GAS (INTERIM) (REGULATION) ACT, 2002

• (1G) The data referred to in subsection (1F) shall include details of relevant transactions such as duration, delivery and settlement rules, the quantity, the dates and times of execution and the transaction prices and means of identifying the wholesale customer concerned, as well as specified details of all unsettled gas supply contracts and gas derivatives.

• (1H) The Commission may decide to make available to market participants elements of this information provided that commercially sensitive information on individual market players or individual transactions is not released. This paragraph shall not apply to information about financial instruments which fall within the scope of Directive 2004/39/EC of the European Parliament and of the Council of 21 April 2004⁹.

• (1I) The obligations on undertakings under subsection (1F) with respect to transactions by them in gas derivatives with wholesale customers and transmission system operators as well as storage and LNG operators shall not apply until such time as the European Commission has adopted Guidelines, referred to in Article 44 of the Natural Gas Market Directive, defining the methods and arrangements for record keeping as well as the form and content of the data to be kept by undertakings.

• (1J) In the event that the authorities referred to in subsection (1F) require access to data kept by entities falling within the scope of Directive 2004/39/EC of the European Parliament and of the Council of 21 April 2004, the authorities responsible under that Directive shall provide them with the required data.]

• (2) Subject to F20[the regulations (if any) in force under] subsection (4), a person who undertakes any of the activities mentioned in subsection (1) without a natural gas licence in respect of the activity is guilty of an offence and shall be liable on summary conviction to a fine not exceeding €3,000 or to imprisonment for a term not exceeding 3 months, or to both.

• (3) Summary proceedings for an offence under this section may be brought and prosecuted by the Commission.

• (4) The Commission may specify by regulations—

• (a) the classes of activities mentioned in subsection (1) to which subsection (2) F21[…] shall not apply, and

• (b) the classes of licence holder to which the requirements of section 13 shall not apply.

• F22[(4A)
• (a) The Commission may, in carrying out its function under section 9(1F) of the Act of 1999, in a licence under subsection (1)(a), (c) or (d), specify such standards of performance and quality in connection with the supply of natural gas to final customers as the Commission determines ought to be achieved.

• (b) The holder of a licence referred to in paragraph (a) shall comply with such standards of performance as may be specified by the Commission in the licence concerned.]

• (5) An application for a natural gas licence shall be—

• (a) in writing and be in such form and contain such information as the Commission may request, and

• (b) accompanied by such a fee, if any, as the Commission may determine to be appropriate, having regard to the application being made.

• (6) The Commission shall make information on such fees payable under subsection (5)(b) available on the request of an applicant for a natural gas licence.

• (7) The Commission shall monitor the activities of a holder of a natural gas licence to ensure that the holder complies with all the terms and conditions of the licence.

• (8) The Minister shall specify by regulations the criteria in accordance with which an application for a natural gas licence of any category referred to in F23[…] subsection (1) may be determined by the Commission.

• (9) The criteria specified by the Minister under subsection (8) may relate to, any or all of the following:

• (a) security of supply,

• (b) the safety and security of the natural gas system,

• (c) the qualifications of an applicant, including the technical and financial qualifications of the applicant, and

• (d) any other criteria specified under subsection (8).

• (10) F24[…]

• (11) F24[…]

• F25[(12) Where—

• (a) the Commission refuses to grant a natural gas licence or to give a consent under section 39A(1) of the Gas Act 1976, or

• (b) the Minister refuses to give a consent under section 40 (1) of the Gas Act 1976,

section 14(7) of the Act of 1999 shall apply to the refusal.]

• F26[(13) A holder of a natural gas licence shall—

• F27[(a) in the case of a holder of a licence under paragraph (1)(c), (1)(e) or (1)(f), operate, maintain and develop under economic conditions a secure, reliable, economic and efficient transmission, storage or LNG facilities (as the case may be having regard to the activity for which it is licensed) to secure an open market, with due regard to the environment and public safety and ensure adequate means to meet service obligations,]

• F28[(aa) in the case of a holder of a licence under paragraph (1)(d), ensure the long-term ability of the system to meet reasonable demands for the distribution of natural gas, and for operating, maintaining and developing under economic conditions a secure, reliable and efficient system in its area, with due regard for the environment and energy efficiency;]

• F29[(ab) in the case of a holder of a licence under subsection (1)(a) or (1)(b), operate, maintain and develop under economic conditions such facilities or systems as required for the purpose of carrying out the activity for which it is licensed with due regard to the environment and public safety,]

• (b) not discriminate between system users or classes of system users particularly in favour of related undertakings,

• (c) provide any natural gas undertaking with sufficient information to ensure that transport or storage of natural gas may take place in a manner compatible with the safe secure and efficient operation of the natural gas system,

• (d) without prejudice to any legal obligation to disclose information, preserve the confidentiality of commercially sensitive information obtained in the course of carrying out its business,

• F30[(e) in the case of the holder of a licence under subsection (1)(c) take steps to prevent the disclosure in a discriminatory manner of commercially advantageous information about its own activities and shall not, if applicable, disclose any commercially sensitive information to the remaining parts of the undertaking of which it is part, unless this is necessary for carrying out a business transaction,]

• F31[(ea) in the case of the holder of a licence under paragraph (1)(c), without prejudice to its obligations to protect commercially sensitive information, make public all information necessary for effective competition and the efficient functioning of the market, ]

• F30[(f) in the case of a holder of a licence under subsection (1)(c), (d), (e) or (f) provide users of the system or facility with the information they need for efficient access to, including use of, the system,]

• F31[(fa) F32[…]]

• F33[(g) in the case of the holder of a licence for the operation of a transmission system, obtain the energy that is uses for carrying out its functions according to transparent, non-discriminating and market-based procedures,

• (h) if, in the case of the holder of a licence for the operation of a transmission system or a distribution system, the holder is responsible for balancing that system—

• (i) adopt rules for operating the system that are objective transparent and non-discriminatory (including rules for charging users of the system for energy imbalance subject to approval by the Commission), and

• (ii) ensure that terms and conditions (including rules and tariffs for providing balancing services) are established in a non-discriminatory and cost reflective way according to a methodology compatible with F34[Article 41(6)] of the Directive, and

• (iii) publish those rules, terms and conditions in a publication that is F35[generally available to those users]]

• (i) provide all documents, records, accounts, estimates and other information, whether oral or written, requested from time to time by the Commission, in the form and at the times specified by the Commission, for the purpose of verifying that the holder of the licence is complying with the conditions of the licence, or as may be required by the Commission in the performance of its duties or functions imposed F35[under this Act, and]]

• F36[(j) in the case of a holder of a licence for the supply of natural gas or for the shipping of natural gas, ensure that procedures are put in place by every such licence holder to ensure that, in the event of a national gas emergency, final customers are informed of any interruption or possible interruption to the supply of natural gas to those customers as a consequence of the implementation of the Natural Gas Emergency Plan or a direction of the National Gas Emergency Manager.]

