The Electricity and Gas etc. (Amendment etc.) (EU Exit) Regulations 2019
Made: 15th March 2019
Coming into force in accordance with regulation 1
The Secretary of State makes these Regulations in exercise of the powers conferred by section 8(1) of, and paragraph 21 of Schedule 7 to, the European Union (Withdrawal) Act 2018 .
In accordance with paragraph 1(3) of Schedule 7 to that Act, a draft of this instrument has been laid before Parliament and approved by a resolution of each House of Parliament.
PART 1 — Preliminary
Citation, commencement and extent
1
- (1) These Regulations may be cited as the Electricity and Gas etc. (Amendment etc.) (EU Exit) Regulations 2019 and come into force on exit day.
- (2) An amendment, repeal or revocation made by Part 2, 3, or 4 of these Regulations has the same extent as the provision being amended, repealed or revoked.
- (3) In these Regulations, “the Electricity Regulation” means Regulation (EU) 2019/943 of the European Parliament and of the Council of 5 June 2019 on the internal market for electricity (recast) and “predecessor”, in relation to that Regulation, means Regulation (EC) No 714/2009 of the European Parliament and of the Council of 13 July 2009 on conditions for access to the network of cross-border exchanges in electricity and repealing Regulation (EC) No 1228/2003.
PART 2 — Amendment of primary legislation
Energy Act 1976
2
The Energy Act 1976 is amended as follows.
3
In section 3 (implementation of reserve powers), in subsection (1)(a), omit “the European Union or”.
4
In section 18 (administration, enforcement and offences), in subsection (2)—
- (a) omit paragraph (c) and the “or” following it;
- (b) omit paragraph (d)(i) and the “or” following it.
5
- (1) Schedule 2 (administration and other matters) is amended as follows.
- (2) In paragraph 1 (power to obtain information), in sub-paragraph (2), omit “the European Union or”.
- (3) In paragraph 7 (non-disclosure of information), in paragraph (c), omit “to any institution of the European Union, or”.
6
Omit Schedule 3 (EU obligations of which breach is punishable under this Act).
Gas Act 1986
7
The Gas Act 1986 is amended as follows.
8
- (1) Section 4AA (the principal objective and general duties of the Secretary of State and the Gas and Electricity Markets Authority) is amended as follows.
- (2) In subsection (1A)(c)—
- (a) for “functions as designated regulatory authority for Great Britain” substitute “ designated regulatory functions ”;
- (b) for the words from “objectives” to “Directive” substitute “ designated regulatory objectives ”.
- (3) In subsection (5B), at the appropriate place insert—
“the designated regulatory objectives” means the objectives set out in Article 40(c) to (h) of the Gas Directive but read with the following modifications— (a) in Article 40(c), for the words from “between” to the end substitute “ , including enabling the development of appropriate cross-border transmission capacities to meet demand; ”, (b) in Article 40(d), omit “, in line with general energy policy objectives,”, (c) in Article 40(f), omit “and foster market integration”, and (d) in Article 40(g), for “their national market” substitute “ the energy market in Great Britain ”;
9
In section 4B (exceptions from sections 4AA to 4A), in subsection (4), after “any”, in the second place it occurs, insert “ retained ”.
10
- (1) Section 4C (duty of the Gas and Electricity Markets Authority as regards binding decisions of the Agency or European Commission) is amended as follows.
- (2) Renumber the existing section as subsection (1).
- (3) After subsection (1) insert—
(2) For the purposes of subsection (1), a binding decision does not include a decision that is not, or so much of a decision as is not, retained EU law.
11
- (1) Section 4D (Gas and Electricity Markets Authority to consult and cooperate with other authorities) is amended as follows.
- (2) In subsection (1)—
- (a) for “functions as designated regulatory authority for Great Britain” substitute “ designated regulatory functions ”;
- (b) in paragraph (a), for the words from “Agency” to “States” substitute “ Northern Ireland Authority ”;
- (c) in paragraph (b)—
- (i) for the words from “Agency and” to “States” substitute “ Northern Ireland Authority ”;
- (ii) for “they” substitute “ it ”;
- (iii) for the words from “their” to “to gas” substitute “ its designated regulatory functions ”.
- (3) In subsection (2)—
- (a) for the words from “designated” to “Britain” substitute “ Northern Ireland Authority ”;
- (b) omit “, within that region,”;
- (c) omit paragraph (a);
- (d) in paragraph (d)—
- (i) for “cross-border trade in gas” substitute “ trade in gas between Great Britain and Northern Ireland ”;
- (ii) for “cross-border capacity” substitute “ capacity between Great Britain and Northern Ireland ”;
- (e) omit paragraph (f) (but not the “and” following it).
- (4) In subsection (3)—
- (a) omit the definition of “network code”;
- (b) omit the definition of “region” and the “and” following it.
