The Gas and Electricity (Dispute Resolution) Regulations 2009

Article 25 Disputes (amendment of the Gas Act 1986)

2.  After section 27A of the Gas Act 1986(1) insert—

“Article 25 Disputes

27B    Meaning of “Article 25 dispute”

(1) For the purposes of sections 27C and 27D a dispute is an “Article 25 dispute” if—

(a) it is wholly or mainly a dispute with respect to an issue mentioned in Article 19 or paragraph 1, 2 or 4 of Article 25 of the 2003 Directive; and

(b) it arises from a written complaint made against—

(i) a gas transporter,

(ii) the holder of a licence under section 7ZA (licences for operation of gas interconnectors), or

(iii) the owner of an LNG import facility to which section 19D applies,

and is a dispute between the complainant and the person complained against.

(2) The reference in subsection (1)(b) to a complaint does not include a reference to—

(a) a complaint about a modification (or a failure to make a modification) of—

(i) a term or condition of a relevant licence held by the person complained against, or

(ii) an obligation or right contained in any code or other document and having effect by virtue of such a term or condition; or

(b) a complaint made by a person as a household customer or potential household customer.

(3) In this section and section 27C—

“the 2003 Directive” means Directive 2003/55/EC of the European Parliament and of the Council concerning common rules for the internal market in natural gas;

“household customer” has the meaning given by Article 2(25) of the 2003 Directive;

“LNG import facility” has the meaning given in section 19E(1);

“owner”, in relation to an LNG import facility, includes any person occupying or having control of the facility;

“relevant licence” means a licence under section 7(2) or 7ZA.

27C    Determination of disputes

(1) An Article 25 dispute (other than one which may be referred to the Authority under or by virtue of any other provision of this Act) may be referred to the Authority under this section by the person who is the complainant in relation to the dispute.

(2) An Article 25 dispute referred to the Authority under this section shall be determined by order made either by the Authority or, if the Authority thinks fit, by an arbitrator (or in Scotland an arbiter) appointed by the Authority.

(3) The practice and procedure to be followed in connection with an Article 25 dispute referred to the Authority under this section shall be such as the Authority may consider appropriate.

(4) An order under this section—

(a) may include such incidental, supplemental and consequential provision as the person making the order considers appropriate; and

(b) shall be final.

(5) The provision that may be included in an order under this section by virtue of subsection (4)(a) above includes provision requiring either party to pay a sum in respect of the costs or expenses incurred by the person making the order (“costs provision”).

(6) In including costs provision in an order under this section, the person making the order shall have regard to the conduct and means of the parties and any other relevant circumstances.

(7) Costs provision included in an order under this section shall be enforceable—

(a) in England and Wales, as if it were a judgment of the county court;

(b) in Scotland, as if it were an extract registered decree arbitral bearing a warrant for execution issued by the sheriff.

(8) In the case of—

(a) a gas transporter, or

(b) the holder of a licence under section 7ZA,

sections 28 to 30F and 38 shall have effect as if references in those sections to a relevant requirement (other than the reference in section 28(8)) included references to any duty or other requirement imposed on that person by an order under this section.

(9) In the case of the owner of an LNG facility to which section 19D applies, section 22 shall have effect as if the directions referred to in that section as “relevant directions” included any duty or other requirement imposed on that person by an order under this section.

27D    Time limit for determinations

(1) An order determining an Article 25 dispute (whether made under section 27C or made under or by virtue of any other provision of this Act) shall be made within the permitted period.

(2) Subject to subsection (3), the permitted period is the period of two months beginning with the day on which the dispute is referred to the Authority.

(3) Where the person determining the dispute requests further information from anyone for the purposes of determining the dispute, the person may, by giving notice to the parties, extend the permitted period—

(a) by two months, or

(b) with the agreement of the complainant, by a longer period.

(4) If a person refers a dispute to the Authority, or purports to do so, and the Authority gives to that person a notice—

(a) specifying information which it requires in order to assess whether the dispute is an Article 25 dispute, or whether there is a dispute at all, and

(b) requesting the person to provide that information,

the dispute shall be treated for the purposes of subsection (2) as not referred to the Authority until the information is provided.”.

(1)

1986 c.44. Section 27A was inserted by section 10(1) of, and paragraph 26 of schedule 3 to, the Gas Act 1995 (c.45).