasers in the first year covered 
by the statement most recently provided to the Director under 
paragraph 2 to exceed the maximum demand which the licensee can 
meet in that year without failing to meet the generation security 
standard, as referred to in such statement, unless the Director 
shall consider that the entering into of the contract is unlikely 
to result in the licensee failing to meet the generation security 
standard. 

9.	In the event that the Director, after consultation with the 
licensee, shall at any time or from time to time issue a 
direction to the licensee for the purpose of this Condition to 
the effect that, in the opinion of the Director, it is desirable 
that the licensee make arrangements such as are specified in the 
direction to meet the generation security standard, then the duty 
imposed by paragraph 1 shall not be capable of being discharged 
by the licensee after such date as shall be specified for the 
purpose in the direction except by the licensee making the 
arrangements so specified.

10.	The duty of the licensee under paragraph 1 may, in relation 
to relevant purchasers whose premise are located in isolated 
areas, be discharged by the making of arrangements sufficient to 
meet a standard of generation security (other than the generation 
security standard) agree between the licensee and the Director.

11.	The provisions of this Condition are without prejudice to 
the duties of the licensee under the Electricity Supply 
Regulations 1988.

12.	In this Condition: 

"generation security standard:" means:
(a)  such standard of generation security as will ensure: 
 
 (i)  that the supply of electricity to relevant purchasers will 
not be discontinued in more than 9 years in any period of 100 
years; and
 
 (ii)  that the voltage or frequency of electricity supplied to 
relevant purchasers will not be reduced below usual operational 
limits in more than 30 years in any period of 100 years

by reason of insufficiency of electricity generation available 
for the purposes of supply by the licensee to its relevant 
purchasers at the times of annual system peak demand; and
 (b)  sufficient electricity generation being available for the 
purposes of supply by the licensee to its relevant purchasers at 
times other than times of annual system peak demand to ensure 
that the standard of generation security at each such time will 
be not less than that referred to in sub-paragraph (a) above for 
times of annual system peak demand. 
 
"relevant purchaser" means any purchaser from the licensee 
entitled and requiring at any time to be supplied by the licensee 
at any premises but shall exclude:
 
 (a)  a purchaser under an interruptible contract or a contract 
containing load management terms to the extend that supplies to 
that purchaser may be interrupted or reduced in accordance with 
he terms of that contract; and 
 
 (b)  a purchaser whose premises are within an authorised area 
for which the licensee is the public electricity supplier. 

 
"contract" includes an agreement or arrangement (whether or not 
constituted or evidenced by any written document).
 
"contract for the supply of electricity" Includes any contract 
which amends another contract so as to provide for the licensee 
to supply quantities of electricity in excess of that supplied 
under the last mentioned contract. 


Condition 9:	Security arrangements

1.	If so directed in directions issued by the Director for the 
purposes of this Condition the licensee shall, not later than 
such date as it shall be directed so to do in the directions, 
enter into an agreement designed by the Secretary of State for 
the purposes of this Condition relating to compliance with 
directions issued by the Secretary of State under Section 34 
and/or Section 35 of the Act. 

2.	The licensee shall comply with and perform its obligations 
under any agreement which it enters into pursuant to paragraph 1. 


Condition 10:	Health and safety of employees

It shall be the duty of the licensee to act together with other 
licensees to consult with appropriate representatives of the 
employees for the purpose of establishing and maintaining an 
appropriate machinery or forum for the joint consideration of 
matters of mutual concern in respect of the health and safety of 
persons employed by those licensees.


Condition 11:	Provision of information to the Director

1.	Subject to paragraphs 2 and 3, the licensee shall furnish to 
the Director, in such manner and at such times as the Director 
may require, such information and shall procure and furnish to 
him such reports, as the Director may consider necessary in the 
light of the Conditions or as he may require for the purpose of 
performing: 

	(a)	the functions assigned to him by or under the Act; and 

	(b)	any functions transferred to him under the Act. 

2.	The licensee may not be required by the Director to furnish 
him under this Condition with information for the purpose of the 
exercise of his functions under Section 48 of the Act. 

3.	The licensee may not be required by the Director to furnish 
him under this Condition with any information required in 
relation to an enforcement matter which the licensee could not be 
compelled to produce or give under Section 28 (3) of the Act.

4.	The powers of the Director to call for information under 
paragraph 1 are in addition to the power of the Director to call 
for information under or pursuant to any other Condition.

5.	In paragraphs 1 to 4, "information" shall include any 
documents, accounts, estimates, returns or reports (whether or 
not prepared specifically at the request of the Director) of any 
description specified by the Director. 

6.	The licensee shall, if so requested by the Director, give 
reasoned comments on the accuracy and text of any information and 
advice (so far as relating to the supply of electricity 
authorised by this licence) which the Director proposes to 
publish pursuant to Section 48 of the Act. 


Condition 12:	Payment of fees

1.	The licensee shall, at the times stated hereunder, pay to 
the Director fees of the amount specified in, or determined 
under, the following paragraphs of this Condition.

2.	Within 30 days after the grant of this licence but, in any 
event before 2 May 1991 the licensee shall pay to the Director a 
fee which is aggregate of the following amounts:

	(a)	an amount which is a proportion, as determined by the 
Director of the amount estimated by the Director, according 
to a method which has previously been disclosed in writing 
to the licensee, as likely to be his costs during the coming 
year in the exercise of his general functions under the Act 
in relation to the holders of licences granted under Section 
6(1) and 6(2) of the Act; 

	(b)	an amount which is a proportion as determined by the 
Director (in consultation with the Monopolies Commission) as 
having been incurred in the calendar year immediately 
preceding the 1st April in question by the Monopolies 
Commission in connection with references made to it under 
Section 12 of the Act with respect to this licence or any 
other licence issued under Section 6(2) of the Act; and

	(c)	the difference (being a positive or a negative amount), 
if any, between: 

	(i)	the amount of the fee paid by the licensee in 
respect of the year immediately preceding the lst April 
in question; and 

	(ii)	the amount which that fee would have been in 
respect of that year had the amount comprised therein 
under sub-paragraph (a) above (or, where that year 
commenced on 1 April 1991 the amount comprised therein 
which was attributable to the matters referred to in 
that sub-paragraph) been calculated by reference to the 
total costs of the Director and the proportion thereof 
actually attributable to the licensee (such total costs 
being apportioned as determined by the Director 
according to a method previously disclosed in writing 
to the licensee)

	and the fee shall be paid by the licensee to the Director 
within one month of the Director giving notice to the 
licensee of its amount if that notice is given within 6 
months of the beginning of the year in respect of which the 
fee is payable. 


Condition 13:	Compulsory acquisition of land etc.

1.	All the powers and rights conferred by or under the 
provisions of Schedule 3 of the Act (compulsory acquisition of 
land etc.) shall have effect in relation to the licensee to the 
extent that they are required for the installation, maintenance, 
removal or replacement of the licensee's system or any part 
thereof which are necessary to enable the licensee to supply 
electricity to the premises specified in Schedule 1 or this 
licence.

2.	Paragraph 1. shall cease to have effect on 31 March 1994.


Condition 14:	Powers to carry out road works etc.

