Approval of proposed transportation agreement between GNI (UK) and Premier Transmission Limited

Approval of proposed transportation agreement between GNI (UK) and Premier Transmission Limited | Ofgem Please enable JavaScript in your web browser to get the best experience. BETA This site is currently in BETA. Help us improve by giving us your feedback . Close alert: Approval of proposed transportation agreement between GNI (UK) and Premier Transmission Limited Publication type: Decision Publication date: 5 March 2025 Topic: Gas interconnectors Print this page Related links Gas interconnector licence standard conditions Share the page Share on Facebook Share on Twitter Share on LinkedIn On 26 February 2025, a transportation agreement between GNI (UK) and Premier Transmission Limited was submitted to the Authority for approval in accordance with standard licence condition 3 of the gas interconnector licence, 'Compliance with bilateral agreements'. This letter sets out our decision to approve the proposed agreement on the basis that its contents have been agreed by both parties. Main document Approval of proposed transportation agreement between GNI (UK) and Premier Transmission Limited [PDF, 83.12KB] Print this page Related links Gas interconnector licence standard conditions Share the page Share on Facebook Share on Twitter Share on LinkedIn Close - 1 - Standard conditions of the Gas Interconnector Licence – 8 April 2021 Consolidated conditions are not formal Public Register documents and should not be relied on GAS INTERCONNECTOR LICENCE: STANDARD CONDITIONS - 2 - Standard conditions of the Gas Interconnector Licence – 8 April 2021 Consolidated conditions are not formal Public Register documents and should not be relied on TABLE OF CONTENTS – GAS INTERCONNECTOR LICENCE PART II – THE STANDARD CONDITIONS .............................................................. - 4 - PART II - SECTION A: INTERPRETATION, APPLICATION AND PAYMENTS- 4 - Condition 1. Definitions and interpretation ..........................................................................- 4 - Condition 2. Payments by the licensee to the Authority.....................................................- 12 - Condition 3. Compliance with bilateral agreements ...........................................................- 13 - Condition 4. Provision of information to the Authority .....................................................- 16 - Condition 5. Information regarding technical rules and operation .....................................- 18 - Condition 6. Separation of accounts ...................................................................................- 20 - Condition 7. Not Used ........................................................................................................- 21 - Condition 8. Not Used ........................................................................................................- 22 - PART II - SECTION C: REVENUE ........................................................................... - 23 - Condition 9. Not Used ........................................................................................................- 23 - PART II - SECTION D: THIRD PARTY ACCESS .................................................. - 24 - Condition 10. Charging methodology to apply to third party access to the licensee’s interconnector - 24 - Condition 11. Requirement to offer terms for access to the licensee’s interconnector ........- 34 - Condition 11A. Approval of terms for access to the licensee’s interconnector .......................- 36 - Condition 12. Application of licence conditions 10, 11 and 11A: Exemption orders ..........- 42 - Condition 13. Capacity availability ......................................................................................- 48 - Condition 14. Dispute resolution ..........................................................................................- 51 - Condition 15. Not Used ............................................................................................................- 52 - Condition 16. Not Used ............................................................................................................- 52 - Condition 17. Not Used ............................................................................................................- 52 - Condition 18. Not Used ............................................................................................................- 52 - Condition 19. Operation and development of the interconnector.............................................- 53 - Condition 20. Prohibition of discrimination and cross-subsidies .............................................- 54 - Condition 21. General provisions on disclosure of information...............................................- 55 - Condition 22. Notification of changes that may affect eligibility for certification ..................- 56 - Condition 23. Regional Cooperation ........................................................................................- 58 - - 3 - Standard conditions of the Gas Interconnector Licence – 8 April 2021 Consolidated conditions are not formal Public Register documents and should not be relied on - 4 - Standard conditions of the Gas Interconnector Licence – 8 April 2021 Consolidated conditions are not formal Public Register documents and should not be relied on PART II – THE STANDARD CONDITIONS PART II - SECTION A: INTERPRETATION, APPLICATION AND PAYMENTS Condition 1. Definitions and interpretation 1. In these licence conditions unless the context otherwise requires: “Access Rules” means methodologies used to establish terms and conditions for access to (including use of) the licensee’s interconnector but not including those related to charges; the “Act” means the Gas Act 1986 the “Agency” means the Agency for the Cooperation of Energy Regulators established by Regulation (EC) No 713/2009 as construed as reference to and read in accordance with the correlation table in Annex II of Regulation (EU) 2019/942 establishing a European Union Agency for the Cooperation of Energy Regulators (recast) and as it had effect immediately before IP completion day. “ancillary service” means a service necessary for the operation of the licensee’s interconnector or an interconnected system; the “Directive” means 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 - 5 - Standard conditions of the Gas Interconnector Licence – 8 April 2021 Consolidated conditions are not formal Public Register documents and should not be relied on repealing Directive 2003/55/EC as it has effect immediately before IP completion day as read with the modifications set out in the Act; the “Authority” means the Gas and Electricity Markets Authority established under section 1 of the Utilities Act 2000 “information” includes (without limitation) any documents, accounts, estimates, returns, records or reports and data (whether in written, verbal or electronic form) and/or information in any form or medium whatsoever (whether or not prepared specifically at the request of the Authority) of any description specified by the Authority “integrated transmission system” means a system which includes both transmission and interconnection and which the regulatory authority, for the purpose of setting and/or approving system tariffs and/or a tariff or charging methodology, does not draw a distinction between usage of the transmission and the interconnection forming part of that system “interconnected system” means a system of a relevant system operator with which the licensee’s interconnector is connected or with which the licensee interfaces “interconnector capacity” means all interconnector capacity, including new interconnector capacity, which is available over the licensee’s interconnector; - 6 - Standard conditions of the Gas Interconnector Licence – 8 April 2021 Consolidated conditions are not formal