Citation, commencement and extent

1. —(1) These Regulations may be cited as the Electricity and Gas (Ownership Unbundling) Regulations 2014 and come into force on 15th January 2015.

(2) These Regulations do not extend to Northern Ireland.

Gas transmission and the operation of gas interconnectors: independence

2. —(1)The Gas Act 1986( 3 ) is amended as follows.

(2) In section 8H(1) (the ownership unbundling requirement) for the words “the Authority thinks that each of the following five tests is passed” substitute—

“ in relation to each of the five tests below—

(a) the Authority thinks that it is passed, or

(b) it is treated as passed by virtue of subsection (7), (9) or (9A). ” .

(3) After section 8H(9) insert—

“ (9A) The Authority may treat one or more of the five tests in this section as passed if—

(a) the test or tests are not passed in relation to a relevant producer or supplier,

(b) the applicant has demonstrated to the Authority’s satisfaction that the applicant does not have a relationship with the relevant producer or supplier which might lead the applicant to discriminate in favour of the relevant producer or supplier, and

(c) the Authority thinks it appropriate to treat the test or tests as passed. ” .

(4) After section 8K(9) (monitoring and review of certification) insert—

“ (10) If, before any of the deadlines mentioned in subsection (4), (6) or (9) (or before such deadline as previously extended under this subsection), the Authority asks the certified person or a relevant producer or supplier for information under section 8L(2) or (3), the relevant deadline is the end of the 4 months beginning with the day on which the last of that information is received. ” .

(5) In section 8N(1) (continuation or withdrawal of certification) after “mentioned in section 8K(4) or (6)” insert “or where relevant the 4 months mentioned in section 8K(10),”.

(6) In section 8N(3) after “mentioned in section 8K(9)” insert “or where relevant the 4 months mentioned in section 8K(10)”.

Electricity transmission and the operation of electricity interconnectors: independence

3. —(1)The Electricity Act 1989( 4 ) is amended as follows.

(2) In section 10F(1) (the ownership unbundling requirement) for the words “the Authority thinks that each of the following five tests is passed” substitute—

“ in relation to each of the five tests below—

(a) the Authority thinks that it is passed, or

(b) it is treated as passed by virtue of subsection (7), (9) or (9A). ” .

(3) After section 10F(9) insert—

“ (9A) Except where subsection (9B) applies, the Authority may treat one or more of the five tests in this section as passed if—

(a) the test or tests are not passed in relation to a relevant producer or supplier,

(b) the applicant has demonstrated to the Authority’s satisfaction that the applicant does not have a relationship with the relevant producer or supplier which might lead the applicant to discriminate in favour of the relevant producer or supplier, and

(c) the Authority thinks it appropriate to treat the test or tests as passed.

(9B) This subsection applies where the applicant, or a person who controls or has a majority shareholding in the applicant, controls or has a majority shareholding in a person (“A”) who operates a generating station and—

(a) A is a relevant producer or supplier; and

(b) the generating station is directly physically connected to anything that forms part of the applicant’s transmission system or electricity interconnector. ” .

(4) After section 10I(9) (monitoring and review of certification) insert—

“ (10) If, before any of the deadlines mentioned in subsection (4), (6) or (9) (or before such deadline as previously extended under this subsection), the Authority asks the certified person or a relevant producer or supplier for information under section 10J(2) or (3), the relevant deadline is the end of the 4 months beginning with the day on which the last of that information is received. ” .

(5) In section 10L(1) (continuation or withdrawal of certification) after “mentioned in section 10I(4) or (6)” insert “or where relevant the 4 months mentioned in section 10I(10)”.

(6) In section 10L(3) after “mentioned in section 10I(9)” insert “or where relevant the 4 months mentioned in section 10I(10)”.

Transitional

4. —(1) These Regulations do not apply in relation to—

(a) any application under section 8D(2) of the Gas Act 1986 or section 10B(2) of the Electricity Act 1989 received by the Authority before the day on which these Regulations come into force, and

(b) any review by the Authority under section 8K(3), (5) or (8) of the Gas Act 1986 or section 10I(3), (5) or (8) of the Electricity Act 1989 where the period for carrying out the review began before the day on which these Regulations come into force.

(2) In this regulation, “the Authority” means the Gas and Electricity Markets Authority.

Review

5. —(1)Regulation 51 (review) of the Electricity and Gas (Internal Markets) Regulations 2011( 5 ) is amended as follows.

(2) In paragraph (6), in the definition of “Internal Markets Regulations”, after sub-paragraph (b) insert—

“ (c) the Electricity and Gas (Ownership Unbundling) Regulations 2014 ( 6 ) ; ” .