S.L. 545.12 Art. 19Closed distribution systems.

(1) The Regulator may classify a system which distributes gas within a geographically confined industrial, commercial or shared site and does not, without prejudice to sub-regulation (4), supply household customers, as a closed distribution system if:

(a) for specific technical or safety reasons, the operations or the production process of the users of that system are integrated; or

(b) that system distributes gas primarily to the owner or operator of the system or to their related undertakings.

(2) The Regulator may exempt the operator of a closed distribution system from the requirement under regulation 22 that tariffs, or the methodologies underlying their calculation, are approved prior to their entry into force in accordance with regulation 29.

(3) Where an exemption is granted under sub-regulation (2), the applicable tariffs, or the methodologies underlying their calculation, shall be reviewed and approved in accordance with regulation 29 upon request by a user of the closed distribution system.

(4) Incidental use by a small number of households with employment or other similar associations with the owner of the distribution system and located within the area served by a closed distribution system shall not preclude an exemption under sub-regulation (2) being granted.