Compensation scheme for operators of Part 4 pipelines and operators of gas storage facilities
18 Compensation scheme for operators of Part 4 pipelines and operators of gas storage facilities
This section applies in respect of the compensation scheme as the scheme applies to operators of Part 4 pipelines and operators of gas storage facilities.
The relevant gas quality specification for an operator of a Part 4 pipeline in relation to the pipeline is the reference specification for the pipeline.
The relevant gas quality specification for an operator of a gas storage facility in relation to the facility is the gas quality specification prescribed for the facility for the purposes of this subsection.
The costs referred to in section 16(1)(a), of an operator of a Part 4 pipeline or a gas storage facility, are, under the regulations, to be limited to —
the costs necessary to restore any reduction in the capacity of the pipeline or gas storage facility resulting from being delivered the gas, to the extent to which the reduction in capacity is attributable to the gas not complying with the relevant gas quality specification for the operator; and
the plant and equipment costs of the operator, to the extent to which those costs are attributable to the gas not complying with the relevant gas quality specification for the operator; and
increases in operating and maintenance costs of the operator resulting from being delivered the gas, to the extent to which those increases are attributable to the gas not complying with the relevant gas quality specification for the operator.
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