Part 13: General Schedule 2: Exempted contracts Part 1 - Counterparty Exempted Contracts Utilities contracts (counterparty)
Joint Ventures. Paragraph 5(1) exempts utilities contracts between utilities and relevant joint ventures to which they are a party. The joint venture must have been formed for the purpose of carrying out a utility activity and be committed to doing so for a period of at least three years. In addition, the utilities forming the joint venture must remain members of the joint venture for a minimum of three years after the date of the agreement.
	Affiliated Persons. Paragraph 5(2) defines a "relevant joint venture", which is used in paragraphs 5(1) and 6(1) of this Schedule. A relevant joint venture is a joint venture that was formed for the purpose of carrying out a utility activity and is comprised only of utilities.
	Paragraph 6(1) exempts utilities contracts awarded:
by a utility to a person affiliated with the utility; and
by a utility that is a relevant joint venture to a person affiliated with any of the members of the relevant joint venture, provided the turnover test is met when considering the affiliated person.
	Paragraph 6(2) explains, by reference to the Companies Act 2006, what it means if a person is "affiliated" with another. A person is affiliated with another if the person is in a "group undertaking", as defined in section 1161(5) of that Act, with that person. Paragraph 6(2) provides that this would be the case even where one of them is not an "undertaking" as defined in section 1161(1) of that Act - for example, where one is not a company.
	Paragraphs 6(3) - (5) explain the turnover test to be met and contain a power for an appropriate authority to make regulations that set out how to calculate affiliated turnover amount and total turnover amount for the purposes of sub-paragraph (3).