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. (2) An energy operator may require the due payment of any instalments payable pursuant to subsection (1) to be secured by security to the satisfaction of the energy operator or to be guaranteed by the applicant or some other person, or by both the applicant and such other person either jointly or severally. (3) An energy operator shall review the supply system relevant to any supply effected under this section at least once in every 3 years, and in any case where it thinks fit the energy operator may do both or either of the following things, namely — (a) refund the whole or part of the amount of any moneys paid by way of capital contribution, or by way of a capitalised amount paid pursuant to subsection (1)(c)(i); or (b) reduce or discontinue the amount of the instalments referred to in subsection (1)(c). (4) Subject to subsection (3), an energy operator, at the expiration of the period referred to in subsection (1)(c) as agreed upon and specified in any agreement made between the energy operator and the applicant pursuant to that subsection, or earlier if the energy operator so elects, shall refund any amount held by the energy operator and paid pursuant to subsection (1)(b) by way of capital contribution or by way of a capitalised amount paid pursuant to subsection (1)(c)(i). (5) An energy operator may terminate the supply of energy agreed to be supplied to the applicant pursuant to this section — (a) if any moneys due to the energy operator for energy so supplied by it remain unpaid for not less than 7 days after they become due; or (b) if the applicant fails to comply with the terms and conditions of any agreement made by him with the energy operator pursuant to subsection (1), without in any way affecting the right of the energy operator to enforce any right it may have against the applicant in respect thereof. (6) Where the supply of energy to land is terminated pursuant to subsection (5), or otherwise, if a written application is made to the energy operator by any person to resume the supply of energy to that land, the energy operator may make the supply available upon the applicant agreeing in writing to take the supply upon the same terms and conditions as those in force immediately preceding the date on which the supply was so terminated or upon those terms and conditions as varied by agreement between the energy operator and the applicant. (7) Where an energy operator determines that it is not practicable to supply energy to any place the energy operator may assist an applicant to make other arrangements for the supply of energy thereto including — (a) making contributions, up to such amount, in such manner, and at such intervals, as may be prescribed, towards the cost of the provision of suitable works; (b) the bulk purchase and individual sale of generating units and approved apparatus; (c) the provision of advisory and technical services, subject to such arrangements being approved by the energy operator, and regulations made under this Act may make provision accordingly. [Section 61 amended: No. 101 of 1981 s. 15; No. 24 of 1986 s. 25; No. 89 of 1994 s. 23, 39, 40 and 41; No. 58 of 1999 s. 83; No. 53 of 2003 s. 114.]