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Regulation (EU) 2017/1938 of the European Parliament and of the CouncilShow full title

Regulation (EU) 2017/1938 of the European Parliament and of the Council of 25 October 2017 concerning measures to safeguard the security of gas supply and repealing Regulation (EU) No 994/2010 (Text with EEA relevance)

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Changes over time for: Regulation (EU) 2017/1938 of the European Parliament and of the Council (without Annexes)

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Article 1U.K.Subject matter

This Regulation establishes provisions aiming to safeguard the security of gas supply in [F1the United Kingdom] by ensuring the proper and continuous functioning of the [F2market in natural gas (‘gas’) in the United Kingdom], by allowing for exceptional measures to be implemented when the market can no longer deliver the gas supplies required F3... and by providing for the clear definition and attribution of responsibilities among natural gas undertakings, [F4the Secretary of State, the Northern Ireland department and the regulatory authority] regarding both preventive action and the reaction to concrete disruptions of gas supply. This Regulation also establishes transparent mechanisms concerning F5... the coordination of planning for, and response to, emergencies F6....

Article 2U.K.Definitions

[F71]For the purposes of this Regulation, the following definitions apply:

(A1)

[F8‘the Gas Regulation’ means Regulation (EC) No 715/2009 of the European Parliament and of the Council on conditions for access to natural gas transmission networks;

(A2)

‘the Northern Ireland department’ means the Department for the Economy;]

(1)

‘security’ means security as defined in point 32 of Article 2 of Directive 2009/73/EC;

(2)

F9...

(3)

‘household customer’ means household customer as defined in point 25 of Article 2 of Directive 2009/73/EC;

(4)

‘essential social service’ means a service related to healthcare, essential social care, emergency, security, education or public administration;

(5)

‘protected customer’ means a household customer who is connected to a gas distribution network and, in addition, where the [F10Secretary of State] so decides, may also mean one or more of the following, provided that enterprises or services as referred to in points (a) and (b) do not, jointly, represent more than 20 % of the total annual final gas consumption in [F11the United Kingdom]:

(a)

a small or medium-sized enterprise, provided that it is connected to a gas distribution network;

(b)

an essential social service, provided that it is connected to a gas distribution or transmission network;

(c)

a district heating installation to the extent that it delivers heating to household customers, small or medium-sized enterprises, or essential social services, provided that such installation is not able to switch to other fuels than gas;

(6)

F12...

(7)

‘competent authority’ [F13, in relation to a member State,] means a national governmental authority or a national regulatory authority designated by a [F14member] State to ensure the implementation of the measures provided for in this Regulation [F15as it applies in EU law];

(8)

‘national regulatory authority’ [F16, in relation to a member State,] means a national regulatory authority designated in accordance with Article 39(1) of Directive 2009/73/EC;

(8A)

[F17‘regulatory authority’—

(a)

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

(b)

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

(9)

F18...

(10)

‘gas supply contract’ means gas supply contract as defined in point 34 of Article 2 of Directive 2009/73/EC;

(11)

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(12)

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(13)

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(14)

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(15)

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(16)

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(17)

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(18)

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(19)

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(20)

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(21)

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(22)

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(23)

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(24)

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(25)

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(26)

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[F202.For the purposes of this Regulation, the following expressions have the meanings given in the Gas Regulation—

  • ‘ancillary services’;

  • ‘customer’;

  • ‘distribution’;

  • ‘distribution system operator’;

  • ‘firm capacity’;

  • ‘interconnector’;

  • ‘interruptible capacity’;

  • ‘LNG facility’;

  • ‘LNG facility capacity’;

  • ‘natural gas undertaking’;

  • ‘storage capacity’;

  • ‘system’;

  • ‘system user’;

  • ‘technical capacity’;

  • ‘transmission’;

  • ‘transmission system operator’.]

Textual Amendments

Article 3U.K.Responsibility for the security of gas supply

1.The security of gas supply shall be the shared responsibility of natural gas undertakings [F21, the Secretary of State, the Northern Ireland department and the regulatory authority] within their respective areas of activity and competence.

2.F22... [F23The Secretary of State may] delegate specific tasks set out in this Regulation to other bodies [F24, including the Northern Ireland department]. Where [F25the Secretary of State delegates] the task of declaring any of the crisis levels referred to in Article 11(1), [F26the Secretary of State] shall do so only to a public authority, a transmission system operator or a distribution system operator. Delegated tasks shall be performed under the supervision of the [F27Secretary of State] and shall be specified in the preventive action plan and in the emergency plan.

