Energy (Miscellaneous Provisions) Act 2006

PART 2

Amendments to Act of 1999

Functions of Commission regarding all-island energy market.

3.— The Act of 1999 is amended by the insertion after section 9A of the following section:

“Functions of Commission regarding all-island energy market.

9B.— (1) It shall be, and be deemed always to have been, a function of the Commission to participate in the development of an all-island energy market, including the preparation of proposals and the provision of advice to the Minister in regard to any part or aspect of the establishment, management and operation of such a market.

(2) The Commission may take all actions it considers necessary, in carrying out its function under subsection (1).

(3) The powers conferred on the Commission by subsection (1) include the power to direct—

(a) a person holding a licence under section 14(1)(e) or ESB National Grid to negotiate with any person holding an analogous licence as respects any part of Northern Ireland and to enter into an agreement with any such person to establish an entity to be known as a single market operator,

(b) the holder of a licence under section 14(1)(e) or ESB National Grid to take such steps as are necessary to ensure the proper functioning and operation of the system of trading in electricity for which it is responsible on foot of a direction from the Commission under this Act or the European Communities (Internal Market in Electricity) Regulations 2000 and 2005, and

(c) the holder of a licence granted under section 14 or a person who stands licensed to generate electricity by virtue of subsection (1A) or (1B) of section 14 to comply with any directions, codes or rules made by the Commission under this Act or the European Communities (Internal Market in Electricity) Regulations 2000 and 2005.

(4) The power of the Commission under subsection (3) includes the power to direct that necessary expenditure be undertaken by the holder of a licence under section 14(1)(e) or ESB National Grid.

(5) Without prejudice to the generality of subsection (2) the Commission in exercising its powers under this section may—

(a) liaise,

(b) co-operate, or

(c) enter into arrangements including arrangements involving—

(i) the sharing of information, or

(ii) the sharing of expenditure,

with a relevant person in any other Member State of the European Union and in particular the Northern Ireland Authority for Energy Regulation.

(6) In this section—

‘ all-island energy market ’ means a market in energy for the island of Ireland resulting from the integration of the equivalent markets in Ireland with those of Northern Ireland;

‘ island of Ireland ’ includes its islands and seas;

‘ ESB National Grid ’ means the National Grid Business Unit of the Board performing the functions of the transmission system operator under this Act and the European Communities (Internal Market in Electricity) Regulations 2000 and 2005, pending the granting of a licence under section 14(1)(e);

‘ market in energy ’ includes a market in respect of—

(a) the generation, supply, transmission, distribution and trading, including the export or import, of electricity, including electricity generated from renewable sources,

(b) the storage, supply, transmission, distribution and trading, including the export and import, of natural gas,

(c) energy efficiency services,

(d) energy research and development, and

(e) other sustainable energy activities;

‘ relevant person ’ means—

(a) any person exercising a function in relation to an energy market which corresponds to any of the functions of the Commission or the Minister under—

(i) the Electricity and Gas Regulation Acts 1999 to 2002,

(ii) European Communities (Internal Market in Electricity) Regulations 2000 and 2005,

and

(b) any person engaged in—

(i) generation, supply, including the export or import, transmission or distribution of electricity, or

(ii) storage, supply including the export or import, transmission or distribution of natural gas;

‘ single market operator ’ means an entity established pursuant to an agreement made under subsection (3) for the purpose of establishing and operating a system of contracts and arrangements (including such rights and obligations as appear to the Commission to be necessary) for trading in electricity on the island of Ireland.”.