Electricity Act 1994

The regulator must consider the application having regard to the objects of this Act and may transfer, or refuse to transfer, the distribution authority.

However, the regulator may transfer the authority only if satisfied—

the proposed transferee will operate the supply network to which the authority relates; and

the proposed transferee is a suitable person to be a distribution entity; and

the proposed transferee meets the additional criteria prescribed under a regulation.

In deciding whether the proposed transferee is a suitable person to be a distribution entity, the regulator may consider the matters mentioned in section 197(3) as if the proposed transferee were applying for the issue of the authority.