16. — F15[(1) The Commission may grant or refuse to grant to a person a licence to undertake in the State all or any of the following activities:

(a) the supply of natural gas;

(b) the shipping of natural gas;

(c) the ownership and operation of a transmission system;

(d) the ownership and operation of a distribution system;

(e) the operation of a natural gas storage facility;

(f) the operation of an LNG facility.]

F16[(1A) A licence granted under subsection (1) is subject to such conditions as are specified in the licence.

(1B) Subject to security of supply requirements, it shall be a duty of the Commission to ensure that all customers are entitled to be supplied with gas by a supplier, subject to the supplier’s agreement, regardless of the Member State in which the supplier is registered, on condition that the supplier follows the applicable trading and balancing rules.

(1C) For the purposes of the Directive—

(a) the holder of a licence for the ownership and operation of a transmission system is F17[approved, certified and designated] as a transmission system operator,

(b) the holder of a licence for the operation of a natural gas storage facility is designated as a storage facility operator, and

(c) the holder of a licence for operation of a LNG facility is designated as a LNG facility operator.]

F18[(1D) For the purposes of Article 24 of the Directive, the holder of a licence for the operation of a distribution system is designated as a distribution system operator.]

F19[(1E) Without prejudice to its balancing obligations, a transmission system operator shall be prohibited from applying for a licence in respect of the activities mentioned in subsection (1)(a) or (b).

(1F) The holder of a licence under subsection (1)(a) shall keep for not less than 5 years and make available on a request being made by the Commission, the Competition and Consumer Protection Commission or the European Commission all relevant data relating to all transactions in gas supply contracts and gas derivatives with wholesale customers and transmission system operators as well as storage and LNG operators.

(1G) The data referred to in subsection (1F) shall include details of relevant transactions such as duration, delivery and settlement rules, the quantity, the dates and times of execution and the transaction prices and means of identifying the wholesale customer concerned, as well as specified details of all unsettled gas supply contracts and gas derivatives.

(1H) The Commission may decide to make available to market participants elements of this information provided that commercially sensitive information on individual market players or individual transactions is not released. This paragraph shall not apply to information about financial instruments which fall within the scope of Directive 2004/39/EC of the European Parliament and of the Council of 21 April 2004⁹.

(1I) The obligations on undertakings under subsection (1F) with respect to transactions by them in gas derivatives with wholesale customers and transmission system operators as well as storage and LNG operators shall not apply until such time as the European Commission has adopted Guidelines, referred to in Article 44 of the Natural Gas Market Directive, defining the methods and arrangements for record keeping as well as the form and content of the data to be kept by undertakings.

(1J) In the event that the authorities referred to in subsection (1F) require access to data kept by entities falling within the scope of Directive 2004/39/EC of the European Parliament and of the Council of 21 April 2004, the authorities responsible under that Directive shall provide them with the required data.]

(2) Subject to F20[the regulations (if any) in force under] subsection (4), a person who undertakes any of the activities mentioned in subsection (1) without a natural gas licence in respect of the activity is guilty of an offence and shall be liable on summary conviction to a fine not exceeding €3,000 or to imprisonment for a term not exceeding 3 months, or to both.

(3) Summary proceedings for an offence under this section may be brought and prosecuted by the Commission.

(4) The Commission may specify by regulations—

(a) the classes of activities mentioned in subsection (1) to which subsection (2) F21[…] shall not apply, and

(b) the classes of licence holder to which the requirements of section 13 shall not apply.

F22[(4A) (a) The Commission may, in carrying out its function under section 9(1F) of the Act of 1999, in a licence under subsection (1)(a), (c) or (d), specify such standards of performance and quality in connection with the supply of natural gas to final customers as the Commission determines ought to be achieved.

(b) The holder of a licence referred to in paragraph (a) shall comply with such standards of performance as may be specified by the Commission in the licence concerned.]

(5) An application for a natural gas licence shall be—

(a) in writing and be in such form and contain such information as the Commission may request, and

(b) accompanied by such a fee, if any, as the Commission may determine to be appropriate, having regard to the application being made.

(6) The Commission shall make information on such fees payable under subsection (5)(b) available on the request of an applicant for a natural gas licence.

(7) The Commission shall monitor the activities of a holder of a natural gas licence to ensure that the holder complies with all the terms and conditions of the licence.

(8) The Minister shall specify by regulations the criteria in accordance with which an application for a natural gas licence of any category referred to in F23[…] subsection (1) may be determined by the Commission.