• F37[(k) in the case of the holder of a licence under subsection (1)(c)—

• (i) build sufficient cross-border capacity to integrate European transmission infrastructure accommodating all economically reasonable and technically feasible demands for capacity and taking into account security of natural gas supply, and

• (ii) establish and publish transparent and efficient procedures and tariffs for non-discriminatory connection of storage facilities, LNG regasification facilities and industrial customers to the transmission system. Those procedures shall be subject to approval by the F38[Commission.]]

• F37[(l) F39[…]]

• (14)
• (a) Where the Commission is satisfied that all or any of the circumstances set out in paragraph (b) have arisen or are likely to arise it may direct the holder of a natural gas licence, the holder of a consent given by the Minister, before the appointed day, under F40[section 8(6)] or 40(1) of the Gas Act, 1976, the holder of a consent given by the Commission under section 39A(1) of the Gas Act, 1976, a person in respect of whom an order has been made under section 2(1) of the Gas (Amendment) Act, 1987, a person undertaking an activity mentioned in regulations made by the Commission under subsection (4), or the Board, to discontinue or to refrain from specified practices.

• (b) The circumstances referred to in paragraph (a) are where the Commission is of the opinion that:

• (i) immediate action is necessary to protect—

• (I) public health or safety or the environment,

• (II) the continuity of supplies of natural gas, or

• (III) the interests of other holders of natural gas licences or consents given under the Gas Act, 1976, or of other persons in respect of whom an order has been made under section 2(1) of the Gas (Amendment) Act, 1987, or undertaking an activity mentioned in regulations made by the Commission under subsection (4),

• (ii) the holder of a natural gas licence or a consent aforesaid, or a person in respect of whom an order has been made under section 2(1) of the Gas (Amendment) Act, 1987, is contravening or is likely to contravene a term, condition or requirement and immediate action is necessary to cease or prevent F41[such contravention,]

• (iii) immediate action is necessary to prevent dissipation of the assets of the holder of a natural gas licence or a consent aforesaid, or of a person in respect of whom an order has been made under section 2(1) of F41[the Gas (Amendment) Act 1987, or]

• F42[(iv) in the case of the holder of a licence granted under subsection (1) to operate a transmission system that the action is necessary to ensure compliance by such licence holder with F43[Regulation (EC) No 715/2009 of the European Parliament and of the Council of 13 July 2009¹⁰.]

• (c) Nothing in this subsection shall authorise the Commission to give directions relating to industrial disputes.

• (15) Where the Commission is of the opinion that the holder of a natural gas licence or a consent given by the Minister, before the appointed day, under F40[section 8(6)] or 40(1) of the Gas Act, 1976, or a consent given by the Commission under section 39A(1) of the Gas Act, 1976, or a person in respect of whom an order has been made under section 2(1) of the Gas (Amendment) Act, 1987, is contravening or is likely to contravene a term, condition or requirement, sections 24 to 26 of the Act of 1999 shall apply to any actions it may take.

• (16)
• (a) In this subsection and in subsections (14) and (15) “term, condition or requirement” means—

• (i) any term or condition of a natural gas licence,

• (ii) any requirement imposed by or under this Act,

• (iii) any conditions or requirements imposed by the Minister under subsection (8) or (9) of section 8, or section 40(3) of the Gas Act, 1976, or by the Commission under section 39A(4) (inserted by section 12 ) of the Gas Act, 1976, or

• (iv) any duties or obligations conferred on a person by an order made under section 2(1) of the Gas (Amendment) Act, 1987.

• (b) Where—

• (i) the holder of a natural gas licence, a consent given by the Minister, before the appointed day, under F40[section 8(6)] or 40(1) of the Gas Act, 1976, a consent given by the Commission under section 39A(1) of the Gas Act, 1976, or a person in respect of whom an order has been made under section 2(1) of the Gas (Amendment) Act, 1987, requests the Commission to modify the terms, conditions or requirements of the licence, consent or order, or

• (ii) the Commission is of the opinion that:

• (I) a natural gas licence or consent aforesaid should be amended,

• (II) a modification of a term, condition or requirement of a natural gas licence, consent or order aforesaid is a modification of a class required by an order of the Minister made under section 21 ,

the Commission may modify the terms, conditions or requirements of the licence, consent or order concerned in accordance with sections 20 to 22 of the Act of 1999, and those sections shall, accordingly, be construed as including references to a natural gas licence, consent or order as aforesaid, where appropriate.

• (17) Any reference—

• (a) in sections 14(7), 29, 30 and 32 of the Act of 1999 to a licence shall be construed as including a reference to a natural gas licence and an order made under section 2(1) of the Gas (Amendment) Act, 1987,

• (b) in sections 17(4), 29, 30 and 32 of the Act of 1999 to an authorisation shall be construed as including a reference to a consent of a type mentioned in F40[section 8(6)], 39A(1) or 40(1) of the Gas Act, 1976, other than a consent in regard to an upstream pipeline.

• F44[(18) A natural gas undertaking shall comply with any directions made by the Commission under this Act or the Gas Act 1976 within such time period as may be specified by the Commission in the direction.]

• F45[(19) In this section, "contravene" includes failure to comply.]

17. Unbundling of accounts of natural gas undertakings.

F46[17.—(1) (a) Every natural gas undertaking, except for an undertaking engaged in the production of natural gas and no other natural gas activity, whatever its system of ownership or legal form, shall—

• (i) where the Companies Acts 1963 to 2003, applies to it, draw up, submit to audit and file its annual accounts in accordance with the requirements of those Acts, or

• (ii) where it is not required to conduct an audit or file annual accounts under the Companies Acts 1963 to 2003, it shall cause its annual accounts to be audited as if it were a company to which paragraph (a) applied and make available for inspection at its head or principal office in the State by any member of the public a copy of the accounts it would be obliged to file if it were a company to which paragraph (a) applied.

