IE-2013-act-39 — Gas Regulation Act 2013 | Law Reform

PART 1 Preliminary and General 1 . (1) This Act may be cited as the Gas Regulation Act 2013. (2) This Act, other than section 47 , shall come into operation on such day or days as the Minister may appoint by order or orders either generally or with reference to any particular purpose or provision and different days may be so appointed for different purposes or different provisions. 2 . In this Act— “Act of 1976” means Gas Act 1976; “Act of 1987” means Gas (Amendment) Act 1987; “Act of 2002” means Gas (Interim) (Regulation) Act 2002; “Act of 2006” means Energy (Miscellaneous Provisions) Act 2006; “assets” means any legal or equitable estate or interest (whether present or future and whether vested or contingent) in real or personal property of any description (including money) and includes securities, choses in action and documents; “BGÉ” means Bord Gáis Éireann; F1 [ "board of directors" means the board of directors of the network company appointed under section 7A ; ] F1 [ "chief executive officer" means, subject to section 7B (6) , the person appointed to be the chief executive officer of the network company under that section; ] “Commission” means Commission for Energy Regulation (as adapted by section 5 of the Act of 2002); F1 [ "director" means, other than in subsection (1) of section 7A , a person appointed to the board of directors under that section or the chief executive officer; ] “disposal date”, in relation to an energy company, means the date on which the energy company is disposed of pursuant to section 30 ; “distribution system” means the system owned by BGÉ and operated by Gaslink for the transport of natural gas through local or regional pipelines with a view to its delivery to customers; “employees of BGÉ” includes employees of the Board within the meaning of section 7A of the Act of 1976; “energy business” means the energy business owned and operated by BGÉ and its subsidiaries and includes the functions, business activities, assets and licences of BGÉ and its subsidiaries that relate to— ( a ) the supply of natural gas, ( b ) the generation of electricity, ( c ) the supply of electricity, and ( d ) the operations of the subsidiary of BGÉ registered under the laws of the United Kingdom of Great Britain and Northern Ireland as firmus energy (Distribution) Limited under company registration number 05375370; “energy company” shall be construed in accordance with section 21 ; “Gaslink” means Gaslink Independent System Operator Ltd., being the company formed pursuant to Regulation 5 of the European Communities (Internal Market in Natural Gas) (BGÉ) Regulations 2005 (S.I. No. 760 of 2005); “liabilities” means liabilities, debts or obligations (whether present or future and whether vested or contingent); “licences” includes licences, authorisations and permits under — ( a ) the Foreshore Act 1933, ( b ) the Environmental Protection Agency Act 1992, ( c ) the Electricity Regulation Act 1999, ( d ) the Gas (Amendment) Act 2000, ( e ) the Act of 2002, ( f ) the European Communities (Greenhouse Gas Emissions Trading) Regulations 2012 (S.I. No. 490 of 2012). F2 [ "majority-shareholding Minister" has the same meaning as it has in the Gas (Amendment) and Miscellaneous Provisions Act 2024; ] “material interest” shall be construed in accordance with section 2(3) of the Ethics in Public Office Act 1995; “Minister” means Minister for Communications, Energy and Natural Resources; “Natural Gas Directive” means Directive 2009/73/EC of the European Parliament and of the Council of 13 July 2009 2 concerning common rules for the internal market in natural gas and repealing Directive 2003/55/EC; “network company” shall be construed in accordance with section 5 ; “network transfer date” shall be construed in accordance with section 15 ; “network transfer plan” shall be construed in accordance with section 13 ; “ownership”, in relation to an asset, includes proprietary rights arising under a lease, a licence or a bailment of the asset; “rights” means any rights, powers, privileges or immunities (whether present or future and whether vested or contingent); “transmission system” means the system owned by BGÉ and operated by Gaslink for the transport of natural gas through a high pressure pipeline, other than an upstream pipeline, with a view to delivering the gas to customers; “subsidiary” means a subsidiary within the meaning of the Companies Acts; “transfer date” shall be construed in accordance with section 25 ; “transfer plan” shall be construed in accordance with section 21 . 3 . The expenses incurred by the Minister in the administration of this Act shall, to such extent as may be sanctioned by the Minister for Public Expenditure and Reform, be paid out of moneys provided by the Oireachtas. 4 . (1) The Minister shall, not later than one year after the commencement of this Part, lay before each House of the Oireachtas a report on the operation of this Act during that period. (2) Notwithstanding the generality of subsection (1) , a report under this section shall include information on— ( a ) the formation of the network company, ( b ) the approval of any network transfer plan, ( c ) the approval of any transfer plan to an energy company, ( d ) the disposal of any energy company, and ( e ) the appointment of the majority-shareholding Minister under section 7B(2)(e) of the Act of 1976. PART 2 Network company 5 . (1) As soon as practicable after the commencement of this section, BGÉ shall form and register under the Companies Acts in accordance with this Part a private company limited by shares (in this Act referred to as the “network company”). (2) Paragraph (b) of subsection (1) of section 6 (inserted by section 3 of, and the First Schedule to, the Companies (Amendment) Act 1983) of the Companies Act 1963 shall not apply to the network company. (3) F3 [ … ] (4) F3 [ … ] F4 [ 6 . (1) The constitution of the network company shall be in such form, consistent with the Companies Act 2014, this Act, the Gas Act 1976, the Gas (Amendment) and Miscellaneous Provisions Act 2024, and the Natural Gas Directive, as may be approved by the majority-shareholding Minister with the consent of the Minister for Public Expenditure, National Development Plan Delivery and Reform. (2) The principal objects of the network company stated in its constitution shall include the ownership and operation of the transmission system and the distribution system in a manner consistent with this Act, the Gas Act 1976, the Gas (Amendment) and Miscellaneous Provisions Act 2024, and the Natural Gas Directive. (3) Notwithstanding anything contained in the Companies Act 2014, no alteration of the constitution of the network company shall be valid or effectual unless made with the prior approval of the majority shareholding Minister given with the consent of the Minister for Public Expenditure, National Development Plan Delivery and Reform. ] 7 . F5 [ … ] 7A . (1) Subject to section 7B (6) , each director of the network company standing appointed pursuant to section 7 immediately before the transfer day shall cease to be a director of the network company on the transfer day. (2) The network company shall have a board (in this Act referred to as the "board of directors") which shall consist of at least 5 and not more than 9 directors (including its chairperson and the chief executive officer), each of whom shall be appointed by the majority-shareholding