2.—(1) In this Act, except where the context otherwise requires—

F1["2019 ACER Regulation" means Regulation (EU) 2019/942 of the European Parliament and of the Council of 5 June 2019² establishing a European Agency for the Cooperation of Energy Regulators;]

F1["2019 Internal Electricity Market Directive" means Directive (EU) 2019/944 of the European Parliament and of the Council of 5 June 2019³ on common rules for the internal market for electricity and amending Directive 2012/27/EU;

"2019 Internal Electricity Market Regulation" means Regulation (EU) 2019/943 of the European Parliament and of the Council of 5 June 2019² on the internal electricity market;]

F2["Agency" means the European Agency for the Cooperation of Energy Regulators established under the 2019 ACER Regulation;]

F3["aggregation" means a function performed by a natural or legal person who combines multiple customer loads or generated electricity for sale, purchase or auction in any electricity market;]

F4["aggregation" means a function performed by a natural or legal person who combines multiple customer loads or generated electricity for sale, purchase or auction in any electricity market;

"ancillary service", in relation to electricity, means a service necessary for the operation of a transmission or distribution system, including balancing and non-frequency ancillary services, but not including congestion management;]

“authorisation” means an authorisation granted under section 16;

“authorised officer” means a person appointed under section 11 to be an authorised officer;

“Authority” means Northern Ireland Authority for Utility Regulation;

F5["balancing" means balancing as defined in point (10) of Article 2 of Regulation (EU) 2019/943 of the European Parliament and of the Council of 5 June 2019 on the internal market for electricity³;

"balancing energy" means balancing energy as defined in Article 2(11) of Regulation (EU) 2019/943 of the European Parliament and of the Council of 5 June 2019 on the internal market for electricity³;]

“Board” means the Electricity Supply Board;

F6["citizen energy community" means a legal entity that —

(a) is based on voluntary and open participation and is effectively controlled by members or shareholders that are natural persons, local authorities, including municipalities, or small enterprises,

(b) has for its primary purpose to provide environmental, economic or social community benefits to its members or shareholders or to the local areas where it operates rather than to generate financial profits, and

(c) may engage in generation, including from renewable sources, distribution, supply, consumption, aggregation, energy storage, energy efficiency services or charging services for electric vehicles or provide other energy services to its members or shareholders;]

F7[“combined heat and power” means the simultaneous generation in one process of—

(a) thermal energy and electrical energy,

(b) thermal energy and mechanical energy, or

(c) thermal, electrical and mechanical energy;]

F8[“Commission” means the Commission for Energy Regulation;]

F9["congestion", in relation to electricity, means congestion as defined in Article 2 F10[(4)] of Regulation (EU) 2019/9433 of the European Parliament and of the Council of 5 June 2019 on the internal market for electricity;

"demand response" means the change of electricity load by final customers from their normal or current consumption patterns in response to market signals, including in response to time-variable electricity prices or incentive payments, or in response to the acceptance of the final customer’s bid to sell demand reduction or increase at a price in an organised market as defined in Article 2(4) of Commission Implementing Regulation (EU) No 1348/2014², whether alone or through aggregation;]

F11[“the Department” means the Department of Enterprise, Trade and Investment in Northern Ireland; ]

“direct line”, in relation to electricity, means an electric line which is used or is to be used to carry electricity for the purpose of supply and the construction of which line is permitted under section 37;

“distribution”, in relation to electricity, means the transport of electricity by means of a distribution system, that is to say, a system which consists of electric lines, electric plant, transformers and switchgear and which is used for conveying electricity to final customers;

“distribution code” means a code in respect of all technical aspects relating to connection to and operation of the distribution system prepared by F12[the distribution system operator] under section 33;

F13[“distribution system operator” means the holder of a licence under section 14(1)(g);]

F14[“economically justifiable demand” means the demand that does not exceed the needs for heat or cooling and which would otherwise be satisfied at market conditions by energy generation processes other than cogeneration;]

F15["electricity derivative" means a financial instrument specified in point 5, 6 or 7 of Section C of Annex I to Directive 2014/65/EU⁴ of the European Parliament and of the Council of 15 May 2014 on markets in financial instruments and amending Directive 2002/92/EC and Directive 2011/61/EU4 , where that instrument relates to electricity;]

