Gas Act 1986

• (b) require the regulated person to furnish to the Director, or to any person specified in the notice, such information as may be specified or described in the notice, and specify the time, the manner and the form in which any such information is to be furnished.

• (1B) No person shall be compelled for any such purpose as is mentioned in subsection (1) or (1A) above to produce any documents or records which he could not be compelled to produce in civil proceedings before the court or, in complying with any requirement for the furnishing of information, to give any information which he could not be compelled to give in evidence in such proceedings.

• (2) A person who without reasonable excuse fails to do anything duly required of him by a notice under subsection (1) or (1A)above shall be guilty of an offence and liable on summary conviction to a fine not exceeding level 5 on the standard scale.

• (3) A person who intentionally alters, suppresses or destroys any document or recordswhich he has been required by any such notice to produce shall be guilty of an offence and liable—

• (a) on summary conviction, to a fine not exceeding the statutory maximum;

• (b) on conviction on indictment, to a fine.

• (4) If a person makes default in complying with a notice under subsection (1) or (1A)above, the court may, on the application of the Director, make such order as the court thinks fit for requiring the default to be made good; and any such order may provide that all the costs or expenses of and incidental to the application shall be borne by the person in default or by any officers of a company or other association who are responsible for its default.

• (5) In this section—

• “relevant condition” and “relevant requirement” have the same meanings as in section 28 above;

• “the court” has the same meaning as in section 30 above.

Annual and other reports

39

Other functions of Council

General duty to advise Director

40

Annual reports

41

Miscellaneous

General restrictions on disclosure of information

42

Making of false statements etc.

43

• (1) If any person, in giving any information or making any application for the purposes of any provision of this Part, or of any regulation made under any provision of this Part, makes any statement which he knows to be false in a material particular, or recklessly makes any statement which is false in a material particular, he shall be guilty of an offence and liable—

• (a) on summary conviction, to a fine not exceeding the statutory maximum;

• (b) on conviction on indictment, to a fine.

• (1A) Any person who with intent to deceive—

• (a) impersonates an officer of a gas transporter, gas supplier or gas shipper for the purpose of obtaining entry to any premises; or

• (b) for that purpose makes any statement or does any act calculated falsely to suggest that he is an officer, or an authorised officer, of such a transporter, supplier or shipper,

shall be guilty of an offence and liable on summary conviction to a fine not exceeding level 4 on the standard scale.

• (2) Proceedings for an offence under subsection (1) above shall not in England and Wales be instituted except by or with the consent of the Secretary of State or the Director of Public Prosecutions.

Compensation to chairmen and officers of Consumers' Councils

44

• (1) The Secretary of State may pay—

• (a) to the person who immediately before the appointed day is the chairman of the National Gas Consumers’ Council; and

• (b) to the persons who immediately before that day are the chairmen of the Regional Gas Consumers’ Councils,

such sums by way of compensation for loss of office or loss or diminution of pension rights as the Secretary of State may with the approval of the Treasury determine.

• (2) The Secretary of State may also pay to persons who immediately before the appointed day were officers of any of the Councils mentioned in subsection (1) above such sums by way of compensation for loss of employment, or loss or diminution of remuneration or pension rights, as the Secretary of State may with the approval of the Treasury determine.

• (3) Any sums required by the Secretary of State for the purposes of this section shall be paid out of money provided by Parliament.

Supplemental

Offences by bodies corporate

45

• (1) Where a body corporate is guilty of an offence under this Part and that offence is proved to have been committed with the consent or connivance of, or to be attributable to any neglect on the part of, any director, manager, secretary or other similar officer of the body corporate or any person who was purporting to act in any such capacity he, as well as the body corporate, shall be guilty of that offence and shall be liable to be proceeded against and punished accordingly.

• (2) Where the affairs of a body corporate are managed by its members, subsection (1) above shall apply in relation to the acts and defaults of a member in connection with his functions of management as if he were a director of the body corporate.

Service of notices etc.

46

• (1) . . .Any notice or other document required or authorised to be given, delivered or served under this Part or regulations made under this Part may be given, delivered or served either—

• (a) by delivering it to the person to whom it is to be given or delivered or on whom it is to be served;

• (b) by leaving it at the usual or last known place of abode of that person;

• (c) by sending it in a prepaid letter addressed to that person at his usual or last known place of abode;

• (d) in the case of a body corporate, by delivering it to the secretary or clerk of the body at their registered or principal office, or sending it in a prepaid letter addressed to the secretary or clerk of the body at that office; or

• (e) if it is not practicable after reasonable inquiry to ascertain the name or address of a person to whom it should be given or delivered, or on whom it should be served, as being a person having any interest in premises, by addressing it to him by the description of the person having that interest in the premises (naming them) to which it relates and delivering it to some responsible person on the premises, or affixing it or a copy of it to some conspicuous part of the premises.

• (1A) In the case of a notice or other document required or authorised to be given, delivered or served under this Part, or regulations made under this Part, by the Authority or the Secretary of State, that notice or document may also be given, delivered or served by electronic means if the conditions in subsection (1B) are met.

• (1B) The conditions in this subsection are that—

• (a) the person to whom the notice or other document is to be given or delivered or on whom it is to be served has indicated to the Authority or the Secretary of State (as the case may be) the person’s willingness to receive by electronic means notices or documents of that description (and has not withdrawn that indication); and

• (b) the notice or document is sent to the number or address most recently specified by the person for that purpose.

• (1C) An indication for the purposes of subsection (1B)—

• (a) must be given in such manner and include such information as the Authority or the Secretary of State (as the case may be) directs; and

• (b) may be withdrawn by an indication given in such manner as the Authority or the Secretary of State (as the case may be) directs.

• (1D) Withdrawal of an indication given for the purposes of subsection (1B) takes effect at the beginning of the fifth working day after the day on which the Authority or the Secretary of State (as the case may be) receives the indication withdrawing it.

• (1E) A notice or other document which is given, delivered or served in accordance with subsection (1A) is to be treated as having been given, delivered or served on the next working day after the day on which it is sent.

• (2) Without prejudice to subsection (1) or (1A) above, where this subsection applies in relation to a gas transporter or gas supplier, any notice to be given to or served on the transporter or supplier under—

• (a) any condition of his licence;

• (b) any provision of Schedule 2B to this Act; or

• (c) in the case of a transporter, section 10 above,

may be given or served by delivering it at, or sending it in a prepaid letter to, an appropriate office of the transporter or supplier.

• (3) Subsection (2) above applies in relation to a gas transporter if he divides any authorised area of his into such areas as he thinks fit and—

• (a) in the case of each area, fixes offices of his which are to be appropriate offices in relation to notices relating to matters arising in that area; and

• (b) publishes in each area, in such manner as he considers adequate, the addresses of the offices fixed by him for that area.

• (4) Subsection (2) above applies in relation to a gas supplier if he divides the premises specified in his licence into such areas as he thinks fit and—

• (a) in the case of each area, fixes offices of his which are to be appropriate offices in relation to notices relating to matters arising in that area;

• (b) publishes in each area, in such manner as he considers adequate, the addresses of the offices fixed by him for that area; and

• (c) endorses on every demand note for gas charges payable to him the addresses of the offices fixed for the area in question.

• (5) In this section—

• (a) references to premises specified in a licence include references to premises of a description, or situated in an area, so specified;

• (b) “working day” means any day other than—

• (i) Saturday or Sunday;

• (ii) Christmas Day or Good Friday;

• (iii) a day which is a bank holiday in England and Wales or Scotland under the Banking and Financial Dealings Act 1971.

Provisions as to regulations

47

• (1) Regulations made under any provision of this Part may provide for the determination of questions of fact or of law which may arise in giving effect to the regulations and for regulating (otherwise than in relation to any court proceedings) any matters relating to the practice and procedure to be followed in connection with the determination of such questions, including provision—

• (a) as to the mode of proof of any matter;

• (b) as to parties and their representation;

• (c) for the right to appear before and be heard by the Secretary of State, the Director and other authorities; and

• (d) as to awarding costs or expenses of proceedings for the determination of such questions, determining the amount thereof and the enforcement of awards thereof.

