Natural Gas Market Regulations, 2011

L.N. 167 of 2011

MALTA RESOURCES AUTHORITY ACT

(CAP. 423)

Natural Gas Market Regulations, 2011

IN exercise of the powers conferred by sub-article (1) of

article 28 of the Malta Resources Authority Act, the Minister for

Resources and Rural Affairs, after consultation with the Malta

Resources Authority, has made the following regulations:-

(1) The title of these Regulations is the Natural Gas

Market Regulations 2011.

(2) These regulations transpose Directive 73 of 2009

and establish common rules for the distribution, supply and storage

of natural gas. These regulations also lay down the rules relating to

the organization and functioning of the natural gas sector, access to

the market, the criteria and procedures applicable to the granting

of authorizations for distribution, supply and storage of natural gas

and the operation of systems.

(3)

The rules established by these regulations

for natural gas, including LNG, shall also apply in a non-

discriminatory way to biogas and gas from biomass or other types

of gas in so far as such gases can technically and safely be injected

into, and transported through, the natural gas system.

Regulation 7 and 29

MEASURES ON CLIENT PROTECTION

1. Without prejudice to Community rules on consumer protection, in particular

Directive 97/7/EC of the European Parliament and of the Council of 20 May

1997 on the protection of consumers in respect of distance contracts and Council

Directive 93/13/EEC of 5 April 1993 on unfair terms in consumer contracts , the

measures referred to in regulation 7 are to ensure that customers

(a) have a right to a contract with their gas service provider that

specifies

the identity and address of the supplier,

the services provided, the service quality levels offered, as well as

the time for the initial connection,

the types of maintenance service offered,

the means by which up-to-date information on all applicable tariffs

and maintenance charges may be obtained,

the duration of the contract, the conditions for renewal and

termination of services and of the contract, and whether withdrawal from

the contract without charge is permitted,

any compensation and the refund arrangements which apply if

contracted service quality levels are not met including inaccurate and

delayed billing,

the method of initiating procedures for settlement of disputes in

accordance with point (f); and,

information relating to consumer rights, including on the complaint

handling and all of the information referred to in this point, clearly

communicated through billing or the natural gas undertaking’s web site,

Conditions shall be fair and well-known in advance. In any event, that

information should be provided prior to the conclusion or confirmation of the

contract. Where contracts are concluded through intermediaries, the information

relating to the matters set out in this point shall also be provided prior to the

conclusion of the contract;

(b) are given adequate notice of any intention to modify contractual

conditions and are informed about their right of withdrawal when the notice is

given. Service providers shall notify their subscribers directly of any increase

in charges, at an appropriate time no later than one normal billing period after

the increase comes into effect in a transparent and comprehensible manner.

Customers shall be free to withdraw from contracts if they do not accept the

new conditions notified to them by their gas service provider;

(c) receive transparent information on applicable prices and tariffs and on

standard terms and conditions, in respect of access to and use of gas services;

(d) are offered a wide choice of payment methods, which do not unduly

discriminate between customers. Prepayment systems shall be fair and

adequately reflect likely consumption. Any difference in terms and conditions

shall reflect the costs to the supplier of the different payment systems. General

terms and conditions shall be fair and transparent. They shall be given in

clear and comprehensible language and shall not include non-contractual

barriers to the exercise of customers’ rights, for example excessive contractual

documentation. Customers shall be protected against unfair or misleading

selling methods;

(e) are not charged for changing supplier;

(f) benefit from transparent, simple and inexpensive procedures for

dealing with their complaints. In particular, all consumers shall have the right

to a good standard of service and complaint handling by their gas service

provider. Such out-of-court dispute settlements procedures shall enable

disputes to be settled fairly and promptly, preferably within three months,

with provision, where warranted, for a system of reimbursement and, or

compensation. They should, wherever possible, be in line with the principles

set out in Commission Recommendation 98/257/EC of 30 March 1998 on the

principles applicable to the bodies responsible for out-of-court settlement of

consumer disputes.

(g) connected to the gas system are informed about their rights to

be supplied, under the national legislation applicable, with natural gas of a

specified quality at reasonable prices;

(h) have at their disposal their consumption data, and shall be able to, by

explicit agreement and free of charge, give any registered supply undertaking

access to its metering data. The party responsible for data management shall

be obliged to give those data to the undertaking. The Authority shall define

a format for the data and a procedure for suppliers and consumers to have

access to the data. No additional costs shall be charged to the consumer for

that service;(i) are properly informed of actual gas consumption and costs

frequently enough to enable them to regulate their own gas consumption.

That information shall be given by using a sufficient time frame, which takes

account of the capability of customer’s metering equipment. Due account shall

be taken of the cost-efficiency of such measures. No additional costs shall be

charged to the consumer for that service;

(j) receive a final closure account following any change of natural gas

supplier no later than six weeks after the change of supplier has taken place.

€3.24

In these regulations, unless the context otherwise

requires

“the Act” means the Malta Resources Authority Act;

“Agency” means the Agency for the Co-operation of

Energy Regulators;

“Authority” means the Malta Resources Authority

established by article 3 of the Act;

“ancillary services” means all services necessary for

access to and the operation of distribution networks, LNG

facilities, and, or storage facilities, including load balancing,

blending and injection of inert gases;

“the Commission” means the European Commission as

established by the Treaty on the European Union as amended

by subsequent Treaties;

“the Community” means the European Community as

established by the Treaty on the European Union as amended

by subsequent Treaties;

“control” means any rights, contracts or any other

means which, either separately or in combination and having

regard to the considerations of fact or law involved, confer the

possibility of exercising decisive influence on an undertaking,

in particular by

(a) ownership or the right to use all or part of the

assets of an undertaking;

(b) rights or contracts which confer decisive

influence on the composition, voting or decisions of the

organs of an undertaking;

“customer” means a person or a natural gas undertaking

which purchases natural gas in bulk for resale purposes or

final customer;;

“direct line” means a natural gas pipeline complementary

to the interconnected system;

“distribution” means the transport of natural gas through

local or regional pipeline networks with a view to its delivery

to customers, but not including supply;

“distribution system operator” means a person who

carries out the function of distribution and is responsible for

operating, ensuring the maintenance of, and, if necessary,

developing the distribution system in a given area and,

where applicable, its interconnections with other systems,

and for ensuring the long-term ability of the system to meet

reasonable demands for the distribution of gas;

“eligible customer” means a customer who is free to

purchase gas from the supplier or retailer of his choice;

