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The Electricity and Gas etc. (Amendment etc.) (EU Exit) Regulations 2019

Type Statutory-Instrument

Publication 2019-03-15

Last updated 2025-02-27

State In force

Department King's Printer of Acts of Parliament

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Made: 15th March 2019

Coming into force in accordance with regulation 1

The Secretary of State makes these Regulations in exercise of the powers conferred by section 8(1) of, and paragraph 21 of Schedule 7 to, the European Union (Withdrawal) Act 2018 .

In accordance with paragraph 1(3) of Schedule 7 to that Act, a draft of this instrument has been laid before Parliament and approved by a resolution of each House of Parliament.

PART 1 — Preliminary

Citation, commencement and extent

1

(1) These Regulations may be cited as the Electricity and Gas etc. (Amendment etc.) (EU Exit) Regulations 2019 and come into force on exit day.

(2) An amendment, repeal or revocation made by Part 2, 3, or 4 of these Regulations has the same extent as the provision being amended, repealed or revoked.

(3) In these Regulations, “the Electricity Regulation” means Regulation (EU) 2019/943 of the European Parliament and of the Council of 5 June 2019 on the internal market for electricity (recast) and “predecessor”, in relation to that Regulation, means Regulation (EC) No 714/2009 of the European Parliament and of the Council of 13 July 2009 on conditions for access to the network of cross-border exchanges in electricity and repealing Regulation (EC) No 1228/2003.

PART 2 — Amendment of primary legislation

Energy Act 1976

2

The Energy Act 1976 is amended as follows.

3

In section 3 (implementation of reserve powers), in subsection (1)(a), omit “the European Union or”.

4

In section 18 (administration, enforcement and offences), in subsection (2)—

(a) omit paragraph (c) and the “or” following it;

(b) omit paragraph (d)(i) and the “or” following it.

5

(1) Schedule 2 (administration and other matters) is amended as follows.

(2) In paragraph 1 (power to obtain information), in sub-paragraph (2), omit “the European Union or”.

(3) In paragraph 7 (non-disclosure of information), in paragraph (c), omit “to any institution of the European Union, or”.

6

Omit Schedule 3 (EU obligations of which breach is punishable under this Act).

Gas Act 1986

7

The Gas Act 1986 is amended as follows.

8

(1) Section 4AA (the principal objective and general duties of the Secretary of State and the Gas and Electricity Markets Authority) is amended as follows.

(2) In subsection (1A)(c)—

(a) for “functions as designated regulatory authority for Great Britain” substitute “ designated regulatory functions ”;

(b) for the words from “objectives” to “Directive” substitute “ designated regulatory objectives ”.

(3) In subsection (5B), at the appropriate place insert—

“the designated regulatory objectives” means the objectives set out in Article 40(c) to (h) of the Gas Directive but read with the following modifications— (a) in Article 40(c), for the words from “between” to the end substitute “ , including enabling the development of appropriate cross-border transmission capacities to meet demand; ”, (b) in Article 40(d), omit “, in line with general energy policy objectives,”, (c) in Article 40(f), omit “and foster market integration”, and (d) in Article 40(g), for “their national market” substitute “ the energy market in Great Britain ”;

9

In section 4B (exceptions from sections 4AA to 4A), in subsection (4), after “any”, in the second place it occurs, insert “ retained ”.

10

(1) Section 4C (duty of the Gas and Electricity Markets Authority as regards binding decisions of the Agency or European Commission) is amended as follows.

(2) Renumber the existing section as subsection (1).

(3) After subsection (1) insert—

(2) For the purposes of subsection (1), a binding decision does not include a decision that is not, or so much of a decision as is not, retained EU law.

11

(1) Section 4D (Gas and Electricity Markets Authority to consult and cooperate with other authorities) is amended as follows.

(2) In subsection (1)—

(a) for “functions as designated regulatory authority for Great Britain” substitute “ designated regulatory functions ”;

(b) in paragraph (a), for the words from “Agency” to “States” substitute “ Northern Ireland Authority ”;

(i) for the words from “Agency and” to “States” substitute “ Northern Ireland Authority ”;

(ii) for “they” substitute “ it ”;

(iii) for the words from “their” to “to gas” substitute “ its designated regulatory functions ”.

(3) In subsection (2)—

(a) for the words from “designated” to “Britain” substitute “ Northern Ireland Authority ”;

(b) omit “, within that region,”;

(d) in paragraph (d)—

(i) for “cross-border trade in gas” substitute “ trade in gas between Great Britain and Northern Ireland ”;

(ii) for “cross-border capacity” substitute “ capacity between Great Britain and Northern Ireland ”;

(e) omit paragraph (f) (but not the “and” following it).

(4) In subsection (3)—

(a) omit the definition of “network code”;

(b) omit the definition of “region” and the “and” following it.

12

In section 8D (application for certification), in subsection (3)—

(a) omit “on or after 3 March 2013”;

(b) for “third country”, in both places, substitute “ country outside the United Kingdom ”;

(d) in paragraph (b)—

(i) omit “to the Secretary of State”;

(ii) omit “or any other EEA state”.

13

(1) Section 8E (report where applicant connected with a country outside the European Economic Area) is amended as follows.

(2) In the heading, for “European Economic Area” substitute “ United Kingdom ”.

(3) In subsection (1), for “third country”, in both places, substitute “ country outside the United Kingdom ”.

(4) In subsection (2), omit “or any other EEA state”.

(5) In subsection (5)(b), omit “third”.

14

Notwithstanding the amendments of sections 8D and 8E of the Gas Act 1986 made by regulations 12 and 13, if an application under section 8D is made before IP completion day and the applicant is a person from an EEA state or a person controlled by a person from an EEA state—

(a) the Gas and Electricity Markets Authority is not required to notify the Secretary of State of the application under section 8D(3), and

(b) the Secretary of State is not required to prepare a report under section 8E in relation to the application.

15

(1) Section 8F (certification) is amended as set out in paragraphs (2) to (5).

(2) In subsection (1)—

(a) omit “preliminary”;

(b) for “it should” substitute “ to ”.

(3) In subsection (4)—

(a) omit “preliminary”;

(b) after paragraph (a) insert “ and ”;

(4) Omit subsections (5) to (8).

(5) After subsection (8) insert—

(9) The Authority must publish its decision to certify or to refuse to certify the applicant, together with the reasons for it, in such manner as it considers appropriate.

(6) Where, immediately before IP completion day, the Gas and Electricity Markets Authority has made a preliminary decision under section 8F of the Gas Act 1986 on an application for certification, but not a final decision under Article 3 of Regulation (EC) No 715/2009 of the European Parliament and of the Council of 13 July 2009 on conditions for access to the natural gas transmission networks and repealing Regulation (EC) No 1775/2005, the Authority's preliminary decision is to be treated on and after IP completion day as if it were a final decision under Article 3 made immediately before IP completion day.

(7) If a preliminary decision of the Gas and Electricity Markets Authority is treated as a final decision to certify, or to refuse to certify, an applicant because of paragraph (6), the Authority must publish, in such manner as it considers appropriate, a document setting out that decision and the reasons for it.

16

(1) Section 8G (grounds for certification) is amended as follows.

(2) In subsection (1)—

(a) in paragraph (a)—

(i) omit “preliminary”;

(ii) for “an applicant should be certified” substitute “ to certify an applicant ”;

(b) omit paragraph (b).

(3) In subsection (2)—

(a) omit “decide that the applicant should be certified, or”;

(b) omit “six”.

(4) Omit subsection (6).

(5) In subsection (7)(b), for the words from “requirement” to the end substitute—

requirement— (i) in accordance with Article 36 of the Gas Directive (new infrastructure) before IP completion day and remains entitled to the benefit of it, or (ii) on the basis set out in Article 36(1) to (3) and (6) of the Gas Directive and remains entitled to the benefit of it.

(6) In subsection (9)—

(a) omit paragraph (a);

(b) in paragraph (b)—

(i) omit “must not decide that the applicant should be certified, and”;

(ii) omit “or any other EEA state”;

(7) After subsection (9) insert—

(10) For the purposes of subsection (4), Article 9(9) of the Gas Directive is to be treated as if the comparison with the provisions of Chapter 4 of the Gas Directive were a comparison with the provisions of Chapter 4 as they applied in relation to a member State immediately before IP completion day. (11) The references in subsection (5) to Article 14(1) and (2) of the Gas Directive are to be treated as references to those provisions with the following modifications— (a) Article 14(1) is to be read as if the second and third sentences were omitted; (b) Article 14(2)(b) is to be read as if after “Article 13” there were inserted— as implemented in relation to Great Britain immediately before IP completion day, disregarding for this purpose— (i) paragraph 2, (ii) paragraph 3 so far as relating to Article 41(6)(c), and (iii) paragraph 4 except as it relates to such minimum standards, if any, as apply in Great Britain (c) Article 14(2)(e) is to be read as if— (i) for “Regulation (EC) No 715/2009” there were substituted “ the Gas Regulation ”, and (ii) the words from “including” to the end were omitted.