• (2) Regulations made under any provision of this Part which prescribe a period within which things are to be done may provide for extending the period so prescribed.

• (3) Regulations made under any provision of this Part may—

• (aa) provide for anything falling to be determined under the regulations to be determined—

• (i) by the Director or by such other person as may be prescribed by the regulations; and

• (ii) in accordance with such procedure and by reference to such matters and to the opinion of such persons as may be so prescribed;

• (a) make different provision for different areas or in relation to different cases or different circumstances; and

• (b) provide for such exceptions, limitations and conditions, and make such supplementary, incidental or transitional provision, as the Secretary of State or, as the case may be, the Director considers necessary or expedient.

• (4) Regulations made under any provision of this Part may provide that any person contravening the regulations shall be guilty of an offence and liable on summary conviction to a fine not exceeding level 5 on the standard scale.

• (5) Proceedings for an offence under any regulations made under any provision of this Part shall not in England and Wales be instituted except by or with the consent of the Secretary of State , the Director or the Director of Public Prosecutions.

• (6) In any proceedings against any person for an offence under any regulations made under any provision of this Part, it shall be a defence for that person to show—

• (a) that he was prevented from complying with the regulations by circumstances not within his control; or

• (b) that circumstances existed by reason of which compliance with the regulations would or might have involved danger to the public and that he took all such steps as it was reasonable for him to take both to prevent the circumstances from occurring and to prevent them from having that effect.

• (7) Any power to make regulations conferred by this Part on the Secretary of State or the Authority shall be exercisable by statutory instrument.

• (8) Any statutory instrument containing regulations under this Part made by the Secretary of State shall, except as otherwise provided by this Act, be subject to annulment in pursuance of a resolution of either House of Parliament.

Interpretation of Part I and savings,

48

• (1) In this Part, unless the context otherwise requires—

• “the Agency” means the Agency for the Cooperation of Energy Regulators established under the Agency Regulation;

• “the Agency Regulation” means Regulation (EU) 2019/942 of the European Parliament and of the Council of 5 June 2019 establishing a European Union Agency for the Cooperation of Energy Regulators (recast), and “predecessor”, in relation to that Regulation, means Regulation (EC) 713/2009 of the European Parliament and of the Council of 13 July 2009 establishing an Agency for the Cooperation of Energy Regulators;

• “associated undertaking”, in relation to a person (“person A”), means a person who—has control of person A; oris under the control of a person who controls person A,and sections 450 and 451(1) to (3) of the Corporation Tax Act 2010 (meaning of “control”) apply, with any necessary modifications, for the purposes of this definition as they apply for the purposes of Part 10 of that Act;

• “authorised area”, in relation to a gas transporter, has the meaning given by section 7(2) above;

• “authorised supplier” means a person authorised by a licence or exemption to supply to any premises gas which has been conveyed to those premises through pipes;

• “authorised transporter” means a person authorised by a licence or exemption to convey gas through pipes to any premises or to a pipe-line system operated by a gas transporter;

• “calorific value” has the meaning given by section 12(2) above;

• “the CMA” means the Competition and Markets Authority;

• “code manager licence” means a licence under section 7AC;

• . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• “declared calorific value” has the meaning given by section 12(2) above;

• ...

• ...

• “designated regulatory function” means a function of the Authority or the Northern Ireland Authority conferred by— a provision of assimilated law, ora condition in a licence under section 7, 7ZA or 7A or Article 8 of the Gas (Northern Ireland) Order 1996 (S.I. 1996/275 (N.I. 2)), as that condition is modified from time to time on or after IP completion day,where that function was, immediately before IP completion day, one of its functions as a regulatory authority designated in accordance with Article 39 of the Gas Directive;

• “distribution exemption holder” means a person who—is carrying on an activity such as is mentioned in section 5(1)(a), the whole or part of which is also an activity of distribution within the meaning given by Article 2(5) of the Gas Directive; andis authorised to carry on that activity by an exemption;

• “distribution main”, in relation to a gas transporter, means any main of the transporter through which the transporter is for the time being distributing gas and which is not being used only for the purpose of conveying gas in bulk;

• . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• “exempt distribution system” means a distribution system operated or controlled by a distribution exemption holder who is covered by an exemption granted to it in relation to that system;

• “exemption” means an exemption under section 6A;

• “gas” means—any substance in a gaseous state which consists wholly or mainly of—methane, ethane, propane, butane, hydrogen or carbon monoxide;a mixture of two or more of those gases; ora combustible mixture of one or more of those gases and air; andany other substance in a gaseous state which is gaseous at a temperature of 15°C and a pressure of 1013·25 millibars and is specified in an order made by the Secretary of State;

• “the Gas Directive” means Directive 2009/73/EC of the European Parliament and of the Council of 13 July 2009 concerning common rules for the internal market in natural gas and repealing Directive 2003/55/EC, as amended by the 2019 Amending Directive;

• “gas fittings” means gas pipes and meters, and fittings, apparatus and appliances designed for use by consumers of gas for heating, lighting, motive power and other purposes for which gas can be used;

• “gas interconnector” has the meaning given by section 5(8);

• “the Gas Regulation” means Regulation 2009/715/EC of the European Parliament and of the Council of 13 July 2009 on conditions for access to the natural gas transmission networks and repealing Regulation 2005/1775/EC, as amended by the 2010 Amending Decision , the 2012 Amending Decision and the 2013 Amending Regulation ;

• “gas supplier” and “gas shipper” have the meanings given by section 7A(11) above;

• “gas system planner licence” means a licence under section 7AA;

• “gas undertaking” has the meaning given by section 8Q;

• “holding company” has the meaning given by section 1159 of the Companies Act 2006;

• “information” includes accounts, estimates and returns;

• “ kilowatt hour” means 3.6 megajoules;

• “licence” means a licence under section 7, 7ZA , 7A , 7AA, 7AB or 7AC and “licence holder” shall be construed accordingly;

• “LNG import or export facility” means a facility in Great Britain (including the territorial sea adjacent to Great Britain and the sea in any area designated under section 1(7) of the Continental Shelf Act 1964) for—the importation into Great Britain and regasification of liquid gas prior to its conveyance to a pipeline system operated by the holder of a licence under section 7 or section 7ZA, or the liquefaction of gas for the purpose of its export from Great Britain; andany activity, including temporary storage of gas or liquid gas, which is necessary for that importation, regasification or liquefaction;

• . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• “main commercial conditions” means—in the case of a storage facility, such information as would enable a potential applicant for a right to have gas or liquid gas stored in the facility to make a reasonable assessment of the cost of, or the method of calculating the cost of, acquiring that right;in the case of an LNG import or export facility, the terms setting out the cost or the method of determining the cost of acquiring the right to have gas or liquid gas treated in the facility;the other significant terms on which such a right as is mentioned in paragraph (a) or (b) would be granted; andsuch additional information as the Authority may from time to time specify by notice;

• “notice” means notice in writing;

• “Northern Ireland Authority” means the Northern Ireland Authority for Utility Regulation;

• “officer”, in relation to any person, includes any servant or agent of that person, and any officer or servant of such an agent;

• “owner”—in relation to any premises or other property, includes a lessee;in relation to a storage facility or an LNG import or export facility, includes a person occupying or having control of the facility,and cognate expressions shall be construed accordingly;;

• “prescribed” means prescribed by regulations made, unless the context otherwise requires, by the Secretary of State;

• “providing a smart meter communication service” has the meaning given in section 5(11) above, and cognate expressions shall be construed accordingly;

• “relevant producer or supplier” has the meaning given by section 8Q;

• “gas transporter” has the meaning given by section 7(1) above;

• . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• “senior officer” means—in relation to a company, a director;in relation to a partnership, a partner;in any other case, a person holding a position equivalent to that of a director or partner;

• “service pipe” means a pipe, other than a distribution main of a gas transporter, which is used for the purpose of conveying gas from such a main to any premises, and includes part of any such pipe;

• “smart meter communication licence” has the meaning given to that term in section 7AB(1);

• “storage”, in relation to gas, means storage in, or in a facility which is connected (directly or indirectly) to, a pipe-line system operated by a gas transporter;

