The Gas Transporter (Modification of Licence Conditions) Regulations 2011

Standard Special Conditions applicable to both NTS and DN licensees: Part A

1.—(1) The standard special conditions of a gas transporter licence set out in the licence under the heading “standard special conditions applicable to both NTS and DN licensees: Part A” are amended as follows.

(2) Omit standard special condition A1 (application and disapplication of certain licence conditions).

(3) Omit standard special condition A2 (private collective licence modification procedure in respect of certain standard special conditions).

(4) In standard special condition A3 (definitions and interpretation)—

(a) after the definition of “designated registrar of pipes”, insert—

““the Directive” means Directive 2009/73/EC of the European Parliament and of the Council of 13 July 2009 concerning common rules for the internal market in natural gas and repealing Directive 2003/55/EC;”;

(b) after the definitions of “quantity” and “volume”, insert—

““the Regulation” means Regulation 2009/715/EC of the European Parliament and of the Council of 13 July 2009 concerning conditions for access to the national gas transmission networks and repealing Regulation 2005/1775/EC, as amended by the 2010 Amending Decision;”.

(5) In standard special condition A5 (obligations as regard charging methodology), in paragraph 5—

(a) in sub-paragraph (c), at the end, omit “and”;

(b) in sub-paragraph (d), for the full stop at the end substitute “; and”;

(c) after sub-paragraph (d), insert—

“(e) compliance with the Regulation and any relevant legally binding decisions of the European Commission and/or the Agency for the Co-operation of Energy Regulators.”.

(6) In standard special condition A11 (Network Code and Uniform Network Code)—

(a) in paragraph 1—

(i) in sub-paragraph (e), at the end, omit “and”;

(ii) after sub-paragraph (f), insert—

“(g) compliance with the Regulation and any relevant legally binding decisions of the European Commission and/or the Agency for the Co-operation of Energy Regulators; and

(h) in relation to:

(i) the connection charging methodology, the relevant objectives listed in paragraph 5 of Standard Condition 4B; or

(ii) the charging methodologies regulated by Standard Special Condition A5, the relevant objectives listed in paragraph 5 of Standard Special Condition A5.”;

(b) after paragraph 6, insert—

“6A.   The licensee shall use reasonable endeavours to facilitate any improvements to the process by which responsibility for gas supply is transferred between gas suppliers.”;

(c) in paragraph 9—

(i) in sub-paragraph (g), at the end, omit “and”;

(ii) in sub-paragraph (h), for the full stop at the end substitute a semicolon;

(iii) after sub-paragraph (h), insert—

“(i) modification proposals made by the Authority or the licensee in accordance with paragraphs 9(j), 10(a)(i) or (v), 10(ab) and 11(a)(i) or (v):

(i) to be accepted into the network code modification procedures by the panel;

(ii) where they are raised by the licensee, not to be withdrawn without the Authority’s prior consent;

(iii) to proceed in accordance with any timetable(s) directed by the Authority in accordance with paragraph 9(j);

(j) compliance by the licensee and (where applicable) the panel with any direction(s) issued by the Authority under this paragraph setting and/or amending a timetable (in relation to a modification which the Authority reasonably considers is necessary to comply with or implement the Regulation and/or any relevant legally binding decisions of the European Commission and/or the Agency for the Co-operation of Energy Regulators) for:

(i) the licensee to raise a modification proposal; and/or

(ii) completion of each of the procedural steps outlined in this paragraph 9, to the extent that they are relevant; and/or

(iii) implementation of a modification; and

(k) each of the procedural steps outlined in this paragraph 9, to the extent that they are relevant, to be in accordance with any timetable(s) directed by the Authority under paragraph 9(j).”;

(d) in paragraph 10—

(i) in sub-paragraph (a)(iii), for “, and/or” substitute “,”;

(ii) in sub-paragraph (a)(iv), for “;” insert “, and/or”;

(iii) after sub-paragraph (a)(iv), insert—

“(v) the Authority (in relation only to modifications which it reasonably considers are necessary to comply with or implement the Regulation and/or any relevant legally binding decisions of the European Commission and/or the Agency for the Co-operation of Energy Regulators);”;

(iv) in sub-paragraph (ab), after “DN operators as appropriate”, insert “and/or the Authority (in relation only to modifications which it reasonably considers are necessary to comply with or implement the Regulation and/or any relevant legally binding decisions of the European Commission and/or the Agency for the Co-operation of Energy Regulators)”;