12
In section 8D (application for certification), in subsection (3)—
- (a) omit “on or after 3 March 2013”;
- (b) for “third country”, in both places, substitute “ country outside the United Kingdom ”;
- (c) in paragraph (a), omit “and the European Commission”;
- (d) in paragraph (b)—
- (i) omit “to the Secretary of State”;
- (ii) omit “or any other EEA state”.
13
- (1) Section 8E (report where applicant connected with a country outside the European Economic Area) is amended as follows.
- (2) In the heading, for “European Economic Area” substitute “ United Kingdom ”.
- (3) In subsection (1), for “third country”, in both places, substitute “ country outside the United Kingdom ”.
- (4) In subsection (2), omit “or any other EEA state”.
- (5) In subsection (5)(b), omit “third”.
14
Notwithstanding the amendments of sections 8D and 8E of the Gas Act 1986 made by regulations 12 and 13, if an application under section 8D is made before IP completion day and the applicant is a person from an EEA state or a person controlled by a person from an EEA state—
- (a) the Gas and Electricity Markets Authority is not required to notify the Secretary of State of the application under section 8D(3), and
- (b) the Secretary of State is not required to prepare a report under section 8E in relation to the application.
15
- (1) Section 8F (certification) is amended as set out in paragraphs (2) to (5).
- (2) In subsection (1)—
- (a) omit “preliminary”;
- (b) for “it should” substitute “ to ”.
- (3) In subsection (4)—
- (a) omit “preliminary”;
- (b) after paragraph (a) insert “ and ”;
- (c) omit paragraph (c) and the “and” before it.
- (4) Omit subsections (5) to (8).
- (5) After subsection (8) insert—
(9) The Authority must publish its decision to certify or to refuse to certify the applicant, together with the reasons for it, in such manner as it considers appropriate.
- (6) Where, immediately before IP completion day, the Gas and Electricity Markets Authority has made a preliminary decision under section 8F of the Gas Act 1986 on an application for certification, but not a final decision under Article 3 of Regulation (EC) No 715/2009 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 (EC) No 1775/2005, the Authority's preliminary decision is to be treated on and after IP completion day as if it were a final decision under Article 3 made immediately before IP completion day.
- (7) If a preliminary decision of the Gas and Electricity Markets Authority is treated as a final decision to certify, or to refuse to certify, an applicant because of paragraph (6), the Authority must publish, in such manner as it considers appropriate, a document setting out that decision and the reasons for it.
16
- (1) Section 8G (grounds for certification) is amended as follows.
- (2) In subsection (1)—
- (a) in paragraph (a)—
- (i) omit “preliminary”;
- (ii) for “an applicant should be certified” substitute “ to certify an applicant ”;
- (b) omit paragraph (b).
- (3) In subsection (2)—
- (a) omit “decide that the applicant should be certified, or”;
- (b) omit “six”.
- (4) Omit subsection (6).
- (5) In subsection (7)(b), for the words from “requirement” to the end substitute—
requirement— (i) in accordance with Article 36 of the Gas Directive (new infrastructure) before IP completion day and remains entitled to the benefit of it, or (ii) on the basis set out in Article 36(1) to (3) and (6) of the Gas Directive and remains entitled to the benefit of it.
- (6) In subsection (9)—
- (a) omit paragraph (a);
- (b) in paragraph (b)—
- (i) omit “must not decide that the applicant should be certified, and”;
- (ii) omit “or any other EEA state”;
- (c) omit paragraph (c).
- (7) After subsection (9) insert—
(10) For the purposes of subsection (4), Article 9(9) of the Gas Directive is to be treated as if the comparison with the provisions of Chapter 4 of the Gas Directive were a comparison with the provisions of Chapter 4 as they applied in relation to a member State immediately before IP completion day. (11) The references in subsection (5) to Article 14(1) and (2) of the Gas Directive are to be treated as references to those provisions with the following modifications— (a) Article 14(1) is to be read as if the second and third sentences were omitted; (b) Article 14(2)(b) is to be read as if after “Article 13” there were inserted— as implemented in relation to Great Britain immediately before IP completion day, disregarding for this purpose— (i) paragraph 2, (ii) paragraph 3 so far as relating to Article 41(6)(c), and (iii) paragraph 4 except as it relates to such minimum standards, if any, as apply in Great Britain (c) Article 14(2)(e) is to be read as if— (i) for “Regulation (EC) No 715/2009” there were substituted “ the Gas Regulation ”, and (ii) the words from “including” to the end were omitted.
17
- (1) Section 8J (designation for the purposes of EU gas legislation) is amended as set out in paragraphs (2) to (5).
- (2) In the heading, for “EU gas legislation” substitute “ the Gas Regulation ”.
- (3) In subsection (2)—
- (a) omit “fourth,”;
- (b) for the words from “Article” to “operators)” substitute “ the Gas Regulation ”.
- (4) In subsection (3), for “that Article” substitute “ the Gas Regulation ”.