Minister, having consulted with the Minister for Public Expenditure, National Development Plan Delivery and Reform. (3) The majority-shareholding Minister, having consulted with the Minister for Public Expenditure, National Development Plan Delivery and Reform, shall appoint one of the directors (other than the chief executive officer) to be its chairperson. (4) The board of directors may act notwithstanding one or more vacancies among its directors subject to having a quorum of 3. (5) There may be paid to the directors, out of moneys at the disposal of the network company, such allowances for expenses incurred by them as the majority-shareholding Minister, with the consent of the Minister for Public Expenditure, National Development Plan Delivery and Reform, may determine. (6) The majority-shareholding Minister shall, in so far as is practicable, endeavour to ensure that among the directors there is an equitable balance between men and women. (7) A director (other than the chief executive officer) shall hold office for such period, not exceeding 5 years from the date of his or her appointment, as the majority-shareholding Minister shall determine. (8) A director (other than the chief executive officer) whose term of office expires by effluxion of time shall be eligible for reappointment to the board of directors provided he or she does not hold office for more than 2 terms of office, whether the terms are served consecutively or otherwise. (9) An appointment to the board of directors and the appointment of the company secretary of that board of directors shall each be subject to such terms and conditions as are set out in the constitution of the network company. (10) A person shall not be appointed or act as a director if he or she is a director or an officer of a company or other body corporate which engages, within or outside the State, in— ( a ) the supply of natural gas, ( b ) the shipping of natural gas, ( c ) the production of natural gas, ( d ) the supply of electricity, or ( e ) the generation of electricity. (11)( a ) The majority-shareholding Minister may, at any time, remove a director (other than the chief executive officer) from office if the majority-shareholding Minister is of the opinion that— (i) the director has become incapable through ill-health of performing the functions of such director, (ii) the director has committed stated misbehaviour, (iii) the director has contravened subsection (10) or section 10 (1) , or (iv) the removal of the director appears to the majority-shareholding Minister to be necessary for the effective performance by the network company of its functions. (b) Where a person is removed from office pursuant to paragraph (a) , he or she shall cease to be qualified, and cease, to be a director. (12) A director may resign from office by giving notice in writing to the majority shareholding Minister of his or her resignation and the resignation shall take effect on the day on which the majority-shareholding Minister receives the notice. (13) In this section and section 7B , "transfer day" has the same meaning as it has in the Gas (Amendment) and Miscellaneous Provisions Act 2024. ] 7B . (1) Subject to subsection (6) , the board of directors shall, with the consent of the majority-shareholding Minister, appoint the chief executive officer of the network company. (2) The chief executive officer shall— ( a ) carry on, manage and control generally, the administration of the network company, and ( b ) advise the directors of the network company in relation to the performance by the network company of its functions. (3) Subject to section 7A (2) , the chief executive officer shall be an ex officio director but he or she shall not be the chairperson. (4) The chief executive officer shall not hold any other office or occupy any other position in respect of which emoluments are payable or carry on any business without the consent of the board of directors of the network company. (5) Subject to subsection (6) , the chief executive officer shall hold office under a written contract of service for such term, and subject to such terms and conditions (including terms and conditions relating to remuneration, allowances and superannuation) as are specified in the contract, as may be determined by the board of directors with the approval of the majority-shareholding Minister given with the consent of the Minister for Public Expenditure, National Development Plan Delivery and Reform. (6) The person who stands appointed as chief executive officer of the network company immediately before the transfer day shall, for the remainder of his or her term of office, continue to— ( a ) hold that office upon and subject to the same terms and conditions as applied to his or her appointment immediately before the transfer day, and ( b ) be an ex officio director. (7) The chief executive officer may, with the consent of the majority shareholding Minister, be removed from office by the board of directors for stated reasons. ] 8 . (1) A director of the network company shall cease to be qualified, and cease, to be a director of the network company if he or she— ( a ) is adjudicated bankrupt, ( b ) makes a composition or an arrangement with creditors, ( c ) is sentenced by a court of competent jurisdiction to a term of imprisonment, ( d ) is convicted of any indictable offence in relation to a company, ( e ) is convicted of an offence involving fraud or dishonesty, whether in connection with a company or not, or ( f ) is the subject of an order under section 160 of the Companies Act 1990. (2) This section is in addition to, and not in substitution for, any provision of the Companies Acts by virtue of which a person is not qualified, or shall cease, to be a director of a company. 9 . (1) Where a director of the network company is— ( a ) nominated as a member of Seanad Éireann, ( b ) elected as a member of either House of the Oireachtas or to be a member of the European Parliament, or ( c ) regarded pursuant to Part XIII of the Second Schedule to the Act of 1997 as having been elected to that Parliament, he or she shall thereupon cease to be a director of the network company. (2) Where a member of the staff of the network company is— ( a ) nominated as a member of Seanad Éireann, ( b ) elected as a member of either House of the Oireachtas or to be a member of the European Parliament, or ( c ) regarded pursuant to Part XIII of the Second Schedule to the Act of 1997 as having been elected to that Parliament, he or she shall thereupon cease to be a member of the staff of the network company. (3) A person who is for the time being entitled under the Standing Orders of either House of the Oireachtas to sit therein or who is a member of the European Parliament shall, while he or she is so entitled or is such a member, be disqualified for being a director of the network company. (4) In this section “Act of 1997” means European Parliament Elections Act 1997. 