Public Register documents and should not be relied on “IP completion day” “legally binding decision of the European Commission and / or the Agency” and “legally binding decisions of the European Commission and / or the Agency” “legally binding decision of the Agency or the European Commission” has the same meaning as that given in section 20(1) of the European Union (Withdrawal) Act 2018; means any legally binding decision or decisions of the European Commission and / or the Agency, but a binding decision does not include a decision that is not, or so much of a decision as is not, Retained EU law; means any legally binding decision of the Agency or European Commission, but a binding decision does not include a decision that is not, or so much of a decision as is not, Retained EU law “licensee’s interconnector” means the gas interconnector specified in Schedule 1 to this licence which the licensee is authorised to participate in the operation of by virtue of this licence “new interconnector capacity” “Northern Ireland Authority for Utility Regulation” means physical capacity, or a new capacity product (including virtual capacity for a counter flow of gas on the interconnector) which is made available over the licensee’s interconnector on or after 3 March 2011; means the body corporate established under Article 3 of the Energy (Northern Ireland) Order 2003; - 7 - Standard conditions of the Gas Interconnector Licence – 8 April 2021 Consolidated conditions are not formal Public Register documents and should not be relied on the “Regulation” means Regulation 2009/715/EC of the European Parliament and of the Council of 13 July 2009 on conditions for access to the natural gas transmission networks and repealing Regulation 2005/1775/EC, as amended by Commission Decision 2010/685/EU of 10 November 2010 amending Chapter 3 of Annex I to Regulation 2009/715/EC of the European Parliament and of the Council on conditions for access to the natural gas transmission networks. “regulatory authority” means any body (other than the Authority) designated by a member State whose responsibilities include the oversight or regulation of any of the activities or matters covered by this licence and where appropriate the Northern Ireland Authority for Utility Regulation; “related undertaking” means an “affiliated undertaking” and / or an “associated undertaking” both as defined in Article 2 of Directive 2013/34/EU (on the annual financial statements, consolidated financial statements and related reports of certain types of undertakings) as it has effect immediately before IP completion day and / or an undertaking which belongs to the same shareholders; “relevant gas transporter” means any holder of a gas transporter licence under section 7 of the Act to whose - 8 - Standard conditions of the Gas Interconnector Licence – 8 April 2021 Consolidated conditions are not formal Public Register documents and should not be relied on system the licensee’s interconnector is connected “relevant system operator” “Retained EU Law” relevant system operator” means a transmission system operator, distribution system operator, storage system operator or LNG system operator (where such phrases shall have the meaning given to them in Article 2 of the Directive); has the same meaning as that given in section 6(7) of the European Union (Withdrawal) Act 2018. 2. Any words or expressions used in Part I of the Act, the Utilities Act 2000 or the Energy Act 2004 shall, unless the contrary intention appears, have the same meaning when used in these conditions. 3. Except where the context otherwise requires, any reference to a numbered condition (with or without a letter) or Schedule is a reference to the condition or Schedule (with or without a letter) bearing that number in this licence, and any reference to a numbered paragraph (with or without a letter) is a reference to the paragraph bearing that number in the condition or Schedule in which the reference occurs, and reference to a Section is a reference to that Section in these conditions. 4. These conditions shall have effect as if, in relation to a licensee who is a natural person, for the words “it”, “its” and “which” there were substituted the words “he”, “him”, “his”, and “whom”, and similar expressions shall be construed accordingly. - 9 - Standard conditions of the Gas Interconnector Licence – 8 April 2021 Consolidated conditions are not formal Public Register documents and should not be relied on 5. Except where the context otherwise requires, a reference in a condition to a paragraph is a reference to a paragraph of that condition and a reference in a paragraph to a sub-paragraph is a reference to a sub-paragraph of that paragraph. 6. Any reference in these conditions to: (a) a provision thereof; (b) a provision of the standard conditions of gas supply licences; (c) a provision of the standard conditions of gas transporter licences; (d) Not used (e) a provision of the standard conditions of gas shipper licences, shall, if these conditions or the standard conditions in question come to be modified, be construed, so far as the context permits, as a reference to the corresponding provision of these conditions or the other standard conditions in question as modified. 7. In construing these conditions, the heading or title of any condition or paragraph shall be disregarded. 8. Any reference in a condition to the purposes of that condition generally is a reference to the purposes of that condition as incorporated in this licence and as incorporated in each other licence under section 7ZA of the Act (whenever granted) which incorporates it. 9. Where any obligation placed on the licensee under this licence is required to be performed by a specified date or time, or within a specified period, and where the licensee has failed so to perform by such date or time, or within such period, such obligation shall continue to be binding and enforceable after the specified date or - 10 - Standard conditions of the Gas Interconnector Licence – 8 April 2021 Consolidated conditions are not formal Public Register documents and should not be relied on time, or after the expiry of the specified period (but without prejudice to all rights and remedies available against the licensee by reason of the licensee’s failure to perform by that date or time, or within that period). 10. Anything required by or under these conditions to be done in writing may be done by facsimile transmission of the instrument in question or by other electronic means and, in such case: (a) the original instrument or other confirmation in writing shall be delivered or sent by pre-paid post as soon as is reasonably practicable, and (b) where the means of transmission had been agreed in advance between the parties concerned, in the absence of and pending such confirmation, there shall be a rebuttable presumption that what was received duly represented the original instrument. 11. The definitions referred to in this condition may include some definitions which are not used or not used exclusively in Sections A, B, C, D or E (which sections are incorporated in all gas interconnector licences). Where: (a) any definition is not used in Sections A, B, C, D or E that definition shall, for the purposes of this licence, be treated: (i) as part of the condition or conditions (and the Section) in which it is used; and (ii) as not having effect in the licence until such time as the condition in which the definition is used has effect within the licence in pursuance of that condition; (b) any definition which is used in Sections A, B, C, D or E and is also used in one or more other Sections (i) that definition shall only be modifiable in accordance with the modification process applicable to each of the conditions in which it is used; and - 11 - Standard conditions of the Gas Interconnector Licence – 8 April 2021 Consolidated conditions are not formal Public Register documents and should not be relied on (ii) if any such condition is modified so as to omit that definition, then the reference to that definition in the condition shall automatically cease to have effect. - 12 - Standard conditions of the Gas Interconnector Licence – 8 April 2021 Consolidated conditions are not formal Public Register documents and should not be relied on Condition 2. Payments by the licensee to the Authority Not used. - 13 - Standard conditions of the Gas Interconnector Licence – 8 April 2021 Consolidated conditions are not formal Public Register documents and should not be relied on PART II - SECTION B: GENERAL Condition 3. Compliance with bilateral agreements 1. The licensee shall enter into such bilateral agreements as may be reasonably required by any relevant gas transporter. Such agreements, and any amendments to these agreements, must be provided by the licensee to the Authority for its approval. 