Commentary on Sections Section 42: Power to amend licence conditions etc: procedure
169.This section sets out the procedure that the Secretary of State must comply with in order to exercise the modification powers conferred by section 41.
170.Subsection (1) obliges the Secretary of State, before making modifications, to consult the holders of licences being modified, the Gas and Electricity Markets Authority and others as he considers appropriate. Subsection (2) specifies that this consultation requirement may be satisfied by consultation either before or after the passing of the Act.
171.Subsections (3) and (4)  provide that before making modifications to any of the documents in section 41(1), the Secretary of State must lay the draft modifications before Parliament and allow a period of 40 days for either House of Parliament to reject the draft. Subsection (5) states that if Parliament does not reject the draft modifications then the Secretary of State may proceed to make those proposed modifications, and under subsection (7) he must publish details of any modifications as soon as reasonably practicable. Subsection (6) makes it clear that if Parliament rejects the draft modifications the Secretary of State may, if he wishes, lay a revised draft in front of Parliament. Subsections (8) and (9) outline how the 40 day period is to be calculated. This process mirrors the negative resolution procedure.