1. Member States may provide for national regulatory authori? ties or other competent authorities to classify a system which dis? tributes gas within a geographically confined industrial, commercial or shared services site and does not, without preju? dice to paragraph 4, supply household customers, as a closed dis? tribution system if:
(a) for specific technical or safety reasons, the operations or the production process of the users of that system are integrated; or
(b) that system distributes gas primarily to the owner or opera?
tor of the system or to their related undertakings.
2. Member States may provide for national regulatory authori? ties to exempt the operator of a closed distribution system from the requirement under Article 32(1) that tariffs, or the method? ologies underlying their calculation, are approved prior to their entry into force in accordance with Article 41.
3. Where an exemption is granted under paragraph 2, the applicable tariffs, or the methodologies underlying their calcula? tion, shall be reviewed and approved in accordance with Article 41 upon request by a user of the closed distribution system.
4. Incidental use by a small number of households with employment or similar associations with the owner of the distri? bution system and located within the area served by a closed dis? tribution system shall not preclude an exemption under paragraph 2 being granted.
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