Statutory Instrument No. 328 of 2003

REGULATIONS

entitled

European Communities (Internal Market in Electricity) (Amendment) Regulations 2003

S.I. No. 328 of 2003

European Communities (Internal Market in Electricity) (Amendment) Regulations 2003

I, Dermot Ahern, Minister for Communications, Marine and Natural Resources, in exercise of the powers conferred on me by section 3 of the European Communities Act 1972 ( No. 27 of 1972 ) and for the purpose of giving further effect to Directive 96/92/EC of the European Parliament and of the Council of 19 December 1996 concerning common rules for the internal market in electricity¹ , hereby make the following regulations:

1. These Regulations may be cited as the European Communities (Internal Market in Electricity) (Amendment) Regulations 2003.

2. In these Regulations “Principal Regulations” means the European Communities (Internal Market in Electricity) Regulations 2000 ( S.I. No. 445 of 2000 ).

3. The Principal Regulations are amended by the substitution of the following for Regulation 10:

“(1) (a)             Subject to paragraph (2), the Board shall make available to the National Grid Business Unit such resources (which resources shall include resources relating to personnel, equipment, premises and financing) as are necessary for the National Grid Business Unit to discharge its functions, until such time as the transfer scheme provided for by Regulation 13 and the infrastructure agreement provided for by Regulation 18 have been made.

 (b)            Subject to paragraph (2), the Board shall make available to EirGrid such resources of the National Grid Business Unit (which resources shall include resources relating to personnel, equipment, premises and financing) as are necessary for EirGrid to discharge its functions, until such time as the transfer scheme provided for by Regulation 13 and the infrastructure agreement provided for by Regulation 18 have been made.

 (c)             Nothing in subparagraph (b) shall be construed as requiring the secondment of the personnel of the National Grid Business Unit to EirGrid.

(2) The Commission shall give directions to the Board in respect of the allocation of resources for the purposes of paragraph (1) and the Board shall comply with directions so given.

(3) The arrangements provided for by this Regulation shall continue until such time as the transfer scheme provided for by Regulation 13 and the infrastructure agreement provided for by Regulation 18 have been made and until such time it shall be the duty of the Board and the National Grid Business Unit to ensure that the greatest degree of separation of the business of the National Grid Business Unit from that of the Board which is practicable is maintained at all times.

(4) To the extent that Regulation 5 of the Electricity Regulation Act 1999 (Trading Arrangements in Electricity) Regulations 2000 ( S.I. No. 49 of 2000 ) continues to apply, paragraphs (1), (2) and (3) are in addition to and not in substitution for the said Regulation 5.”.

4. Regulation 50 of the Principal Regulations is amended --

(a) by the substitution of the following for paragraph (2):

“(2)  (a)        Subject to the provisions of this Regulation, the first Chief Executive shall, if willing, be the person who was the Managing Director of the Board's National Grid Business Unit immediately before the incorporation of EirGrid.

(b)        Where the chairperson of EirGrid is authorised by the directors of EirGrid to do so, the chairperson of EirGrid shall write to the person referred to in subparagraph (a),--

(i) enclosing a copy of the terms and conditions upon and subject to which the Chief Executive shall hold office and which have been determined by the directors of EirGrid with the consent of the Minister and the Minister for Finance in accordance with paragraph (5) and offering him appointment as Chief Executive, upon and subject to those terms and conditions, to take effect on such date as is therein specified by the chairperson, such date to be a date not earlier than 5 weeks and not later than 7 weeks after the date of the letter;

(ii)requesting that this person accept in writing by letter received by the chairperson within 4 weeks from the date of the chairperson's letter, the appointment as Chief Executive, upon and subject to those terms and conditions, to take effect on the date specified by the chairperson,

and

(iii)stating that if the person to whom the letter is addressed does not within such period of 4 weeks from the date of the letter accept in writing the appointment as Chief Executive, upon and subject to those terms and conditions, with effect from the date specified in the letter by the chairperson, then the provisions of subparagraph (a) shall cease to have effect.

(c)        Subject to subparagraph (d), where the person referred to in subparagraph (a) accepts the appointment as Chief Executive in accordance with subparagraph (b)(ii), that person shall stand appointed as Chief Executive with effect from the date specified in the letter from the chairperson as the date of commencement in respect of such appointment.

(d)        Where the person referred to in subparagraph (a) accepts the appointment as Chief Executive in accordance with subparagraph (b)(ii) within the period of 4 weeks referred to in subparagraph (b)(ii) that person's term of appointment may commence on such earlier date as may be agreed in writing by that person and the chairperson.

(e)        If the person referred to in subparagraph (a) does not accept in writing the appointment as Chief Executive subject to the terms and conditions referred to in subparagraph (b)(i) within the period of 4 weeks referred to in subparagraph (b)(ii), then the provisions of subparagraph (a) shall cease to have effect.

(f)        Until such time as the transfer scheme provided for by Regulation 13 and the infrastructure agreement provided for by Regulation 18 have been made, the Chief Executive shall be seconded to the National Grid Business Unit to discharge such functions of the Managing Director of the National Grid Business Unit as relate to the transmission system operator under these Regulations.

(g)        The performance by the Chief Executive of such duties of the Managing Director of the National Grid Business Unit shall be deemed to be the performance of duties as Chief Executive of EirGrid and the Chief Executive in performing such duties shall be answerable to the directors of EirGrid.

(h)        The Chief Executive shall not be entitled to remuneration for the performance of such duties of the Managing Director of the National Grid Business Unit other than to such remuneration as he is entitled to as Chief Executive in accordance with paragraph (5).”,

(b) by the substitution of the following for paragraph (3):

“(3)  (a)        The Chief Executive, other than in the case of the person referred to in paragraph (2)(a), shall be appointed by the directors of EirGrid.

(b)        In the case of the person referred to in paragraph (2)(a), where the provisions of paragraph (2) are complied with, that person shall stand appointed as the first Chief Executive in accordance with the provisions of paragraph (2).

(c)        The Chief Executive may not serve in that position for a total of more than 7 years, unless the directors of EirGrid and the Minister consider that there are exceptional circumstances which warrant a limited extension of that period.

(d)        The Chief Executive may be removed from office by the directors of EirGrid.”,

and

(c)  by the substitution of the following for paragraph (5):

“(5) The Chief Executive shall hold office upon and subject to such terms and conditions (including terms and conditions relating to remuneration, superannuation and allowances) as may be determined by the directors with the consent of the Minister and the Minister for Finance.”.

5. Regulation 53 of the Principal Regulations is amended by the substitution of the following for paragraph (2):

“(2) Subject to paragraph (3), the directors, other than the Chief Executive, shall be appointed and may be removed from office by the Minister with the consent of the Minister for Finance.”.

6. The Principal Regulations are amended by the substitution of the following for Regulation 54:

“54. The terms and conditions (other than those relating to remuneration (which term includes allowances for expenses)) upon and subject to which the chairperson and the other directors (other than the Chief Executive) hold their respective office shall be determined by the Minister with the consent of the Minister for Finance.”.

EXPLANATORY NOTE

(This note is not a part of the Instrument and does not purport to be a legal interpretation)

These Regulations give further legal effect to Directive No. 96/92/EC of the European Parliament and of the Council of 19th December 1996, concerning common rules for the internal market in electricity, by amending the European Communities (Internal Market in Electricity) Regulations 2000 ( S.I. No. 445 of 2000 ), to provide for the first Chief Executive of EirGrid to be appointed by the Directors of the company and to facilitate EirGrid becoming operational as Transmission System Operator.

¹ OJ No. L.27, 30.01.1997, p.20.