Part 7: Market Reform and Consumer Protection Section 205: Licence required for operation of multi-purpose interconnector
Participating in the operation of a multi-purpose interconnector cannot easily be licensed at present as it is not currently addressed in the Electricity Act 1989. This section amends the Electricity Act 1989 to ensure that a person who operates a multi-purpose interconnector will be required to hold a licence or an exemption. A definition of ‘multi-purpose interconnector’ is introduced into Section 4 of the Electricity Act 1989 (by way of a new subsection (3EA)), alongside a description of what it means to participate in the operation of a multi-purpose interconnector (by way of a new subsection (3CA)). The amendments also, as a consequence of amending Section 4(1) of the Electricity Act 1989, make unauthorised participation in the operation of a multi-purpose interconnector a prohibited activity. The wording of new subsection (3CA) of section 4 ensures that persons already holding an interconnector or offshore transmission licence are not caught by that prohibition. In addition, the new definition of a multi-purpose interconnector covers the range of technologies involved in their operation. For example, new subsection (3EA)(b)(ii) describes conveyance "between a generating station and a substation" which also captures an MPI which includes multiple generating stations and/or substations (including demand stations).
	By way of a new subsection (2AA) of section 6 of the Electricity Act 1989, the holder of an MPI licence may not also be a holder of a licence falling within paragraphs (a) to (e) of section 6(1) of the Electricity Act 1989. This ensures a level of separation between licence holders that will enable GEMA to properly regulate licensed activities.
	The exact operational requirements and level of business separation required between holders of MPI licences and holders of different licence types will be determined by GEMA.
	The intention of this section is not to create a stricter separation between licence holders than is necessary for regulatory purposes. In particular, the intention is not to impose strict business separation between MPI licence holders and interconnector licence holders.