(9) The criteria specified by the Minister under subsection (8) may relate to, any or all of the following:

(a) security of supply,

(b) the safety and security of the natural gas system,

(c) the qualifications of an applicant, including the technical and financial qualifications of the applicant, and

(d) any other criteria specified under subsection (8).

(10) F24[…]

(11) F24[…]

F25[(12) Where—

(a)  the Commission refuses to grant a natural gas licence or to give a consent under section 39A(1) of the Gas Act 1976, or

(b)  the Minister refuses to give a consent under section 40 (1) of the Gas Act 1976,

section 14(7) of the Act of 1999 shall apply to the refusal.]

F26[(13) A holder of a natural gas licence shall—

F27[(a) in the case of a holder of a licence under paragraph (1)(c), (1)(e) or (1)(f), operate, maintain and develop under economic conditions a secure, reliable, economic and efficient transmission, storage or LNG facilities (as the case may be having regard to the activity for which it is licensed) to secure an open market, with due regard to the environment and public safety and ensure adequate means to meet service obligations,]

F28[(aa) in the case of a holder of a licence under paragraph (1)(d), ensure the long-term ability of the system to meet reasonable demands for the distribution of natural gas, and for operating, maintaining and developing under economic conditions a secure, reliable and efficient system in its area, with due regard for the environment and energy efficiency;]

F29[(ab) in the case of a holder of a licence under subsection (1)(a) or (1)(b), operate, maintain and develop under economic conditions such facilities or systems as required for the purpose of carrying out the activity for which it is licensed with due regard to the environment and public safety,]

(b) not discriminate between system users or classes of system users particularly in favour of related undertakings,

(c) provide any natural gas undertaking with sufficient information to ensure that transport or storage of natural gas may take place in a manner compatible with the safe secure and efficient operation of the natural gas system,

(d) without prejudice to any legal obligation to disclose information, preserve the confidentiality of commercially sensitive information obtained in the course of carrying out its business,

F30[(e) in the case of the holder of a licence under subsection (1)(c) take steps to prevent the disclosure in a discriminatory manner of commercially advantageous information about its own activities and shall not, if applicable, disclose any commercially sensitive information to the remaining parts of the undertaking of which it is part, unless this is necessary for carrying out a business transaction,]

F31[(ea) in the case of the holder of a licence under paragraph (1)(c), without prejudice to its obligations to protect commercially sensitive information, make public all information necessary for effective competition and the efficient functioning of the market, ]

F30[(f) in the case of a holder of a licence under subsection (1)(c), (d), (e) or (f) provide users of the system or facility with the information they need for efficient access to, including use of, the system,]

F31[(fa) F32[…]]

F33[(g) in the case of the holder of a licence for the operation of a transmission system, obtain the energy that is uses for carrying out its functions according to transparent, non-discriminating and market-based procedures,

(h) if, in the case of the holder of a licence for the operation of a transmission system or a distribution system, the holder is responsible for balancing that system—

(i) adopt rules for operating the system that are objective transparent and non-discriminatory (including rules for charging users of the system for energy imbalance subject to approval by the Commission), and

(ii) ensure that terms and conditions (including rules and tariffs for providing balancing services) are established in a non-discriminatory and cost reflective way according to a methodology compatible with F34[Article 41(6)] of the Directive, and

(iii) publish those rules, terms and conditions in a publication that is F35[generally available to those users]]

(i)  provide all documents, records, accounts, estimates and other information, whether oral or written, requested from time to time by the Commission, in the form and at the times specified by the Commission, for the purpose of verifying that the holder of the licence is complying with the conditions of the licence, or as may be required by the Commission in the performance of its duties or functions imposed F35[under this Act, and]]

F36[(j) in the case of a holder of a licence for the supply of natural gas or for the shipping of natural gas, ensure that procedures are put in place by every such licence holder to ensure that, in the event of a national gas emergency, final customers are informed of any interruption or possible interruption to the supply of natural gas to those customers as a consequence of the implementation of the Natural Gas Emergency Plan or a direction of the National Gas Emergency Manager.]

F37[(k) in the case of the holder of a licence under subsection (1)(c)—

(i) build sufficient cross-border capacity to integrate European transmission infrastructure accommodating all economically reasonable and technically feasible demands for capacity and taking into account security of natural gas supply, and

(ii) establish and publish transparent and efficient procedures and tariffs for non-discriminatory connection of storage facilities, LNG regasification facilities and industrial customers to the transmission system. Those procedures shall be subject to approval by the F38[Commission.]]