• (b) The audit of accounts referred to in paragraph (a) shall, in particular, verify that the obligation to avoid discrimination and cross-subsidies referred to in subhead (2) is respected and the auditor shall include a certificate in the report accompanying the audited accounts in relation to such matters.

• (c) Paragraph (b) shall apply with effect from the first accounting period commencing after 1 July 2004.

• (2)
• (a) For the purpose of avoiding discrimination, cross-subsidisation and distortion of competition, natural gas undertakings shall, in their internal accounting—

• (i) keep separate accounts for their transmission, distribution, LNG, storage, shipping and supply activities;

• (ii) keep accounts, which may be consolidated, for other natural gas activities not related to transmission, distribution, LNG, storage, shipping and supply;

• (iii) where appropriate, consolidated accounts for other, non-natural gas activities, as they would be required to do if the activities in question were carried out by separate companies; and

• (iv) specify the revenue from ownership of transmission and distribution pipelines.

• (b) In preparing the accounts referred to in paragraph (a), natural gas undertakings shall include a balance sheet and a profit and loss account for each activity to which that paragraph relates.

• (c) Natural gas undertakings shall specify in notes to the annual accounts the rules for the allocation of assets and liabilities and expenditure and income, as well as for depreciation, which they follow in drawing up the separate accounts referred to in paragraphs (a) and (b).

• (d) The rules mentioned in paragraph (c) may be amended only with the approval of the Commission and any amendment to which this paragraph relates shall be mentioned and duly substantiated in the notes to the annual accounts.

• (e) The annual accounts of natural gas undertakings shall indicate in notes to their annual accounts any transaction of a certain size (being a size, which, in the opinion of the Commission, would have a significant commercial impact) conducted with related undertakings, within the meaning of Article 2.22 of the Directive.

• (3)
• (a) Without prejudice to the generality of subsection (2)(a)(i), natural gas undertakings shall keep separate accounts in relation to the supply of natural gas to eligible customers and customers that are not eligible customers.

• (b) In paragraph (a), "eligible customers" means persons who have a right to be made an offer by a facility or pipeline operator to enter into an agreement for third party access.

• (4)
• (a) The Commission, for the purpose of Article 16 of the Directive, shall—

• (i) have the right to require the preparation of and to have access to the accounts kept in accordance with this section of natural gas undertakings in whatever form may be required to discharge its functions under this Act, and

• (ii) preserve the confidentiality of commercially sensitive information.

• (b) The Commission shall determine that which constitutes commercially sensitive material and may provide for the disclosure of such information where this is necessary in order for it to carry out its functions.

• (5) Without prejudice to the generality of subsection (4) natural gas undertakings shall provide all documents, records, accounts, estimates or other information, whether oral or written, in relation to such activities requested, from time to time, by the Commission, for the purpose for verifying that the undertaking (or a subsidiary of the undertaking) is complying with the conditions of any licence granted or any direction given to it by the Commission, or as may be required by the Commission in the performance of its functions under this Act.]

18. Authorised officers.

18. —The Act of 1999 is amended—

• (a) in section 11(1), by the insertion after “authorisation” of “or a natural gas licence granted under section 16 of the Gas (Interim) (Regulation) Act, 2002, or a consent given under the Gas Act, 1976 ”.

• (b) in section 11(4), by the substitution for paragraph (b) of the following paragraphs:

• “(b) require a person to whom this section applies or any member, officer or employee of the person to whom this section applies to produce to the authorised officer any books, documents or records (and in the case of such information in a non-legible form to reproduce it in permanent legible form) which are in his or her power or control or to give him or her such information, whether oral or written, as the officer may reasonably require in relation to any entries in such records,

• (bb) require any such person to give to the officer any other information, whether oral or written, which the officer may reasonably require to determine whether this Act or the Gas (Interim) (Regulation) Act, 2002, are being complied with,”,

• (c) in section 12, by the insertion after “authorisation” of “or a natural gas licence granted under section 16 of the Gas (Interim) (Regulation) Act, 2002, or a consent given by the Minister prior to the appointed day under section 8(7) or 40(1) of the Gas Act, 1976, or given by the Commission under section 39A(1) of the Gas Act, 1976 ”.

19. Gas capacity statement.

19. — F47[(1) (a) It shall be the duty of the Commission to monitor security of supply of natural gas.

• (b) The monitoring referred to in paragraph (a) shall include the monitoring of—

• (i) the balance between supply and demand on the natural gas system,

• (ii) the natural gas flows on each part of the natural gas system,

• (iii) customer demand on each part of the natural gas system,

• (iv) the capacity of the natural gas system,

• (v) the level of expected future demand over the following 7 years,

• (vi) the envisaged additional capacity being planned or under construction,

• (vii) the quality and level of maintenance of the natural gas system,

• (viii) the measures to cover peak demand,

• (ix) the measures to deal with a shortfall of capacity by one or more suppliers,

• (x) the competitive impact of measures taken by the Commission to protect security of natural gas supply,

• (xi) the levels of storage capacity,

• (xii) the extent of long-term gas supply contracts concluded by licensed shippers and suppliers, and in particular their remaining duration, based on information provided by the shippers and suppliers concerned, but excluding commercially sensitive information,

• (xiii) the degree of liquidity of the gas market,

• (xiv) the regulatory frameworks to provide adequate incentives for new investment in exploration and production, storage, LNG and transport of gas, taking into account Article 22 of Directive 2003/55/EC.²

• (1A) The Commission shall prepare and publish, not later than 31 July in each year, a statement (in this section referred to as a "gas capacity statement") outlining the findings resulting from the monitoring specified in subsection (1), together with the measures taken or envisaged to address any issues identified.]

• F48[(1B) The Commission shall send a copy of the gas capacity statement to the Commission of the European Communities.]

• (2) A gas capacity statement shall be based on information supplied on request to the Commission by natural gas undertakings and it shall be a duty of a natural gas undertaking to supply any information, whether oral or written, that the Commission might reasonably require for the preparation of a gas capacity statement to the extent and within the timescale requested by the Commission.

• (3) The Commission may revise from time to time the information set out in and alter the form of each gas capacity statement.

• (4) The Commission may omit from a published gas capacity statement the details of any confidential information of the type mentioned in section 13 of the Act of 1999.

