Commission Regulation (EU) 2017/459Show full title

Article 27 U.K. Design phase

1. The day after the publication of the market demand assessment report, the design phase shall start, if the demand assessment report identifies demand for incremental capacity projects.

2. Transmission system operators active at the respective interconnection point shall conduct technical studies for incremental capacity projects in order to design the incremental capacity project and coordinated offer levels based on technical feasibility and the market demand assessment reports.

3. No later than 12 weeks after the start of the design phase, the concerned transmission system operators shall conduct a joint public consultation on the draft project proposal F1 ... for a minimum of 1 month and no longer than 2 months. [F2 If a non-UK TSO is concerned, the transmission system operators must conduct a public consultation in accordance with this paragraph and endeavour to conduct that consultation jointly with the non-UK TSO.] [F3 The transmission system operators] shall take all reasonable steps to ensure cross-border coordination.

The consultation shall cover at least the following elements:

(a) a description of the incremental capacity project, including a cost estimate;

(b) the offer levels for bundled capacity products at the interconnection point;

(c) where relevant, based on conditional demand indications received, the transmission system operators' proposed alternative allocation mechanism including its justification;

(d) provisional timelines of the incremental capacity project;

(e) general rules and conditions that a network users must accept to participate and access capacity in the binding capacity allocation phase of the incremental capacity process, including any collateral to be provided by network users and how possible delays in the provision of capacity or the event of a disruption to the project are dealt with contractually;

(f) where a fixed price approach is followed for the incremental capacity project, the elements IND and RP described in Article 24(b) of Regulation (EU) 2017/460;

(g) the level of user commitments, expressed as an estimate of the f-factor as applied in accordance with Article 23, which, after having consulted with the transmission system operators, is proposed and subsequently approved by the concerned national regulatory authorities;

(h) any additional demand indications received in accordance with Article 26(7);

(i) whether the incremental capacity is likely to result in a sustained, significant decrease in the utilisation of other non-depreciated gas infrastructure in the same and adjacent entry-exit systems or along the same gas transport route.

4. In the process of designing coordinated offer levels, the transmission system operators shall closely cooperate with the involved national regulatory authorities and [F4 endeavour to] coordinate across borders in order to enable offers of incremental capacity as bundled products. The project proposal and design of coordinated offer levels shall take into account the results of the consultation provided for in paragraph 3.

Textual Amendments

F1 Words in Art. 27(3) omitted (31.12.2020) by virtue of The Gas (Security of Supply and Network Codes) (Amendment) (EU Exit) Regulations 2019 (S.I. 2019/531), reg. 1(2), Sch. 4 para. 19(2)(a); 2020 c. 1, Sch. 5 para. 1(1)

F2 Words in Art. 27(3) inserted (31.12.2020) by The Gas (Security of Supply and Network Codes) (Amendment) (EU Exit) Regulations 2019 (S.I. 2019/531), reg. 1(2), Sch. 4 para. 19(2)(b); 2020 c. 1, Sch. 5 para. 1(1)

F3 Words in Art. 27(3) substituted (31.12.2020) by virtue of The Gas (Security of Supply and Network Codes) (Amendment) (EU Exit) Regulations 2019 (S.I. 2019/531), reg. 1(2), Sch. 4 para. 19(2)(c); 2020 c. 1, Sch. 5 para. 1(1)

F4 Words in Art. 27(4) inserted (31.12.2020) by The Gas (Security of Supply and Network Codes) (Amendment) (EU Exit) Regulations 2019 (S.I. 2019/531), reg. 1(2), Sch. 4 para. 19(3); 2020 c. 1, Sch. 5 para. 1(1)