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16.—(1) Sub-paragraph (2) applies where—
(a)A has an unconsumed supply; and
(b)that unconsumed supply is consumed by a person (“B”) in respect of premises which B occupies with the permission of A.
(2) Subject to sub-paragraph (3), paragraphs 14(3) and 15(3) do not apply to an unconsumed supply to which sub-paragraph (1) applies.
(3) Sub-paragraph (2) does not apply where—
(a)B is a Northern Ireland Department which occupies premises with the permission of A, and A is another Northern Ireland Department; or
(b)B has entered into a construction lease with A in respect of the premises described in paragraph (1)(b).
(4) A “construction lease” is a lease entered into between A and B for a minimum period of 30 years where—
(a)B covenants—
(i)to obtain all necessary consents and approvals and to erect fencing or erect a building on the premises within a period of not more than 2 years from the lease commencement date;
(ii)to install all necessary gas, electricity and water supplies to the premises to comply with statutory requirements within a period of not more than 2 years from the lease commencement date; and
(iii)if required by A, to remove any buildings or works constructed by B on the premises at termination of the lease; and
(b)A covenants to compensate B for any improvements made to the premises by B during the period of the lease.
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