F16[“Electricity Market Directive” F17[means Directive (EU) 2019/944 of the European Parliament and of the Council of 5 June 2019 on common rules for the Internal market for electricity and amending Directive 2012/27/EU³;]]

F16[“Electricity Market Regulation” means F18[Regulation (EU) 2019/943 of the European Parliament and of the Council of 5 June 2019 on the internal electricity market;]]

F14[“electricity production from combined heat and power” means electricity produced from combined heat and power calculated in accordance with section 7;]

F19[“electricity supply contract” means a contract for the supply of electricity, but does not include an electricity derivative;]

F20["electricity undertaking" means any person engaged in generation, transmission, distribution, aggregation, demand response, energy storage, supply or purchase of electricity, and who is responsible for the commercial, technical or maintenance tasks related to those functions, including a holder of a licence or authorisation under this Act or a person who has been granted a permit under section 37 of the Principal Act, but does not include final customers;]

F21[“electric line“ has the meaning assigned to it by section 4(1) of the ESB (Electronic Communications Networks) Act 2014;]

“electric plant” means any plant, apparatus or appliance used for, or for purposes connected with, the generation, transmission, distribution or supply of electricity, other than—

(a) an electric line,

(b) a meter used for ascertaining the quantity of electricity supplied to any premises, or

(c) an electrical appliance under the control of a consumer;

F22["energy storage" means, in the electricity system, deferring the final use of electricity to a moment later than when it was generated, or the conversion of electrical energy into a form of energy which can be stored, the storing of such energy, and the subsequent reconversion of such energy into electrical energy or use as another energy carrier;]

F23["energy storage facility" means, in the electricity system, a facility where energy storage occurs;]

F24[“energy undertaking” means an electricity undertaking or a natural gas undertaking;]

F1["ENTSO for Electricity" means the European Network of Transmission System Operators for Electricity referred to in Article 28 of the 2019 Internal Electricity Market Regulation;]

“establishment day” means the day appointed under section 8;

F1["EU DSO entity" means the European Entity for Distribution System Operators referred to in Article 52 of the 2019 Internal Electricity Market Regulation;]

F25["final customer" means a customer who purchases electricity for own use;]

“forecast statement” has the meaning assigned to it by section 38;

“functions” includes powers and duties;

F26[“gas installer” means LPG installer or natural gas installer, as the case may be;]

“generate”, in relation to electricity, means to produce electricity;

“generating station” means a station for the generation of electricity;

“grid code” means a code in respect of all technical aspects relating to connection to and operation of the transmission system prepared by F27[the transmission system operator] under section 33;

F1["guidelines", in relation to electricity, means guidelines adopted pursuant to Article 61 of the 2019 Internal Electricity Market Regulation;]

F14[“high efficiency combined heat and power” means combined heat and power production which on an annual basis—

(a) in the case of small scale combined heat and power and micro-combined heat and power, achieves primary energy savings calculated in accordance with paragraphs 3 and 4 of Schedule 3, and

(b) in the case of all other combined heat and power, achieves primary energy savings calculated in accordance with paragraphs 3 and 4 of Schedule 3 of at least 10 per cent compared with the references for separate production of heat and electricity;]

F28["household customer" means a customer who purchases electricity for the customer’s own household consumption, excluding commercial or professional activities;]

F29["interconnector" means equipment used to link electricity systems;]

F30[“Internal Market Regulations” means the European Communities (Internal Market in Electricity) Regulations 2000 and 2005;]

“licence” means a licence issued under section 14;

F16[“linepack” means the storage of gas by compression in gas transmission and distribution systems, but not including facilities reserved for transmission system operators carrying out their functions;]

F26[“LPG” means liquefied petroleum gas;]

F26[“LPG fitting” means any non-portable appliance, apparatus or other thing including associated pipework and flueing which is used or designed to be used by—

(a) a domestic customer, or ]

F26[(b) such class or classes of industrial or commercial customer as the Commission may specify from time to time, in connection with the consumption or use of LPG;]

in connection with the consumption or use of LPG;