“emergent market” means a Member State in which

the first commercial supply of its first long-term natural gas

supply contract was made not more than 10 years earlier;

“final customer” means a person purchasing natural gas

for his own use or consumption and not for wholesale or retail

purposes;

“gas derivative” means a financial instrument specified

in points 5, 6 or 7 of Section C of Annex I to Directive

2004/39/EC of the European Parliament and of the Council of

21 April 2004 on markets in financial instruments where that

instrument relates to natural gas;

“gas supply contract” means a contract for the supply of

natural gas, but does not include a gas derivative;

“horizontally integrated undertaking” means an

undertaking performing at least one of the functions of

production, distribution, supply or storage of natural gas, and

a non-gas activity;

“household customer” means a customer purchasing

natural gas for his own household consumption;

“integrated natural gas undertaking” means a vertically

or horizontally integrated undertaking;

“interconnected system” means a number of systems

which are linked with each other;

“interconnector” means a line which crosses or spans

a border between Member States for the sole purpose of

connecting the national systems of those Member States;

“line pack” means the storage of gas by compression in

gas distribution systems;

“LNG facility” means a terminal which is used for the

liquefaction of natural gas or the importation, offloading, and

re-gasification of LNG, and includes ancillary services and

temporary storage necessary for the re-gasification process

but does not include any part of LNG terminals used for

storage;

“LNG system operator” means a person who carries out

the function of liquefaction of natural gas, or the importation,

offloading, and re-gasification of LNG and is responsible for

operating a LNG facility;

“long-term planning” means the planning of supply and

transport capacity of natural gas undertakings on a long-term

basis with a view to meeting the demand for natural gas of

the system, diversification of sources and securing supplies to

customers;

“Member State” means a member state of the European

Union;

“the Minister” means the Minister responsible for

resources;

“natural gas undertaking” means any person carrying

out at least one of the following functions: production,

transmission, distribution, supply, purchase or storage of

natural gas, including LNG, which is responsible for the

commercial, technical and, or maintenance tasks related to

those functions, but shall not include final customers;

“new infrastructure” means an infrastructure which has

not been completed by 4th of August, 2003;

“non-household customer” means a customer purchasing

natural gas which is not for his own household use or

consumption;

“person” means any natural or legal person;

“production operations” means any operation or activity,

excluding storage, relating to the production of natural gas

including LNG, carried out by a LNG system operator or a

natural gas undertaking in a LNG facility or terminal but

outside the part of LNG facilities used for storage;

“related undertaking” means affiliated undertakings,

within the meaning of Article 41 of the Seventh Council

Directive 83/349/EEC of 13 June 1983 based on Article 44(2)

(g) and or associated undertakings, within the meaning of

Article 33(1) of that Directive, and, or undertakings which

belong to the same shareholders;

“security” means both security of supply of natural gas

and technical safety;

“storage” means the stocking of natural gas including

LNG;

“storage facility’ means a facility used for the stocking

of natural gas and owned and, or operated by a natural gas

undertaking, including the part of LNG facilities used

for storage but excluding the portion used for production

operations;

“storage system operator” means a person who carries

out the function of storage and is responsible for operating a

storage facility;

“supply” means the sale or retail, including resale, of

natural gas including LNG, to customers;

“supply undertaking” means any person who carries out

the function of supply;

“system” means any distribution networks, LNG

facilities and, or storage facilities owned and, or operated by

a natural gas undertaking, including line pack and its facilities

supplying ancillary services and those of related undertakings

necessary for providing access to distribution and LNG;

“system user” means any person supplying to, or being

supplied by, the system;

“upstream pipeline network” means any pipeline or

network of pipelines operated and, or constructed as part of

an oil or gas production project, or used to convey natural

gas from one or more such projects to a processing plant or

terminal or final coastal landing terminal;

“vertically integrated undertaking” means a natural gas

undertaking or a group of natural gas undertakings where

the same person or the same persons are entitled, directly or

indirectly, to exercise control, and where the undertaking or

group of undertakings perform at least one of the functions of

distribution, LNG or storage, and at least one of the functions

of production or supply of natural gas;

“wholesale customer” means any person other than a

distribution system operator who purchases natural gas in bulk

for the purpose of resale inside or outside the system where such

person is established, not being for his own use or consumption.

(1) The following operations and activities shall require

a licence issued by the Authority and in accordance with such terms

and conditions as may be specified in the licence:-

(a) the carrying out of the functions of a storage system

operator;

(b) the carrying out of the functions of an LNG system

operator;

(c) carrying out of any of the functions of a distribution

system operator;

(d) operation of a direct line.

(2) Without prejudice to any other law, licences may

be granted or refused on the basis of the following criteria

(a) compliance by the applicant with all other relevant

permits and authorisations, however so described, including

those issued by any other public authority or Government

Department;

(b) the capability of the applicant to ensure safety

conditions, in the context of the licence being applied for;

(c) private and professional integrity of the applicant;

(d) protection of the health and safety of employees;

(e) protection of the environment;

(f) record of compliance with these regulations and

any other relevant laws by the person or entity with regard to

whom the decision shall be made;

(g) compliance with safety, health, security, hazardous

substances, environment, land use and planning requirements.

(3) An application for a new licence or for its

renewal under these regulations shall be

(a) in writing and in such form and shall contain

such information as the Authority may require;

(b) accompanied by such fees, bank guarantees

and insurance policies as the Authority may determine

and deem to be appropriate. All fees shall be payable on

application and any bank guarantees and, or insurance

policies shall be effective as from the date of the issue

of the licence and shall subsist throughout its duration.

Interests and penalties, as established by the Authority,

shall be payable in the event of default in the due

payment of fees

Provided that a licence granted under these

regulations shall not relieve the licensee from the requirement

of any other licence, permit or other authorisation, or from an

obligation arising from any other law.

(4) A licence granted under these regulations

may include such conditions as appear to the Authority to

be requisite or expedient, having regard to the duties of the

Authority.

(5) The Authority shall communicate to the

applicant in writing within a reasonable time, which shall not

be of more than six months from the date of receipt of a valid

application, any decision taken concerning an application for

a licence or an application for the renewal of a licence or any

valid reason impeding the Authority to reach such a decision.

