S.I. No. 377/2007 - European Communities (Internal Market in Natural Gas) (BGÉ) (Amendment) Regulations 2007

1. (1) These Regulations may be cited as the European Communities (Internal Market in Natural Gas) (BGÉ) (Amendment) Regulations 2007.

(2) These Regulations come into operation on the day after the day on which notice of their making is published in the

Iris Oifigiúil

.

“Principal Regulations” defined

2. In these Regulations, “Principal Regulations” means the European Communities (Internal Market in Natural Gas) (BGÉ) Regulations 2005 (S.I. No. 760 of 2005).

Substitution of Regulation 7 of Principal Regulations

2A. If an officer or servant of BGÉ whose employment is transferred in accordance with paragraph 1 of this Schedule was, immediately before the transfer, a member of a pension scheme established for officers or servants of BGÉ, the officer or servant is entitled to continue to be amember of the scheme in accordance with its terms as in force from time to time.”;

(c) in paragraph 3(3), by substituting “paragraph” for “section”.

GIVEN under my Official Seal,

29 June 2007.

EAMON RYAN

Minister for Communications,

Energy and Natural Resources.

EXPLANATORY NOTE

(This note is not a part of the Instrument and does not purport to be a legal interpretation)

These Regulations amend the European Communities (Internal Market in Natural Gas)(BGÉ) Regulations 2005 (S.I. No. 760 of 2005) so as to give further legal effect to Directive 2003/55/EC of the European Parliament and of the Council of the 26 June 2003 concerning common rules for the internal market in natural gas by further clarifying the arrangements for unbundling the transmission systems and distribution systems currently operated by Bord Gáis Éireann.

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OJ L176/57 of 15 July 2003

3. The responsibility for the operation of those assets of BGÉ designated in the transfer plan in accordance with Regulation 9(3)(b), but not their ownership is, by virtue of this paragraph, vested in the subsidiary company.”.

Amendment of Schedule 2 to Principal Regulations

4. The Principal Regulations are amended by substituting the following Regulations for Regulation 8

“BGÉ and subsidiary company to enter into agreements

5. Regulation 9 of the Principal Regulations is amended as follows

(a) by substituting the following paragraphs for paragraphs (1) and (2)

“(1) As soon as practicable after the registration of the subsidiary company under the Companies Acts, BGÉ shall prepare and submit to the Minister for approval a plan for the transfer to the subsidiary company of-

(a) such assets, rights and liabilities of BGÉ specified in the plan, and

(b) such employees of BGÉ designated in the plan,

as are necessary to enable the subsidiary company to carry out its responsibilities for the operation of the BGÉ transportation system as provided in the agreement entered into, or taken to have been entered into, under Regulation 8.

(2) If the Minister considers that the plan-

(a) includes information other than that specified in paragraph (1), or

(b) is not adequate to enable the subsidiary company to carry out its responsibilities,

the Minister shall, following consultation with the CER, specify the changes that need to be made before the Minister will approve the plan. On being notified of those changes, BGÉ shall revise the plan to give effect to those changes.”;

(b) in paragraph (3)(b), by substituting “that part or those parts” for “those part or parts”.

Substitution of Regulation 11 of Principal Regulations

6. The Principal Regulations are amended by substituting the following Regulation for Regulation 11

“Transfer to subsidiary company of operation of transportation system and continuing functions of BGÉ

7. Regulation 19 of the Principal Regulations is amended by substituting the following paragraphs for paragraph (1)

“(1) If, after a reasonable time, BGÉ and the subsidiary company fail to enter into an agreement or agreements in accordance with Regulation 8(1) or, after entering into such an agreement or agreements, are in dispute with respect to—

(a) the operation of Part 2 (including in particular the effect or implementation of the agreement or agreements), or

(b) the transfer to the subsidiary company of any assets, rights or liabilities,

either BGÉ or the subsidiary company may request CER to make a determination with respect to the matters referred to in Regulation 8(1), or the matters in dispute. Such a request must be in writing.

(1A) For the purposes of these Regulations, a determination made by the CER under paragraph (1) with respect to the matters referred to in Regulation 8(1) is taken to be an agreement entered into under Regulation 8.”.