10 . (1) Where at a meeting of the directors of the network company any of the following matters arises, namely— ( a ) an arrangement to which the network company is a party or a proposed such arrangement, or ( b ) a contract or other agreement with the network company or a proposed such contract or other agreement, then, any director of the company present at the meeting who otherwise than in his or her capacity as such director has a material interest in the matter shall— (i) at the meeting disclose the fact of such interest and the nature thereof to the other directors of the network company present, (ii) neither influence nor seek to influence a decision to be made in relation to the matter, (iii) absent himself or herself from the meeting or that part of the meeting during which the matter is being discussed, (iv) take no part in any deliberation relating to the matter, and (v) not vote on a decision relating to the matter. (2) Where a material interest is disclosed pursuant to this section, the disclosure shall be recorded in the minutes of the meeting concerned and, for so long as the matter to which the disclosure relates is being dealt with by the meeting, the director by whom the disclosure is made shall not be counted in the quorum for the meeting. (3) Where at a meeting of the directors of the network company a question arises as to whether or not a course of conduct, if pursued by a director of the company, would constitute a failure by him or her to comply with the requirements of subsection (1) , the question may, subject to subsection (4) , be determined by the chairperson of the meeting, whose decision shall be final, and where such a question is so determined, particulars of the determination shall be recorded in the minutes of the meeting. (4) Where, at a meeting of the directors of the network company, the chairperson of the meeting is the director in respect of whom a question to which subsection (3) applies falls to be determined, then the other directors of the company attending the meeting shall choose one of their number to be chairperson of the meeting for the purpose of determining the question concerned. (5) F8 [ … ] (6) Section 194 (as amended by section 2 of the Companies (Amendment) Act 2009) of the Companies Act 1963 shall not apply to a director of the network company. 11 . (1) Where a member of the staff of the network company has a material interest, otherwise than in his or her capacity as such a member, in any contract, agreement or arrangement to which the network company is a party, or any proposed such contract, agreement or arrangement, that person shall— ( a ) disclose to the network company his or her interest and the nature thereof, ( b ) take no part in the negotiation of the contract, agreement or arrangement or in any deliberation by the network company or members of the staff of the network company in relation thereto, and ( c ) neither influence nor seek to influence a decision to be made in relation to the matter nor make any recommendation in relation to the contract, agreement or arrangement. (2) Subsection (1) shall not apply to contracts or proposed contracts of employment of members of the staff of the network company with the network company. (3) Where a person contravenes this section the network company may make such alterations to the person’s terms and conditions of employment as it considers appropriate or terminate the person’s contract of employment. 12 . (1) A person shall not disclose confidential information obtained by him or her while performing functions as a director or a member of the staff of, or an adviser or consultant to, the network company, or a member of the staff of such adviser or consultant, unless he or she is duly authorised by the network company to so do. F9 [ (2) Subsection (1) shall not operate to prohibit the disclosure of confidential information by a person referred to in that subsection where— ( a ) the board of directors of the network company authorises the disclosure, ( b ) the disclosure is made to the board of directors of the network company, the chief executive officer or a member of the staff of the network company, ( c ) the disclosure is made in the performance of functions of the network company, ( d ) the disclosure is made by or on behalf of the network company to the Minister, the majority-shareholding Minister, the Minister for Public Expenditure, National Development Plan Delivery and Reform or the Minister for Finance, ( e ) the disclosure is made in compliance with a requirement of this Act or the Gas Act 1976 or is otherwise required by law, ( f ) the disclosure is made by a person in the circumstances referred to in section 35(2) of the Ethics in Public Office Act 1995, ( g ) the disclosure is a protected disclosure (within the meaning of the Protected Disclosures Act 2014), or ( h ) the disclosure is made to a member of the Garda Síochána and, in the opinion of the person making the disclosure, the information may relate to the commission of an offence (whether an offence under this Act or not). ] (3) In this section “confidential information” includes— ( a ) information that is expressed by the network company to be confidential either as regards particular information or as regards information of a particular class or description, and ( b ) proposals of a commercial nature or tenders submitted to the network company by contractors, consultants or any other person. F10 [ (4) A person who contravenes subsection (1) shall be guilty of an offence and shall be liable on summary conviction to a class D fine. ] 13 . (1) As soon as practicable after the registration of the network company under the Companies Acts, BGÉ and Gaslink shall prepare and submit to the Minister for approval one, or more than one, plan (in this Act referred to as a “network transfer plan”) for the transfer to the network company of such— ( a ) assets, licences, rights and liabilities, and ( b ) staff, of BGÉ, and of Gaslink, as appear to BGÉ or Gaslink to be necessary for, or ancillary to, the ownership and operation by the network company of the transmission system and the distribution system. (2) BGÉ and Gaslink shall specify in the network transfer plan the items referred to in subsection (1) that are to be transferred by reference to— ( a ) individual assets, licences, rights and liabilities or staff, ( b ) all or any of the assets, licences, rights and liabilities and staff (whether or not subject to exceptions) relating to a specified function, business activity, division or part of BGÉ or Gaslink, or (c) a combination of the matters referred to in both of the foregoing paragraphs. (3) A network transfer plan may provide for such supplemental, incidental and consequential matters as are necessary for, or ancillary to, the transfer to the network company of the matters mentioned in paragraphs (a) and (b) of subsection (1) (including the order in which any transfers are to be regarded as taking effect). 14 . (1) The Minister may, with the consent of the Minister for Public Expenditure and Reform, approve a network transfer plan, with or without amendment. (2) The Minister shall not approve a network transfer plan unless he or she is satisfied that the plan provides only for the transfer of assets, licences, rights and liabilities and staff that are necessary for, or ancillary to, the ownership and operation of the transmission system and the distribution system. 15 . On or after approving a network transfer plan under section 14 the Minister shall appoint a date (in this Act referred to as the “network transfer date”) to be the date on which such plan shall have effect by publishing a notice in the Iris Oifigiúil . 16 . On the network transfer date— ( a ) Schedule 1 has effect, with respect to the transfer of assets, licences, rights and liabilities of BGÉ, and of Gaslink, specified in the network transfer plan, to the network company, and ( b ) Schedule 2 has effect with respect to the transfer of staff of BGÉ and staff of Gaslink specified in the network transfer plan, to the network company. 