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4.When implementing the measures provided for in this Regulation, [F29the Secretary of State] shall establish the roles and responsibilities of the different actors concerned in such a way as to ensure [F30an] approach which involvesF31... the relevant natural gas undertakings, electricity undertakings where appropriate, and industry F32....

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Textual Amendments

F35Article 4U.K.Gas Coordination Group

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Article 5U.K.Infrastructure standard

1.[F36The Secretary of State] shall ensure that the necessary measures are taken so that in the event of a disruption of the single largest gas infrastructure, the technical capacity of the remaining infrastructure, determined in accordance with the N – 1 formula as set out in point 2 of Annex II, is able, without prejudice to paragraph 2 of this Article, to satisfy total gas demand of the calculated area during a day of exceptionally high gas demand occurring with a statistical probability of once in 20 years. This shall be done taking into account gas consumption trends, the long-term impact of energy efficiency measures and the utilisation rates of existing infrastructure.

The obligation set out in the first subparagraph of this paragraph shall be without prejudice to the responsibility of the transmission system operators to make the corresponding investments and to [F37the relevant obligations of transmission system operators].

[F38For the purposes of the preceding subparagraph, a “relevant obligation” is—

(a)an obligation laid down in the Gas Regulation;

(b)an obligation imposed before IP completion day for the purpose of implementing Directive 2009/73/EC (including such an obligation as modified on or after IP completion day); or

(c)an obligation imposed on or after IP completion day which is the same as or similar to an obligation which could have been imposed before IP completion day for the purpose of implementing Directive 2009/73/EC.]

2.The obligation to ensure that the remaining infrastructure has the technical capacity to satisfy total gas demand, as referred to in paragraph 1 of this Article, shall also be considered to be fulfilled where the [F39Secretary of State] demonstrates in the preventive action plan that a disruption of gas supply may be sufficiently compensated for, in a timely manner, by appropriate market-based demand-side measures. For that purpose, the N – 1 formula shall be calculated as set out in point 4 of Annex II.

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4.[F41The transmission system operators must endeavour to] enable permanent physical capacity to transport gas in both directions (‘bi-directional capacity’) [F42on all interconnections between the United Kingdom and member States], except:

(a)in the case of connections to production facilities, to LNG facilities and to distribution networks; or

(b)where an exemption from that obligation has been granted, after detailed assessment and after consulting F43... in accordance with Annex III.

For the procedure to enable or enhance bi-directional capacity on an interconnection or to obtain or prolong an exemption from that obligation Annex III shall apply. [F44The Secretary of State] shall make public the list of exemptions and keep it updated.

5.A proposal for enabling or enhancing bi-directional capacity or a request for granting or prolongation of an exemption shall include a cost-benefit analysis F45... based on the following elements:

(a)an assessment of market demand;

(b)projections for demand and supply;

(c)the possible economic impact on existing infrastructure;

(d)a feasibility study;

(e)the costs of bi-directional capacity including the necessary reinforcement of the transmission system; and

(f)the benefits to the security of gas supply taking into account the possible contribution of bi-directional capacity to meeting the infrastructure standard set out in this Article.

6.[F46The regulatory authority] shall take into account the efficiently incurred costs of fulfilling the obligation set out in paragraph 1 of this Article and the costs of enabling bi-directional capacity so as to grant appropriate incentives when fixing or approving, in a transparent and detailed manner, [F47the tariffs of transmission system operators or the methodologies used to calculate them].

[F487.In so far as an investment for enabling or enhancing bi-directional capacity is not required by the market but is considered to be necessary for security of gas supply purposes and where that investment incurs costs in the United Kingdom and a member State or in the United Kingdom for the benefit of a member State, the regulatory authority must endeavour to take a coordinated decision on cost allocation with the national regulatory authorities of the member States concerned before any investment decision is taken.

The cost allocation must take into account the proportion of the benefits of the infrastructure investments for the increase of the security of gas supply in the United Kingdom as well as investments already made in the infrastructure in question.

The cost allocation must not unduly distort competition and the effective functioning of the market in the United Kingdom and must seek to avoid any undue distortive effect on the market.]