19A. F49[Security of supply

19A. (1) It shall be a function of the Commission:

• (a) to protect the security of supply of natural gas, including measures to protect the security of the national electricity supply,

• (b) to establish policies to ensure adequate levels of security of supply, and

• (c) to ensure that the supply of natural gas to household customers, small and medium sized enterprises, and other customers that cannot switch their gas consumption to other energy sources is protected, at least in the event of—

• (i) a partial disruption of national gas supplies during such period as may be specified from time to time by the Commission;

• (ii) extremely cold temperatures during a peak period (which period may be specified from time to time by the Commission);

• (iii) periods of exceptionally high gas demand during the coldest weather periods statistically occurring every 20 years.

• (2) In carrying out its duties under subsection (1) the Commission may—

• (a) take such measures as it considers necessary in relation to security of supply and may specify minimum security of supply standards which standards shall be complied with by a person referred to in subparagraphs (i) and (ii) of paragraph (b); and

• (b) give a direction which relates to security of supply to a person who is—

• (i) an energy undertaking, or

• (ii) the holder of a petroleum lease under section 13 of the Petroleum and Other Minerals Development Act 1960,

which direction may relate to the making of financial arrangements by such person and which direction shall be complied with by the person to whom it is directed.

• (3) The Commission shall inform the Minister of any measures which it takes pursuant to this section.

• (4) Where security of supply standards have been specified by the Commission under subsection (2)(a) such standards shall be published by the Commission.

• (5) The Commission shall ensure that any measure taken under subsection (2):

• (a) does not place an unreasonable and disproportionate burden on persons referred to in subsection (2)(b), and

• (b) is compatible with the requirements of a competitive internal gas market.

• (6) In determining the measures to be taken in connection with the provisions of subsection (2), the Commission shall have regard to the list of instruments to enhance security of supply set out in the Annex to the Directive.

• (7) Without prejudice to the generality of subsection (2), the Commission may, by means of licence conditions, impose such requirements as it considers necessary upon a natural gas undertaking for the purpose of ensuring that the security of supply is protected.

• (8) Section 16(16) does not apply to a licence condition imposed pursuant to subsection (7) relating to the protection of security of supply.

• (9)
• (a) The Commission shall advise the Minister of any likely and substantial risk to security of supply which the Commission, believes, having consulted such persons as it considers appropriate, cannot adequately be managed through national measures.

• (b) The Minister may, having considered the advice of the Commission—

• (i) in accordance with Article 8(3) of the Directive, inform the Chair of the Gas Coordination Group established under Article 7 of the Directive of any likely and substantial risk to security of supply identified by the Commission, and

• (ii) request that a meeting of that Group be commenced in accordance with the provisions of Article 9 of the Directive.

• (10)
• (a) In order to ensure compliance with a direction given under subsection (2), the Commission may apply to the High Court in a summary manner ex parte or on notice for an order requiring:

• (i) an energy undertaking, or

• (ii) the holder of a petroleum lease under section 13 of the Petroleum and Other Minerals Development Act 1960,

to comply with such direction.

• (b) The High Court may confirm, revoke or vary a direction given by the Commission and may make such other ancillary order as it thinks fit.

• (11) In this section—

"Directive" means Council Directive 2004/67/EC³ of 26 April 2004 concerning measures to safeguard security of natural gas supply;

"energy undertaking" has the same meaning as it has in the Electricity Regulation Act 1999;

"security of supply" means security of supply of natural gas, including the security of the national electricity supply;

"security of supply standards" means the criteria referred to in paragraphs (i) to (iii) of subsection (1)(c).]

19B. F50[National security measures for natural gas

19B. (1) Subject to subsection (3), the Commission may direct the holder of a natural gas licence for the operation of a transmission system to develop, subject to the approval of the Commission, a Natural Gas Emergency Plan as respects natural gas, which plan shall be developed—

• (a) within such period of time as the Commission shall direct, and

• (b) following such consultation as the Commission may direct.

• (2) Notwithstanding the generality of section 13(3), the Commission may from time to time give directions to the holder of a natural gas licence for the operation of a transmission system with respect to the protection of security of supply and actions to be taken in the event of a natural gas emergency and which directions relate to—

• (a) the matters to be specified in its code of operations, and

• (b) the review and revision by such licence holder from time to time of its code of operations.

• (3) Notwithstanding the generality of subsection (1), the Natural Gas Emergency Plan as respects natural gas shall include:

• (a) procedures for the holder of a natural gas licence for the operation of a transmission system to declare a natural gas emergency,

• (b) provision for the appointment of a National Gas Emergency Manager by the Commission,

• F51[(c) measures to ensure that supplies for household customers and any such categories of customers, as may be determined by the Commission from time to time, are protected in the event of a natural gas emergency,]

• (d) measures to protect the security of the national electricity system in so far as that system is dependent on natural gas,

• (e) the role and responsibilities of the Commission and the person appointed to be the National Gas Emergency Manager in the event of a natural gas emergency,

• (f) the roles and responsibilities of each class of energy undertaking and certain classes of final customers in the event of a natural gas emergency,

• (g) the roles and responsibilities of a holder of a petroleum lease under section 13 of the Petroleum and Other Minerals Development Act 1960 in the event of a natural gas emergency,

• (h) provision to ensure, where appropriate, that energy undertakings are given sufficient opportunity to provide an initial response to a natural gas emergency,

• (i) provision to ensure that customers are protected where the licence of one or more persons who are the holders of a licence to supply natural gas is revoked or in the event that the holder of a licence to supply natural gas decides to discontinue such licensed activity in the State,

• (j) measures to minimise the impact on electricity generation and on the safe, secure, reliable, economical and efficient operation of the electricity system, which measures shall be reviewed regularly,

• (k) a requirement that the National Gas Emergency Manager shall co-ordinate the activities of energy undertakings in order to ensure security of electricity supplies.

• (4) Measures taken to protect supplies of natural gas for household customers shall have as an objective the avoidance of discrimination—

• (a) between persons holding a licence to supply natural gas, or

• (b) between persons holding a licence for the shipping of natural gas.