17 . (1) At any time before the first anniversary of the network transfer date BGÉ or Gaslink (each referred to in this subsection as a “relevant entity”) or both may, subject to the approval of the Minister and with the consent of the Minister for Public Expenditure and Reform, enter into an agreement in writing with the network company for the transfer from a relevant entity to the network company of any assets, licences, rights and liabilities and staff where both, or either of, BGÉ and the Minister is of the opinion that such assets, licences, rights and liabilities or staff should have been specified in the network transfer plan. (2) An agreement under this section takes effect on the date on which it is approved by the Minister with the consent of the Minister for Public Expenditure and Reform or on such later date as may be specified in, or determined in accordance with, the agreement and any assets, licences, rights or liabilities or staff to be transferred under the agreement are transferred on that date. (3) An agreement under this section does not affect the terms and conditions of employment of any employee unless such employee agrees to the proposed change. 18 . A certificate issued by— ( a ) BGÉ or Gaslink, with the concurrence of the network company, or ( b ) the network company with the concurrence of BGÉ or Gaslink, stating that— (i) any asset specified in the certificate, or any interest in, or right over, any such asset, or (ii) any right or liability so specified, is vested in the issuer of the certificate by virtue of this Act shall be proof of that fact in the absence of evidence to the contrary. 19 . Where a person is entitled under a transfer under section 16 or 17 to possession of any document relating wholly or in part to the title to, or to the management of, any land or other property the ownership of which was transferred to another person under that or another transfer under either of those sections, the first-mentioned person shall be deemed to have given to the other person an acknowledgement within the meaning of section 84 of the Land and Conveyancing Law Reform Act 2009. 20 . F11 [ … ] PART 3 Transfer of Energy Business to Energy Company 21 . (1) As soon as practicable after the commencement of this section, BGÉ shall prepare and submit to the Minister for approval one, or more than one, plan (in this Act referred to as a “transfer plan”) for the transfer to one, or more than one, subsidiary of BGÉ (in this Act referred to as an “energy company”) of such— ( a ) assets, licences, rights and liabilities, and ( b ) staff, of BGÉ and its subsidiaries as appear to BGÉ to be necessary for, or ancillary to, the purposes of the transfer to that company or companies of all, or a part, of the energy business. (2) BGÉ shall specify in a transfer plan the items referred to in subsection (1) that are to be transferred by reference to — ( a ) individual assets, licences, rights and liabilities or staff, ( b ) all or any of the assets, licences, rights and liabilities and staff (whether or not subject to exceptions) relating to a specified function, business activity, division or part of BGÉ, ( c ) all or any of the assets, licences, right and liabilities and staff (whether or not subject to exceptions) of, or relating to a specified function or business activity of, one or more than one subsidiary of BGÉ, or ( d ) a combination of the matters referred to in the foregoing paragraphs. (3) A transfer plan may provide for such supplemental, incidental and consequential matters as are necessary for, or ancillary to, the transfer to an energy company of the matters mentioned in paragraphs (a) and (b) of subsection (1) (including the order in which any transfers are to be regarded as taking effect). 22 . (1) The memorandum of association of an energy company shall, from the transfer date until the disposal date, be in such form consistent with this Act as may be approved by the Minister with the consent of the Minister for Public Expenditure and Reform. (2) The principal objects of an energy company stated in the memorandum of association shall be expressed to include, for the period beginning on the transfer date and ending immediately before the disposal date, the ownership and operation of that part of the energy business as is transferred to it under this Act. (3) The articles of association of an energy company shall, from the transfer date until the disposal date, be in such form consistent with this Act as may be approved by the Minister with the consent of the Minister for Public Expenditure and Reform. (4) Notwithstanding anything contained in the Companies Acts, no alteration of the memorandum or articles of association of an energy company made before the disposal date shall be valid or effectual unless made with the prior approval of the Minister given with the consent of the Minister for Public Expenditure and Reform. (5) The memorandum of association and the articles of association of an energy company shall not be inconsistent with the Natural Gas Directive during the period beginning on the transfer date and ending on the disposal date. 23 . (1) The articles of association of an energy company shall provide that prior to its disposal date— ( a ) the number of directors of the energy company shall not be less than 3, ( b ) only employees of BGÉ, and no other persons, shall be eligible to be directors of the energy company, and ( c ) no remuneration shall be paid to directors of the energy company for acting as directors. (2) Until the disposal date the appointment of a director of an energy company or the termination of such an appointment shall not take effect until it is approved by the Minister with the consent of the Minister for Public Expenditure and Reform. 24 . (1) The Minister may, with the consent of the Minister for Public Expenditure and Reform, approve a transfer plan in relation to an energy company with or without amendment. (2) The Minister shall not approve a transfer plan in relation to an energy company unless he or she is satisfied that the plan provides only for the transfer of assets, licences, rights and liabilities and staff that are necessary for, or ancillary to, the purposes of the transfer to that company of all, or part, of the energy business. 25 . On or after approving a transfer plan in relation to an energy company the Minister shall appoint a date (in this Act referred to as the “transfer date”) to be the date on which such transfer plan shall have effect by publishing a notice in the Iris Oifigiúil . 