[F1 Article 1 U.K. Subject matter and scope

1. This Regulation aims at—

(a) setting non-discriminatory rules for access conditions to natural gas transmission systems with a view to ensuring the proper functioning of the market in gas;

(b) setting non-discriminatory rules for access conditions to LNG facilities and storage facilities;

(c) facilitating the emergence of a well-functioning and transparent wholesale market with a high level of security of supply in gas.

2. The objectives referred to in paragraph 1 include the setting of principles for tariffs, or the methodologies underlying their calculation, for access to the network, but not to storage facilities, the establishment of third-party access services and principles for capacity allocation and congestion-management, the determination of transparency requirements, balancing rules and imbalance charges, and the facilitation of capacity trading.

3. In so far as this Regulation applies to storage facilities, it applies only to—

(a) storage facilities within the jurisdiction of Great Britain to which section 19B of the Gas Act 1986 applies; and

(b) storage facilities in Northern Ireland, other than those to which an exemption has been granted in accordance with Article 39A of the Gas (Northern Ireland) Order 1996,

except for Article 19(4) which applies to all storage facilities.]

Textual Amendments

F1 Art. 1 substituted (31.12.2020) by The Electricity and Gas etc. (Amendment etc.) (EU Exit) Regulations 2019 (S.I. 2019/530), reg. 1(1), Sch. 2 para. 1; 2020 c. 1, Sch. 5 para. 1(1)

[F2 Article 2 U.K. Definitions

In this Regulation—

• “ancillary services” means all services necessary for access to and the operation of transmission networks, distribution networks, LNG facilities or storage facilities, including load balancing, blending and injection of inert gases, but not including facilities reserved exclusively for transmission system operators carrying out their functions;

• “available capacity” means the part of the technical capacity of a transmission system that is not allocated and is still available to the system;

• “balancing period” means the period within which the off-take of an amount of natural gas, expressed in units of energy, must be offset by every network user by means of the injection of the same amount of natural gas into the transmission network in accordance with a transport contract or network code;

• “capacity” means transmission system capacity, LNG facility capacity or storage facility capacity;

• “congestion management” means management of the capacity portfolio of a transmission system operator with a view to optimal and maximum use of the technical capacity and the timely detection of future congestion and saturation points;

• “connected country or territory” means the other part of the United Kingdom, a connected member State or a connected third country;

• “connected member State”—

  (a)

  in relation to Great Britain, means a member State, the transmission system of which is connected to the Great Britain transmission system by an interconnector;

  (b)

  in relation to Northern Ireland, means a member State, the transmission system of which is connected to the Northern Ireland transmission system by an interconnector;

• “connected third country”—

  (a)

  in relation to Great Britain, means a country or territory other than Northern Ireland or a member State, the transmission system of which is directly connected to the Great Britain transmission system;

  (b)

  in relation to Northern Ireland, means a country or territory other than Great Britain or a member State, the transmission system of which is directly connected to the Northern Ireland transmission system;

• “contracted capacity” means capacity that a system operator has allocated to a network user by means of a contract;

• “contractual congestion” means a situation where the level of firm capacity demand exceeds the technical capacity of a system;

• “customer” means a wholesale or final customer of natural gas or a natural gas undertaking which purchases natural gas;

• “deliverability” means the rate at which a storage facility user is entitled to withdraw gas from the storage facility;

• “distribution” means the transport of natural gas through local or regional pipeline networks with a view to its delivery to customers, but not including supply;

• “distribution system operator” means a person who carries out the function of distribution and is responsible for operating, ensuring the maintenance of, and, if necessary, developing the distribution system in a given area and, where applicable, its interconnections with other systems, and for ensuring the long-term ability of the system to meet reasonable demands for the distribution of gas;

• “final customer” means a customer purchasing natural gas for the customer's own use;

• “firm capacity” means capacity contractually guaranteed as uninterruptible by a system operator;

• “firm services” means services offered by a system operator in relation to firm capacity;

• “injectability” means the rate at which a storage facility user is entitled to inject gas into the storage facility;

• “interconnection point” has the meaning given in Article 3 of Commission Regulation (EU) 2017/459 establishing a network code on capacity allocation mechanisms in gas transmission systems;

• “interconnector”—

  (a)

  in relation to Great Britain, means a transmission line which crosses or spans a border between Great Britain and a member State, or between Great Britain and Northern Ireland, for the sole or main purpose of connecting the transmission systems of those countries or territories;

  (b)

  in relation to Northern Ireland, means a transmission line which crosses or spans a border between Northern Ireland and a member State, or between Northern Ireland and Great Britain, for the sole or main purpose of connecting the transmission systems of those countries or territories;

• “interruptible capacity” means capacity that may be interrupted by a system operator in accordance with the conditions stipulated in a contract;

• “interruptible services” means services offered by a system operator in relation to interruptible capacity;

• “the jurisdiction of Great Britain” has the meaning given in section 5(9) of the Gas Act 1986;

• “linepack” means the storage of gas by compression in gas transmission and distribution systems, but not including facilities reserved for transmission system operators carrying out their functions;

• “LNG facility” means a terminal which is used for the liquefaction of natural gas or the importation, offloading and re-gasification of LNG, and includes ancillary services and temporary storage necessary for the re-gasification process and subsequent delivery to the transmission system, but does not include any part of LNG terminals used for storage;

• “LNG facility capacity” means capacity at an LNG facility for the liquefaction of natural gas or the importation, offloading, ancillary services, temporary storage and re- gasification of LNG;

• “LNG system operator” means a person who carries out the function of liquefaction of natural gas, or the importation, offloading and re-gasification of LNG and who is responsible for operating an LNG facility;

• “long-term services” means services offered by a system operator with a duration of one year or more;

• “the national regulatory authority”—

  (a)

  in relation to Great Britain, means the Gas and Electricity Markets Authority;