• (5) The Commission shall appoint a person to be the National Gas Emergency Manager for natural gas and the duties of that manager shall include:

• (a) the co-ordination of the implementation of the Natural Gas Emergency Plan for natural gas,

• (b) the co-ordination of activities and planning with such other emergency bodies as may be necessary from time to time,

• (c) the publication, including publication by electronic means, in a format to be approved by the Commission, of the measures to be taken in the event of a natural gas emergency as specified in the Natural Gas Emergency Plan, and

• (d) the carrying out of such other tasks relating to natural gas emergencies as the Commission may specify from time to time.

• (6) In carrying out its duties under paragraph (a) of subsection (5), the National Gas Emergency Manager may give directions to persons referred to in paragraphs (f) and (g) of subsection (3) as to the production, use, supply, shipping, storage, transmission or distribution of natural gas, and such persons shall comply with those directions.

• (7)
• (a) In order to ensure compliance with a direction given under subsection (6), the Commission may apply to the High Court in a summary manner ex parte or on notice for an order requiring a person to whom the direction is addressed to comply with such direction.

• (b) The High Court may confirm, revoke or vary a direction given by the National Gas Emergency Manager and may make such other ancillary order as it thinks fit.

• (8) The Commission may, following consultation with the National Gas Emergency Manager, the holder of a natural gas licence for the operation of a transmission system, and any other person it considers it is necessary to consult—

• (i) review the operation of the Natural Gas Emergency Plan from time to time with a view to its being amended, and

• (ii) may direct the holder of a natural gas licence for the operation of a transmission system to make such changes to the Natural Gas Emergency Plan as the Commission considers necessary following the review carried out under subparagraph (i).

• (9)
• (a) The Commission may revoke the appointment of a person as National Gas Emergency Manager made under subsection (5) and shall inform that person of its decision no later than 7 days after such revocation.

• (b) A revocation under paragraph (a) shall not have effect until the Commission has appointed another person to be the National Gas Emergency Manager and such appointment takes effect.

• (10) In this section—

"energy undertaking" has the same meaning as it has in the Electricity Regulation Act 1999;

"natural gas emergency" means any event or circumstance or combination of events or circumstances which have occurred or may occur on the gas network or on any interconnected system, including the supply, shipping, production and storage of natural gas, which adversely affects or may adversely affect, the safety or operational integrity of the onshore gas network or any localised part thereof or which results or may result in a risk to the safety of life, property or the environment.]

20. Provision of information.

20. —(1) The Minister may, from time to time, issue guidelines to be followed by the Commission in relation to the provision of information by the Commission to such classes of person as the Minister considers appropriate, including final customers of electricity and gas, concerning the rights of such classes of person, and any other information the Minister considers would be of benefit to such classes of person.

• (2) Without prejudice to the generality of subsection (1), the guidelines may provide for the manner in which such information should be provided, including, where the Minister considers it appropriate, publication by electronic means.

• (3) In subsection (1), “final customer” in relation to electricity, has the meaning assigned to it in section 2(1) of the Act of 1999.

21. Public service obligations.

21. —F52[(1) The Minister, following consultation with the Commission and such interested parties as may be determined by the Minister, may by order direct the Commission to impose on such classes of natural gas undertakings as may be specified in the order in the general economic interest, public service obligations which may include security, including security of supply and technical or public safety, regularity, quality and price of supplies, and to environmental protection including energy efficiency and climate protection. Any obligations imposed shall be clearly defined, transparent, non-discriminatory and verifiable.]

• (2) Without prejudice to the generality of subsection (1), an order made under that subsection may provide for the charging of a levy (“levy”) by natural gas undertakings to customers in relation to—

• (a) the costs of delivery of natural gas, and

• (b) any other costs as may be deemed appropriate from time to time by the Minister, including a reasonable rate of return on the capital represented by such costs, where appropriate, incurred by natural gas undertakings in complying with an order under subsection (1) including costs incurred after the variation or revocation of such an order.

• (3) Notwithstanding the generality of subsection (2), an order made under this section may provide for:

• (a) the method of calculation of levy and the manner in which it shall be apportioned to customers,

• (b) the collection of levy from final customers by natural gas undertakings,

• (c) the establishment and the administration by the Commission of a fund to be used for—

• (i) the collection of payments made by natural gas undertakings, and

• (ii) the disbursement of payments as provided under paragraph (e),

• (d) the transfer, at such times specified in the order, of collected payments referred to in paragraph (b) by natural gas undertakings to the fund, and

• (e) the making, out of the fund, by the Commission of payments to natural gas undertakings for the achievement of the purpose of the fund.

• (4) An order made under this section may—

• (a) impose requirements (whether as to the furnishing of records or other information or the affording of facilities for the examination and testing of meters or otherwise) on natural gas undertakings,

• (b) provide for the times at which payments are to be made (whether payments by way of levy or payments to natural gas undertakings), and

• (c) require the amount of any overpayment or underpayment which is made by or to any person to be set off against or added to any subsequent liability or entitlement of that person.

• (5) The Minister shall exercise the powers conferred by this section so as to ensure that any sums realised by levy are sufficient (after the payment of the administrative expenses of natural gas undertakings incurred in the collection of levy, or of the Commission in the administration of the fund) to pay to natural gas undertakings the payment required to be made by the order.

• (6) The Minister may by order amend or revoke an order made under this section (including an order made under this subsection).

• (7) For the avoidance of doubt, a public service obligation may not be imposed for the purpose of extending the natural gas system to new areas of supply on a non-commercial basis.

• (8) The reference in section 29(1)(b)(i) of the Act of 1999 to an order made under section 39 shall, in the case of a proposed modification of a natural gas licence or a consent given by the Minister prior to the appointed day under section 8(7) or 40(1) of the Gas Act, 1976, or a consent given by the Commission under section 39A(1) (inserted by section 12 ) of the Gas Act, 1976, be taken to mean an order made under subsection (1).

• (9) In this section “public service obligation” means an obligation placed on natural gas undertakings which takes account of general social, economic and environmental factors.

21A. F53[Supplier of last resort

21A.—(1) (a) The Commission may invite expressions of interest from persons who are licensed suppliers to act as a supplier of last resort, that is, to supply gas in accordance with this section.

• (b) Following public consultation and subject to paragraph (c), the Commission shall designate a licensed supplier to act as a supplier of last resort.

• (c) The Commission may reconfirm, amend or revoke a designation made under this subsection as it sees fit.

