Electricity Supply Industry Act 1995

The Regulator must consider an application for the issue of a licence and may issue, or refuse to issue, the licence.

The Regulator may only issue a licence if satisfied that – the applicant is a suitable person to hold the licence; and in the case of a licence authorising the generation of electricity, the generating plant (or proposed generating plant) will generate electricity of the appropriate quality for the relevant transmission system or distribution network; and in the case of a licence authorising the operation of a transmission system, the transmission system has (or the proposed transmission system will have) the necessary capacity for transmitting electricity safely; and in the case of a licence authorising the operation of a distribution network, the distribution network has (or the proposed distribution network will have) the necessary capacity for distributing electricity safely; and in the case of a licence authorising other operations in the electricity supply industry for which a licence is required under the regulations, the applicant meets any special requirements imposed by the regulations for the holding of the licence; and in the case of a licence of any class, the grant of the licence would be consistent with criteria (if any) prescribed by regulation for a licence of the relevant class.

In deciding whether an applicant is a suitable person to hold a licence, the Regulator may consider – the applicant's previous commercial and other dealings and the standard of honesty and integrity shown in those dealings; and the financial, technical and human resources available to the applicant; and the officers and, if applicable, major shareholders of the applicant and their previous commercial and other dealings and the standard of honesty and integrity shown in those dealings (including breaches of statutory and other legal obligations); and other matters prescribed by regulation.