1.	For the purposes of enabling the licensee to carry on the 
authorised activities, the powers and rights conferred by or 
under the provisions of Schedule 4 to the Act (powers to carry 
out street work etc.) shall have effect and may, subject to 
paragraph 2 below, be exercised by carrying out works in relation 
to, or in pursuance of, the installation, inspection, 
maintenance, adjustment, repair, alteration, replacement and 
removal of: 

	(a)	electric lines which are necessary to enable the 
licensee to supply electricity to premises specified in 
Schedule 1 below;

	(b)	electrical plant associated with such lines; and 

	(c)	any structures for housing or covering such lines or 
plant. 

2.	Works which are under, over, in, on, along or across any 
road, which for the purposes of the Roads (Scotland) Act 1984, 
constitutes a public road, may be undertaken in pursuance of 
paragraph 1 above subject to the following conditions:

	(a)	that such works shall not be carried out except with 
the consent, which shall not unreasonably be withheld, of 
the roads authority and in accordance with such reasonable 
conditions as may be attached to such consent; 

	(b)	that any question as to whether or not a consent of 
roads authority is unreasonably withheld, or as to the 
reasonableness of conditions attached to such consent, shall 
be determined by a single arbiter to be appointed: 

		(i)	by agreement between the licensee and the roads 
authority; or 

	(ii)	in default of such agreement, by the Director on 
the application of either party. 

3.	In this Condition: 

"authorised activities" had the meaning given in paragraph 3 of 
Condition 4.

4.	Paragraph 1. shall cease to have effect on 31 March 1994.


SCHEDULE 1

Specific Premises

All non-domestic premises having a maximum demand over 1 MW in 
the authorised areas as at 31 March 1990 of the following public 
electricity suppliers: 

Scottish Power plc
Scottish Hydro-Electric plc


SCHEDULE 2

Terms as to revocation

1.	The Director General may at any time revoke this licence by 
not less than 30 days' notice in writing to the licensee: 

	(a)	if the licensee agrees in writing with the Director 
that this licence should re revoked;

	(b)	if any amount payable under Condition 14 is unpaid 30 
days after it has become due and remains unpaid for a period 
of 14 days after the Director has given the licensee notice 
that the payment is overdue.  Provided that no such notice 
shall be given earlier than the sixteenth day after the day 
on which the amount payable became due; 

	(c)	if the licensee fails to comply with a final order 
(within the meaning of Section 25 of the Act) or with a 
provisional order (within the meaning of that Section) which 
has been confirmed under that Section and which (in either 
case) has been made in respect of a contravention or 
apprehended contravention of any of the Conditions or of any 
relevant requirement (within the meaning of that Section) 
imposed on the licensee in its capacity as holder of this 
licence and (in either case) such failure is not rectified 
to the satisfaction of the Director within 3 months after 
the Director has given notice of such failure to the 
licensee.  Provided that no such notice shall be given by 
the Director before the expiration of the period within 
which an application under Section 27 or the Act could be 
made questioning the validity of the final or provisional 
order or before the proceedings relating to any such 
application are finally determined; 

	(d)	if the licensee fails to comply with any order made by 
the Secretary of State under Section 56, 73, 74 or 89 of the 
Fair Trading Act 1973 or under Section 10(2) (a) of the 
Competition Act 1980; 

	(d) 	if:

	(i)	none of the premises specified, or of the 
description specified, in Schedule 1 shall have been 
supplied with electricity by the licensee at any time 
during the period of 5 years commencing on the date on 
which this licence comes into force; or 

	(ii)	none of the premises specified, or of the 
description specified, in Schedule 1 shall have been 
supplied with electricity by the licensee at any time 
during any period of 5 years; 

	(f)	if the licensee:

	(i)	is unable to pay its debts (within the meaning of 
Section 123(1) or (2) of the Insolvency Act 1986, but 
subject to paragraph 2 of this Schedule) of if any 
voluntary arrangement is proposed in relation to it 
under Section 1 of that Act or if it enters into any 
scheme of arrangement (other than for the purpose of 
reconstruction or amalgamation upon terms and within 
such period as may previously have been approved in 
writing by the Director);

	(ii)	has a receiver (which expression shall include an 
administrative receiver within the meaning of Section 
251 of the Insolvency Act 1986) of the whole or any 
material part of its assets or undertaking appointed; 

	(iii)	has an administration order under Section 3 
of the Insolvency Act 1986 made in relation to it;

	(iv)	passes any resolution for winding-up other than a 
resolution previously approved in writing by the 
Director; or

	(v)	becomes subject to an order for winding-up by a 
court of competent jurisdiction; or 

	(g)	if the licensee is convicted of having committed an 
offense under Section 39 of the Act. 

2.	(a)	For the purposes of paragraph 1(f) (i) of this Schedule 
Section 123(1) (a) of the Insolvency Act 1986 shall have 
effect as if for "o750" there was substituted "o250,000" or 
such higher figure as the Director may from time to time 
determine by notice in writing to the licensee.

	(b)	the licensee shall not be deemed to be unable to pay 
its debts for the purposes of paragraph 1(f) (i) of this 
Schedule if any such demand as is mentioned in Section 
123(1) (a) of the Insolvency Act 1986 is being contested in 
good faith by the licensee with recourse to all appropriate 
measures and procedures or if any such demand is satisfied 
before the expiration of such period as may be stated in any 
notice given by the Director under paragraph 1 of the 
Schedule.

EXTENSION OF

A SECOND TIER LICENCE TO SUPPLY ELECTRICITY

Whereas on 25 March 1991 the Director General of Electricity 
Supply, in accordance with a general authority ("the authority") 
given by the Secretary of State under sections 6(1) and (2) of 
the Electricity Act 1989 ("the Act") and in exercise of the 
powers conferred by section (6)(2)(a), section 6(6), section 7 
and section 10 of the Act granted a licence ("the licence") to 
Northern Electric plc ("the licensee") (registered in England 
under number 2366942) to supply electricity to the premises 
specified in Schedule 1 to the licence, subject to the conditions 
set out in Part II of the licence and to the terms as to 
revocation specified in Schedule 2 to the licence for the period 
determinable in accordance with paragraph 3 of Part 1 of the 
licence.

The Director General of Electricity Supply, in exercise of the 
powers conferred by the authority and by section 6(2)(b) of the 
Act hereby extends the premises authorised to be supplied by the 
licensee under the licence by the addition to the premises 
specified in the Schedule 1 to the licence of the premises 
specified in the Schedule hereto with effect from 17 January 
1994.


13 January 1994	Dr. Eileen Marshall
authorised on behalf of the
Director General of Electricity Supply

SCHEDULE

Specified Premises

All premises other than those which, during the franchise period, 
have a maximum demand at or below the franchise limit in the 
authorised areas of the following public electricity supply 
companies together with such premises as may, from time to time, 
be specified by the Director (with the approval of the Secretary 
of State) for the purposes of paragraph 5 of condition 2 of this 
licence:

Scottish Power plc
Scottish Hydro-Electric plc

(Words and phrases used or defined in Condition 2 shall have the 
same meaning as when used in this schedule).




Schedule

Condition 2 of each licence which as been granted under Section 
6(2)(a) of the Act (other than the licence granted to London 
Electricity plc) shall be modified by the addition of the 
following 2 paragraphs after paragraph 7 -

7A.	For the purpose of this Condition occupation of any premises 
by an affiliate of a person shall be deemed to be occupation 
by that person.