The Authority may, at any time in the course of

the period for which a licence is valid, order its suspension,

revocation or cancellation where the Authority is satisfied that

(a) the holder of the licence has failed or is failing

to comply with any condition of the licence or with these

regulations; or

(b) the licensee does not possess all other

relevant licences, permits and authorisations however so

described that are required by any other public authority

or Government department; or

(c) the holder of the licence is contravening any

requirement imposed by law; or

(d) the holder of the licence fails to comply with any

directive given by the Authority; or

(e) any information submitted in the application for

a licence or the application for renewal of a licence and for

which the licence has been issued or renewed, as the case may

be, is determined to be false; or

(f) if the holder of the licence does not meet any

criteria in respect to one or more of the criteria referred to in

sub-regulation (2) of regulation 3 of these regulations

Provided that in exercising the powers for suspension,

revocation or cancellation of licences the Authority may take

into account the nature of the failure, or the fact that the holder

of the licence is taking the appropriate steps which the Authority

considers to be necessary in order to comply with the conditions

of the licence, these regulations or any other requirement that the

Authority may deem relevant.

(1) When the holder of a licence issued under these

regulations, decides either to suspend or terminate his licence, such

holder shall promptly notify the Authority in the form prescribed

by the Authority, to notify such a termination or suspension.

(2) Upon acknowledgment by the Authority to the

holder of a licence of the notification mentioned in sub-regulation

(1) hereof, the licence shall be considered to have ceased to

be in force and with immediate effect from the date of such

acknowledgment such holder shall be deemed to be unlicensed.

(3) Notwithstanding any notice for the termination or

suspension of a licence, the holder of the licence shall remain liable

for the payment of any fee due to the Authority.

(1) A licence issued by the Authority under these

regulations shall not be validly transferred inter vivos to any person

unless

(a) the transferor informs in writing the Authority in

such form and manner as the Authority shall prescribe;

(b) the Authority is satisfied that at least the same

criteria as listed in sub-regulation (2) of regulation 3 of these

regulations are complied with;

(c) the transfer is subject to the conditions prescribed

in the licence; and

(d) the Authority approves in writing the transfer of

the licence.

(2) A licence issued by the Authority under these

regulations shall not be validly transmitted causa mortis to any

person unless

(a) the transferor informs in writing the Authority in

such form and manner as the Authority shall prescribe;

(b) the Authority is satisfied that at least the same

criteria as listed in sub-regulation (2) of regulation 3 of these

regulations are complied with;

(c) the transfer is subject to the conditions prescribed

in the licence; and

(d) the Authority approves in writing the transfer of

the licence

Provided that a licence issued in terms of these

regulations shall be an indivisible right

Provided further that in the event that the Authority

approves the transfer of the licence as aforesaid, the transfer shall

have retrospective effect from the date of the death of the decujus.

(3) Where the licensee is a body corporate or any

other body of persons, a change in the control of the ownership

or management of that body shall be deemed to be equivalent to

the transfer of the licence, and shall be subject to the approval of

the Authority. For the purpose of this sub-regulation, a transfer in

the control of the ownership of a body corporate or other body of

persons shall be deemed to occur in any case where a transfer of

the capital, shares, stocks or other rights held in the body corporate

or other body of persons leads to a change in the person holding

the controlling interest therein.

(1) Customers connected to the gas network shall be

entitled to have their gas provided by a supplier, subject to the

supplier’s agreement, regardless of the Member State in which the

supplier is registered, as long as the supplier follows the applicable

trading and balancing rules and subject to security of supply

requirements.

(2)

The Authority shall ensure that

(a) where a customer, while respecting the contractual

conditions, wishes to change supplier, the change is effected

by the operator concerned within three weeks; and

(b) customers are entitled to receive all relevant

consumption data.

The Authority shall ensure that the rights referred

to in paragraphs (a) and (b) of this sub-regulation are granted to

customers in a non-discriminatory manner as regards cost, effort or

time.

(3) Gas suppliers or distribution system operators

shall in cooperation with the Authority, take the necessary steps to

provide consumers with a copy of the energy consumer checklist

and ensure that it is made publicly available.

(4) The Authority shall monitor, report and propose

measures to the Minister every two years whether

(a) there are adequate safeguards to protect

vulnerable customers, including measures to help them avoid

disconnection and to protect final customers in remote areas;

and

(b) there are high levels of consumer protection,

particularly with respect to transparency regarding contractual

terms and conditions, general information and dispute

settlement mechanisms.

(5) Household customers shall have the right to the

measures set out in the Schedule to these regulations.

(1) The construction and, or operation of natural gas

facilities shall require an authorisation from the Authority. The

Authority shall grant authorisations to build and, or operate such

facilities, pipelines and associated equipment in accordance with

sub-regulations 2 to 4 of this regulation. The supply of natural

gas including that for wholesale customers shall also require an

authorisation from the Authority in accordance with sub-regulations

(2) to (4) of this regulation.

(2) The Authority shall lay down objective and non-

discriminatory criteria which shall be met by an undertaking

applying for an authorisation to build and, or operate natural gas

facilities or applying for an authorisation to supply natural gas.

The non-discriminatory criteria and procedures for the granting

of authorisations shall be made public. The Authority shall ensure

that authorisation procedures for facilities, pipelines and associated

equipment take into account the importance of the project for the

internal market in natural gas where appropriate.

(3) The Authority shall ensure that the reasons for

any refusal to grant an authorisation are objective and non-

discriminatory and that they are given to the applicant. Reasons for

such refusals shall be notified to the Commission for information.

(4) Without prejudice to regulation 26 of these

regulations and for the development of newly supplied areas and

efficient operation generally, the Authority may decline to grant

a further authorisation to build and operate distribution pipeline

systems in any particular area once such pipeline systems have

been or are proposed to be built in that area and if existing or

proposed capacity is not saturated.

(1) At least every year, by the 31 st December at the

latest or as may be prescribed by the Authority, the distribution

system operator shall draw up and submit to the Authority a report

covering in particular the following issues

(a)

the balance of supply and demand on the national

market;

(b) the level of expected future demand and available

supplies, envisaged additional capacity being planned or

under construction;

(c) the quality and level of maintenance of the

networks, as well as measures to cover peak demand and to

deal with shortfalls of one or more suppliers.

(2) The Authority shall publish by the 31 st of July

of each year, a report including the findings resulting from

the monitoring of the issues listed in sub-regulation (1) of this

regulation, as well as any measures taken or envisaged to address

them. The Authority shall also submit that report to the Minister in

a manner suitable for reporting to the Commission.

Within such time and following such consultation as the

Authority may establish, the Authority may direct any distribution

system operator to prepare and publish a network code, subject

to the approval of the Authority, establishing the basic technical

design and operational requirements for the connection to the

distribution system of LNG facilities, storage facilities, distribution

systems, and direct lines, which are developed and made public.

