Part 2Security of energy supplies
CHAPTER 2Gas supply
81Power of the Gas and Electricity Markets Authority to direct a modification of the Uniform Network Code
1
After section 36B of the Gas Act 1986 insert—
36CPower to direct a modification of the UNC
1
The Authority may direct the operator of the gas National Transmission System to make a modification to which this section applies and which is specified in the direction to the Uniform Network Code.
2
This section applies to a modification—
a
which relates to the arrangements contained in the Code in respect of a Gas Supply Emergency, and
b
which the Authority considers is a market-based modification.
3
The Authority may give a direction under this section only if it considers that the modification will do either or both of the following—
a
decrease the likelihood of a Gas Supply Emergency occurring;
b
decrease the duration or severity of a Gas Supply Emergency which occurs.
4
In the exercise of the power under this section the Authority must have regard to the purposes of Standard Special Condition A11 of licences granted under section 7 of this Act.
5
For the purposes of subsection (2), a modification is “market-based” if it relates to the creation of financial incentives for gas shippers or gas transporters.
6
Before giving a direction under this section the Authority must consult such persons as it considers appropriate.
7
In this section—
“Gas Supply Emergency” and “National Transmission System” have the meaning given by the Uniform Network Code;
“the Uniform Network Code” means the document of that title required to be prepared pursuant to Standard Special Condition A11 of licences granted under section 7 of this Act.
2
The requirement of subsection (6) of section 36C of the Gas Act 1986 may be satisfied by consultation before, as well as consultation after, the passing of this Act.
3
In section 38A of the Gas Act 1986 (reasons for decisions), in subsection (1), after paragraph (e) insert—
ea
the giving of a direction under section 36C;
4
In section 173 of the Energy Act 2004 (appeals to the Competition Commission), after subsection (2) insert—
2A
This section also applies to a decision by GEMA to give a direction under section 36C of the Gas Act 1986 (power to direct a modification of the Uniform Network Code).
2B
But subsection (2A) does not have effect in relation to such a decision if it falls within a description of decisions for the time being excluded from the right of appeal under this section by an order made by the Secretary of State.
5
In section 175 of the Energy Act 2004 (determination of appeals), in subsection (4)(b) for “the purposes for which the relevant condition has effect” substitute
—
i
the purposes for which the relevant condition has effect (in the case of an appeal by virtue of section 173(2)), or
ii
the purposes of the power to give a direction under section 36C of the Gas Act 1986 or the purposes of Standard Special Condition A11 of licences granted under section 7 of that Act (in the case of an appeal by virtue of section 173(2A))
6
In Schedule 22 to the Energy Act 2004 (procedure for appeals under section 173 of that Act), in paragraph 3(6) (suspension of a decision) after “direction” insert “(including a direction being appealed against by virtue of section 173(2A) of this Act)”.