The Gas (Internal Markets) Regulations 2020

Made: 19th June 2020

Laid before Parliament: 22nd June 2020

Coming into force in accordance with regulation 1(2)

The Secretary of State is designated for the purposes of section 2(2) of the European Communities Act 1972 in relation to energy and energy sources.

The Secretary of State, in exercise of the powers conferred by section 2(2) of that Act, makes the following Regulations.

Citation, commencement, extent and interpretation

1

• (1) These Regulations may be cited as the Gas (Internal Markets) Regulations 2020.

• (2) Regulations 1 to 9 come into force on 14thJuly 2020 and regulations 10 and 11 come into force at the instant immediately before the point immediately before IP completion day .

• (3) These Regulations extend to England and Wales and Scotland.

• (4) In these Regulations “the 1986 Act” means the Gas Act 1986 .

Amendment to section 4D of the 1986 Act

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Duty to notify etc. the European Commission: agreements with third countries

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Amendment to section 19A of the 1986 Act

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Amendment to section 19C of the 1986 Act

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Amendment of section 48 of the 1986 Act

6

In Section 48(1) of the 1986 Act (interpretation of Part 1 and savings)—

• (a) for the definition of “the Gas Directive” substitute—

“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 the 2019 Amending Directive;

• (b) insert at the appropriate place—

“the 2019 Amending Directive” means Directive (EU) 2019/692 of the European Parliament and of the Council of 17 April 2019 amending Directive 2009/73/EC concerning common rules for the internal market in natural gas;

Amendment of section 106 of the Utilities Act 2000

7

In Section 106(1) of the Utilities Act 2000 (interpretation)—

• (a) for the definition of “the Gas Directive” substitute—

“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 the 2019 Amending Directive;

• (b) insert at the appropriate place—

“the 2019 Amending Directive” means Directive (EU) 2019/692 of the European Parliament and of the Council of 17 April 2019 amending Directive 2009/73/EC concerning common rules for the internal market in natural gas.

Amendment of section 19A of the Consumers, Estate Agents and Redress Act 2007

8

In Section 19A(9) of the Consumers, Estate Agents and Redress Act 2007 (guidance for energy consumers)—

• (a) for the definition of “the Gas Directive” substitute—

“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 the 2019 Amending Directive;

• (b) insert at the end—

“the 2019 Amending Directive” means Directive (EU) 2019/692 of the European Parliament and of the Council of 17 April 2019 amending Directive 2009/73/EC concerning common rules for the internal market in natural gas.

Modifications of standard conditions of gas interconnector licences

9

• (1) The standard conditions of a gas interconnector licence are amended as follows.

• (2) In condition 12 (application of licence conditions 10, 11 and 11A: Exemption orders)—

• (a) for paragraph 7(e) substitute—

(e) having any or all of the relevant conditions under consideration not in effect, or suspended from operation, is not detrimental to competition in relevant markets, the effective functioning of the internal gas market, the efficient functioning of the regulated system to which the licensee's interconnector is connected, or security of supply in the internal gas market.

• (b) in paragraph 15, after the definition of “relevant date” insert—

“relevant markets” means those gas markets in Member States likely to be affected by the licensee's interconnector.

• (3) In this regulation “gas interconnector licence” means a licence granted under section 7ZA of the 1986 Act (licences for operation of gas interconnectors) .

Revocation etc.

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• (1) The 1986 Act is amended in accordance with paragraphs (2) to (6).

• (2) Section 4D(1)(d) is repealed.

• (3) In section 4D(3)—

• (a) at the end of the definition of “region” insert “ and ”;

• (b) in paragraph (d) of the definition of “relevant national authority” for “Authority; and” substitute “ Authority. ”;

• (c) omit the definition of “third country”.

• (4) Section 4E is repealed.

• (5) In section 19A—

• (a) for subsection (8)(e) substitute—

(e) the exemption will not be detrimental to competition, the operation of an economically efficient gas market or the efficient functioning of the pipeline system connected or to be connected to the facility.

• (b) omit subsection (12).

• (6) In section 19C—

• (a) for subsection (7)(e) substitute—

(e) the exemption will not be detrimental to competition, the operation of an economically efficient gas market or the efficient functioning of the pipeline system connected or to be connected to the facility.

• (b) omit subsection (11).

• (7) Accordingly, regulations 2 to 5 are revoked.

11

• (1) The standard conditions of a gas interconnector licence are amended in accordance with paragraph (2).

• (2) In condition 12 of the standard conditions of a gas interconnector licence—

• (a) for paragraph 7(e) substitute—

(e) having any or all of the relevant conditions under consideration not in effect, or suspended from operation, is not detrimental to competition or the effective functioning of the internal gas market, or the efficient functioning of the regulated system to which the licensee's interconnector is connected.

• (b) omit from paragraph 15—

“relevant markets” means those gas markets in Member States likely to be affected by the licensee's interconnector.

• (3) Accordingly, regulation 9 is revoked.