• “storage”, in relation to liquid gas in a storage facility, includes any liquefaction of gas or regasification of liquid gas ancillary to the storage of liquid gas, and “stored”, in relation to liquid gas in a storage facility, shall be construed accordingly;

• “storage facility” means a facility in Great Britain (including the territorial sea adjacent to Great Britain and the sea in any area designated under section 1(7) of the Continental Shelf Act 1964) for either or both of the following—the storage in porous strata, or in cavities in strata, of gas which has been, or will be, conveyed in a pipeline system operated by the holder of a licence under section 7 or 7ZA;the storage of liquid gas which, if regasified, would be suitable for conveyance through pipes to premises in accordance with a licence under section 7,but the reference in paragraph (b) to the storage of liquid gas does not include suchtemporary storage as is mentioned in the definition of “LNG import or export facility”;;

• “subsidiary” has the meaning given by section 736 of the Companies Act 1985;

• “supply exemption holder” means a person who—is carrying on the activity mentioned in section 5(1)(b); andis authorised to carry on that activity by an exemption;

• “treatment”, in relation to gas or liquid gas in an LNG import or export facility, includes importation, regasification, liquefaction and temporary storage, and “treat” shall be construed accordingly;

• “the 2010 Amending Decision” means Commission Decision 2010/685/EU of 10 November 2010 amending Chapter 3 of Annex I to Regulation 2009/715/EC of the European Parliament and of the Council on conditions for access to the natural gas transmission networks;

• “the 2012 Amending Decision” means Commission Decision 2012/490/EU of 24 August 2012 amending Annex I to Regulation 2009/715/EC of the European Parliament and of the Council on conditions for access to the natural gas transmission networks;

• “the 2013 Amending Regulation” means Regulation 2013/347/EU of the European Parliament and of the Council of 17 April 2013 on guidelines for trans-European energy infrastructure and repealing Decision 2006/1364/EC and amending Regulations 2009/713/EC, 2009/714/EC and 2009/715/EC;

• “the 2019 Amending Directive” means Directive (EU) 2019/692 of the European Parliament and of the Council of 17 April 2019 amending Directive 2009/73/EC concerning common rules for the internal market in natural gas;

• . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• (1ZA) Until section 75 of the Utilities Act 2000 comes into force the references to an exemption in the definitions in subsection (1) above of “distribution exemption holder”, “exempt distribution system” and “supply exemption holder” to an exemption include an exception under Schedule 2A.

• (1A) In this Part any reference to an officer authorised by any person includes, in relation to an officer who is an officer or servant of an agent of that person, an officer who, in accordance with the terms of any written authority given by that person to the agent, is authorised by the agent on behalf of that person.

• (2) In this Part, except in section 18, references to the supply of gas do not include references to the supply of gas (directly or indirectly) to a gas transporter, gas supplier or gas shipper.

• (2A) In relation to any time after 31st December 1999—

• (a) references in this Part to 2,500, 75,000 and 2 million therms shall be construed as references to 73,200, 2,196,000 and 58 million kilowatt hours respectively; and

• (b) other references in this Part to therms, and references in this Part to therms or kilowatt hours, shall be construed as references to kilowatt hours.

• (2B) A person is of pensionable age for the purposes of this Part if—

• (a) he has attained pensionable age (within the meaning given by the rules in paragraph 1 of Schedule 4 to the Pensions Act 1995); or

• (b) in the case of a man born before 6th December 1953 , he is the same age as a woman who has attained pensionable age (within the meaning so given).

• (3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• (4) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Part II — Transfer of Undertaking of Corporation

Vesting of property etc. of Corporation in a company nominated by the Secretary of State

49

• (1) On such day as the Secretary of State may by order appoint for the purposes of this section (in this Act referred to as “the transfer date”), all the property, rights and liabilities to which the Corporation was entitled or subject immediately before that date shall (subject to section 50 below) become by virtue of this section property, rights and liabilities of a company nominated for the purposes of this section by the Secretary of State (in this Act referred to as “the successor company”).

• (2) The Secretary of State may, after consulting the Corporation, by order nominate for the purposes of this section any company formed and registered under the Companies Act 1985; but on the transfer date the company in question must be a company limited by shares which is wholly owned by the Crown.

• (3) References in this Act to property, rights and liabilities of the Corporation are references to all such property, rights and liabilities, whether or not capable or not capable of being transferred or assigned by the Corporation.

• (4) It is hereby declared for the avoidance of doubt that—

• (a) any reference in this Act to property of the Corporation is a reference to property of the Corporation, whether situated in the United Kingdom or elsewhere; and

• (b) any such reference to rights and liabilities of the Corporation is a reference to rights to which the Corporation is entitled, or (as the case may be) liabilities to which the Corporation is subject, whether under the law of the United Kingdom or of any part of the United Kingdom or under the law of any country or territory outside the United Kingdom.

• (5) In the House of Commons Disqualification Act 1975 in Part III of Schedule 1 (other disqualifying offices) there shall be inserted (at the appropriate place) the following entry—

and the like insertion shall be made in Part III of Schedule 1 to the Northern Ireland Assembly Disqualification Act 1975.

British Gas Stock

50

• (1) On the transfer date all the rights and liabilities to which the Corporation was entitled or subject immediately before that date under the terms of issue of British Gas Stock shall become by virtue of this section rights and liabilities of the Treasury.

• (2) As from the transfer date British Gas Stock shall be deemed for all purposes, but subject to the rights and liabilities mentioned in subsection (1) above, to have been created and issued under the National Loans Act 1968, and that Act and any other enactment, regulation or rule relating to securities issued under that Act shall apply accordingly to that Stock.

• (3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• (4) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• (5) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• (6) Before the transfer date the Corporation shall pay to the Bank of England a sum equal to the amounts accruing in respect of unclaimed interest or redemption money on British Gas Stock before the transfer date (after deduction of income tax in the case of interest), but excluding any amounts represented by money in the hands of the Bank of England.

• (7) The Bank of England shall deal with—

• (a) the money paid to them under subsection (6) above; and

• (b) the money already in their hands which represents such unclaimed interest or redemption money as is mentioned in that subsection,

as money entrusted to them for payment to holders of British Gas Stock and section 5 of the Miscellaneous Financial Provisions Act 1955 (which relates to unclaimed dividends etc. on Government Stock) shall apply accordingly.

• (8) In this section “British Gas Stock” means any stock created and issued under section 21 of the 1972 Act or section 43 of the Gas Act 1948.

Initial Government holding in the successor company

51

• (1) As a consequence of the vesting in the successor company by virtue of section 49 above of property, rights and liabilities of the Corporation, the successor company shall issue such securities of the company as the Secretary of State may from time to time direct—

• (a) to the Treasury or the Secretary of State; or

• (b) to any person entitled to require the issue of the securities following their initial allotment to the Treasury or the Secretary of State.

• (2) The Secretary of State shall not give a direction under subsection (1) above at a time when the successor company has ceased to be wholly owned by the Crown.

• (3) Securities required to be issued in pursuance of this section shall be issued or allotted at such time or times and on such terms as the Secretary of State may direct.

• (4) Shares issued in pursuance of this section—

• (a) shall be of such nominal value as the Secretary of State may direct; and

• (b) shall be issued as fully paid and treated for the purposes of the Companies Act 2006 as if they had been paid up by virtue of the payment to the successor company of their nominal value in cash.

• (5) The Secretary of State shall not exercise any power conferred on him by this section, or dispose of any securities issued or of any rights to securities initially allotted to him in pursuance of this section, without the consent of the Treasury.

• (6) Any dividends or other sums received by the Treasury or the Secretary of State in right of or on the disposal of any securities or rights acquired by virtue of this section shall be paid into the Consolidated Fund.

• (7) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Government investment in securities of the successor company

52

• (1) The Treasury or, with the consent of the Treasury, the Secretary of State may at any time acquire—

• (a) securities of the successor company; or

• (b) rights to subscribe for any such securities.

• (2) The Secretary of State may not dispose of any securities or rights acquired under this section without the consent of the Treasury.

• (3) Any expenses incurred by the Treasury or the Secretary of State in consequence of the provisions of this section shall be paid out of money provided by Parliament.