2. Where an agreement which falls within the scope of paragraph 1 has been approved by the Authority, and that approval was given prior to this licence being issued to the licensee, the licensee does not need to re-submit that agreement to the Authority under paragraph 1. Any subsequent amendments to that agreement must be submitted to the Authority for approval in accordance with the requirements in paragraph 1. 3. The licensee shall take all steps within its power to make such changes to agreements which fall within the scope of paragraph 1 as may be necessary from time to time to comply with the Regulation and to give full and timely effect to any relevant legally binding decision of the Agency or the European Commission. Duty to cooperate 4. The licensee will cooperate, as necessary, with the Authority and/or any person(s) appointed by the Authority or appointed pursuant to a direction of the Authority, to undertake any planning, project assurance and/or coordination/systems integration in order to give full effect to the conclusions of a “significant code review”. 5. Cooperation for the purposes of paragraph 4 may include but not be limited to: a) the sharing of such information as reasonable, and constructive participation in industry engagement in order to undertake appropriate - 14 - Standard conditions of the Gas Interconnector Licence – 8 April 2021 Consolidated conditions are not formal Public Register documents and should not be relied on planning of changes to IT systems or industry standard operational processes system changes pursuant to the conclusions of a SCR; b) the provision of such data as may be identified and reasonably requested in order to undertake testing and/or the population of any new central systems; c) the preparation and cleansing of such data as may reasonably be requested in order to facilitate live operation of the new central system; d) the provision of test scripts and results of any testing as may be requested by any person appointed to assure the success of any testing; e) all reasonable steps to: i) meet key programme milestones for the completion of any action(s) assigned to the licensee; ii) adhere to any remedial plan put in place to address any issues, delays or slippage that may impact the licensee’s ability to meet programme milestones, to the extent that failure to do so may jeopardise the successful and timely implementation of the programme; iii) identify any dependencies that the licensee may have upon agents or other third-parties and secure the necessary support from such parties; and, iv) promptly escalate and/or resolve any disputes that if unresolved may jeopardise the fulfilment of these obligations. Interpretation 6. In this condition: Significant Code Review means a review of matters in relation to its principal objective and/or general duties (under section 3A of the Electricity Act or section 4AA of the Gas Act), statutory functions and/or relevant obligations arising under Retained EU Law, which the Authority - 15 - Standard conditions of the Gas Interconnector Licence – 8 April 2021 Consolidated conditions are not formal Public Register documents and should not be relied on considers are likely to relate to one or more of the documents referred to in this condition, or to which the licensee is required under this licence to be a party, and concerning which the Authority has consulted upon and issued a Notice to the parties stating that the review will constitute a Significant Code Review. - 16 - Standard conditions of the Gas Interconnector Licence – 8 April 2021 Consolidated conditions are not formal Public Register documents and should not be relied on Condition 4. Provision of information to the Authority 1. Subject to paragraphs 2 and 4 below, the licensee shall furnish to the Authority, in such manner and at such times as the Authority may reasonably require, such information and shall procure and furnish to it such reports, as the Authority may reasonably require or as may be necessary for the purpose of performing: (a) the functions conferred on the Authority by or under the Act; (b) any functions transferred to or conferred on the Authority by or under the Utilities Act 2000; (c) any functions conferred on the Authority by or under the Energy Act 2004; and (d) any functions conferred on the Authority by or under the Regulation. The licensee shall not be required by the Authority to furnish it under this condition with information for the purpose of the exercise of the Authority’s functions under section 34 of the Act. 2. The licensee shall, if so requested by the Authority, give reasoned comments on the accuracy and text of any information or advice (so far as relating to its activities as holder of a gas interconnector licence) that the Authority proposes to publish pursuant to section 35 of the Act. 3. This condition shall not require the licensee to produce any documents or give any information which it could not be compelled to produce or give in evidence in civil proceedings before a court. 4. The power of the Authority to call for information under paragraph 1 is in addition to the power of the Authority to call for information under or pursuant to any other condition. There shall be a presumption that the provision of information in accordance with any other condition is sufficient for the purposes of that condition, but that presumption shall be rebutted, if the Authority states in writing - 17 - Standard conditions of the Gas Interconnector Licence – 8 April 2021 Consolidated conditions are not formal Public Register documents and should not be relied on that in its opinion such further information is, or is likely to be, necessary to enable it to exercise functions under the condition in question. - 18 - Standard conditions of the Gas Interconnector Licence – 8 April 2021 Consolidated conditions are not formal Public Register documents and should not be relied on Condition 5. Information regarding technical rules and operation 1. In order to promote effective competition and the efficient functioning of the market in gas, if so directed by the Authority, the licensee shall: (a) define the technical safety criteria and technical rules establishing the minimum technical design and operational requirements for connection by users to the interconnector. The technical rules shall ensure the interoperability of systems and be objective and non-discriminatory; and (b) publish the technical safety criteria and technical rules described in sub- paragraph (a) above, at least on its website. 