The Gas (Applications for Licences and Extensions and Restrictions of Licences) (No. 2) Regulations 2004

Statutory Instruments

2004 No. 2983

GAS

The Gas (Applications for Licences and Extensions and Restrictions of Licences) (No. 2) Regulations 2004

Made

8th November 2004

Coming into force

1st December 2004

The Gas and Electricity Markets Authority(1), in exercise of the powers conferred upon it by sections 7B(1), (2) and (11) and 47 of the Gas Act 1986(2) hereby make the following Regulations:

Citation, commencement and revocation

1.—(1) These Regulations may be cited as the Gas (Applications for Licences and Extensions and Restrictions of Licences) (No. 2) Regulations 2004 and shall come into force on 1st December 2004.

(2) The Gas (Applications for Licences and Extensions and Restrictions of Licences) Regulations 2004(3) (“the 2004 Regulations”) are hereby revoked.

Transitional provisions

2.—(1) Where an application has been made under the 2004 Regulations, or by virtue of Regulation 1(2)(b) of those Regulations is to be treated as so made, but in either case at the point at which these Regulations come into force the application has neither been granted or refused, the application shall be treated thereafter as having been made under these Regulations.

(2) An application to which paragraph (1) applies which conformed to the requirements of the regulations in force at the time it was made and was accompanied by the fee prescribed under those regulations shall not be treated as defective by virtue only of failure in any respect to comply with these Regulations.

(3) But the Authority may—

(a) by notice in writing request the applicant to supply any such information as is prescribed by these Regulations in respect of an application of that kind but which was omitted from the application; and

(b) defer its decision on the application until such time as that information has been produced.

(4) Where, in relation to an application to which paragraph (1) applies, the applicant, before the coming into force of these Regulations, published a notice of the application in accordance with the regulations in force at the time the application was made, the requirements of these Regulations as regards publication shall be taken to have been met.

Interpretation

3.—(1) In these Regulations—

“the 2000 Act” means the Utilities Act 2000(4);

“the 2004 Act” means the Energy Act 2004(5);

“the Act” means the Gas Act 1986;

“application” means an application for a licence, an application for an extension of a licence or an application for a restriction of a licence under the Act; and references to an application in respect of a licence shall be construed accordingly;

“the Authority” means the Gas and Electricity Markets Authority established by section 1 of the 2000 Act;

“domestic premises” means premises used wholly or mainly for domestic purposes;

“extension”, in relation to a gas transporter licence, means an extension of the licence under section 7(4) of the Act and, in relation to a gas supplier licence or a gas shipper licence, means an extension of the licence under section 7A(4) of the Act;

“interconnector licence” means a licence granted or to be granted under section 7ZA(1) of the Act;

“restriction” in relation to a gas transporter licence, means a restriction of the licence under section 7(4A) of the Act and, in relation to a gas supplier licence or a gas shipper licence, means a restriction of the licence under section 7A(6) of the Act;

“shipper licence” means a licence granted or to be granted under section 7A(2) of the Act;

“supplier licence” means a licence granted or to be granted under section 7A(1) of the Act;

“transporter licence” means a licence granted or to be granted under section 7 of the Act; and

“ultimate holding company” means a holding company (within the meaning of sections 736, 736A and 736B of the Companies Act 1985(6)) of the licensee which is not itself a subsidiary of another company; which is in the position to control, or exercise significant influence over, a policy of the licensee by virtue of rights under contractual arrangements or rights of ownership which are held by the company or of which the company is a beneficiary.

(2) In these Regulations, unless the context otherwise requires, a reference to a standard condition is a reference—

(a) in relation to a shipper licence, a supplier licence or a transporter licence, as the case may be, to a standard condition which is determined under section 81(2) of the 2000 Act; or

(b) in relation to an interconnector licence, to a standard condition which is determined under section 150(1) of the 2004 Act,

subject to any modifications of the standard conditions made under Part I of the Act, or the 2004 Act, after the determination under those sections.

(3) In these Regulations, unless the context otherwise requires—

(c) any reference to a numbered regulation or Schedule is a reference to the regulation or Schedule bearing that number in these Regulations; and

(d) any reference to a numbered paragraph is a reference to the paragraph bearing that number in the regulation in which the reference occurs.

Manner of Application

4.  An application shall be—

(a) made in writing, addressed to the Authority and delivered or sent by prepaid post to the Authority at its principal office; and

(b) signed and dated by or on behalf of the applicant, stating, where signed on behalf of the applicant, the capacity of the signatory.

Form of application

5.  An application shall be in the form specified in Schedule 1 or a form to the like effect, and shall contain the information there specified.