  (b)

  in relation to Northern Ireland, means the Northern Ireland Authority for Utility Regulation;

• “natural gas undertaking” means a person carrying out one or more of the functions of production, transmission, distribution, supply, purchase or storage of natural gas, including LNG, which is responsible for the commercial, technical or maintenance tasks (or any combination of those tasks) related to those functions, but does not include final customers;

• “network user” means a customer or a potential customer of a transmission system operator, and transmission system operators themselves in so far as it is necessary for them to carry out their functions in relation to transmission;

• “new infrastructure” means infrastructure not completed by 4th August 2003;

• “nomination” means the prior reporting by a network user to a transmission system operator of the actual flow that the network user wishes to inject into or withdraw from the system;

• “non-UK TSO” means a person, other than a person that falls within the definition of “transmission system operator”, who carries out the function of transmission and is responsible for operating, ensuring the maintenance of, and, if necessary developing the transmission system in a given area other than the United Kingdom, and, where applicable, its interconnections with other systems, and ensuring the long-term ability of the system to meet reasonable demands for the transport of gas;

• “Northern Ireland” has the meaning given in section 98 of the Northern Ireland Act 1998;

• “other part of the United Kingdom”—

  (a)

  in relation to Great Britain, means Northern Ireland;

  (b)

  in relation to Northern Ireland, means Great Britain;

• “physical congestion” means a situation where the level of demand for actual deliveries of gas exceeds the technical capacity of a system;

• “primary market” means the market of the capacity traded directly by a system operator;

• “re-nomination” means the subsequent reporting of a corrected nomination;

• “secondary market” means the market of the capacity traded otherwise than on the primary market;

• “short-term services” means services offered by a system operator with a duration of less than one year;

• “space” means the volume of gas which a user of a storage facility is entitled to use for the storage of gas;

• “storage capacity” means any combination of space, injectability and deliverability;

• “storage facility” means a facility used for the stocking of natural gas and owned or operated by a natural gas undertaking, including the part of LNG facilities used for storage but excluding the portion used for production operations, and excluding facilities reserved exclusively for transmission system operators in carrying out their functions;

• “storage system operator” means a person who carries out the function of storage and is responsible for operating a storage facility;

• “supply” means the sale, including resale, of natural gas, including LNG, to customers;

• “system” means any transmission networks, distribution networks, LNG facilities or storage facilities, or combination of such networks or facilities, owned or operated by a natural gas undertaking, including linepack and its facilities supplying ancillary services and those of related undertakings necessary for providing access to transmission, distribution and LNG;

• “system integrity” means any situation in respect of a transmission network including necessary transmission facilities in which the pressure and the quality of the natural gas remain within the minimum and maximum limits laid down by the transmission system operator, so that the transmission of natural gas is guaranteed from a technical standpoint;

• “system operator” means a transmission system operator, LNG system operator or storage system operator;

• “system user” means a person supplying to, or being supplied by, the system;

• “technical capacity” means the maximum firm capacity that a transmission system operator can offer to network users, taking account of system integrity and the operational requirements of the transmission network;

• “transmission” means the transport of natural gas through a network, which mainly contains high-pressure pipelines, other than an upstream pipeline network and other than the part of high-pressure pipelines primarily used in the context of local distribution of natural gas, with a view to its delivery to customers, but not including supply;

• “transmission system capacity” means the maximum flow, expressed in normal cubic metres per time unit or in energy unit per time unit, to which a network user is entitled in accordance with the provisions of a transport contract;

• “transmission system operator”—

  (a)

  in relation to Great Britain, means a person who is designated as a gas transmission system operator under section 8J of the Gas Act 1986;

  (b)

  in relation to Northern Ireland, means a person who is designated as a gas transmission system operator under Article 8H of the Gas (Northern Ireland) Order 1996;

• “transport contract” means a contract which a transmission system operator has concluded with a network user with a view to carrying out transmission;

• “unused capacity” means firm capacity which a network user has acquired under a transport contract but which that user has not nominated by the deadline specified in the contract;

• “upstream pipeline network” means any pipeline or network of pipelines operated or constructed as part of an oil or gas production project, or used to convey natural gas from one or more such projects to a processing plant or terminal or final coastal landing terminal;

• “wholesale customer” means a person other than a transmission system operator or distribution system operator who purchases natural gas for the purpose of resale inside or outside the system where the person is established.]

Textual Amendments

F2 Art. 2 substituted (31.12.2020) by The Electricity and Gas etc. (Amendment etc.) (EU Exit) Regulations 2019 (S.I. 2019/530), reg. 1(1), Sch. 2 para. 2; 2020 c. 1, Sch. 5 para. 1(1)

F3 Article 3 U.K. Certification of transmission system operators

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Textual Amendments

F3 Arts. 3-5 omitted (31.12.2020) by virtue of The Electricity and Gas etc. (Amendment etc.) (EU Exit) Regulations 2019 (S.I. 2019/530), reg. 1(1), Sch. 2 para. 3; 2020 c. 1, Sch. 5 para. 1(1)

F3 Article 4 U.K. European network of transmission system operators for gas

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Textual Amendments

F3 Arts. 3-5 omitted (31.12.2020) by virtue of The Electricity and Gas etc. (Amendment etc.) (EU Exit) Regulations 2019 (S.I. 2019/530), reg. 1(1), Sch. 2 para. 3; 2020 c. 1, Sch. 5 para. 1(1)

F3 Article 5 U.K. Establishment of the ENTSO for Gas

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Textual Amendments

F3 Arts. 3-5 omitted (31.12.2020) by virtue of The Electricity and Gas etc. (Amendment etc.) (EU Exit) Regulations 2019 (S.I. 2019/530), reg. 1(1), Sch. 2 para. 3; 2020 c. 1, Sch. 5 para. 1(1)

