# Commission Regulation (EU) 2017/460 of 16 March 2017 establishing a network code on harmonised transmission tariff structures for gas (Text with EEA relevance), Article 37: Power to grant derogations

Extent: E+W+S+N.I.

1. The national regulatory authority may, at the request of an entity which operates an interconnector that has benefited from an exemption from Article 41(6), (8) and (10) of Directive 2009/73/EC in accordance with Article 36 of that Directive as these Articles have effect in EU law, or a similar exemption, ... grant such entity a derogation from the application of one or more Articles of this Regulation in accordance with paragraphs 2 to 6 of this Article where the application of those Articles to such entity would have one or several of the following negative consequences. It would:
(a) not facilitate efficient gas trade and competition;
(b) not provide incentives for investment for new capacity or to maintain existing levels of capacity;
(c) unreasonably distort cross-border trade;
(d) distort competition with other infrastructure operators that offer services of a similar nature to those of the interconnector;
(e) not be implementable when taking into account the specific nature of interconnectors.
2. The entity requesting a derogation under paragraph 1 shall include in its request a detailed reasoning, with all supporting documents, including, where appropriate, a cost-benefit analysis, demonstrating that one or more of the conditions in paragraph 1(a) to (e) are complied with.
3. The national regulatory authority must endeavour to assess the request for a derogation jointly with any non-UK regulatory authorities whose approval is required and deal with the non-UK regulatory authorities in close cooperation. Where the national regulatory authority grants a derogation, the national regulatory authority must specify its duration in its decision.
4. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
5. The national regulatory authority may revoke a derogation if the circumstances or underlying reasons, or both, no longer apply. The national regulatory authority must endeavour to cooperate with any non-UK regulatory authorities whose approval is required in reaching a decision on whether to revoke a derogation.
(6.) If the approval of both national regulatory authorities is required, they must cooperate with each other, and references in paragraphs 1, 3 and 5 to “the national regulatory authority” are to be read as references to “the national regulatory authorities.

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Source: https://www.legislation.gov.uk/eur/2017/460/article/37 (the official version)
Page: https://openlegislation.uk/eu-regulation-2017-460/article-37
Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.