2. To the extent not already published pursuant to Paragraph 1 above, the licensee shall furnish to any relevant gas transporter or any operator of an interconnected system,”; information concerning the operation and technical specifications of the licensee’s interconnector in such manner and at such times as may reasonably: (a) be required by a relevant gas transporter to enable it to comply with its obligations under its own licence or applicable industry codes; or (b) be specified in directions issued from time to time by the Authority to the licensee for the purpose of sub-paragraph (a) above, having taken into consideration any representations made to the Authority by the licensee and any relevant gas transporter, and in accordance with any conditions contained in such directions; or (c) be required by the operator of an interconnected system for the purposes of ensuring the secure and efficient operation of the interconnected system. 3. The licensee shall be entitled to refuse to disclose an item of information under paragraph 1, sub-paragraph 2(a) and/or sub-paragraph 2(c) above on the grounds that its disclosure would seriously and prejudicially affect the commercial interests of the licensee unless and until the Authority, by notice in writing given - 19 - Standard conditions of the Gas Interconnector Licence – 8 April 2021 Consolidated conditions are not formal Public Register documents and should not be relied on to the licensee, directs it to provide that item of information on the ground that provision thereof is necessary or expedient for the purpose mentioned in paragraph 1, sub-paragraph 2(a) and/or sub-paragraph 2(c).. 4. This condition shall not require the licensee to produce any documents or give any information which it could not be compelled to produce or give in evidence in civil proceedings before the court. 5. Sub-paragraphs 2(a) and 2(c) shall not apply in respect of any relevant gas transporter or operator of an interconnected system which has not established, whether in pursuance of a licence condition or otherwise, effective arrangements designed to secure that information provided in pursuance of this condition is not communicated, directly or indirectly, to any gas shipper or gas supplier. - 20 - Standard conditions of the Gas Interconnector Licence – 8 April 2021 Consolidated conditions are not formal Public Register documents and should not be relied on Condition 6. Separation of accounts 1. The licensee shall, in their internal accounting, keep separate accounts for each of their gas activities: interconnection; transmission (in the instance of an integrated transmission system, this will also include interconnection activities); distribution; storage; LNG; and supply activities as if such activities were carried out by separate undertakings, to avoid discrimination, cross-subsidisation and the distortion of competition between these activities. - 21 - Standard conditions of the Gas Interconnector Licence – 8 April 2021 Consolidated conditions are not formal Public Register documents and should not be relied on Condition 7. Not Used - 22 - Standard conditions of the Gas Interconnector Licence – 8 April 2021 Consolidated conditions are not formal Public Register documents and should not be relied on Condition 8. Not Used - 23 - Standard conditions of the Gas Interconnector Licence – 8 April 2021 Consolidated conditions are not formal Public Register documents and should not be relied on PART II - SECTION C: REVENUE Condition 9. Not Used - 24 - Standard conditions of the Gas Interconnector Licence – 8 April 2021 Consolidated conditions are not formal Public Register documents and should not be relied on PART II - SECTION D: THIRD PARTY ACCESS Condition 10. Charging methodology to apply to third party access to the licensee’s interconnector 1. Unless otherwise determined by the Authority, the licensee shall only enter into agreements for access to the licensee’s interconnector on the basis of the charging methodology last approved by the Authority. Initial approval of charging methodology 2. The licensee shall, sufficiently in advance of new interconnector capacity becoming operational, or by such date as the Authority may direct in writing, prepare and submit for approval by the Authority, a charging methodology for access to (including use of) the licensee’s interconnector. The licensee may, subject to the approval of the Authority, submit a statement which includes both the Access Rules and the charging methodology. 3. The charging methodology shall set out the methodologies for the calculation of any charges imposed upon users for access to (including use of) the interconnector and/or the provision of ancillary services, and any payments made to users for access to (including use of), the interconnector, including: (a) charges levied by the licensee for the allocation of interconnector capacity, including but not limited to: (i) any charges for congestion management purposes, such as the non-use of nominated interconnector capacity; and (ii) any charges for the provision (including the provision to any relevant system operator), of ancillary services, including but not limited to balancing services; - 25 - Standard conditions of the Gas Interconnector Licence – 8 April 2021 Consolidated conditions are not formal Public Register documents and should not be relied on (b) payments made by the licensee for the provision of ancillary services provided by users or relevant system operators; and (c) payments made by the licensee to users for the loss of capacity in the event of being unable to make available interconnector capacity. 4. The charges and the application of the underlying charging methodology shall be objective, transparent, non-discriminatory and compliant with the Regulation and any relevant legally binding decision of the European Commission and/or the Agency”; (collectively, the ‘relevant charging methodology objectives’). 5. Prior to submitting the charging methodology to the Authority for approval the licensee shall: (a) take all reasonable steps to ensure that all persons, including those in member States, who may have a direct interest in the charging methodology are consulted and allow them a period of not less than 28 days within which to make written representations; and (b) furnish to the Authority a report setting out: (i) the terms originally proposed in the charging methodology; (ii) the representations, if any, made by interested persons; and (iii) any change in the terms of the methodology intended as a consequence of such representations. Review of the charging methodology by the licensee 6. The licensee shall comply with any direction from the Authority to amend its charging methodology for the purposes of meeting the relevant charging methodology objectives, such direction to be issued without undue delay and in - 26 - Standard conditions of the Gas Interconnector Licence – 8 April 2021 Consolidated conditions are not formal Public Register documents and should not be relied on any event within three months of receipt of the charging methodology submitted by the licensee. Where the Authority directs changes to the charging methodology the licensee shall resubmit (by such date as may be determined by the Authority and notified to the licensee) its charging methodology to the Authority for approval and the provisions of paragraph 7 shall apply. 7. The charging methodology shall not be approved for the purposes of paragraph 1 unless and until the Authority has issued a direction approving the methodology on the basis that it meets the relevant charging methodology objectives, such direction to be issued without undue delay and in any event within three months of receipt of the charging methodology from the licensee, unless, prior to the expiry of that period, the Authority directs that the charging methodology is not approved. In the absence of any direction within three months of receipt of the charging methodology from the licensee, the charging methodology shall be deemed to be approved. 8. If the Authority does not approve the charging methodology submitted by the licensee, or if the licensee does not submit a charging methodology for approval, the licensee shall comply with any provisional charging methodology which the Authority may, after giving reasonable notice to the licensee, fix for an interim period and the licensee shall ensure that any compensatory measures set by the Authority are put in place to compensate the licensee and/or users as the case may be if the approved charging methodology deviates from the provisional charging methodology. 