[F4 Article 6 U.K. Establishment of provision corresponding to network codes

1. In this Article—

(a) “the Withdrawal Act” means the European Union (Withdrawal) Act 2018;

(b) “corresponding provision”, in relation to a relevant provision, has the meaning given by paragraphs 2 and 3;

(c) “deficiency” is to be interpreted in accordance with subsections (2) to (4) and subsection (9) of section 8 of the Withdrawal Act (with references in those subsections to retained EU law being read as if they included references to relevant provisions);

(d) a “gas network code” means a network code adopted by the Commission before IP completion day, under this Article as it has effect in EU law;

(e) “national authority” means—

(i) the Secretary of State, in relation to Great Britain;

(ii) the Secretary of State or the Northern Ireland department, in relation to Northern Ireland;

(f) “the Northern Ireland department” means the Department for the Economy;

(g) “permitted amendment”, in relation to a relevant provision, means an amendment to that provision which would not prevent it from having effect as a corresponding provision;

(h) a “relevant provision” means a provision of a gas network code which—

(i) although in force immediately before IP completion day, is stated to apply from a time after IP completion day (“a relevant non-operative provision”); or

(ii) was in force and applied before IP completion day, but is revoked or amended by regulations under section 8(1) of the Withdrawal Act in consequence of another provision being a relevant non-operative provision.

2. A national authority may, by regulations, make provision which corresponds to a relevant provision of a gas network code (a “corresponding provision”).

3. For this purpose, a provision corresponds to a relevant provision if—

(a) the national authority considers that it has the same or substantially the same effect as the relevant provision; or

(b) it is different from the relevant provision, other than in respects that fall within subparagraph (a), only to such extent as the national authority considers appropriate for the purpose in paragraph 4.

4. That purpose is to prevent, remedy or mitigate—

(a) any failure of a provision to operate effectively; or

(b) any other deficiency in a provision,

arising from the withdrawal of the United Kingdom from the EU.

5. Regulations under paragraph 2 may, in particular—

(a) amend the gas network code so that it contains the corresponding provision; or

(b) if all the provisions of the gas network code are relevant provisions, provide that the gas network code has effect in domestic law, with such permitted amendments (if any) as are specified in the regulations.

6. Regulations under paragraph 2—

(a) may include provision of a kind which may be made in regulations under section 8(1) of the Withdrawal Act by virtue of subsection (5) or (6) of that section;

(b) may not include provision of a kind specified in subsection (7) of that section.

7. The following provisions in Part 3 of Schedule 7 to the Withdrawal Act (general provision about powers under Act) apply to regulations under paragraph 2 as they do to regulations under section 8(1) of the Withdrawal Act—

(a) paragraph 21 (power to make supplementary provision, etc.);

(b) paragraph 27 (disapplication of certain review provisions);

(c) paragraph 36 (hybrid instruments).

8. A gas network code which has effect in domestic law by virtue of provision made under paragraph 5(b) (as modified under this Regulation or by other domestic law from time to time) is to be treated as—

(a) retained EU law, for the purposes of—

(i) section 6 of the Withdrawal Act (interpretation of retained EU law);

(ii) section 15(2) of, and Part 2 of Schedule 5 to, the Withdrawal Act (rules of evidence);

(b) retained direct minor EU legislation, for the purposes of—

(i) section 7(3) of the Withdrawal Act (status of retained EU law);

(ii) paragraph 30 of Schedule 8 to the Withdrawal Act (Human Rights Act 1998).

9. No regulations may be made under this Article after the end of the period of two years beginning with IP completion day.]

Textual Amendments

F4 Art. 6 substituted (31.12.2020) by The Electricity and Gas (Powers to Make Subordinate Legislation) (Amendment) (EU Exit) Regulations 2018 (S.I. 2018/1286), regs. 1(2), 10 (as amended by S.I. 2020/1016, regs. 1(2), 2(5); 2020 c. 1, Sch. 5 para. 1(1)

[F5 Article 7 U.K. Amendments of network codes

1. A national authority may, by regulations, amend a gas network code.

2. The power in paragraph 1 includes power to—

(a) insert into the gas network code new provision about the same subject-matter as, or related subject-matter to, an existing provision of the gas network code;

(b) revoke the gas network code or any provision of it, either with or without making replacement provision.

3. Regulations under this Article must be consistent with the objectives of contributing to non-discrimination, effective competition and the efficient functioning of the market.

4. Regulations under this Article may—

(a) include supplementary, incidental, consequential, transitional, transitory or saving provision; and

(b) make different provision for different cases.

5. In this Article, “gas network code” and “national authority” have the same meanings as in Article 6.]

Textual Amendments

F5 Art. 7 substituted (31.12.2020) by The Electricity and Gas (Powers to Make Subordinate Legislation) (Amendment) (EU Exit) Regulations 2018 (S.I. 2018/1286), regs. 1(2)(b), 11; 2020 c. 1, Sch. 5 para. 1(1)

F6 Article 8 U.K. Tasks of the ENTSO for Gas

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Textual Amendments

F6 Arts. 8-12 omitted (31.12.2020) by virtue of The Electricity and Gas etc. (Amendment etc.) (EU Exit) Regulations 2019 (S.I. 2019/530), reg. 1(1), Sch. 2 para. 4; 2020 c. 1, Sch. 5 para. 1(1)

F6 Article 9 U.K. Monitoring by the Agency

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Textual Amendments

F6 Arts. 8-12 omitted (31.12.2020) by virtue of The Electricity and Gas etc. (Amendment etc.) (EU Exit) Regulations 2019 (S.I. 2019/530), reg. 1(1), Sch. 2 para. 4; 2020 c. 1, Sch. 5 para. 1(1)

