The Gas Transporter (Modification of Licence Conditions) Regulations 2011

EXPLANATORY NOTE

(This note is not part of the Regulations)

These Regulations implement, and address matters arising out of or related to, certain requirements of Directive 2009/73/EC of the European Parliament and of the Council of 13 July 2009 concerning common rules for the internal market in natural gas and repealing Directive 2003/55/EC (“the Gas Directive”).

The Regulations amend the conditions of licences granted under section 7 of the Gas Act 1986 (“gas transporter licences”) which are described as standard special conditions in those licences. In particular, the amendments remove the requirement that a licence holder must consent before the Gas and Electricity Markets Authority (“the Authority”) can amend relevant conditions in its licence, and enable the Authority to propose modifications to industry codes in the circumstances mentioned in Article 41(1)(d) of the Gas Directive. The remainder of the amendments make the changes necessary to standard special conditions to implement particular obligations on licence holders required by the Gas Directive, including those relating to customer switching, independence and accounting requirements and the building of cross-border capacity.

Regulation 4 requires the Secretary of State to review the operation and effect of these Regulations and publish a report within 5 years after they come into force and within every five years after that. Following a review it will fall to the Secretary of State to consider whether the Regulations should remain as they are, or be revoked or be amended. A further instrument would be needed to revoke the Regulations or amend them.

An impact assessment relating to the changes resulting from the implementation of the Gas Directive, including the changes made by these Regulations, is available. A transposition note setting out how the amendments made in the Regulations transpose particular requirements of the Gas Directive into the law of Great Britain is also available. These documents can be obtained from the Energy Regulatory Framework Team, Department of Energy and Climate Change, 3 Whitehall Place, London SW1A 2AW. Copies of the regulatory impact assessment and the transposition note have been placed in the libraries of both Houses of Parliament.