7B.	(1)	In this paragraph -

"customer B" means the customer for the time being of 
the licensee in respect of premises A;

"permitted quantity" means 10 per cent of the quantity 
of electricity supplied by the licensee to customer B 
in respect of premises A in the relevant year;

"premises A" means a site or building which, if in the 
occupation of a single customer, would be capable of 
being a single premises; and

"relevant year" means the period of 12 months 
commencing on the date upon which the licensee starts 
to supply premises A and (if such supply is provided 
for a continuous period exceeding 12 months) each 
anniversary of that date until such supply shall cease.

(2)	Where during a relevant year - 

(i)	premises A are occupied by more than one person;

(ii)	customer B supplies the other person or persons 
who are in occupation of premises A or supplies one or 
more of such persons who supply the other occupiers;

(iii)	each of the persons referred to in 
subparagraph (ii) who provides a supply is exempt by or 
under an Order under Section 5 of the Act from the 
requirement to hold a licence to supply; and

(iv)	customer B does not supply an aggregate quantity 
of electricity to such other occupiers in any relevant 
year which may reasonably be expected to exceed or 
actually exceeds the permitted quantity,

the occupation of premises A by the persons other than 
customer B shall be deemed to be occupation by customer B.

(3)	The licensee shall, at the request of the public 
electricity supplier in those authorised area premises A are 
situated, provided not more than once in any period of 3 
months in a relevant year, evidence to the supplier that the 
licensee reasonably believes that the aggregate quantity of 
electricity expected to be supplied by customer B during the 
relevant year will not exceed the permitted quantity 
including, where at the date of such request any such supply 
has been provided during the relevant year, evidence as to 
the quantity so supplied.

(4)	Where customer B has supplied a quantity of electricity 
to such other occupiers which in aggregate exceeds the 
permitted quantity, the licensee shall pay to the public 
electricity supplier in whose authorised area premises A are 
situated a sum calculated by multiplying the number of units 
by which the actual supply to such other occupiers exceeds 
the permitted quantity by 5 per cent of the standard tariff 
price per unit charged by that public electricity suppliers 
for customers of the type of types of such other occupiers 
(but excluding any standing charge or other charge not fixed 
solely by reference to the number of units consumed) or in 
the absence of agreement as to the appropriate tariff such 
rate as may be determined by the Director at the request of 
the licensee or the public electricity supplier.

(5)	For the purposes of this paragraph there shall be 
disregarded -

(i)	the quantity of electricity supplied by customer B 
to an occupier of premises A who has a relevant demand 
above the franchise limit;

(ii)	the quantity of electricity supplied to customer B 
equal to the quantity supplied by customer B in 
accordance with subparagraph (1); and

(iii)	the occupation by the occupier (other than 
customer B) reference to in subparagraph (i).

(6)	To the extent that, disregarding subparagraph (2), the 
licensee would have been permitted to provide a supply to 
customer B's premises under this Condition, the provisions 
of this paragraph shall not apply.

Regulation Manager
Northern Electric plc
Carliol House
Market Street
NEWCASTLE UPON TYNE
NE1 6NE

Dear Sir:

MODIFICATION OF LICENCE

Whereas:

(1)	Northern Electric plc ("the licensee") has been 
granted a licence ("the licence") under Section 
6(2) of the Electricity Act 1989 ("the Act") to 
supply electricity to premises in Scotland 
specified or of a description specified in the 
licence subject to the conditions contained in the 
licence;

(2)	In accordance with Section 11(2) of the Act the 
Director General of Electricity Supply ("the 
Director") gave notice of his intention to make 
modifications to the conditions in the licence 
relating to the compulsory acquisition of land, 
etc., and powers to carry out street works, etc., 
by advertising the modifications in the Edinburgh 
Gazette and The Scotsman, requiring any objections 
or representation to the modifications to be made 
to him on or before 23 June 1993;

(3)	The Director has considered the representations or 
objections which were duly made and not withdrawn;

(4)	In accordance with Section 11(4) of the Act the 
Director gave notice of his intention to make the 
modifications to the Secretary of State and has 
not received a direction not to make the 
modifications; and

(5)	The licensee has given his consent to the 
modifications, set out in the Schedule attached 
which the Director proposed to the licence.

	Now in accordance with the powers contained in Section 11(1) 
of the Act and with


SCHEDULE

1.	The following shall be inserted in Substitution for the 
existing Paragraph 2 of Condition 13:

"Paragraph 1 shall cease to have effect on 31 March 1997 or such 
later date as the Director may from time to time direct."

2.	The following shall be inserted in Substitution for the 
existing Paragraph 4 of Condition 14:

"Paragraph 1 shall cease to have effect on 31 March 1997 or such 
later date as the Director may from time to time direct."

SECOND TIER LICENCE TO SUPPLY ELECTRICTY

Northern Electric plc

L/OF/134/2TS

Uncertified copies of this licence are available price 5.20 
pounds sterling payment with order from:
Library
Office of Electricty Regulation
Hagely House
Hagley Road
Birmingham
B16 8QG

Cheques and postal orders should be made payable to Office of 
Electricty Regulatio

EXTENSION OF 
A SECOND TIER LICENCE TO SUPPLY ELECTRICITY

Whereas on 25 March 1991 the Director General of Electricity 
Supply, in accordance with a general authority ("the autority") 
given by the Secretary of State under sections 6(1) and (2) of 
the Electricity Act 1989 ("the Act") and in exercise of the 
powers conferred by section (6)(2)(a), section 6(6), section 7 
and section 10 of the Act granted a licence ("the licence") to 
Northern Electric plc ("the licensee") (registered in England 
under number 2366942) to supply electricity to the premises 
specified in Schedule 1 to the licence, subject to the conditions 
set out in Part II of the licence and to the terms as to 
revocation specified in Schedule 2 to the licence for the period 
determinable in accordance with paragraph 3 of Part 1 of the 
licence.

The Director General of Electricity Supply, in exercise of the 
powers conferred by the authority and by section 6(2)(b) of the 
Act hereby extends the premises authorised to be supplied by the 
licensee under the licence by the addition to the premises 
specified in the Schedule 1 to the licence of the premises 
specified in the Schedulehereto with effect from 17 January 1994.

13 January 1994		Dr. Eileen Marshall
			authorised on behalf of the
			Director General of Electricity Suppl

SECOND-TIER LICENCE TO SUPPLY ELECTRICITY
for
Northern Electric plc

NOTE:  The licenceholder is subject to the environmental 
obligations set out in Scedule 9 (Preservation of Amenity and 
Fisheries) of the Electricty Act 1989

TABLE OF CONTENST

PART I		TERMS OF THE LICENCE
PART II		THE CONDITIONS

1.	Interpretation.
2.	Restriction on supply to certain premises.
3.	Connection and use of system - requirement to offer terms.
3A.	Connection and use of system - functions of the Director.
4.	Compliance with the Grid Code.
5.	Compliance with Distribution Codes.
6.	Pooling and Settlement Agreement.
7.	Licensee's system planning.
8.	Generation security standard.
9.	Security arragements.
10.	Health and safety of employees.
11.	Provision of information to the Director.
12.	Payment of fees.
13.	Compulsory acquisition of land etc
14.	Powers to carry out road works etc
SCHEDULE 1:	Specififed premises
SCHEDULE 2:	Terms as to revocation


SECOND-TIER LICENCE TO SUPPLY ELECTRICITY

PART I:	TERMS OF THE LICENSE

1.	The Director General of Electricity Supply in accordance 
with a general authority given by the Secretary of State 
under Sections 6(1) and (2) of the Electricity Act 1989 
(hereinafter referred to as "the Act") and the exercise of 
the powers conferred by Section 6(2)(a), Section 6(6), and 
Section 7 of the Act hereby licenses Northern Electric Plc 
(registered in England under number 2366942) to supply 
electricity to the premises specified in Schedule 1 below 
during the period specified in paragraph 3 below, subject to 
the Conditions set out in Part II below (hereinafter 
referred to as the "Conditions").

