| (1) | A customer who meets the qualifying threshold or requirements set out in subregulation (2) or (3) may qualify as an eligible customer. |
| (2) | The qualifying thresholds for a customer who is located within a licensed distribution area are as follows: |
| (a) | For the first 5 years after the first delivery of gas sold and delivered on a commercial scale and on a continuous basis to the distribution licensee: 400 000 Giga Joules per annum; |
| (b) | for the next 5 years: 100 000 Giga Joules per annum; and |
| (c) | thereafter: 40 000 Giga Joules per annum. |
| (3) | Customers who were receiving gas under a valid contract of supply in an area prior to— |
| (a) | the issue of a distribution license issued by the Gas Regulator; or |
| (b) | the issue of a reticulation permit or equivalent permit by the local authority, |
may be eligible customers for as long as that contract remains valid.
| (4) | A vertically integrated gas company active in transmission and distribution may only supply from its transmission to an eligible customer in other distribution areas licensed to another entity if a third party would have mandatory access to the transmission pipeline for quantities of gas equivalent to the threshold of that eligible customer. |