SCHEDULE 1
Regulation 3
Amendments to the Security of Gas Supply Regulation
1.—(1) Article 1 is amended as follows.
(2) In the first sentence—
(a)
(a) for “the Union” substitute “the United Kingdom”;
(b)
(b) for “internal market in natural gas (‘gas’)” substitute “market in natural gas (‘gas’) in the United Kingdom”;
(c)
(c) omit “, including solidarity measure of a last resort,”; and
(d)
(d) for “the Member States and the Union” substitute “the Secretary of State, the Northern Ireland department and the regulatory authority”.
(3) In the second sentence—
(a)
(a) omit “, in a spirit of solidarity,”; and
(b)
(b) omit “at national, regional and Union level”.
2.—(1) Article 2 is amended as follows.
(2) Renumber the existing text of Article 2 as paragraph 1.
(3) In paragraph 1—
(a)
(a) before point (1) insert—
“A1 ‘the Gas Regulation’ means Regulation (EC) No 715/2009of the European Parliament and of the Council on conditions for access to natural gas transmission networks3;
A2 ‘the Northern Ireland department’ means the Department for the Economy;”;
(b)
(b) omit point (2);
(c)
(c) in point (5) (definition of “protected customer”)—
(i) for “Member State concerned” substitute “Secretary of State”;
(ii) for “that Member State” substitute “the United Kingdom”;
(d)
(d) omit point (6);
(e)
(e) in point (7) (definition of “competent authority”)—
(i) after “‘competent authority’” insert “, in relation to a member State,”;
(ii) for “Member” substitute “member”;
(iii) at the end insert “as it applies in EU law”;
(f)
(f) in point (8) (definition of “national regulatory authority”), after “‘national regulatory authority’” insert “, in relation to a member State,”;
(g)
(g) after point (8) insert—
“8A ‘regulatory authority’—
(a) in relation to Great Britain, means the Gas and Electricity Markets Authority; and
(b) in relation to Northern Ireland, means the Northern Ireland Authority for Utility Regulation.”
(h)
(h) omit point (9); and
(i)
(i) omit points (11) to (26).
(4) After paragraph 1 insert—
“2. For the purposes of this Regulation, the following expressions have the meanings given in the Gas Regulation—
‘ancillary services’;
‘customer’;
‘distribution’;
‘distribution system operator’;
‘firm capacity’;
‘interconnector’;
‘interruptible capacity’;
‘LNG facility’;
‘LNG facility capacity’;
‘natural gas undertaking’;
‘storage capacity’;
‘system’;
‘system user’;
‘technical capacity’;
‘transmission’;
‘transmission system operator’.”.
3.—(1) Article 3 is amended as follows.
(2) In paragraph 1, for “, Member States, in particular through their competent authorities, and the Commission,” substitute “, the Secretary of State, the Northern Ireland department and the regulatory authority”.
(3) In paragraph 2—
(a)
(a) omit the first two sentences;
(b)
(b) in the third sentence—
(i) for “Member States may allow the competent authority to” substitute “The Secretary of State may”;
(ii) after “other bodies” insert “, including the Northern Ireland department”;
(c)
(c) in the fourth sentence—
(i) for “competent authorities delegate” substitute “the Secretary of State delegates”;
(ii) for “they” substitute “the Secretary of State”; and
(d)
(d) in the fifth sentence, for “competent authority” substitute “Secretary of State”.
(4) Omit paragraph 3.
(5) In paragraph 4—
(a)
(a) for “the competent authority” substitute “the Secretary of State”;
(b)
(b) for “a three level” substitute “an”;
(c)
(c) omit “, first,”; and
(d)
(d) omit “, second, Member States at national or regional level, and third, the Union”.
(6) Omit paragraphs 5 to 7.
4. Omit Article 4.
5.—(1) Article 5 is amended as follows.
(2) In paragraph 1—
(a)
(a) in the first subparagraph, for “Each Member State or, where a Member State so provides, its competent authority” substitute “The Secretary of State”;
(b)
(b) in the second subparagraph, for the words from “the obligations of” to the end, substitute “the relevant obligations of transmission system operators”;
(c)
(c) at the end, insert as a new subparagraph—
“For the purposes of the preceding subparagraph, a “relevant obligation” is—
(a)
(a) an obligation laid down in the Gas Regulation;
(b)
(b) an obligation imposed before exit day for the purpose of implementing Directive 2009/73/EC(including such an obligation as modified on or after exit day); or
(c)
(c) an obligation imposed on or after exit day which is the same as or similar to an obligation which could have been imposed before exit day for the purpose of implementing Directive 2009/73/EC.”.
(3) In paragraph 2, for “competent authority” substitute “Secretary of State”.
(4) Omit paragraph 3.
(5) In paragraph 4—
(a)
(a) in the words before subparagraph (a)—
(i) for “The transmission system operators shall” substitute “The transmission system operators must endeavour to”;
(ii) for “on all interconnections between Member States”, substitute “on all interconnections between the United Kingdom and member States”;
(b)
(b) in subparagraph (b), omit “other Member States and with the Commission”; and
(c)
(c) in the words after subparagraph (b), in the second sentence, for “The Commission” substitute “The Secretary of State”.
(6) In paragraph 5, in the words before subparagraph (a), omit from “prepared” to “and shall be”.
(7) In paragraph 6—
(a)
(a) for “National regulatory authorities” substitute “The regulatory authority”; and
(b)
(b) for the words from “the tariffs” to the end, substitute “the tariffs of transmission system operators or the methodologies used to calculate them”.
(8) For paragraph 7, substitute—
“7. In so far as an investment for enabling or enhancing bi-directional capacity is not required by the market but is considered to be necessary for security of gas supply purposes and where that investment incurs costs in the United Kingdom and a member State or in the United Kingdom for the benefit of a member State, the regulatory authority must endeavour to take a coordinated decision on cost allocation with the national regulatory authorities of the member States concerned before any investment decision is taken.
The cost allocation must take into account the proportion of the benefits of the infrastructure investments for the increase of the security of gas supply in the United Kingdom as well as investments already made in the infrastructure in question.
The cost allocation must not unduly distort competition and the effective functioning of the market in the United Kingdom and must seek to avoid any undue distortive effect on the market.”.
(9) In paragraph 8—
(a)
(a) for each occurrence of “competent authority” substitute “Secretary of State”; and
(b)
(b) in the second subparagraph, omit from “and the single largest gas infrastructure” to the end.
(10) Omit paragraph 9.
6.—(1) Article 6 is amended as follows.
(2) In paragraph 1—
(a)
(a) for each occurrence of “competent authority” substitute “Secretary of State”;
(b)
(b) in the first subparagraph, in the words before point (a), for “the natural gas undertakings that it identifies, to take measures to ensure the gas supply to the protected customers of the Member State” substitute “natural gas undertakings to take measures to ensure the gas supply to protected...