2.	The Conditions are subject to modification or amendment in 
accordance with their terms or with Sections 11, 14, or 15 
of the Act.  The licence is further subject to the terms as 
to revocation specified in Schedule 2.

3.	This licence shall come into force on 1 April 1991 and 
unless revoked in accordance with the provisions of Schedule 
2 shall continue until determined by not less than 25 years' 
notice in writing given by the Director General of 
Electricity Supply to the Licensee, such notice not to be 
served earlier than a date being 10 years after the licence 
comes into force.

Dr. Eileen Marshall
authorised on behalf of the
25 March 1991	Director General of Electricity Supply


PART II:	THE CONDITIONS

Condition 1:	Interpretation

1.	Unless the contrary intention appears, words and expressions 
used in the Conditions shall be construed as if they were in an 
Act of Parliament and the Interpretation Act 1978 applied to them 
and references to an enactment shall include any statutory 
modification or reenactment thereof after the date when this 
licence comes into force.

2.	Any word or expression defined for the purposes of any 
provision of Part I of the Act shall, unless the contrary 
intention appears, have the same meaning when used in the 
Conditions.

3.	In the Conditions unless otherwise the context otherwise 
requires:

"affiliate" in relation to the licensee or any person means any 
holding company or subsidiary of the licensee or such person or 
any subsidiary of a holding company of the licensee or such 
person, in each case within the meaning of Sections 736, 736A and 
736B of the Companies Act 1985 as substituted by Section 144 of 
the Companies Act 1989 and if that section is not in force at the 
date of grant of this licence as if such section were in force at 
such date.
 
"authorised" in relation to any business or activity means 
authorised by licence granted under Section 6 or exemption 
granted under Section 5 of the Act.
 
"authorised electricity operator" means any person (other than 
the licensee) who is authorised to generate, transmit or supply 
electricity and for the purposes of Conditions 3 and 3A shall 
include any person who has made application to be so authorised 
which application has no been refused and any person transferring 
electricity to or from England and Wales across any 
interconnector or who has made application for use of 
interconnector which has not been refused.
 
"connection and use of system agreement" means an agreement under 
which the licensee agrees to provide to any person a connection 
or connections or a modification to an existing connection to the 
licensee's system and/or to any authorised electricity operator, 
use of system to transport electricity on such system, as more 
fully described in Condition 3.
 
"designated" in relation to any agreement or arrangement or code 
or proposal therefor means designated by the Secretary of State 
or on his behalf by such means as he may consider appropriate 
whether for the purposes of any Condition of this licence or 
otherwise, but so that an agreement or arrangement or code or 
proposal therefor so designated may at the discretion of the 
Secretary of State cease to be designated if amended or modified 
in any material respect.
 
"Distribution Code" means in relation to any public electricity 
supplier the Distribution Code required to be drawn up by such 
supplier and approved by the Director as from time to time 
revised with the approval of the Director.
 
"distribution system" means the system consisting (wholly or 
mainly) of electric lines owned or operated by any authorised 
electricity operator and used for the distribution of electricity 
from grid supply points or generation sets or other entry points 
to the point of delivery to customers, and includes any remote 
transmission assets operated by such authorised electricity 
operator and any electrical plant and meters owned or operated by 
the authorised electricity operator in connection with the 
distribution of electricity, but shall not include any part of 
the transmission system.
 
"equivalent megawatt" in circumstances where demand is only 
measured in megavolt amperes means megavolt amperes converted 
into megawatts using for this purpose a power factor of 0.9 
megawatts per megavolt ampere or such other factor as may with 
the approval of the Director be taken as being appropriate having 
regard to electrical characteristics of the supply, and cognate 
expressions shall be construed accordingly.
 
"Fuel Security Code means the document of that title designated 
as such by the Secretary of State as from time to time amended.
 
"generation set" means any plant or apparatus for the production 
of electricity and shall where appropriate include a generating 
station comprising more than one generation set.
 
"Grid Code" means the Grid Code required to be drawn up by the 
Transmission Company and approved by the Director as from time to 
time revised with the approval of the Director.
 
"grid supply point" means any point where electricity is 
delivered to the licensee's system or to the distribution system 
of any authorised electricity operator from the transmission 
system.
 
"interconnectors" means the electric lines and electrical plant 
and meters owned or operated by the Transmission Company solely 
for the transfer of electricity to or from the transmission 
system into or out of England and Wales.
 
"licensee" means Northern Electric plc (registered in England 
under number 2366942) and (where the context so requires) shall 
include any business in respect of which the licensee is the 
successor company.
 
"licensee's system" means the electric lines owned or operated by 
the licensee for the transport of electricity from generation 
sets or grid or bulk supply points to the point of delivery to 
customers, and includes any electrical plant and meters 
associated therewith. 
 
"megawatt" or "MW" includes an equivalent megawatt.
 
"Pooling and Settlement Agreement" means the agreement of that 
title approved (or to be approved) by the Secretary of State or 
by the Director as from time to time amended with the approval of 
the Director (where so required pursuant to its terms) and shall 
where the context permits include the Initial Settlement 
Agreement approved (or to be approved) by the Secretary of State 
(as from time to time amended with the consent of the Secretary 
of State).
 
"related undertaking: in relation to the licensee or any person 
means any undertaking in which the licensee or such person has a 
participating interest as defined by Section 260 of the Companies 
Act 1985 as substituted by Section 22 of the Companies Act 1989 
and if that section is not in force at the date of grant of this 
licence as if such section were in force at such date. 
 
"remote transmission assets: means any electric lines, electrical 
plant or meters owned by the Transmission Company which (a) are 
embedded in the licensee's system or in the distribution system 
of any authorised electricity operator other than the 
Transmission Company and are not directly connected by lines or 
plant owned by the Transmission Company to a sub-station owned by 
the Transmission Company and (b) are by agreement between the 
Transmission Company and the licensee or such authorised 
electricity operator operated under the direction and control of 
the licensee or such authorised electricity operator.
"Retail Price Index" means the general index of retail prices 
published by the Department of Employment each month in respect 
of all items or: 
 
 (a) if the index for any month in any year shall not have been 
published on or before the last day of the third month after such 
month, such index for such month or months as the Director may 
after consultation with the licensee determine to be appropriate 
in the circumstances; or 
 
 (b) if there is a material change in the basis of the index, 
such other index as the Director may after consultation with the 
licensee determine to be appropriate in the circumstances.
 
"Transmission Company" means The National Grid Company plc or any 
other holder for the time being of a licence to transmit 
electricity in England and Wales under Section 6(1)(b) or the 
Act. 
 
