Paragraph 16 F1

In this Schedule—

• “charging statement” (in relation to a distribution exemption holder who proposes to impose a use of system charge) is to be construed in accordance with paragraph 5(2)(b);

• “closed distribution system” means a system classified as a closed distribution system by the Authority under paragraph 12(2);

• “customer” means a person who purchases gas for the person’s own consumption;

• “distribution system” means a pipe-line system by means of which the person who operates or has control of the system conveys gas in circumstances such that—

  1. (a)

     that person is thereby carrying on an activity such as is mentioned in section 5(1)(a); and

  2. (b)

     the whole or part of that activity is also an activity of distribution within the meaning given by Article 2(5) of the Gas Directive;

• “expression of interest” has the meaning given by paragraph 1(2);

• “household customer” means a customer who purchases gas for consumption by the customer’s own household;

• “pipe-line system” includes the pipes and any associated apparatus comprised in that system;

• “system user” in relation to a distribution system, means—

  1. (a)

     a person supplying gas that is being conveyed by means of that distribution system; or

  2. (b)

     a customer who owns or occupies premises that are connected to that distribution system;

• “third party supplier”, in relation to a distribution exemption holder, means any authorised supplier that is not related to the distribution exemption holder;

• “use of system charge”, in relation to a distribution exemption holder, means a charge which—

  1. (a)

     is levied by the distribution exemption holder on a third party supplier identified in an expression of interest that has been served on the distribution exemption holder; and

  2. (b)

     is for use of the exempt distribution system to which the expression of interest relates.

For the purposes of this Schedule, a person (“A”) is related to another person (“B”) where A is—

For the purposes of sub-paragraph (2) “holding company” and “subsidiary” are to be construed in accordance with section 1159 of the Companies Act 2006.