Schedule 9: Independent System Operator and Planner: transfers Schedule 19: Licensing of activities relating to load control Section 56FBA: New licensable activities: load control of energy smart appliances
Section 56FBA gives the Secretary of State the power to make regulations which add to the activities that are licensable under the Electricity Act 1989 any one or more new activities which are connected with the carrying on or facilitating of load control or the provision of services of facilities for that purpose. This will ensure that licence conditions can be placed on organisations undertaking those activities, so that they can be effectively regulated. An example of load control activity which could be made licensable is where an entity manages energy smart appliances to shift electricity consumption and help balance the electricity grid. Licence conditions may include, for example, ensuring that load controllers operate in a way which protects the security and stability of the electricity system, and act in a fair manner towards consumers.
	Once activities become licensable, it will be an offence under section 4(1) of the Electricity Act to undertake them without a licence, unless they are made exempt by virtue of an order under section 5(1) of that Act.
	The regulations can also include any necessary consequential, transitional, incidental or supplementary changes to primary legislation. This will enable the Secretary of State to make any amendments necessary to ensure that the new licences fit within the existing statutory framework. The Secretary of State may also make transitional provisions relating to anyone who is already carrying out a relevant activity before it becomes licensable (for instance, to allow them time to adjust to the new arrangements and comply with licence conditions that will be placed on them).