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IRISH CHP LEGAL & REGULATORY MAP

 

 

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IRISH CHP LEGAL / REGULATORY MAP

 

 

ICHPA MEMBERS AREA

   Construction of a CHP Facility Operation of a CHP Facility Connection to the Electricity Grid Electricity Supply and Trading Arrangements

Operation of a CHP Facility

 

7. Gas Shippers / Suppliers Licence

Licence Condition: This Licence is Conditional -
* Needed only if the operator is shipping gas to plants

Gas Shippers / Suppliers Licence

Name of Form:

Application for an Interim Shipping or Supply of Natural Gas Licence.

More permanent generic licences are currently being developed by CER

Required if:

If the operator / electricity generator intends to obtain third party access to transport gas to the plant itself.

Available From:

Download the Application Form Here >>

Submit To:

Commission for Energy Regulation
Plaza House
Belgard Road
Tallaght
Dublin 24

Telephone: +353 (0)1 4000 800
email: info@cer.ie

Application Fee:

The Licensee shall pay to the Commission any amounts specified in, or determined under, a Levy Order, in accordance with the provisions of Levy Order.

Accompanying information required

  • Financial History
  • Business Plan
  • Details of proposals for billing and customer care management
  • Employee details
  • Evidence of how the applicant proposes to comply with any technical requirements associated with the licenced activity.

When to submit:

Upon receipt of planning permission and CER approvals to construct generator and generate electricity

Average Length of Time taken for the application to be processed:

Application will be processed as quickly as possible.

Available Guidance:

A Consultation Paper published by the CER relating to natural gas licences can be downloaded from the following link:

URL: http://www.cer.ie/CERDocs/cer03093.pdf

 

On the 25th of February 2005 the Commission for Energy Regulation (CER) published a notice to Bord Gáis Éireann approving a new Code of Operations for the gas market. The new Code will be implemented from the 1st of April 2005, and will govern the transportation of gas on the Bord Gáis Éireann Transmission and Distribution networks. This Code will replace the existing Transmission Code of Operations (“existing code”).

Further information can be found on the Bord Gais Eireann Transportation Services Section

 

FURTHER INFORMATION:

The operator of a gas-fired CHP facility may purchase gas from a licensed supplier at the plant gate without having any capacity rights in the gas transmission or distribution systems, and thus will not require the licences discussed below. We understand that the majority of CHP operators in Ireland would obtain the gas for their plants in this way.

However, it is also open to an operator/electricity generator to ship gas to the plant itself. (Section 10A(1)(d) of the Gas Act 1976, as amended). The third party access regime is one of regulated access, based on published tariffs, with the CER having the right to approve such tariffs, or the methodologies used for their calculation, in advance.

Under the current Irish Point-to-Point regime, a generator who wishes to ship gas must hold a CER gas Supply/Shipping Licence, as well as signing a Standard Transportation Agreement with Bord Gais Eireann and acceding to the Entry Point Agreements applicable to the Entry Point from which the generator proposes to ship gas. It is then open to the generator to negotiate gas supply arrangements with suppliers at the relevant Entry Point to the Irish system.

Gas Shippers/Suppliers Licence

A person who supplies natural gas without holding a Supply/Shipping Licence may be liable for a fine of up to €3,000 or imprisonment for a term not exceeding 3 months or both. (Section 16(2) of the (Gas Interim) (Regulation) Act 2002 as amended (the "2002 Act"). "Supply" is defined in section 2(1) of the 2002 Act to include "delivery" and therefore a shipper of natural gas must hold a Supply/Shipping Licence.

The licence may be obtained by applying to the CER. At the time of writing the final form of Licence had been approved by the CER but has not yet been published. The application form relates only to applications for the granting, by the CER, of temporary gas Supply/Shipping Licence, prior to the development of permanent generic licences. (View a Consultation Paper published by the CER relating to natural gas licences here)

An applicant for a Supply/Shipping Licence must submit the following documents with its application and pay the following fees:

  • Financial History: audited accounts for the last two years and, where applicable, audited accounts for the last two years of any party holding 20% or more of the shares of the applicant
  • Business Plan: A business plan for the next five years, including annual forecasts of costs, sales, revenues and profits. This should include the assumptions underlying the figures provided. In addition, information on the intended source of finance for the business of the applicant to which the application relates
  • Billing: Details of the proposals for billing and customer care management, including the IT system to be employed for this purpose.
  • Employees: Estimate of the number of people to be employed in relation to this operation and their address of employment.
  • Technical Requirements: The applicant must also provide evidence as to how it proposes to comply with any technical requirements associated with the licensed activity.
  • Application Fee: This has not yet been determined by the CER.


 

Next Section



GAS TRANSPORTATION AND ENTRY POINT AGREEMENTS

 

Construction of a CHP Facility Operation of a CHP Facility Connection to the Electricity Grid Electricity Supply and Trading Arrangements




This Legislative Map is based on material from a report by Arthur Cox Solicitors and ERM Environmental Resources Management Ireland Limited an "Evaluation of the Existing Legislation and Regulation affecting new CHP facility installation in Ireland" commissioned by Sustainable Energy Ireland.

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© Irish CHP Association. Last Updated: Fri 13 May 2005.