The network code shall be objective and nondiscriminatory. The

network code shall be notified in accordance with the Procedure

for the Provision of Information in the field of Technical Standards

and Regulations and of Rules of Information Society Services

Regulations, 2001.

The Authority shall designate, or shall require natural

gas undertakings which own storage or LNG facilities to designate,

for a period of time to be determined by the Authority, having

regard to considerations of efficiency and economic balance, one

or more storage and LNG system operators.

(1)

Each storage and, or LNG system operator shall

(a) operate, maintain and develop under economic

conditions secure, reliable and efficient, storage and, or

LNG facilities to secure an open market, with due regard

to the environment, ensure adequate means to meet service

obligations;

(b) refrain from discriminating between system users

or classes of system users, particularly in favour of its related

undertakings;

(c) provide any other storage system operator, any

other LNG system operator and/or any distribution system

operator, sufficient information to ensure that the transport and

storage of natural gas may take place in a manner compatible

with the secure and efficient operation of the interconnected

system; and

(d) provide system users with the information they

need for efficient access to the system.

(1) A storage system operator which is part of Unbundling of

vertically integrated undertakings shall be independent at least storage

in terms of its legal form, organization and decision making

from other activities not relating to distribution and storage. This

regulation shall apply only to storage facilities that are technically

and, or economically necessary for providing efficient access to

the system for the supply of customers pursuant to regulation 23 of

these regulations.

(2) In order to ensure the independence of the storage

system operator referred to in sub-regulation (1), the following

minimum criteria shall apply

(a) persons responsible for the management of the

storage system operator shall not participate in company

structures of the integrated natural gas undertaking

responsible, directly or indirectly, for the day-to-day operation

of the production and supply of natural gas;

(b) appropriate measures shall be taken to ensure

that the professional interests of persons responsible for the

management of the storage system operator are taken into

account in a manner that ensures that they are capable of

acting independently;

(c) the storage system operator shall have effective

decision-making rights, independent from the integrated

natural gas undertaking, with respect to assets necessary

to operate, maintain or develop the storage facilities. This

shall not preclude the existence of appropriate coordination

mechanisms to ensure that the economic and management

supervision rights of the parent company in respect of

return on assets regulated indirectly in accordance with

sub-regulation (4) of regulation 29 of these regulations in

a subsidiary company are protected. In particular, this shall

enable the parent company to approve the annual financial

plan, or any equivalent instrument, of the storage system

operator and to set global limits on the levels of indebtedness

of its subsidiary company. It shall not permit the parent

company to give instructions regarding day-to-day operations,

nor with respect to individual decisions concerning the

construction or upgrading of storage facilities, that do not

exceed the terms of the approved financial plan, or any

equivalent instrument; and

(d) the storage system operator shall establish a

compliance programme, which sets out measures taken to

ensure that discriminatory conduct is excluded, and ensure

that observance of it is adequately monitored. The compliance

programme shall set out the specific obligations of employees

to meet those objectives. An annual report, setting out the

measures taken, shall be submitted by the person or body

responsible for monitoring the compliance programme to the

Authority and shall be published.

(1) Without prejudice to regulation 20 of these

regulations or any other legal duty to disclose information,

each storage and, or LNG system operator, shall preserve the

confidentiality of commercially sensitive information obtained

in the course of carrying out its activities, and shall prevent

information about its own activities which may be commercially

advantageous from being disclosed in a discriminatory manner.

In particular, it shall not disclose any commercially sensitive

information to the remaining parts of the undertaking, unless this is

necessary for carrying out a business transaction.

(2) Storage and, or LNG system operators shall

not, in the context of sales or purchases of natural gas by related

undertakings, misuse commercially sensitive information obtained

from third parties in the context of providing or negotiating access

to the system. Storage and, or LNG system operators shall make

public information necessary for effective competition and the

efficient functioning of the market

Provided that such obligation shall be without prejudice

to protecting commercially sensitive information.

The Authority shall designate, or shall require

undertakings which own or are responsible for distribution systems

to designate, for a period of time to be determined by the Authority,

having regard to considerations of efficiency and economic

balance, one or more distribution system operators and shall ensure

that those operators act in accordance with regulations 16, 17 and

18 of these regulations.

(1) The distribution system operator shall be

responsible for ensuring the long-term ability of the system to meet

reasonable demands for the distribution of gas, and for operating,

maintaining and developing under economic conditions a secure,

reliable and efficient system in its area, with due regard for the

environment and energy efficiency.

(2) The distribution system operator shall not

discriminate between system users or classes of system users,

particularly in favour of its related undertakings.

(3) The distribution system operator shall provide

any other distribution, LNG, and, or storage system operator with

sufficient information to ensure that the transport and storage of

natural gas takes place in a manner compatible with the secure

and efficient operation of the interconnected system.

(4) The distribution system operator shall provide

system users with the information they need for efficient access

to, including use of, the system.

(5) Where a distribution system operator is

responsible for balancing the distribution system, rules adopted

by it for that purpose shall be objective, transparent and non-

discriminatory, including rules for the charging of system users

for energy imbalance. Terms and conditions, including rules

and tariffs, for the provision of such services by distribution

system operators shall be established pursuant to a methodology

compatible with sub-regulation (4) of regulation 29 of these

regulations in a non-discriminatory and cost-reflective way and

shall be published.

(1) Where the distribution system operator is part

of a vertically integrated undertaking, it shall be independent at

least in terms of its legal form, organisation and decision making

from other activities not relating to distribution. Those rules shall

not create an obligation to separate the ownership of assets of the

distribution system from the vertically integrated undertaking.