"transmission system" means the system consisting (wholly or 
mainly) of high voltage electric lines owned or operated by the 
Transmission Company and used for the transmission of electricity 
from one generating station to a sub-station or to another 
generating station or between sub-stations or to any 
interconnector, and includes any electrical plant and meters 
owned or operated by the Transmission Company in connection with 
the transmission of electricity but shall not include any remote 
transmission assets. 
 
"undertaking" bears the meaning ascribed to that expression by 
Section 259 of the Companies Act 1985 as substituted by Section 
22 of the Companies Act 1989 and if that section is not in force 
at the date of grant of this licence as if such section were in 
force at such date. 
 

4.	Any reference to a numbered Condition (with or without a 
suffix letter) or Schedule is a reference to the Condition (with 
or without a suffix letter) or Schedule bearing that number in 
this licence, and any reference to a numbered paragraph (with or 
without a suffix letter) is a reference to the paragraph (with or 
without a suffix letter) bearing that number in the Condition or 
Schedule in which the reference occurs. 

5.	In construing the Conditions, the heading or title of any 
Condition or paragraph shall be disregarded. 

6.	Where, in the Conditions, any obligation of the licenses is 
required to be performed within a specified time limit that 
obligation shall be deemed to continue after that time limit if 
the licensee fails to comply with that obligation within that 
time limit. 

7.	The provisions of Section 109 of the Act shall apply for the 
purposes of the delivery or service of any documents, directions 
or notices to be delivered or served pursuant to any Condition, 
and directions issued by the Director pursuant to any Condition 
shall be delivered or served as aforesaid. 

Condition 2:	Restriction on supply to certain premises

1.	Save as provided in paragraphs 3 and 5 below the licensee 
shall not during the franchise period supply electricity to any 
single premises at which the relevant demand in megawatts is at 
or below the franchise limit.

2.	In determining for the purposes of this Condition whether 
any single premises falls within the franchise limit the licensee 
shall have regard  to the following bases of assessment:

(a)	in respect of premises occupied by existing customers 
the relevant demand in megawatts shall be calculated as an 
average of the maximum monthly demands under normal 
operating conditions at such single premises supplied by one 
or more authorized electricity operators and/or the licensee 
in the three months of highest maximum demand as recorded 
over the most recent twelve-month period in respect of which 
figures are available; and

(b)	in respect of premises occupied by a new customer 
seeking a supply from the licensee the relevant demand in 
megawatts shall be calculated by reference to the average 
maximum monthly demand which might reasonably be expected in 
the three months of highest maximum demand  over a twelve-
month period at  premises having similar demand 
characteristics to the premises occupied by such new 
customer.

2A.	For the purposes of paragraph 2, if any electricity which 
has been or is to be supplied by the licensee to any single 
premises ("premises A") is or will be on-supplied by another 
person from premises A to one or more single premises ("premises 
B") then:

(a)	if the on-supply to premises B from premises A was made 
on 31 March 1990 by that other person pursuant to an 
agreement for that other person to supply premises B which 
was subsisting on that date that demand at premises B which 
is met by such on-supply from premises A may be regarded as 
part of the relevant demand in megawatts at premises A; and

(b)	save as provided in sub-paragraph (a) above, that 
demand at premises B which is met by such on-supply from 
premises A shall not be regarded as part of the relevant 
demand in megawatts at premises A.

3.	Subject to paragraph 4, if at any time during the franchise 
period the relevant demand in megawatts (calculated in accordance 
with paragraph 2 and 2A above) at any single premises to which a 
supply is given by the licensee in accordance with the provisions 
of this Condition should fall to or below the franchise limit the 
license may, notwithstanding such fact, continue to supply such 
premises without being in breach of this Condition until such 
time as:

(a)	any contract existing between the licensee and the 
customer occupying such premises is determined by effluxion 
of time or otherwise; or

(b)	the supply arrangements between the licensee and the 
customer occupying such premises shall for any other reason 
be terminated.

4.	Save where the Director otherwise agrees, if (having regard 
to the basis of assessment referred to in paragraph 2(b) above) 
the relevant demand in megawatts of a customer who was a new 
customer at the time of commencement of supply by the licensee 
should, in the first twelve-month period for which figures are 
available, prove to be less than was reasonably expected of such 
customer and to fall to or below the franchise limit, the 
licensee shall cease to supply such customer.

5.	Not withstanding paragraph 1, the licensee may supply 
electricity to single premises at which the relevant demand in 
megawatts is at or below the franchise limit where such single 
premises are specified for the purposes of this licence by the 
Director with the prior approval of the Secretary of State.

6.	For the purposes of paragraph 2(a), where the average 
calculated as there provided, but ignoring for this purpose the 
reference to normal operating conditions, was no more than 10 per 
cent higher than the average (calculated in the same manner) over 
the twelve-month period preceding the twelve-month period 
referred to in paragraph 2(a), the maximum monthly demands from 
which the average was derived shall be presumed to have occurred 
under normal operating conditions.

7.	Any dispute arising under the provisions of this Condition 
between the licensee and any authorised electricity operator or 
any person requiring a supply of electricity from the licensee 
may be referred to the Director and the Director shall determine 
whether the premises in respect of which the customer requires a 
supply to be given fall within the franchise limit.

8.	In this Condition:

"existing customer" means any person occupying premises to which 
a supply is being given by the licensee or any other authorised 
electricity operator, which person (or any affiliate or related 
undertaking of such person) and premises have been supplied for a 
clear period of at least 12 months prior to the date on which 
application for supply by the licensee is made.
 
"franchise limit" means:
(a)  during the four year period from 31st March 1990 to 30th 
March 1994 one megawatt; and

(b)  during the succeeding four year period from 31st March 1994 
to 30th March 1998 0.1 megawatt.
 
"franchise period" means the period of eight years commencing on 
31st March 1990.
 
"new customer" means any person supplied or applying for a supply 
to premises other than an existing customer.
 
"single premises" includes in the case of sites or buildings in 
multi-occupation, each area in respect of which the supply of 
electricity was as at 31st December 1989 or is or is to be 
separately metered and the occupier individually invoiced by the 
licensee or any authorised electricity operator.



Condition 3:	Connection and use of system - requirement to 
offer terms

1.	The licensee shall, subject to paragraphs 6, 7 and 11 below, 
offer to enter into an agreement with any authorised electricity 
operator who has made application for use of system:

(a)	to accept into the licensee's system at such entry 
point and in such quantities as may be specified in the 
application, electricity to be provided by or for the 
authorised electricity operator;

(b) 	to deliver electricity equal in quantity to that 
accepted into the licensee's system (less only any 
distribution losses) from such exit points on that system 
and in such quantities as may be specified in the 
application to such person as the authorised electricity 
operator may specify.

(c)	containing terms in accordance with paragraphs 3 or 4 
below and such other terms and conditions as may be 
appropriate for the purposes of the agreement in the 
circumstances in which it is likely to be made. 

2.	The licensee shall, subject to paragraphs 6 and 7 below, 
offer terms for a connection and use of system agreement in 
accordance with paragraph 1 above as soon as practicable and in 
any event not more than the period specified in paragraph 8 below 
after receipt by the licensee of an application from the 
authorised electricity operator containing all such information 
as the licensee may reasonably require for the purpose of 
formulating the terms of his offer.