8.The [F49Secretary of State] shall ensure that any new transmission infrastructure contributes to the security of gas supply through the development of a well-connected network, including, where appropriate, by means of a sufficient number of cross-border entry and exit points relative to market demand and the risks identified.

The [F49Secretary of State] shall assess in the risk assessment whether, with an integrated perspective on gas and electricity systems, internal bottlenecks exist and national entry capacity and infrastructure, in particular transmission networks, are capable of adapting the national and cross-border gas flows to the scenario of disruption of the single largest gas infrastructure at national level F50....

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Textual Amendments

Article 6U.K.Gas supply standard

1.The [F52Secretary of State] shall require [F53natural gas undertakings to take measures to ensure the gas supply to protected customers] in each of the following cases:

(a)extreme temperatures during a 7-day peak period occurring with a statistical probability of once in 20 years;

(b)any period of 30 days of exceptionally high gas demand, occurring with a statistical probability of once in 20 years;

(c)for a period of 30 days in the case of disruption of the single largest gas infrastructure under average winter conditions.

F54...

The [F52Secretary of State] shall identify the natural gas undertakings referred to in the first subparagraph of this paragraph and shall specify them in the preventive action plan.

Any new non-market-based measures envisaged to ensure the gas supply standard shall comply with the procedure established in [F55Article 9(4) and (5)].

[F56Compliance] with the obligation laid down in the first subparagraph [F57may be] through the implementation of energy efficiency measures or by replacing the gas with a different source of energy, inter alia, renewable energy sources, to the extent that the same level of protection is achieved.

2.Any increased gas supply standard beyond the 30-day period referred to in points (b) and (c) of paragraph 1 or any additional obligation imposed for reasons of security of gas supply shall be based on the risk assessment, shall be reflected in the preventive action plan and shall:

(a)comply with Article 8(1);

F58(b). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F58(c). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F59...

Any new non-market-based measure pursuant to the first subparagraph of this paragraph, adopted on or after 1 November 2017, shall comply with the procedure established in [F60Article 9(4) and (5)].

3.After the expiry of the periods laid down by the [F61Secretary of State] in accordance with paragraphs 1 and 2, or under more severe conditions than those laid down in paragraph 1, the [F61Secretary of State] and natural gas undertakings shall endeavour to maintain, as far as possible, the gas supply, in particular to protected customers.

4.The obligations imposed on natural gas undertakings for the fulfilment of the gas supply standards laid down in this Article shall be non-discriminatory and shall not impose an undue burden on those undertakings.

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6.The [F63Secretary of State] shall ensure that conditions for supplies to protected customers are established without prejudice to the proper functioning of the [F64energy market in the United Kingdom] and at a price respecting the market value of the supplies.

Textual Amendments

Article 7U.K.Risk assessment

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3.The [F66Secretary of State] shall make a national risk assessment (‘national risk assessment’) of all relevant risks affecting the security of gas supply [F67in the United Kingdom]. F68...

4.The risk [F69assessment] referred to in [F70paragraph 3] of this Article shall be carried out, as relevant, by:

(a)using the standards specified in Articles 5 and 6. The risk assessment shall describe the calculation of the N – 1 formula at national level F71.... The risk assessment shall also include the assumptions usedF72... and the data necessary for such calculation. The calculation of the N – 1 formula at national level shall be accompanied by a simulation of disruption of the single largest gas infrastructure using hydraulic modelling for the national territory as well as by a calculation of the N – 1 formula considering the level of gas in storages at 30 % and 100 % of the maximum working volume;

(b)taking into account all relevant national and transnational circumstances, in particular market size, network configuration, actual flows, including outflows from [F73the transmission systems of Great Britain and Northern Ireland], the possibility of physical gas flows in both directions including the potential need for consequent reinforcement of the transmission system, the presence of production and storage and the role of gas in the energy mixes, in particular with respect to district heating and electricity generation and for the operation of industries, and safety and gas quality considerations;

(c)running various scenarios of exceptionally high demand for gas and disruption of gas supply, taking into account the history, probability, season, frequency and duration of their occurrence and assessing their likely consequences, such as:

(i)

disruption of the infrastructure relevant to the security of gas supply, in particular transmission infrastructure, storages or LNG terminals, including the largest gas infrastructure identified for the calculation of N – 1 formula; and

(ii)

disruption of supplies from [F74outside the United Kingdom], as well as, where appropriate, geopolitical risks;

F75(d). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(e)taking into account risks relating to the control of infrastructure relevant to the security of gas supply to the extent that they may involve, inter alia, risks of underinvestment, undermining diversification, misuse of existing infrastructure or an infringement of [F76retained EU law];

(f)taking into account the maximal interconnection capacity of each border entry and exit point and various filling levels for storage.