17

(1) Section 8J (designation for the purposes of EU gas legislation) is amended as set out in paragraphs (2) to (5).

(2) In the heading, for “EU gas legislation” substitute “ the Gas Regulation ”.

(3) In subsection (2)—

(a) omit “fourth,”;

(b) for the words from “Article” to “operators)” substitute “ the Gas Regulation ”.

(4) In subsection (3), for “that Article” substitute “ the Gas Regulation ”.

(5) In subsection (4)—

(a) after paragraph (a) insert “ and ”;

(b) omit paragraph (c) and the “and” preceding it.

(6) A person who is designated as a gas transmission system operator under section 8J of the Gas Act 1986 for the purposes of Article 10(2) of the Gas Directive immediately before IP completion day is to be treated, on and after IP completion day, as a person who is designated as a gas transmission system operator under section 8J for the purposes of the Gas Regulation, if and for so long as the person designated or (as the case may be) the person who nominated the person designated continues on and afterIP completion day to hold a licence under section 7 or 7A of the Gas Act 1986 and to be certified under section 8F of that Act.

(7) In paragraph (6)—

“the Gas Directive” means Directive 2009/73/EC of the European Parliament and of the Council of 13 July 2009 concerning common rules for the internal market in natural gas and repealing Directive 2003/55/EC , as amended by Directive (EU) 2019/692 of the European Parliament and of the Council of 17 April 2019;

“the Gas Regulation” means Regulation (EC) No 715/2009 of the European Parliament and of the Council of 13 July 2009 on conditions for access to the natural gas transmission networks and repealing Regulation (EC) No 1775/2005.

18

(1) Section 8K (monitoring and review of certification) is amended as follows.

(2) In subsection (2)—

(a) omit “on or after 3 March 2013,”;

(b) for “third country” substitute “ country outside the United Kingdom ”;

(d) in paragraph (b), omit “or any other EEA state”.

(3) Omit subsections (3) and (4).

(4) In subsection (5), omit “also”.

(5) In subsection (10), omit “(4),”.

19

(1) Section 8M (report as to any connection of certified person with a country outside the European Economic Area) is amended as follows.

(2) In the heading, for “outside the European Economic Area” substitute “ outside the United Kingdom ”.

(3) In subsection (2), omit “or any other EEA state”.

(4) In subsection (5)(b), omit “third”.

20

(1) Notwithstanding the amendments of sections 8K and 8M of the Gas Act 1986 made by regulations 18 and 19, if and for so long as the condition in paragraph (2) is satisfied in relation to the person—

(a) the Gas and Electricity Markets Authority is not required to notify the Secretary of State under section 8K(2) about a person from a country outside the United Kingdom who has taken control of a certified person before IP completion day, and

(b) the Secretary of State is not required to prepare a report under section 8M in relation to the certified person.

(2) The condition is that the person was a person from an EEA state at the time of taking control and has continued to be such a person.

21

(1) Section 8N (continuation or withdrawal of certification) is amended as set out in paragraphs (2) to (9).

(2) In subsection (1)—

(a) for “8K(3) or (5)” substitute “ 8K(5) ”;

(b) for “8K(4) or (6)” substitute “ 8K(6) ”;

(i) omit “preliminary”;

(ii) for “that the certification should be continued” substitute “ to continue the certification ”;

(d) in paragraph (b)—

(i) omit “preliminary”;

(ii) for “that the certification should be withdrawn” substitute “ to withdraw the certification ”.

(3) In subsection (2)—

(a) omit “preliminary”;

(b) for “that the certification should be continued” substitute “ to continue the certification ”.

(4) In subsection (3)—

(a) in paragraph (a)—

(i) omit “preliminary”;

(ii) for “that the certification should be continued” substitute “ to continue the certification ”;

(b) in paragraph (b)—

(i) omit “preliminary”;

(ii) for “that the certification should be withdrawn” substitute “ to withdraw the certification ”.

(5) In subsection (4)—

(a) omit “preliminary”;

(b) for “that the certification should be continued” substitute “ to continue the certification ”.

(6) In subsection (5)—

(a) omit “preliminary”;

(b) omit paragraph (b) and the “and” before it.

(7) Omit subsections (6) to (9).

(8) After subsection (9) insert—

(9A) The Authority must publish its decision to continue a certification, or to withdraw a certification, together with the reasons for it, in such manner as it considers appropriate.

(9) In subsection (10)—

(a) in the words before paragraph (a), for “8G(9)(a) and (b)” substitute “ 8G(9)(b) ”;

(b) in paragraph (a), for “8G(9)(a) and (b)” substitute “ 8G(9)(b) ”.

(10) Where, immediately before IP completion day, the Gas and Electricity Markets Authority has made a preliminary decision under section 8N of the Gas Act 1986 on a review under section 8K(5) or (8), but not a final decision under Article 3 of Regulation (EC) No 715/2009 of the European Parliament and of the Council of 13 July 2009 on conditions for access to the natural gas transmission networks and repealing Regulation (EC) No 1775/2005, the Authority's preliminary decision is to be treated on and after IP completion day as if it were a final decision under Article 3 made immediately before IP completion day.

(11) If a preliminary decision of the Gas and Electricity Markets Authority is treated as a final decision to continue a certification, or to withdraw a certification, because of paragraph (10), the Authority must publish, in such manner as it considers appropriate, a document setting out that decision and the reasons for it.

22

In section 8Q (interpretation of sections 8C to 8Q), in subsection (1)—

(a) in the definition of “certified”, for the words from “taken” to “certified) by” substitute “ certified by ”;

(b) in the definition of “person from a third country”, for “third country”, in both places, substitute “ country outside the United Kingdom ”;

23

(1) Section 8R (independence of storage facilities) is amended as follows.

(2) In subsection (2), for “an EEA state” substitute “ the United Kingdom ”.

(3) In subsection (3), for “an EEA state” substitute “ the United Kingdom ”.

(4) In subsection (4), for “an EEA state” substitute “ the United Kingdom ”.

24

In section 19A (application of section 19B to storage facilities), omit subsection (2C).

25

(1) Section 19AA (review and revocation of exemptions under section 19A) is amended as follows.

(2) In the heading, omit “Review and”.

(3) Omit subsection (1).

(4) Omit subsection (2).

(5) In subsection (4)—

(a) in paragraph (a)—

(i) after “if” insert “ before IP completion day”;

(ii) after “(1)” insert “ (as it then had effect) ”;

(b) in paragraph (b), after “if,” insert “ before IP completion day and ”;

(c) if— (i) before IP completion day the Authority sent the European Commission a copy of the exemption and terms under subsection (1) (as it then had effect), and (ii) the European Commission does not act as described in paragraph (a) or (b) before IP completion day, the date 4 months after the Authority sent the European Commission a copy of the exemption and terms under subsection (1) or IP completion day, whichever is the sooner;

(d) after paragraph (c) insert—

(d) if the decision to give the exemption was published under section 19A(11) on or after IP completion day, the date on which the decision was published under section 19A(11).

26

In section 19C (application of section 19D to LNG facilities), omit subsection (2C).

27

(1) Section 19CA (review and revocation of exemptions under section 19C) is amended as follows.

(2) In the heading, omit “Review and”.

(3) Omit subsection (1).

(4) Omit subsection (2).

(5) In subsection (4)—

(a) in paragraph (a) —

(i) after “if” insert “ before IP completion day ”;

(ii) after “(1)” insert “ (as it then had effect) ”;

(b) in paragraph (b), after “if,” insert “ before IP completion day and ”;

(c) if— (i) before IP completion day the Authority sent the European Commission a copy of the exemption and terms under subsection (1) (as it then had effect), and (ii) the European Commission does not act as described in paragraph (a) or (b) before IP completion day, the date 4 months after the Authority sent the European Commission a copy of the exemption and terms under subsection (1) or IP completion day, whichever is the sooner;

(d) after paragraph (c) insert—

(d) if the decision to give the exemption was published under section 19C(10) on or after IP completion day, the date on which the decision was published under section 19C(10).

