Is there any regulation of the price or terms of service in the LNG sector?
The requirements specified under questions 5.3 and 5.4 above also apply in respect of LNG facilities. The Gas Directive 2003/55 provides that terms and conditions for the provision of such services by transmission system operators, including rules and tariffs, must be established in a non-discriminatory and cost-reflective way and must be published. Each of South Hook LNG, Dragon LNG and Grain LNG has been granted an exemption by OFGEM from the application of third party access rights under the Gas Act 1986, which exemptions have been approved by the European Commission (which possesses the right to veto the granting of such an exemption). The exemptions were granted on the condition that the access arrangements in respect of the LNG terminals contained capacity management and anti-hoarding measures. OFGEM retains the right to revoke an exemption if market circumstances change.
Related Questions
- How are changes in terms, conditions, charges, rates and other provisions made in service agreements, catalogs, price lists, rate schedules and like documents and in tariffs?
- Does the regulation apply to a request for prior approval of a benefit or service when such prior approval is not required under the terms of the plan?
- What do public service and nonprofit sector mean? What types of organizations are eligible under the terms of the Freeman ASSIST Program?
