21B.—(1) (a) The Commission may invite expressions of interest from licensed shippers to act as a shipper of last resort, that is, to ship gas in accordance with this section.

(b) Following public consultation and subject to paragraph (c), the Commission may designate a licensed shipper to act as a shipper of last resort.

(c) Notwithstanding the generality of paragraphs (a) and (b), where the Commission is of the opinion that Bord Gáis Éireann is an appropriate person to carry out the functions of a shipper of last resort under this section, it may, in accordance with paragraph (b), designate Bord Gáis Éireann to act as a shipper of last resort.

(d) The Commission may reconfirm, amend or revoke a designation made under paragraph (b) as it sees fit.

(2) A shipper of last resort shall ship gas to customers of another licensed shipper where—

(a) a licensed shipper with whom customers have a shipping contract ceases or fails to ship gas to those customers in accordance with its contractual obligations, or

(b) following representations to the Commission from a licensed shipper, the Commission is of the opinion that circumstances exist which warrant a direction to that shipper of last resort to ship gas to a customer of a licensed shipper.

(3) The Commission shall include in a designation under subsection (1) any terms, conditions or requirements considered necessary by the Commission in respect of the functions of that shipper of last resort.

(4) The Commission shall specify in a designation—

(a) the terms and conditions under which that shipper of last resort shall ship gas to a customer of a licensed shipper, including those in relation to—

(i) the duration of the obligation,

(ii) the termination of obligation, and

(iii) charges,

(b) the method for calculating the charges for the shipping of gas arising from the designation,

(c) any other matters which the Commission considers necessary,

and that shipper of last resort shall comply with the matters so specified.

(5) Where a shipper of last resort ships gas to or on behalf of a customer of a licensed shipper in accordance with this section, a contract for the shipping of that gas shall be deemed to exist between that customer and the shipper of last resort concerned from the date upon which the shipping of gas to the customer by such shipper of last resort commences, and such contract shall be subject to terms and conditions specified by the Commission in designating the shipper of last resort.

(6) The Commission may designate a person who is both a licensed shipper and a licensed supplier to be a shipper of last resort under this section and a supplier of last resort under section 21A.]