Additional information and documents to accompany application

6.—(1) Subject to paragraphs (2) and (3)—

(a) an application in respect of a gas supplier licence shall be accompanied by the information and documents specified in Part 1 of Schedule 2;

(b) an application in respect of a gas shipper licence shall be accompanied by the information and documents specified in Part 2 of Schedule 2;

(c) an application in respect of a gas transporter licence shall be accompanied by the information and documents specified in Part 3 of Schedule 2; and

(d) an application in respect of an interconnector licence shall be accompanied by the information and documents specified in Part 4 of Schedule 2.

(2) The obligation imposed by paragraph 6(1) shall, to the extent that information and documents are specified in Schedule 2 by reference to, or in relation to, a standard condition, apply—

(a) subject to paragraph 6(3), in the case of an application for a licence, other than for a gas supplier licence of the type described in section 8(2) of the Act, as if the standard condition in question were to be included and have effect in any licence granted as a result of the application; and

(b) in the case of an application for an extension or restriction of a licence, in relation to such of the standard conditions in question as have been included and have effect in that licence.

(3) Where a modification to any standard condition is requested in accordance with paragraph 4(1) of Schedule 1, the obligation imposed by paragraph (2)(a) above shall be modified accordingly.

Application fees

7.—(1) Subject to paragraph (2), the prescribed fee in relation to an application of the description specified in the first column of the Table in Schedule 3 shall be the corresponding fee specified in the second column of that Table.

(2) Where more than one fee would, but for this paragraph, be payable in respect of a particular application, the prescribed fee shall be the higher or highest such fee.

Publication of notice of application

8.—(1) The period prescribed for the purpose of section 7B(2) of the Act (notice of applications) is ten working days (“the prescribed period”).

(2) The prescribed manner of publication for that purpose shall be either by—

(a) requesting the Authority to place the notice on the website address of the Authority (at “www.ofgem.gov.uk” or such other website address as may be notified to the applicant by the Authority in writing); or

(b) publishing the notice on the website address of the applicant and requesting the Authority to place a link to the applicant’s website address on the website address of the Authority (at “www.ofgem.gov.uk” or such other website address as may be notified to the applicant by the Authority in writing).

(3) Where an application is for the restriction of a licence, the applicant shall also ensure that notice of application is published within the prescribed period in such newspapers as are calculated to ensure that the notice is circulated throughout the area to which the proposed restriction relates.

(4) In this Regulation “working day” shall have the same meaning as in section 64 of the Electricity Act 1989(7).

The seal of the Gas and Electricity Markets Authority here affixed is authenticated by the signature of

L.S.

John Neilson

A member of the Authority

8th November 2004

Regulation 5

SCHEDULE 1 FORM OF APPLICATION IN RESPECT OF A SUPPLIER LICENCE, SHIPPER LICENCE, TRANSPORTER LICENCE OR INTERCONNECTOR LICENCE UNDER THE GAS ACT 1989

GENERAL PARTICULARS

Regulation 6

SCHEDULE 2

PART 1 FURTHER INFORMATION AND DOCUMENTS TO ACCOMPANY AN APPLICATION IN RESPECT OF A SUPPLIER LICENCE(8)

1.  A gas supplier licence may authorise the holder to supply gas—

(a) to any premises;

(b) only to premises specified in the licence, or to premises of a description so specified; or

(c) only to any premises situated in a specified area, or to premises of a specified description which are so situated;

section 7A(1) of the Act). Please specify whether (a), (b) or (c) above is applicable. Provide a sufficient description adequately specifying(9) the premises or a description of the premises and the location of the premises intended to be supplied, and, in the case of an application that relates to (c) above, also the specified area. Also state whether the application relates to domestic premises.

2.  For all applications for gas supplier licences, or extensions of such licences, state whether the licence or extension is to authorise the supply of gas to premises to which it is conveyed by a gas transporter, and if not give details of any exemption under section 6A of the Act under which the gas is or will be conveyed.

SUPPLY TO DOMESTIC PREMISES

3.  If the application relates to the supply of gas to domestic premises to which gas is, or is to be, conveyed by a gas transporter, the applicant shall provide particulars of the applicant’s proposed arrangements for compliance with the applicable requirements of standard conditions 24 (Arrangements in Respect of Powers of Entry), 24A (Authorisation of Officers), 24B (Exercise of Powers of Entry), 25 (Efficient Use of Gas), 35 (Code of Practice on Payment of Bills and Guidance for Dealing with Customers in Difficulty), 36 (Code of Practice on the Use of Prepayment Meters), 37 (Provision of Services for Persons who are of Pensionable Age or Disabled or Chronically Sick), 37A (Pensioners Not to Have Supply of Gas Cut Off in Winter), 38 (Provision of Services for Persons who are Blind or Deaf), 39 (Complaint Handling Procedure) and 43 (Contractual Terms—Methods of Payment).