3.	The licensee's offer made in accordance with paragraph 1 
shall make detailed provision regarding:

(a)	the carrying out of works (if any) required for the 
construction or modification of the entry point to connect 
the licensee's system to the transmission system or to any 
distribution system or in connection with the construction 
or modification of any exit points for the delivery of the 
electricity to be distributed as specified in the agreement, 
and for the obtaining of any consents necessary for such 
purpose;

(b)	the carrying out of works (if any) for the provision of 
electrical plant or for the extension or reinforcement of 
the licensee's system which are required, in the opinion of 
the licensee, to be undertaken for the provision of use of 
the system to the authorised electricity operator and for 
the obtaining of any consents necessary for such purpose;

(c)	the installation of appropriate meters or other 
apparatus (if any) required to enable the licensee to 
measure electricity being accepted into the licensee's 
system at the specified entry point and leaving such system 
at the specified exit points;

(d)	the installation of such switchgear or other apparatus 
(if any) as may be required for interrupting the use of 
system should there be a failure by or for an authorised 
electricity operator to provide electricity at its entry 
point on the licensee's system for delivery to the person 
specified by the authorised electricity operator from the 
exit points on such ;

(e)	the date by which any works required so as to permit 
access to the licensee's system (including for this purpose 
any works to extend or reinforce them) shall be completed 
(time being of essence unless otherwise agreed by the 
authorised electricity operator); and 

(f)	the charges to be paid by the authorised electricity 
operator for the provision of electrical plant, for 
connections to or modification of connections to, or the 
extension or reinforcement of, the licensee's system and for 
use of system shall, unless manifestly inappropriate, be set 
in conformity with paragraph 4 below.

4.	The charges referred to in paragraph 3 to be contained in 
every agreement the subject of an offer by the licensee shall be 
such that:

(a)	charges for the provision of electrical plant, 
connection charges, charges for modification of connections 
or any charges for extension or reinforcement of the 
licensee's system or for use of system are set at a level 
which will enable the licensee to recover no more than:

(i)	the appropriate proportion (taking account of the 
factors referred to in paragraph 5) of the costs 
directly or indirectly incurred by the licensee; and

(ii)	a reasonable rate of return on the capital 
represented by such costs; and

(b)	charges for the installation of meters, switchgear or 
other apparatus and for their maintenance shall not exceed 
the costs thereof and a reasonable rate of return on the 
capital represented by such costs.

5.	For the purpose of determining an appropriate proportion of 
the costs directly or indirectly incurred in carrying out works, 
the licensee shall have regard to:

	(a)	the benefit (if any) to be obtained or likely in the 
future to be obtained by the licensee or any other 
authorised electricity operator as a result of the carrying 
out of such works whether by virtue of the provision of 
electrical plant, the reinforcement or extension of the 
licensee's system or the provision of additional entry or 
exit points on such system or otherwise; and

(b)	the ability or likely future ability of the licensee to 
recoup a proportion of such costs from other authorised 
electricity operators or other persons.

6.	The licensee shall not be obliged pursuant to this Condition 
to offer to enter into any agreement with an authorised 
electricity operator to make connections or to provide use of 
system where, by reason of the capacity of the licensee's system 
and the use made or reasonably expected to be made of it, the 
licensee would be required to expand or reinforce the capacity of 
the licensee's system.

7.	The licensee shall not be obliged pursuant to this Condition 
to offer to enter into any agreement with an authorised 
electricity operator if::

(a)	to do so would be likely to involve the licensee:

(i)	in breach of the Grid Code;

(ii)	in breach of the Distribution Code; 

(iii)	in breach of the Electricity Supply 
Regulations 1988 or any regulations made under Section 
29 of the Act; or

(iv)	in breach of any other enactment relating to 
safety or standards applicable to the licensee's 
system; or

(b)	the person making the application does not undertake to 
be bound, insofar as applicable, by the terms of the 
Distribution Code or the Grid Code from time to time in 
force; or

(c)	the person making the application ceases to be an 
authorised electricity operator.

8.	For the purpose of paragraph 2, the period specified shall 
be:

(a)	in the case of persons seeking use of system only, 28 
days; and

(b)	in the case of persons seeking connection, modification 
of an existing connection or use of system in conjunction 
with connection, three months.

9.	The preceding paragraphs of this Condition shall apply 
mutatis mutandis in the case of any person (not being an 
authorised electricity operator) who wishes to be connected at an 
exit point on the licensee's system. 

10.	The licensee shall within 28 days following receipt of a 
request from any person, give or send to such person such 
information in the possession of the licensee as may be 
reasonably required by such person for the purpose of completing 
paragraph 8 of Part 1 and paragraphs 2(v) and (vi) of Part 2 of 
Schedule 2 to the Electricity (Application for Licences and 
Extensions of Licences) Regulations 1990 or such provisions to 
like effect contained in any further regulations then in force 
made pursuant to Sections 6(3),60 and 64(1) of the Act.

11.	Paragraphs 1 to 10 inclusive above shall apply only if, and 
to the extent that, the Director so directs and the licensee 
shall comply with any such direction.


Condition 3A:	Connection and use of system - functions of the 
Director

1.	If, after a period which appears to the Director to be 
reasonable for the purpose, the licensee has failed to enter into 
an agreement with an authorised electricity operator (or in the 
case of connection at any exit point, any person) entitled or 
claiming to be entitled thereto pursuant to an application in 
accordance with Condition 3, the Director may, pursuant to 
Section 7(3)(c) of the Act, on the application of such authorised 
electricity operator or person or the licensee, settle any terms 
of the agreement in dispute between the licensee and the 
authorised electricity operator or person in such manner as 
appears to the Director to be reasonable having (insofar as 
relevant) regard, in particular, to the following considerations:

(a)	that the authorised electricity operator or person 
should pay to the licensee the whole or an appropriate 
proportion (as determined in accordance with paragraph 5 of 
Condition 3) of the costs directly or indirectly incurred by 
the licensee in the carrying out of any works or in 
providing or doing any other thing under the agreement in 
question together with a reasonable rate of return on the 
capital represented by such costs calculated in accordance 
with the principles  set out in paragraph 4 of Condition 3;

(b)	that the performance by the licensee of its obligations 
under the agreement should not cause it to be in breach of 
any other Conditions of this license;

(c)	that any methods by which the licensee's system is 
connected to the transmission system or to any distribution 
system accords with good engineering principles and 
practices; and

(d)	that the terms and conditions of agreements entered 
into by the licensee pursuant to an application in 
accordance with Condition 3 should be, so far as 
circumstances allow, as similar in substance and form as is 
practicable.

2.	If the authorized electricity operator or person (as the 
case may be) wishes to proceed on the basis of the agreement as 
settled by the Director, the licensee shall forthwith enter into 
and implement such agreement in accordance with its terms.



Condition 4:	Compliance with the Grid Codes

1.	The licensee shall comply with the provisions of the Grid 
Code in so far as applicable to it.

2.	The Director may (following consultation with the  
Transmission Company) issue directions relieving the licensee of 
its obligation under paragraph 1 in respect of such parts of the 
Grid Code and to such extent as may be specified in those 
directions.


Condition 5:	Compliance with Distribution Codes

1.	The licensee shall comply with the provisions of the 
Distribution Code of any public electricity supplier in so far as 
applicable to it.