26 . On the transfer date— ( a ) Schedule 3 has effect, with respect to the transfer to the energy company of assets, licences, rights and liabilities of BGÉ and its subsidiaries specified in the transfer plan, and ( b ) Schedule 4 has effect with respect to the transfer to the energy company of staff of BGÉ and its subsidiaries specified in the transfer plan. 27 . (1) At any time before the disposal date,BGÉ may, subject to the approval of the Minister and with the consent of the Minister for Public Expenditure and Reform, enter into an agreement in writing with an energy company for the transfer from BGÉ to the energy company of any assets, licences, rights and liabilities and staff, where both, or either of, BGÉ and the Minister is of the opinion that such assets, licences, rights and liabilities or staff should have been specified in the transfer plan. (2) The Minister shall not approve an agreement under this section unless he or she is satisfied that the agreement provides only for the transfer of assets, licences, rights and liabilities and staff that are necessary for, or ancillary to, the purposes of the transfer to that company of all, or part, of the energy business. (3) An agreement under this section takes effect on the date on which it is approved by the Minister, with the consent of the Minister for Public Expenditure and Reform or on such later date as may be specified in, or determined in accordance with, the agreement and any assets, licences, rights or liabilities or staff to be transferred under the agreement are transferred on that date. (4) An agreement under this section does not affect the terms and conditions of employment of any employee unless such employee agrees to the proposed change. 28 . A certificate issued prior to the disposal date by— ( a ) BGÉ with the concurrence of an energy company, or ( b ) an energy company with the concurrence of BGÉ, stating that— (i) any asset specified in the certificate, or any interest in, or right over, any such asset, or (ii) any right or liability so specified, is vested in the issuer of the certificate by virtue of this Act shall be proof of that fact in the absence of evidence to the contrary. 29 . Where a person is entitled under a transfer under section 26 or 27 to possession of any document relating wholly or in part to the title to, or to the management of, any land or other property the ownership of which was transferred to another person under that or another transfer under either of those sections, the first-mentioned person shall be deemed to have given to the other person an acknowledgement within the meaning of section 84 of the Land and Conveyancing Law Reform Act 2009. 30 . BGÉ may, with the approval of the Minister given with the consent of the Minister for Public Expenditure and Reform, dispose of its shares in an energy company on such terms as it sees fit. 31 . (1) Sections 617 and 631 of the Taxes Consolidation Act 1997 shall not apply to any transfer to, or vesting in, an energy company under section 26 (a) and Schedule 3 . (2) Section 623 of the Taxes Consolidation Act 1997 shall not apply where, on a disposal of an energy company in accordance with section 30 , the energy company ceases to be a member of a group of companies (within the meaning of section 616 of that Act) of which BGÉ is a member. PART 4 Amendments to Act of 1976 32 . The Act of 1976 is amended— ( a ) in section 2— (i) by inserting after the definition of “local authority” (inserted by section 15 of the Act of 2006) the following: “ ‘majority-shareholding Minister’ means the Minister of the Government appointed from time to time by order of the Government under section 7B(2)(e);”, and (ii) in the definition of “pipeline” (as amended by section 23 of the Act of 2002) by substituting “section 8(3)(e)” for “section 8(3)(f)”, ( b ) in section 6, by substituting “incurred by a Minister of the Government (other than the Minister for Finance)” for “incurred by the Minister”, (c) by substituting for section 7B(2) (inserted by section 16 of the Act of 2006) the following: “(2) (a) The Board may, in accordance with an approved scheme, make available to employees of the Board, or trustees on their behalf, up to 5 per cent of any capital stock in return for transformations in the company of at least equal value carried out by the employees of the Board. (b) The Board shall issue 5 per cent of any capital stock to the Minister without payment and the said capital stock shall be treated as fully paid up. (c) The Board shall issue 5 per cent of any capital stock to the Minister for Public Expenditure and Reform without payment and the said capital stock shall be treated as fully paid up. (d) The Board shall issue the remainder of any capital stock to the majority-shareholding Minister appointed under paragraph (e) without payment and the said capital stock shall be treated as fully paid up. (e) The Government may from time to time, for the purposes of implementing Directive 2009/73/EC of the European Parliament and of the Council of 13 July 2009 3 , by order appoint a Minister of the Government (other than the Minister or the Minister for Public Expenditure and Reform) to be the majority-shareholding Minister.”, ( d ) by substituting for section 7C (inserted by section 16 of the Act of 2006) the following: “ Exercise of powers by Ministers in respect of capital stock 7C. (1) Subject to the provisions of this Act, the majority-shareholding Minister, the Minister and the Minister for Public Expenditure and Reform may each, in respect of the capital stock held by him or her, exercise all the rights or powers of a holder of such capital stock and, where such right or power is exercisable by attorney, exercise it by his or her attorney. (2) The Minister and the Minister for Public Expenditure and Reform, in respect of the capital stock held by each of them, shall not directly or indirectly exercise control over the Board in carrying out its functions under section 8 and in particular shall not be entitled to appoint a member of the Board or to exercise voting rights in respect of the Board. (3) The majority-shareholding Minister, the Minister and the Minister for Public Expenditure and Reform shall not sell, exchange, surrender or otherwise dispose of all or any of the capital stock held by him or her under section 7B without the prior consent of the Government.”, ( e ) in section 7E (inserted by section 16 of the Act of 2006), by substituting for subsection (1) the following: “(1) The Board may make a scheme (in this section referred to as a ‘capital stock scheme’) as respects— (a) the terms and conditions relating to the creation of capital stock, and (b) the rights and obligations attaching to the capital stock, and any such capital stock scheme shall be subject to the prior written consent of the majority-shareholding Minister given (where the majority-shareholding Minister is not the Minister for Finance, with the approval of the Minister for Finance) having consulted with the Minister, the Minister for Public Expenditure and Reform and any other Minister of the Government who, in the opinion of the majority- shareholding Minister having regard to the functions of that other Minister, ought to be consulted.”, ( f ) by substituting for section 7G (inserted by section 16 of the Act of 2006) the following: “7G. All amounts representing dividends or other money received by a Minister of the Government (including the majority-shareholding Minister) in respect of capital stock held by that Minister under this Act shall be paid into or disposed of for the benefit of the Exchequer in such manner as the Minister for Finance thinks fit.”, ( g ) in section 8A (inserted by section 8 of the Energy (Miscellaneous Provisions) Act 1995), by substituting for subsection (6) the following: “(6) The exercise by the Board of any power conferred on it by this section shall be subject to the prior written consent of the majority-shareholding Minister after consultation with any other Minister of the Government who, in the opinion of the majority-shareholding Minister having regard to the functions of that other Minister, ought to be consulted. (7) Without prejudice to the exercise by the Board of any of its functions, a subsidiary