Explanatory note

(This note is not part of the Order)

Section 6A of the Gas Act 1986 provides for the granting by order of exemptions from the prohibition contained in section 5(1)(c) of the Gas Act 1986 on arranging with a licensed gas transporter for gas to be introduced into, conveyed by means of or taken out of a pipe-line system operated by that transporter.

Article 3 exempts any gas transporter who operates the National Transmission System (NTS) or a regional distribution network (DN) in relation to arrangements with another such transporter for gas to be taken out of the NTS or introduced into or taken out of a DN at certain connection points. The connection points are —

(a)

any entry and offtake point on a DN where the DN is connected to another DN;

(b)

any entry point on a DN operated by a gas transporter where an LNG storage facility operated by another gas transporter is connected to that DN;

(c)

any offtake point on the NTS or entry point on a DN where a DN is connected to the NTS;

(d)

any offtake point on the NTS where gas is taken off and then conveyed via interconnectors to a pipe-line system operated by a DN; and

(e)

any offtake point on the NTS where an operator of a DN arranges for gas to be taken off for introduction into an LNG storage facility.

The exemption is subject to the condition set out in article 4 whereby the Gas and Electricity Markets Authority may direct an exempted gas transporter to provide certain information to it.

This Order applies to Great Britain.

A regulatory impact assessment is available and can be obtained from the Energy Markets Unit, Department of Trade and Industry, 1 Victoria Street, London SW1H 0ET. Copies have been placed in the libraries of both Houses of Parliament.