• (2) A supplier of last resort shall supply gas to final customers of another licensed supplier where—

• (a) a licensed supplier with whom final customers have a supply contract ceases or fails to supply gas to those final customers in accordance with its contractual obligations, or

• (b) following representations to the Commission from a licensed supplier, the Commission is of the opinion that circumstances exist which warrant a direction to that supplier of last resort to supply gas to a final customer.

• (3) The Commission shall include in a designation under subsection (1) any terms, conditions or requirements considered necessary by the Commission in respect of the functions of that supplier of last resort.

• (4) The Commission shall specify in a designation—

• (a) the terms and conditions under which that supplier of last resort shall supply gas to a final customer, including those in relation to—

• (i) duration of supply,

• (ii) termination of supply, and

• (iii) price,

• (b) the method for calculating the charges for the supply of gas to a final customer,

• (c) any other matters which the Commission considers necessary for the purpose of the supply of gas to a final customer by that supplier of last resort,

and that supplier of last resort shall comply with the matters so specified.

• (5) Where a final customer is supplied with gas by a supplier of last resort, a contract for the supply of gas shall be deemed to exist between the final customer and the supplier of last resort concerned from the date upon which the supply of gas to the final customer by such supplier of last resort commences and such contract shall be subject to terms and conditions specified by the Commission in designating that supplier of last resort.]

21B. F54[Shipper of last resort.

21B.—(1) (a) The Commission may invite expressions of interest from licensed shippers to act as a shipper of last resort, that is, to ship gas in accordance with this section.

• (b) Following public consultation and subject to paragraph (c), the Commission may designate a licensed shipper to act as a shipper of last resort.

• (c) F55[…]

• (d) The Commission may reconfirm, amend or revoke a designation made under paragraph (b) as it sees fit.

• (2) A shipper of last resort shall ship gas to customers of another licensed shipper where—

• (a) a licensed shipper with whom customers have a shipping contract ceases or fails to ship gas to those customers in accordance with its contractual obligations, or

• (b) following representations to the Commission from a licensed shipper, the Commission is of the opinion that circumstances exist which warrant a direction to that shipper of last resort to ship gas to a customer of a licensed shipper.

• (3) The Commission shall include in a designation under subsection (1) any terms, conditions or requirements considered necessary by the Commission in respect of the functions of that shipper of last resort.

• (4) The Commission shall specify in a designation—

• (a) the terms and conditions under which that shipper of last resort shall ship gas to a customer of a licensed shipper, including those in relation to—

• (i) the duration of the obligation,

• (ii) the termination of obligation, and

• (iii) charges,

• (b) the method for calculating the charges for the shipping of gas arising from the designation,

• (c) any other matters which the Commission considers necessary,

and that shipper of last resort shall comply with the matters so specified.

• (5) Where a shipper of last resort ships gas to or on behalf of a customer of a licensed shipper in accordance with this section, a contract for the shipping of that gas shall be deemed to exist between that customer and the shipper of last resort concerned from the date upon which the shipping of gas to the customer by such shipper of last resort commences, and such contract shall be subject to terms and conditions specified by the Commission in designating the shipper of last resort.

• (6) The Commission may designate a person who is both a licensed shipper and a licensed supplier to be a shipper of last resort under this section and a supplier of last resort under section 21A.]

21C. F56[Consumer Protection

F57[21C.]]—F58[…]

21D. F59[Resolution of Disputes

F60[21D.]—F61[…]

22. Funding of Commission.

22. —(1) The Act of 1999 is amended—

• (a) in section 2(1)—

• (i) by the substitution for the definition of “Commission” of the following definition:

“ ‘Commission’ means the Commission for Energy Regulation;”,

• (ii) by the insertion—

• (I) after the definition of “electricity undertaking” of the following definition:

“ ‘energy undertaking’ means an electricity undertaking or a natural gas undertaking.”, and

• (II) after the definition of “Minister” of the following definition:

“ ‘natural gas undertaking’ means a person engaged in the transmission, distribution, supply or storage of natural gas, including any holder of a licence or a consent under this Act, or any person who has been granted a licence or given a consent under the Gas Acts, 1976 to 2002,”,

• (b) in paragraphs 16 and 17 of the Schedule by the substitution for “electricity undertakings” of “energy undertakings” in each place where it occurs,

• (c) in paragraph 16 of the Schedule after “in the order.” to insert the following sentence:

“Separate orders may be made under this paragraph in respect of electricity undertakings and natural gas undertakings.”,

• (d) in paragraph 20 of the Schedule after “to meet its expenses” by the insertion of “in the following year and the levy for that year shall take into account such excess”, and

• (e) in paragraph 25 of the Schedule by the substitution for subparagraph (a) of the following subparagraphs:

• “(a) keep in such form as may be approved by the Minister, with the concurrence of the Minister for Finance, all proper and usual accounts of all moneys received or expended by it including an income and expenditure account and balance sheet,

• (aa) shall ensure, as far as is reasonably practicable, that such accounts identify separately in regard to the gas and electricity sectors all elements of cost and revenue, with the basis of their calculation and the detailed attribution methods used, related to the discharge of the Commission's functions under this Act,”.

• (2) For the purpose of recouping to the Minister the sums expended by him or her before or after the appointed day in taking steps to facilitate the Commission in the performance of its functions conferred on it by this Act, the Commission may make an order imposing a levy to be paid each year on such classes of energy undertaking as may be specified by the Commission in the order.

23. Miscellaneous amendments.

23. —(1) The Gas Act, 1976, is amended, on the appointed day—

• (a) in section 2—

• (i) by the substitution for the definition of “Commission” of the following definition:

“ ‘the Commission’ means the Commission for Energy Regulation;”,

• (ii) by the insertion after the definition of “the Company” of the following definition:

“ ‘customer’ means a wholesale or final customer of natural gas and natural gas undertakings who purchases natural gas;”,

• (iii) by the insertion before the definition of “deviation limits” of the following definition:

“ ‘designated area’ has the meaning assigned to it by the Continental Shelf Act, 1968;”,

• (iv) in the definition of “pipeline” by the substitution for “transmission” of “transportation”, and

• (v) by the insertion after the definition of “seashore” of the following definition:

“ ‘upstream pipeline’ has the meaning assigned to it by section 2 of the Gas (Interim) (Regulation) Act, 2002;”,

• (b) in section 20(2), by the substitution for “ £100” of “ €600”,

• (c) in section 21, by the insertion after subsection (2) of the following subsections:

• “(3) Notwithstanding the generality of subsection (1) and for the avoidance of doubt, the Board shall not, without the prior approval of the Minister given with the consent of the Minister for Finance, construct a pipeline.