(2) In addition to the requirements referred to under

sub-regulation (1) of this regulation, in order to achieve this, the

following minimum criteria shall apply

(a) those persons responsible for the management

of the distribution system operator must not participate

in company structures of the integrated natural gas

undertaking responsible, directly or indirectly, for the day-

to-day operation of the production, and supply of natural

gas;

(b) appropriate measures must be taken to ensure

that the professional interests of persons responsible for

the management of the distribution system operator are taken

into account in a manner that ensures that they are capable of

acting independently;

(c) the distribution system operator must have effective

decision-making rights, independent from the integrated

natural gas undertaking, with respect to assets necessary to

operate, maintain or develop the network. In order to fulfil

those tasks, the distribution system operator shall have at its

disposal the necessary resources including human, technical,

financial and physical resources. This should not prevent the

existence of appropriate coordination mechanisms to ensure

that the economic and management supervision rights of

the parent company in respect of return on assets, regulated

indirectly in accordance with sub-regulation (4) of regulation

29 in a subsidiary are protected. In particular, this shall

enable the parent company to approve the annual financial

plan, or any equivalent instrument, of the distribution system

operator and to set global limits on the levels of indebtedness

of its subsidiary. It shall not permit the parent company to

give instructions regarding day-to-day operations, nor with

respect to individual decisions concerning the construction or

upgrading of distribution lines, that do not exceed the terms

of the approved financial plan, or any equivalent instrument;

and

(d) the distribution system operator must establish a

compliance programme, which sets out measures taken to

ensure that discriminatory conduct is excluded, and ensure

that observance of it is adequately monitored. The compliance

programme shall set out the specific obligations of employees

to meet that objective. An annual report, setting out the

measures taken, shall be submitted by the person or body

responsible for monitoring the compliance programme to

the Authority and shall be published. Such person being the

compliance officer of the distribution system operator shall

be fully independent and shall have access to all the necessary

information of the distribution system operator and any

affiliated undertaking to fulfil his task.

(3) Where the distribution system operator is part of a

vertically integrated undertaking, the Authority shall monitor

the activities of the distribution system operator so that it cannot

take advantage of its vertical integration to distort competition.

In particular, vertically integrated distribution system operators

shall not, in their communication and branding, create confusion

in respect of the separate identity of the supply branch of the

vertically integrated undertaking.

(4) Sub-regulations (1), (2) and (3) of this regulation shall

not apply to integrated natural gas undertakings serving less than

100,000 connected customers to the system.

(1) Without prejudice to regulation 20 or any other Confidentiality

legal duty to disclose information, each distribution system obligations

operator shall preserve the confidentiality of commercially operators.

sensitive information obtained in the course of carrying out its

business, and shall prevent information about its own activities

which may be commercially advantageous from being disclosed in

a discriminatory manner.

(2) Distribution system operators shall not, in the

context of sales or purchases of natural gas by related undertakings,

abuse commercially sensitive information obtained from third

parties in the context of providing or negotiating access to the

system.

(1) The Authority may classify a system which

distributes gas within a geographically confined industrial,

commercial or shared site and does not, without prejudice to sub-

regulation (4) of this regulation, supply household customers, as a

closed distribution system if

(a) for specific technical or safety reasons, the

operations or the production process of the users of that

system are integrated; or

(b) that system distributes gas primarily to the owner

or operator of the system or to their related undertakings.

(2) The Authority may exempt the operator of a closed

distribution system from the requirement under regulation 22 of

these regulations that tariffs, or the methodologies underlying

their calculation, are approved prior to their entry into force in

accordance with regulation 29 of these regulations.

(3) Where an exemption is granted under sub-

regulation (2) of this regulation, the applicable tariffs, or the

methodologies underlying their calculation, shall be reviewed and

approved in accordance with regulation 29 of these regulations

upon request by a user of the closed distribution system.

(4) Incidental use by a small number of households

with employment or other similar associations with the owner of

the distribution system and located within the area served by a

closed distribution system shall not preclude an exemption under

sub-regulation (2) being granted.

(1) The Authority shall, insofar as necessary to carry

out its functions, have right of access to the accounts of natural gas

undertakings as set out in regulation 21 of these regulations.

(2) The Authority shall preserve the confidentiality of

commercially sensitive information. The Authority may disclose

such information where this is necessary in order for the Authority

to carry out its functions.

(1) Natural gas undertakings shall keep their accounts

in accordance with sub-regulations (2) to (5) of this regulation.

(2) Natural gas undertakings, whatever their system of

ownership or legal form, shall draw up, submit to audit and publish

their annual accounts in accordance with the rules of Companies

Act concerning the preparation of the annual accounts of limited

liability companies. Undertakings which are not legally obliged

to publish their annual accounts shall keep a copy of these at the

disposal of the public in their head office.

(3) Natural gas undertakings shall, in their internal

accounting, keep separate accounts for each of their distribution,

LNG and storage activities as they would be required to do if the

activities in question were carried out by separate undertakings,

with a view to avoiding discrimination, cross-subsidisation and

distortion of competition. They shall also keep accounts, which

may be consolidated, for other gas activities not relating to

distribution, LNG and storage. Revenue from ownership of the

distribution network shall be specified in the accounts. Where

appropriate, they shall keep consolidated accounts for other, non-

gas activities. The internal accounts shall include a balance sheet

and a profit and loss account for each activity.

(4) The audit, referred to in sub-regulation (2) of this

regulation, shall, in particular, verify that the obligation to avoid

discrimination and cross-subsidies referred to in sub-regulation (3)

is respected.

(5) Undertakings shall specify in their internal

accounting the rules for the allocation of assets and liabilities,

expenditure and income as well as for depreciation, without

prejudice to nationally applicable accounting rules, which they

follow in drawing up the separate accounts referred to in sub-

regulation (3) of this regulation. Those internal rules may be

amended only in exceptional cases. Such amendments shall be

mentioned and duly substantiated

(6) The annual accounts shall indicate in notes any

transaction of a certain size conducted with related undertakings.

The tariffs for third party access to the distribution Third-party access.

system and LNG facilities or the methodologies underlying their

calculation shall be approved by the Authority prior to their entry

into force in accordance with regulation 29 of these regulations

and such tariffs or methodologies shall be applicable to all eligible

customers, including supply undertakings, and applied objectively

and without discrimination between system users. The tariffs and

methodologies, shall be published by the Authority prior to their

entry into force.

(1) The Authority may choose either negotiated

access or regulated access for the organisation of access to storage

facilities and linepack when technically and, or economically

necessary for providing efficient access to the system for the

supply of customers, as well as for the organisation of access to

ancillary services. Those procedures shall operate in accordance

with objective, transparent and non-discriminatory criteria.

(2) The Authority shall define and publish criteria

according to which the access regime applicable to storage facilities

and linepack may be determined. Without prejudice to the right of

the Authority to choose either or both of the procedures referred to

in sub-regulation (1) of this regulation, the Authority shall make

public, or oblige storage operators to make public, which storage

facilities, or which parts of those storage facilities, and which

linepack is offered under the different procedures referred to in

sub-regulation (1) of this regulation.

(3) The provisions of sub-regulation (1) of this

regulation shall not apply to ancillary services and temporary

storage that are related to LNG facilities and are necessary for the

re-gasification process.

Natural gas undertakings may refuse access to the

system on the basis of lack of capacity having regard to the criteria

and procedures setout in regulation 32 of these regulations and the

alternative chosen by the Member State in accordance with sub-

regulation (1) of that regulation. Duly substantiated reasons shall

be given for any such a refusal.