28

(1) Section 19D (acquisition of rights to use LNG facilities) is amended as follows.

(2) In subsection (11B), for the words from “, within” to “that paragraph;” substitute “ which applies to the owner; ”.

(3) After subsection (12) insert—

(13) An obligation is a public service obligation for the purposes of this section if— (a) it is imposed by or under a provision of an Act, and (b) the provision is identified in a notice issued by the Secretary of State as a provision imposing, or enabling the imposition of, a public service obligation within the meaning of Article 3(2) of the Gas Directive (as it had effect immediately before IP completion day). (14) For the purposes of subsection (13), the reference to Article 3(2) is to be read as if the reference in that provision to natural gas undertakings of the Community were a reference to natural gas undertakings of the United Kingdom.

29

(1) Section 19DZA (duty to allow others to use LNG import or export facilities: exemptions in relation to take-or-pay commitments) is amended as follows.

(2) In subsection (5)(b)(ii), for the words from “, within” to “that paragraph;” substitute “ which applies to the owner; ”.

(3) After subsection (5) insert—

(5A) In subsection (5)(b)(ii) “public service obligation” has the same meaning as in section 19D.

(4) Omit subsection (7).

(5) Omit subsection (9).

30

In the italic heading preceding section 27B, for “Article 41 Disputes” substitute “ Section 27B disputes ”.

31

(1) Section 27B (meaning of “Article 41 dispute”) is amended as follows.

(2) In the title, for “ “Article 41” substitute “ “section 27B”.

(3) In subsection (1)—

(a) for “an “Article 41 dispute”” substitute “ a “section 27B dispute” ”;

(b) in paragraph (b), for the words from “under” to “Directive” substitute “ which falls within subsection (2A) ”.

(4) After subsection (2) insert—

(2A) An obligation of the person complained against falls within this subsection if it is— (a) an obligation under a relevant condition or relevant requirement in relation to that person imposed before IP completion day for the purpose of implementing the Gas Directive, including such an obligation as modified on or after IP completion day, or (b) an obligation under a relevant condition or relevant requirement in relation to that person imposed on or after IP completion day which, if it had been imposed immediately before IP completion day, would have been an obligation imposed for the purpose of implementing the Gas Directive.

32

(1) Section 27C (determination of disputes) is amended as follows.

(2) In subsection (1), for “An Article 41” substitute “ A section 27B ”.

(3) In subsection (2), for “An Article 41” substitute “ A section 27B ”.

(4) In subsection (3), for “an Article 41” substitute “ a section 27B ”.

33

(1) Section 27D (time limit for determinations) is amended as follows.

(2) In subsection (1), for “an Article 41” substitute “ a section 27B ”.

(3) In subsection (4)(a), for “an Article 41” substitute “ a section 27B ”.

34

(1) Section 34 (general functions of the Gas and Electricity Markets Authority) is amended as follows.

(2) In subsection (2A)—

(a) in paragraph (b), for “and (r) to” substitute “ , (r) and ”;

(b) omit paragraph (d) (but not the “and” following it).

(3) After subsection (2A) insert—

(2B) For the purposes of subsection (2A)(c), the reference to Article 41(3)(a) is to be read as if the reference in that provision to Article 41 were a reference to Article 41 as implemented in Great Britain immediately before IP completion day.

35

(1) In section 48 (interpretation of Part 1 and savings), subsection (1) is amended as follows.

(2) Omit the definition of “designated regulatory authority”.

(3) Omit the definition of “designated regulatory authority for Great Britain”.

(4) At the appropriate place insert—

“designated regulatory function” means a function of the Authority or the Northern Ireland Authority conferred by— (a) a provision of retained EU law, ...or (b) a condition in a licence under section 7, 7ZA or 7A or Article 8 of the Gas (Northern Ireland) Order 1996 (S.I. 1996/275 (N.I. 2)), as that condition is modified from time to time on or after IP completion day, where that function was, immediately before IP completion day, one of its functions as a regulatory authority designated in accordance with Article 39 of the Gas Directive;.

(5) At the appropriate place insert—

“Northern Ireland Authority” means the Northern Ireland Authority for Utility Regulation;

36

In Schedule 2AB (duties of supply exemption holders), in paragraph 7 (determination of disputes), for “an Article 41” substitute “ a section 27B ”.

37

(1) Schedule 4B (provisions imposing obligations enforceable as relevant requirements) is amended as set out in paragraphs (2) and (3).

(2) In paragraph 3 (persons required to be certified as to independence), in paragraph (d), omit sub-paragraphs (i) to (iv).

(3) In paragraph 9 (gas undertakings which are relevant producers or suppliers)—

(a) omit paragraph (e);

(b) omit paragraph (f).

(4) For the purposes of sections 30A to 30O and 38 of the Gas Act 1986, a reference in Schedule 4B to the Gas Act 1986 to a provision of assimilated direct legislation is to be treated on or after IP completion day as including a reference to that provision as it had effect in EU law at any time before IP completion day.

Electricity Act 1989

38

The Electricity Act 1989 is amended as follows.

39

(1) Section 3A (the principal objective and general duties of the Secretary of State and the Gas and Electricity Markets Authority) is amended as follows.

(2) In subsection (1A)(c)—

(a) for “functions as designated regulatory authority for Great Britain” substitute “ designated regulatory functions ”;

(b) for the words from “objectives” to “Directive” substitute “ designated regulatory objectives ”.

(3) In subsection (5B), at the appropriate place insert—

“the designated regulatory objectives” means the objectives set out in Article 36(c) to (h) of the Electricity Directive but read with the following modifications— (a) in Article 36(c), for the words from “between” to the end substitute “ , including enabling the development of appropriate cross-border transmission capacities to meet demand; ”, (b) in Article 36(d), omit “, in line with general energy policy objectives,”, (c) in Article 36(f), omit “and foster market integration”, and (d) in Article 36(g), for “their national market” substitute “ the energy market in Great Britain ”;

40

In section 3D (exceptions from sections 3A to 3C), in subsection (5), after “any”, in the second place it occurs, insert “ retained ”.

41

(1) Section 3E (duty of the Gas and Electricity Markets Authority as regards binding decisions of the Agency or European Commission) is amended as follows.

(2) Renumber the existing section as subsection (1).

(3) After subsection (1) insert—

(2) For the purposes of subsection (1), a binding decision does not include a decision that is not, or so much of a decision as is not, retained EU law.

42

(1) Section 3F (Gas and Electricity Markets Authority to consult and cooperate with others) is amended as follows.

(2) In subsection (1)—

(a) for “functions as designated regulatory authority for Great Britain” substitute “ designated regulatory functions ”;

(b) in paragraph (a), for the words from “Agency” to “States” substitute “ Northern Ireland Authority ”;

(i) for the words from “Agency and” to “States” substitute “ Northern Ireland Authority ”;

(ii) for “they” substitute “ it ”;

(iii) for the words from “their” to “to electricity” substitute “ its designated regulatory functions ”.

(3) In subsection (2)—

(a) for the words from “designated” to “Britain” substitute “ Northern Ireland Authority ”;

(b) omit “, within that region,”;

(d) omit paragraph (f) (but not the “and” following it).

(4) In subsection (3)—

(a) omit the definition of “network code”;

(b) omit the definition of “region” and the “and” following it.

43

In section 10B (application for certification), in subsection (3)—

(a) omit “on or after 3 March 2013”;

(b) for “third country”, in both places, substitute “ country outside the United Kingdom ”;

(d) in paragraph (b)—

(i) omit “to the Secretary of State”;

(ii) omit “or any other EEA state”.

44

(1) — Section 10C (report where applicant connected with a country outside the European Economic Area) is amended as follows.

(2) In the heading, for “European Economic Area” substitute “ United Kingdom ”.

(3) In subsection (1), for “third country”, in both places, substitute “ country outside the United Kingdom ”.

(4) In subsection (2), omit “or any other EEA state”.

(5) In subsection (5)(b), omit “third”.

45

Notwithstanding the amendments of sections 10B and 10C of the Electricity Act 1989 made by regulations 43 and 44, where an application under section 10B is made before IP completion day and the applicant is a person from an EEA state or a person controlled by a person from an EEA state—

(a) the Gas and Electricity Markets Authority is not required to notify the Secretary of State of the application under section 10B(3), and

(b) the Secretary of State is not required to prepare a report under section 10C in relation to the application.

46

(1) Section 10D (certification) is amended as set out in paragraphs (2) to (5).

(2) In subsection (1)—

(a) omit “preliminary”;

(b) for “it should” substitute “ to ”.