• (4) Any dividends or other sums received by the Treasury or the Secretary of State in right of, or on the disposal of, any securities or rights acquired under this section shall be paid into the Consolidated Fund.

• (5) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Exercise of functions through nominees

53

• (1) The Treasury or, with the consent of the Treasury, the Secretary of State may for the purposes of section 51 or 52 above appoint any person to act as the nominee, or one of the nominees, of the Treasury or the Secretary of State; and—

• (a) securities of the successor company may be issued under section 51 above to any nominee of the Treasury or the Secretary of State appointed for the purposes of that section or to any person entitled to require the issue of the securities following their initial allotment to any such nominee; and

• (b) any such nominee appointed for the purposes of section 52 above may acquire securities or rights under that section,

in accordance with directions given from time to time by the Treasury or, with the consent of the Treasury, by the Secretary of State.

• (2) Any person holding any securities or rights as a nominee of the Treasury or the Secretary of State by virtue of subsection (1) above shall hold and deal with them (or any of them) on such terms and in such manner as the Treasury or, with the consent of the Treasury, the Secretary of State may direct.

Target investment limit for Government shareholding

54

• (1) As soon as he considers expedient and, in any case, not later than six months after the successor company ceases to be wholly owned by the Crown, the Secretary of State shall by order fix a target investment limit in relation to the shares for the time being held in that company by virtue of any provision of this Part by the Treasury and their nominees and by the Secretary of State and his nominees (in this section referred to as “the Government shareholding”).

• (2) The target investment limit shall be expressed as a proportion of the voting rights which are exercisable in all circumstances at general meetings of the successor company (in this section referred to as “the ordinary voting rights”).

• (3) The first target investment limit fixed under this section shall be equal to the proportion of the ordinary voting rights which is carried by the Government shareholding at the time when the order fixing the limit is made.

• (4) The Secretary of State may from time to time by order fix a new target investment limit in place of the one previously in force under this section; but—

• (a) any new limit must be lower than the one it replaces; and

• (b) an order under this section may only be revoked by an order fixing a new limit.

• (5) It shall be the duty of the Treasury and of the Secretary of State so to exercise—

• (a) their powers under section 52 above and any power to dispose of any shares held by virtue of any provision of this Part; and

• (b) their power to give directions to their respective nominees,

as to secure that the Government shareholding does not carry a proportion of the ordinary voting rights exceeding any target investment limit for the time being in force under this section.

• (6) Notwithstanding subsection (5) above, the Treasury or the Secretary of State may take up, or direct any nominee of the Treasury or of the Secretary of State to take up, any rights for the time being available to them or him, or to that nominee, as an existing holder of shares or other securities of the successor company; but if, as a result, the proportion of the ordinary voting rights carried by the Government shareholding at any time exceeds the target investment limit, it shall be the duty of the Treasury or, as the case may be, the Secretary of State to comply with subsection (5) above as soon after that time as is reasonably practicable.

• (7) For the purposes of this section the temporary suspension of any of the ordinary voting rights shall be disregarded.

Financial structure of the successor company

55

• (1) If the Secretary of State so directs at any time before the successor company ceases to be wholly owned by the Crown, such sum (not exceeding the accumulated realised profits of the Corporation) as may be specified in the direction shall be carried by the successor company to a reserve (in this section referred to as “the statutory reverse”).

• (2) The statutory reserve may only be applied by the successor company in paying up unissued shares of the company to be allotted to members of the company as fully paid bonus shares.

• (3) Notwithstanding subsection (2) above, the statutory reserve shall not count as an undistributable reserve of the successor company for the purposes of section 831(4)(d) of the Companies Act 2006; but for the purpose of determining under that section whether the successor company may make a distribution at any time any amount for the time being standing to the credit of the statutory reserve shall be treated for the purposes of section 831(4)(c) as if it were unrealised profits of the company.

• (4) For the purposes of any statutory accounts of the successor company—

• (a) the vesting effected by virtue of section 49 above shall be taken to have been a vesting of all the property, rights and liabilities to which the Corporation was entitled or subject immediately before the end of the last complete financial year of the Corporation ending before the transfer date (other than any rights and liabilities which vest in the Treasury by virtue of section 50 above) and to have been effected immediately after the end of that year; and

• (b) the value of any asset and the amount of any liability of the Corporation taken to have been vested in the successor company by virtue of paragraph (a) above shall be taken to have been the value or (as the case may be) the amount assigned to that asset or liability for the purposes of the corresponding statement of accounts prepared by the Corporation in respect of that year.

• (5) For the purposes of any statutory accounts of the successor company the amount to be included in respect of any item shall be determined as if anything done by the Corporation (whether by way of acquiring, revaluing or disposing of any asset or incurring, revaluing or discharging any liability, or by carrying any amount to any provision or reserve, or otherwise) had been done by the successor company.

Accordingly (but without prejudice to the generality of the preceding provision) the amount to be included from time to time in any reserves of the successor company as representing its accumulated realised profits shall be determined as if any profits realised and retained by the Corporation had been realised and retained by the successor company.

• (6) References in this section to the statutory accounts of the successor company are references to any accounts prepared by the successor company for the purposes of any provision of the Companies Act 1985 (including group accounts); and in this section “complete financial year” means a financial year ending with 31st March.

Temporary restrictions on successor company's borrowings etc.

56

• (1) If articles of association of the successor company confer on the Secretary of State powers exercisable with the consent of the Treasury for, or in connection with, restricting the sums of money which may be borrowed or raised by the group during any period, those powers shall be exercisable in the national interest notwithstanding any rule of law and the provisions of any enactment.

• (2) For the purposes of this section any alteration of the articles of association of the successor company which—

• (a) has the effect of conferring or extending any such power as is mentioned in subsection (1) above; and

• (b) is made at a time when that company has ceased to be wholly owned by the Crown,

shall be disregarded.

• (3) In this section “group” means the successor company and all of its subsidiaries taken together.

Dissolution of the Corporation

57

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Statements in connection with flotation

58

Application of Trustee Investments Act 1961 in relation to investment in the successor company

59

• (1) For the purpose of applying paragraph 3(b) of Part IV of Schedule 1 to the Trustee Investments Act 1961 (which provides that shares and debentures of a company shall not count as wider-range and narrower-range investments respectively within the meaning of that Act unless the company has paid dividends in each of the five years immediately preceding that in which the investment is made) in relation to investment in shares or debentures of the successor company during the calendar year in which the transfer date falls ( “the first investment year ”) or during any year following that year, the successor company shall be deemed to have paid a dividend as there mentioned—

• (a) in every year preceding the first investment year which is included in the relevant five years; and

• (b) in the first investment year, if that year is included in the relevant five years and the successor company does not in fact pay such a dividend in that year.

• (2) In subsection (1) above “the relevant five years” means the five years immediately preceding the year in which the investment in question is made or proposed to be made.

Tax provisions

60

• (1) The successor company shall be treated—

• (a) for all purposes of corporation tax and petroleum revenue tax; ...

• (b) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

as if it were the same person as the Corporation.

• (2) The successor company shall not by virtue of subsection (1) above be regarded as a body falling within section 170(12) of the Taxation of Chargeable Gains Act 1992 (bodies established for carrying on industries or undertakings under national ownership or control).

• (3) For the purposes of Part VI of the Income and Corporation Taxes Act 1988 (company distributions) and Part 5 of the Corporation Tax Act 2009 (loan relationships), any debentures issued in pursuance of section 51 above shall be treated as having been issued for new consideration equal to the principal sum payable under the debenture.

• (4) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Interpretation etc. of Part II

61

• (1) In this Part—

• “debenture” includes debenture stock;

• “securities”, in relation to a company, includes shares, debentures, bonds and other securities of the company, whether or not constituting a charge on the assets of the company;

• “shares” includes stock;

• “subsidiary” has the meaning given by section 1159 of the Companies Act 2006.

• (2) An order under section 49 above nominating any company for the purposes of that section and an order under subsection (1) of that section appointing the transfer date may be varied or revoked by a subsequent order at any time before any property, rights or liabilities vest in any company by virtue of section 49 above.