2.	The Director may (following consultation with any public 
electricity supplier directly affected thereby) issue directions 
relieving the licensee of its obligation under paragraph 1 in 
respect of such parts of the Distribution Code of any public 
electricity supplier and to such extent as may be specified in 
those directions.


Condition 6:	Pooling and Settlement Agreement

1.	The licensee shall be party to and, within 3 months after 
the date on which this licence comes into force (or such longer 
period as may be specified by the Director in directions issued 
for the purposes of this Condition), shall become a pool member 
under and shall in either case comply with the provisions of, the 
Pooling and Settlement Agreement insofar as the same shall apply 
to it in its capacity as a private electricity supplier.

2.	Paragraph 1 shall not apply for so long as the aggregate 
amounts to be supplied by the licensee and any affiliate or 
related undertaking of the licensee and any affiliate or related 
undertaking of the licenses in its or their capacity as a public 
or private electricity supplier do not exceed 500 kW.


Condition 7:	Licensee's system planning

1.	The licensee shall plan and develop the licensee's system in 
accordance with a standard not less than that set out in 
Engineering Recommendation P. 2/5 (October 1978 revision) of the 
Electricity Council Chief Engineers' Conference in so far as 
applicable to it or such other standard of planning as the 
licensee may, following consultation with the Transmission 
Company and any authorised electricity operator liable to be 
materially affected thereby and with the approval of the 
Director, adopt from time to time.

2.	The Director may (following consultation with the licensee 
and, where appropriate, with the Transmission Company and any 
authorised electricity operator liable to be materially affected 
thereby) issue directions relieving the licensee of its 
obligation under paragraph 1 in respect of such parts of the 
licensee's system and to such extent as may be specified in the 
directions


Condition 8:	Generation security standard

1.	The licensee shall make arrangements sufficient to meet the 
generation security standard.

2.	The duty imposed by paragraph 1 shall be discharged either 
by the licensee's complying with the provisions of paragraph 3 
below or by the making by the licensee of such other arrangements 
as may have been previously approved in writing for the purpose 
by the Director.

3.	The licensee may discharge the duty imposed by paragraph 1 
by: 

	(a)	for so long as the relevant condition is met, 
purchasing as a pool member under the terms of the Pooling 
and Settlement Agreement quantities of electricity which are 
at all times sufficient to meet the demands of all 
qualifying customers of the licensee; and 

	(b)	for so long as the relevant condition is met, and save 
by reason of planned maintenance undertaken on the 
licensee's system or in circumstances of force majeure 
affecting either the licensee's system or the quantities of 
electricity delivered into that system, not:

		(i)	making voltage reduction outside statutory limits; 
or 

	(ii)	interrupting or reducing supplies to any 
qualifying customer otherwise than as instructed 
pursuant to the Grid Code by the Transmission Company 
or in accordance with any applicable Distribution Code. 

4.	The relevant condition referred to in paragraph 3 is that 
there should at any relevant time be electricity available 
to be purchased under the terms of the Pooling and 
Settlement Agreement at a price less than the ceiling price. 

5.	The licensee shall upon request by the Director provide to 
the Director such information as the Director may require 
for the purpose of monitoring compliance with this Condition 
and to enable the Director (having regard to his statutory 
duties) to review the operation of the generation security 
standard. 

6.	The provisions of this Condition are without prejudice to 
the duties of the licensee under the Electricity Supply 
Regulations 1988.

7.	In this Condition: 

 
"ceiling price" means such price as would be equal to the Pool 
Selling Price in circumstances where the corresponding Pool 
Purchase Price was an amount equal to the Value of Lost Load.
 
"generation security standard" means such standard of generation 
security as will ensure that:
 
 (a)  the supply of electricity to qualifying customers will not 
be discontinued in more than 9 years in any 100 years; and
 
 (b)  the voltage or frequency of electricity supplied to 
qualifying customers will not be reduced below usual operational 
limits in more than 30 years in any 100 years by reason of 
insufficiency of electricity generation available for the 
purposes of supply by the licensee to its qualifying customers at 
times of annual system peak demand.
 
"Pool Purchase Price" and "Pool Selling Price" shall each have 
the meaning from time to time ascribed to them in Schedule 9 to 
the Pooling and Settlement Agreement. 
 
""qualifying customer" means any purchaser from the licensee but 
shall exclude
 
 (a)  a contract purchaser under an interruptible contract or a 
contract containing load management terms to the extent that 
supplies to that purchaser may be interrupted or reduced in 
accordance with the terms of that  contract; and 
 
 (b)  a customer on special tariff terms which restrict supplies 
to particular time periods to the extent that supplies to that 
customer may be interrupted or reduced in accordance with such 
tariff.
 
"Value of Lost Load" means in respect of the financial year, 
ending 31 March 1991 the sum of 2 pounds sterling  per kWh, in 
respect of each succeeding financial year, the sum which 
corresponds to 2 pounds sterling per kWh as adjusted to reflect 
the percentage change in the Retail Price Index between the index 
published or determined in respect to the December prior to the 
start of that financial year and the index published or 
determined for December 1989.
 

Condition 9:	Security arrangements

1.	The licensee shall comply with the provisions of the Fuel 
Security Code and such provisions shall have effect as if they 
were set out in this licence.


Condition 10:	Health and safety of employees

1.	It shall be the duty of the licensees to act together with 
other licensees to consult with appropriate representatives of 
the employees for the purpose of establishing and maintaining an 
appropriate machinery or forum for the joint consideration of 
matters of mutual concern in respect of the health and safety of 
persons employed by those licensees.


Condition 11:	Provision of information to the Director

1.	Subject to paragraphs 2 and 3, the licensee shall furnish to 
the Director, in such manner and at such times as the Director 
may require, such information and shall procure and furnish to 
him such reports, as the Director may consider necessary in the 
light of the Conditions or as he may require for the purpose of 
performing: 

	(a)	the functions assigned to him by or under the Act; and 

	(b)	any functions transferred to him under the Act. 

2.	The licensee may not be required by the Director to furnish 
him under this Condition with information for the purpose of the 
exercise of his functions under Section 48 of the Act. 

3.	The licensee may not be required by the Director to furnish 
him under this Condition with any information required in 
relation to an enforcement matter which the licensee could not be 
compelled to produce or give under Section 28(3) of the Act. 

4.	The power of the Director to call for information under 
paragraph 1 is in addition to the power of the Director to call 
for information under or pursuant to any other Conditions. 

5.	In paragraphs 1 to 4, "information" shall include any 
documents, accounts, estimates, returns or reports (whether or 
not prepared specifically at the request of the Director) of any 
description specified by the Director. 

6.	The licensee shall, if so requested by the Director, give 
reasoned comments on the accuracy and text of any information and 
advice (so far as relating to the supply of electricity 
authorised by this licence) which the Director proposes to 
publish pursuant to Section 48 of the Act. 


Condition 12:	Payment of fees

1.	The licensee shall, at the times stated hereunder, pay to 
the Director fees of the amount specified in, or determined 
under, the following paragraphs of this Condition.

2.	Within 30 days after the grant of this licence but, in any 
event, before 2 May 1991 the licensee shall pay to the Director 
an initial fee of 250 pounds sterling.

