FE Licence Last Modified: 31 August 2018 Firmus Energy (Distribution) Limited 1 LICENCE FOR THE CONVEYANCE OF GAS IN NORTHERN IRELAND 1 Licence granted to Bord Gais Eireann on 24 March 2005 and assigned to BGE (NI) Distribution Ltd from 20 June 2005. BGE (NI) Distribution Ltd changed name to Firmus Energy (Distribution) Limited from 4 May 2006. FE Licence CONTENTS Page GRANT AND TERMS OF LICENCE ...................................................................................... 1 PART 1 GENERAL CONDITIONS APPLICABLE TO THE LICENCE HOLDER .............. 3 Condition 1.1: Interpretation and Construction ......................................................................... 3 Condition 1.2: Separate Accounts for Separate Businesses ..................................................... 12 Condition 1.3: Provision of Information to the Authority ....................................................... 17 Condition 1.4: Consultation with the Consumer Council for Northern Ireland ...................... 19 Condition 1.5: Restriction on Use of Certain Information ...................................................... 20 Condition 1.6: Powers of Entry ............................................................................................... 23 Condition 1.7: Authorisation of Persons .................................................................................. 25 Condition 1.8: Exercise of Powers of Entry ............................................................................ 27 Condition 1.9: Modifications ................................................................................................... 28 Condition 1.10: Assignment of Licences ................................................................................. 29 Condition 1.11: Transfer of Business ...................................................................................... 30 Condition 1.12: Disposal of Relevant Assets .......................................................................... 31 Condition 1.13: Payment of Fees to the Authority .................................................................. 34 Condition 1.14: Notices ........................................................................................................... 37 Condition 1.15: Not Used ........................................................................................................ 39 Condition 1.16: Independence of the Licensed Business ........................................................ 40 Condition 1.17: Business Separation Compliance Plan ........................................................... 46 Condition 1.18: Not Used ........................................................................................................ 51 Condition 1.19: Not Used ........................................................................................................ 51 Condition 1.20: Not Used ........................................................................................................ 51 Condition 1.21: Not Used ........................................................................................................ 51 Condition 1.22: Not Used ........................................................................................................ 51 Condition 1.23: Systems to Facilitate Change of Supplier ...................................................... 52 Condition 1.24: Prohibition of Discrimination in provision of services .................................. 54 Condition 1.25: Provision of Information to Gas Suppliers .................................................... 55 Condition 1.26: Regulatory Instructions and Guidance ........................................................... 56 PART 2 CONDITIONS APPLICABLE TO THE CONVEYANCE OF GAS BY THE LICENCE HOLDER ............................................................................................................... 61 Condition 2.1 Not Used ....................................................................................................... 61 Condition 2.1A: Supplier of Last Resort ................................................................................. 62 FE Licence Condition 2.2: Conveyance Charges, Other Terms for the Conveyance of Gas and the provision of Conveyance services ........................................................................................... 63 Condition 2.2A: Terms and Conditions of Gas Contracts with Domestic Consumers ............ 68 Condition 2.3: Connection Charges and Obligation to Connect.............................................. 71 Condition 2.4: Network Code .................................................................................................. 79 Condition 2.4A Compliance with System Operator Agreements ............................................ 86 Condition 2.5: Provision and Return of Meters ....................................................................... 87 Condition 2.6: Conduct of Transportation Business ............................................................... 92 Condition 2.6A: Provision of information to a relevant gas licence holder ............................ 94 Condition 2.7: Emergency Services and Obligations .............................................................. 96 Condition 2.7A: Distribution Marketing Code ...................................................................... 100 Condition 2.8: Standards of Performance .............................................................................. 103 Condition 2.8A: Complaints Handling Procedure ................................................................. 105 Condition 2.9: Maintenance of Records ................................................................................ 107 Condition 2.9A: Consumer Information Code....................................................................... 108 Condition 2.9B: Preparation, Revision Of and Compliance with Codes of Practice ............ 110 Condition 2.10: Powers of Licensee under Article 13 of the Order ...................................... 112 Condition 2.11: Network Forecasts ....................................................................................... 113 Condition 2.11A: Forecasting Party Agreement .................................................................... 115 Condition 2.12: Exit Capacity Booking ................................................................................. 118 Condition 2.13 Not Used ...................................................................................................... 120 Condition 2.14: System Operator Designation ..................................................................... 121 Condition 2.15: Not Used ..................................................................................................... 122 Condition 2.16: Common Branding ....................................................................................... 123 Condition 2.17: Common Network Tariff ............................................................................. 124 Condition 2.18: Reasonable and Prudent Operator................................................................ 125 Condition 2.19: Trading with Associated Businesses ............................................................ 126 PART 3: DEVELOPMENT PLAN ....................................................................................... 128 Condition 3.1 Definitions................................................................................................... 128 Condition 3.2 Development Plan ....................................................................................... 131 Condition 3.3: Not Used ....................................................................................................... 137 Condition 3.4 Provision of Information Concerning Market Development .......................... 138 Condition 3.5 Provision of Information ............................................................................. 139 Condition 3.6 Notification of opening of supply market ................................................... 140 Condition 3.7 Prohibition on conveyance by means of transmission pipe-lines ............... 141 FE Licence Condition 3.8 Undertaking from holding company ............................................................ 142 Condition 3.8A: Asset Management ...................................................................................... 145 Condition 3.9 Relevant conditions ..................................................................................... 147 Annex 1 to Part 3 AREA COVERED BY THE TOWNS DEVELOPMENT PLAN .......... 148 Annex 2 to Part 3 ................................................................................................................... 152 TOWNS DEVELOPMENT PLAN ....................................................................................... 152 Annex 3 to Part 3 ................................................................................................................... 153 GENERAL DEVELOPMENT PLAN ................................................................................... 153 PART 4 THE PRICE CONTROL CONDITIONS ................................................................ 159 Condition 4.1 Charging methodology for the conveyance of gas ..................................... 159 Condition 4.2 Review Process & Disapplication Notices ................................................. 163 Condition 4.3 Establishing the Basic Best Available Values ...............................................