Paragraph 16 Occupation of premises

(1)

Sub-paragraph (2) applies where—

(a)

A has an unconsumed supply; and

(b)

that unconsumed supply is consumed by a person (“B”) in respect of premises which B occupies with the permission of A.

(2)

Subject to sub-paragraph (3), paragraphs 14(3) and 15(3) do not apply to an unconsumed supply to which sub-paragraph (1) applies.

(3)

Sub-paragraph (2) does not apply where—

(a)

B is a Northern Ireland Department which occupies premises with the permission of A, and A is another Northern Ireland Department; or

(b)

B has entered into a construction lease with A in respect of the premises described in paragraph (1)(b).

(4)

A “construction lease” is a lease entered into between A and B for a minimum period of 30 years where—

(a)

B covenants—

(i)

to obtain all necessary consents and approvals and to erect fencing or erect a building on the premises within a period of not more than 2 years from the lease commencement date;

(ii)

to install all necessary gas, electricity and water supplies to the premises to comply with statutory requirements within a period of not more than 2 years from the lease commencement date; and

(iii)

if required by A, to remove any buildings or works constructed by B on the premises at termination of the lease; and

(b)

A covenants to compensate B for any improvements made to the premises by B during the period of the lease.