F6 Article 10 U.K. Consultations

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Textual Amendments

F6 Arts. 8-12 omitted (31.12.2020) by virtue of The Electricity and Gas etc. (Amendment etc.) (EU Exit) Regulations 2019 (S.I. 2019/530), reg. 1(1), Sch. 2 para. 4; 2020 c. 1, Sch. 5 para. 1(1)

F6 Article 11 U.K. Costs

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Textual Amendments

F6 Arts. 8-12 omitted (31.12.2020) by virtue of The Electricity and Gas etc. (Amendment etc.) (EU Exit) Regulations 2019 (S.I. 2019/530), reg. 1(1), Sch. 2 para. 4; 2020 c. 1, Sch. 5 para. 1(1)

F6 Article 12 U.K. Regional cooperation of transmission system operators

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Textual Amendments

F6 Arts. 8-12 omitted (31.12.2020) by virtue of The Electricity and Gas etc. (Amendment etc.) (EU Exit) Regulations 2019 (S.I. 2019/530), reg. 1(1), Sch. 2 para. 4; 2020 c. 1, Sch. 5 para. 1(1)

Article 13 U.K. Tariffs for access to networks

1. Tariffs, or the methodologies used to calculate them, applied by the transmission system operators and approved by [F7 the national regulatory authority]F8 ..., shall be transparent, take into account the need for system integrity and its improvement and reflect the actual costs incurred, insofar as such costs correspond to those of an efficient and structurally comparable network operator and are transparent, whilst including an appropriate return on investments, and, where appropriate, taking account of the benchmarking of tariffs by [F7 the national regulatory authority]. Tariffs, or the methodologies used to calculate them, shall be applied in a non-discriminatory manner.

[F9 Tariffs] may also be determined through market-based arrangements, such as auctions, provided that such arrangements and the revenues arising therefrom are approved by the [F10 national] regulatory authority.

Tariffs, or the methodologies used to calculate them, shall facilitate efficient gas trade and competition, while at the same time avoiding cross-subsidies between network users and providing incentives for investment and maintaining or creating interoperability for transmission networks.

Tariffs for network users shall be non-discriminatory and set separately for every entry point into or exit point out of the transmission system. Cost-allocation mechanisms and rate setting methodology regarding entry points and exit points shall be approved by the national regulatory [F11 authority]. [F12 The national regulatory authority must ensure that network charges are not] calculated on the basis of contract paths.

2. Tariffs for network access shall neither restrict market liquidity nor distort trade across borders of different transmission systems. F13 ...

Textual Amendments

F7 Words in Art. 13(1) substituted (31.12.2020) by The Electricity and Gas etc. (Amendment etc.) (EU Exit) Regulations 2019 (S.I. 2019/530), reg. 1(1), Sch. 2 para. 5(2)(a)(i); 2020 c. 1, Sch. 5 para. 1(1)

F8 Words in Art. 13(1) omitted (31.12.2020) by virtue of The Electricity and Gas etc. (Amendment etc.) (EU Exit) Regulations 2019 (S.I. 2019/530), reg. 1(1), Sch. 2 para. 5(2)(a)(ii); 2020 c. 1, Sch. 5 para. 1(1)

F9 Word in Art. 13(1) substituted (31.12.2020) by The Electricity and Gas etc. (Amendment etc.) (EU Exit) Regulations 2019 (S.I. 2019/530), reg. 1(1), Sch. 2 para. 5(2)(b)(i); 2020 c. 1, Sch. 5 para. 1(1)

F10 Word in Art. 13(1) inserted (31.12.2020) by The Electricity and Gas etc. (Amendment etc.) (EU Exit) Regulations 2019 (S.I. 2019/530), reg. 1(1), Sch. 2 para. 5(2)(b)(ii); 2020 c. 1, Sch. 5 para. 1(1)

F11 Word in Art. 13(1) substituted (31.12.2020) by The Electricity and Gas etc. (Amendment etc.) (EU Exit) Regulations 2019 (S.I. 2019/530), reg. 1(1), Sch. 2 para. 5(2)(c)(i); 2020 c. 1, Sch. 5 para. 1(1)

F12 Words in Art. 13(1) substituted (31.12.2020) by The Electricity and Gas etc. (Amendment etc.) (EU Exit) Regulations 2019 (S.I. 2019/530), reg. 1(1), Sch. 2 para. 5(2)(c)(ii); 2020 c. 1, Sch. 5 para. 1(1)

F13 Words in Art. 13(2) omitted (31.12.2020) by virtue of The Electricity and Gas etc. (Amendment etc.) (EU Exit) Regulations 2019 (S.I. 2019/530), reg. 1(1), Sch. 2 para. 5(3); 2020 c. 1, Sch. 5 para. 1(1)

Article 14 U.K. Third-party access services concerning transmission system operators

1. Transmission system operators shall:

(a) ensure that they offer services on a non-discriminatory basis to all network users;

(b) provide both firm and interruptible third-party access services. The price of interruptible capacity shall reflect the probability of interruption;

(c) offer to network users both long and short-term services.

In regard to point (a) of the first subparagraph, where a transmission system operator offers the same service to different customers, it shall do so under equivalent contractual terms and conditions, either using harmonised transport contracts or a common network code approved by the [F14 national regulatory] authority F15 ....

2. Transport contracts signed with non-standard start dates or with a shorter duration than a standard annual transport contract shall not result in arbitrarily higher or lower tariffs that do not reflect the market value of the service, in accordance with the principles laid down in Article 13(1).

3. Where appropriate, third-party access services may be granted subject to appropriate guarantees from network users with respect to the creditworthiness of such users. Such guarantees shall not constitute undue market-entry barriers and shall be non-discriminatory, transparent and proportionate.

