S.L. 545.12 Art. 29Duties and powers of the Regulator.

(1) The Regulator shall have the following duties:

(a) fixing or approving, in accordance with transparent criteria, distribution tariffs or their methodologies;

(b) ensuring compliance of distribution system operators, and where relevant, system owners, as well as of any natural gas undertakings, with their obligations under these regulations and other relevant Community legislation, including as regards cross-border issues;

(c) cooperating in regard to cross-border issues with the regulatory authority or authorities of the Member States concerned and with the Agency;

(d) complying with, and implementing, any relevant legally binding decisions of the Agency and of the Commission;

(e) reporting annually on its activity and the fulfilment of its duties to the relevant authorities of the Member States, the Agency and the Commission. Such reports shall cover the steps taken and the results obtained as regards each of the tasks listed in this regulation;

(f) ensuring that there are no cross-subsidies between distribution, storage, LNG and supply activities;

(g) monitoring compliance with and reviewing the past performance of network security and reliability rules and setting or approving standards and requirements for quality of service and supply or contributing thereto together with other competent authorities;

(h) monitoring the level of transparency, including of wholesale prices, and ensuring compliance of natural gas undertakings with transparency obligations;

(i) monitoring the level and effectiveness of market opening and competition at wholesale and retail levels, including on natural gas exchanges, prices for household customers including prepayment systems, switching rates, disconnection rates, charges for and the execution of maintenance services and complaints by household customers, as well as any distortion or restriction of competition, including providing any relevant information, and bringing any relevant cases to the relevant competition authorities;

(j) monitoring the occurrence of restrictive contractual practices, including exclusivity clauses which may prevent large non-household customers from contracting simultaneously with more than one supplier or restrict their choice to do so, and, where appropriate, informing the national competition authorities of such practices;

(k) respecting contractual freedom with regard to interruptible supply contracts as well as with regard to long-term contracts provided that they are compatible with Community law and consistent with Community policies;

(l) monitoring the time taken by distribution system operators to make connections and repairs;

(m) monitoring and reviewing the access conditions to storage, linepack and other ancillary services as provided for in regulation 23. In the event that the access regime to storage is by means of negotiated access, that task shall exclude there viewing of tariffs;

(n) helping to ensure, together with other relevant authorities, that the consumer protection measures, including those set out in the First Schedule, are effective and enforced;

(o) publishing recommendations, at least annually, in relation to compliance of supply prices with regulation 7, and providing those to the competition authorities, where appropriate;

(p) ensuring access to customer consumption data, the provision for optional use, of an easily understandable harmonised format at national level for consumption data and prompt access for all customers to such data under point (h) of the First Schedule;

(q) monitoring the implementation of rules relating to the roles and responsibilities of distribution system operators, suppliers and customers and other market parties pursuant to Regulation (EC) No 715/2009;

(r) monitoring the correct application of the criteria that determine whether a storage facility falls under negotiated or regulated access; and

(s) monitoring the implementation of safeguards measures as referred to in regulation 31;

(t) contributing to the compatibility of data exchange processes for the most important market processes at regional level.

(2) While preserving its independence, without prejudice to its own specific competencies and consistent with the principles of better regulation, the Regulator shall, as appropriate, closely cooperate with other relevant national authorities when carrying out the duties set out in sub-regulation (1).

(3) Any approvals given by the Regulator under these regulations are without prejudice to any duly justified future use of its powers by the Regulator under this regulation or to any penalties imposed by other relevant authorities or the Commission.

(4) The Regulator shall be responsible for fixing or approving sufficiently in advance of their entry into force at least the methodologies used to calculate or establish the terms and conditions for:

(a) connection and access to national networks, including transmission and distribution tariffs, and terms, conditions and tariffs for access to LNG facilities. Those tariffs or methodologies shall allow the necessary investments in the networks and LNG facilities to be carried out in a manner allowing those investments to ensure the viability of the networks and LNG facilities;

(b) the provision of balancing services which shall be performed in the most economic manner and provide appropriate incentives for network users to balance their input and off-takes. The balancing services shall be provided in a fair and non-discriminatory manner and be based on objective criteria; and

(c) access to cross-border infrastructures, including the procedures for the allocation of capacity and congestion management.

(5) The methodologies or the terms and conditions referred to in sub-regulation (4) shall be published.

(6) In fixing or approving the tariffs or methodologies and the balancing services, the Regulator shall ensure that the distribution system operator is granted appropriate incentive, over both the short and long term, to increase efficiencies, foster market integration and security of supply and support the related research activities.

(7) The Regulator shall monitor congestion management of national gas interconnectors, and the implementation of congestion management rules. To that end, market operators shall submit its congestion management rules, including capacity allocation, to the Regulator. The Regulator may request amendments to those rules.

(8) The Regulator may require storage, LNG and distribution system operators, if necessary, to modify the terms and conditions, including tariffs and methodologies referred to in this regulation, to ensure that they are proportionate and applied in a non-discriminatory manner. In the event that the access regime to storage is to be achieved by means of negotiated access, that task shall exclude the modification of tariffs. In the event of delay in the fixing of distribution tariffs, the Regulator shall have the power to fix or approve provisional distribution tariffs or methodologies and to decide on the appropriate compensatory measures if the final tariffs or methodologies deviate from those provisional tariffs or methodologies.

(9) Any party having a complaint against a storage, LNG or distribution system operator in relation to that operator’s obligations under these regulations may refer the complaint to the Regulator which, acting as dispute settlement authority, shall issue a decision within a period of two months after receipt of the complaint. That period may be extended by two months where additional information is sought by the Regulator. That extended period may be further extended with the agreement of the complainant.

(10) Any party who is affected and who has a right to complain concerning a decision on methodologies taken pursuant to this regulation or, where the Regulator has a duty to consult, concerning the proposed tariffs or methodologies, may, at the latest within two months, following publication of the decision or proposal for a decision, submit a complaint for review. Such a complaint shall not have suspensive effect.

(11) Complaints referred to in sub-regulations (9) and (10) shall be without prejudice to the exercise of rights of appeal under Community or national law.

(12) Decisions taken by the Regulator shall be fully reasoned and justified to allow for judicial review. The decisions shall be available to the public while preserving the confidentiality of commercially sensitive information.

(13) The Regulator shall ensure that the charging of distribution tariffs of natural gas does not discriminate against gas from renewable energy sources.