9. The licensee shall review its charging methodology at least once in each calendar year and, subject to paragraphs 11 to 14, make such modifications to the charging methodology as may be requisite for the purpose of ensuring that the charging methodology better achieves the relevant charging methodology objectives. - 27 - Standard conditions of the Gas Interconnector Licence – 8 April 2021 Consolidated conditions are not formal Public Register documents and should not be relied on 10. The licensee shall also review its charging methodology where the Authority so requests. Such review must have regard to any suggestions or comments made by the Authority on the licensee’s charging methodology. The licensee shall complete any such review and provide the Authority with a report on the review within three months of the Authority’s request. The licensee shall then, subject to paragraphs 11 to 14, make such modifications to the charging methodology as may be requisite for the purpose of better achieving the relevant charging methodology objectives. Modification of charging methodology 11. Subject to paragraphs 13 and 14, the licensee shall not make a modification to the charging methodology unless the licensee has: (a) taken all reasonable steps to ensure that all persons, including those in member States, who may have a direct interest in the charging methodology, including the Authority, are consulted on the proposed modification and has allowed such persons a period of not less than 28 days within which to make written representations; and (b) furnished the Authority with a report setting out: (i) the terms originally proposed for the modification; (ii) the representations, if any, made by interested persons to the licensee; (iii) any change in the terms of the modification intended in consequence of such representations; (iv) how the intended modification better achieves the relevant charging methodology objectives; and (v) a timetable for the implementation of the modification and the date with effect from which the modification (if made) is to take effect, such date being not earlier than the date on which the period referred to in paragraph 14 expires. - 28 - Standard conditions of the Gas Interconnector Licence – 8 April 2021 Consolidated conditions are not formal Public Register documents and should not be relied on 12. The licensee shall not propose a modification to the charging methodology more than once a year unless the Authority consents otherwise. 13. The licensee shall comply with any direction from the Authority to amend its proposed modified charging methodology for the purposes of meeting the relevant charging methodology objectives, such direction to be issued without undue delay and in any event within three months of receipt of the proposed modified charging methodology submitted by the licensee. Where the Authority directs changes to the proposed modified charging methodology the licensee shall resubmit (by such date as may be determined by the Authority and notified to the licensee) its proposed modified charging methodology to the Authority for approval and the provisions of paragraph 14 shall apply. 14. The proposed modified charging methodology shall not be approved for the purposes of paragraph 1 unless and until the Authority has issued a direction approving the proposed modified charging methodology on the basis that it meets the relevant charging methodology objectives, such direction to be issued without undue delay and in any event within three months of receipt of the proposed modified charging methodology from the licensee, unless, prior to the expiry of that period, the Authority directs that the proposed modified charging methodology is not approved (in which case paragraph 8 shall apply). In the absence of any direction within three months of receipt of the proposed modified charging methodology from the licensee, the proposed modified charging methodology shall be deemed to be approved. Publication of charging methodology statement 15. The licensee shall publish (at least on its website) a charging methodology statement that sets out the prevailing charges for access to the licensee’s - 29 - Standard conditions of the Gas Interconnector Licence – 8 April 2021 Consolidated conditions are not formal Public Register documents and should not be relied on interconnector and how the charges have been derived in accordance with its charging methodology, as soon as practicable after the charging methodology has been approved by the Authority, or, where the charging methodology has been modified, in accordance with any modified charging methodology. Unless the Authority directs otherwise, the charging methodology statement shall be published 28 days prior to it coming into effect. Provision of charging methodology or charging methodology statement to any person 16. The licensee shall send a copy of its: charging methodology; charging methodology statement; and/or any proposed modification to the charging methodology proposed under paragraph 11, to any person who requests such charging methodology, charging methodology statement or proposed modification. The licensee may impose a reasonable charge upon a person who requests the sending of a charging methodology, charging methodology statement or any proposed modification. Such charge should be equivalent to the licensee’s reasonable costs of meeting the request but shall not exceed the maximum amount specified in any directions that may be issued by the Authority for the purposes of this condition. Where tariffs, and/or a tariff or charging methodology has been established or approved by a regulatory authority other than the Authority 17. Where the licensee’s interconnector either: (a) forms part of an integrated transmission system and the tariffs and/or the tariff or charging methodology that applies to access to the licensee’s interconnector have been established or approved by a regulatory authority and those tariffs and/or the tariff or charging methodology meet the relevant charging methodology objectives; or - 30 - Standard conditions of the Gas Interconnector Licence – 8 April 2021 Consolidated conditions are not formal Public Register documents and should not be relied on (b) does not form part of an integrated transmission system and the tariffs and/or the tariff or charging methodology that applies to access to the licensee’s interconnector have been established or approved by a regulatory authority and those tariffs and/or the tariff or charging methodology meet the relevant charging methodology objectives, the Authority may issue a notice to the licensee that the establishment or approval by that regulatory authority meets the requirements of this licence condition. Such notice will constitute approval of a charging methodology for the purposes of this licence condition. 18. A notice issued under paragraph 17 will expire on the earlier of: (a) the date, if any, provided for expiry in the notice, or (b) the withdrawal of the notice by the Authority, such withdrawal being effective from the date specified by the Authority, such date being not less than four months after the Authority has informed the licensee that the notice will be withdrawn. 