Textual Amendments

F14 Words in Art. 14(1) substituted (31.12.2020) by The Electricity and Gas etc. (Amendment etc.) (EU Exit) Regulations 2019 (S.I. 2019/530), reg. 1(1), Sch. 2 para. 6(a); 2020 c. 1, Sch. 5 para. 1(1)

F15 Words in Art. 14(1) omitted (31.12.2020) by virtue of The Electricity and Gas etc. (Amendment etc.) (EU Exit) Regulations 2019 (S.I. 2019/530), reg. 1(1), Sch. 2 para. 6(b); 2020 c. 1, Sch. 5 para. 1(1)

Article 15 U.K. Third-party access services concerning storage and LNG facilities

1. LNG and storage system operators shall:

(a) offer services on a non-discriminatory basis to all network users that accommodate market demand; in particular, where an LNG or storage system operator offers the same service to different customers, it shall do so under equivalent contractual terms and conditions;

(b) offer services that are compatible with the use of the interconnected gas transport systems and facilitate access through cooperation with the transmission system operator; and

(c) make relevant information public, in particular data on the use and availability of services, in a time-frame compatible with the LNG or storage facility users' reasonable commercial needs, subject to the monitoring of such publication by the national regulatory authority.

2. Each storage system operator shall:

(a) provide both firm and interruptible third-party access services; the price of interruptible capacity shall reflect the probability of interruption;

(b) offer to storage facility users both long and short-term services; and

(c) offer to storage facility users both bundled and unbundled services of storage space, injectability and deliverability.

3. LNG and storage facility contracts shall not result in arbitrarily higher tariffs in cases in which they are signed:

(a) outside a natural gas year with non-standard start dates; or

(b) with a shorter duration than a standard LNG and storage facility contract on an annual basis.

4. Where appropriate, third-party access services may be granted subject to appropriate guarantees from network users with respect to the creditworthiness of such users. Such guarantees shall not constitute undue market-entry barriers and shall be non-discriminatory, transparent and proportionate.

5. Contractual limits on the required minimum size of LNG facility capacity and storage capacity shall be justified on the basis of technical constrains and shall permit smaller storage users to gain access to storage services.

Article 16 U.K. Principles of capacity-allocation mechanisms and congestion-management procedures concerning transmission system operators

1. The maximum capacity at all relevant points referred to in Article 18(3) shall be made available to market participants, taking into account system integrity and efficient network operation.

2. The transmission system operator shall implement and publish non-discriminatory and transparent capacity-allocation mechanisms, which shall:

(a) provide appropriate economic signals for the efficient and maximum use of technical capacity, facilitate investment in new infrastructure and facilitate cross-border exchanges in natural gas;

(b) be compatible with the market mechanisms including spot markets and trading hubs, while being flexible and capable of adapting to evolving market circumstances; and

[F16 (c) be compatible with the network access systems of—

(i) the other part of the United Kingdom and connected member States; and

(ii) if the national regulatory authority so directs, connected third countries;]

3. The transmission system operator shall implement and publish non-discriminatory and transparent congestion-management procedures which facilitate cross-border exchanges in natural gas on a non-discriminatory basis and which shall be based on the following principles:

(a) in the event of contractual congestion, the transmission system operator shall offer unused capacity on the primary market at least on a day-ahead and interruptible basis; and

(b) network users who wish to re-sell or sublet their unused contracted capacity on the secondary market shall be entitled to do so.

F17 ...

4. In the event that physical congestion exists, non-discriminatory, transparent capacity-allocation mechanisms shall be applied by the transmission system operator or, as appropriate, by the [F18 national regulatory authority].

5. Transmission system operators shall regularly assess market demand for new investment. When planning new investments, transmission system operators shall assess market demand and take into account security of supply.

Textual Amendments

F16 Art. 16(2)(c) substituted (31.12.2020) by The Electricity and Gas etc. (Amendment etc.) (EU Exit) Regulations 2019 (S.I. 2019/530), reg. 1(1), Sch. 2 para. 7(2); 2020 c. 1, Sch. 5 para. 1(1)

F17 Words in Art. 16(3) omitted (31.12.2020) by virtue of The Electricity and Gas etc. (Amendment etc.) (EU Exit) Regulations 2019 (S.I. 2019/530), reg. 1(1), Sch. 2 para. 7(3); 2020 c. 1, Sch. 5 para. 1(1)

F18 Words in Art. 16(4) substituted (31.12.2020) by The Electricity and Gas etc. (Amendment etc.) (EU Exit) Regulations 2019 (S.I. 2019/530), reg. 1(1), Sch. 2 para. 7(4); 2020 c. 1, Sch. 5 para. 1(1)

Article 17 U.K. Principles of capacity-allocation mechanisms and congestion-management procedures concerning storage and LNG facilities

1. The maximum storage and LNG facility capacity shall be made available to market participants, taking into account system integrity and operation.

2. LNG and storage system operators shall implement and publish non-discriminatory and transparent capacity-allocation mechanisms which shall:

(a) provide appropriate economic signals for the efficient and maximum use of capacity and facilitate investment in new infrastructure;

(b) be compatible with the market mechanism including spot markets and trading hubs, while being flexible and capable of adapting to evolving market circumstances; and

(c) be compatible with the connected network access systems.

3. LNG and storage facility contracts shall include measures to prevent capacity-hoarding, by taking into account the following principles, which shall apply in cases of contractual congestion:

(a) the system operator must offer unused LNG facility and storage capacity on the primary market without delay; for storage facilities this must be at least on a day-ahead and interruptible basis;

(b) LNG and storage facility users who wish to re-sell their contracted capacity on the secondary market must be entitled to do so.

Article 18 U.K. Transparency requirements concerning transmission system operators

1. The transmission system operator shall make public detailed information regarding the services it offers and the relevant conditions applied, together with the technical information necessary for network users to gain effective network access.

2. In order to ensure transparent, objective and non-discriminatory tariffs and facilitate efficient utilisation of the gas network, transmission system operators F19 ... shall publish reasonably and sufficiently detailed information on tariff derivation, methodology and structure.