Amendment of Regulation 23 of Principal Regulations (Amendment of Gas Act 1976)

8. Regulation 23 of the Principal Regulations is amended by substituting the following subparagraph for subparagraph (b)

“(b) by inserting the following subsection after subsection (3)

‘(3A) As from the transfer date fixed under the European Communities (Internal Market in Natural Gas)(BGÉ) Regulations 2005—

(a) the subsidiary company established in accordance with those Regulations has such of the functions of the Board under this or any other Act as are necessary to enable it to carry out its responsibilities under those Regulations with respect to operating the BGÉ transportation system, and

(b) the Board continues to have such functions under this or any other Act as are necessary to enable it to carry out its responsibilities under those Regulations and as owner of the BGÉ transportation system.’.”.

Amendment of Regulation 24 of Principal Regulations (Amendment of Gas (Interim)(Regulation) Act 2002)

8A. (1) BGÉ and the subsidiary company may, from time to time, and subject to the approval of the CER, vary an agreement entered into, or taken to have been entered into, under Regulation 8.

(2) A variation of an agreement entered into, or taken to have been entered into, under Regulation 8 may provide for the variation, or any particular provisions of the variation, to take effect from a specified date (which may be the transfer date). The date so specified is subject to the approval of the CER, which may substitute another date if it considers it appropriate to do so.

(3) If either BGÉ or the subsidiary company wishes to vary an agreement entered into, or taken to have been entered into, under Regulation 8, the other of them shall enter into negotiations in good faith with a view to concluding such a variation.

(4) In this Regulation, ‘vary’, in relation to an agreement, includes replacing the agreement with another agreement that deals with the same matters.”.

Amendment of Regulation 9 of Principal Regulations (BGÉ to prepare plan for transfer of assets and staff to subsidiary company)

9. Regulation 24 of the Principal Regulations is amended as follows

(a) in paragraph (1)(a), by substituting the following subsections for subsections (1B) and (1C)

“(1B) For the purposes of Article 7 of the Directive—

(a) the holder of a licence for the operation of a transmission system is designated as a transmission system operator, and

(b) the holder of a licence for the operation of a natural gas storage facility is designated as a storage facility operator, and

(c) the holder of a licence for the operation of a LNG facility is designated as a LNG facility operator.

(1C) For the purposes of Article 11 of the Directive, the holder of a licence for the operation of a distribution system is designated as a distribution system operator.”;

(b) in paragraph (1)(c), by substituting “subsection (4)(a)” for “subsection (4)(b)”;

(c) in paragraph (1)(e), by substituting “of subsection (13)” for “of subsection (1)”.

Amendment of Schedule 1 to Principal Regulations

10. Schedule 1 to the Principal Regulations is amended as follows

(a) by substituting the following subparagraph for subparagraph (1) of paragraph 2

“(1) The assets of BGÉ referred to in Regulation 9(3)(a) become the assets of the subsidiary company without the need for any conveyance, transfer, assignment or assurance.”;

(b) by substituting the following for paragraph 3

“Transfer of responsibility for the operation of certain assets of BGÉ to subsidiary company

11. Schedule 2 to the Principal Regulations is amended as follows

(a) in paragraph 2(1), by substituting “paragraph 1 of this Schedule” for “paragraph (1)”;

(b) by inserting the following paragraph after paragraph 2

“Special pension arrangements for transferred officers and servants of BGÉ

STATUTORY INSTRUMENTS

S.I. No 377 of 2007

REGULATIONS

entitled

EUROPEAN COMMUNITIES (INTERNAL MARKET IN NATURAL GAS) (BGÉ) (AMENDMENT) REGULATIONS 2007

S.I No 377 of 2007

European Communities (Internal Market in Natural Gas) (BGÉ) (Amendment) Regulations 2007

I, Eamon Ryan, Minister for Communications, Energy and Natural Resources, in exercise of the powers conferred on me by section 3 of the European Communities Act 1972 (No. 27 of 1972), as amended by the European Communities (Amendment) Act 1993 (No. 25 of 1993), and for the purpose of giving further effect to Directive 2003/55/EC of the European Parliament and of the Council of 26 June 2003

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, hereby make the following Regulations

Citation and commencement