F31[“LPG incident”means an event or occurrence of a class prescribed by regulations made by the Commission under section 9JG;

“LPG safety licence” means a licence granted under section 9JE;

“LPG undertaking”means any person who imports LPG or purchases LPG directly from a refinery within the State and makes LPG available to individual domestic or commercial final customers by way of LPG cylinder, bulk tank or via a piped LPG distribution network;]

F32["market participant", in the context of electricity, means a market participant as defined in point 25 of Article 2 of Regulation (EU) 2019/943 of the European Parliament and of the Council of 5 June 2019 on the internal market for electricity³;]

F11[“the Memorandum of Understanding” means the Memorandum of Understanding relating to the establishment and operation of a single competitive wholesale electricity market in the State and in Northern Ireland entered into between the Government of Ireland and the Government of the United Kingdom of Great Britain and Northern Ireland signed on behalf of the Government of Ireland on 5 December 2006 and on behalf of the Government of the United Kingdom of Great Britain and Northern Ireland on 6 December 2006;]

F14[“micro-combined heat and power unit” means a combined heat and power unit with a maximum capacity of less than 50 kWe;]

F33[“Minister” means Minister for Communications, Energy and Natural Resources;]

F16[“natural gas exchange” means a virtual trading location for the purchase and sale of natural gas;]

F34[“natural gas fitting” means any appliance, apparatus or other thing including associated pipework and flueing which is used or designed to be used by—

(a) a domestic customer, or

(b) such class or classes of industrial or commercial customer as the Commission may specify from time to time,

in connection with the consumption or use of natural gas whether the appliance, apparatus or thing is the property of a natural gas undertaking or otherwise;]

F35[“natural gas infrastructure” means any pipeline, facility, structure or installation which is or has been established, maintained or operated, for the purpose of the supply, storage, transmission, distribution and use of natural gas under a natural gas licence;]

F36["Natural Gas Market Directive" means Directive 2009/73/EC of the European Parliament and Council of 13 July 2009² as amended by Directive (EU) 2019/692 of the European Parliament and of the Council of 17 April 2019¹;]

F16[“Natural Gas Market Regulation” means Regulation (EC) 715/2009 of the European Parliament and of the Council of 13 July 2009;]

F24[“natural gas undertaking” means a person engaged in the transmission, distribution, supply or storage of natural gas, including any holder of a licence or a consent under this Act, or any person who has been granted a licence or given a consent under the Gas Acts, 1976 to 2002,]

F1["network codes", in relation to electricity, means network codes established pursuant to Article 59 of the 2019 Internal Electricity Market Regulation;

"non-frequency ancillary service", in in relation to electricity, means a service used by a transmission system operator or distribution system operator for steady state voltage control, fast reactive current injections, inertia for local grid stability, short-circuit current, black start capability and island operation capability;]

F37["offshore" has the meaning assigned to it by section 13A;]

F38[“petroleum undertaking” has the meaning given to it by section 13A(1);]

F39[“piped LPG distribution network” means a pipeline system connected to a central storage bulk tank or LPG cylinder but not including a bulk tank or LPG cylinder as the case may be, and includes pipework above and below ground and all other equipment necessary upstream of the point of delivery and downstream of the emergency control valve, supplying gas to two or more customers;]

“prescribe” means to prescribe by regulations made by the Minister or the Commission under this Act and cognate words shall be construed accordingly;

“Principal Act” means the Electricity (Supply) Act, 1927;

F11[“public electricity supplier” means the holder of a licence under section 14(1)(h);]

F40["recharging point" means an interface that is capable of charging one electric vehicle at a time or exchanging the battery of one electric vehicle at a time;]

“record” means any book, document or any other written or printed material in any form including any information stored, maintained or preserved by means of any mechanical or electronic device, whether or not stored, maintained or preserved in a legible form;

F1["regional coordination centre" means a regional coordination centre established pursuant to Article 35 of the 2019 Internal Electricity Market Regulation;]

“renewable, sustainable or alternative forms of energy” means energy used in the production of electricity which uses as its primary source one or a combination of more than one of the following—

(a) wind,

(b) hydro,

(c) biomass,

(d) waste, including waste heat,

(e) biofuel,

(f) geothermal,

(g) fuel cells,

(h) tidal,

(i) solar,

(j) wave;

F41[(k) ambient energy.]

