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.