The Electricity and Gas (Internal Markets) Regulations 2011

PART 10Miscellaneous provisions

Amendment of section 19E of the Gas Act 1986

46.  In section 19E of the Gas Act 1986 (sections 19A to 19D: supplemental)(1)—

(a)omit the definitions of “LNG import facility”, “main commercial conditions”, “new facility”, “owner”, “storage”, “storage facility” and “treatment”;

(b)in the definition of “significant transaction”, in paragraph (a) for “liquid gas treated in an LNG import facility” substitute “treated in an LNG import or export facility”; and

(c)omit subsection (4).

Amendment of section 48 of the Gas Act 1986

47.—(1) Section 48 of the Gas Act 1986 (interpretation of Part 1 and savings)(2) is amended as follows.

(2) In subsection (1)—

(a)for the definition of “owner” substitute—

““owner”—

and cognate expressions shall be construed accordingly;;”;

(b)insert at the appropriate places—

““the 2010 Amending Decision” means Commission Decision 2010/685/EU of 10 November 2010 amending Chapter 3 of Annex I to Regulation 2009/715/EC of the European Parliament and of the Council on conditions for access to the natural gas transmission networks(3);”;

““the Agency” means the Agency for the Cooperation of Energy Regulators established under the Agency Regulation;”;

““the Agency Regulation” means Regulation 2009/713/EC of the European Parliament and of the Council of 13 July 2009 establishing an Agency for the Cooperation of Energy Regulators (4);”;

““associated undertaking”, in relation to a person (“person A”), means a person who—

and sections 450 and 451(1) to (3) of the Corporation Tax Act 2010(5) (meaning of “control”) apply, with any necessary modifications, for the purposes of this definition as they apply for the purposes of Part 10 of that Act;;”;

““designated regulatory authority” means an authority designated in accordance with Article 39 of the Gas Directive;”;

““designated regulatory authority for Great Britain” means the authority designated by virtue of section 3A of the Utilities Act 2000(6);”;

““distribution exemption holder” means a person who—

““exempt distribution system” means a distribution system operated or controlled by a distribution exemption holder who is covered by an exemption granted to it in relation to that system;”

““the Gas 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 (7);”;

““the Gas Regulation” means Regulation 2009/715/EC 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 2005/1775/EC (8), as amended by the 2010 Amending Decision;”;

““gas undertaking” has the meaning given by section 8Q(9);”;

““LNG import or export facility” means a facility in Great Britain (including the territorial sea adjacent to Great Britain and the sea in any area designated under section 1(7) of the Continental Shelf Act 1964)(10) for—

““main commercial conditions” means—

““relevant producer or supplier” has the meaning given by section 8Q;”;

““senior officer” means—

““storage”, in relation to liquid gas in a storage facility, includes any liquefaction of gas or regasification of liquid gas ancillary to the storage of liquid gas, and “stored”, in relation to liquid gas in a storage facility, shall be construed accordingly;”;

““storage facility” means a facility in Great Britain (including the territorial sea adjacent to Great Britain and the sea in any area designated under section 1(7) of the Continental Shelf Act 1964) for either or both of the following—

but the reference in paragraph (b) to the storage of liquid gas does not include such temporary storage as is mentioned in the definition of “LNG import or export facility”;;”;

““supply exemption holder” means a person who—

““treatment”, in relation to gas or liquid gas in an LNG import or export facility, includes importation, regasification, liquefaction and temporary storage, and “treat” shall be construed accordingly;”.

(3) After subsection (1) insert—

“(1ZA) Until section 75 of the Utilities Act 2000 comes into force the references to an exemption in the definitions in subsection (1) above of “distribution exemption holder”, “exempt distribution system” and “supply exemption holder” to an exemption include an exception under Schedule 2A(11).”.