of the Board formed or established under this section or under any enactment may exercise such and so many of the Board’s functions as are provided for in the memorandum and articles of association of the subsidiary.”, ( h ) in section 13(3), by substituting “majority-shareholding Minister” for “Minister”, ( i ) in section 14, by substituting “majority-shareholding Minister” for “Minister” in each place that it occurs, ( j ) in section 20(3)(a) by substituting “the majority-shareholding Minister” for “the Minister”, ( k ) in section 23— (i) in subsection (1) (as amended by section 9(a) of the Energy (Miscellaneous Provisions) Act 1995 by substituting “with the prior consent of the majority-shareholding Minister, given where the majority-shareholding Minister is not the Minister for Finance with the approval of the Minister for Finance” for “with the prior consent of the Minister given with the approval of the Minister for Finance”, and (ii) by substituting for subsection (3) the following: “(3) The Board shall not borrow money under this section except with the prior consent of the majority-shareholding Minister given (where the majority-shareholding Minister is not the Minister for Finance, with the approval of the Minister for Finance) having consulted with the Minister, the Minister for Public Expenditure and Reform and any other Minister of the Government who, in the opinion of the majority-shareholding Minister having regard to the functions of that other Minister, ought to be consulted.”, ( l ) by substituting for section 24 the following: “24. The Board may, with the consent of the majority-shareholding Minister given (where the majority-shareholding Minister is not the Minister for Finance, with the approval of the Minister for Finance) having consulted with the Minister, the Minister for Public Expenditure and Reform and any other Minister of the Government who, in the opinion of the majority-shareholding Minister having regard to the functions of that other Minister, ought to be consulted, borrow temporarily either by arrangement with bankers or otherwise such sums as it may require for the purpose of providing for current expenditure.”, ( m ) in section 29, by substituting for subsection (1) the following: “(1) Notwithstanding anything otherwise contained in this Act, the Board shall sell, let, lease or demise or otherwise dispose of or grant a licence or right in respect of any right of working minerals which is vested in the Board (whether exclusive of any other person or otherwise) only with the consent of the majority-shareholding Minister given (where the majority-shareholding Minister is not the Minister for Finance, with the approval of the Minister for Finance) after having consulted with the Minister, the Minister for Public Expenditure and Reform and any other Minister of the Government who, in the opinion of the majority-shareholding Minister having regard to the functions of that other Minister, ought to be consulted.”, and ( n ) in section 38(1), by substituting “transmitted or distributed” for “supplied”. 33 . The Act of 1976 is amended by substituting for section 8 (as amended by the European Communities (Internal Market in Natural Gas) (BGÉ) Regulations 2005 (S.I. No. 760 of 2005) the following: “8. (1) (a) The Board shall own, operate, develop and maintain a system for the transmission and distribution of natural gas being a system that is both economical and efficient and appears to the Board to be requisite for the time being. (b) Nothing in paragraph (a) shall be construed as imposing on the Board, either directly or indirectly, any form of duty or liability enforceable by proceedings before any court to which it would not otherwise be subject. (2) The Board shall carry out its obligations under this Act in accordance with Directive 2009/73/EC of the European Parliament and of the Council of 13 July 2009 4 and having regard to the need to ensure the safety and security of the transmission, distribution and supply of natural gas. (3) Without prejudice to the generality of subsection (1) or to any provision of this Act apart from this section, within or outside the State, and subject to any requirements of law the Board may— (a) transmit and distribute natural gas (whether or not such gas has been prepared, processed or treated), (b) liquify or otherwise prepare, process or treat natural gas, (c) fix, make and recover charges for any service or facility provided or thing undertaken pursuant to this section by the Board, or fix and accept subscriptions for any service or facility so provided, (d) attach such terms and conditions as the Board shall think fit to any service or facility provided by it, (e) provide, operate or maintain, or provide, operate and maintain, whether for use by the Board or any other person, such pipelines, terminals, pressure-reducing stations, off-take stations, vessels, vehicles, works, services, facilities or other things as are necessary or expedient in relation to, or ancillary to, the provision, development or maintenance of a gas transmission system and a distribution system, (f) provide any or all of the following services and facilities relating to the development, transmission or distribution of gas, namely, advice or assistance, research services or research or training facilities, (g) subject to subsection (4), subscribe or guarantee money for charitable or benevolent objects or to, or for, any institution or for any public, general or useful object, (h) draw, make, accept, endorse, discount, negotiate or issue bills of exchange, promissory notes or other negotiable or transferable instruments, (i) subject to subsection (5), accept a gift of money, land or other property upon such trusts and conditions (if any) as may be specified by the person making the gift, (j) carry on any activity which appears to the Board to be requisite, advantageous or incidental to, or which appears to the Board to facilitate, the performance by the Board of any function under this Act. (4) In case the Board pursuant to subsection (3)(g)— (a) gives a subscription exceeding €2,000, or (b) in any particular year gives for, or to, a particular object or institution two or more subscriptions the aggregate of which exceeds €2,000, the subscription or subscriptions, as may be appropriate, together with the object or institution to which it or they relate shall be specified in the accounts kept by the Board pursuant to this Act. (5) The Board shall not accept a gift pursuant to subsection (3)(i) if the trusts and conditions attached by the donor to its acceptance are inconsistent with the functions of the Board. (6) Where the Board proposes to transfer to another person an interest in a pipeline or a part thereof that has been constructed by it pursuant to and in accordance with a consent given under this Act the Board shall obtain the prior consent of the majority-shareholding Minister, given with the approval of the Government, for such a transfer and the majority-shareholding Minister may attach such conditions as he or she deems appropriate to such a prior consent. (7) In subsection (6)— ‘interest’ means any estate, right, title or other interest, legal or equitable and includes a licence; ‘transfer’ includes grant, demise and assign or, as appropriate, a grant, demise and an assignment.”. 