• (3) A company shall be regarded for the purposes of this Part as wholly owned by the Crown at any time when each of the issued shares in the company is held by, or by a nominee of, the Treasury or the Secretary of State.

Part III — Miscellaneous and General

Exclusion of certain agreements from Restrictive Trade Practices Act 1976

62

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Restrictions on use of certain information

63

Provisions as to orders

64

• (1) Any power conferred on the Secretary of State by this Act to make orders shall be exercisable by statutory instrument.

• (2) Any statutory instrument containing an order under this Act, other than an order appointing a day or an order under section 23, 30O , 33BC, ... 41C, 41HA, ... , 49(2) or 57(2) above, shall be subject to annulment in pursuance of a resolution of either House of Parliament.

Financial provisions

65

There shall be paid out of money provided by Parliament any administrative expenses incurred by the Secretary of State in consequence of the provisions of this Act and any increase attributable to this Act in the sums payable out of money so provided under any other Act.

General interpretation

66

In this Act, unless the context otherwise requires—

• “the 1972 Act” means the Gas Act 1972;

• “the appointed day” has the meaning given by section 3 above;

• “the Authority” means the Gas and Electricity Markets Authority;

• “Citizens Advice” means the National Association of Citizens Advice Bureaux;

• “Citizens Advice Scotland” means the Scottish Association of Citizens Advice Bureaux;

• “contravention”, in relation to any direction, condition, requirement, regulation or order, includes any failure to comply with it and cognate expressions shall be construed accordingly;

• “the Corporation” means the British Gas Corporation;

• ...

• . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• “modifications” includes additions, alterations and omissions and cognate expressions shall be construed accordingly;

• “subordinate legislation” has the same meaning as in the Interpretation Act 1978;

• “the successor company” has the meaning given by section 49(1) above;

• “the transfer date” has the meaning given by section 49(1) above;

• “the transitional period” has the meaning given by section 57(1) above.

Amendments, transitional provisions, savings and repeals

67

• (1) The enactments mentioned in Schedule 7 to this Act shall have effect subject to the amendments there specified (being minor amendments or amendments consequential on the preceding provisions of this Act).

• (2) The Secretary of State may by order make such consequential modifications of any provision contained in any Act (whether public general or local) passed, or in subordinate legislation made, before the appointed day as appear to him necessary or expedient in respect of—

• (a) any reference in that Act or subordinate legislation to the Corporation;

• (b) any reference (in whatever terms) in that Act or subordinate legislation to a person carrying on a gas undertaking or to such an undertaking; or

• (c) any reference in that Act or subordinate legislation to any enactment repealed by this Act.

• (3) The transitional provisions and savings contained in Schedule 8 to this Act shall have effect; but those provisions and savings are without prejudice to sections 16 and 17 of the Interpretation Act 1978 (effect of repeals).

• (4) The enactments mentioned in Schedule 9 to this Act (which include some which are spent or no longer of practical utility) are hereby repealed to the extent specified in the third column of that Schedule.

Short title, commencement and extent

68

• (1) This Act may be cited as the Gas Act 1986.

• (2) The following provisions of this Act, namely—

• Part I except sections 1 and 2;

• section 66;

• section 67(1) and Schedule 7;

• section 67(2);

• Part I of Schedule 8 and section 67(3) so far as relating to that Part; and

• Part I of Schedule 9 and section 67(4) so far as relating to that Part,

shall come into force on the appointed day.

• (3) The following provisions of this Act, namely—

• Part II;

• Part II of Schedule 8 and section 67(3) so far as relating to that Part; and

• Part II of Schedule 9 and section 67(4) so far as relating to that Part,

shall come into force on the transfer date.

• (4) Part III of Schedule 9 and section 67(4) so far as relating to that Part shall come into force on the dissolution of the Corporation.

• (5) Subject to subsections (2) to (4) above, this Act shall come into force on such day as the Secretary of State may by order appoint; and different days may be so appointed for different provisions or for different purposes.

• (6) This Act, except this section and the following provisions, namely—

• sections 49 and 50;

• section 58;

• sections 62 and 63;

• section 66;

• paragraph 7 of Schedule 1 and section 1(5) so far as relating to that paragraph;

• paragraph 8 of Schedule 2 and section 2(5) so far as relating to that paragraph;

• paragraphs 15, 23 and 28 of Schedule 7 and section 67(1) so far as relating to those paragraphs; and

• paragraph 27 to 31 of Schedule 8 and section 67(3) so far as relating to those paragraphs; and

• Schedule 9 and section 67(4) so far as relating to the repeal of section 33(2) of the 1972 Act and the repeals in the House of Commons Disqualification Act 1975,

does not extend to Northern Ireland.

SCHEDULE 1

1

There shall be paid to the Director such remuneration, and such travelling and other allowances, as the Secretary of State with the approval of the Treasury may determine.

2

In the case of any such holder of the office of the Director as may be determined by the Secretary of State with the approval of the Treasury, there shall be paid such pension, allowance or gratuity to or in respect of him on his retirement or death, or such contributions or payments towards provision for such a pension, allowance or gratuity as may be so determined.

3

If, when any person ceases to hold office as the Director, the Secretary of State determines with the approval of the Treasury that there are special circumstances which make it right that he should receive compensation, there may be paid to him a sum by way of compensation of such amount as may be so determined.

4

The Director may, with the approval of the Treasury as to numbers and terms and conditions of service, appoint such staff as he may determine.

5

There shall be paid out of money provided by Parliament the remuneration of, and any travelling or other allowances payable under this Act to, the Director and any staff of the Director, any sums payable under this Act to or in respect of the Director and any expenses duly incurred by the Director or by any of his staff in consequence of the provisions of this Act.

6

7

In the House of Commons Disqualification Act 1975 in Part III of Schedule 1 (other disqualifying offices) there shall be inserted (at the appropriate place) the following entry—

Director General of Gas Supply

;

8

The Director shall have an official seal for the authentication of documents required for the purposes of his functions.

9

The Documentary Evidence Act 1868 shall have effect as if the Director were included in the first column of the Schedule to that Act, as if the Director and any person authorised to act on behalf of the Director were mentioned in the second column of that Schedule, and as if the regulations referred to in that Act included any document issued by the Director or by any such person.

10

Anything authorised or required by or under this Act to be done by the Director (other than the making of a statutory instrument)may be done by any member of the staff of the Director who is authorised generally or specially in that behalf by the Director.

SCHEDULE 2

1

The Council shall not be regarded as a servant or agent of the Crown or as enjoying any status, immunity or privilege of the Crown.

2

The Council may pay to any member such sums, whether by way of remuneration or allowances or otherwise, as the Secretary of State may with the approval of the Treasury determine.

3

• (1) Subject to sub-paragraph (2) below, the Council may, with the approval of the Secretary of State as to numbers and terms and conditions of service, appoint such staff as it may determine.

• (2) The Council shall not appoint a person to act as principal officer of the Council except after consultation with the Secretary of State.

• (3) For the purpose of ensuring that there are persons available in particular localities to assist the Council in the performance in those localities of its functions under this Act, the Council may, without any such approval as is required by sub-paragraph (1) above, appoint such persons to be so available as it may determine.

• (4) Persons appointed under sub-paragraph (3) above shall not be paid any sums by the Council for or in respect of their services except sums reimbursing them for their travelling expenses and such of their other out-of-pocket expenses as do not relate to loss of remuneration.

• (5) The consent of the Treasury shall be required for the giving by the Secretary of State of an approval for the purposes of sub-paragraph (1) above.

4

The Council shall have power to do anything which is calculated to facilitate, or is incidental or conducive to, the performance of any of its functions under this Act.

5

It shall be the duty of the Council to comply with any notice given by the Secretary of State with the approval of the Treasury requiring it to perform duties of a financial nature specified in the notice.

6

The Secretary of State or the Director may, to such extent as may be approved by the Treasury, defray or contribute towards the expenses of the Council.

7

Any sums required by the Secretary of State for the purposes of paragraph 6 above shall be paid out of money provided by Parliament.

8

In the House of Commons Disqualification Act 1975 in Part II of Schedule 1 (bodies of which all members are disqualified) there shall be inserted (at the appropriate place) the following entry—

The Gas Consumers’ Council

;

SCHEDULE 3

Part I — Powers of Acquisition Etc.