(3) In subsection (4)—

(a) omit “preliminary”;

(b) after paragraph (a) insert “ and ”;

(4) Omit subsections (5) to (8).

(5) After subsection (8) insert—

(9) The Authority must publish its decision to certify or to refuse to certify the applicant, together with the reasons for it, in such manner as it considers appropriate.

(6) Where, immediately before IP completion day, the Gas and Electricity Markets Authority has made a preliminary decision under section 10D of the Electricity Act 1989 on an application for certification, but not a final decision under Article 51 of the Electricity Regulation (or Article 3 of its predecessor), the Authority's preliminary decision is to be treated on and after IP completion day as if it were a final decision under Article 51 of the Electricity Regulation made immediately before IP completion day.

(7) If a preliminary decision of the Gas and Electricity Markets Authority is treated as a final decision to certify, or to refuse to certify, an applicant because of paragraph (6), the Authority must publish, in such manner as it considers appropriate, a document setting out that decision and the reasons for it.

47

(1) Section 10E (grounds for certification) is amended as follows.

(2) In subsection (1)—

(a) in paragraph (a)—

(i) omit “preliminary”;

(ii) for “an applicant should be certified” substitute “ ... to certify an applicant ”;

(b) omit paragraph (b).

(3) In subsection (2), omit “decide that the applicant should be certified, or”.

(4) In subsection (8)—

(a) omit paragraph (a);

(b) in paragraph (b)—

(i) omit “must not decide that the applicant should be certified, and”;

(ii) omit “or any other EEA state”;

(5) After subsection (8) insert—

(9) For the purposes of subsection (4), Article 9(9) of the Electricity Directive is to be treated as if the comparison with the provisions of Chapter 5 of the Electricity Directive were a comparison with the provisions of Chapter 5 as they applied in relation to a member State immediately before IP completion day. (10) For the purposes of subsection (5), the references to Article 13(1) and (2) of the Electricity Directive are to be treated as references to those provisions with the following modifications— (a) Article 13(1) is to be read as if “Such designation shall be subject to approval by the Commission” were omitted; (b) Article 13(2)(b) is to be read as if the reference to Article 12 of the Electricity Directive were a reference to Article 12 with the omission of point (h); (c) Article 13(2)(e) is to be read as if— (i) for “Regulation (EC) No 714/2009” there were substituted “ the Electricity Regulation ”, and (ii) the words from “including” to the end were omitted.

48

(1) Section 10H (designation for the purposes of EU electricity legislation) is amended as set out in paragraphs (2) to (5).

(2) In the heading, for “EU electricity legislation” substitute “ the Electricity Regulation ”.

(3) In subsection (2), for the words from “Article” to “operators)” substitute “ the Electricity Regulation ”.

(4) In subsection (3), for “that Article” substitute “ the Electricity Regulation ”.

(5) In subsection (4)—

(a) after paragraph (a) insert “ and ”;

(b) omit paragraph (c) and the “and” preceding it.

(6) A person who is designated an electricity transmission system operator under section 10H of the Electricity Act 1989 for the purposes of Article 10(2) of the Electricity Directive immediately before IP completion day is to be treated, on and after IP completion day, as a person who is designated as an electricity transmission system operator under section 10H for the purposes of the Electricity Regulation, if and for so long as the person designated or (as the case may be) the person who nominated the person designated continues on and after IP completion day to hold a licence under section 6(1)(b) or (e) of the Electricity Act 1989 and to be certified under section 10D of that Act.

(7) In paragraph (6)—

“the Electricity Directive” means Directive 2009/72/EC of the European Parliament and of the Council of 13 July 2009 concerning common rules for the internal market in electricity and repealing Directive 2003/54/EC ;

49

(1) Section 10I (monitoring and review of certification) is amended as follows.

(2) In subsection (2)—

(a) omit “on or after 3 March 2013,”;

(b) for “third country” substitute “ country outside the United Kingdom ”;

(d) in paragraph (b), omit “or any other EEA state”.

(3) Omit subsections (3) and (4).

(4) In subsection (5), omit “also”.

(5) In subsection (10), omit “(4),”.

50

(1) Section 10K (report as to any connection of certified person with a country outside the European Economic Area) is amended as follows.

(2) In the heading, for “European Economic Area” substitute “ United Kingdom ”.

(3) In subsection (2), omit “or any other EEA state”.

(4) In subsection (5)(b), omit “third”.

51

(1) Notwithstanding the amendments of sections 10I and 10K of the Electricity Act 1989 made by regulations 49 and 50, if and for so long as the condition in paragraph (2) is satisfied in relation to the person—

(a) the Gas and Electricity Markets Authority is not required to notify the Secretary of State under section 10I(2) about a person from a country outside the United Kingdom who has taken control of a certified person before IP completion day, and

(b) the Secretary of State is not required to prepare a report under section 10K in relation to the certified person.

(2) The condition is that the person was a person from an EEA state at the time of taking control and has continued to be such a person.

52

(1) Section 10L (continuation or withdrawal of certification) is amended as set out in paragraphs (2) to (9).

(2) In subsection (1)—

(a) for “10I(3) or (5)” substitute “ 10I(5) ”;

(b) for “10I(4) or (6)” substitute “ 10I(6) ”;

(i) omit “preliminary”;

(ii) for “that the certification should be continued” substitute “ to continue the certification ”;

(d) in paragraph (b)—

(i) omit “preliminary”;

(ii) for “that the certification should be withdrawn” substitute “ to withdraw the certification ”.

(3) In subsection (2)—

(a) omit “preliminary”;

(b) for “that the certification should be continued” substitute “ to continue the certification ”.

(4) In subsection (3)—

(a) in paragraph (a)—

(i) omit “preliminary”;

(ii) for “that the certification should be continued” substitute “ to continue the certification ”;

(b) in paragraph (b)—

(i) omit “preliminary”;

(ii) for “that the certification should be withdrawn” substitute “ to withdraw the certification ”.

(5) In subsection (4)—

(a) omit “preliminary”;

(b) for “that the certification should be continued” substitute “ to continue the certification ”.

(6) In subsection (5)—

(a) omit “preliminary”;

(b) omit paragraph (b) and the “and” before it.

(7) Omit subsections (6) to (9).

(8) After subsection (9) insert—

(9A) The Authority must publish its decision to continue a certification, or to withdraw a certification, together with the reasons for it, in such manner as it considers appropriate.

(9) In subsection (10)—

(a) in the words before paragraph (a), for “10E(8)(a) and (b)” substitute “ 10E(8)(b) ”;

(b) in paragraph (a), for “10E(8)(a) and (b)” substitute “ 10E(8)(b) ”.

(10) Where, immediately before IP completion day, the Gas and Electricity Markets Authority has made a preliminary decision under section 10L of the Electricity Act 1989 on a review under section 10I(5) or (8), but not a final decision under Article 51 of the Electricity Regulation (or Article 3 of its predecessor), the Authority's preliminary decision is to be treated on and after IP completion day as if it were a final decision under Article 51 of the Electricity Regulation made immediately before IP completion day.

(11) If a preliminary decision of the Gas and Electricity Markets Authority is treated as a final decision to continue a certification, or to withdraw a certification, because of paragraph (10), the Authority must publish, in such manner as it considers appropriate, a document setting out that decision and the reasons for it.

53

In section 10O (interpretation of sections 10A to 10O), in subsection (1)—

(a) in the definition of “certified”, for the words from “taken” to “certified) by” substitute “ certified by ”;

(b) in the definition of “person from a third country”, for “third country”, in both places, substitute “ country outside the United Kingdom ”;

54

In section 25 (orders for securing compliance), in subsection (8)—

(a) in the definition of “regulated person” omit paragraph (e);

(b) in the definition of “relevant requirement”, omit paragraph (b) and the “and” before it.

55

In the italic heading preceding section 44B, for “Article 37 Disputes” substitute “ Section 44B disputes ”.

56

(1) Section 44B (meaning of “Article 37 dispute”) is amended as follows.

(2) In the title, for “ “Article 37” substitute “ “section 44B”.

(3) In subsection (1)—

(a) for “an “Article 37 dispute”” substitute “ a “section 44B dispute” ”;

(b) in paragraph (b), for the words from “under” to “Directive” substitute “ which falls within subsection (2A) ”.