3. For the services provided, each transmission system operator shall make public information on technical, contracted and available capacities on a numerical basis for all relevant points including entry and exit points on a regular and rolling basis and in a user-friendly and standardised manner.

4. The relevant points of a transmission system on which the information is to be made public shall be approved by the [F20 national regulatory authority] after consultation with network users.

5. The transmission system operator shall always disclose the information required by this Regulation in a meaningful, quantifiably clear and easily accessible manner and on a non-discriminatory basis.

6. The transmission system operator shall make public ex-ante and ex-post supply and demand information, based on nominations, forecasts and realised flows in and out of the system. The national regulatory authority shall ensure that all such information is made public. The level of detail of the information that is made public shall reflect the information available to the transmission system operator.

The transmission system operator shall make public measures taken as well as costs incurred and revenue generated to balance the system.

The market participants concerned shall provide the transmission system operator with the data referred to in this Article.

Textual Amendments

F19 Words in Art. 18(2) omitted (31.12.2020) by virtue of The Electricity and Gas etc. (Amendment etc.) (EU Exit) Regulations 2019 (S.I. 2019/530), reg. 1(1), Sch. 2 para. 8(2); 2020 c. 1, Sch. 5 para. 1(1)

F20 Words in Art. 18(4) substituted (31.12.2020) by The Electricity and Gas etc. (Amendment etc.) (EU Exit) Regulations 2019 (S.I. 2019/530), reg. 1(1), Sch. 2 para. 8(3); 2020 c. 1, Sch. 5 para. 1(1)

Article 19 U.K. Transparency requirements concerning storage facilities and LNG facilities

1. LNG and storage system operators shall make public detailed information regarding the services it offers and the relevant conditions applied, together with the technical information necessary for LNG and storage facility users to gain effective access to the LNG and storage facilities.

2. For the services provided, LNG and storage system operators shall make public information on contracted and available storage and LNG facility capacities on a numerical basis on a regular and rolling basis and in a user-friendly standardised manner.

3. LNG and storage system operators shall always disclose the information required by this Regulation in a meaningful, quantifiably clear and easily accessible way and on a non-discriminatory basis.

4. LNG and storage system operators shall make public the amount of gas in each storage or LNG facility, or group of storage facilities if that corresponds to the way in which the access is offered to system users, inflows and outflows, and the available storage and LNG facility capacities, including for those facilities exempted from third-party access. That information shall also be communicated to the transmission system operator, which shall make it public on an aggregated level per system or subsystem defined by the relevant points. The information shall be updated at least daily.

In cases in which a storage system user is the only user of a storage facility, the storage system user may submit to the national regulatory authority a reasoned request for confidential treatment of the data referred to in the first subparagraph. Where the national regulatory authority comes to the conclusion that such a request is justified, taking into account, in particular, the need to balance the interest of legitimate protection of business secrets, the disclosure of which would negatively affect the overall commercial strategy of the storage user, with the objective of creating a competitive internal gas market, it may allow the storage system operator not to make public the data referred to in the first subparagraph, for a duration of up to one year.

The second subparagraph shall apply without prejudice to the obligations of communication to and publication by the transmission system operator referred to in the first subparagraph, unless the aggregated data are identical to the individual storage system data for which the national regulatory authority has approved non-publication.

5. In order to ensure transparent, objective and non-discriminatory tariffs and facilitate efficient utilisation of the infrastructures, the LNG and storage facility operators F21 ... shall make public sufficiently detailed information on tariff derivation, the methodologies and the structure of tariffs for infrastructure under regulated third-party access.

Textual Amendments

F21 Words in Art. 19(5) omitted (31.12.2020) by virtue of The Electricity and Gas etc. (Amendment etc.) (EU Exit) Regulations 2019 (S.I. 2019/530), reg. 1(1), Sch. 2 para. 9; 2020 c. 1, Sch. 5 para. 1(1)

Article 20 U.K. Record keeping by system operators

Transmission system operators, storage system operators and LNG system operators shall keep at the disposal of the national authorities, including the national regulatory authority, [F22 the national regulatory authority and the Competition and Markets Authority], all information referred to in Articles 18 and 19, and in Part 3 of Annex I for a period of five years.

Textual Amendments

F22 Words in Art. 20 substituted (31.12.2020) by The Electricity and Gas etc. (Amendment etc.) (EU Exit) Regulations 2019 (S.I. 2019/530), reg. 1(1), Sch. 2 para. 10; 2020 c. 1, Sch. 5 para. 1(1)

Article 21 U.K. Balancing rules and imbalance charges

1. Balancing rules shall be designed in a fair, non-discriminatory and transparent manner and shall be based on objective criteria. Balancing rules shall reflect genuine system needs taking into account the resources available to the transmission system operator. Balancing rules shall be market-based.

2. In order to enable network users to take timely corrective action, the transmission system operator shall provide sufficient, well-timed and reliable on-line based information on the balancing status of network users.

The information provided shall reflect the level of information available to the transmission system operator and the settlement period for which imbalance charges are calculated.

No charge shall be made for the provision of information under this paragraph.

3. Imbalance charges shall be cost-reflective to the extent possible, whilst providing appropriate incentives on network users to balance their input and off-take of gas. They shall avoid cross-subsidisation between network users and shall not hamper the entry of new market entrants.

Any calculation methodology for imbalance charges as well as the final tariffs shall be made public by the competent authorities or the transmission system operator, as appropriate.

[F23 4. Transmission system operators must, in order to facilitate gas trade, endeavour to harmonise balancing regimes and streamline structures and levels of balancing charges with those of transmission systems—

(a) in the other part of the United Kingdom and connected member States; and

(b) if the national regulatory authority so directs, in connected third countries.]

