S.L. 545.12 Art. 8Authorisation procedure.

(1) The construction and, or operation of natural gas facilities shall require an authorisation from the Regulator. The

Regulator shall grant authorisations to build and, or operate such facilities, pipelines and associated equipment in accordance with A non-refundable application fee as established in the Second Schedule shall be paid to the Regulator with the application for an authorisation for the supply of natural gas. The amount of the annual authorisation fee shall also be in accordance with the Second Schedule to these regulations. The supply of natural gas including that for wholesale customers shall also require an authorisation from the Regulator in accordance with sub-regulations (2) to (4).

(2) The Regulator shall lay down objective and non-discriminatory criteria which shall be met by an undertaking applying for an authorisation to build and, or operate natural gas facilities or applying for an authorisation to supply natural gas. The non-discriminatory criteria and procedures for the granting of authorisations shall be made public. The Regulator shall ensure that authorisation procedures for facilities, pipelines and associated equipment take into account the importance of the project for the internal market in natural gas where appropriate.

(3) The Regulator shall ensure that the reasons for any refusal to grant an authorisation are objective and non-discriminatory and that they are given to the applicant. Reasons for such refusals shall be notified to the Commission for information.

(4) Without prejudice to regulation 26 and for the development of newly supplied areas and efficient operation generally, the Regulator may decline to grant a further authorisation to build and operate distribution pipeline systems in any particular area once such pipeline systems have been or are proposed to be built in that area and if existing or proposed capacity is not saturated.