(1) The Authority may upon request and on a case-by-

case basis decide to exempt major new gas infrastructure, such as

interconnectors, LNG and storage facilities, for a defined period

of time, from the provisions of regulations 22 and 23 of these

regulations and sub-regulations (4), (6) and (8) of regulation 29 of

these regulations under the following conditions

(a) the investment must enhance competition in gas

supply and enhance security of supply;

(b) the level of risk attached to the investment must

be such that the investment would not take place unless an

exemption was granted;

(c) the infrastructure must be owned by a person which

is separate at least in terms of its legal form from the system

operators in whose systems that infrastructure will be built;

( d ) c h a rg e s m u s t b e l e v i e d o n u s e r s o f t h a t

infrastructure; and

(e) the exemption must not be detrimental to

competition or the effective functioning of the internal market

in natural gas, or the efficient functioning of the regulated

system to which the infrastructure is connected.

(2) Sub-regulation (1) of this regulation shall also

apply to significant increases of capacity in existing infrastructure

and to modifications of such infrastructure which enable the

development of new sources of gas supply.

(3) The exemption granted by the Authority in terms

of sub-regulation (1) of this regulation may cover all or part of the

capacity of the new infrastructure, or of the existing infrastructure

with significantly increased capacity. In deciding to grant an

exemption, consideration shall be given by the Authority, on a

case-by-case basis, to the need to impose conditions regarding the

duration of the exemption and non-discriminatory access to the

infrastructure. When deciding on those conditions, account shall,

in particular, be taken of the additional capacity to be built or the

modification of existing capacity, the time horizon of the project

and national circumstances.

(4) Before granting an exemption, the Authority

shall decide upon the rules and mechanisms for management and

allocation of capacity. The rules shall require that all potential

users of the infrastructure are invited to indicate their interest

in contracting capacity before capacity allocation in the new

infrastructure, including for own use, takes place. The Authority

shall require congestion management rules to include the obligation

to offer unused capacity on the market, and shall require users of

the infrastructure to be entitled to trade their contracted capacities

on the secondary market. In its assessment of the criteria referred

to in paragraphs (a), (b) and (e) of sub-regulation (1) of this

regulation, the Authority shall take into account the results of that

capacity allocation procedure.

The exemption decision, including any conditions

referred to in this sub-regulation, shall be duly reasoned and

published.

(5) Notwithstanding sub-regulation (1) of this

regulation, the Authority shall submit to the Minister for the

purposes of a formal decision, its opinion on the request for an

exemption, which opinion shall be published together with the

decision.

(6) The Authority shall transmit to the Commission,

without delay, a copy of every request for exemption as of its

receipt. The decision shall be notified, without delay, by the

Authority to the Commission, together with all the relevant

information with respect to the decision. The information may

be submitted to the Commission in aggregate form, enabling the

Commission to reach a well-founded decision. In particular, the

information shall contain

(a) the detailed reasons on the basis of which the

Authority has granted or refused the exemption together with

a reference to sub-regulation (1) of this regulation including

the relevant point or points of that sub-regulation on which

such decision is based, including the financial information

justifying the need for the exemption;

(b) the analysis undertaken of the effect on competition

and the effective functioning of the internal market in natural

gas resulting from the grant of the exemption;

(c) the reasons for the time period and the share of the

total capacity of the gas infrastructure in question for which

the exemption is granted;

(d) in case the exemption relates to an interconnector,

the result of the consultation with the regulatory authorities

concerned; and

(e) the contribution of the infrastructure to the

diversification of gas supply.

(7) The Authority shall comply with a decision of the

Commission to amend or withdraw the exemption decision within a

period of one month and the Minister shall inform the Commission

accordingly.

(1) The Authority shall lay down the criteria for the

grant of authorisations for the operation of a direct line. Those

criteria shall be objective, transparent and non-discriminatory.

(2) The Authority may issue an authorisation to

construct a direct line subject either to the refusal of system access

on the basis of regulation 24 of these regulations or to the opening

of a dispute-settlement procedure under regulation 29 of these

regulations.

The Authority when carrying out the regulatory tasks

conferred upon it by these regulations shall

(a) be functionally independent from any other public

or private entity;

(b) ensure that its staff and the persons responsible for

its management

(i)

act independently from any market interest;

and

(ii)

do not seek or take direct instructions

from any government or other public or private entity

when carrying out the regulatory tasks

Provided that this requirement is without prejudice

to close cooperation, as appropriate, with other relevant

national authorities or to general policy guidelines issued by the

Government not related to the regulatory powers and duties under

regulation 21 of these regulations.

In carrying out the regulatory tasks specified in these

regulations, the Authority shall take all reasonable measures

in pursuit of the following objectives within the framework

of its duties and powers as laid down in regulation 29 of these

regulations, in close consultation with other relevant national

authorities including competition authorities, as appropriate, and

without prejudice to their competencies

(a) promoting, in close cooperation with the Agency,

regulatory authorities of other Member States and the

Commission, a competitive, secure and environmentally

sustainable internal market in natural gas within the

Community, and effective market opening for all customers

and suppliers in the Community, and ensuring appropriate

conditions for the effective and reliable operation of gas

networks, taking into account long-term objectives;

(b) developing competitive and properly functioning

regional markets within the Community in view of the

achievement of the objectives referred to in paragraph (a);

(c) eliminating restrictions on trade in natural gas

between Member States, including developing appropriate

cross-border capacities to meet demand and enhancing the

integration of national markets which may facilitate natural

gas flow across the Community;

(d) helping to achieve, in the most cost-effective

way, the development of secure, reliable and efficient non-

discriminatory systems that are consumer oriented, and

promoting system adequacy and, in line with general energy

policy objectives, energy efficiency as well as the integration

of large and small scale production of gas from renewable

energy sources and distributed production in distribution

networks;

(e) facilitating access to the network for new

production capacity, in particular removing barriers that

could prevent access for new market entrants and of gas from

renewable energy sources;

(f) ensuring that system operators and system users

are granted appropriate incentives, in both the short and the

long term, to increase efficiencies in system performance and

foster market integration;

(g) ensuring that customers benefit through the efficient

functioning of their national market, promoting effective

competition and helping to ensure consumer protection;

(h) helping to achieve high standards of public service

for natural gas, contributing to the protection of vulnerable

customers and contributing to the compatibility of necessary

data exchange processes for customer switching.