F37[(l) F39[…]]

(14) (a)   Where the Commission is satisfied that all or any of the circumstances set out in paragraph (b) have arisen or are likely to arise it may direct the holder of a natural gas licence, the holder of a consent given by the Minister, before the appointed day, under F40[section 8(6)] or 40(1) of the Gas Act, 1976, the holder of a consent given by the Commission under section 39A(1) of the Gas Act, 1976, a person in respect of whom an order has been made under section 2(1) of the Gas (Amendment) Act, 1987, a person undertaking an activity mentioned in regulations made by the Commission under subsection (4), or the Board, to discontinue or to refrain from specified practices.

(b)   The circumstances referred to in paragraph (a) are where the Commission is of the opinion that:

(i) immediate action is necessary to protect—

(I) public health or safety or the environment,

(II) the continuity of supplies of natural gas, or

(III) the interests of other holders of natural gas licences or consents given under the Gas Act, 1976, or of other persons in respect of whom an order has been made under section 2(1) of the Gas (Amendment) Act, 1987, or undertaking an activity mentioned in regulations made by the Commission under subsection (4),

(ii) the holder of a natural gas licence or a consent aforesaid, or a person in respect of whom an order has been made under section 2(1) of the Gas (Amendment) Act, 1987, is contravening or is likely to contravene a term, condition or requirement and immediate action is necessary to cease or prevent F41[such contravention,]

(iii) immediate action is necessary to prevent dissipation of the assets of the holder of a natural gas licence or a consent aforesaid, or of a person in respect of whom an order has been made under section 2(1) of F41[the Gas (Amendment) Act 1987, or]

F42[(iv) in the case of the holder of a licence granted under subsection (1) to operate a transmission system that the action is necessary to ensure compliance by such licence holder with F43[Regulation (EC) No 715/2009 of the European Parliament and of the Council of 13 July 2009¹⁰.]

(c) Nothing in this subsection shall authorise the Commission to give directions relating to industrial disputes.

(15) Where the Commission is of the opinion that the holder of a natural gas licence or a consent given by the Minister, before the appointed day, under F40[section 8(6)] or 40(1) of the Gas Act, 1976, or a consent given by the Commission under section 39A(1) of the Gas Act, 1976, or a person in respect of whom an order has been made under section 2(1) of the Gas (Amendment) Act, 1987, is contravening or is likely to contravene a term, condition or requirement, sections 24 to 26 of the Act of 1999 shall apply to any actions it may take.

(16) (a)   In this subsection and in subsections (14) and (15) “term, condition or requirement” means—

(i) any term or condition of a natural gas licence,

(ii) any requirement imposed by or under this Act,

(iii) any conditions or requirements imposed by the Minister under subsection (8) or (9) of section 8, or section 40(3) of the Gas Act, 1976, or by the Commission under section 39A(4) (inserted by section 12 ) of the Gas Act, 1976, or

(iv) any duties or obligations conferred on a person by an order made under section 2(1) of the Gas (Amendment) Act, 1987.

(b) Where—

(i) the holder of a natural gas licence, a consent given by the Minister, before the appointed day, under F40[section 8(6)] or 40(1) of the Gas Act, 1976, a consent given by the Commission under section 39A(1) of the Gas Act, 1976, or a person in respect of whom an order has been made under section 2(1) of the Gas (Amendment) Act, 1987, requests the Commission to modify the terms, conditions or requirements of the licence, consent or order, or

(ii) the Commission is of the opinion that:

(I) a natural gas licence or consent aforesaid should be amended,

(II) a modification of a term, condition or requirement of a natural gas licence, consent or order aforesaid is a modification of a class required by an order of the Minister made under section 21 ,

the Commission may modify the terms, conditions or requirements of the licence, consent or order concerned in accordance with sections 20 to 22 of the Act of 1999, and those sections shall, accordingly, be construed as including references to a natural gas licence, consent or order as aforesaid, where appropriate.

(17) Any reference—

(a) in sections 14(7), 29, 30 and 32 of the Act of 1999 to a licence shall be construed as including a reference to a natural gas licence and an order made under section 2(1) of the Gas (Amendment) Act, 1987,

(b) in sections 17(4), 29, 30 and 32 of the Act of 1999 to an authorisation shall be construed as including a reference to a consent of a type mentioned in F40[section 8(6)], 39A(1) or 40(1) of the Gas Act, 1976, other than a consent in regard to an upstream pipeline.

F44[(18) A natural gas undertaking shall comply with any directions made by the Commission under this Act or the Gas Act 1976 within such time period as may be specified by the Commission in the direction.]

F45[(19) In this section, "contravene" includes failure to comply.]