Notice under Article 14 (3) of the Gas (Northern Ireland) Order 1996

The Northern Ireland Authority for Energy Regulation (hereinafter referred to as “the Authority) pursuant to Article 14(3) of the Gas (Northern Ireland) Order 1996, as amended, (the “Order”) hereby gives notice as follows:

1.	The Authority proposes to make modifications to Schedule 4 of the licence granted under Article 8 of the Order (the “licence”) to Phoenix Natural Gas Ltd (the “licensee”).
2.	The reasons for, and effects of, the proposed modifications are as follows:
Reason

The licence requires the licensee, inter alia, to have installed and brought in to operation a system of distribution pipelines readily capable of being connected to a specified number of premises in the specified districts and within the specified timescales (the “development plan targets”).

The licensee has not been able to meet its development plan targets for each of the Newtownabbey, Duncrue and Harbour Districts, as set out in Annex 1 to Schedule 4 of the licence.

In the case of the Newtownabbey district, the development plan target has not been met due to the licensee determining that it was necessary and/or appropriate for it to utilize its resources to the development of the network in a number of the other districts.

In relation to each of the Duncrue and Harbour districts the Authority has determined that the number of properties located in each district is less than that provided for in Annex 1 of Schedule 4 of the licence. It would therefore be impossible for the licensee to comply with its development plan targets in respect of these districts.

Given these factors, which have affected the licensee’s ability to meet each of the relevant targets, the Authority considers it appropriate to revise the relevant development plan targets.

Effect

The proposed modifications will enable the licensee to achieve its development plan target for Newtownabbey by December 2006, and will enable the gas network to be extended to relevant properties in the Duncrue and Harbour Districts as and when requested by each potential customer.

This is considered by the Authority to be consistent with the aim of bringing gas to these districts in the most economic and efficient way possible.

Annex 1 of Schedule 4 of the licence provides details on the licensee’s development plan targets specifying the number of properties to be passed by a certain date.

It is proposed that Schedule 4 will be modified to take account of the following:

1.	Newtownabbey District – Extend the date by which the target must be met to December 2006.
2.	Duncrue – Reduce the number of properties in the development plan target to 584.
3.	Harbour – Reduce the number of properties in the development plan target to 286.

The modifications relating to the Duncrue and Harbour districts will lower the development plan targets to the number of properties that may be readily connected to PNG’s network.

A copy of the proposed modification can be obtained from Mr Samuel Connolly at Ofreg, Brookmount Buildings, 42 Fountain Street, Belfast, BT1 5EE. (samuel.connolly@ofregni.gov.uk)

Representations or objections with respect to the proposed modification may be made on or before 7th September 2005 to the same address.