F11[“the SEM Committee” means the committee referred to in Section 8A;]

F11[“SEM matter” shall be construed in accordance with section 8A(5);]

F42["the Single Electricity Market" means the arrangements in the State and Northern Ireland—

(a) initially described in the Memorandum of Understanding,

(b) designed to promote the establishment and operation of a single competitive wholesale electricity market in the State and Northern Ireland, and

(c) which allow for the efficient application of the European Union rules for cross-border trade in electricity contained within or adopted pursuant to the Electricity Market Regulation as amended from time to time and as supplemented by—

(i) network codes established under Article 6 of that Regulation, and

(ii) guidelines adopted under Article 18 of that Regulation;]

F11[“Single Electricity Market operator” means the holder of a licence under section 14(1)(j) or a person exempted from the requirement to hold such a licence;]

“single premises” means one or more buildings or structures, occupied and used by a person, where each building or structure is adjacent to, or contiguous with, the other building or structure;

F14[“small scale combined heat and power” means combined heat and power units with an installed capacity greater than 50 kWe and less than 1 MWe;]

“supply”, in relation to electricity, means supply through electric lines to final customers for consumption;

F1["system operation region" means the system operation region to be approved by the Agency pursuant to Article 36 of the 2019 Internal Electricity Market Regulation;]

“transmission”, F43[subject to section 2A,] in relation to electricity, means the transport of electricity by means of a transmission system, F44[“in the State or offshore, or both,] that is to say, a system which consists, wholly or mainly, of high voltage lines and electric plant and which is used for conveying electricity from a generating station to a substation, from one generating station to another, from one substation to another or to or from any interconnector or to final customers but shall not include any such lines which the Board may, from time to time, with the approval of the Commission, specify as being part of the distribution system but shall include any interconnector owned by the Board.

F13[“transmission system operator” means the holder of a licence under section 14(1)(e);]

F1["Union wide network development plan" means the plan adopted pursuant to Article 30(1)(b) of the 2019 Internal Electricity Market Regulation;]

F14[“useful heat” means heat produced in a cogeneration process to satisfy an economically justifiable demand for heat or cooling;]

F45[“wholesale customer” means a natural or legal person purchasing electricity for the purpose of resale inside or outside the system where he or she is established.]

F11[(1A) (a) Notwithstanding the definition of "Department" in subsection (1) where the electricity functions of the Department of Enterprise, Trade and Investment in Northern Ireland are, under the law for the time being in force in Northern Ireland, exercisable by any other Department, Ministry or authority, references to the Department in this Act shall be construed as references to such other Department, Ministry or authority, as the case may be.

(b) Notwithstanding the definition of "Authority" in subsection (1) where the electricity functions of the Authority are, under the law for the time being in force in Northern Ireland, exercisable by any other authority, Department, Ministry, person or statutory body, references to the Authority in this Act shall be construed as references to such other authority, Department, Ministry, person or statutory body, as the case may be.

(c) In this subsection "electricity functions" has the same meaning as it has in Article 9 of the Electricity (Single Wholesale Market) (Northern Ireland) Order 2007.]

(2) In this Act—

(a) a reference to a section or Schedule is a reference to a section of or Schedule to this Act unless it is indicated that a reference to some other enactment is intended,

(b) a reference to a subsection, paragraph or subparagraph is a reference to a subsection, paragraph or subparagraph of the provision in which the reference occurs unless it is indicated that reference to some other provision is intended, and

(c) a reference to the performance of functions includes with respect to powers and duties, a reference to the exercise of powers and the carrying out of duties.

(3) A reference to any enactment shall be construed as a reference to that enactment as amended, adapted or extended by or under any subsequent enactment, including this Act.

(4) The Minister may from time to time by order amend the definition of renewable, sustainable or alternative sources of energy by the addition of further renewable, sustainable or alternative sources of energy.