CHAPTER VINCREMENTAL CAPACITY PROCESS

Article 28Approval and publication

1.

F1Following the consultation and finalisation of the design phase for an incremental capacity project in accordance with Article 27, the involved transmissions system operators must submit the project proposal for an incremental capacity project to the relevant national regulatory authority for approvals. Where the project proposal concerns both national regulatory authorities, the transmission system operators must coordinate the submissions for approval. Where the project proposal concerns one or more non-UK TSOs, the involved transmission system operators must endeavour to ensure that the submissions for approval to the national regulatory authorities are coordinated with any non-UK TSO's submission for approval to any non-UK regulatory authority. The project proposal must also be published by the involved transmission system operators.

Subject to paragraph 1A, transmission system operators must ensure that the project proposal includes at least the following information:

(a)

all offer levels, reflecting the range of expected demand for incremental capacity at the relevant interconnection points as a result of the processes provided for in paragraph 3 of Article 27 and Article 26;

(b)

the general rules and conditions that a network user must accept to participate and access capacity in the binding capacity allocation phase of the incremental capacity process, including any collaterals 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;

(c)

timelines of the incremental capacity project, including any changes since the consultation described in paragraph 3 of Article 27, and measures to prevent delays and minimise the impact of delays;

(d)

the parameters defined in Article 22(1);

(e)

whether an exceptionally extended time horizon for contracting capacity for an additional period of up to 5 years beyond the allocation of up to 15 years after the start of the operational use may be required, in accordance with Article 30;

(f)

where applicable, the proposed alternative allocation mechanism including its justification pursuant to Article 30(2) as well as the conditions approved by the transmission system operator for the binding phase pursuant to Article 30(3);

(g)

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

F21A.

If a non-UK TSO is involved, transmission system operators must include in the project proposal the information that is listed in paragraph 1(a) to (g) in so far as they are able to do so and must endeavour to cooperate with the non-UK TSO to include all the information listed in paragraph 1(a) to (g).

F32.

Within 6 months of receipt of the complete project proposal by the relevant national regulatory authorities, the national regulatory authorities must publish decisions on the project proposal defined in paragraph 1. Where decisions are required by both national regulatory authorities, those decisions must be coordinated. Where the project proposal concerns any non-UK TSOs, the national regulatory authorities must endeavour to coordinate their decisions with the decision of any relevant non-UK regulatory authorities. The decisions must include justifications. The national regulatory authorities must, where relevant, inform each other and any relevant non-UK regulatory authority of the receipt of the project proposal and its completeness in order to determine the start of the 6 months period.

When preparing the national regulatory authority's decision, each national regulatory authority must consider the views of the other national regulatory authority, if it is also involved. Where the project proposal concerns any non-UK TSOs, the national regulatory authorities must consider the views of any relevant non-UK regulatory authorities. In any case the national regulatory authorities must take into account any detrimental effects on competition or the obligation on any relevant non-UK regulatory authority to take into account the effective functioning of the internal gas market, where those factors are associated with the incremental capacity projects concerned.

If a relevant national regulatory authority objects to the submitted project proposal, it must, if relevant, inform the other involved national regulatory authority and any involved non-UK regulatory authority as soon as possible. In such a situation, the national regulatory authorities must take all reasonable steps to work together, if both are involved, and must take all reasonable steps to work with any involved non-UK regulatory authorities to reach a common agreement.

F43.

Upon the publication of the decisions of the national regulatory authorities pursuant to paragraph 2 and no later than 2 months before the offer of incremental capacity in the annual yearly capacity auction, the transmission system operators must publish a notice. Transmission system operators must publish that notice jointly. Where relevant, the transmission system operators must endeavour to ensure that the notice is published jointly with any concerned non-UK TSO. The notice must include the following minimum information—

(a)

the information defined in paragraph 1 as approved by the national regulatory authorities; and

(b)

a template of the contracts related to the capacity offered.