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Cite as: [2000] IECA 581

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Nitrigin Eireann Teoranta/Irish Fertilizer Industries Ltd/Bord Gais Eireann [2000] IECA 581 (29th February, 2000)

COMPETITION AUTHORITY

Competition Authority Decision of 29 February 2000 relating to a proceeding under Section 4 of the Competition Act, 1991.

Notification No CA/225/92E - Nitrigin Eireann Teoranta/Irish Fertilizer Industries Ltd/Bord Gais Eireann

Decision No. 581

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Competition Authority Decision of 29 February 2000, relating to a proceeding under Section 4 of the Competition Act, 1991.

Notification No CA/225/92E - Nitrigin Eireann Teoranta / Irish Fertilizer Industries Limited / Bord Gais Eireann

Decision No: 581

The Notification

1. Notification was made by Nitrigin Eireann Teoranta on 30 September, 1992 with a request for a certificate under Section 4 (4) of the Competition Act, 1991 or, in the event of a refusal by the Competition Authority to issue a certificate, a licence under Section 4 (2) in respect of an agreement between Bord Gais Eireann (BGE), Nitrigin Eireann Teoranta (NET) and Irish Fertilizer Industries Limited (IFI). The notification concerns a long term agreement dated 13 March 1976 for the supply of natural gas by BGE, a State company, to NET, a State company engaged in the manufacture of fertilisers and other chemical products. The provisions of the 1976 agreement were amended by way of the Gas Amending Agreement dated 2 October, 1987, to the effect that a further supply of natural gas should be made available by BGE to NET and arrangements were established to allow the re-sale by NET to IFI of all natural gas purchased from BGE during the term of the 1976 agreement. The notifying party confirmed that the Gas Amending Agreement continued in effect until the 1976 agreement terminated on 31 December, 1999.

The Decision

2. The Competition Authority considers that, on the basis of the facts in its possession, the Gas Supply Agreement notified to it on 30 September 1992, (Notification No. CA/225/92E), between Bord Gais Eireann, Nitrigin Eireann Teoranta and Irish Fertilizer Industries Limited, has expired. The agreement in question was in existence at the time the Competition Act, 1991 came into force. The Authority has set out in Decision No. 527 its reasons for concluding that where such an agreement has terminated, a decision to issue or not to issue a certificate has no legal consequences and, by virtue of Section 7 (3), no licence can now be awarded for the period during which the agreement operated. The Authority has, therefore, decided to close the file without considering whether or not the agreement merits a certificate or licence.

For the Competition Authority,

Isolde Goggin

Member

29 February 2000.