19. Where the Authority has issued a notice to the licensee under paragraph 17 and the tariffs, and/or tariff or charging methodology that have or has been established or approved by the regulatory authority have or has been modified, or is or are to be modified, the licensee shall furnish the Authority with a report setting out: (a) the terms originally proposed for the modification; (b) the representations, if any, made by any interested person to the licensee; (c) any change in the terms of the modification intended in consequence of the representations; (d) how the intended modification better achieves the relevant charging methodology objectives; and - 31 - Standard conditions of the Gas Interconnector Licence – 8 April 2021 Consolidated conditions are not formal Public Register documents and should not be relied on (e) a timetable for the implementation of the modification and the date with effect from which the modification (if made) is to take effect. 20. Where the Authority has issued a notice to the licensee under paragraph 17, until that notice expires or is withdrawn by the Authority, paragraphs 2 and 5 to 15 of this condition do not apply to the licensee. Agreements entered into before 1 July 2004 on the basis of a charging methodology that was approved by either the Authority or the European Commission 21. Paragraphs 2 and 5 to 15 of this licence condition do not apply to a contract for access to the licensee’s interconnector that was entered into before 1 July 2004 and which: (a) was entered into on the basis of a charging methodology that had been approved by either the Authority or the European Commission; and (b) subject to paragraph 24, the Authority has given notice to the licensee that paragraphs 2 and 5 to 15 of this licence condition do not apply to such contract. 22. The licensee shall inform the Authority in writing of any proposed material changes to a contract which is the subject of a notice given under sub- paragraph 21(b). This information shall be furnished to the Authority at least 28 days before the proposed contractual variation becomes effective. 23. A notice given under sub-paragraph 21(b) may be given unconditionally or subject to such conditions as the Authority considers appropriate. - 32 - Standard conditions of the Gas Interconnector Licence – 8 April 2021 Consolidated conditions are not formal Public Register documents and should not be relied on 24. A notice given under sub-paragraph 21(b) may be withdrawn or revoked by the Authority in any of the following circumstances: (a) the Authority considers that such contract is operating in a manner which is detrimental to competition or the effective functioning of the market in gas, or the efficient functioning of the regulated system to which the licensee’s interconnector is connected; (b) the licensee is found to be in breach of any national or European competition laws, such breach relating to the licensee’s interconnector; (c) [Not used] (d) there is merger or acquisition activity in relation to or by the licensee that is detrimental to competition; (e) there is a material change to the contract terms which has not be approved by the Authority; (f) the contract is extended beyond its initial term; (g) the licensee: (i) has a receiver (which expression shall include an administrative receiver within the meaning of section 251 of the Insolvency Act 1986) of the whole or any material part of its assets or undertaking appointed; or (ii) has an administration order under section 8 of the Insolvency Act 1986 made in relation to it. Provision of information to Authority in relation to the charging methodology 25. The licensee shall comply with any direction given by the Authority to furnish it with a statement showing, so far as is reasonably practicable, the methods by - 33 - Standard conditions of the Gas Interconnector Licence – 8 April 2021 Consolidated conditions are not formal Public Register documents and should not be relied on which, and the principles upon which, its charging methodology has been derived. - 34 - Standard conditions of the Gas Interconnector Licence – 8 April 2021 Consolidated conditions are not formal Public Register documents and should not be relied on Condition 11. Requirement to offer terms for access to the licensee’s interconnector 1. On the application of any person for access to the licensee’s interconnector the licensee shall offer to enter into an agreement with such person for access to the licensee’s interconnector. 2. The licensee shall not be in breach of this condition where there is a lack of capacity in respect of which to grant access to the licensee’s interconnector. 3. Where the licensee refuses access on the grounds that it lacks the necessary capacity, duly substantiated reasons for such refusal, demonstrating that it is either not economic or not technically feasible to provide the capacity, must be given to both the person seeking access and to the Authority within 28 days of a refusal. 4. Where the licensee refuses access on the grounds that it lacks the necessary capacity and the person seeking access so requests, the licensee shall provide relevant information on measures that would be required to reinforce the network in order to provide that capacity. The licensee may impose a reasonable charge upon a person who requests such information. Such charge should be equivalent to the licensee’s reasonable costs of meeting the request but shall not exceed the maximum amount specified in any direction issued by the Authority for the purposes of this condition. 5. Where the licensee considers that for reasons of confidentiality the licensee should not have to provide particular items of information to the person seeking access under paragraphs 3 or 4, the licensee may seek the consent of the Authority to limit the provision of information to that person. - 35 - Standard conditions of the Gas Interconnector Licence – 8 April 2021 Consolidated conditions are not formal Public Register documents and should not be relied on 6. A dispute arising from refusal of access on the grounds of lack of necessary capacity will be resolved in accordance with condition 14. 7. The licensee shall keep and maintain records for at least seven years, or the length of any concluded contract plus seven years (whichever is the longer in each case), detailing all access terms and conditions offered to any person (whether or not access is in fact granted or utilised) including details of the charges or tariffs and non-price terms and conditions of access offered. - 36 - Standard conditions of the Gas Interconnector Licence – 8 April 2021 Consolidated conditions are not formal Public Register documents and should not be relied on Condition 11A. Approval of terms for access to the licensee’s interconnector Existing Exemptions 1. For the duration of the exemption, the licensee is not required to comply with this licence condition 11A in respect of its capacity which is exempt if, in respect of that particular capacity, prior to 3 March 2011 it was granted an exemption pursuant to licence condition 12 from complying with any requirement of the licence relating to the use by other persons of the gas interconnector to which its licence relates. Initial approval of access rules 2. The licensee shall, sufficiently in advance of new interconnector capacity becoming operational, or by such date as the Authority may direct in writing, prepare and submit for approval by the Authority a statement, setting out the Access Rules. The licensee may, subject to the approval of the Authority, submit a statement which includes both the charging methodology and the Access Rules. 3. In respect of interconnector capacity which was operational prior to 3 March 2011, and which has not been included in the Access Rules submitted pursuant to paragraph 1, the licensee shall, by such date as the Authority may direct in writing, prepare and submit for approval by the Authority the Access Rules. 