# The Gas (Internal Markets) Regulations 2020, Note: Explanatory note

Extent: E+W+S

(This note is not part of the Regulations)
These Regulations are made under section 2(2) of the European Communities Act 1972. They make amendments to the gas regulatory regime in Great Britain.
Regulations 2 to 5 amend the provisions of the Gas Act 1986 (“the 1986 Act”) to implement Directive 2019/692/EC of the European Parliament and of the Council concerning common rules for the internal market in gas (OJ No L 117, 03.05.2019, p.1) (“the 2019 Amending Directive”) in respect of the application of EU market rules to gas transmission lines to and from third countries.
Regulation 2 amends section 4D of the 1986 Act. The effect of the amendment is that, in carrying out its functions, the Gas and Electricity Markets Authority (“the Authority”) must wherever it thinks fit consult with relevant authorities in third countries in order to perform its role under Articles 36, 41, and 42 of the 2019 Amending Directive.
Regulation 3 inserts a new section 4E of the 1986 Act. The effect of the insertion is to specify certain requirements on the Secretary of State to notify and seek the consent of the European Commission in respect of matters relating to negotiations between Great Britain and a third country concerning the operation of a gas pipeline with that third country.
Regulation 4 amends the requirements in section 19A of the 1986 Act that the Authority must be satisfied are met in order that an application for an exemption in respect of a storage facility may be granted. The effect of the amendment is that the Authority must satisfied that the exemption will not be detrimental to competition in “relevant markets” (which are now defined as those gas markets in Member States likely to be affected by the storage facility) or security of supply.
Regulation 5 makes a corresponding amendment to section 19C of the 1986 Act which changes, in the same way, the requirements that the Authority must be satisfied are met in order that an application for an exemption in respect of a liquefied natural gas facility may be granted.
Regulation 9 makes a corresponding amendment to the standard conditions of a gas interconnector licence granted under section 7ZA of the 1986 Act which changes, in the same way, the requirements that the Authority must be satisfied are met in order that an application for an exemption in respect of an interconnector may be granted.
Regulations 6, 7 and 8 make consequential amendments to definitions in section 48 of the 1986 Act, section 106 of the Utilities Act 2000 and section 19A of the Consumers, Estate Agents and Redress Act 2007.
Regulations 10 and 11 revoke Regulations 2 to 5 and 9 with effect from the instant immediately before the point immediately before IP completion day, as that term is defined in the EU (Withdrawal Agreement) Act 2020.
A full impact assessment has not been produced for this instrument as no, or no significant, impact on private, voluntary or public sectors is foreseen.
Transposition notes setting out how the main elements of the 2019 Amending Directive are transposed into the law of Great Britain are published alongside the 2020 Regulations on legislation.gov.uk.

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Source: https://www.legislation.gov.uk/uksi/2020/625/note (the official version)
Page: https://openlegislation.uk/gas-internal-markets-regulations-2020/note
Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.