3.	In respect of the year beginning on 1st April 1992 and in 
each subsequent year, the licensee shall pay to the Director a 
fee which is the aggregate of the following amounts: 

	(a)	an amount which is a proportion as determined by the 
Director of the amount estimated by the Director, according 
to a method which has previously been disclosed in writing 
to the licensee, as likely to be his costs during the coming 
year in the exercise of his general functions under the Act 
in relation to the holders of licences granted under Section 
6(1) and 6(2) of the Act;

	(b)	an amount which is a proportion as determined by the 
Director of the amount estimated by the Director (in 
consultation with the Monopolies Commission) as having been 
incurred in the calendar year immediately preceding the lst 
April in question by the Monopolies Commission in connection 
with references made to it under Section 12 of the Act with 
respect to this licence or any other license issued under 
Section 6(2) of the Act; and 

	(c) 	the difference (being a positive or a negative amount), 
if any, between:

	(i)	the amount of the fee paid by the licensee in 
respect of the year immediately preceding the 1st April 
in question; and 

	(ii)	the amount which that fee would have been in 
respect of that year had the amount comprised therein 
under sub-paragraph (a) above (or, where that period 
commenced on 1 April 1991 the amount attributable to 
the maters referred to in that sub-paragraph) been 
calculated by reference to the total costs of the 
Director and the proportion thereof actually 
attributable to the licensee (such total costs being 
apportioned as determined by the Director according to 
a method previously disclosed in writing to the 
licensee)

	and the fee shall be paid by the licensee to the 
Director within one month of the Director giving notice 
to the licensee of its amount if that notice is given 
within six months of the beginning of the year in 
respect of which the fee is payable. 


Condition 13:	Compulsory acquisition of land etc.

1.	All the powers and rights conferred by or under the 
provisions of Schedule 3 of the Act (compulsory acquisition of 
land etc.) shall have effect in relation to the licensee to the 
extent that they are required for the installation, maintenance, 
removal or replacement of the licensee's system or any part 
thereof which are necessary to enable the licensee to supply 
electricity to the premises specified in Schedule 1 of this 
licence.

2.	Paragraph 1 shall cease to have effect on 31 March 1994. 


Condition 14:	Powers to carry out street works etc.

1.	The powers and rights conferred by or under the provisions 
of Schedule 4 to the Act (powers to carry out street works etc.) 
shall have effect and may, subject to paragraph 2 below, be 
exercised by carrying out works in relation to, or in pursuance 
of, the installation, inspection, maintenance, adjustment, 
repair, alteration, replacement and removal of: 

	(a)	electric lines which are necessary to enable the 
licensee to supply electricity to premises specified in 
Schedule 1 below; 

	(b)	electrical plant associated with such lines; and

	(c)	any structures for housing or covering such lines or 
plant. 

2.	Works which are under, over, in, on, along or across any 
street, which for the purposes of the Highways Act 1980 
constitutes a highway or part of a highway maintainable at the 
public expense, may be undertaken in pursuance of paragraph 1 
above subject to the following conditions: 

	(a)	that such works shall not be carried out except with 
the consent, which shall not unreasonably be withheld, of 
the highway authority and in accordance with such reasonable 
conditions as may be attached to such consent; 

	(b)	that any question as to whether or not a consent of 
highway authority is unreasonably withheld, or as to the 
reasonableness of conditions attached to such consent, shall 
be determined by a single arbiter to be appointed: 

		(i)	by agreement between the licensee and the highway 
authority; or 

	(ii)	in default of such agreement, by the Director on 
the application of either party. 

3.	Paragraph 1 shall cease to have effect on 31 March 1994. 


SCHEDULE 1


Specified premises

All non-domestic premises having a maximum demand over 1MW in the 
authorised areas as at 31 March 1990 of the following public 
electricity suppliers: 

East Midlands Electricity plc

Eastern Electricity plc

London Electricity plc

MANWEB plc

Midlands Electricity plc

NORWEB plc

SEEBOARD plc

Southern Electric plc

South Wales Electricity plc

South Western Electricity plc

Yorkshire Electricity Group plc


SCHEDULE 2

Terms as to revocation

1.	The Director may at any time revoke this licence by not less 
than 30 days' notice in writing to the licensee: 

	(a)	if the licensee agrees in writing with the Director 
that this licence should be revoked; 

	(b)	if any amount payable under Condition 12 is unpaid 30 
days after it has become due and remains unpaid for a period 
of 14 days after the Director has given the licensee notice 
that the payment is overdue.  Provided that no such notice 
shall be given earlier than the sixteenth day after the day 
on which the amount payable became due; 

	(c)	if the licensee fails to comply with a final order 
(within the meaning of Section 25 of the Act) or with a 
provisional order (within the meaning of that section) which 
has been confirmed under that section and (in either case) 
such failure is not rectified to the satisfaction of the 
Director within three months after the Director has given 
notice of such failure to the licensee.  Provided that no 
such notice shall be given by the Director before the 
expiration of the period within which an application under 
Section 27 of the Act could be made questioning the validity 
of the final or provisional order or before the proceedings 
relating to any such application are finally determined; 

	(d)	if the licensee fails to comply with any order made by 
the Secretary of State under Section 56, 73, 74 or 89 of the 
Fair Trading Act 1973 or under Section 10(2)(a) of the 
Competition Act 1980;

	(e)	if the licensee:

	(i)	has not within 5 years after the date of this 
licence commenced the supply of electricity to any of 
the premises specified in Schedule 1 above; or

	(ii)	has ceased to supply electricity to all those 
premises for a period of 5 years; 

	(f)	if the licensee: 

	(i)	is unable to pay its debts (within the meaning of 
Section 123(1) or (2) of the Insolvency Act 1986, but 
subject to paragraph 2 of this Schedule) or has any 
voluntary arrangement proposed in relation to it under 
Section 1 of that Act or enters into any scheme of 
arrangement (other than for the purpose of 
reconstruction or amalgamation upon terms and within 
such period as may previously have been approved in 
writing by the Director); 

	(ii)	has a receiver (which expression shall include an 
administrative receiver within the meaning of Section 
251 of the Insolvency Act 1986) of the whole or any 
material part of its assets or undertaking appointed;

	(iii)	has an administration order under Section 8 
of the Insolvency Act 1986 made in relation to it; 

	(iv)	passes any resolution for winding-up other than a 
resolution previously approved in writing by the 
Director; or

	(v)	becomes subject to an order for winding-up by a 
court of competent jurisdiction; or

	(g)	if the licensee is convicted of having committed an 
offence under Section 59 of the Act in making its 
application for this license. 

2.	(a)	For the purposes of paragraph 1(f)(i) of this Schedule 
Section 123(1)(a) of the Insolvency Act 1986 shall have 
effect as if for "750 pounds sterling" there was substituted 
"250,000 pounds sterling" or such higher figure as the 
Director may from time to time determine by notice in 
writing to the licensee.

	(b)	The licensee shall not be deemed to be unable to pay 
its debts for the purposes of paragraph 1(f)(i) of this 
Schedule if any such demand as is mentioned in Section 
123(1)(a) of the Insolvency Act 1986 is being contested in 
good faith by the licensee with recourse to all appropriate 
measures and procedures or if any such demand is satisfied 
before the expiration of such period as may be stated in any 
notice given by the Director under paragraph 1 of the 
Schedule.

3.	The provisions of Section 109 of the Act shall apply for the 
purposes of the service of any notice under this Schedule.