1

• (1) The Secretary of State, after consultation with the Director, may authorise a gas transporters to purchase compulsorily any land.

• (2) In sub-paragraph (1) above “land” includes any right over land; and the power of the Secretary of State under that sub-paragraph includes power to authorise the acquisition of rights over land by creating new rights as well as acquiring existing ones.

2

• (1) This paragraph applies to land which—

• (a) for the purposes of the Acquisition of Land Act 1981, is or forms part of a common, open space or a fuel or field garden allotment; or

• (b) for the purposes of the Acquisition of Land (Authorisation Procedure) (Scotland) Act 1947, is or forms part of a common or open space.

• (2) Where for any purpose a gas transporters has acquired, or proposes to acquire, any land to which this paragraph applies, or any right over any such land, and other land is required for the purpose of being given in exchange for the land or right in question, the Secretary of State may authorise the transporter to purchase that other land compulsorily, or he may acquire it by agreement.

3

Where a gas transporters has acquired any land by virtue of paragraph 1 above, he shall not dispose of that land or of any interest in or right over it except with the consent of the Director.

Part II — Procedure, Compensation Etc. (England and Wales)

Application of Acquisition of Land Act 1981 generally

4

The Acquisition of Land Act 1981 shall apply to a compulsory purchase by a gas transporter’s of land or rights in England and Wales, subject, in the case of a compulsory acquisition of a right by the creation of a new right, to Schedule 3 to that Act.

New rights: general adaptation of Compulsory Purchase Act 1965

5

The Compulsory Purchase Act 1965 shall have effect with the modifications necessary to make it apply to a gas transporter’s compulsory acquisition of a right in England and Wales by the creation of a new right as it applies to the compulsory acquisition of land, so that, in appropriate contexts, references in that Act to land are to be read as referring, or as including references, to the right acquired or to be acquired, or to land over which the right is or is to be exercisable, according to the requirements of the particular context.

New rights: specific adaptations of Act of 1965

6

Without prejudice to the generality of paragraph 5 above, Part I of the said Act of 1965 shall apply in relation to a gas transporter’s compulsory acquisition of a right in England and Wales by the creation of a new right with the modifications specified in paragraphs 7 to 12 below.

7

For section 7 of that Act (measure of compensation) there shall be substituted the following section—

(7) In assessing the compensation to be paid by the acquiring authority under this Act regard shall be had not only to the extent (if any) to which the value of the land over which the right is to be acquired is depreciated by the acquisition of the right but also to the damage (if any) to be sustained by the owner of the land by reason of its severance from other land of his, or injuriously affecting that other land by the exercise of the powers conferred by this or the special Act.

8

Section 8(1) of the Compulsory Purchase Act 1965 has effect as if references to acquiring land were to acquiring a right in the land, and Schedule 2A to that Act is to be read as if, for that Schedule, there were substituted—

SCHEDULE 2A (1) (1) This Schedule applies where an acquiring authority serve a notice to treat in respect of a right over the whole or part of a house, building or factory. (2) But see section 2A of the Acquisition of Land Act 1981 (under which a compulsory purchase order can exclude from this Schedule land that is 9 metres or more below the surface). (2) In this Schedule “house” includes any park or garden belonging to a house. (3) A person who is able to sell the house, building or factory (“the owner”) may serve a counter-notice requiring the authority to purchase the owner's interest in the house, building or factory. (4) A counter-notice under paragraph 3 must be served within the period of 28 days beginning with the day on which the notice to treat was served. (5) On receiving a counter-notice the acquiring authority must decide whether to— (a) withdraw the notice to treat, (b) accept the counter-notice, or (c) refer the counter-notice to the Upper Tribunal. (6) The authority must serve notice of their decision on the owner within the period of 3 months beginning with the day on which the counter-notice is served (“the decision period”). (7) If the authority decide to refer the counter-notice to the Upper Tribunal they must do so within the decision period. (8) If the authority do not serve notice of a decision within the decision period they are to be treated as if they had served notice of a decision to withdraw the notice to treat at the end of that period. (9) If the authority serve notice of a decision to accept the counter-notice, the compulsory purchase order and the notice to treat are to have effect as if they included the owner's interest in the house, building or factory. (10) On a referral under paragraph 7 the Upper Tribunal must determine whether the acquisition of the right would— (a) in the case of a house, building or factory, cause material detriment to the house, building or factory, or (b) in the case of a park or garden, seriously affect the amenity or convenience of the house to which the park or garden belongs. (11) In making its determination, the Upper Tribunal must take into account— (a) the effect of the acquisition of the right, (b) the proposed use of the right, and (c) if the right is proposed to be acquired for works or other purposes extending to other land, the effect of the whole of the works and the use of the other land. (12) If the Upper Tribunal determines that the acquisition of the right would have either of the consequences described in paragraph 10 it must determine how much of the house, building or factory the authority ought to be required to take. (13) If the Upper Tribunal determines that the authority ought to be required to take some or all of the house, building or factory the compulsory purchase order and the notice to treat are to have effect as if they included the owner's interest in that land. (14) (1) If the Upper Tribunal determines that the authority ought to be required to take some or all of the house, building or factory, the authority may at any time within the period of 6 weeks beginning with the day on which the Upper Tribunal makes its determination withdraw the notice to treat in relation to that land. (2) If the acquiring authority withdraws the notice to treat under this paragraph they must pay the person on whom the notice was served compensation for any loss or expense caused by the giving and withdrawal of the notice. (3) Any dispute as to the compensation is to be determined by the Upper Tribunal.

9

The following provisions of that Act (being provisions stating the effect of a deed poll executed in various circumstances where there is no conveyance by persons with interests in the land)—

• section 9(4) (refusal by owners to convey);

• Schedule 1, paragraph 10(3) (owners under incapacity);

• Schedule 2, paragraph 2(3) (absent and untraced owners); and

• Schedule 4, paragraphs 2(3) and 7(2) (common land),

shall be so modified as to secure that, as against persons with interests in the land which are expressed to be overridden by the deed, the right which is to be compulsorily acquired is vested absolutely in the acquiring authority.

10

Section 11 of that Act (powers of entry) shall be so modified as to secure that, as from the date on which the acquiring authority have served notice to treat in respect of any right, they have power, exercisable in the like circumstances and subject to the like conditions, to enter for the purpose of exercising that right (which shall be deemed for this purpose to have been created on the date of service of the notice); and sections 12 (penalty for unauthorised entry) and 13 (entry on enforcement officer's or sheriff's warrant in the event of obstruction) shall be modified correspondingly.

11

Section 20 of that Act (protection for interests of tenants at will etc.) shall apply with the modifications necessary to secure that persons with such interests as are mentioned in that section are compensated in a manner corresponding to that in which they would be compensated on a compulsory acquisition of that land, but taking into account only the extent (if any) of such interference with such an interest as is actually caused, or likely to be caused, by the exercise of the right in question.

12

Section 22 of that Act (protection of acquiring authority’s possession where by inadvertence an estate, right or interest has not been got in) shall be so modified as to enable the acquiring authority, in circumstances corresponding to those referred to in that section, to continue entitled to exercise the right acquired, subject to compliance with that section as respects compensation.

New rights: compensation

13

The enactments in force in England and Wales with respect to compensation for the compulsory purchase of land shall apply with the necessary modifications as respects compensation in the case of a gas transporter’s compulsory acquisition of a right by the creation of a new right as they apply to compensation on the compulsory purchase of land and interests in land.

Part III — Procedure, Compensation Etc. (Scotland)

Application of Acquisition of Land (Authorisation Procedure) (Scotland) Act 1947 generally

14

The Acquisition of Land (Authorisation Procedure) (Scotland) Act 1947 shall apply to the compulsory purchase by a public gas transporter of land or rights in Scotland as if the transporter were a local authority within the meaning of that Act, and as if this Act had been in force immediately before the commencement of that Act.

