Notice under section 11(2) of the Electricity Act 1989

The Director General of Electricity Supply (hereinafter referred to as “the Director”) pursuant to section 11 of the Electricity Act 1989 (hereinafter referred to as “the Act”) hereby gives notice as follows:

  (i) In relation to each of the licences which have been granted under section 6(1)(c) of the Act in respect of an authorised area in England and Wales (hereinafter a “PES licence”), he proposes to make modifications to Conditions 3, 3A, 3B, 3D, 3E, 3G and Schedule 3 (being part of the charge restriction conditions as defined in a PES licence);
  (ii) The reasons why he proposes to make the modifications and their effect were published by the Director in a statement on 16 October 1997;
  (iii) In summary the effect of the modifications will be to amend the charge restriction conditions so that:

      —  from 1 April 1998, the control of charges for the supply of electricity will apply only to domestic customers and to other customers consuming no more than 12,000 kWh per year;
      —  except with the consent of the Director such customers shall continue to be offered the tariffs at present available to them;
      —  for the year commencing 1 April 1998 in respect of such customers

          —  the average price must fall in comparison with the average price obtaining on 1 August 1997 by the following percentage in real terms: being 8.9 for Eastern Electricity plc, 6.3 for East Midlands Electricity plc, 11.8 for London Electricity plc, 5.8 for Manweb plc, 7.1 for Midlands Electricity plc, 4.2 for Northern Electric plc, 3.4 for Norweb plc, 6.0 for Seeboard plc, 3.2 for Southern Electric plc, 8.5 for South Wales Electricity plc, 6.6 for South Western Electricity plc and 3.7 for Yorkshire Electricity Group plc;
          —  the prices charged to those on standard domestic tariff who consume 3,300 kWh in that year must fall by the same percentage in real terms;
          —  the prices charged to other domestic customers must fall by 3 per cent. in real terms;
          —  the prices charged to non-domestic customers must not increase in real terms;
          —  no standing charge may be increased in real terms;
          —  the prices to customers on a domestic prepayment tariff must be reduced by the same proportion as prices on the comparable domestic credit tariff;

      —  for the subsequent year, prices must be reduced by 3 per cent. in real terms;
      —  adjustments may be made to prices to take account of changes in the rate of fossil fuel levy, over-recovery in previous years, delay in introducing competition or unexpected movement in costs;
      —  from 1 April 1998, the allowed maximum average charge per unit of electricity distributed by each licence holder

          —  shall be increased to account for the costs of establishing and operating certain services which each licence holder is required by its PES licence to undertake in order to facilitate competition in electricity supply;
          —  may be adjusted downwards in circumstances: in which the introduction of competition in electricity supply to any part of Great Britain is delayed beyond April 1998; and in which the phased introduction of competition into the authorised area of each licence holder is delayed at any stage beyond July 1998.

  A copy of the statement of 16 October 1997 and of the present draft of the modifications can be obtained (free of charge) from the Office of Electricity Regulation.
  Any representations or objections to the proposed modifications may be made on or before 20 February 1998 to the Director at the Office of Electricity Regulation, Hagley House, 83-85 Hagley Road, Edgbaston, Birmingham B16 8QG.
A. J. Walker, authorised on the behalf of the Director 23rd January 1998.