(4) After subsection (2) insert—

(2A) An obligation of the person complained against falls within this subsection if it is— (a) an obligation under a relevant condition or relevant requirement in relation to that person imposed before IP completion day for the purpose of implementing the Electricity Directive, including such an obligation as modified on or after IP completion day, or (b) an obligation under a relevant condition or relevant requirement in relation to that person imposed on or after IP completion day which, if it had been imposed immediately before IP completion day, would have been an obligation imposed for the purpose of implementing the Electricity Directive.

57

(1) Section 44C (determination of disputes) is amended as follows.

(2) In subsection (1), for “An Article 37” substitute “ A section 44B ”.

(3) In subsection (2), for “An Article 37” substitute “ A section 44B ”.

(4) In subsection (3), for “an Article 37” substitute “ a section 44B ”.

58

(1) Section 44D (time limit for determinations) is amended as follows.

(2) In subsection (1), for “an Article 37” substitute “ a section 44B ”.

(3) In subsection (6)(a), for “an Article 37” substitute “ a section 44B ”.

59

In section 47 (general functions of the Gas and Electricity Markets Authority), after subsection (1C) insert—

(1D) The references in subsection (1C) to the following provisions of the Electricity Directive are to be treated as references to those provisions with the following modifications— (a) Article 37(1)(q) is to be read as if for “Regulation (EC) No 714/2009” there were substituted “ the Electricity Regulation ”; (b) Article 37(1)(s) is to be read as if— (i) the words “Community and third country” were omitted, and (ii) after “operators” there were inserted “ in the United Kingdom and transmission system operators in countries outside the United Kingdom ”; (c) Article 37(1)(t) is to be read as if the reference to Article 42 were to Article 42 with the omission of the words from “must cause” to “market and”; (d) Article 37(3)(f) is to be read as if for “Regulation (EC) No 714/2009” there were substituted “ the Electricity Regulation ”.

60

(1) In section 64 (interpretation of Part 1), subsection (1) is amended as follows.

(2) Omit the definition of “the CACM Regulation”.

(3) Omit the definition of “designated regulatory authority”.

(4) Omit the definition of “designated regulatory authority for Great Britain”.

(5) Omit the definition of “nominated electricity market operator”.

(6) At the appropriate place insert—

“designated regulatory function” means—a function of the Authority conferred by—a provision of retained EU law, ora condition in a licence under section 6 as that condition is modified from time to time after IP completion day,where that function was, immediately before IP completion day, one of its functions as a regulatory authority designated in accordance with Article 35 of the Electricity Directive;a function of the Northern Ireland Authority as a regulatory authority designated in accordance with Article 35 of the Electricity Directive;

(7) At the appropriate place insert—

“Northern Ireland Authority” means the Northern Ireland Authority for Utility Regulation;

61

In Schedule 2ZB (duties of supply exemption holders), in paragraph 8 (determination of exempt supply disputes), for “an Article 37” substitute “ a section 44B ”.

62

(1) Schedule 6A (provisions imposing obligations enforceable as relevant requirements) is amended as set out in paragraphs (1A) to (4A).

(1A) In paragraph 1 (relevant provisions in relation to all licence holders)—

(a) omit paragraph (ca);

(b) omit paragraph (f).

(2) In paragraph 4 (persons required to be certified as to independence)—

(a) in paragraph (ca), omit—

(i) “the CACM Regulation,”;

(ii) “or the FCA Regulation”;

(b) in paragraph (d)—

(i) in sub-paragraph (iv), for “16(1) to (4)” substitute “16(1), (2), (4)”;

(ii) omit sub-paragraph (v);

(iii) omit sub-paragraphs (viii) to (xi);

(iv) omit sub-paragraph (xiii);

(3) In paragraph 9 (electricity undertakings which are relevant producers or suppliers)—

(a) omit paragraph (e);

(b) omit paragraph (f).

(4) Omit paragraph 9B (nominated electricity market operators).

(4A) In paragraph 10 (interpretation), omit the definition of “the FCA Regulation”.

(5) For the purposes of sections 27A to 28 of the Electricity Act 1989, a reference in Schedule 6A to the Electricity Act 1989 to a provision of assimilated direct legislation is to be treated on and after IP completion day as including a reference to that provision as it had effect in EU law at any time before IP completion day.

Utilities Act 2000

63

The Utilities Act 2000 is amended as follows.

64

(1) Section 3A (designation of Gas and Electricity Markets Authority as regulatory authority for Great Britain) is amended as follows.

(2) For the heading substitute “ Exercise of designated regulatory functions etc ”.

(3) Omit subsection (1).

(4) In subsection (2)(a), for “functions as designated regulatory authority for Great Britain” substitute “ designated regulatory functions ”.

(5) Omit subsection (3).

65

Omit section 5ZA (report on activities as designated regulatory authority).

66

In section 33 (standard conditions of electricity licences), in subsection (1), omit paragraph (za).

67

In section 81 (standard conditions of gas licences), in subsection (2), omit “under section 2(2) of the European Communities Act 1972,”.

68

(1) Section 105 (general restrictions on disclosure of information) is amended as follows.

(2) In subsection (4)—

(a) in paragraph (ga)—

(i) after “requirement” insert “ or an EU REMIT requirement ”;

(ii) after “of REMIT” insert “ or any proceedings brought under or by virtue of EU REMIT in a member State ”;

(b) in paragraph (h), for “an” substitute “ a retained ”.

(3) In subsection (6A), for “another national regulatory authority” substitute “ a national regulatory authority of a member State ”.

(4) In subsection (10)—

(a) at the appropriate place insert—

“EU REMIT” means Regulation (EU) No 1227/2011 of the European Parliament and of the Council of 25 October 2011 on wholesale energy market integrity and transparency (OJ L 326, 8.12.2011, p.1–16), as it has effect in EU law as amended from time to time;

(b) at the appropriate place insert—

“EU REMIT requirement” means a requirement imposed by any of Articles 3(1) and (5), 4(1), (2) and (3), 5, 8(1) and (5), 9(1), (4) and (5) and 15 of EU REMIT;

69

(1) Section 105A (restrictions on disclosure in respect of cross-border exchanges of information) is amended as follows.

(2) In subsection (1)—

(a) in paragraph (a), for “functions as designated regulatory authority for Great Britain” substitute “ designated regulatory functions ”;

(b) in paragraph (b), for the words from “the designated” to “Gas Directive” substitute “ the Northern Ireland Authority for Utility Regulation in the exercise of its designated regulatory functions ”.

(3) After subsection (1) insert—

(1A) This section also applies to any information provided to the Authority on or after IP completion day— (a) for the purpose of enabling it to carry out its designated regulatory functions; and (b) by an authority designated in accordance with Article 35 of the Electricity Directive or Article 39 of the Gas Directive. (1B) This section also applies to any information provided to the Authority before IP completion day— (a) for the purpose of enabling it to carry out its functions as an authority designated in accordance with Article 35 of the Electricity Directive or Article 39 of the Gas Directive; and (b) by— (i) the Northern Ireland Authority for Utility Regulation, or (ii) an authority in another member State which is designated in accordance with Article 35 of the Electricity Directive or Article 39 of the Gas Directive, in accordance with Article 38(1) of the Electricity Directive or Article 42(1) of the Gas Directive.

(4) In subsection (2)(a), for “the originating authority”, in the first place it occurs, substitute “ the authority that provided the information to the Authority (“the originating authority”) ”.

(5) In subsection (3), for “Subsection (1)” substitute “ Subsection (1), (1A) or (1B) ”.

70

In section 106 (interpretation)—

(a) omit the definition of “the Agency”;

(b) omit the definition of “the Agency Regulation”;

(d) omit the definition of “designated regulatory authority for Great Britain”;

(e) at the appropriate place insert—

“designated regulatory function” means—a function of the Authority conferred by—a provision of retained EU law,a condition in a licence under section 7, 7ZA or 7A of the 1986 Act, as that condition is modified from time to time on or after IP completion day, ora condition in a licence under section 6 of the 1989 Act, as that condition is modified from time to time on or after IP completion day,where that function was, immediately before IP completion day, one of its functions as a regulatory authority designated in accordance with Article 35 of the Electricity Directive or Article 39 of the Gas Directive;a function of the Northern Ireland Authority conferred by—a provision of retained EU law, ora condition in a licence under Article 8 of the Gas (Northern Ireland) Order 1996 (S.I. 1996/275 (N.I. 2)), as that condition is modified from time to time on or after IP completion day,where that function was, immediately before IP completion day, one of its functions as a regulatory authority designated in accordance with Article 39 of the Gas Directive;a function of the Northern Ireland Authority as a regulatory authority designated in accordance with Article 35 of the Electricity Directive;

71

In Schedule 1 (the Gas and Electricity Markets Authority), in paragraph 2A (certain duties of members of the Authority), for “functions as designated regulatory authority for Great Britain” substitute “ designated regulatory functions ”.