4. The Access Rules shall comply with the Regulation and must include, in particular but not be limited to: - 37 - Standard conditions of the Gas Interconnector Licence – 8 April 2021 Consolidated conditions are not formal Public Register documents and should not be relied on (a) arrangements for maximising the available interconnector capacity, including: the methodology for the calculation of interconnector capacity, the provision of virtual capacity for a counter-flow of gas on the interconnector, the volume of capacity offered on a firm basis and any additional capacity offered on an interruptible basis to maximise cross-border trade; (b) arrangements for users to obtain interconnector capacity at appropriate timescales, including, where relevant, the auction rules and procedures for nominating gas flows against the capacity; (c) arrangements for the management of congestion, including procedures for licensees to resell or make available to other users unused interconnector capacity and for users to transfer or resell interconnector capacity; (d) arrangements in the event that the licensee curtails, withdraws or is unable to provide available capacity; (e) arrangements for any ancillary services, such as balancing arrangements, including where these are offered by third parties, including agents; and (f) any general terms and conditions that a user must accept in order to obtain interconnector capacity. 5. The Access Rules shall be transparent, objective, non-discriminatory and compliant with the Regulation and any relevant legally binding decision of the European Commission and/or Agency (collectively ‘the relevant access rules objectives’). 6. Prior to submitting the Access Rules to the Authority for approval the licensee shall: (a) take all reasonable steps to ensure that all persons, including those in member States who may have a direct interest in the Access Rules, are consulted and allow them a period of not less than 28 days within which to make written representations; and - 38 - Standard conditions of the Gas Interconnector Licence – 8 April 2021 Consolidated conditions are not formal Public Register documents and should not be relied on (b) furnish to the Authority a report setting out: (i) the terms originally proposed in the Access Rules; (ii) the representations, if any, made by interested persons; and (iii) any change in the terms of the Access Rules intended as a consequence of such representations. 7. The licensee shall comply with any direction from the Authority to amend the Access Rules for the purposes of meeting the relevant access rules objectives, such direction to be issued without undue delay and in any event within three months of receipt of the Access Rules submitted by the licensee. Where the Authority directs changes to the Access Rules, the licensee shall re-submit (by such date as may be determined by the Authority and notified to the licensee) its Access Rules to the Authority for approval and the provisions of paragraph 8 shall apply. 8. The Access Rules shall not be approved unless and until the Authority has issued a direction approving the Access Rules on the basis that they meet the relevant access rules objectives, such direction to be issued without undue delay and in any event within three months of receipt of the Access Rules from the licensee, unless, prior to the expiry of that period, the Authority directs that the Access Rules are not approved. In the absence of any direction within three months of receipt of the Access Rules from the licensee, the Access Rules shall be deemed to be approved. Review of the Access Rules by the licensee 9. The licensee shall review its Access Rules at least once in each calendar year and, subject to paragraphs 11 to 14, make such modifications to the Access Rules as may be requisite for the purpose of ensuring that the Access Rules better achieve the relevant access rules objectives. - 39 - Standard conditions of the Gas Interconnector Licence – 8 April 2021 Consolidated conditions are not formal Public Register documents and should not be relied on 10. The licensee shall also review its Access Rules where the Authority so requests. Such review must have regard to any suggestions or comments made by the Authority on the licensee’s Access Rules. The licensee shall complete any such review and provide the Authority with a report on the review within three months of the Authority’s request. The licensee shall then, subject to paragraphs 11 to 14, make such modifications to the Access Rules as may be requisite for the purpose of better achieving the relevant access rules objectives. Modification of Access Rules 11. Subject to paragraphs 13 and 14, the licensee shall not make a modification to the Access Rules unless the licensee has: (a) taken all reasonable steps to ensure that all persons who may have a direct interest in the Access Rules, including those in member States, are consulted on the 150 proposed modification and has allowed such persons a period of not less than 28 days within which to make written representations; and (b) furnished the Authority with a report setting out: (i) the terms originally proposed for the modification; (ii) the representations, if any, made by interested persons to the licensee; (iii) any change in the terms of the modification intended in consequence of such representations; (iv) how the intended modification better achieves the relevant access rules objectives; and (v) a timetable for the implementation of the modification and the date with effect from which the modification (if made) is to take effect, - 40 - Standard conditions of the Gas Interconnector Licence – 8 April 2021 Consolidated conditions are not formal Public Register documents and should not be relied on such date being not earlier than the date on which the period referred to in paragraph 14 expires. 12. The licensee shall not propose a modification to the Access Rules more than once a year unless the Authority consents otherwise. 13. The licensee shall comply with any direction from the Authority to amend its proposed modified Access Rules for the purposes of meeting the relevant access rules objectives, such direction to be issued without undue delay and in any event within three months of receipt of the proposed modified Access Rules submitted by the licensee. Where the Authority directs changes to the proposed modified Access Rules, the licensee shall resubmit (by such date as may be determined by the Authority and notified to the licensee) its proposed modified Access Rules to the Authority for approval and the provisions of paragraph 14 shall apply. 14. The proposed modified Access Rules shall not be approved unless and until the Authority has issued a direction approving the proposed modified Access Rules on the basis that they meet the relevant access rules objectives, such direction to be issued without undue delay and in any event within three months of receipt of the proposed modified Access Rules from the licensee unless, prior to the expiry of that period, the Authority directs that the proposed modified Access Rules are not approved. In the absence of any direction within three months of receipt of the proposed modified Access Rules from the licensee, the proposed modified Access Rules shall be deemed to be approved. - 41 - Standard conditions of the Gas Interconnector Licence – 8 April 2021 Consolidated conditions are not formal Public Register documents and should not be relied on Publication of Access Rules 15. The licensee shall publish (at least on its website) the Access Rules as soon as practicable after the Access Rules have been approved by the Authority, or, where the Access Rules have been modified, the Access Rules as modified. Unless the Authority directs otherwise, the Access Rules shall be published 28 days prior to coming into effect. Provision of Access Rules to any person 16. The licensee shall send a copy of its Access Rules and/or any proposed modification to the Access Rules proposed under paragraph 11, to any person who requests such Access Rules or proposed modification. The licensee may impose a reasonable charge upon a person who requests the sending of the Access Rules or any proposed modification. Such charge should be equivalent to the licensee’s reasonable costs of meeting the request but shall not exceed the maximum amount specified in any directions that may be issued by the Authority for the purposes of this condition.”