This Regulation shall apply to interconnection points F1where transmission system operators carry out functions or activities that are regulated by a national regulatory authority. It may also apply to entry points from and exit points to F2other countries, subject to the decision of the relevant national regulatory authority. This Regulation shall not apply to exit points to end consumers and distribution networks, entry points from ‘liquefied natural gas’ (LNG) terminals and production facilities, and entry points from or exit points to storage facilities.

The standardised capacity allocation mechanisms F3provided for in this Regulation shall include an auction procedure for relevant interconnection points F4... and the standard capacity products to be offered and allocated. Where incremental capacity is offered, alternative allocation mechanisms may also be used, subject to the conditions set out in Article 30(2).

This Regulation shall apply to all technical and interruptible capacity at interconnection points as well as to additional capacity in the meaning of point 2.2.1 of Annex I of Regulation (EC) No 715/2009 and to incremental capacity. F5This Regulation does not apply to interconnection points where, immediately before IP completion day, either the UK or relevant member State held a derogation on the basis of Article 49 of Directive 2009/73/EC, as it had effect in EU law.

Where an alternative capacity allocation mechanism according to Article 30 is applied, Article 8(1) to (7), Articles 11 to 18, Article 19(2) and Article 37 shall not be applicable to the offer levels, unless decided otherwise by the relevant national regulatory authorities.

Where implicit capacity allocation methods are applied, national regulatory authorities may decide not to apply Articles 8 to 37.

In order to prevent foreclosure of downstream supply markets, national regulatory authorities may, after consulting network users, decide to take proportionate measures to limit up-front bidding for capacity by any single network user at interconnection points F6....