Part 5: Independent System Operator and Planner Section 166: Licensing of electricity system operator activity
The Gas Act 1986 and The Electricity Act 1989 prohibit certain activities unless the person carrying on that activity is licensed, exempt from the requirement for a licence, or eligible (under the Gas Act 1986 only) for an exception to the prohibition on unlicensed activities.
	There is a set of standard licence conditions for most licensable activities. Licensees are obliged to comply with the licence conditions for their type of licence from the day the licence is granted. This section makes amendments to the Electricity Act 1989 to:
Define the new ‘electricity system operation’ licensable activities. The definition is closely based on the ‘system operation’ aspects of transmission as currently defined in s.4(4) Electricity Act 1989, since the ISOP’s initial electricity functions will be essentially those currently carried out by National Grid Electricity System Operator.
Create the new ‘electricity system operator licence’ and empower the Secretary of State to grant the first licence.
Ensure that the holder of the ‘electricity system operator licence’ also holds the ‘gas system planner licence’.
Ensure that if a person ceases to hold the ‘gas system planner’ licence it ceases to hold the ‘system operator’ electricity licence.