NATURAL GAS MARKET REGULATIONS

SUBSIDIARY LEGISLATION 545.12

NATURAL GAS MARKET REGULATIONS

5th May, 2011

LEGAL NOTICE 167 of 2011, as amended by Legal Notice 189 of 2012,

Act XXV of 2014, Legal Notice 30 of 2016 and 118 of 2017.

(1) The title of these regulations is the Natural Gas Market

Regulations.

(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.

Amended by

XXV. 2015.41;

(Regulations 7 and 29)

L.N.118 of 2017.

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

Regulator 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.

NATURAL GAS MARKET

In these regulations, unless the context otherwise requires

"the Act" means the Regulator for Energy and Water Services

Act;

"Agency" means the Agency for the Co-operation of Energy

Regulators;

"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 ten 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 natur al 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 m eeti ng the dem and fo r natu ral gas of th e 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;

"Regulator" means the Regulator for Energy and Water Services

established by the Act;

"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;

"transmission" means the transport of natural gas through a

network, which mainly contains high-pressure pipelines, other than

an upstream pipeline network and other than the part of high-

pressure pipelines primarily used in the context of local

distribution of natural gas, with a view to its delivery to customers,

but not including supply;

"transmission system operator" means a natural or legal person

who carries out the function of transmission and is responsible for

o p e r a t i n g , e n s u r i n g t h e m ai n t e n a n c e o f , a n d , i f n e c e s s a r y,

developing the transmission 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 transport of gas;

"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.

Added by

L.N.118 of 2017.

(Regulations 3 and 8)

Licence and

Licence and Authorisation

Annual licence and

Authorisation Type

Application Fee

Authorisation fee

the carrying out of the

500 euro

15,000 euro

functions of a storage

system operator;

the carrying out of the

500 euro

20,000 euro

functions of an LNG

system operator;

the carrying out of any of

500 euro

5,000 euro

the functions of a

distribution system

operator

Operation of a Direct

500 euro

5,000 euro

Line;

Supply of natural gas

500 euro

5,000 euro

(1) The following operations and activities shall require a

licence issued by the Regulator 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 Regulator may require;

(b) accompanied by such fees, bank guarantees and

insurance policies as the Regulator 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

Regulator, 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 Regulator to be requisite or expedient,

having regard to the duties of the Regulator.

(5) The Regulator 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 Regulator to reach such a decision.

(6) A non-refundable application fee as established in the

Second Schedule shall be paid to the Regulator with the licence

application;

(7) The amount of the annual licence fee shall be in

accordance to the Second Schedule to these regulations. The first

licence fee shall be paid by the licensee to the Regulator

immediately and on the day of the granting of the licence, and

thereafter every year on the anniversary of the grant of such licence

or on any other date as the Regulator may reasonably establish.

(8) If any licence fee is not paid within thirty days after the

date upon which the licensee has been called by whatever means to

pay such fee, the licence to which it relates shall cease to be in

force with immediate effect and without any other action or further

by the Regulator. If the licensee to whom it was granted wishes

again to carry out any activity under these regulations, he shall then

be required to apply for a new licence. In considering any such

application, the Regulator may take into account the previous

failure of the applicant to pay the licence fee and of any

explanation regarding that failure which the applicant may submit

to the Regulator. The Regulator may impose any measure which is

to be carried out by the applicant to ensure payment of any amounts

due and to ensure the prompt payment of any licence fees due in the

future once a new licence is issued.

The Regulator may, at any time in the course of the period

for which a licence is valid, order its suspension, revocation or

cancellation where the Regulator 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 Regulator; 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

regulation 3(2)

Provided that in exercising the powers for suspension,

revocation or cancellation of licences the Regulator 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 Regulator

considers to be necessary in order to comply with the conditions of

the licence, these regulations or any other requirement that the

Regulator 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 Regulator in the form prescribed

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

(2)

Upon acknowledgment by the Regulator to the holder of a

licence of the notification mentioned in sub-regulation (1), 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 Regulator.

(1) A licence issued by the Regulator under these

regulations shall not be validly transferred inter vivos to any person

unless

(a) the transferor informs in writing the Regulator in such

form and manner as the Regulator shall prescribe;

(b) the Regulator is satisfied that at least the same criteria

as listed in regulation 3(2) are complied with;

(c) the transfer is subject to the conditions prescribed in

the licence; and

(d) the Regulator approves in writing the transfer of the

licence.

(2) A licence issued by the Regulator under these regulations

shall not be validly transmitted causa mortis to any person unless

(a) the transferor informs in writing the Regulator in such

form and manner as the Regulator shall prescribe;

(b) the Regulator is satisfied that at least the same criteria

as listed in regulation 3(2) are complied with;

(c) the transfer is subject to the conditions prescribed in

the licence; and

(d) the Regulator 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 Regulator

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 Regulator. 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 gas supplier 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 gas supplier shall ensure that the rights referred to in

p a r a g r a p h s ( a ) a n d (b ) a r e g r a n t e d t o c u s t o m e r s i n a n o n -

discriminatory manner as regards cost, effort or time.