(e) in paragraph 11—

(i) in sub-paragraph (a)(iii), omit “and/or”;

(ii) in sub-paragraph (a)(iv), for “and” insert “, and/or”;

(iii) after sub-paragraph (a)(iv), insert—

“(v) the Authority (in relation only to modifications which it reasonably considers are necessary to comply with or implement the Regulation and/or any relevant legally binding decisions of the European Commission and/or the Agency for the Co-operation of Energy Regulators);”;

(f) in paragraph 15A—

(i) in sub-paragraph (a), omit “or”;

(ii) for sub-paragraph (b), substitute—

“(b) the modification proposal is made by the licensee in accordance with:

(i) paragraph 9(j); or

(ii) paragraphs 10(aa) and 15C; or

(c) the modification proposal is made by the Authority in accordance with paragraph 10(a)(v), 10(ab) or 11(a)(v).”.

(7) In standard special condition A26 (provision of information to the Authority), in paragraph 1(a) after “under the Act”, insert “or in pursuance of any requirements of the Directive or the Regulation”.

(8) In standard special condition A30 (regulatory accounts), after paragraph 1, insert—

“1A.   The licensee shall specify in its internal accounting the rules for the allocation of assets and liabilities, expenditure and income, as well as for depreciation, without prejudice to nationally applicable accounting rules, which they follow in drawing up the separate accounts referred to in paragraph (1).”.

(9) In standard special condition A33 (restriction on use of certain information and independence of the transportation business)—

(a) in paragraph 1, after the definition of “relevant generator”, insert—

““relevant producer” means a person who is an affiliate or related undertaking of a licensee who conveys gas to at least 100,000 premises, and who—

(a)

gets gas from its natural condition in strata otherwise than as an unintended consequence of the storage of gas, and requires a licence under section 3 of the Petroleum Act 1998 to do so or would require such a licence if getting the gas in Great Britain; or

(b)

produces any other gas, including in particular biomethane, which is suitable for conveyance through pipes to premises in accordance with a gas transporter licence;”;

(b) in paragraph 2, in sub-paragraph (a), after “electricity generator”, insert “, gas producer (within the meaning of section 7(10) of the Act)”;

(c) in each of the following paragraphs, insert “relevant producer,”—

(i) paragraph 2, after “relevant generator,”;

(ii) paragraph 6, in sub-paragraph (a), after “relevant generator,”;

(iii) paragraph 6, in sub-paragraph (b), after “relevant generator,”;

(iv) paragraph 6, in sub-paragraph (c), after “relevant generator,”;

(v) paragraph 6, in sub-paragraph (d), after “relevant generator,”;

(d) in paragraph 3, after “the generation of electricity,”, insert “the production of gas,”.

(10) In standard special condition A34 (appointment of compliance officer), after paragraph 3, insert—

“3A.   Where the holder of this licence is a DN operator, the licensee shall ensure that the compliance officer is sufficiently independent to comply with the requirements of Article 26(2)(d) of the Directive.”.

(11) In standard special condition A35 (prohibition of cross-subsidies), in paragraph 5, for “Article 17 of Directive 2003/55/EC of the European Parliament and of the European Council of 26 June 2003” substitute “Article 31 of the Directive”.

(12) In standard special condition A36 (restriction on activity and financial ring fencing)—

(a) in paragraph 1, at the start, for “Save” substitute “Subject to paragraph 1A, and save”;

(b) after paragraph 1, insert—

“1A.   Nothing in this condition prevents the licensee from carrying out gas production if the licensee:

(a) conveys gas to less than 100,000 premises; and

(b) is not a transmission system operator.”;

(c) in paragraph 4—

(i) in sub-paragraph (a)(i), at the end, omit “and”;

(ii) in sub-paragraph (a)(ii), for the full stop at the end, substitute “; and”;

(iii) after sub-paragraph (a)(ii), insert—

“(iii) gas production”;

(d) after paragraph 5, insert—

“5A.   For the purposes of this condition, “gas production” means the production of gas for the purpose of its conveyance through pipes to premises, or through a pipeline system operated by a gas transporter or a transmission system operator, including where a licence is held under section 3 of the Petroleum Act 1998 for that purpose but not where such a licence is held for a different purpose.”.