Energy Act 2004

72

The Energy Act 2004 is amended as follows.

73

In section 137 (new standard conditions for transmission licences), in subsection (3), omit paragraph (za).

74

In section 146 (standard conditions for electricity interconnectors), in subsection (5), omit “under section 2(2) of the European Communities Act 1972,”.

75

In section 150 (standard conditions for gas interconnectors), in subsection (5), omit “under section 2(2) of the European Communities Act 1972,”.

76

In Schedule 21 (energy transfer schemes), in paragraph 4 (provision that may be made by a scheme), in sub-paragraph (2)(f), omit “, EU instrument”.

Consumers, Estate Agents and Redress Act 2007

77

In the Consumers, Estate Agents and Redress Act 2007 , in section 19A (guidance for energy consumers), in subsection (2), after “Gas Directive” insert “ which is in force immediately before IP completion day”.

PART 3 — Amendment of subordinate legislation: Great Britain

The Electricity Safety, Quality and Continuity Regulations 2002

78

In the Electricity Safety, Quality and Continuity Regulations 2002 , in regulation 1 (citation, commencement and interpretation)—

(a) in paragraph (2), for “EEA State” substitute “ country or territory ”.

(b) omit paragraph (3).

The Electricity (Applications for Licences, Modifications of an Area and Extensions and Restrictions of Licences) Regulations 2010

79

In the Electricity (Applications for Licences, Modifications of an Area and Extensions and Restrictions of Licences) Regulations 2010 , in regulation 3 (interpretation), in paragraph (1), in the definition of “point of single contact”, for the words from “an” to the end substitute “ the electronic assistance facility referred to in regulation 38 of the Provision of Services Regulations 2009 ; ”.

The Gas (Applications for Licences and Extensions and Restrictions of Licences) Regulations 2010

80

In the Gas (Applications for Licences and Extensions and Restrictions of Licences) Regulations 2010 , in regulation 3 (interpretation), in paragraph (1), in the definition of “point of single contact”, for the words from “an” to the end substitute “ the electronic assistance facility referred to in regulation 38 of the Provision of Services Regulations 2009; ”.

The Electricity and Gas (Internal Markets) Regulations 2011

81

(1) In the Electricity and Gas (Internal Markets) Regulations 2011 , regulation 51 (review of regulations) is amended as follows.

(2) Omit paragraph (2).

(3) In paragraph (6), omit—

(a) the definition of “2010 Amending Decision”;

(b) the definition of “the 2012 Amending Decision”;

(ca) the definition of “ACER Regulation”;

(d) the definition of “CACM Regulation”;

(da) the definition of “Electricity Regulation”;

(e) the definition of “ITC Regulation”;

(f) the definition of “Third Package”.

The Energy Supply Company Administration Rules 2013

82

In the Energy Supply Company Administration Rules 2013 , in rule 34 (venue and conduct of company meeting), in paragraph (5)(b), omit “other than the United Kingdom”.

The Electricity Capacity Regulations 2014

83

(1) In the Electricity Capacity Regulations 2014 , regulation 65 (protection of information) is amended as follows.

(2) In paragraph (2)(b)(v), for “an” substitute “ a retained ”.

(3) In paragraph (5), omit the definition of “EU obligation”.

PART 4 — Amendment of Northern Ireland legislation

The Electricity (Northern Ireland) Order 1992

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The Gas (Northern Ireland) Order 1996

104

The Gas (Northern Ireland) Order 1996 is amended as follows.

105

In Article 7 (exemptions from Article 6) in paragraph (4A), for “the relevant requirements and prohibitions laid down by the Directive” substitute “ relevant requirements and prohibitions contained in any provision of retained EU law ”.

106

In Article 8 (licences authorising supply etc.) for paragraph (7B) substitute—

(7B) In paragraph (4A) “published criteria” means criteria determined by the Department and published by it from time to time which are objective and non-discriminatory.

107

In Article 8C (application for certification) for paragraph (2) substitute—

(2) If the application is made on or after 3rd March 2013 and the applicant is a person from a country outside the United Kingdom or a person controlled by a person from a country outside the United Kingdom, the Authority must notify the Department as soon as is reasonably practicable.

108

(1) Article 8D (report where applicant connected with a country outside the European Economic Area) is amended as follows.

(2) In the heading, for “European Economic Area” substitute “ United Kingdom ”.

(3) In paragraph (1), for “third country”, in both places, substitute “ country outside the United Kingdom ”.

(4) In paragraph (2), omit “and the European Economic Area”.

(5) In paragraph (3)(b), omit “third”.

109

Notwithstanding the amendments of Articles 8C and 8D of the Gas (Northern Ireland) Order 1996 made by regulations 107 and 108, where an application under Article 8C is made before IP completion day and the applicant is a person from an EEA state or a person controlled by a person from an EEA state—

(a) the Northern Ireland Authority for Utility Regulation is not required to notify the Department for the Economy of the application under Article 8C(2), and

(b) the Department for the Economy is not required to prepare a report under Article 8D in relation to the application.

110

(1) Article 8E (certification) is amended as set out in paragraphs (2) to (6).

(2) In paragraph (1)—

(a) omit “preliminary”;

(b) for “it should” substitute “ to ”.

(3) In paragraph (3)—

(a) omit “preliminary”;

(b) after sub-paragraph (b) insert “ and ”;

(4) In paragraph (4), for “(a), (b) or (d)” substitute “ (a) or (b) ”.

(5) Omit paragraphs (5) and (6).

(6) After paragraph (6) insert—

(7) The Authority must publish its decision to certify or refuse to certify the applicant, together with the reasons for it, in such manner as it considers appropriate.

(7) Where, immediately before IP completion day, the Northern Ireland Authority for Utility Regulation has made a preliminary decision under Article 8E of the Gas (Northern Ireland) Order 1996 on an application for certification, but not a final decision under Article 3 of Regulation (EC) No. 715/2009 of the European Parliament and of the Council of 13 July 2009 on conditions of access to the natural gas transmission networks and repealing Regulation (EC) No. 1775/2005, the Authority's preliminary decision is to be treated on and after IP completion day as if it were a final decision under Article 3 made immediately before IP completion day.

(8) If a preliminary decision of the Northern Ireland Authority for Utility Regulation is treated as a final decision to certify, or to refuse to certify, an applicant because of paragraph (7), the Authority must publish, in such manner as it considers appropriate, a document setting out that decision and the reasons for it.

111

(1) Article 8F (grounds for certification) is amended as follows.

(2) For paragraph (1) substitute—

(1) This Article applies to a decision under Article 8E as to whether to certify an applicant.

(3) In paragraph (2)—

(a) for “decide that the applicant should be certified, or decide to certify the applicant,” substitute “ decide to certify the applicant ”;

(b) omit “four”.

(4) Omit paragraph (5).

(5) In paragraph (6), omit the words from “in accordance” to the end.

(6) In paragraph (7), omit “preliminary”.

(7) For paragraph (8) substitute—

(8) But, regardless of whether a certification ground applies under paragraph (2), the Authority must not certify the applicant if a report prepared by the Department under Article 8D states that the certification of the applicant would put at risk the security of gas supplies in the United Kingdom.

(8) At the end add—

(9) The references in paragraph (4) to Article 14(1) and (2) and 15(1) of the Directive are to be treated as references to those provisions with the following modifications— (a) in paragraph (1) of Article 14 the reference to “Member State” in the first sentence is to be read as if it were a reference to the Authority; (b) paragraph (1) of Article 14 is to be read as if the second and third sentences were omitted; (ba) in paragraph (2) of Article 14 the reference to “Member State” is to be read as if it were a reference to the Authority; (c) paragraph (2)(b) of Article 14 is to be read as if after “Article 13” there were inserted “as implemented in relation to Northern Ireland immediately before IP completion day, disregarding for this purpose— (i) paragraph 2, (ii) paragraph 3 so far as relating to Article 41(6)(c), and (iii) paragraph 4 except as it relates to such minimum standards, if any, as apply in Northern Ireland”; (d) paragraph (2)(e) of Article 14 is to be read as if— (i) the words “Regulation (EC) No. 715/2009” were a reference to the Gas Regulation, and (ii) the words from “including” to the end were omitted; (e) paragraph (1) of Article 15 is to be read as if, in the second sentence, “pursuant to Article 33” were omitted.

