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This document lays out the government’s response to a consultation that was run on proposed changes to electricity codes and licences. The modifications to the Balancing and Settlement Code, the CUSC, the STC and the Grid Code, along with the National Grid Transmission Licence, are necessary to implement EMR and bring in the changes that are being made as a result of the secondary legislation which is being laid before Parliament.
The government is seeking views on the consequential industry code and licence modifications required as a result of the implementation of Electricity Market Reform. The change documents attached to this consultation document set out drafts of the amendments considered to enable the effective delivery of EMR.
To implement EMR legislation successfully, once agreed by Parliament and in force, these changes will need to be integrated within the appropriate existing industry codes, licences and other documents. This includes industry licences, controlled by the Authority, Ofgem, which allow a licensee to take part in or carry out activities within the electricity sector such as transmission, distribution, interconnection, generation and supply.
Industry codes of practice will also require updating as these underpin the electricity markets, and licensees are required to maintain, become a party to, and/or comply with such codes in accordance with the conditions of their licence.
This consultation will close on 13 February 2014, with the intention for final modifications to come into force at the same time as the implementing legislation for EMR (Summer 2014).