PART IIGAS SUPPLY AND ASSOCIATED ACTIVITIES
Licensing of supply of gas and associated activities
F1Closed distribution systems7A
1
A conveyance exemption holder may apply to the Authority for any distribution system through which gas is conveyed under his exemption to be classified as a closed distribution system.
2
Where the Authority has received an application under paragraph (1) in relation to any distribution system, it must classify that system as a closed distribution system if the Authority considers that all of the following criteria are met, that is to say—
a
the distribution system is not used for the purpose of supplying gas to household customers, or is used to supply fewer than 50 household customers who—
i
are employees of, or work for or otherwise render services to, the conveyance exemption holder or a person related to the conveyance exemption holder; and
ii
take a supply of gas that is wholly or mainly from a gas production site embedded in the distribution system;
b
the distribution system is wholly or mainly used for distributing gas within a geographically self contained industrial, commercial or shared services site and is not integrated with any F2pipe-line system operated by the holder of a licence under Article 8(1)(a); and
c
the distribution system is wholly or mainly used either—
i
by system users whose businesses, for technical or safety related reasons, have operational or production premises that are integrated with those of other system users of that distribution system; or
ii
for the purpose of supplying gas to premises owned or occupied by the conveyance exemption holder or by a person related to the conveyance exemption holder.
3
An application under paragraph (1) must—
a
identify the distribution system to which the application relates;
b
include any evidence available to the applicant in support of the application; and
c
provide any further information or documents that the Authority may request in respect of the application.
4
The Authority must decide whether to classify a distribution system as a closed distribution system as soon as is reasonably practical after the Authority has received—
a
the application under paragraph (1); and
b
any further information or documents requested by it under paragraph (3)(c).
5
The Authority must notify the person making the application under paragraph (1) of its decision as soon as is reasonably practicable after that decision has been made.