Citation, commencement, extent and interpretation

1. —(1) These Regulations may be cited as the Electricity and Gas (Internal Markets) Regulations 2017 and come into force on 24th April 2017.

(2) These Regulations extend to England and Wales and Scotland.

(3) In these Regulations—

“the 1986 Act” means the Gas Act 1986( 3 );

“the 1989 Act” means the Electricity Act 1989( 4 ).

Amendment to section 8Q of the 1986 Act

2. For subsection (5) of section 8Q of the 1986 Act( 5 ) (definition of “relevant producer or supplier”), substitute—

“ (5) A person falls within this subsection if—

(a) the person requires a licence under section 7A of this Act ( 6 ) or section 6 of the Electricity Act 1989 ( 7 ) (licences authorising supply, etc ) to carry out the activity by virtue of which the person falls within subsection (4);

(b) where the person does not carry out the activity in Great Britain, the person would, in the Authority ’s opinion, require such a licence if carrying out the activity in Great Britain; or

(c) the person has a relationship with the applicant or certified person which the Authority thinks might lead the applicant or certified person to discriminate in favour of the person. ” .

Amendment to section 10O of the 1989 Act

3. For subsection (5) of section 10O of the 1989 Act( 8 ) (definition of “relevant producer or supplier”), substitute—

“ (5) A person falls within this subsection if—

(a) the person requires a licence under section 7A of the Gas Act 1986 (licensing of gas suppliers and gas shippers) or section 6 of this Act to carry out the activity by virtue of which the person falls within subsection (4);

(b) where the person does not carry out the activity in Great Britain, the person would, in the Authority’s opinion, require such a licence if carrying out the activity in Great Britain; or

(c) the person has a relationship with the applicant or certified person which the Authority thinks might lead the applicant or certified person to discriminate in favour of the person. ” .

Amendment to section 25 of the 1989 Act

4. In section 25(8) of the 1989 Act( 9 ) (orders for securing compliance), in the definition of “regulated person”, after paragraph (d) insert—

“ (e) a nominated electricity market operator; ” .

Amendments to section 64 of the 1989 Act

5. —(1) Section 64(1) of the 1989 Act( 10 ) (interpretation etc. of Part I) is amended as follows.

(2) For the definition of “the 2013 Amending Regulation” substitute—

“ “the 2013 Amending Regulations ” means—

(3) After the definition of “authorised supplier” insert—

“ “the CACM Regulation ” means Commission Regulation (EU) No 2015/1222 of 24 July 2015 establishing a guideline on capacity allocation and congestion management ( 13 ) ; ” .

(4) In the definition of “the Electricity Regulation”, for “the 2013 Amending Regulation” substitute “the 2013 Amending Regulations”.

(5) After the definition of “line” insert—

“ “nominated electricity market operator” means a person designated under Article 4 or 5 of the CACM Regulation by any competent authority to perform tasks related to single day-ahead or single intraday coupling; ” .

Amendments to Schedule 6A to the 1989 Act

6. —(1) Schedule 6A to the 1989 Act( 14 ) (provisions imposing obligations enforceable as relevant requirements) is amended as follows.

(2) In paragraph 4(e)(v) (persons required to be certified as independent), for “points 5.1 to 5.10” substitute “points 5.1 to 5.4 and 5.10”.

(3) After paragraph 9A insert—

“ Nominated electricity market operators

9B. The following provisions in the CACM Regulation are relevant provisions in relation to a nominated electricity market operator (“ NEMO ”)—

(a) Article 7(1) to (4) (NEMO tasks);

(b) Article 9(1), (4), (9), (12) and (14) (duties relating to development and adoption of terms and conditions or methodologies);

(c) Article 10 (day-to-day management of the single day-ahead and intraday coupling);

(d) Article 12 (duties relating to consultation);

(e) Article 13 (confidentiality obligations);

(f) Articles 32(5), 43(2), 56(2), 72(2) and 82(6) (requirements to provide information);

(g) Articles 36 and 37 (duties in relation to algorithm development);

(h) Articles 38, 39(1) to (3), 40, 41, 42, 45, 46(2), 47(4) to (6), 48(1), (3) and (4) and 50 (duties and requirements relating to single day-ahead coupling);

(i) Articles 51, 52, 53, 54, 55(1) and (4), 57, 58(3), 59(5) to (7), 60 and 62 (duties and requirements relating to single intraday coupling);

(j) Article 65(1) (removal of explicit allocation);

(k) where the NEMO is a central counter party (within the meaning given by Article 2(42) of the CACM Regulation), Article 68 (duties relating to clearing and settlement);

(l) Articles 75 to 77 and 80 (duties in relation to cost recovery);

(m) Article 81 (requirements relating to delegation of tasks). ” .

Transitional provisions

7. —(1) The amendments made by regulation 2 do not apply for the purposes—

(a) of an application for certification made under section 8D of the 1986 Act before the commencement date;

(b) of a review under section 8K(3), (5) or (8) of the 1986 Act if the period within which the review is to be carried out began before the commencement date.

(2) The amendments made by regulation 3 do not apply for the purposes—

(a) of an application for certification made under section 10B of the 1989 Act before the commencement date;

(b) of a review under section 10I(3), (5) or (8) of the 1989 Act if the period within which the review is to be carried out began before the commencement date.

(3) The Authority is not required to carry out a review of the certification basis of a relevant certified person under section 8K(5) of the 1986 Act or section 10I(5) of the 1989 Act (as the case may be) solely because of the amendments made by regulation 2 or 3.

(4) In paragraph (3) “relevant certified person”—

(a) in relation to a review under section 8K(5) of the 1986 Act, means a person certified (within the meaning given in section 8Q(1) of that Act) before the commencement date;

(b) in relation to a review under section 10I(5) of the 1989 Act, means a person certified (within the meaning given in section 10O(1) of that Act) before the commencement date.

(5) In this regulation—

“the Authority” means the Gas and Electricity Markets Authority;

“the commencement date” means 24th April 2017.

Review

8. —(1)Regulation 51 of the Electricity and Gas (Internal Markets) Regulations 2011( 15 ) (review) is amended as follows.

(2) In paragraph (2), for “and ITC Regulation” substitute “, ITC Regulation and CACM Regulation”.

(3) In paragraph (6)—

(a) after the definition of “the 2013 Amending Regulation” insert—

“ “CACM Regulation” means Commission Regulation (EU) No 2015/1222 of 24 July 2015 establishing a guideline on capacity allocation and congestion management; ” ;

(b) in the definition of “Internal Markets Regulations”, at the end insert—

“ the Electricity and Gas (Internal Markets) Regulations 2017; ” .