RESTRICTION OF A SUPPLIER LICENCE

4.  If the application is for a restriction of a licence provide—

(a) an estimate of the total number of premises to which the applicant supplies gas at the time of the application and which the applicant would cease to supply gas if the application were acceded to (“relevant premises”); and

(b) unless there are, at the date of the application, no relevant consumers (within the meaning of section 7A(10) of the Act) in relation to the applicant, a description of the applicant’s proposed arrangements under section 7A(9) of the Act for—

(i) ensuring continuity of supply for all such relevant consumers; and

(ii) in the case of each such consumer who is supplied with gas in pursuance of a contract (within the meaning of that section), securing such continuity on the same terms as nearly as may be as the terms of the contract.

PART 2 FURTHER INFORMATION AND DOCUMENTS TO ACCOMPANY AN APPLICATION IN RESPECT OF A SHIPPER LICENCE(10)

1.  A gas shipper licence may authorise the holder to—

(a) make arrangements generally with any gas transporter for gas to be introduced into, conveyed by means of or taken out of a pipe-line system operated by that transporter; or

(b) make such arrangements for purposes connected with the supply of gas to specified premises, being—

(i) any premises in a specified area;

(ii) any premises of a specified description (whether in a specified area or throughout Great Britain); or

(iii) particular premises;

(section 7A(2) of the Act). Provide a sufficient description adequately specifying the premises or a description of the premises, and also the specified area, if any, to which the application relates(11).

PART 3 FURTHER INFORMATION AND DOCUMENTS TO ACCOMPANY AN APPLICATION IN RESPECT OF A TRANSPORTER LICENCE(12)

1.  A gas transporter licence may authorise the holder to convey gas—

(a) to any premises, and/or

(b) to any pipe-line system operated by another gas transporter—

(i) throughout Great Britain; or

(ii) within a specified area or areas.

Please specify which of (a) or (b) is, or both are, applicable, and, if (b) is applicable, which of (i) or (ii) is applicable, and in the case of (ii) provide a sufficient description adequately specifying the area to which the application relates(13).

• Also state whether the application relates to domestic premises. For applications within paragraph 1(b) above, also specify the description of pipe-line system to which the application relates (stating, in particular, whether it relates only to any system which is designed to receive gas at an operating pressure not exceeding 7 bar gauge).

2.  Provide particulars of the applicant’s proposed arrangements for compliance with the applicable requirements of standard conditions 8 (Provision and Return of Meters), 18 (Provision of Services for Persons who are Blind or Deaf), 19 (Arrangements in Respect of Powers of Entry), 19A (Authorisation of Officers), 19B (Exercise of Powers of Entry) and 21 (Complaint Handling Procedure).

RESTRICTION OF A TRANSPORTER LICENCE

3.  If the application is for a restriction of a licence provide—

(a) an estimate of the total number of premises to which the applicant conveys gas at the time of the application and to which the applicant would cease to convey gas if the application were acceded to (“the relevant premises”);

(b) unless there are, at the date of the application, no relevant consumers (within the meaning set out in sub-paragraph (c) below) in relation to the applicant, a description of the applicant’s proposed arrangements to ensure compliance with section 10 of the Act (ensuring the connection of all such relevant consumers is maintained); and

(c) for the purposes of sub-paragraph (b), a person is a relevant consumer if—

(i) immediately before the restriction takes effect, he is connected to the pipe-line system of the holder of the licence; and

(ii) his premises are to be excluded from the licence by the restriction.

PART 4 FURTHER INFORMATION AND DOCUMENTS TO ACCOMPANY AN APPLICATION IN RESPECT OF AN INTERCONNECTOR LICENCE

1.  An application in respect of a gas interconnector licence must specify the actual or proposed point of connection to a gas transportation or gas distribution network. Where the applicant is unable to specify a point of connection the applicant should provide Ordnance Survey Grid Reference co-ordinates for the proposed point of connection.

2.  In relation to an application for a licence in respect of an interconnector that was not completed by 3 August 2003, state whether the applicant seeks not to have applied to the licence any or all of the following standard licence conditions—

(a) conditions relating to the charging methodology to apply to third party access to the licensee’s interconnector;

(b) conditions relating to the requirement to offer terms to an applicant for access to the licensee’s interconnector.