Textual Amendments

F23 Art. 21(4) substituted (31.12.2020) by The Electricity and Gas etc. (Amendment etc.) (EU Exit) Regulations 2019 (S.I. 2019/530), reg. 1(1), Sch. 2 para. 11; 2020 c. 1, Sch. 5 para. 1(1)

Article 22 U.K. Trading of capacity rights

Each transmission, storage and LNG system operator shall take reasonable steps to allow capacity rights to be freely tradable and to facilitate such trade in a transparent and non-discriminatory manner. Every such operator shall develop harmonised transport, LNG facility and storage contracts and procedures on the primary market to facilitate secondary trade of capacity and shall recognise the transfer of primary capacity rights where notified by system users.

The harmonised transport, LNG facility and storage contracts and procedures shall be notified to the [F24 national regulatory authority].

Textual Amendments

F24 Words in Art. 22 substituted (31.12.2020) by The Electricity and Gas etc. (Amendment etc.) (EU Exit) Regulations 2019 (S.I. 2019/530), reg. 1(1), Sch. 2 para. 12; 2020 c. 1, Sch. 5 para. 1(1)

[F25 Article 23 U.K. Amendment of Annex I

1. A national authority may, by regulations, amend Annex I to this Regulation.

2. In this Article, “national authority” has the same meaning as in Article 6.]

Textual Amendments

F25 Art. 23 substituted (31.12.2020) by The Electricity and Gas (Powers to Make Subordinate Legislation) (Amendment) (EU Exit) Regulations 2018 (S.I. 2018/1286), regs. 1(2)(b), 12; 2020 c. 1, Sch. 5 para. 1(1)

Article 24 U.K. [F26 The national regulatory authority]

When carrying out [F27 its] responsibilities under this Regulation, the [F28 national regulatory authority] shall ensure compliance with this Regulation F29 ....

F30 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

F26 Art. 24 heading substituted (31.12.2020) by The Electricity and Gas etc. (Amendment etc.) (EU Exit) Regulations 2019 (S.I. 2019/530), reg. 1(1), Sch. 2 para. 13(2); 2020 c. 1, Sch. 5 para. 1(1)

F27 Word in Art. 24 substituted (31.12.2020) by The Electricity and Gas etc. (Amendment etc.) (EU Exit) Regulations 2019 (S.I. 2019/530), reg. 1(1), Sch. 2 para. 13(3)(a); 2020 c. 1, Sch. 5 para. 1(1)

F28 Words in Art. 24 substituted (31.12.2020) by The Electricity and Gas etc. (Amendment etc.) (EU Exit) Regulations 2019 (S.I. 2019/530), reg. 1(1), Sch. 2 para. 13(3)(b); 2020 c. 1, Sch. 5 para. 1(1)

F29 Words in Art. 24 omitted (31.12.2020) by virtue of The Electricity and Gas etc. (Amendment etc.) (EU Exit) Regulations 2019 (S.I. 2019/530), reg. 1(1), Sch. 2 para. 13(3)(c); 2020 c. 1, Sch. 5 para. 1(1)

F30 Words in Art. 24 omitted (31.12.2020) by virtue of The Electricity and Gas etc. (Amendment etc.) (EU Exit) Regulations 2019 (S.I. 2019/530), reg. 1(1), Sch. 2 para. 13(4); 2020 c. 1, Sch. 5 para. 1(1)

Article 25 U.K. Provision of information

F31 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

The Commission shall set a reasonable time limit within which the information is to be provided, taking into account the complexity of the information required and the urgency with which the information is needed.

Textual Amendments

F31 Arts. 25-27 omitted (31.12.2020) by virtue of The Electricity and Gas etc. (Amendment etc.) (EU Exit) Regulations 2019 (S.I. 2019/530), reg. 1(1), Sch. 2 para. 14; 2020 c. 1, Sch. 5 para. 1(1)

F31 Article 26 U.K. Right of Member States to provide for more detailed measures

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

F31 Arts. 25-27 omitted (31.12.2020) by virtue of The Electricity and Gas etc. (Amendment etc.) (EU Exit) Regulations 2019 (S.I. 2019/530), reg. 1(1), Sch. 2 para. 14; 2020 c. 1, Sch. 5 para. 1(1)

F31 Article 27 U.K. Penalties

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

F31 Arts. 25-27 omitted (31.12.2020) by virtue of The Electricity and Gas etc. (Amendment etc.) (EU Exit) Regulations 2019 (S.I. 2019/530), reg. 1(1), Sch. 2 para. 14; 2020 c. 1, Sch. 5 para. 1(1)

F32 Article 28 U.K. Committee procedure

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

F32 Art. 28 omitted (31.12.2020) by virtue of The Electricity and Gas (Powers to Make Subordinate Legislation) (Amendment) (EU Exit) Regulations 2018 (S.I. 2018/1286), regs. 1(2)(b), 13; 2020 c. 1, Sch. 5 para. 1(1)

[F33 Article 28A U.K. Regulations made by the Secretary of State: consultation and procedure

1. Any power to make regulations conferred on the Secretary of State by this Regulation is exercisable by statutory instrument.

2. Before the Secretary of State makes regulations under Article 6 which apply to Northern Ireland, the Secretary of State must consult the Northern Ireland department.

3. Before the Secretary of State makes regulations under Article 7 or Article 23 which apply to Great Britain, the Secretary of State must consult—

(a) the Gas and Electricity Markets Authority;

(b) persons who are certified, within the meaning given in section 8Q of the Gas Act 1986; and

(c) such other persons as the Secretary of State considers appropriate.

4. Before the Secretary of State makes regulations under Article 7 or Article 23 which apply to Northern Ireland, the Secretary of State must consult—

(a) the Northern Ireland department;

(b) the Northern Ireland Authority for Utility Regulation;

(c) persons who are certified, within the meaning given in Article 8L of the Gas (Northern Ireland) Order 1996; and

(d) such other persons as the Secretary of State considers appropriate.

