Compliance with Community obligations10A

1

Without prejudice to the generality of Article 10(1), a licence shall include such conditions as appear to the grantor to be necessary or expedient having regard to the requirements and prohibitions laid down in the Directive.

2

The conditions included in a licence in accordance with paragraph (1) shall, in particular—

a

ensure that the licence holder and, if appropriate, any activity authorised by the licence and the construction or operation of any pipeline, facility or associated apparatus used in connection with that activity meets the published criteria referred to in Article 8(7B);

b

require the licence holder to develop and publish the technical safety criteria and rules required by Article 6 of the Directive;

c

require the licence holder to keep accounts in accordance with the requirements of Article 17 of the Directive and to have them audited in accordance with those requirements and shall confer on the Department and the Authority a right of access to the licence holder’s accounts for the purpose of ensuring compliance with those requirements.

3

The conditions included in a licence in accordance with paragraph (1) shall, in particular, in the case of a licence under Article 8(1)(a) ensure that the holder does not disclose or abuse information contrary to Article 10 or 14 of the Directive and shall, having regard to the activities authorised by the licence, require the holder—

a

where he balances gas inputs to and offtakes from any pipeline used under the licence, to adopt and follow rules which comply with the relevant requirements of Articles 8(2) and 12(5) of the Directive;

b

to comply with the requirements of Article 8(4) of the Directive in procuring the energy used in the carrying out of his functions;

c

where appropriate to carry out the tasks laid down for him by Article 12(1) of the Directive;

d

to refrain from discriminating between persons using or intending to use any pipeline, facility or associated apparatus operated for the purposes of the licence, contrary to Article 12(2) of the Directive;

e

to provide such persons with the information required by Article 12(4) of the Directive;

f

to provide any other licence holder mentioned in Article 12(3) of the Directive with the information required by that provision; and

g

to comply with the requirements for system access laid down by Article 18 of the Directive (as read with Article 2 of the Commission Decision).

4

The conditions included in a licence in accordance with paragraph (1) shall, in particular, in the case of a licence under article 8(1)(a) provide for the Authority to approve in advance of their coming into operation any terms and conditions—

a

for the connection and access to any pipeline, facility or associated apparatus operated by the holder for the purposes of the licence including but not limited to the tariffs, or the method for determining the tariffs, for such connection or access; and

b

for the provision of any balancing services.

5

The conditions included in a licence in accordance with paragraph (1) shall, in particular, in the case of a licence under Article 8(1)(a) granted to a person forming part of a vertically integrated undertaking (within the meaning of the Directive)—

a

to whom Article 9(1) of the Directive applies, require that person to comply with the requirements referred to that provision for independence in terms of his legal form, organisation and decision making in relation to his activities under the licence and, in particular, to comply with the minimum criteria laid down by Article 9(2) of the Directive;

b

to whom Article 13(1) of the Directive applies, require that person to continue to comply with the requirements referred to in that provision for independence in terms of his legal form, organisation and decision making in relation to his activities under the licence and to comply with the requirements laid down by Article 13(2) of the Directive for independence in terms of its organisation and decision making, in particular the minimum criteria laid down thereby; and

c

who carries on the combination of activities to which Article 15 of the Directive applies require that person to comply with the requirements laid down by that provision for independence in terms of its legal form, organisation and decision making and meet the requirement of points (a) to (d) of that Article.

6

The conditions included in a licence in accordance with paragraph (1) shall, in particular, in the case of a licence under Article 8(1)(a) or (b), as appropriate having regard to the activities authorised by the licence, require the holder—

a

to carry out the tasks laid down for him by Article 8(1) of the Directive;

b

to comply with the requirements for access to storage laid down by Article 19 of the Directive.

7

The conditions included in a licence in accordance with paragraph (1) shall, in particular, in the case of a licence under Article 8(1)(c)—

a

require the introduction and maintenance of safeguards to help any consumers referred to in Article 14(3) of the Energy (Northern Ireland) Order 2003 and individuals who are consumers in rural areas in particular to avoid disconnection from the gas pipeline system;

b

ensure that consumers of gas have access to the information (including information about the contractual terms and conditions offered to such consumers) required by Article 3(3) of the Directive;

c

ensure that any person who is an eligible customer for the purposes of Article 23 of the Directive (as read with Article 2 of the Commission Decision) can exercise his freedom to purchase gas from the supplier of his choice within the meaning of that Article;

d

ensure that persons exercising that freedom are not charged therefor and are able to use for the purpose procedures which comply with item (f) of Annex A to the Directive; and

e

require that information provided to consumers of gas (including information about the contractual terms and conditions offered to such consumers) by the holder of such a licence are sufficiently transparent to enable the consumer to exercise that freedom.