34 . The Act of 1976 is amended by substituting for section 9 (as amended by section 57 of the Ministers and Secretaries (Amendment) Act 2011) the following: “9. (1) The majority-shareholding Minister may, with the approval of the Government, by order confer on the Board such functions, being related to the ownership, operation, maintenance and development of a gas transmission and distribution system, as the majority-shareholding Minister thinks proper and specifies in the order, and any such order may provide for the performance of the function subject to conditions specified in the order and may contain such incidental and supplementary provisions as the majority-shareholding Minister thinks necessary or expedient for giving full effect to the order. (2) The majority-shareholding Minister may, with the approval of the Government, revoke or amend an order under this section (including an order under this subsection). (3) When an order under this section is proposed to be made by the majority-shareholding Minister, a draft of the order shall be laid before each House of the Oireachtas and the order shall not be made until a resolution approving of the draft has been passed by each such House.”. 35 . The Act of 1976 is amended by substituting for section 11 (inserted by section 15 of the Act of 2002) the following: “11. (1) (a) The majority-shareholding Minister (with, where the majority- shareholding Minister is not the Minister for Finance, the approval of the Minister for Finance) having consulted with the Minister, the Minister for Public Expenditure and Reform and any other Minister of the Government who, in the opinion of the majority-shareholding Minister having regard to the functions of that other Minister, ought to be consulted may, from time to time, give the Board such general directives concerning the financial objectives of the Board as he or she considers appropriate. (b) The majority-shareholding Minister (with, where the majority-shareholding Minister is not the Minister for Finance, the approval of the Minister for Finance) having consulted with the Minister, the Minister for Public Expenditure and Reform and any other Minister of the Government who, in the opinion of the majority-shareholding Minister having regard to the functions of that other Minister, ought to be consulted may, from time to time, direct that the profits of the Board in a year specified in the direction shall be applied in such manner (including application for the benefit of the Exchequer) as is specified in the direction. (2) In performing its functions the Board shall— (a) comply with any direction under this section, and (b) have regard to any directive under this section concerning its financial objectives.”. 36 . The Act of 1976 is amended by substituting for section 15 (as amended by section 15 of the Water Services Act 2013) the following: “15. (1) The Board shall keep in such form as may be approved by the majority-shareholding Minister (with, where the majority-shareholding Minister is not the Minister for Finance, the approval of the Minister for Finance) having consulted with the Minister, the Minister for Public Expenditure and Reform and any other Minister of the Government who, in the opinion of the majority-shareholding Minister having regard to the functions of that other Minister, ought to be consulted all proper and usual accounts of all moneys received or expended by it. (2) Accounts kept in pursuance of this section shall be submitted for audit by the Board to an auditor appointed by the Board with the approval of the majority-shareholding Minister to audit the accounts which, when so audited, shall be presented by the Board to the majority- shareholding Minister who shall cause copies thereof to be laid before both Houses of the Oireachtas. (3) The fees of an auditor duly appointed by the Board under this section shall be paid by the Board out of moneys at its disposal. (4) The Board shall, if so required by the majority-shareholding Minister, furnish the majority-shareholding Minister with such information as he or she may require regarding any account submitted by the Board under this section.”. 37 . The Act of 1976 is amended by substituting for section 16 the following: “16. (1) The Board shall appoint such and so many persons to be officers and servants of the Board as the Board from time to time thinks proper. (2) An officer or servant of the Board shall hold his or her office or employment on such terms and conditions as the Board from time to time determines. (3) There shall be paid by the Board to its officers and servants such remuneration and allowances for expenses as the Board thinks fit, subject to, in the case of its chief officer (whether that officer is described as the Chief Officer or otherwise), the approval of the majority-shareholding Minister given (where the majority-shareholding Minister is not the Minister for Finance, with the approval of the Minister for Finance) having consulted with the Minister, the Minister for Public Expenditure and Reform and any other Minister of the Government who, in the opinion of the majority-shareholding Minister having regard to the functions of that other Minister, ought to be consulted. (4) In determining the remuneration or allowances for expenses to be paid to its officers or servants or the terms or conditions subject to which such officers or servants hold or are to hold their employment, the Board shall have regard either to Government or nationally agreed guidelines which are for the time being extant, or to Government policy concerning remuneration and conditions of employment which is so extant, and, in addition to the foregoing, the Board shall comply with any directives with regard to such remuneration, allowances, terms or conditions which the majority-shareholding Minister may give from time to time to the Board (where, the majority-shareholding Minister is not the Minister for Finance, with the approval of the Minister for Finance) having consulted with the Minister, the Minister for Public Expenditure and Reform and any other Minister of the Government who, in the opinion of the majority-shareholding Minister having regard to the functions of that other Minister, ought to be consulted.”. 38 . Section 18 of the Act of 1976 is amended— ( a ) subject to paragraph (b), by substituting “majority-shareholding Minister” for “Minister” in each place that it occurs, ( b ) in subsections (3) and (4), by substituting “having consulted with the Minister for Public Expenditure and Reform” for “with the concurrence of the Minister for the Public Service” in each place where it occurs, ( c ) by substituting for subsection (6) the following: “(6) If any dispute arises as to the claim of any person to, or the amount of, any pension, gratuity or allowance payable in pursuance of a scheme under this section, such dispute shall be submitted to the majority-shareholding Minister who shall, having consulted with the Minister for Public Expenditure and Reform, decide on the matter and this decision shall be final.”, and ( d ) by substituting for subsection (7A) (inserted by section 4 of the Act of 1987) the following: “(7A) In this section— ‘officers or servants of the Board’ and ‘officer or servant of the Board’ each includes the following: (a) persons who are, or were at any time, an officer or servant of the Dublin Gas Company, a company that is, or was at any time, a subsidiary (within the meaning of the Companies Act 1963) of the Dublin Gas Company or a company whose assets are acquired at any time by the Board; (b) persons who are employees of Gaslink Independent System Operator Ltd., being the company formed pursuant to Regulation 5 of the European Communities (Internal Market in Natural Gas) (BGÉ) Regulations 2005 (S.I. No. 760 of 2005); (c) persons who are at any time prior to the disposal date in relation to an energy company (each within the meaning of the Gas Regulation Act 2013 ) employees of that energy company; and (d) persons who are employees of the network company (within the meaning of the Gas Regulation Act 2013 ), ‘on retirement or death’ includes in respect of retirement or death, and ‘on the resignation, retirement or death’ includes in respect of the resignation, retirement or death.”