5. A statutory instrument containing regulations by the Secretary of State may not be made unless a draft of the instrument has been laid before, and approved by a resolution of, each House of Parliament.

6. In this Article, “the Northern Ireland department” has the same meaning as in Article 6.

Textual Amendments

F33 Arts. 28A, 28B inserted (31.12.2020) by The Electricity and Gas (Powers to Make Subordinate Legislation) (Amendment) (EU Exit) Regulations 2018 (S.I. 2018/1286), regs. 1(2)(b), 14; 2020 c. 1, Sch. 5 para. 1(1)

Article 28B U.K. Regulations made by the Northern Ireland department: consultation and procedure

1. Any power to make regulations conferred on the Northern Ireland department by this Regulation is exercisable by statutory rule for the purpose of the Statutory Rules (Northern Ireland) Order 1979.

2. Before the Northern Ireland department makes regulations under Article 7 or Article 23, it must consult—

(a) the Northern Ireland Authority for Utility Regulation;

(b) persons who are certified, within the meaning given in Article 8L of the Gas (Northern Ireland) Order 1996; and

(c) such other persons as it considers appropriate.

3. Regulations may not be made by the Northern Ireland department under this Regulation unless a draft of the regulations has been laid before, and approved by a resolution of, the Northern Ireland Assembly.

4. In this Article, “the Northern Ireland department” has the same meaning as in Article 6.]

Textual Amendments

F33 Arts. 28A, 28B inserted (31.12.2020) by The Electricity and Gas (Powers to Make Subordinate Legislation) (Amendment) (EU Exit) Regulations 2018 (S.I. 2018/1286), regs. 1(2)(b), 14; 2020 c. 1, Sch. 5 para. 1(1)

F34 Article 29 U.K. Commission report

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

F34 Art. 29 omitted (31.12.2020) by virtue of The Electricity and Gas etc. (Amendment etc.) (EU Exit) Regulations 2019 (S.I. 2019/530), reg. 1(1), Sch. 2 para. 15; 2020 c. 1, Sch. 5 para. 1(1)

F35 Article 30 U.K. Derogations and exemptions

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Textual Amendments

F35 Arts. 30A, 30B substituted for Art. 30 (31.12.2020) by The Electricity and Gas etc. (Amendment etc.) (EU Exit) Regulations 2019 (S.I. 2019/530), reg. 1(1), Sch. 2 para. 16; 2020 c. 1, Sch. 5 para. 1(1)

[F35 Article 30A U.K. Derogations and exemptions: Great Britain

This Regulation, except for Article 19(4), does not apply to any of the infrastructure referred to in paragraph (a), (b) or (c), for so long as the certification or exemption referred to in that paragraph is in force—

(a) an interconnector, the operator of which is certified by the national regulatory authority under section 8F of the Gas Act 1986 on one of the certification grounds in section 8G (7) or (8) of that Act;

(b) a storage facility which is exempt under section 19A of the Gas Act 1986; or

(c) an LNG facility which is exempt under section 19C of the Gas Act 1986.

Textual Amendments

F35 Arts. 30A, 30B substituted for Art. 30 (31.12.2020) by The Electricity and Gas etc. (Amendment etc.) (EU Exit) Regulations 2019 (S.I. 2019/530), reg. 1(1), Sch. 2 para. 16; 2020 c. 1, Sch. 5 para. 1(1)

Article 30B U.K. Derogations and exemptions: Northern Ireland

This Regulation, except for Article 19(4), does not apply to any of the infrastructure referred to in paragraph (a), (b), (c) or (d), for so long as the certification or exemption referred to in that paragraph is in force—

(a) an interconnector, the operator of which is certified by the national regulatory authority under Article 8E of the Gas (Northern Ireland) Order 1996 on the certification ground in Article 8F(6) of that Order;

(b) a transmission system in relation to which an exemption has been granted under Article 10B(1) of the Gas (Northern Ireland) Order 1996;

(c) a storage facility in relation to which an exemption has been granted under Article 39A of the Gas (Northern Ireland) Order 1996; or

(d) an LNG facility in relation to which an exemption has been granted under Article 39A of the Gas (Northern Ireland) Order 1996.]

Textual Amendments

F35 Arts. 30A, 30B substituted for Art. 30 (31.12.2020) by The Electricity and Gas etc. (Amendment etc.) (EU Exit) Regulations 2019 (S.I. 2019/530), reg. 1(1), Sch. 2 para. 16; 2020 c. 1, Sch. 5 para. 1(1)

Article 31 U.K. Repeal

 [F36 References made to Regulation (EC) No. 1775/2005 in retained direct EU legislation are to be construed as references to this Regulation and read in accordance with the correlation table in Annex II.]

Textual Amendments

F36 Words in Art. 31 substituted (31.12.2020) by The Electricity and Gas etc. (Amendment etc.) (EU Exit) Regulations 2019 (S.I. 2019/530), reg. 1(1), Sch. 2 para. 17; 2020 c. 1, Sch. 5 para. 1(1)

[X1 Article 32 U.K. Entry into force

This Regulation shall enter into force on the 20th day following its publication in the Official Journal of the European Union .

It shall apply from 3 March 2011.]

Editorial Information

X1 Substituted by Corrigendum to Regulation (EC) No 715/2009 of the European Parliament and of the Council of 13 July 2009 on conditions for access to the natural gas transmission networks and repealing Regulation (EC) No 1775/2005 (Official Journal of the European Union L 211 of 14 August 2009).

F37 ...

Textual Amendments

F37 Words in Signature omitted (31.12.2020) by virtue of The Electricity and Gas etc. (Amendment etc.) (EU Exit) Regulations 2019 (S.I. 2019/530), reg. 1(1), Sch. 2 para. 18; 2020 c. 1, Sch. 5 para. 1(1)