Signed

Kwasi Kwarteng — Minister of State — 2020-06-19

Explanatory note

(This note is not part of the Regulations)

Footnotes

[^f00001]: S.I. 2010/761.

[^f00002]: 1972 c. 68. The European Communities Act 1972 was repealed by section 1 of the European Union (Withdrawal) Act 2018 (c. 16) with effect from exit day, but saved with modifications until IP completion day by section 1A of that Act (as inserted by section 1 of the European Union (Withdrawal Agreement) Act 2020 (c. 1). Section 2(2) of the European Communities Act 1972 was amended by section 27(1) of the Legislative and Regulatory Reform Act 2006 (c. 51) and by section 3(3) of, and Part 1 of the Schedule to, the European Union (Amendment) Act 2008 (c. 7). Paragraph 1A of Schedule 2 was inserted by section 28 of the Legislative and Regulatory Reform Act 2006 and amended by Part 1 of the Schedule to the European Union (Amendment) Act 2008 and S.I. 2007/1388.

[^f00003]: See section 39(1) of the European Union (Withdrawal Agreement) Act 2020 (c. 1).

[^f00004]: 1986 c. 44.

[^f00005]: Section 4D of the 1986 Act was inserted by S.I. 2011/2704 and amended by S.I. 2019/530, regulation 11.

[^f00006]: Section 19A of the 1986 Act was inserted by S.I. 2000/1937 and amended by S.I. 2011/2704.

[^f00007]: Section 19C of the 1986 Act was inserted by S.I. 2000/1937 and amended by S.I. 2011/2704; and S.I. 2019/530.

[^f00008]: Section 48 of the 1986 Act was amended by S.I. 2011/2704 and S.I. 2019/530.

[^f00009]: OJ No L 211, 14.08.2009, p. 94.

[^f00010]: OJ No L 117, 03.05.2019, p. 1.

[^f00011]: 2000 c. 27.

[^f00012]: 2007 c. 17.

[^f00013]: Section 7ZA was inserted by section 149(1) and (6) of the Energy Act 2004 (c. 20).

Editorial notes

[^c24163871]: S.I. 2010/761.

[^c24163881]: 1972 c. 68. The European Communities Act 1972 was repealed by section 1 of the European Union (Withdrawal) Act 2018 (c. 16) with effect from exit day, but saved with modifications until IP completion day by section 1A of that Act (as inserted by section 1 of the European Union (Withdrawal Agreement) Act 2020 (c. 1). Section 2(2) of the European Communities Act 1972 was amended by section 27(1) of the Legislative and Regulatory Reform Act 2006 (c. 51) and by section 3(3) of, and Part 1 of the Schedule to, the European Union (Amendment) Act 2008 (c. 7). Paragraph 1A of Schedule 2 was inserted by section 28 of the Legislative and Regulatory Reform Act 2006 and amended by Part 1 of the Schedule to the European Union (Amendment) Act 2008 and S.I. 2007/1388.

[^c24163891]: See section 39(1) of the European Union (Withdrawal Agreement) Act 2020 (c. 1).

[^c24163901]: 1986 c. 44.

[^c24163941]: Section 48 of the 1986 Act was amended by S.I. 2011/2704 and S.I. 2019/530.

[^c24163951]: OJ No L 211, 14.08.2009, p. 94.

[^c24163961]: OJ No L 117, 03.05.2019, p. 1.

[^c24163971]: 2000 c. 27.

[^c24163981]: 2007 c. 17.

[^c24163991]: Section 7ZA was inserted by section 149(1) and (6) of the Energy Act 2004 (c. 20).

[^key-c9234ee85f28c00c7bc4cc00bd8226d6]: Reg. 1 in force at 14.7.2020, see reg. 1(2)

[^key-a066f17a12f50c73a03c184948d76a5e]: Reg. 6 in force at 14.7.2020, see reg. 1(2)

[^key-c4afcce0e3d9f14bd7eb7636db85ba18]: Reg. 7 in force at 14.7.2020, see reg. 1(2)

[^key-5052db7a03e9a8e253b770f1d572e24a]: Reg. 8 in force at 14.7.2020, see reg. 1(2)

[^key-c379700640eec86d92620f6b2357edcd]: Reg. 9 in force at 14.7.2020, see reg. 1(2)

[^key-2dfc3183f131e233dc20c851b8f6334c]: Reg. 10 in force at 31.12.2020 in force at the instant immediately before the point immediately before IP completion day, see reg. 1(2)

[^key-de5eae3eb84acbca8c986737d1f642da]: Reg. 11 in force at 31.12.2020 in force at the instant immediately before the point immediately before IP completion day, see reg. 1(2)

[^key-c7984a85347e28cd96453434e173e0e3]: Regs. 2-5 revoked (31.12.2020 immediately before IP completion day) by The Gas (Internal Markets) Regulations 2020 (S.I. 2020/625), regs. 1(2), 10(7)