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RIIO-T1 and GD1: Draft licence conditions – First informal ... - Ofgem

RIIO-T1 and GD1: Draft licence conditions – First informal ... - Ofgem

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10<br />

<strong>RIIO</strong>-<strong>T1</strong> <strong>and</strong> <strong>GD1</strong>: <strong>Draft</strong> <strong>licence</strong> <strong>conditions</strong> <strong>–</strong> <strong>First</strong> <strong>informal</strong> <strong>licence</strong> drafting<br />

consultation<br />

1.15. We set out below our general approach to <strong>RIIO</strong> <strong>licence</strong> drafting.<br />

Definition of terms<br />

1.16. Companies have requested clarity over our approach to defining terms in the<br />

<strong>licence</strong>.<br />

1.17. We consider that using capital letters to signify a defined term is the most<br />

appropriate approach. It makes it clear to the reader when they should refer to the<br />

definitions section for further information. This is consistent with our approach in the<br />

Electricity Distribution <strong>licence</strong>s.<br />

1.18. We ultimately intend to capitalise all defined terms in the <strong>licence</strong>s. In the first<br />

instance we will adopt this approach for all <strong>licence</strong> <strong>conditions</strong> we are changing for<br />

<strong>RIIO</strong>-<strong>T1</strong> <strong>and</strong> <strong>GD1</strong>. We recognise that such an approach will temporarily create<br />

inconsistencies in the <strong>licence</strong>. We would look to rectify these inconsistencies by<br />

reviewing the entire <strong>licence</strong>, for all sectors, <strong>and</strong> carrying out a housekeeping<br />

modification to make all defined terms capitalised.<br />

Best/reasonable endeavours<br />

1.19. As part of the <strong>RIIO</strong> Licence <strong>Draft</strong>ing Working Group we discussed using<br />

alternative terms such as to “take steps” in outlining the measures a licensee would<br />

be required to take to meet its <strong>licence</strong> obligations. However, having considered this<br />

matter further we consider that retaining the use of the terms “best/all<br />

reasonable/reasonable endeavours” in the context of <strong>licence</strong> obligations is more<br />

appropriate as these terms are better known <strong>and</strong> understood by licensees. We<br />

therefore propose to continue to use these terms in the <strong>RIIO</strong> <strong>licence</strong> drafting.<br />

1.20. We welcome views on our proposed approach with respect to the use of these<br />

terms.<br />

Condition numbering<br />

1.21. It should be noted that for both <strong>RIIO</strong>-<strong>T1</strong> <strong>and</strong> <strong>GD1</strong> we are not minded to alter<br />

the current structure of the SLCs or SSCs or amend the existing condition<br />

numbering. This is in order to minimise referencing issues that altering the SLCs or<br />

SSC numbers may create.<br />

1.22. Where we consider an existing SLC or SSC to no longer be required, we<br />

propose to substitute the title <strong>and</strong> entire text of that condition with the words “Not<br />

Used”.<br />

1.23. In contrast, given the extensive number of proposed changes to the SpCs we<br />

see no benefit in retaining the current numbering or structure for the SpCs.

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