5.The [F77national risk assessment] shall be prepared in accordance with the F78... template set out in Annex F79... V. If necessary, [F80the Secretary of State] may include additional information. F81...

[F825A.The Secretary of State may, by regulations, amend the template set out in Annex V in order to reflect the experience gained in the application of this Regulation and to reduce administrative burdens.]

6.Natural gas undertakings, industrial gas customers, the relevant organisations representing the interests of household and industrial gas customers [F83, the Northern Ireland department and the regulatory authority, must cooperate with the Secretary of State and provide the Secretary of State upon request with all necessary information for the national risk assessment].

7.F84... [F85The risk assessments must be updated by 1st October 2022 and every four years thereafter unless circumstances warrant more frequent updates.] The risk assessments shall take account of progress made in investments needed to cope with the infrastructure standard defined in Article 5 and F86... difficulties encountered in the implementation of new alternative solutions. They shall also build on the experience acquired through the simulation of the emergency plans contained in Article 10(3).

Textual Amendments

Article 8U.K.Establishment of preventive action plans and emergency plans

1.The measures to ensure the security of gas supply contained in a preventive action plan and an emergency plan shall be clearly defined, transparent, proportionate, non-discriminatory and verifiable, shall not unduly distort competition [F87in the United Kingdom] or the effective functioning of the [F88gas market in the United Kingdom].

2.[F89The Secretary of State must], after consulting the natural gas undertakings, the relevant organisations representing the interests of household and industrial gas customers, including electricity producers, electricity transmission system operators, and [F90the regulatory authority] establish:

(a)a preventive action plan containing the measures needed to remove or mitigate the risks identified, including the effects of energy efficiency and demand-side measures in the F91... [F92national] risk assessments and in accordance with Article 9;

(b)an emergency plan containing the measures to be taken to remove or mitigate the impact of a disruption of gas supply in accordance with Article 10.

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5.The preventive action plan and the emergency plan shall be developed in accordance with the templates contained in Annexes VI and VII. F94...

[F955A.The Secretary of State may, by regulations, amend the templates set out in Annexes VI and VII in order to reflect the experience gained in the application of this Regulation and to reduce administrative burdens.]

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7.The preventive action plans and the emergency plans shall be made public F97... by 1 March 2019. F98...

F99...

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11.The confidentiality of commercially sensitive information shall be preserved.

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Textual Amendments

Article 9U.K.Content of preventive action plans

1.The preventive action plan shall contain:

(a)the results of the risk assessment and a summary of the scenarios considered, as referred to in point (c) of Article 7(4);

[F104(b)the definition of protected customers, the annual gas consumption volumes of the protected customers and the percentage that those consumption volumes represent of the total annual final gas consumption in the United Kingdom;

(ba)where the definition of protected customers incudes the categories referred to in point (5)(a) or (b) of Article 2, the gas consumption volumes corresponding to customers belonging to those categories and the percentage that each of those groups of customers represents in total final gas consumption;]

(c)the measures, volumes and capacities needed to fulfil the infrastructure and gas supply standards laid down in Articles 5 and 6, including, where applicable, the extent to which demand-side measures can sufficiently compensate, in a timely manner, for a disruption of gas supply as referred to in Article 5(2), F105... the necessary gas volumes per category of protected customers and per scenario as referred to in Article 6(1), and any increased gas supply standard F106... and a description of a mechanism to reduce temporarily any increased gas supply standard F107...;

(d)obligations imposed on natural gas undertakings, electricity undertakings where appropriate, and other relevant bodies likely to have an impact on the security of gas supply, such as obligations for the safe operation of the gas system;

(e)other preventive measures designed to address the risks identified in the risk assessment, such as those relating to the need to enhance interconnections between [F108the United Kingdom and neighbouring relevant States], to further improve energy efficiency, to reduce gas demand and the possibility to diversify gas routes and sources of gas supply and the regional utilisation of existing storage and LNG capacities, if appropriate, in order to maintain gas supply to all customers as far as possible;

