This is the better of your options,it overcomes any problem with the integrity of the conduit,now and in the future
It saves trying to get a suitable earth connection wherever it may be needed.terminal boxes at lights for example, may be well sunk back and switch boxes may need drilling to get an earth,with the seperate cpc conductor,you have none of them problems
The chances are, that you would have some problems wiring in T&E in embedded conduit!! You haven't said what the size of this conduit is 3/4'' or 1/2''?? If 1/2'' then it will probably be the old ''slip'' conduit, in which case you'll in all likelihood need to run in a separate CPC!! If 3/4'' it'll be screwed, ..all you need to do is check the continuity is still good, if it is no need for a CPC to be drawn in...
When pulling in your new wiring make sure you get no twists/crossovers, and use a good pulling medium such as Yellow 55 (or whatever it it is lol!!) Pulling one one section of pipe at a time. If you can, use one of the existing singles as your pull wire, obviously after removing all the other conductors from the section of pipe!!
I am under the impression that conduit can be used as the cpc if it was run during the 14th edition ie "Electrically & Mechanically Sound" on a CU change but on a rewire is it not recommended to run a seperate cpc.
Also if I would pull a nylon fishwire on the old cable then pull the new cables through plus put a "Dod" of Tallow in the end of the conduit you are wiring into . Works for me.
Also you dont mention the connection to the fuseboard so you either need a metal trunking between the plastic CU and the conduit remembering to earth bond the trunking with a 16mm or us metal CU but buy some 3/4---20mm adaptors to convert to 20mm couplers and bushes as the 3/4 bushes dont fit the 20mm knockouts or holes that are drilled in the trunking/fuseboard.
Also meant to add that you may find the lights are tubed between each other with the switch spurred of so look for 3 conduits terminated at the light points. Plus the socket outlets are they all singles I would think so if built in the 60-70s
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