Section 7A: Transfer of licences., Electricity Act 1989

A licence—

is capable of being transferred by the licence holder, with the consent of the Authority, in accordance with this section but subject to any term as to transfer contained in the licence;

may include conditions which must be complied with before the licence can be transferred.

A transfer may relate to the whole or any part of the licence.

The reference in subsection (2) to part of a licence is a reference to a part of the activities authorised by the licence (whether described by reference to activities being carried on by the licence holder or to activities which he is authorised by the licence to carry on).

Such consent may be given subject to compliance with such modification or other conditions as the Authority considers appropriate.

In the case of a partial transfer, conditions imposed under subsection (4) may make as respects so much of the licence as is proposed to be retained by the transferor provision different from that made as respects so much of the licence as is proposed to be transferred.

In deciding whether to give its consent to a proposed transfer, the Authority shall apply the same criteria as it would apply if the Authority were deciding whether—

in the case of a general transfer, to grant a corresponding licence to the transferee; or

in the case of a partial transfer—

to grant to the transferee a licence corresponding to so much of the licence as is proposed to be transferred; and

to grant to the transferor a licence corresponding to so much of the licence as is proposed to be retained.

The Authority shall give the Secretary of State not less than 28 days' notice of any proposal to impose a modification condition.

If, before the expiry of the time specified in a notice under subsection (7), the Secretary of State directs the Authority not to impose the condition, the Authority shall comply with the direction.

Before giving consent to the transfer of a licence, the Authority shall give notice—

stating that it proposes to grant consent to the transfer;

stating the reasons why it proposes to give consent; and

specifying the time from the date of publication of the notice (not being less than two months) within which representations or objections with respect to the transfer may be made,

and shall consider any representations or objections that are duly made and not withdrawn.

A notice under subsection (9) shall be given by publishing the notice in such manner as the Authority considers appropriate for bringing it to the attention of persons likely to be affected by the transfer.

Subject to subsection (10C), the Authority shall, following consideration of any representations or objections under subsection (9), give the Secretary of State not less than 28 days' notice of any proposal to give consent to the transfer of the whole or any part of a smart meter communication licence.

If, before the expiry of the time specified in a notice under subsection (10A), the Secretary of State directs the Authority not to give consent, the Authority shall comply with that direction.

Where the Secretary of State does not give a direction under subsection (10B), the Authority may give consent to the transfer of the licence after—

the expiry of the time specified in the notice under subsection (10A); or

if earlier than the time in paragraph (a), the time at which the Secretary of State informs the Authority that no direction will be given under subsection (10B) in relation to the notice.

Subsections (10A) to (10C) do not apply after 1 November 2028.

A purported transfer of a licence shall be void—

if the licence is not capable of transfer or the Authority has not given its consent;

if the purported transfer is in breach of a condition of the licence; or

if there has, before the purported transfer, been a contravention of a condition subject to compliance with which the Authority's consent is given.

An electricity system operator licence may not be transferred to a person unless a licence granted under section 7AA of the Gas Act 1986 is also transferred to the same person at the same time.

A smart meter communication licence may not be transferred to a person unless a licence granted under section 7AB of the Gas Act 1986 is also transferred to the same person at the same time.

Where the holder of a code manager licence is also the holder of a licence under section 7AC of the Gas Act 1986, the code manager licence may not be transferred to a person unless the licence under section 7AC of that Act is transferred to the same person at the same time.

In this section—

"transfer" includes any form of transfer or assignment or, in Scotland, assignation;
"modification condition" means a condition requiring or otherwise providing for the making of modifications to the conditions of a licence.

Section 7A: Transfer of licences.

Discussed in

About this text