112

(1) Article 8H (designation for the purposes of EU gas legislation) is amended as set out in paragraphs (2) to (5).

(2) In the heading, for “EU gas legislation” substitute “ the Gas Regulation ”.

(3) In paragraph (2)—

(a) omit “or third”;

(b) for the words from “Article 10(2)” to the end substitute “ the Gas Regulation ”.

(4) In paragraph (3), for “that Article” substitute “ the Gas Regulation ”.

(5) In paragraph (4)—

(a) at the end of sub-paragraph (b) insert “ and ”;

(b) omit sub-paragraph (d) and the “and” before it.

(6) A person who is designated as a gas transmission system operator under Article 8H of the Gas (Northern Ireland) Order 1996 for the purposes of Article 10(2) of the Gas Directive immediately before IP completion day is to be treated, on and after IP completion day, as a person who is designated as a gas transmission system operator under Article 8H for the purposes of the Gas Regulation, if and for so long as the person designated or (as the case may be) the person who nominated the person designated continues on and after IP completion day to hold a licence under Article 8(1)(a) of the Gas (Northern Ireland) Order 1996 and to be certified under Article 8E of that Order.

(7) In paragraph (6)—

“the Gas Directive” means Directive 2009/73/EC of the European Parliament and of the Council of 13 July 2009 concerning common rules for the internal market in natural gas and repealing Directive 2003/55/EC , as amended by Directive (EU) 2019/692 of the European Parliament and of the Council of 17 April 2019;

“the Gas Regulation” means Regulation (EC) No 715/2009 of the European Parliament and of the Council of 13 July 2009 on conditions for access to the natural gas transmission networks and repealing Regulation (EC) No 1775/2005.

113

(1) Article 8I (monitoring and review of certification) is amended as follows.

(2) In paragraph (3)—

(a) for “3rd March 2013” substitute “ IP completion day ”;

(b) for “third country” substitute “ country outside the United Kingdom ”;

(3) In paragraph (4), omit “final”.

(4) Omit paragraphs (6) and (7).

(5) In paragraph (8), omit “or (6)”.

(6) In paragraph (12A), for “paragraphs (5) or (7)” substitute “ paragraph (5) ”.

114

(1) Article 8J (report as to any connection of a certified person with a country outside the European Economic Area) is amended as follows.

(2) In the heading, for “European Economic Area” substitute “ United Kingdom ”.

(3) In paragraph (1), for “a third country” substitute “ a country outside the United Kingdom ”.

(4) In paragraph (2), omit “and the European Economic Area”.

(5) In paragraph (3)(b), omit “third”.

115

(1) Article 8K (continuation or withdrawal of certification) is amended as set out in paragraphs (2) to (8).

(2) In paragraph (1)—

(a) omit “preliminary”;

(b) omit “that either”;

(d) for sub-paragraph (b) substitute—

(b) to withdraw the certification;

(3) In paragraph (2), for “that the certification should be continued” substitute “ to continue the certification ”.

(4) Omit paragraphs (3), (4) and (5).

(5) In paragraph (6)—

(a) omit “final”;

(b) after sub-paragraph (b) insert “ and ”;

(6) In paragraph (7), omit “final”.

(7) After paragraph (8) insert—

(8A) The Authority must publish its decision to continue a certification, or to withdraw a certification, together with the reasons for it, in such manner as it considers appropriate.

(8) In paragraph (9)—

(a) for “Article 8F(8)(a) and (b)” substitute “ Article 8F(8) ”;

(b) for “Article 8F(8)(b)” substitute “ Article 8F(8) ”.

(9) Where immediately before IP completion day, the Northern Ireland Authority for Utility Regulation has made a preliminary decision under Article 8K of the Gas (Northern Ireland) Order 1996 on a review under Article 8I(2), (4) or (6) but not a final decision under Article 3 of Regulation (EC) No. 715/2009 of the European Parliament and of the Council of 13 July 2009 on conditions for access to the natural gas transmission networks and repealing Regulation (EC) No. 1775/2005, the Authority's preliminary decision is to be treated on and after IP completion day as if it were a final decision under Article 3 made immediately before IP completion day.

(10) If a preliminary decision of the Northern Ireland Authority for Utility Regulation is treated as a final decision to continue a certification, or to withdraw a certification, because of paragraph (9), the Authority must publish, in such manner as it considers appropriate, a document setting out that decision and the reasons for it.

116

(1) Article 8L (interpretation) is amended as follows.

(2) In paragraph (1)—

(a) in the definition of “person from a third country”, for “third country”, in both places, substitute “ country outside the United Kingdom ”;

(b) in the definition of “review period”, omit “or (7)”;

(3) In paragraph (3), for “European Economic Area state” substitute “ country outside the United Kingdom ”.

(4) In paragraph (4), for “European Economic Area state” substitute “ country outside the United Kingdom ”.

117

For Article 9A (limitation of rights under exclusive licences) substitute—

(9A) The prohibition in Article 9(3) does not apply to the grant by the Department or the Authority of a licence under Article 8(1)(c) authorising the holder to supply a customer where the gas is supplied and conveyed through a direct line.