(f)information on the economic impact, effectiveness and efficiency of the measures contained in the plan, including the obligations referred to in point (k);

(g)a description of the effects of the measures contained in the plan on the functioning of the [F109energy market in the United Kingdom], including the obligations referred to in point (k);

(h)a description of the impact of the measures on the environment and on customers;

(i)the mechanisms to be used for [F110endeavouring to cooperate with member States], including the mechanisms for preparing and implementing preventive action plans and emergency plans;

(j)information on existing and future interconnections and infrastructure, including those providing access to [F111the market in member States], cross-border flows, cross-border access to storage and LNG facilities and the bi-directional capacity, in particular in the event of an emergency;

(k)information on all public service obligations that relate to the security of gas supply.

Critical information relating to points (a), (c) and (d) of the first subparagraph which, if revealed, could endanger the security of gas supply, may be excluded.

[F112For the purposes of point (e) of the first subparagraph, “neighbouring relevant States” means Belgium, Denmark, France, Germany, Ireland, Italy, Luxembourg, Netherlands, Norway, Portugal, Spain and Sweden.]

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3.The preventive action plan shall be based primarily on market-based measures and shall not put an undue burden on natural gas undertakings, or negatively impact on the functioning of the [F114market in gas in the United Kingdom].

4.[F115The Secretary of State] shall ensure that all preventive non-market-based measures, such as those referred to in Annex VIII, adopted on or after 1 November 2017, irrespective of whether they are part of the preventive action plan or adopted subsequently, comply with the criteria laid down in the first subparagraph of Article 6(2).

5.The [F116Secretary of State] shall make public any measure referred to in paragraph 4 which has not yet been included in the preventive action planF117....

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11.The preventive action plan shall be updated every four years after 1 March 2019 or more frequently if the circumstances so warrant F119.... The updated plan shall reflect the updated risk assessment and the results of the tests carried out in accordance with Article 10(3). Article 8 shall apply to the updated plan.

Textual Amendments

Article 10U.K.Content of emergency plans

1.The emergency plan shall:

(a)build upon the crisis levels referred to in Article 11(1);

(b)define the role and responsibilities of natural gas undertakings, transmission system operators for electricity if relevant and of industrial gas customers including relevant electricity producers, taking account of the different extent to which they are affected in the event of a disruption of gas supply, and their interaction with the [F120Secretary of State] and where appropriate with the [F121regulatory authority] at each of the crisis levels referred to in Article 11(1);

(c)define the role and responsibilities of the [F122Secretary of State] and of the other bodies to which tasks have been delegated as referred to in Article 3(2) at each of the crisis levels referred to in Article 11(1);

(d)ensure that natural gas undertakings and industrial gas customers including relevant electricity producers are given sufficient opportunity to respond to the crisis levels referred to in Article 11(1);

(e)identify, if appropriate, the measures and actions to be taken to mitigate the potential impact of a disruption of gas supply on district heating and the supply of electricity generated from gas, including through an integrated view of energy systems operations across electricity and gas if relevant;

(f)establish detailed procedures and measures to be followed for the crisis levels referred to in Article 11(1), including the corresponding schemes on information flows;

(g)designate a crisis manager and define its role;

(h)identify the contribution of market-based measures for coping with the situation at alert level and mitigating the situation at emergency level;

(i)identify the contribution of non-market-based measures planned or to be implemented for the emergency level, and assess the degree to which the use of such non-market-based measures is necessary to cope with a crisis. The effects of the non-market-based measures shall be assessed and procedures for their implementation defined. Non-market-based measures are to be used only when market-based mechanisms alone can no longer ensure supplies, in particular to protected customersF123...;

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(k)detail the reporting obligations imposed on natural gas undertakings and, where appropriate, electricity undertakings at alert and emergency levels;

(l)describe the technical or legal arrangements in place to prevent undue gas consumption of customers who are connected to a gas distribution or transmission network but not protected customers;

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(o)establish a list of predefined actions to make gas available in the event of an emergency, including commercial agreements between the parties involved in such actions and the compensation mechanisms for natural gas undertakings where appropriate, taking due account of the confidentiality of sensitive data. Such actions may involve cross-border agreements between [F126the United Kingdom and member States, or between natural gas undertakings].