New rights: general application of Act of 1947 and incorporated enactments

15

The enactments incorporated with this Act by virtue of Part I of Schedule 2 to the said Act of 1947 and that Act shall have effect with the modifications necessary to make them apply to a public gas transporter’s compulsory acquisition of a right in Scotland by the creation of a new right as they apply to the compulsory acquisition of land, so that, in appropriate contexts, references in those enactments and that Act to land are to be read as referring, or as including references, to the right acquired or to be acquired, or to land over which the right is or is to be exercisable, according to the requirements of the particular context.

New rights: specific adaptations of Act of 1947

16

Without prejudice to the generality of paragraph 15 above, Part III of Schedule 1 to the said Act of 1947 (requirement of special parliamentary procedure, and other special provisions, in the case of acquisition of certain descriptions of land) shall apply in relation to a public gas transporter’s compulsory acquisition of a right in Scotland by the creation of a new right with the modifications specified in paragraphs 17 to 20 below.

17

In paragraph 9 of that Schedule (compulsory purchase affecting land of the National Trust for Scotland) for references to the compulsory purchase of land there shall be substituted references to the compulsory acquisition of rights over land.

18

In paragraph 10 of that Schedule (land of statutory undertakers)—

• (a) for the words “land comprised in the order” there shall be substituted the words “land over which a right is to be acquired by virtue of the order”;

• (b) for the words “purchase of” there shall be substituted the words “acquisition of a right over”;

• (c) for the words “it can be purchased and not replaced” there shall be substituted the words “the right can be acquired”; and

• (d) for sub-paragraph (ii) there shall be substituted the following sub-paragraph—

(ii) that any detriment to the carrying on of the undertaking, in consequence of the acquisition of the right, can be made good by the undertakers by the use of other land belonging to, or available for acquisition by, them

.

19

In paragraph 11 of that Schedule (common or open space), for sub-paragraph (1) there shall be substituted the following sub-paragraph—

(1) In so far as a compulsory purchase order authorises the acquisition of a right over land forming part of a common or open space, it shall be subject to special parliamentary procedure unless the Secretary of State is satisfied— (a) that the land, when burdened with that right, will be no less advantageous to those persons in whom it is vested and other persons, if any, entitled to rights of common or other rights, and to the public, than it was before; or (b) that there has been or will be given in exchange for the right additional land which will as respects the persons in whom there is vested the land over which the right is to be acquired, the persons, if any, entitled to rights of common or other rights over that land, and the public, be adequate to compensate them for the disadvantages which result from the acquisition of the right, and that the additional land has been or will be vested in the persons in whom there is vested the land over which the right is to be acquired, and subject to the like rights, trusts and incidents as attach to that land apart from the compulsory purchase order; or (c) that the land affected by the right to be acquired does not exceed 250 square yards in extent, and that the giving of other land in exchange for the right is unnecessary, whether in the interests of the persons, if any, entitled to rights of common or other rights or in the interests of the public, and certifies accordingly.

20

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

21

Paragraph 10 above shall have effect in relation to the said Act of 1947 with the substitution of a reference to paragraph 3(1) of the Second Schedule to that Act for the reference to section 11 of the Compulsory Purchase Act 1965, and with the omission of the words from “and sections” to the end of the paragraph.

22

For paragraph 4 of the Second Schedule to the said Act of 1947 (protection for owner against severance of property) there shall be substituted the provisions substituted by paragraph 8 of this Schedule for section 8(1) of the said Act of 1965, and any reference in those provisions to the Upper Tribunal shall be construed as a reference to the Lands Tribunal for Scotland.

Restrictions on application of paragraphs 15 to 20 above

23

So much of paragraph 15 above as relates to the said Act of 1947, and paragraphs 16 to 20 above, shall not apply to any compulsory purchase to which, by virtue of section 12 or 13 of the Gas Act 1965, Part I of Schedule 4 to that Act applies.

New Rights: specific adaptions of Lands Clauses Consolidation (Scotland) Act 1845

24

For section 61 of the Lands Clauses Consolidation (Scotland) Act 1845 (estimation of compensation) there shall be substituted the following section—

(61) In estimating the purchase money or compensation to be paid by the promoters of the undertaking in the Special Act, in any of the cases aforesaid, regard shall be had not only to the extent (if any) to which the value of the land over which the right is to be acquired is depreciated by the acquisition of the right, but also to the damage (if any) to be sustained by the owner of the land by reason of its severance from other land of his, or injuriously affecting that other land by the exercise of the powers conferred by this or the Special Act.

25

The following provisions of that Act (being provisions stating the effect of a notarial instrument or of a disposition executed in various circumstances where there is no conveyance by persons with interests in the land)—

• section 74 (failure by owner to convey);

• section 76 (refusal to convey or show title or owner cannot be found);

• section 98 (vesting of common land),

shall be so modified as to secure that, as against persons with interests in the land over which the right is to be compulsorily acquired such right is vested absolutely in the promoters of the undertaking.

26

Paragraph 11 above shall have effect in relation to that Act with the substitution of a reference to sections 114 and 115 thereof for the reference to section 20 of the Compulsory Purchase Act 1965.

27

Paragraph 12 above shall have effect in relation to that Act with the substitution of a reference to sections 117 and 118 thereof for any reference to section 22 of the said Act of 1965.

New rights: compensation

28

Paragraph 13 above shall have effect in relation to Scotland with the substitution of. “ Scotland ” for “England and Wales”.

29

This Part of this Schedule shall extend to Scotland only.

SCHEDULE 4

1

• (1) Subject to the following provisions of this Schedule, a gas transporter may execute the following kinds of works, that is to say—

• (a) placing pipes, conduits, service pipes, cables, sewers and other works, and pressure governors, ventilators and other apparatus, in or under any street; and

• (b) from time to time repairing, altering or removing any such works or apparatus placed in or under any street (whether by him or by any other person).

• (2) Subject as aforesaid, a gas transporter may execute any works requisite for or incidental to the purposes of any works falling within sub-paragraph (1) above, including for those purposes—

• (a) opening or breaking up any street or any sewers, drains or tunnels within or underany street; and

• (b) removing or using all earth and materials in or under any street.

• (3) A gas transporter shall do as little damage as possible in the exercise of the powers conferred by this paragraph and shall make compensation for any damage done in the exercise of those powers.

• (4) The Secretary of State shall by regulations provide that, in such cases and to such extent as may be provided by the regulations, a public gas transporter shall pay, by way of compensation for any loss sustained by any person in consequence of the exercise of those powers, such sum as may be determined in accordance with the regulations.

• (5) No regulations may be made under sub-paragraph (4) above which amend, or re-enact with modifications, regulations previously made under that sub-paragraph.

2

• (1) The powers of a gas transporter under paragraph 1 above shall include power to erect in any street one or more structures for housing any apparatus, but only with the consent, which shall not be unreasonably withheld, of the street authority.

• (2) Any question whether or not consent to the erection of such a structure is unreasonably withheld shall be determined by a single arbitrator to be appointed by the parties or, in default of agreement, appointed by the Director.

• (3) For the purposes of this paragraph the withholding of consent shall, to the extent that it is based on the ground that the structure ought to be erected elsewhere than in a street, be treated as unreasonable if the transporter either that there is no reasonably practicable alternative to erecting it in a street, or that all such alternatives would, on the balance of probabilities, involve greater danger to life or property.

3

• (1) Subject to sub-paragraph (2) below, nothing in paragraph 1 above shall empower a gas transporter to lay down or place any pipe or other works into, through or against any building, or in any land not dedicated to the public use.

• (2) A gas transporter may exercise the powers conferred by paragraph 1 above in relation to any street which has been laid out but not dedicated to the public use only for the purpose ofconveying gas to any premises which abut on the street.

4

• (1) Except in cases of emergency arising from defects in any pipes or other works, a street which—

• (a) does not constitute for the purposes of the Highways Act 1980 a highway or part of a highway maintainable at the public expense; and

• (b) is under the control or management of, or maintainable by, any railway authority or navigation authority,

shall not be opened or broken up under paragraph 1 above except with the consent, which shall not be unreasonably withheld, of that authority.

• (2) Any question whether or not consent to the opening or breaking up of such a street is unreasonably withheld shall be determined by a single arbitrator to be appointed by the parties or, in default of agreement, appointed by the Director.