- (5) In subsection (4)—
- (a) after paragraph (a) insert “ and ”;
- (b) omit paragraph (c) and the “and” preceding it.
- (6) A person who is designated as a gas transmission system operator under section 8J of the Gas Act 1986 for the purposes of Article 10(2) of the Gas Directive immediately before IP completion day is to be treated, on and after IP completion day, as a person who is designated as a gas transmission system operator under section 8J for the purposes of the Gas Regulation, if and for so long as the person designated or (as the case may be) the person who nominated the person designated continues on and afterIP completion day to hold a licence under section 7 or 7A of the Gas Act 1986 and to be certified under section 8F of that Act.
- (7) In paragraph (6)—
- “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 , as amended by Directive (EU) 2019/692 of the European Parliament and of the Council of 17 April 2019;
- “the Gas Regulation” means Regulation (EC) No 715/2009 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 (EC) No 1775/2005.
18
- (1) Section 8K (monitoring and review of certification) is amended as follows.
- (2) In subsection (2)—
- (a) omit “on or after 3 March 2013,”;
- (b) for “third country” substitute “ country outside the United Kingdom ”;
- (c) in paragraph (a), omit “and the European Commission”;
- (d) in paragraph (b), omit “or any other EEA state”.
- (3) Omit subsections (3) and (4).
- (4) In subsection (5), omit “also”.
- (5) In subsection (10), omit “(4),”.
19
- (1) Section 8M (report as to any connection of certified person with a country outside the European Economic Area) is amended as follows.
- (2) In the heading, for “outside the European Economic Area” substitute “ outside the United Kingdom ”.
- (3) In subsection (2), omit “or any other EEA state”.
- (4) In subsection (5)(b), omit “third”.
20
- (1) Notwithstanding the amendments of sections 8K and 8M of the Gas Act 1986 made by regulations 18 and 19, if and for so long as the condition in paragraph (2) is satisfied in relation to the person—
- (a) the Gas and Electricity Markets Authority is not required to notify the Secretary of State under section 8K(2) about a person from a country outside the United Kingdom who has taken control of a certified person before IP completion day, and
- (b) the Secretary of State is not required to prepare a report under section 8M in relation to the certified person.
- (2) The condition is that the person was a person from an EEA state at the time of taking control and has continued to be such a person.
21
- (1) Section 8N (continuation or withdrawal of certification) is amended as set out in paragraphs (2) to (9).
- (2) In subsection (1)—
- (a) for “8K(3) or (5)” substitute “ 8K(5) ”;
- (b) for “8K(4) or (6)” substitute “ 8K(6) ”;
- (c) in paragraph (a)—
- (i) omit “preliminary”;
- (ii) for “that the certification should be continued” substitute “ to continue the certification ”;
- (d) in paragraph (b)—
- (i) omit “preliminary”;
- (ii) for “that the certification should be withdrawn” substitute “ to withdraw the certification ”.
- (3) In subsection (2)—
- (a) omit “preliminary”;
- (b) for “that the certification should be continued” substitute “ to continue the certification ”.
- (4) In subsection (3)—
- (a) in paragraph (a)—
- (i) omit “preliminary”;
- (ii) for “that the certification should be continued” substitute “ to continue the certification ”;
- (b) in paragraph (b)—
- (i) omit “preliminary”;
- (ii) for “that the certification should be withdrawn” substitute “ to withdraw the certification ”.
- (5) In subsection (4)—
- (a) omit “preliminary”;
- (b) for “that the certification should be continued” substitute “ to continue the certification ”.
- (6) In subsection (5)—
- (a) omit “preliminary”;
- (b) omit paragraph (b) and the “and” before it.
- (7) Omit subsections (6) to (9).
- (8) After subsection (9) insert—
(9A) The Authority must publish its decision to continue a certification, or to withdraw a certification, together with the reasons for it, in such manner as it considers appropriate.
- (9) In subsection (10)—
- (a) in the words before paragraph (a), for “8G(9)(a) and (b)” substitute “ 8G(9)(b) ”;
- (b) in paragraph (a), for “8G(9)(a) and (b)” substitute “ 8G(9)(b) ”.
- (10) Where, immediately before IP completion day, the Gas and Electricity Markets Authority has made a preliminary decision under section 8N of the Gas Act 1986 on a review under section 8K(5) or (8), but not a final decision under Article 3 of Regulation (EC) No 715/2009 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 (EC) No 1775/2005, the Authority's preliminary decision is to be treated on and after IP completion day as if it were a final decision under Article 3 made immediately before IP completion day.
- (11) If a preliminary decision of the Gas and Electricity Markets Authority is treated as a final decision to continue a certification, or to withdraw a certification, because of paragraph (10), the Authority must publish, in such manner as it considers appropriate, a document setting out that decision and the reasons for it.
22
In section 8Q (interpretation of sections 8C to 8Q), in subsection (1)—
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