Restricted User Clause Samples
The Restricted User clause defines specific individuals or entities who are not permitted to access, use, or benefit from a product, service, or agreement. Typically, this clause lists categories such as competitors, sanctioned parties, or users in certain jurisdictions, and may require the contracting party to ensure that none of their affiliates or end users fall into these restricted categories. Its core practical function is to protect the provider from legal, regulatory, or competitive risks by clearly identifying and excluding problematic users from the scope of the agreement.
Restricted User. 2.5.1 A person which is for the time being either:
(a) designated by the Authority for the purposes of Special Condition C6 of National Grid NTS's Transporter's Licence; or
(b) a body which is declared by an Order of the Secretary of State to be a Recognised Clearing House for the purposes of the Financial Services Markets Act 2000 (as amended); or
(c) a body which is declared by an Order of the Secretary of State to be a Recognised Investment Exchange for the purposes of the Financial Services Markets Act 2000 (as amended) and which makes its own arrangements for clearing transactions effected on its exchange may be admitted as a User in relation to the NTS for the purposes only of making Trade Nominations pursuant to Section C5.
2.5.2 Where a User is admitted pursuant to paragraph 2.5.1:
(a) the User hereby undertakes to National Grid NTS that it will not and will not purport to deliver gas to nor offtake gas from the Total System, make any Nomination, will not or purport to act as if it were a Trading Participant, become a CSEP User or the Registered User of any Supply Point, or hold System Capacity or Storage Capacity at LNG Facilities, or make a System Capacity Transfer or Storage Gas Transfer in relation to an LNG Facility, or otherwise exercise any right or entitlement of a User other than the right to make Trade Nominations pursuant to Section C5 and any rights (consequent thereon) arising under Sections F, S, GT Section A, this Section V, U and X;
(b) the User shall not make a Trade Nomination more than 5 Days before the Gas Flow Day;
(c) the User shall not be bound to comply with any obligation under Section L, O or (except pursuant to paragraph 4 thereof) Q.
2.5.3 Where an Applicant User informs National Grid NTS that it wishes to be admitted as a User pursuant to paragraph 2.5.1:
(a) the requirements in paragraph 2.1.2(b), (d) and (i) shall not apply in respect of the Applicant User;
(b) the requirement paragraph 2.1.2(j) shall apply in respect of the Applicant User as if it were a Trader User;
(c) it shall be an additional requirement for the purposes of paragraph 2.1.1 that, at the same time as the User accedes to the Framework Agreement, National Grid NTS and the User enter into a memorandum to record that the User is or is to be admitted pursuant to paragraph 2.5.1;
(d) National Grid NTS's notification to Users and the CDSP under paragraph 2.2.2(b) will specify that the Applicant User has been so admitted.
Restricted User. An individual authorized to use only portions or certain levels of the system as approved by the Jurisdiction/Agency Administrator.