• (4) The Minister may, with the consent of the Minister for Finance, by notice in writing delivered to the Board declare that subsection (3) shall not apply to the construction of pipelines or specified pipelines or classes of pipelines in a specified area and, whenever a notice under this paragraph is in force, subsection (3) shall not apply in relation to the construction of pipelines, or those pipelines or classes of pipelines specified in the notice, in the area specified in the notice.”,

• (d) in section 26—

• (i) in subsection (1)(c), by the substitution for “section 8(7) or 40(1) of this Act or, as the case may be, the giving of previous or reasonable notice under the said section 40(1),” of “section 39A(1) of this Act”, and

• (ii) by the insertion after subsection (1) (as amended by section 20 of the Act of 2000) of the following subsection:

• “(1A) Notwithstanding the generality of subsection (1), an authorised person may only enter land under this section for the purposes mentioned in paragraphs (c) and (d) of that subsection where—

  • (a) in the case of a pipeline other than an upstream pipeline, the Board has notified the Commission in writing of its intention to make an application for the Commission's consent under section 39A(1) in relation to the construction of a pipeline and in respect of which notification the Commission provides a certificate to the Board, after having made such inquiries, if any, as the Commission thinks appropriate, stating that the notification demonstrates a bona fide intention on the part of the Board to make such an application, or

  • (b) in the case of an upstream pipeline, the Board has notified the Minister for the Marine and Natural Resources in writing of its intention to make an application for that Minister's consent under section 40(1) in relation to the construction of a pipeline and in respect of which notification, that Minister provides a certificate to the Board, after having made such inquiries, if any, as that Minister thinks appropriate, stating that the notification demonstrates a bona fide intention on the part of the Board to make such an application.”,

• (e) in section 27—

• (i) in subsection (1), by the substitution for “subsections (7), (8) and (9) of section 8 of this Act, or, as the case may be, section 40(2) of this Act,” of “section 39A(4) of this Act”,

• (ii) in subsection (2)—

• (I) by the substitution for “section 8(9) of this Act” of “section 39A(6) of this Act”, and

• (II) by the deletion of “the Commission,” in each place where it occurs, and

• (iii) in subsection (4)(c), by the deletion of subparagraph (i),

• (f) in section 30(5), by the substitution for “ £50” of “ €600”,

• (g) in section 32—

• (i) by the substitution for subsection (1A) (inserted by section 20 of the Act of 2000) of the following:

• “(1A)

  • (a) A person may apply to the appropriate Minister of the Government for an order under this section (which order is in this Act also referred to as an ‘acquisition order’) to acquire compulsorily any land or right over land which is required by such person in connection with the construction or operation of a pipeline for which such person applies or has applied for a consent under section 39A or 40 of this Act, as the case may be, and, subject to the following provisions of this section, the appropriate Minister of the Government may make an acquisition order in relation to the land or right over the land.

  • (b) In this subsection ‘appropriate Minister of the Government’ means—

    • (i) in the case of an upstream pipeline, the Minister for the Marine and Natural Resources, and

    • (ii) in any other case, the Minister.”,

and

• (ii) in subsection (3), by the substitution for “Minister for Lands and the Commission” of “Minister for Agriculture, Food and Rural Development”,

• (h) in section 38(2), by the substitution for “ £200” of “ €2,000”,

• (i) in section 39—

• (i) by the substitution in subsection (1) for “The Board” of “A person, including the Board, who has been given a consent under this Act”, and

• (ii) by the insertion in subsection (2) of “or any other person under this Act” after “the Board”,

• (j) in section 42(2), the substitution for paragraph (b) of the following paragraph:

• “(b) is a pipeline as regards which a condition has been attached—

  • (i) by the Commission under section 39A(4) to a consent in respect of the pipeline, not being an upstream pipeline, or

  • (ii) by the Minister for the Marine and Natural Resources under section 40(3) to a consent in respect of the pipeline, being an upstream pipeline.”,

and

• (k) in the Second Schedule—

• (i) in Article 3(1)(d), by the deletion of “the Commission,”,

• (ii) by the substitution for paragraph (1) of Article 5 of the following:

• “(1) There shall be paid to the Minister for the Marine and Natural Resources on every application for an acquisition order in relation to the provision of an upstream pipeline such fee (if any) as the Minister for the Marine and Natural Resources, with the consent of the Minister for Finance, may fix.”,

• (iii) in Article 11, by the substitution for paragraph (d) of the following paragraph:

• “(d) where the Board acts in contravention (whether by commission or omission) of the order the Board shall be guilty of an offence and shall be liable on summary conviction to a fine not exceeding €2,000,”,

• (iv) in Article 11(g), by the substitution for “Commission” of “Minister for Agriculture, Food and Rural Development” in each place where it occurs, and

• (v) in Article 11(h)—

• (I) by the substitution for “and provide that any person” of “and any person”, and

• (II) by the substitution for “ £25” of “ €500”.

• (2) The Gas (Amendment) Act, 1987, is amended, on the appointed day—

• (a) in section 1 by the insertion before the definition of “the Company” of the following definition:

“ ‘Commission’ means the Commission for Energy Regulation”, and

• (b) in section 2—

• (i) in subsection (1), by the substitution for “may by order confer on the Board” of “may by order confer, or may refuse to confer, on one or more persons, including the Board, concurrently”,

• (ii) in subsection (2), (4), (5) and (6), by the insertion after “the Board” of “or the relevant person”, in each place where it occurs,

• (iii) by the deletion of subsection (3),

• (iv) by the insertion after subsection (5) of the following subsection:

• “(5A) Without prejudice to the generality of subsection (1) of this section, the Commission—

  • (a) may refuse to make an order under that subsection conferring functions in relation to the provision of pipelines in a particular area where it determines that the capacity of existing or proposed distribution or transmission pipelines in that area provided or proposed to be provided by any person, including the Board, who is subject to an existing order under that subsection in relation to that area, represents adequate provision for reasonable expectation of demand,

  • (b) shall refuse to make an order under that subsection conferring functions on a person, including the Board, in relation to the sale and supply of gas in a particular area in addition to an existing order conferring such functions on any other person, including the Board, in regard to that area until such time as the annual rate prescribed in section 10A(1)(d) of the Principal Act stands at zero standard cubic metres per annum, and

  • (c) shall, solely, determine what constitutes a ‘proposed distribution or transmission pipeline’ and ‘reasonable expectation of demand’ in paragraph (a) of this subsection.”,

• (v) in subsections (6)(a) and (b), by the substitution for “section 8(7)” of “section 39A(1)”, in each place where it occurs,

• (vi) in subsections 6(b), (c) and (d), by the deletion of “,with the consent of the Minister for Finance,”, in each place where it occurs, and

• (vii) by the insertion after subsection (6) of the following subsection:

• “(6A)

  • (a) The Commission may, from time to time, examine charges, and the costs underlying such charges, or any proposals to alter such charges, for natural gas supplied to customers by a person, including the Board, in accordance with functions conferred on that person or the Board, as the case may be, by an order under subsection (1) of this section.