In order to prevent undue gas consumption during an emergency, as referred to in point (l) of the first subparagraph [F127the Secretary of State] shall inform customers who are not protected customers that they are required to cease or reduce their gas consumption without creating technically unsafe situations.

2.The emergency plan shall be updated every four years after 1 March 2019 or more frequently if circumstances so warrant F128.... The updated plan shall reflect the updated risk assessment and the results of the tests carried out in accordance with paragraph 3 of this Article. [F129Article 8(5), (7) and (11) apply to the updated plan.]

3.The measures, actions and procedures contained in the emergency plan shall be tested at least once between its four-year updates referred to in paragraph 2. In order to test the emergency plan, the [F130Secretary of State] shall simulate high and medium impact scenarios and responses in real time in accordance with that emergency plan. F131...

4.The emergency plan shall ensure that cross-border access to infrastructure in accordance with Regulation (EC) No 715/2009 is maintained as far as technically and safely possible in the event of an emergency and shall not introduce any measure unduly restricting the flow of gas across borders.

Textual Amendments

Article 11U.K.Declaration of a crisis

1.There shall be the following three crisis levels:

(a)early warning level (‘early warning’): where there is concrete, serious and reliable information that an event which is likely to result in significant deterioration of the gas supply situation may occur and is likely to lead to the alert or the emergency level being triggered; the early warning level may be activated by an early warning mechanism;

(b)alert level (‘alert’): where a disruption of gas supply or exceptionally high gas demand which results in significant deterioration of the gas supply situation occurs but the market is still able to manage that disruption or demand without the need to resort to non-market-based measures;

(c)emergency level (‘emergency’): where there is exceptionally high gas demand, significant disruption of gas supply or other significant deterioration of the gas supply situation and all relevant market-based measures have been implemented but the gas supply is insufficient to meet the remaining gas demand so that non-market-based measures have to be additionally introduced with a view, in particular, to safeguarding gas supplies to protected customers in accordance with Article 6.

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[F1334.When an emergency is declared the Secretary of State must follow the pre-defined action as set out in the emergency plan. In duly justified exceptional circumstances, the Secretary of State may take action deviating from the emergency plan.]

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6.The [F135Secretary of State] shall ensure that:

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F136(b). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(c)cross-border access to infrastructure in accordance with Regulation (EC) No 715/2009 is maintained as far as technically and safely possible, in accordance with the emergency plan.

7.During an emergency and on reasonable grounds, upon a request of the relevant electricity or gas transmission system operator [F137the Secretary of State] may decide to prioritise the gas supply to certain critical gas-fired power plants over the gas supply to certain categories of protected customers, if the lack of gas supply to such critical gas-fired power plants either:

(a)could result in severe damage in the functioning of the electricity system; or

(b)would hamper the production and/or transportation of gas.

[F138The Secretary of State] shall base any such measure on the risk assessment.

F139...

F1408.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F1409.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

F141Article 12U.K.Regional and Union emergency responses

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

F141Article 13U.K.Solidarity

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

Article 14U.K.Information exchange

1.[F142Where one of the crisis levels referred to in Article 11(1) has been declared], the natural gas undertakings concerned shall make available, on a daily basis, in particular the following information to the [F143Secretary of State]:

(a)the daily gas demand and gas supply forecasts for the following three days, in million cubic metres per day (mcm/d);

(b)the daily flow of gas at all cross-border entry and exit points as well as at all points connecting a production facility, a storage facility or an LNG terminal to the network, in million cubic metres per day (mcm/d);

(c)the period, expressed in days, for which it is expected that supply of gas to protected customers can be ensured.

F1442.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F1443.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

4.In duly justified circumstances irrespective of a declaration of an emergency, the [F145Secretary of State] may require natural gas undertakings to provide the information referred to in paragraph 1 or additional information necessary to assess the overall situation of the gas supply in [F146the United Kingdom], including contractual information, other than price information. F147...

F1485.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

6.In order for the [F149Secretary of State] to assess the security of gas supply situation F150... each natural gas undertaking shall notify:

(a)to the [F151Secretary of State] the following details of gas supply contracts with a cross-border dimension and a duration of more than one year which it has concluded to procure gas:

(i)

contract duration;

(ii)

yearly contracted volumes;

(iii)

contracted maximum daily volumes in the event of an alert or emergency;

(iv)

contracted delivery points;

(v)

minimum daily and monthly gas volumes;

(vi)

conditions for the suspension of gas deliveries.