5

• (1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• (2) Nothing in paragraph 1 above shall effect the application to any operation of sections 34 to 36 of the Coast Protection Act 1949.

6

In this Schedule—

• . . .

• “navigation authority” means any person or body of persons, whether incorporated or not, authorised by or under any enactment to work, maintain, conserve, improve or control any canal or other inland navigation, navigable river, estuary, harbour or dock;

• “railway authority” means any person or body of persons, whether incorporated or not, authorised by any enactment to construct, work or carry on a railway; and

• “

• “street” and “street authority” have the same meaning as in Part III of the New Roads and Street Works Act 1991.

7

In its application to Scotland this Schedule shall have effect with the following modifications—

• (a) in paragraphs 1 to 4, for the word “street”, wherever it occurs, there shall be substituted the word “road”;

• (b) in paragraph 2(1) for the words “street authority” there shall be substituted the words “road works authority”;

• (c) in paragraphs 2(2) and 4(2), for the word “arbitrator” there shall be substituted the words “arbiter”;

• (e) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• (f) in paragraph 6, for “street” and “street authority” substitute “road” and “road works authority” and for “Part III” substitute “Part IV”.

SCHEDULE 5

Part I — Supply of Gas to Tariff Customers

Maintenance etc. of service pipes

1

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Alterations etc. of burners on change of calorific value

2

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Consumption of gas to be ascertained by meter

3

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Meters to be kept in proper order

4

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Meter as evidence of quantity of gas supplied

5

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Installation of meters in new premises

6

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Recovery of gas charges etc.

7

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Part II — Supply of Gas to Tariff Customers and Others

Use of antiflucuators and valves

8

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Improper use of gas

9

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Injury to gas fittings and interference with meters

10

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Restoration of supply without consent

11

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Failure to notify connection or disconnection of service pipe

12

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Prevention of escapes of gas

13

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Information as to escapes of gas

14

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Entry during continuance of supply

15

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Entry on discontinuance of supply

16

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Entry for replacing, repairing or altering pipes

17

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Provisions as to powers of entry

18

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Gas fittings not to be subject to distress

19

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

SCHEDULE 6

1

• (1) In subsection (1) of section 1 of the Gas Levy Act 1981—

• (a) for the words “their revenues by the British Gas Corporation (in this Act referred to as ” the Corporation ’)” there shall be substituted the words “his revenues by any person”; and

• (b) for the words “the Corporation”, in the second place where they occur, there shall be substituted the words “that person”.

• (2) In subsection (2) of that section—

• (a) for the words “the Corporation”, in the first two places where they occur, there shall be substituted the words “any person”;

• (b) for the words “has agreed” there shall be substituted the words “had agreed”; and

• (c) for the words “the Corporation”, in the third place where they occur, there shall be substituted the words “the British Gas Corporation (in this section referred to as ” the Corporation ’)”.

2

No order shall be made under section 2(3) of that Act specifying for the year 1991-92 or an earlier year a rate of levy higher than the rate for the preceding year.

3

For section 3 of that Act there shall be substituted the following section—

(3) (1) Gas Levy shall be paid to the Secretary of State in respect of each period of three months ending on 30th June, 30th September, 31st December or 31st March in any year (in this section referred to as a “chargeable period”). (2) It shall be the duty of any person liable to pay gas levy to deliver to the Secretary of State— (a) within four weeks after the end of each chargeable period, a return for that period which complies with subsection (3) below; and (b) within three months after the end of each year, a return for that year which so complies. (3) A return under subsection (2) above for any chargeable period or any year shall show the quantity, expressed both by volume and as a number of therms, of gas to which section 1 above applies which was supplied to or won by the person concerned in that period or that year. (4) Not later than six weeks after the end of any chargeable period a person who is liable to pay gas levy in respect of that period shall pay to the Secretary of State an amount equal to the amount of gas levy which would be due from him for that period if the amount due were calculated exclusively by reference to the return for that period. (5) If the amount which, otherwise than by way of interest, falls to be paid by any person under subsection (4) above in respect of the chargeable periods in any year differs from the actual amount of gas levy due from that person in respect of those periods, then not later than four months after the end of that year the amount of the difference shall— (a) where the former amount is greater, be repaid by the Secretary of State to that person; and (b) where the latter amount is greater, be paid by that person to the Secretary of State. (6) Where any amount falling to be paid under subsection (4) or (5) above is not paid within the period for payment specified in that subsection, that amount shall carry interest at the prescribed rate from the end of that period until payment; and in this subsection “paid” and “payment” include repaid and repayment, respectively. (7) In this section “the prescribed rate” means the rate prescribed for the purposes of section 86 of the Taxes Management Act 1970.

4

• (1) In subsection (1) of section 4 of that Act—

• (a) for the words “the Corporation”, in the first place where they occur, there shall be substituted the words “any person”;

• (b) for the words “for any year shall only be payable” there shall be substituted the words “shall be payable by that person for any year only”; and

• (c) for the words “the Corporation”, in the second place where they occur, they shall be substituted the words “that person”.

• (2) In subsection (2) of that section—

• (a) for the words “the Corporation”, in the first place where they occur, there shall be substituted the words “the person concerned”; and

• (b) for the words “the Corporation”, in the second place where they occur, there shall be substituted the words “that person”.

5

• (1) In subsection (1) of section 5 of that Act—

• (a) for the words “the Corporation”, in the first place where they occur, there shall be substituted the words “any person liable to pay gas levy”;

• (b) for the word “them” there shall be substituted the word “him”;

• (c) for the words “the Corporation are using or propose” there shall be substituted the words “that person is using or proposes”; and

• (d) for the words “the Corporation”, in the third place where they occur, there shall be substituted the words “that person”.

• (2) For subsection (2) of that section there shall be substituted the following subsections—

(2) The Secretary of State may, after consultation with any person liable to pay gas levy, give to that person directions specifying descriptions of measuring and testing equipment which he is to install, maintain and use for the purposes of this Act. (3) It shall also be the duty of any person liable to pay gas levy to furnish the Secretary of State with such returns, accounts and other information as he from time to time requires for the purpose of verifying returns delivered to him under section 3(2) above, and to afford to the Secretary of State facilities for the verification of information so furnished.

6

After section 5 of that Act there shall be inserted the following section—

(5A) (1) If any person without reasonable excuse— (a) fails to deliver a return under section 3(2) above within the time allowed for doing so; or (b) fails to comply with a requirement imposed by or under section 5 above, that person shall be liable on summary conviction to a fine not exceeding level 5 on the standard scale. (2) If any person, in making any return under section 3(2) above or in giving any information required under section 5(3) above, makes any statement which he knows to be false in a material particular, or recklessly makes any statement which is false in a material particular, that person shall be liable— (a) on summary conviction, to a fine not exceeding the statutory maximum; (b) on conviction on indictment, to a fine. (3) Where a body corporate is guilty of an offence under this section and that offence is proved to have been committed with the consent or connivance of, or to be attributable to any neglect on the part of, any director, manager, secretary or other similar officer of the body corporate or any person who was purporting to act in any such capacity he, as well as the body corporate, shall be guilty of that offence, and shall be liable to be proceeded against and punished accordingly.

7

• (1) In subsection (2) of section 6 of that Act for the words “the Corporation by virtue of section 3(4)” there shall be substituted the words “any person by virtue of section 3(5)(a)”.

• (2) In subsection (3) of that section for the words “section 3(4)” there shall be substituted the words “section 3(5)(a)”.

8

In section 7(2) of that Act for the definition of “year” there shall be substituted the following definition—

“year” means a period of twelve months ending with a 31st March.

SCHEDULE 7

Interpretation

1

In this Schedule “public gas supplier” has the same meaning as in Part I of this Act.

Enactments relating to statutory undertakers etc.

2

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

The Water Act 1945

3

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

The Rights of Entry (Gas and Electricity Boards) Act 1954

4

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

The Pipe-lines Act 1962

5

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

The Gas Act 1965

6

• (1) The Gas Act 1965—

• (a) shall have effect without the amendments made by paragraph 14 of Schedule 6 to the 1972 Act and the associated repeals made by Schedule 8 to that Act; and

• (b) as so having effect, shall be amended as follows.