. - 42 - Standard conditions of the Gas Interconnector Licence – 8 April 2021 Consolidated conditions are not formal Public Register documents and should not be relied on Condition 12. Application of licence conditions 10, 11 and 11A: Exemption orders 1. In accordance with this licence condition, licence conditions 10 , 11 and 11A (‘the relevant conditions’) may: (a) not have effect in this licence; (b) be suspended from operation in this licence; (c) be brought into, (where the licence condition did not have effect) or back into operation (where the licence condition was suspended from operation), in this licence. 2. On the application of the licensee in accordance with paragraph 3, the Authority must (either before, at the same time, or after this licence has been granted to the licensee) issue an exemption order providing that any or all of the relevant conditions may not have effect or are suspended from operation, or (where the licence has not yet been granted) will not be in effect or will be suspended from operation, where the Authority is satisfied that the requirements of paragraphs 7 and 10 are met. 3. A licensee may make a request in writing to the Authority for the Authority to issue an exemption order such that any or all of the relevant conditions do not have effect or are suspended from operation. The request shall specify the relevant conditions to which the request relates and must set out all relevant information that would allow the Authority to determine whether such an exemption order should be issued given the matters of which the Authority must be satisfied before issuing an exemption order, as set out in paragraph 7. The request shall include the Access Rules for approval by the Authority in accordance with paragraph 13 below, which Access Rules shall: (a) comply with paragraph 4 of licence condition 11A; and (b) comply with paragraph 5 of licence condition 11A save for the requirement - 43 - Standard conditions of the Gas Interconnector Licence – 8 April 2021 Consolidated conditions are not formal Public Register documents and should not be relied on for the Access Rules to comply with the Regulation, and prior to submitting the Access Rules for approval, the licensee shall comply with the requirements of licence condition 11A paragraph 6 4. An exemption order shall be in writing and may be expressed: (a) so as to have effect for a period specified in, or determined under the exemption; (b) subject to such conditions as the Authority considers appropriate; including any conditions regarding non-discriminatory access to the interconnector to which the exemption relates (c) so as to have effect in relation to the whole or any part of, as the case may be: (i) the capacity of the new interconnector; (ii) the significant increase in the capacity of the licensee’s interconnector; or (iii) the modification of the licensee’s interconnector which enables the development of new sources of gas supply. 5. When considering the terms on which any exemption is to be given in respect of the interconnector, the Authority must take into account: (a) the size of the interconnector or, if it is being modified, any increase in capacity of the interconnector; (b) the length of time required to recover the investment in the interconnector; and (c) the implications of the exemption for the operation of the gas market in Great Britain. 6. An exemption order issued under paragraph 2 may be revoked in accordance with its provisions and must be revoked if: - 44 - Standard conditions of the Gas Interconnector Licence – 8 April 2021 Consolidated conditions are not formal Public Register documents and should not be relied on (a) construction of the interconnector or the increase in, or modification to, its capacity to which the exemption relates has not started within two years of the relevant date; or (b) the interconnector or the increase in, or modification to, its capacity to which the exemption relates is not operational within five years of the relevant date. 7. The requirements of this paragraph are that – (a) the investment in the licensee’s interconnector enhances competition in gas supply and enhances security of supply; (b) the level of risk attached to the investment is such that the investment would not take place unless an exemption order was issued under paragraph 2 of this condition; (c) the licensee’s interconnector will be owned by a natural or legal person which is separate at least in terms of its legal form from the relevant system operators to whose systems that infrastructure will be connected; (d) charges will be levied on users of the licensee’s interconnector; (e) having any or all of the relevant conditions under consideration not in effect, or suspended from operation, is not detrimental to competition in relevant markets, the effective functioning of the market in gas, the efficient functioning of the regulated system to which the licensee’s interconnector is connected, or security of supply in the internal gas market. 8. When deciding whether the requirements of paragraph 7 are met, the following shall be taken into account― (a) when considering the criteria in paragraph 7(a), (b) and (e), the way in which capacity is to be allocated under the Access Rules approved by the Authority in accordance with paragraph 13 below; and - 45 - Standard conditions of the Gas Interconnector Licence – 8 April 2021 Consolidated conditions are not formal Public Register documents and should not be relied on (b) any opinion which it has received from the Agency in respect of the application pursuant to Article 36(4) of the Directive. 9. An application made under paragraph 3 may relate to a new interconnector or to a part of an interconnector in so far as that part represents either: (a) a significant increase of capacity to that interconnector; or (b) a modification to the interconnector which enables the development of new sources of gas supply. 10. The requirements of this paragraph are that: (a) the Authority has sent notification of the application to: (i) the relevant regulatory authority if part of the interconnector is located in a member State; and (ii) the designated regulatory authority for Northern Ireland if part of the interconnector is located in Northern Ireland; (b) [Not used] (c) [Not used] (d) the Directive, the Authority has the agreement of any relevant national regulatory authority to the exemption, which agreement has been reached within 6 months of the date on which the application was received by the last of the relevant national regulatory authorities (e) [Not used] (f) [Not used] - 46 - Standard conditions of the Gas Interconnector Licence – 8 April 2021 Consolidated conditions are not formal Public Register documents and should not be relied on 11. An exemption order will not be made until the Authority has approved the Access Rules. 12. The licensee shall comply with any direction from the Authority to amend the Access Rules submitted pursuant to paragraph 3 above, for the purposes of meeting the relevant access rules objectives (save for the requirement for the Access Rules to comply with the Regulation) and the requirements of paragraph 14 below, such direction to be issued without undue delay and in any event within three months of receipt of the Access Rules submitted by the licensee. Where the Authority directs changes to the Access Rules, the licensee shall re-submit (by such date as may be determined by the Authority and notified to the licensee) its Access Rules to the Authority for approval and the provisions of paragraph 13 shall apply. 13. The Access Rules shall not be approved for the purposes of paragraph 11, unless and until the Authority has issued a direction approving the Access Rules on the basis that they meet the relevant