(vii)

an indication whether the contract individually or cumulatively with its contracts with the same supplier or its affiliates is equivalent to or exceeds the threshold of 28 % as referred to in point (b) of paragraph 6 in the [F152United Kingdom].

(b)to the [F153Secretary of State] immediately after their conclusion or modification its gas supply contracts with a duration of more than one year, concluded or modified on or after 1 November 2017 that individually or cumulatively with its contracts with the same supplier or its affiliates is equivalent to 28 % or more of yearly gas consumption in [F154the United Kingdom] to be calculated on the basis of the most recent available data. In addition, by 2 November 2018 natural gas undertakings [F155must notify the Secretary of State] of all existing contracts fulfilling the same conditions. The notification obligation shall not cover price information and shall not apply to the modifications related only to the gas price. The notification obligation shall also apply to all commercial agreements that are relevant for the execution of the gas supply contract excluding price information.

F156... In the event of new contracts being concluded or changes being made to existing contracts, the whole set of data [F157must be notified to the Secretary of State] by the end of September of the relevant year. F158...

7.In circumstances duly justified by the need to guarantee transparency of key gas supply contracts relevant to the security of gas supply, and where the [F159Secretary of State] considers that a gas supply contract may jeopardise the security of gas supply of [F160the United Kingdom, the Secretary of State] may request the natural gas undertaking to provide the contract, excluding price information, for the assessment of its impact on the security of gas supply. The request shall be reasoned and may cover also details of any other commercial agreements that are relevant for the execution of the gas supply contract excluding price information. The justification shall include the proportionality of the administrative burden involved.

F1618.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

[F1629.The Secretary of State must take into account the information received under this Article in the preparation of the risk assessment, preventative action plan and emergency plan or their respective updates.]

F16310.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F16311.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

12.All contracts or contractual information received on the basis of paragraphs 6 and 7 [F164by the Secretary of State] shall remain confidential. The [F165Secretary of State] shall ensure full confidentiality.

Textual Amendments

Article 15U.K.Professional secrecy

1.Any commercially sensitive information received, exchanged or transmitted pursuant to [F166Article 14(4), (6) and (7)] shall be confidential and subject to the conditions of professional secrecy laid down in this Article.

2.The obligation of professional secrecy shall apply to the following persons who receive confidential information in accordance with this Regulation:

F167(a). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F167(b). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(c)[F168the Secretary of State and persons who are authorised or who have been authorised to represent the Secretary of State and the regulatory authority] or for other relevant authorities;

(d)auditors and experts instructed by [F169the Secretary of State and the regulatory authority] or by other relevant authorities.

3.Without prejudice to cases covered by criminal law, the other provisions of this Regulation or other relevant [F170retained EU] law, confidential information received by the persons referred to in paragraph 2 in the course of their duties may not be divulged to any other person or authority, except in summary or aggregate form such that an individual market participant or market place cannot be identified.

4.Without prejudice to cases covered by criminal law, [F171the Secretary of State, the regulatory authority], bodies or persons which receive confidential information pursuant to this Regulation may use confidential information only in the performance of their duties and for the exercise of their functions. Other authorities, bodies or persons may use that information for the purpose for which it was provided to them or in the context of administrative or judicial proceedings specifically related to the exercise of their functions.

F172Article 16U.K.Cooperation with the Energy Community Contracting Parties

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

F172Article 17U.K.Monitoring by the Commission

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

F172Article 18U.K.Notifications

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

F173Article 19U.K.Exercise of the delegation

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

[F174Article 19AU.K.Regulations: procedure

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

2.Before making regulations which apply to Northern Ireland, the Secretary of State must consult—

(a)the Department for the Economy; and

(b)the competent authority of the Republic of Ireland for the purposes of this Regulation as it applies in EU law.

3.A statutory instrument containing regulations made under this Regulation is subject to annulment in pursuance of a resolution of either House of Parliament.]

F175Article 20U.K.Derogation

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

F175Article 21U.K.Repeal

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

Article 22U.K.Entry into force

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

It shall apply from 1 November 2017.

However, Article 13(1) to (6), the first and second subparagraphs of Article 13(8), and Article 13(14) and (15) shall apply from 1 December 2018.

F176...

Done at Strasbourg, 25 October 2017.

For the European Parliament

The President

A. Tajani

For the Council

The President

M. Maasikas

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