CHAPTER XU.K. FINAL AND TRANSITIONAL PROVISIONS

Article 37U.K.Power to grant derogations

1.[F1The national regulatory authority] may, at the request of an entity which operates an interconnector that has benefited from an exemption from Article 41(6), (8) and (10) of Directive 2009/73/EC in accordance with Article 36 of that Directive [F2as these Articles have effect in EU law,] or a similar exemption, F3... grant such entity a derogation from the application of one or more Articles of this Regulation in accordance with paragraphs 2 to 6 of this Article where the application of those Articles to such entity would have one or several of the following negative consequences. It would:

(a)not facilitate efficient gas trade and competition;

(b)not provide incentives for investment for new capacity or to maintain existing levels of capacity;

(c)unreasonably distort cross-border trade;

(d)distort competition with other infrastructure operators that offer services of a similar nature to those of the interconnector;

(e)not be implementable when taking into account the specific nature of interconnectors.

2.The entity requesting a derogation under paragraph 1 shall include in its request a detailed reasoning, with all supporting documents, including, where appropriate, a cost-benefit analysis, demonstrating that one or more of the conditions in paragraph 1(a) to (e) are complied with.

[F43.The national regulatory authority must endeavour to assess the request for a derogation jointly with any non-UK regulatory authorities whose approval is required and deal with the non-UK regulatory authorities in close cooperation. Where the national regulatory authority grants a derogation, the national regulatory authority must specify its duration in its decision.]

F54.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

[F65.The national regulatory authority may revoke a derogation if the circumstances or underlying reasons, or both, no longer apply. The national regulatory authority must endeavour to cooperate with any non-UK regulatory authorities whose approval is required in reaching a decision on whether to revoke a derogation.]

[F76.If the approval of both national regulatory authorities is required, they must cooperate with each other, and references in paragraphs 1, 3 and 5 to “the national regulatory authority” are to be read as references to “the national regulatory authorities.]

Textual Amendments