(1) The Authority shall have the following duties

(a) fixing or approving, in accordance with transparent

criteria, distribution tariffs or their methodologies;

(b) ensuring compliance of distribution system

operators, and where relevant, system owners, as well as of

any natural gas undertakings, with their obligations under

these Regulations and other relevant Community legislation,

including as regards cross-border issues;

(c) cooperating in regard to cross-border issues with

the regulatory authority or authorities of the Member States

concerned and with the Agency;

(d) complying with, and implementing, any

relevant legally binding decisions of the Agency and of the

Commission;

(e) reporting annually on its activity and the fulfilment

of its duties to the relevant authorities of the Member States,

the Agency and the Commission. Such reports shall cover

the steps taken and the results obtained as regards each of the

tasks listed in this regulation;

(f) ensuring that there are no cross-subsidies between

distribution, storage, LNG and supply activities;

(g) monitoring compliance with and reviewing the

past performance of network security and reliability rules and

setting or approving standards and requirements for quality of

service and supply or contributing thereto together with other

competent authorities;

(h) monitoring the level of transparency, including

of wholesale prices, and ensuring compliance of natural gas

undertakings with transparency obligations;

(i) monitoring the level and effectiveness of market

opening and competition at wholesale and retail levels,

including on natural gas exchanges, prices for household

customers including prepayment systems, switching

rates, disconnection rates, charges for and the execution of

maintenance services and complaints by household customers,

as well as any distortion or restriction of competition,

including providing any relevant information, and bringing

any relevant cases to the relevant competition authorities;

(j) monitoring the occurrence of restrictive contractual

practices, including exclusivity clauses which may

prevent large non-household customers from contracting

simultaneously with more than one supplier or restrict their

choice to do so, and, where appropriate, informing the

national competition authorities of such practices;

(k) respecting contractual freedom with regard to

interruptible supply contracts as well as with regard to

long-term contracts provided that they are compatible with

Community law and consistent with Community policies;

(l) monitoring the time taken by distribution system

operators to make connections and repairs;

(m) monitoring and reviewing the access conditions

to storage, linepack and other ancillary services as provided

for in regulation 23 of these regulations. In the event that the

access regime to storage is by means of negotiated access,

that task shall exclude there viewing of tariffs;

(n) helping to ensure, together with other relevant

authorities, that the consumer protection measures, including

those set out in the Schedule to these regulations, are effective

and enforced;

(o) publishing recommendations, at least annually,

in relation to compliance of supply prices with regulation 7

of these regulations, and providing those to the competition

authorities, where appropriate;

(p) ensuring access to customer consumption data,

the provision for optional use, of an easily understandable

harmonised format at national level for consumption data and

prompt access for all customers to such data under point (h)

of the Schedule to these regulations;

(q) monitoring the implementation of rules relating to

the roles and responsibilities of distribution system operators,

suppliers and customers and other market parties pursuant to

Regulation (EC) No 715/2009;

(r) monitoring the correct application of the criteria

that determine whether a storage facility falls under negotiated

or regulated access; and

(s) monitoring the implementation of safeguards

measures as referred to in regulation 31 of these regulations;

(t) contributing to the compatibility of data exchange

processes for the most important market processes at regional

level.

(2) While preserving its independence, without

prejudice to its own specific competencies and consistent with the

principles of better regulation, the Authority shall, as appropriate,

closely cooperate with other relevant national authorities when

carrying out the duties set out in sub-regulation (1) of this

regulation.

(3) Any approvals given by the Authority under these

regulations are without prejudice to any duly justified future use of

its powers by the Authority under this regulation or to any penalties

imposed by other relevant authorities or the Commission.

(4) The Authority shall be responsible for fixing or

approving sufficiently in advance of their entry into force at least

the methodologies used to calculate or establish the terms and

conditions for

(a) connection and access to national networks,

including transmission and distribution tariffs, and terms,

conditions and tariffs for access to LNG facilities. Those

tariffs or methodologies shall allow the necessary investments

in the networks and LNG facilities to be carried out in a

manner allowing those investments to ensure the viability of

the networks and LNG facilities;

(b) the provision of balancing services which shall

be performed in the most economic manner and provide

appropriate incentives for network users to balance their input

and off-takes. The balancing services shall be provided in a

fair and non-discriminatory manner and be based on objective

criteria; and

(c) access to cross-border infrastructures, including

the procedures for the allocation of capacity and congestion

management.

(5) The methodologies or the terms and conditions

referred to in sub-regulation (4) shall be published.

(6) In fixing or approving the tariffs or methodologies

and the balancing services, the Authority shall ensure that the

distribution system operator is granted appropriate incentive, over

both the short and long term, to increase efficiencies, foster market

integration and security of supply and support the related research

activities.

(7) The Authority shall monitor congestion

management of national gas interconnectors, and the

implementation of congestion management rules. To that end,

market operators shall submit its congestion management rules,

including capacity allocation, to the Authority. The Authority may

request amendments to those rules.

(8) The Authority may require storage, LNG and

distribution system operators, if necessary, to modify the terms and

conditions, including tariffs and methodologies referred to in this

regulation, to ensure that they are proportionate and applied in a

non-discriminatory manner. In the event that the access regime to

storage is to be achieved by means of negotiated access, that task

shall exclude the modification of tariffs. In the event of delay in the

fixing of distribution tariffs, the Authority shall have the power to

fix or approve provisional distribution tariffs or methodologies and

to decide on the appropriate compensatory measures if the final

tariffs or methodologies deviate from those provisional tariffs or

methodologies.

(9) Any party having a complaint against a storage,

LNG or distribution system operator in relation to that operator’s

obligations under these regulations may refer the complaint to

the Authority which, acting as dispute settlement authority, shall

issue a decision within a period of two months after receipt of the

complaint. That period may be extended by two months where

additional information is sought by the Authority. That extended

period may be further extended with the agreement of the

complainant.

(10) Any party who is affected and who has a right to

complain concerning a decision on methodologies taken pursuant

to this regulation or, where the Authority has a duty to consult,

concerning the proposed tariffs or methodologies, may, at the

latest within two months, following publication of the decision

or proposal for a decision, submit a complaint for review. Such a

complaint shall not have suspensive effect.

(11) Complaints referred to in sub-regulations (9) and

(10) of this regulation shall be without prejudice to the exercise of

rights of appeal under Community or national law.

(12) Decisions taken by the Authority shall be fully

reasoned and justified to allow for judicial review. The decisions

shall be available to the public while preserving the confidentiality

of commercially sensitive information.