(3) Gas suppliers or distribution system operators shall in

cooperation with the Regulator, 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 Regulator 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 First Schedule.

(6) In order to promote energy efficiency, the Regulator shall

strongly recommend that natural gas undertakings optimise the use

of gas, for example by providing energy management services,

developing innovative pricing formulas or introducing intelligent

metering systems or smart grids where appropriate.

(7) The Regulator shall provide a single point of contact to

provide consumers with all necessary information concerning their

rights, current legislation and the means of dispute settlement

available to them in the event of a dispute. Such contact point may

be part of general consumer information points, where applicable.

(8) The Regulator shall carry out the function of an energy

ombudsman in order to ensure the efficient treatment of complaints

and out-of-court dispute settlements.

(9) Where a household customer requests the natural gas

supplier to pass on his historic consumption data and, or premises

installation number either to the household customer or to another

natural gas supplier or to any other third party, the supplier shall

comply with that request free of charge as soon as reasonably

practicable; provided that the customer has either already expressed

consent in the contract with the supplier upon signature authorising

the natural gas supplier to provide access to other natural gas

suppliers or energy service providers or third parties to his historic

consumption data or provides such written and signed consent

when submitting the request for access to be given to his data.

For the purposes

of

this

sub-regulation

"historic

consumption data" means

(a) except where a household customer has held his

contract for less than twelve months, the quantity of

natural gas

supplied to the household customer’s

premises during the previous twelve months; or

(b) where the household customer has held his contract for

less than twelve months, the quantity of natural gas

supplied to the household customer’s premises during

the duration of the contract.

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

facilities shall require an authorisation from the Regulator. The

Regulator shall grant authorisations to build and, or operate such

facilities, pipelines and associated equipment in accordance with A

non-refundable application fee as established in the Second Schedule

shall be paid to the Regulator with the application for an authorisation

for the supply of natural gas. The amount of the annual authorisation

fee shall also be in accordance with the Second Schedule to these

regulations. The supply of natural gas including that for wholesale

customers shall also require an authorisation from the Regulator in

accordance with sub-regulations (2) to (4).

(2) The Regulator 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 Regulator 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 Regulator 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 and for the development

of newly supplied areas and efficient operation generally, the

Regulator 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 31st December at the latest

or as may be prescribed by the Regulator, the distribution system

operator shall draw up and submit to the Regulator 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 Regulator shall publish by the 31st of July of each year,

a report including the findings resulting from the monitoring of the

issues listed in sub-regulation (1), as well as any measures taken or

envisaged to address them. The Regulator 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

Regulator may establish, the Regulator may direct any distribution

system operator to prepare and publish a network code, subject to

the approval of the Regulator, 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 non-discriminatory. The

network code shall be notified in accordance with the Notification

Procedure Regulations.

The Regulator 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 Regulator, having regard

to considerations of efficiency and economic balance, one or more

storage and LNG system operators.

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 vertically

integrated undertakings shall be independent at least 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.

(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 regulation

29(4) 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

Regulator and shall be published.

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

duty to disclose information, each transmission, storage and, or

LNG system operator, and each transmission system owner, shall

preserve the confidentiality of commercially sensitive information

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

prevent i nformatio n about its ow n activit ies which m ay 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.

In order to ensure the full respect of the rules on

information unbundling, the transmission system owner including,

in the case of a combined operator, the distribution system operator,

and the remaining part of the undertaking shall not use joint

services, such as joint legal services, apart from purely

administrative or IT functions.

(2) Transmission, 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 an obligation shall be without prejudice

to preserving the confidentiality of commercially sensitive

information.

(1) Each transmission, storage and, or LNG system

operator shall

(a) operate, maintain and develop under economic

conditions secure, reliable and efficient transmission,

storage and, or LNG facilities to secure an open

market, with due regard to the environment, and

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 transmission system operator, 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.

(2) Each transmission system operator shall build sufficient

cross-border capacity to integrate European transmission

infrastructure accommodating all economically reasonable and

technically feasible demands for capacity and taking into account

security of gas supply.

(3) Rules adopted by transmission system operators for

b a l a n c i n g t h e g a s t r a n s m i s s io n s y s t e m s h a l l b e o b j e c t i v e ,

transparent and non-discriminatory, including rules for the charging

of system users of their networks for energy imbalance. Terms and

conditions, including rules and tariffs, for the provision of such

services by transmission system operators shall be established

pursuant to a methodology compatible with regulation 29(4) in a

non-discriminatory and cost-reflective way and shall be published.

