§
4G. In this Part of this Schedule—
effective date" has the meaning given by paragraph 4B(2);
existing" in relation to an electricity licence, means in force immediately before the passing of this Act;
the supplier" means the person who makes a transfer scheme;
transferee" means the transferee under a transfer effected by paragraph 4B;
transfer scheme" means a scheme under paragraph 2.
§ 4H.—(1) For the purposes of this Part of this Schedule a company is an associate of the supplier if—
- (a) the company is a wholly owned subsidiary of the supplier;
- (b) the supplier is a wholly owned subsidiary of the company; or
- (c) the company and the supplier are both wholly owned subsidiaries of another company;
§ (2) The references in sub-paragraph (2) to a wholly owned subsidiary shall be construed in accordance with section 736 of the Companies Act 1985.").
§ The noble Lord said: In rising to move Amendment No. 313, I shall speak also to Amendments Nos. 314 to 316 and 352. This is a short group with long amendments. They introduce transitional provisions.
§ Amendment No. 313 is a technical amendment which deals with the practicalities of separating electricity supply and distribution businesses. Its aim is to facilitate the legal separation of supply and distribution businesses required by the Bill. It gives those suppliers who will also be carrying out distribution activities an option to make transfer schemes to allocate property, rights and liabilities between new companies. There is no duty to use a scheme, which we think would be inappropriate given the diverse nature of the market and the different levels of operational separation which have already been achieved.
§ Transfer schemes will be subject to the Secretary of State's approval. Our overall objective has been to introduce flexibility to take account of the more complex ownership and structure of the electricity sector now. We also wished to ensure that schemes recognised the interests of third parties.
§ Through consultation with industry, we have sought in this amendment to provide for various possibilities for companies to restructure their businesses compatible with the regulator's requirements on business separation.
408§ Amendment No. 314 provides for the Secretary of State to make licensing schemes in respect of electricity and gas licences. These schemes are needed in order to ensure continuity of existing licences when the licensing provisions of the Bill come into force.
§ Amendment No. 315 provides that, at the point where Section 18 of the Electricity Act is repealed by Clause 44 of the Bill, customers who are taking a tariff supply under that section from a public electricity supplier can be deemed to be subject to a contract with the supplier who is a successor to the public electricity supplier in question. Amendment No. 316 contains transitional provisions that define the "first financial year" of the authority and the new council; set out the periods to be covered by the initial forward work programmes of the two bodies; and set out the arrangements for producing the final annual reports of the outgoing directors general and Gas Consumers' Council.
§ Amendment No. 352 makes provision that a commencement order made by the Secretary of State may contain transitional provisions and savings relating to the provisions being brought into force by the order. I beg to move.
§ On Question, amendment agreed to.
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Lord McIntosh of Haringey moved Amendments Nos. 314 to 317:
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