(1) Supply undertakings shall keep at the disposal

of the national authorities, including the Authority, the national

competition authorities and the Commission, for the fulfilment

of their tasks, for at least five years, the relevant data relating to

all transactions in gas supply contracts and gas derivatives with

wholesale customers and transmission system operators as well as

storage and LNG operators.

(2) The data mentioned in sub-regulation (1) of this

regulation shall include details on the characteristics of the relevant

transactions such as duration, delivery and settlement rules, the

quantity, the dates and times of execution and the transaction prices

and means of identifying the wholesale customer concerned, as

well as specified details of all unsettled gas supply contracts and

gas derivatives.

(3) The Authority may decide to make available to

market participants elements of that information

Provided that commercially sensitive information on

individual market players or individual transactions shall not be

released

Provided further that, this regulation shall not apply to

information about financial instruments which fall within the scope

of Directive 2004/39/EC.

(4) With respect to transactions in gas derivatives of

supply undertakings with wholesale customers and transmission

system operators as well as storage and LNG operators, this

regulation shall apply only once the Commission has adopted the

Guidelines which define the methods and arrangements for record

keeping as well as the form and content of the data that shall be

kept.

(5) The provisions of this regulation shall not create

additional obligations towards the authorities referred to in sub-

regulation (1) for entities falling within the scope of Directive

2004/39/EC.

(6) In the event that the authorities referred to in

sub-regulation (1) need require access to data kept by entities

falling within the scope of Directive 2004/39/EC, the authorities

responsible under that Directive shall provide them with the

required data.

In the event of a sudden crisis in the energy market Safeguard measures.

and where the physical safety or security of persons, apparatus or

installations or system integrity is threatened, the Authority may

temporarily take the necessary safeguard measures. Such measures

shall cause the least possible disturbance in the functioning of

the internal market and shall not be wider in scope than is strictly

necessary to remedy the sudden difficulties which have arisen. The

Minister shall, without delay, notify those measures to the other

Member States, and to the Commission

Provided that the Minister shall amend or abolish such

measures, upon a decision by the Commission to amend or abolish

such measures, insofar as they distort competition and adversely

affect trade in a manner which is at variance with the common

interest.

(1) If a natural gas undertaking encounters, or

considers it would encounter, serious economic and financial

difficulties because of its take-or-pay commitments accepted in one

or more gas-purchase contracts, it may send an application for a

temporary exemption from regulation 22 of these regulations to

the Authority. Applications shall, in accordance with the choice of

the Authority, be presented on a case-by-case basis either before or

after refusal of access to the system. The Authority may also give

the natural gas undertaking the choice of presenting an application

either before or after refusal of access to the system. Where a

natural gas undertaking has refused access, the application shall be

presented without delay. The applications shall be accompanied by

all relevant information on the nature and extent of the problem and

on the efforts undertaken by the natural gas undertaking to solve

the problem. If alternative solutions are not reasonably available,

and taking into account sub-regulation (3) of this regulation, the

Authority may decide to grant an exemption.

(2) The Authority shall notify the Minster without

delay of its decision to grant an exemption, together with all the

relevant information with respect to the exemption. The information

may be submitted to the Minister in an aggregated form, in a

manner suitable to be sent by the Minister to the Commission.

(3) When deciding on the exemptions referred to in

sub-regulation (1) to this regulation, the Authority, shall take into

account, in particular, the following criteria

(a)

the objective of achieving a competitive gas

market;

(b) the need to fulfill public-service obligations and to

ensure security of supply;

(c) the position of the natural gas undertaking in the

gas market and the actual state of competition in that market;

(d) the seriousness of the economic and financial

difficulties encountered by natural gas undertakings or eligible

customers;

(e) the dates of signature and terms of the contract or

contracts in question, including the extent to which they allow

for market changes;

(f) the efforts made to find a solution to the problem;

(g) the extent to which, when accepting the take-or-pay

commitments in question, the undertaking could reasonably

have foreseen, having regard to the provisions of Directive

2009/73/EC, that serious difficulties were likely to arise;

(h) the level of connection of the system with other

systems and the degree of interoperability of those systems;

and

(i) the effects the granting of an exemption would have

on the correct application of Directive 2009/73/EC as regards

the smooth functioning of the internal market in natural gas.

(4) Natural gas undertakings which have not been

granted an exemption as referred to in sub-regulation (1) of this

regulation shall not refuse, or shall no longer refuse, access to the

system because of take-or-pay commitments accepted in a gas

purchase contract.

(1) The Authority may issue a compliance order Compliance orders.

against any person who in its opinion has contravened any of

the provisions of these regulations or a condition of a licence or

authorisation issued thereunder.

(2) Any person who fails to abide by the provisions of

a compliance order issued by the Authority shall, without prejudice

to any other liability under these regulations, the Act or any other

law, be guilty of an offence and be liable, on conviction, to a

fine (multa) of not less than one thousand euro (€1,000) and of

not more than sixty thousand euro (€60,000) for each day during

which the failure to comply subsists.

(1) Any person who contravenes any of the provisions Offences.

of these regulations or of a licence condition or of an authorisation

or approval issued thereunder, shall be guilty of an offence and

shall, on conviction, be liable to a fine (multa)

of not more

than sixty-nine thousand euro (€69,000) or for one thousand and

three hundred euro(€1,300) for each day during which the offence

persists.

(2) Any person who, when information with respect

to these regulations is requested or required by the Authority,

knowingly or recklessly -

(a) gives any false, inaccurate or misleading

information;

or

(b)

supplies incomplete information; or

(c) fails, without reasonable cause, to supply

information requested within the time given; or

(d)

prevents or hinders any investigation; or

(e) produces or furnishes, or causes or knowingly

allows to be produced or furnished, any document or

information which he knows to be false in any material

respect, shall be guilty of an offence and shall, on conviction,

be liable to a fine (multa) of not less than one thousand euro

(€1,000) and of not more than sixty thousand euro (€60,000)

for each day during which the failure to comply subsists.

(3) Notwithstanding any other provision of these

regulations, where any person fails to comply with the provisions

of these regulations or of a licence or authorisation condition for a

period not exceeding three months, the Authority may revoke such

licence or authorisation.

The Authority may impose an administrative fine upon

any person who infringes any provision of these regulations or

who fails to comply with any directive or decision given by the

Authority in ensuring compliance with these regulations.

The Natural Gas (Marketing) Regulations, 2004 and the

Natural Gas Supply (Safeguard of Security) Regulations, 2006 are

hereby being revoked.