Amendment of section 64 of the Electricity Act 1989

48.  In section 64(1) of the Electricity Act 1989 (interpretation of Part 1) insert at the appropriate places—

““the Agency” means the Agency for the Cooperation of Energy Regulators established under the Agency Regulation;”;

““the Agency Regulation” means Regulation 2009/713/EC of the European Parliament and of the Council of 13 July 2009 establishing an Agency for the Cooperation of Energy Regulators;”;

““designated regulatory authority” means an authority designated in accordance with Article 35 of the Electricity Directive;”;

““designated regulatory authority for Great Britain” means the authority designated by virtue of section 3A of the Utilities Act 2000;”;

““distribution exemption holder” means a person who—

““the Electricity Directive” means Directive 2009/72/EC of the European Parliament and of the Council of 13 July 2009 concerning common rules for the internal market in electricity and repealing Directive 2003/54/EC (12);”;

““the Electricity Regulation” means Regulation 2009/714/EC of the European Parliament and of the Council of 13 July 2009 on conditions for access to the network for cross-border exchanges in electricity and repealing Regulation 2003/1228/EC(13);”;

““electricity undertaking” has the meaning given by section 10O;”;

““exempt distribution system” means a distribution system operated or controlled by a distribution exemption holder who is covered by an exemption granted to it in relation to that system;”;

““senior officer” means—

““supply exemption holder” means a person who—

““regulated person” has the meaning given by section 25(8);”;

““relevant producer or supplier” has the meaning given by section 10O;”.

Modifications of standard conditions of gas licences

49.—(1) Schedule 7 to these Regulations (which modifies the standard conditions of transporter, interconnector and supply licences granted under Part 1 of the Gas Act 1986(14)) has effect.

(2) In section 81(2) of the Utilities Act 2000 (standard conditions of gas transporter, supply and shipping licences)(15), after “made” insert “under section 2(2) of the European Communities Act 1972,”.

(3) In section 150(5) of the Energy Act 2004 (standard conditions of gas interconnector licences)(16), after “made” insert “under section 2(2) of the European Communities Act 1972,”.

Modifications of standard conditions of electricity licences

50.—(1) Schedule 8 to these Regulations (which modifies the standard conditions of transmission, distribution, supply and interconnector licences granted under Part 1 of the Electricity Act 1989(17)) has effect.

(2) In section 33(1) of the Utilities Act 2000 (standard conditions of electricity generation, distribution and supply licences)(18), before paragraph (a) insert—

“(za)under section 2(2) of the European Communities Act 1972,”.

(3) In section 137(3) of the Energy Act 2004 (standard conditions of electricity transmission licences), before paragraph (a) insert—

“(za)under section 2(2) of the European Communities Act 1972,”.

(4) In section 146(5) of the Energy Act 2004 (standard conditions of electricity interconnector licences), after “made” insert “under section 2(2) of the European Communities Act 1972,”.

Review

51.—(1) Before the end of each review period, the Secretary of State must—

(a)carry out a review of these Regulations,

(b)set out the conclusions of the review in a report, and

(c)publish the report.

(2) In carrying out the review the Secretary of State must, so far as is reasonable, have regard to how the Third Package and ITC Regulation (relevant provisions of which are implemented by means of these Regulations) are implemented in other Member States.

(3) The report must in particular—

(a)set out the objectives intended to be achieved by these Regulations,

(b)assess the extent to which those objectives are achieved, and

(c)assess whether those objectives remain appropriate and, if so, the extent to which they could be achieved with a system that imposes less regulation.

(4) “Review period” means—

(a)the period of five years beginning with the day on which these Regulations come into force, and

(b)subject to paragraph (5), each successive period of five years.

(5) If a report under this regulation is published before the last day of the review period to which it relates, the following review period is to begin with the day on which that report is published.

(6) In this regulation—

“2010 Amending Decision” means Commission Decision 2010/685/EU of 10 November 2010 amending Chapter 3 of Annex I to Regulation 2009/715/EC of the European Parliament and of the Council on conditions for access to the natural gas network(19);

“ITC Regulation” means Commission Regulation 2010/838/EU of 23 September 2010 on laying down guidelines relating to the inter-transmission system operator compensation mechanism and a common regulatory approach to transmission charging(20);

“Third Package” means—