(4) The Regulator may require transmission system operators

to comply with minimum standards for the maintenance and

development of the transmission system, including interconnection

capacity.

(5) Transmission system operators shall procure the energy

they use for the carrying out of their functions according to

transparent, non-discriminatory and market based procedures.

The Regulator 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

Regulator, 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.

(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

regulation 29(4) 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

NATURAL GAS MARKET

distribution system from the vertically integrated undertaking.

(2) In addition to the requirements referred to under sub-

regulation (1), 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

regulation 29(4) 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

Regulator 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 Regulator 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) 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 legal

duty to disclose information, each distribution system operator

shall preserve the confidentiality of commercially 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 Regulator 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),

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 Regulator may exempt the operator of a closed

distribution system from the requirement under regulation 22 that

tariffs, or the methodologies underlying their calculation, are

approved prior to their entry into force in accordance with

regulation 29.

(3) Where an exemption is granted under sub-regulation (2),

the applicable tariffs, or the methodologies underlying their

calculation, shall be reviewed and approved in accordance with

regulation 29 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 Regulator 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.

(2) The Regulator shall preserve the confidentiality of

commercially sensitive information. The Regulator may disclose

such information where this is necessary in order for the Regulator

to carry out its functions.

(1) Natural gas undertakings shall keep their accounts in

accordance with sub-regulations (2) to (5).

(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 transmission, 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. Natural gas undertakings shall also keep

accounts, which may be consolidated, for other gas activities not

relating to transmission, distribution, LNG and storage. Revenue

from ownership of the transmission or distribution network shall be

specified in the accounts. Where appropriate, natural gas

undertakings 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), 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). 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 system

and LNG facilities or the methodologies underlying their

calculation shall be approved by the Regulator prior to their entry

into force in accordance with regulation 29 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 Regulator prior to their

entry into force.

(1) The owner of a storage facility shall publish at least

once every year the main commercial conditions relating to the use

of storage and the grant to another person of a right to have gas

stored in the facility on that person’s behalf. The storage system

operator shall publish any changes to the published conditions as

soon as they become effective.

(2) The owner of a relevant facility shall ensure that the

conditions which he is required to publish under sub-regulation (1)

do not discriminate against any applicants or descriptions of

applicants, or any potential applicants or descriptions of potential

applicants, for a right to have gas stored in the facility.

(3) Any person who seeks a right to have gas stored on his

behalf in a gas facility shall submit an application to the owner of

such facility specifying what is being sought.

(4)

The application shall, in particular, specify

(a) the period during which the gas is to be stored in the

facility;

(b) the kind of gas to be stored (which must be of, or

similar to, the kind the facility is designed to store);

and

(c) the quantities of gas to be stored.

(5) The applicant and the owner of the storage facility shall

negotiate in good faith and endeavour to reach an agreement on the

application.

(6) If the owner and the applicant do not reach any such

agreement, the applicant may apply to the Regulator for directions

under sub-regulation (8) which would secure to the applicant the

right to have the gas stored on his behalf

Provided that the Regulator shall not entertain an

application unless he is satisfied that the parties have had a

reasonable time in which to negotiate in terms of subsection (5).

(7) Where a person applies to the Regulator under sub-

regulation (6) and the Regulator is satisfied as mentioned in sub-

regulation (6), the Regulator shall

(a) decide whether the application is to be adjourned (so

as to enable further negotiations to take place),

considered further or rejected;

(b) give notice of his decision to the applicant; and

(c) in the case of a decision that the application is to be

considered further, give to the owner of the facility

notice that the application is to be so considered and

an opportunity of being heard on the matter.

(8) Where, after considering an application under sub-

regulation (6), the Regulator is satisfied that the giving of

directions under this sub-regulation would not prejudice the

efficient operation of the facility, or the storage in the facility of -

(a) the quantities of gas which the owner of the facility

requires or may reasonably be expected to require to

be stored in the facility, and

(b) the quantities of gas which any person who has a right

to have gas stored in the facility is entitled to require

to be so stored in the exercise of that right,

then the Regulator may give such directions to the owner of the

facility.

(9)

Directions under sub-regulation (8) may -

(a) specify the terms on which the Regulator considers the

owner of the facility should enter into an agreement

with the applicant for all or any of the following

purposes;

(b) specify the sums or the method of determining the

sums which the Regulator considers should be paid by

way of consideration for any such right,

and require the owner, if the applicant pays or agrees to pay those

sums within a period specified in the directions, to enter into an

agreement with him on the terms so specified.

