Explanatory note

(This note is not part of the Regulations.)

These Regulations inter alia amend the Gas (Northern Ireland) Order 1996 (“the 1996 Order”) to ensure that it conforms with the requirements of Directive 98/30/EC of the European Parliament and of the Council concerning common rules for the internal market in natural gas (O.J. No L204, 21/07/1998, p 0001-0012) (“the Directive”).

Part I contains certain introductory provisions.

Part II amends the 1996 Order, as follows –

(a)

Regulation 4 inserts a definition of the Directive in Part II of the 1996 Order;

(b)

Regulations 5 and 6 amend the Order to ensure consistency with the Directive as regards exclusive rights to carry on certain activities conferred by licence by:

(i)

inserting a new Article 9(1A) so as to automatically limit any exclusivity granted to a period of ten years; but

(ii)

inserting a new Article 9(7) and (7A) which allows for an extension of exclusivity by consent beyond the period of ten years where it is requisite or expedient to do so in the interests of the efficient operation of the activities in question;

(iii)

inserting a new Article 9A which allows for the grant of a licence authorising supply to certain customers through a direct line even though such supply would otherwise contravene the exclusive rights given to another licence holder;

(c)

Regulation 7 inserts a new Article 10A requiring the inclusion of appropriate conditions in licences to ensure that the authorised activities comply with the requirements of the Directive;

(d)

Regulation 8 inserts a new Article 18A which provides that no condition of a licence shall be modified in a manner inconsistent with the Directive;

(e)

Regulation 9 inserts a new Article 38A which provides that consents or directions granted under Articles 35 to 38 are only granted where the specified criteria are met, and provides procedural safeguards for the applicant who is refused such a consent or direction.

Part III provides for the modification of licences already issued under the 1996 Order to ensure that they comply with the provisions of the Directive (Regulation 10). It also requires the Department and the Director to comply with their general duties as set out in Article 5 of the 1996 Order in exercising their functions under that Part of the Regulations (Regulation 11).