Section 8G: Grounds for certification, Gas Act 1986

This section applies to—

a ... decision under section 8F as to whether to certify an applicant;

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The Authority may only ... decide to certify the applicant, if one of the following ... grounds ("the certification grounds") applies.

The first certification ground is that the applicant meets the ownership unbundling requirement in section 8H.

The second certification ground is that the applicant has asked the Authority to exempt it from the ownership unbundling requirement on the grounds in paragraph (9) of Article 9 of the Gas Directive (alternative arrangements for independence), and the Authority thinks the requirements of that paragraph are met.

The third certification ground is that—

the applicant has asked the Authority to exempt it from the ownership unbundling requirement on the grounds in paragraphs (1) and (2) of Article 14 of the Gas Directive (independent system operator);

the applicant has nominated an independent system operator for designation in accordance with those paragraphs; and

the Authority—

thinks that the requirements of those paragraphs are met, and

is minded to designate the nominated independent system operator.

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The fifth certification ground is that—

the applicant holds a licence under section 7ZA; and

in accordance with the conditions of that licence, the applicant has been granted an exemption from the ownership unbundling requirement—

The sixth certification ground is that—

the applicant holds a licence under section 7ZA; and

either—

the applicant has, in accordance with the conditions of that licence, been granted an exemption in accordance with Article 22 of Directive 2003/55/EC of the European Parliament and of the Council of 26 June 2003 on common rules for the internal market in natural gas (new infrastructure) and remains entitled to the benefit of it; or

another person benefits from such an exemption, and the applicant is in a position which is substantially similar to the position of that person.

But, regardless of whether a certification ground applies, the Authority—

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... must not decide to certify the applicant, if a report prepared by the Secretary of State under section 8E states that the certification of the applicant would put at risk the security of gas supplies in the United Kingdom ...;

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For the purposes of subsection (4), Article 9(9) of the Gas Directive is to be treated as if the comparison with the provisions of Chapter 4 of the Gas Directive were a comparison with the provisions of Chapter 4 as they applied in relation to a member State immediately before IP completion day.

The references in subsection (5) to Article 14(1) and (2) of the Gas Directive are to be treated as references to those provisions with the following modifications—

Article 14(1) is to be read as if the second and third sentences were omitted;

Article 14(2)(b) is to be read as if after "Article 13" there were inserted—as implemented in relation to Great Britain immediately before IP completion day, disregarding for this purpose—iparagraph 2,iiparagraph 3 so far as relating to Article 41(6)(c), andiiiparagraph 4 except as it relates to such minimum standards, if any, as apply in Great Britain;

Article 14(2)(e) is to be read as if—

for "Regulation (EC) No 715/2009" there were substituted , and" the Gas Regulation "

the words from "including" to the end were omitted.

Section 8G: Grounds for certification

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