3.  Where the applicant so seeks for any or all of the licence conditions relating to the matters referred to in paragraphs 2(a) and 2(b) above not to be in effect the following additional information must be provided in respect of those licence conditions—

(a) the period of time for which the applicant seeks that the licence condition or conditions not be in effect;

(b) a statement setting out the evidence and reasoning as to why the applicant considers—

(i) the investment in the interconnector enhances competition in gas supply and enhances security of supply;

(ii) the level of risk attached to the investment to be made in relation to the interconnector is such that the investment would not be or would not have been made unless those licence conditions were not in effect;

(iii) that, should the licence conditions not be in effect for the period of time sought, this will not be detrimental to competition or the effective functioning of the internal gas market, or the efficient functioning of the regulated system to which the interconnector is connected; and

(c) a further statement that—

(i) the interconnector will be owned by a natural or legal person who is separate, at least in terms of its legal form, from the system operators in whose systems the interconnector to which this application relates will be built; and

(ii) charges will be levied on users of the interconnector.

Regulation 7

SCHEDULE 3 APPLICATION FEES

Description of application	Fee payable
	£
Supplier
1.  Application for licence including authorisation to supply gas to premises to which gas is, or is to be, conveyed by a gas transporter (not including authorisation to supply gas to domestic premises)	400
2.  Application for licence including authorisation to supply gas to premises to which gas is, or is to be, conveyed otherwise than by a gas transporter	300
3.  Application for licence including authorisation to supply gas to domestic premises to which gas is, or is to be, conveyed by a gas transporter	1,150
4.  Application for extension of a licence so as to include authorisation to supply gas to domestic premises to which gas is conveyed by a gas transporter	1,000
5.  Application for any other extension or restriction	400
Shipper
6.  Any application	300
Transporter
7.  Application for a licence	950
8.  Application for extension or restriction	125
Interconnector
9.  Application for a licence	950

Explanatory Note

(This note is not part of the Regulations)

These Regulations set out the information, and other documents that are required to be submitted with applications for gas transporter, gas shipper, gas supplier and gas interconnector licences (and for extensions or restrictions of supplier, shipper and transporter licences) under the Gas Act 1986, as amended by the Utilities Act 2000 and the Energy Act 2004. They specify the form and manner of such applications. These Regulations also set out the manner in which notices of applications are to be published.

These Regulations come into force on 1st December 2004. Regulation 1 provides for the citation, commencement and revokes the previous Regulations. Regulation 2 makes transitional provisions for applications made but not determined before the Regulations come into force.

Regulation 3 provides for general interpretation.

Regulation 4 deals with the manner of applications.

Regulation 5 concerns the form of applications, and incorporates Schedule 1 that specifies their form, and the information and documents to accompany them.

Regulation 6 specifies the additional information and documents to accompany applications. It incorporates Schedule 2, which covers, respectively, applications for:

• gas supplier licences, at Part 1;

• gas shipper licences, at Part 2;

• gas transporter licences, at Part 3; and

• gas interconnector licences, at Part 4.

Regulation 7 incorporates Schedule 3, which specifies the fees payable in respect of applications.

Regulation 8 provides for the notice period and publication requirements for applications. It requires applicants to ensure notice of the application is published either on the Ofgem website or their own website. If the application is for a restriction the applicant must also publish the notice in local newspapers.

(1)

The Gas and Electricity Markets Authority was established under section 1(1) of the Utilities Act 2000 (c. 27).

(2)

1986 c. 44: section 7B of the Gas Act was inserted by section 74(7) of the Utilities Act 2000.

(3)

S.I. 2004/2542.

(4)

2000 c. 27.

(5)

2004 c. 20.

(6)

1985 c. 6.

(7)

1989 c. 29.

(8)

In this Part of this Schedule, if the application is for an extension or restriction of a licence, information and documents need only be given in so far as, in any material respect, they significantly differ from or add to the most recent information or documents which were provided in relation to the same requirement—

(i)

with an application made by the applicant in accordance with these Regulations; or

(ii)

subsequent to such an application in pursuance of a condition of the applicant’s licence.

(9)

The description should enable the areas, location or premises concerned to be adequately and readily identified by map, if the applicant so desires, or by any other convenient means.

(10)

In this part of this Schedule, if the application is for an extension or restriction of a licence, information and documents need only be given in so far as, in any material respect, they differ from or add to the most recent information or documents which were provided in relation to the same requirement—

(i)

with an application made by the applicant in accordance with these Regulations; or

(ii)

subsequent to such an application in pursuance of a condition of the applicant’s licence.

(11)

The description should enable the areas, location or premises concerned to be adequately and readily identified by map, if the applicant so desires, or by other convenient means.

(12)

In this Part of this Schedule, if the application is for an extension or restriction of a licence, information and documents need only be given in so far as, in any material respect, they differ significantly from or add significantly to the most recent information or documents which were provided in relation to the same requirement—

(i)

with an application made by the applicant in accordance with these Regulations; or

(ii)

subsequent to such an application in pursuance of a condition of the applicant’s licence.

(13)

The description should enable the areas, location or premises concerned to be adequately and readily identified by map, if the applicant so desires, or by any other convenient means.