. 39 . The Act of 1976 is amended by substituting for section 21 (as amended by section 23(1)(c) of the Act of 2002) the following: “21. (1) The Board shall not, without the consent of the majority-shareholding Minister given (where the majority-shareholding Minister is not the Minister for Finance, with the approval of the Minister for Finance) having consulted with the Minister, the Minister for Public Expenditure and Reform and any other Minister of the Government who, in the opinion of the majority-shareholding Minister having regard to the functions of that other Minister, ought to be consulted enter into a capital commitment the amount of which exceeds an amount specified for the time being for the purpose of this section and relating to the commitment. (2) The majority-shareholding Minister may from time to time (with, where the majority-shareholding Minister is not the Minister for Finance, the approval of the Minister for Finance) having consulted with the Minister, the Minister for Public Expenditure and Reform and any other Minister of the Government who, in the opinion of the majority-shareholding Minister having regard to the functions of that other Minister, ought to be consulted, specify amounts for the purposes of this section and such an amount may be so specified in relation to capital commitments generally or in relation to capital commitments of a particular class or description. (3) Notwithstanding the generality of subsection (1) and for the avoidance of doubt, the Board shall not construct a pipeline without the prior consent of the majority-shareholding Minister given (where the majority-shareholding Minister is not the Minister for Finance, with the approval of the Minister for Finance) having consulted with the Minister, the Minister for Public Expenditure and Reform and any other Minister of the Government who, in the opinion of the majority-shareholding Minister having regard to the functions of that other Minister, ought to be consulted. (4) The majority-shareholding Minister may, by notice in writing delivered to the Board, declare that subsection (3) shall not apply to the construction of pipelines or specified pipelines or classes of pipelines in a specified area and, whenever a notice under this subsection is in force, subsection (3) shall not apply in relation to the construction of pipelines, or those pipelines or classes of pipelines specified in the notice, in the area specified in the notice. (5) In determining whether or not to give consent for the construction of a pipeline the majority-shareholding Minister shall have regard to— (a) requirements of Directive 2009/73/EC of the European Parliament and of the Council of 13 July 2009 5 , (b) whether the construction of the pipeline has been approved by the Commission, and (c) the energy policy objectives which the construction of the proposed pipeline is intended to achieve. (6) Where the majority-shareholding Minister proposes to refuse his or her consent under this section for the construction of a pipeline, he or she shall consult the Minister, the Commission and the Board and where the majority-shareholding Minister refuses consent, he or she shall provide reasons for the refusal.”. 40 . The First Schedule to the Act of 1976 is amended— ( a ) by substituting for Article 2 (inserted by section 6 of the Act of 1987) the following: “2. The Board shall consist of a chairman and such number of other members, not being more than 8, as the majority-shareholding Minister may determine. 2A. A person may not be appointed or act as a member of the Board if he or she is a director or an officer of a company or other body corporate which engages, within or outside the State, in— (a) the supply of natural gas, (b) the shipping of natural gas, (c) the production of natural gas, (d) the supply of electricity, or (e) the generation of electricity.”, ( b ) by substituting for Article 4 the following: “4. (1) The majority-shareholding Minister shall, with the approval of the Government, from time to time as occasion requires appoint a member of the Board to be chairman thereof. (2) The chairman of the Board shall, unless he sooner dies, resigns the office of chairman or ceases to be chairman under paragraph (4) of this Article, hold office until the expiration of his period of office as a member of the Board. (3) The chairman of the Board may at any time resign his office as chairman by letter sent to the majority-shareholding Minister, and the resignation shall, unless it is previously withdrawn in writing, take effect at the commencement of the meeting of the Board held next after the Board has been informed by the majority-shareholding Minister of the resignation. (4) Where the chairman of the Board ceases during his term of office as chairman to be a member of the Board, he shall also then cease to be chairman of the Board.”, ( c ) by substituting for Article 5 the following: “5. Each member of the Board shall be appointed by the majority-shareholding Minister with the approval of the Government and the majority-shareholding Minister when making the appointment shall fix such member’s term of office which shall not exceed five years and, subject to the foregoing and to Articles 7 and 9 (2) of this Schedule, such member shall hold office on such terms and conditions as the majority-shareholding Minister, having consulted with the Minister for Public Expenditure and Reform, determines.”, ( d ) by substituting for Article 6 the following: “6. A member of the Board shall be paid by the Board out of moneys at its disposal such remuneration (if any) and allowances for expenses as the majority-shareholding Minister, having consulted with the Minister for Public Expenditure and Reform, determines.”, ( e ) by substituting for Article 7 the following: “7. The majority-shareholding Minister may, having consulted with the Minister for Public Expenditure and Reform, remove from office any member of the Board who has become incapable through ill-health of effectively performing his duties, or who has committed stated misbehaviour, or whose removal appears to the majority-shareholding Minister to be necessary for the effective performance by the Board of its functions.”, ( f ) in Articles 8, 11 and 13, by substituting “majority-shareholding Minister” for “Minister” in each place where it occurs, and ( g ) by substituting for Article 25 the following: “25. (1) The majority-shareholding Minister may, having consulted with the Minister for Public Expenditure and Reform, make a scheme for the granting of pensions, gratuities or other allowances to or in respect of the chairman and other members of the Board, being members whose duties as such are wholetime, ceasing to hold office, other than persons in respect of whom an aw