(10) An owner of a storage facility shall be entitled to refuse

access thereto for any of the following reasons

(a) lack of capacity;

(b) where access to the facility would prevent the owner

from carrying out any public service obligations

undertaken by him; or

(c) in the case of take-or-pay contracts, where the owner

would suffer serious economic and financial

difficulties

Provided that refusal on any of the above grounds shall be

duly substantiated by the owner

Provided further that, in the case of refusal on the grounds

of lack of capacity, the owner comprehensively proves that such

refusal was made on an objective, transparent and non-

discriminatory basis.

Natural gas undertakings may refuse access to the system

on the basis of lack of capacity or where the access to the system

would prevent them from carrying out the public service

obligations which are assigned to them or on the basis of serious

economic and financial difficulties with take-or-pay contracts

having regard to the criteria and procedures set out in regulation 32

and the alternative chosen by the Regulator in accordance with sub-

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

be given for any such refusal.

(1) The Regulator 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 and regulation

29(4), (6) and (8) 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) charges must be levied on users of that 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) 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 Regulator in terms of sub-

regulation (1) may cover all or part of the capacity of the new

infrastructure, or of the existing infrastructure with significantly

i n c r e a s e d c a p a c i t y. I n d e c i d i n g t o g r a n t a n e x e m p t i o n ,

consideration shall be given by the Regulator, 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 Regulator 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 Regulator 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

sub-regulation (1)(a), (b) and (e), the Regulator 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), the Regulator 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 Regulator 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 Regulator 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

Regulator has granted or refused the exemption

together with a reference to sub-regulation (1)

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 Regulator 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 Regulator 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 Regulator may issue an authorisation to construct a

direct line subject either to the refusal of system access on the basis

of regulation 24 or to the opening of a dispute-settlement procedure

under regulation 29.

The Regulator 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.

In carrying out the regulatory tasks specified in these

regulations, the Regulator 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, 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

NATURAL GAS MARKET

customer switching.

(1) The Regulator 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. 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 First Schedule, are

effective and enforced;

(o) publishing recommendations, at least annually, in

relation to compliance of supply prices with regulation

7, 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 First Schedule;

(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;

(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 Regulator shall, as appropriate, closely

cooperate with other relevant national authorities when carrying

out the duties set out in sub-regulation (1).

(3) Any approvals given by the Regulator under these

regulations are without prejudice to any duly justified future use of

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

imposed by other relevant authorities or the Commission.

(4) The Regulator shall be responsible for fixing or approving

sufficiently in advance of their entry into force at least the

methodol ogies 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 Regulator 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 Regulator 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

Regulator. The Regulator may request amendments to those rules.

(8) The Regulator 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 Regulator 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

d i s t r i b u t i o n s y s t e m o p e r a t o r i n r e l a t i o n t o t h a t o p e r a t o r ’s

obligations under these regulations may refer the complaint to the

Regulator 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 Regulator. That extended

p er i o d m a y b e f u r t h e r e x t e n d e d w i t h t h e a g r e e m e n t o f t h e

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 Regulator 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) shall

be without prejudice to the exercise of rights of appeal under

Community or national law.

(12) Decisions taken by the Regulator 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.

(13) The Regulator shall ensure that the charging of distribution

tariffs of natural gas does not discriminate against gas from

renewable energy sources.

(1) Supply undertakings shall keep at the disposal of the

n a t i o n a l a u t h o r i t i e s , i n c l u d i n g t h e R e g u l a t o r, t h e n a t i o n a l

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) 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 Regulator 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 subregulation (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 and

where the physical safety or security of persons, apparatus or

installations or system integrity is threatened, the Regulator 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 to the Regulator. Applications shall,

in accordance with the choice of the Regulator, be presented on a

case-by-case basis either before or after refusal of access to the

system. The Regulator 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 th e p r ob le m an d on t he eff ort s

undertaken by the natural gas undertaking to solve the problem. If

alternative solutions are not reasonably available, and taking into

account sub-regulation (3), the Regulator may decide to grant an

exemption.

(2) The Regulator 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), the Regulator, 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) 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 Regulator may issue a compliance order 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 Regulator 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 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 Regulator, 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 Regulator may revoke such licence

or authorisation.

(1) The Regulator 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

Regulator in ensuring compliance with these regulations.

(2) An administrative fine imposed under sub-regulation (1)

shall not exceed one hundred thousand euro (€100,000) for each

contravention and, or six hundred euro (€600) for each day of non-

compliance, from the date of the decision given by the Regulator

Provided, however, that in the case of undertakings

(including vertically integrated undertakings) or a body corporate,

a fine of up to ten per centum (10%) of the total turnover concerned

in the preceding business year may be imposed even if such fine

results in an amount which exceeds the threshold provided in this

sub-regulation.

The Administrative Review Tribunal established by article

5 of the Administrative Justice Act shall have jurisdiction to hear

and determine appeals from decisions of the Regulator made under

these regulations.

NATURAL GAS MARKET