The Authority may grant any of the following licences—
Subject to subsection (2ZA), the Secretary of State may grant an electricity system operator licence.
The first electricity system operator licence may only be granted by the Secretary of State.
For the purposes of this section, references to the grant of an electricity system operator licence include the giving of a direction under section 167 of the Energy Act 2023 in respect of a transmission licence.
Subject to subsection (1B), the Secretary of State may grant a smart meter communication licence.
The Secretary of State may not grant a smart meter communication licence after 1 November 2018.
The first smart meter communication licence may only be granted by the Secretary of State.
The same person may not be the holder of both a distribution licence and —
A person may not be granted an electricity system operator licence unless the same person—
The same person may not be the holder of an interconnector licence and the holder of a licence falling within any of paragraphs (a) to (da) of subsection (1).
A person may not be granted a smart meter communication licence unless the same person is at the same time granted a licence under section 7AB of the Gas Act 1986.
Where a designated electricity licence document is also a designated gas licence document, a person may not be granted a code manager licence in relation to the document unless the same person is at the same time granted a licence under section 7AC of the Gas Act 1986.
A supply licence may authorise the holder to supply electricity—
The Authority may, with the consent of the holder of a supply licence, modify terms included in the licence in pursuance of subsection (3) so as to extend or restrict the premises to which the licence holder may give a supply of electricity.
A distribution licence may authorise the holder to distribute electricity in any area, or only in an area specified in the licence.
The Authority may, with the consent of the holder of a distribution licence, modify terms included in the licence in pursuance of subsection (5) so as to extend or restrict the area within which the licence holder may distribute electricity.
A transmission licence may authorise the holder to participate in the transmission of electricity in any area, or only in an area specified in the licence.
The Authority may, with the consent of the holder of a transmission licence, modify terms included in the licence in pursuance of subsection (6A) above.
An interconnector licence authorising participation in the operation of an electricity interconnector—
The Authority may, with the consent of a relevant licensee nuclear company (within the meaning of Part 1 of the Nuclear Energy (Financing) Act 2022 (nuclear energy generation projects: regulated asset base model)), modify terms included in the company's generation licence.
A licence, and any modification of a licence under subsection (4), (6) , (6B) or (6D), shall be in writing.
A licence shall, unless previously revoked in accordance with any term of the licence and subject to, continue in force for such period as may be specified in or determined by or under the licence.
If a person who holds an electricity system operator licence ceases at any time to hold a licence under section 7AA of the Gas Act 1986, the person is to be treated as ceasing to hold the electricity system operator licence at the same time.
In this Part—
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
"electricity distributor" means any person who is authorised by a distribution licence to distribute electricity except where he is acting otherwise than for purposes connected with the carrying on of activities authorised by the licence;
...
"electricity supplier" means any person who is authorised by a supply licence to supply electricity except where he is acting otherwise than for purposes connected with the carrying on of activities authorised by the licence.
In this section—
"designated electricity licence document" has the same meaning as in section 4;
"designated gas licence document" has the same meaning as in section 5 of the Gas Act 1986;
"premises" has the same meaning as in section 4.