61Agreements to supply beyond normal range

61. Agreements to supply beyond normal range

(1) Where the owner or occupier of land makes application in writing to an energy operator to supply energy to a place on that land and the place is beyond the normal point from which the energy operator is prepared to supply energy in the performance of its functions, the energy operator may supply energy to that place or such other place on the land as the energy operator may determine if the applicant agrees with the energy operator in writing to do all or any of the following things, namely —

(a) to pay the energy operator for the energy so supplied to him subject to such of the terms and conditions of supply as would from time to time have been applicable to him had he been a consumer to whom energy was supplied, for a like purpose at that place, by the energy operator otherwise than on the basis of a contract;

(b) to pay to the energy operator within 3 months, or such further period as the energy operator may agree, after the agreement is made such amount as the energy operator by that agreement may specify by way of capital contribution, being the amount which the energy operator anticipates will be the cost of appropriate network development;

(c) to pay to the energy operator a maintenance provision, being the amount which the energy operator considers will be required for the purposes of meeting the costs of depreciation or replacement, maintenance, administration, and incidental matters relating to the works in question, either —

(i) by negotiation with the energy operator, by way of a capitalised amount calculated by reference to the capital contribution which in the opinion of the energy operator will thereafter produce a revenue sufficient to make provision for such costs; or

(ii) by way of periodic instalments on demand, pursuant to such agreement, of such amount, at such times, and over such period not exceeding 30 years, as may be therein specified,

as the energy operator, having regard to the circumstances of the case, may require and for the purposes of this section and of all agreements made under this section, or section 32A of the State Electricity Commission Act 1945 2 as from time to time amended, a reference to maintenance shall be construed as including, and always having included, a reference to the felling, lopping, or removal of, or any other method of dealing with, vegetation growing on any land over, on or in which the works in question pass or are situated for the purpose of safeguarding those works.

(1a) In subsection (1)(b) —

appropriate network development means extending, or increasing the capacity of, the supply system to enable the requested supply to be effected, and it includes making those extensions or increases in capacity in a way that accommodates future demands on the supply system that the energy operator might anticipate, whether or not the demands of the applicant.