The Gas (Internal Markets) Regulations (Northern Ireland) 2020

Explanatory Note

(This note is not part of the Regulations)

These Regulations inter alia amend the Gas (Northern Ireland) Order 1996 (“the Gas Order”) and the Energy (Northern Ireland) Order 2003 (“the Energy Order”) to ensure that they conform with the requirements of European Parliament and Council Directive 2009/73/EC (“the principal Directive”) concerning common rules for the internal market in natural gas as amended by European Parliament and Council Directive 2019/692 (“the amending Directive”).

For this purpose the Regulations make the following changes.

Regulations 4(1)(b) and 14 amend the definitions of the principal Directive in both the Gas Order and the Energy Order to ensure that references to that Directive in both Orders include references to it as amended by the amending Directive.

Regulation 4(1)(c) amends the definition of “gas storage facility” to bring such facilities in the territorial sea adjacent to Northern Ireland within the power of the Northern Ireland Authority for Utility Regulation (“the Authority”) to grant storage licences in relation to them. Such licences can be granted subject to appropriate conditions to ensure that they are operated in accordance with the requirements of the principal Directive and amending Directive. However, regulations 8 and 9 amend the provisions of the Gas Order requiring the consent of the Authority for the construction of gas storage facilities, or for an increase in their capacity, to exclude such facilities in the territorial sea which continue to be licensed in this respect by the Oil and Gas Authority under the Energy Act 2008. Regulation 17 makes a consequential change to that Act.

Article 10A of the Gas Order requires the Authority to include in licences issued under that Order conditions which implement the requirements of the principal Directive. Regulation 7(2) amends this provision to include a requirement that conditions are included in a gas conveyance licence in respect of upstream pipeline networks to ensure that natural gas undertakings and eligible customers are able to obtain access to them.

Article 38A of the Gas Order ensures that the granting of consents by the Authority for the construction or modification of major pipe-lines and gas storage facilities comply with the requirements of the principal Directive. Regulation 10 amends this provision to include consents for the construction or modification of LNG facilities by the Department or the Authority as the case may be. Regulation 11 provides that the Department or the Authority as the case may be shall inform the European Commission of any refusal to grant a consent.

Article 39A of the Gas Order provides for a procedure whereby major pipe-lines and gas storage and LNG facilities may be exempted from certain requirements imposed by the principal Directive. Regulation 12 amends this provision to require the Authority to consult before granting an exemption, including in certain cases consultation with authorities in non-member States. The Authority may impose a time limit for such consultations.

Regulation 15 amends Article 8 of the Energy Order to expand the powers of the Authority to enable it to consult and co-operate with the Agency for the Cooperation of Energy Regulators of the European Union, and regulation 16 amends Article 8A of that Order to include new duties on the Authority to ensure that it exercises its powers of consultation and co-operation in accordance with the requirements of the principal Directive as amended by the amending Directive.

In addition to the foregoing, regulation 4(1)(a) includes in the Gas Order a definition of the Authority and regulation 4(2) to (8) replaces some outdated references to the former Director General of Gas for Northern Ireland whose functions are now exercised by the Authority. Regulations 5 and 6 replace erroneous references to “pipeline” and “pipelines” with “pipe-line” and “pipelines” respectively. Regulation 7(3) also makes a minor correction in provisions dealing with the licence conditions for access to LNG facilities to use that term instead of referring to system access.