118

For Article 10A (compliance with community obligations) substitute—

(10A) (1) The conditions included in a licence must— (a) ensure that the licence holder and, if appropriate, any activity authorised by the licence and the construction or operation of any pipe-line, facility or associated apparatus used in connection with that activity meets the published criteria referred to in Article 8(7B); (b) require the licence holder to develop and publish technical safety criteria and rules which are objective and non-discriminatory; (c) require the licence holder to keep accounts in accordance with requirements corresponding to the requirements in Article 31 of the Directive and to have them audited in accordance with those requirements and must confer on the Department and the Authority a right of access to the licence holder's accounts for the purpose of ensuring compliance with those requirements. (2) For the purposes of paragraph (1)(c), the reference to Article 31 of the Directive is to be read as a reference to that Article with the modifications that— (a) in paragraph (2), in the first sub-paragraph, the words from “adopted pursuant” to the end are omitted; and (b) in paragraph (3), the third sentence is omitted. (3) Conditions included in a licence under Article 8(1)(a) must, having regard to the activities authorised by the licence, require the holder— (a) where the holder balances gas inputs to and offtakes from any pipeline used under the licence, to adopt, follow, and make publicly available, rules which are objective, transparent and non-discriminatory; (b) to procure energy used for carrying out the holder's functions in accordance with procedures which are transparent, non-discriminatory and market based; (c) where appropriate in relation to the holder's circumstances, to carry out tasks corresponding to the tasks mentioned in Article 25(1) of the Directive; (d) to refrain from discriminating between persons or classes of person using or intending to use any pipe-line, facility or associated apparatus operated for the purposes of the licence; (e) to provide such persons with the information they need for efficient access to and use of the system; (f) to provide any other licence holder mentioned in Article 25(3) of the Directive with sufficient information to achieve an outcome that corresponds to the outcome mentioned in that provision; (g) to comply with requirements for system access corresponding to the requirements mentioned in Article 32 of the Directive (as read with Article 2 of the Commission Decision); (ga) to comply with requirements for access to upstream pipeline networks, and requirements about the manner in which that access is to be provided, corresponding to the requirements mentioned in Article 34(1) and (2) of the Directive; (h) to take any measures necessary for the purpose of ensuring that information necessary for effective competition and for the effective functioning of the market is made public; (i) to facilitate (to the extent within the holder's control) the ability of customers to change suppliers within 3 weeks; (j) to facilitate (to the extent within the holder's control) the ability of customers to have access to consumption data. (4) For the purposes of paragraph (3)(g), the reference to Article 32 of the Directive is to be read as a reference to that Article with the modifications that— (a) for references to “Member States” there were substituted references to “ the Department ”; (b) in paragraph (1), for the words “in accordance with Article 41 by a regulatory authority referred to in Article 39(1)” there were substituted “ by the Authority ”; (c) in paragraph (3), for the reference to “Community competition rules” there were substituted a reference to “ retained EU law relating to competition ”. (4A) For the purposes of paragraph (3)(ga)— (a) “upstream pipeline networks” has the meaning given in Article 2(2) of the Directive; and (b) the references to Article 34(1) and (2) of the Directive are to be read as references to those provisions with the following modifications— (i) references to “Member States” are to be read as references to “the Department”; (ii) in Article 34(1) the last sentence is to be omitted; and (iii) in Article 34(2)(d), the reference to “Community law” is to be read as a reference to “retained EU law”. (5) Conditions included in a licence under Article 8(1)(a) must— (a) provide for the Authority to approve, in advance of their coming into operation, any terms and conditions— (i) for the connection and access to any pipe-line, facility or associated apparatus operated by the holder for the purposes of the licence including but not limited to the tariffs, or the method of determining the tariffs for such connection or access; and (ii) for the provision of any balancing services; and (b) provide that where the licence holder enters into a contract directly with a household customer (within the meaning given in Article 7D) for the provision to that customer of services under the licence, or makes arrangements in pursuance of which a household customer enters into a contract with another person for a supply of gas to that customer, then to the extent that this is within the licence holder's control— (i) the terms and conditions of any such contract comply with requirements which correspond to those mentioned in points (a) and (d) of paragraph 1 of Annex I to the Directive; and (ii) requirements corresponding to those mentioned in points (b), (c) and (g) of paragraph 1 of Annex I to the Directive are complied with in relation to the customer. (6) For the purposes of paragraph (5)(b)(ii), point (g) of paragraph 1 of Annex I to the Directive is to be read as if for the words “the national legislation applicable” there were substituted “ the Gas (Northern Ireland) Order 1996 ”. (7) The conditions included in a licence under Article 8(1)(a) granted to a person forming part of a vertically integrated undertaking must— (a) require that person to continue to be independent in terms of that person's legal form, organisation and decision-making in relation to that person's activities under the licence and to comply with requirements corresponding to those mentioned in Article 26(2) of the Directive for independence in terms of organisation and decision making, in particular the minimum criteria laid down thereby and to comply with requirements corresponding to the requirements in relation to communication and branding mentioned in Article 26(3) of the Directive; and (b) if the person carries on combined activity as the holder of a licence under Article 8(1)(a), (b), (c) and (d), require that person to comply with requirements corresponding to those mentioned in Article 29 of the Directive for independence in terms of legal form, organisation and decision making in relation to activities under the licence. (8) Paragraph (7)(a) does not prevent a person from acting as the holder of a licence of more than one type under Article 8(1). (9) For the purposes of paragraph (7)— (a) Article 26(2) of the Directive is to be read as if— (i) in point (c), for the words “in accordance with Article 41(6)”, there is substituted “ by the Authority ”; (ii) in point (d), for the words “to the regulatory authority referred to in Article 39(1)”, there is substituted “ to the Authority ”; (b) Article 26(3) of the Directive is be read as if for the words from “the Member States” to “or other competent bodies” there were substituted “ the Authority must monitor all the activities of the distribution system operator ”. (10) Paragraph (7)(a) does not apply in the case of a licence holder who does not supply gas to persons or premises, but who conveys gas from one place to another through one or more pipeline systems to which there are fewer than 100,000 premises connected. (11) The conditions included in a licence under Article 8(1)(a) must— (a) where the holder, or a person who holds a licence under Article 8(1)(a) in relation to whom the holder is a related conveyance licensee, is certified under the first certification ground in Article 8F, require the ownership unbundling requirement in Article 8G to continue to be met in relation to the holder; (b) where the holder is certified under the second certification ground in Article 8F or is designated as independent system operator for the purposes of that certification ground— (i) require that requirements corresponding to those mentioned in Articles 14(1) and (2) and 15(1) and (2) of the Directive which are relevant to the holder continue to be met; and (ii) require that requirements corresponding to those mentioned in Article 14(4) or 14(5) of the Directive which are relevant to the holder continue to be met; and (c) require the holder to notify the Authority if any of the other conditions referred to in this paragraph ceases or is likely to cease to be met. (12) For the purposes of paragraph (11)— (a) the references to Article 14 are to be read as references to that provision as if it contained the modifications in Article 8F(9) of this Order; (b) Article 14(4) is to be read as if the words “in accordance with this Chapter” were omitted; (c) Article 14(5) and 15(2) are to be read as if references to “the regulatory authority” were references to “the Authority”; (d) paragraph (1) of Article 15 is to be read as if, in the second sentence, “pursuant to Article 33” were omitted; (e) item (c) in Article 15(2) is to be read as if for the words “in accordance with Article 41(6)”, there were substituted “ by the Authority ”. (13) The conditions included in a licence under Article 8(1)(a), as appropriate having regard to the activities authorised by the licence, must require the holder to carry out tasks corresponding to those mentioned in Article 13(1) of the Directive. (14) The conditions included in a licence under Article 8(1)(b) must require the holder, as appropriate, having regard to the activities authorised by the licence— (a) to carry out tasks corresponding to the tasks mentioned in Article 13(1) of the Directive; (b) to comply with requirements corresponding to the requirements for access to storage mentioned in Article 33 of the Directive in accordance with criteria published by the Authority; and (c) where the person forms part of a vertically integrated undertaking, to comply with requirements corresponding to those mentioned in Article 15 of the Directive concerning independence in terms of legal form, organisation and decision-making in relation to its activities under the licence and, in particular, to comply with minimum criteria corresponding to those mentioned in Article 15(2) of the Directive. (15) For the purposes of paragraph (14)— (a) the reference to Article 15 of the Directive is to be read as a reference to that Article with the modifications set out in paragraph (12)(c), (d) and (e); (b) Article 33 is to be read as if— (i) in paragraph (1), the reference to “Member States” in the first sub-paragraph were a reference to the Department; (ia) in paragraphs (1), (3) and (4), any reference (however expressed) to “the regulatory authorities where Member States have so provided or Member States” were a reference to the Authority; (ii) in paragraph (1), the third sub-paragraph were omitted; (iii) in paragraph (3), in the second sub-paragraph the words from “by 1 January 2005” were a reference to “on an annual basis”. (16) The conditions included in a licence under Article 8(1)(c) must— (a) require the introduction and maintenance of safeguards to help any consumers referred to in Article 14(3) of the Energy (Northern Ireland) Order 2003 and individuals who are consumers in rural areas in particular to avoid disconnection from the gas pipe-line system; (b) ensure that consumers of gas have access to information (including information about the contractual terms and conditions offered to such consumers); (c) ensure that all customers can exercise their freedom to purchase gas from the supplier of their choice; (d) ensure that persons exercising that freedom are not charged therefor and are able to use transparent, simple and inexpensive complaints procedures; (e) require that information provided to consumers of gas (including information about the contractual terms and conditions offered to such consumers) by the holder of the licence are sufficiently transparent to enable the consumer to exercise that freedom; (f) make provision for customers wishing to change suppliers to be able to do so within 3 weeks; (g) ensure that customers have consumption data at their disposal and are able to give access to that data to other suppliers; (h) ensure that customers have access to information about sources of energy efficiency advice; (i) require that the holder of the licence provides its customers with a copy of the guidance which is to be published by the Authority pursuant to Article 7(5) of the Energy (Northern Ireland) Order 2003; (j) ensure that household customers are offered a wide choice of payment methods which do not unduly discriminate between customers; (k) ensure that the terms and conditions of supply contracts offered by the licence holder to household customers comply with requirements corresponding to those mentioned in points (a) and (d) of paragraph 1 of Annex I to the Directive; (l) make provision for customers to be protected from unfair or misleading selling methods; (m) ensure that household customers receive a final bill following changing suppliers no later than six weeks from the date on which the change occurs; and (n) ensure that the holder of the licence for at least five years maintains records of data corresponding to that required by Article 44 of the Directive. (17) Conditions included in a licence under Article 8(1)(d) must require the holder as appropriate having regard to the activities authorised by the licence— (a) to carry out tasks corresponding to the tasks mentioned in Article 13(1) of the Directive; (b) to keep accounts in terms corresponding to the requirements of Article 31 of the Directive and to have them audited in a manner corresponding to those requirements; and (c) to comply with requirements for access to LNG facilities corresponding to those mentioned in Article 32 of the Directive (as read with Article 2 of the Commission Decision). (18) Conditions included in a licence under Article 8(1)(d) must confer on the Department or the Authority a right of access to the licence holder's accounts for the purposes of ensuring compliance with the requirements mentioned in paragraph (17). (19) For the purposes of paragraph (17)— (a) the reference to Article 31 of the Directive is to be read as a reference to that Article with the modifications set out in paragraph (2); (b) the reference to Article 32 of the Directive is to be read as a reference to that Article with the modifications set out in paragraph (4). (20) Conditions included in a licence under Article 8(1) must ensure that the holder— (a) does not disclose commercially sensitive information obtained in the course of carrying out its business, except in accordance with a legal duty to disclose information; and (b) prevents information about its own activities which might be commercially advantageous from being disclosed in a discriminatory manner.

119

For Article 10AA (licensing and energy efficiency) substitute—

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