  • (b) Where it considers it necessary following an examination under paragraph (a) of this subsection, the Commission shall issue a direction to the person or the Board in relation to either or both the nature and the amount of any charge or proposed charge referred to in that paragraph and the person or the Board, as the case may be, shall comply with such a direction.”,

and

• (c) by the insertion after section 2 of the following section:

“2A.—(1) Where the Commission considers it appropriate, it may conduct a competitive process for the purpose of selecting an applicant in respect of whom an order under subsection (1) of section 2 of this Act may be made.

• (2) The Commission may make regulations relating to the conduct of such a competitive process, and such regulations may include—

  • (a) the period of time allowed for the submission of expressions of interest by prospective applicants,

  • (b) the criteria for the pre-qualification of applicants,

  • (c) the period of time allowed for the submission of applications,

  • (d) the criteria by which applications will be adjudicated,

  • (e) the terms and conditions that may be applied in relation to the successful applicant,

  • (f) the lodging of a bond (if any) by the successful applicant, and

  • (g) any other matter which the Commission considers appropriate and necessary for the holding of a competitive process under subsection (1) of this section.

• (3) Where a competitive process is conducted under this section, the Commission shall not be obliged to select an applicant where it considers that no applicant is suitable.”.

• (3) Section 26(1) of the Act of 1999 is amended by the insertion after “a direction given under” of “section 23(2) or”.

• (4) Section 13 of the Act of 1999 is amended, on the appointed day, by the substitution for subsection (1A) (inserted by section 14 of the Act of 2000) of the following subsection:

• “(1A) In subsection (1) ‘duties’ means duties falling to be performed in the course of the performance by the Commission of its functions under this Act, the Gas (Amendment) Act, 2000, or the Gas (Interim) (Regulation) Act, 2002.”.

• (5) The Freedom of Information Act, 1997, is amended in the Third Schedule thereto by the addition to Part I at the end thereof—

• (a) in column (2), of “ Gas (Interim) (Regulation) Act, 2002.”, and

• (b) in column (3), of “ Section 19 .”.

• (6) The Act of 2000 is amended, on the appointed day—

• (a) in section 1(1), by the substitution for the definition of “Commission” of the following definition:

“Commission” means Commission for Energy Regulation;”

and

• (b) in section 20—

• (i) the substitution for paragraph (a) of the following paragraph:

• “(a) save to the extent that this section has application to section 26 of the Principal Act, a person—

  • (i) in respect of whom the Minister has, prior to the appointed day (within the meaning of section 2 of the Gas (Interim) (Regulation) Act, 2002), imposed a requirement under section 40(2) of the Principal Act,

  • (ii) who, prior to the aforementioned day, has obtained the consent of the Minister under section 40(1) of the Principal Act,

  • (iii) who, from the aforementioned day, has obtained the consent of the Commission under section 39A(1) of the Principal Act, or

  • (iv) who, from the aforementioned day, has obtained the consent of the Minister for the Marine and Natural Resources under section 40(1) of the Principal Act,

  in relation to the construction, or construction and operation of a pipeline, as the case may be,”,

• (ii) the substitution for paragraph (b) of the following paragraph:

• “(b) to the extent that this section has application to the said section 26, a person—

  • (i) who, prior to the aforementioned day, has notified the Minister in writing of his or her intention to give a notice or make an application for the Minister's consent under section 40(1) of the Principal Act in relation to the construction of a pipeline and in respect of which notification the Minister provides a certificate to the person, after having made such enquiries, if any, as the Minister thinks appropriate, stating that the notification demonstrates a bona fide intention on the part of that person to give such a notice or make such an application,

  • (ii) who, from the aforementioned day, has notified the Commission in writing of his or her intention to make an application for the Commission's consent under section 39A(1) of the Principal Act in relation to the construction of a pipeline and in respect of which notification the Commission provides a certificate to the person, after having made such enquiries, if any, as the Commission thinks appropriate, stating that the notification demonstrates a bona fide intention on the part of that person to give such a notice or make such an application, or

  • (iii) who, from the aforementioned day, has notified the Minister for the Marine and Natural Resources in writing of his or her intention to make an application for the consent of the Minister for the Marine and Natural Resources under section 40(1) of the Principal Act in relation to the construction of a pipeline and in respect of which notification the Minister for the Marine and Natural Resources provides a certificate to the person, after having made such enquiries, if any, as the Minister for the Marine and Natural Resources thinks appropriate, stating that the notification demonstrates a bona fide intention on the part of that person to give such a notice or make such an application.”,

and

• (iii) in subsection (2), by the insertion after “by a relevant person and those provisions” of “, other than section 26(1A),”.

24. Revocation.

24. —The European Communities (Internal Market in Natural Gas) (Compulsory Acquisition) Regulations 2001 (S.I. No. 517 of 2001) are revoked.

SCHEDULE

Section 7.

Functions under Acts transferred from Minister to Commission

Number and Year

Short Title

Section

• (1)

• (2)

• (3)

No. 30 of 1976

Gas Act, 1976

Section 27 (insofar as the functions relate to the provision of distribution and transmission pipelines)

Section 31 (insofar as the functions relate to the provision of distribution or transmission pipelines)

Section 32 (insofar as the functions relate to the provision of distribution or transmission pipelines)

Section 39 (insofar as the functions relate to the provision of distribution or transmission pipelines)

Second Schedule (insofar as the functions relate to the provision of distribution or transmission pipelines)

No. 9 of 1987

Gas (Amendment) Act, 1987

Section 2(1), (4), (6) and (7)

Footnotes