Electricity Act 1994

The regulator must consider an application for the issue of a distribution authority and may give, or refuse to give, the authority.

The regulator may issue the authority only if satisfied—

the applicant is operating, or will operate, the supply network stated in the application; and

the applicant is a suitable person to be a distribution entity; and

the owner or proposed owner of the supply network (whether or not the applicant) is a suitable person to be the owner; and

the applicant meets the additional criteria prescribed under the regulations.

In deciding whether the applicant is a suitable person to be a distribution entity, or the owner or proposed owner of the supply network (whether or not the applicant) is a suitable person to be the owner, the regulator may consider—

the person’s previous commercial and other dealings and the standard of honesty and integrity shown in the dealings; and

any failure by the person to perform commercial or statutory obligations and the reasons for the failure; and

the person’s criminal history; and

if the person is a corporation—the matters mentioned in paragraphs (a) to (c) for persons who are shareholders, directors or holders of other interests in the corporation; and

for the applicant—the applicant’s competence to be a distribution entity; and

additional matters prescribed under the regulations.

A regulation may prescribe matters the regulator must or may consider in deciding the applicant’s competence to be a distribution entity.

In deciding whether to issue the authority, the regulator must consider—

the objects of this Act; and

relevant government policies about environmental and energy issues and the likely environmental effects of the activities proposed to be done under the authority; and

additional matters prescribed under the regulations.

In deciding whether to issue the authority, the regulator may consider additional matters prescribed under the regulations.

In deciding whether to issue the authority, the regulator must not consider matters prescribed by regulation.